Mexico - Small-scale Agricultural Infrastructure Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE COFP Y Report No. 2180-ME STAFF APPRAISAL REPORT SMALL-SCALE AGRICULTURAL INFRASTRUCTURE PROJECT MEXICO December 1, 1978 Regional Projects Department Latin America and the Caribbean Regional Office This document has a restrieted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be diselosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1 = Mex$23 Mex$1 = US$0.0435 Mex$1 million = US$43,500 WEIGHTS AND MEASURES Metrie System British/US System 1 millimeter (mm). 0.04 inches 1 meter (m) 3.28 feet 1 kilometer (km) 0.62 miles 1 hectare (ha) 2.47 acres 1 m ton 0.98 long ton 1 cubic meter per second (m 3/s) 35.35 cubic feet per second 1 liter per second (l/s) 15.84 gallons per minute 1 liter per second per hectare (l/s/ha) 6.41 gallons per minute per acre ABBREVIATIONS CONASUPO - National Marketing Corporation IDB - Inter-American Development Bank OHDR - General Directorate Hydraulic Works and Agricultural Engineering for Rural Development PIDER - Investment Program for Rural Development PLAMEPA - Plan for Improving On-farm Irrigation Practices PNDR - National Plan for Small-Scale Agricultural Infrastructure Development SAO - Undersecretariat of Agriculture and Operation SARH - Secretariat of Agriculture and Hydraulic Resources SIH - Undersecretariat of Hydraulic Infrastructure SPP - Secretariat of Programming and Budgeting SUDR - General Subdirectorate for Supervision of Rural Development Units GOVERNMENT OF MEXICO FISCAL YEAR January 1 - December 31  MEXICO FOR OFFICIAL USE ONILY SMALL-SCALE AGRICULTURAL INFRASTRUCTURE PROJECT Table of Contents Page No. I. BACKGROUND ............................... 1 A. Project Background ....... ................ .......... 1 B. The Agricultural Sector ..... ............... 1 C. Bank Participation .......................... 4 II. THE NATIONAL PLAN FOR SMALL-SCALE AGRICULTURAL INFRASTRUCTURE DEVELOPMENT . ................ .......... 5 A. Institutional Framework ........................... 5 B. Historic Development and Present Situation ........ 8 C. The Future Outlook ................................ 11 III. THE PROJECT ........................................... 13 A. Description ................. ....................... 13 B. Organization and Management ..... .................. 15 C. Status of Project Preparation ................... .. 15 D. Design Standards ..................... ................ 17 E. Sub-project Appraisal ...... ....................... 18 F. Project Implementation ..... ....................... 19 G. Cost Estimates ....... ............................. 19 H. Financing ......................................... 21 1. Procurement ..................... .22 J. Disbursements .......... ............... ............ 23 K. Monitoring and Evaluation ..... .................... 23 L. Accounts and Auditing ...... ....................... 24 IV. AGRICULTURAL DEVELOPMENT .............................. 24 A. Irrigation Sub-projects ..... ...................... 24 B. Drainage Sub-projects ..... ........................ 25 C. Livestock Sub-projects ............................ 26 V. BENEFITS AND JUSTIFICATION ..... ....................... 27 A. Project Production, Demand and Marketing .......... 27 B. Beneficiaries ....... .............................. 28 C. Project Charges . . ............ 29 D. Economic Rate of Return and Sensitivity Analysis .. 31 E. Project Risk ...................................... 32 F. Environmental Impact ...... ........................ 32 VI. ASSURANCES OBTAINED DURING NEGOTIATIONS AND RECOMMENDATION 33 This report is based on the findings of an appraisal mission that visited Mexico in April 1978. The mission comprised Mr. Carlos G. Moret and Ms. Althea L. Duersten (IBRD) and Messrs. Enrique Franco and Patrick A. Domenico (Consultants). This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (cont'd) ANNEXES 1. Supporting Tables and Charts Tables 1. General Directorate of Hydraulic Works and Agriculture Engineering for Rural Development. Staff 2. Table of Contents of a Project Report 3. General Subdirectorate for Supervision of Rural Development Units. Staff 4. Selected Indicators of the Third Stage of National Plan for Small Scale Agricultural Infrastructure Development 5. Key Technical Data of Selected Irrigation Sub-projects 6. Summary Sheet for irrigation and/or drainage sub-projects 7. Tubewells Development. Execution Cost Estimates 8. Pumping Plants Development. Execution Cost Estimates 9. Storage Dams Development. Execution Cost Estimates 10. Drainage Development. Execution Cost Estimates 11. Project Cost Estimates 12. Estimated Schedule of Expenditures 13. Equipment for Studies 14. Equipment for Construction 15. Schedule of Disbursements 16-19. Sub-project: Valle de Canindo (Tubewell Development) Investment Costs; Development Period; Projected Land Use, Production and Income; Farm Budget 20-23. Sub-project: Los Laguneros (Tubewell Development) Investment Costs; Development Period; Project Land Use, Production and Income; Farm Budget 24-27. Sub-project: Dos Rayas (Pumping Plant Development) Investment Costs; Development Period; Projected Land Use, Production and Income; Farm Budget 28-31. Sub-project: Santa Teresa (Storage Dam Development) Investment Costs; Development Period; Projected Land Use, Production and Income; Farm Budget 32-35. Sub-project: Nacajuca (Drainage Development) Investment Costs; Development Period; Projected Land Use, Production and Income; Farm Budget 36-39. Sub-project: Miguel Hidalgo (Livestock Infrastructure: Dual Purpose Development) Investment Costs; Herd Projection; Projected Production and Income; Farm Budget 40. Rent and Cost Recovery Indices 41. Prices Used in Economic and Financial Analysis 42. Economic Rates of Return and Sensitivity Analysis  Table of Contents (cont'd) Charts 1. Organization of the General Directorate of Hydraulic Works and Agricultural Engineering for Rural Development 2. Organization of the General Subdirectorate for Supervision of Rural Development Units 2. Documents Ava