Dominican Republic - Nizao Irrigation Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2397-DO REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE DOMINICAN REPUBLIC FOR THE NIZAO IRRIGATION PROJECT January 11,1979 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.  CURRENCY EQUIVALENTS US$1.00 = RD$ 1.00 US$1 Million = RD$ I Million RD$ 1 Million - US$1 Million WEIGHTS AND MEASURES: Metric System 1 meter (m) - 3.28 feet (ft 1 kilometer (km) = 0.62 miles 1 hectare (ha) 2= 2.47 acres 1 million cubic meters (m= 810 ACTi-feet i cubic meter per second (mi /S) - 35.3 ft per S (cusec) 1 ton = 1,000 kilogrms (kg) 2,205 pounds i kilogram = 2.2 pounds ABBREVIATIONS BA Agricultural Bank CDE Dominican Electric Corporation CEA State Sugar Council CEDOPEX Dominican Center for Promotion of Exports FDD Dominican Development Foundation FEDA Special Fund for Agricultural Development FIDE Central Bank's Economic Development Investment Fund IAD Dominican Agrarian Institute IDB Inter-American Development Bank INDRHI National Water Resources Institute INESPRE Dominican Price Stabilization Institute SEA Secretariat of State for Agriculture USAID United States Agency for International Development GOVERNMENT OF DOMINICAN REPUBLIC FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY DOMINICAN REPUBLIC Loan and Project Summary Borrower: Dominican Republic Beneficiary: National Water Resources Institute (INDRHI) Amount: US$27 million equivalent Terms: Repayable in 17 years, including 4-years of grace, with interest at 7 percent per annum. Relending Terms: The proceeds of the loan would be made available by the Government to INDRHI by way of a grant. Project Description: The project supports the Government objectives of increasing agricultural productivity and exports, and improving the living conditions of the rural poor. The project consists of: (a) civil works to rehabilitate and expand the irrigation system under the command of the Marcos A. Cabral and Nizao-Najayo canals, to serve 13,700 ha; water level control and measurement structures, for proper operation and maintenance of the system; (b) on-farm development works on 2,330 ha of new land; (c) 24.5 km of gravel surfaced secondary roads and 146.6 Km of gravel surfaced road along the main canals to facilitate operation and maintenance; (d) project unit headquarters for supervision, administration and execution of civil works; operation and maintenance; and extension and agrarian reform services; (e) equipment for force account construc- tion of secondary and tertiary canals; operation and maintenance and agrarian reform and agricul- tural development programs; (f) operational expenses and remmuneration of local project staff, and (g) up to 250 man-months of local and expatriate consulting services. The project would benefit about 3,200 farm families. The target group in the project area would be those with holdings of 3.0 ha or less, including the beneficiaries of the agrarian reform program. This group represents about 70 percent of direct project beneficiaries and 35 percent of the project farm lands. The principal risk confronting the project would be associated with the completion of rehabilitation works of the main canals without major interruption of existing irrigation services. 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.  - ii - Estimated Costs; Item ------- US$ thousand - Local Foreign Total Rehabilitation of the Irrigation System 12,530 13,410 25,940 Operation and Maintenance 100 890 990 Feeder Roads 110 140 250 Agricultural Development 1,730 1,840 3,570 Agrarian Reform 270 250 520 On-farm Development 990 790 1,780 Extension and Training 470 800 1,270 Technical Services 600 1,100 1,700 Project Administration 130 - 130 Total Base Cost 15,200 17,400 32,600 Physical Contingencies 2,500 3,000 5,500 Price Contingencies 5,900 6,600 12,500 Total 23,600 27,000 50,600 Financing Plan: US$ million Percentage Bank Loan 27.0 53% Government 23.6 47% Total $50.6 100% Estimated Disbursements; IBRD/FY --