Third Irrigation Project Mexico

RETURN TO REPOR TbI RESTRICTED REPORTS Ui~t-I ILkL %ur I Report No. TO-520c: W,i I MIU I V V 1.I W F F KII This report was prepared for use within the Bank and its affiliated organizatiohs. They do not accept. responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION REHABILITATION AND EXPANSION OF TIrHE V T*f." 7 T A 9 VT f T1 A A r t 1 C" Aar T TTA ar V" T T ?r I1 A T V% f* AAr79 la v - *A r ** 1A.LLr.LLJIM L LU1NLJXM JMI1LJ MJIAN J UAN JaJl 1 IL 1nAULJt1iUJ 1N 1.JE1 1AIL,0 MEXICO April 20, 1966 Projects Department CURRENCY EQUIVALENTS US $1.O0 = 12,.5 pesos 1 peso = 0. 08 US cents 1 million pesos = US $80, 000 AR EA EITTIA LENT 1 hectare = 2. 47 acres hiTURN7 T REPORTS DESK ROOM A-124 BY:i MEXICO REHABILITATION AND EXPANSION OF THE R.r.TnTj T.IThTPP AH R.4 .TTNL .T;TT. PTO TPPTR.ATTTCH DTRPTT.tq TABLE OF CONTENTS Page No. SUMMARY T. TNTRODUCTION 1 1TT RACKROUND 1 TTT- TH. PRLTEfT ARPAS 2 A. Geerl 2 B. Climate, Topography and Soil 3 Water Supplies 4 Land1 TenU:re Technical Services 5 £ C.LML 1 I e'.LL I - Present Production and Values 6 7 -r m r'bln-r.B 1r'm CLM 1 1-3 I V .fI± riz TW.ML11u Ueneral Project Works 3 Water Requirements and Supply Pump Irrigation 10 Status of Engineering II Construction Cost Estimates 11 Construction bchedule 12 Operation and Maintenace Cost Estimates 13 FLancing 13 V. ORGANILZATIONr AND 1MAGEUvNT~W -L4 General 14 Regional Development Commissions 14 Basin Planning Commissions 5 Irrigation Districts 15 Construction 16 Technical Services 17 Requirements for Farm Credit 18 Additional Soils Studies 18 Water Charges 19 Future Land Use 20 Benefits and Justification 20 Conclusions and Recommendations 22 -2- ANIEXES 1. The Ejido System 2. Farm Credit 3. Region Lagunera Irrigation District - Estimated increase in net value of annual production following rehabilitation 4. San Juan Irrigation District - Estimated increase in net value of annual production following rehabilitation 5. Region Lagunera District - The existing system and proposed new works 6. San Juan District - The existing system and proposed new works 7. Region Lagunera District - Maintenance equipment 8. San Juan District - Maintenance equipment 9. Region Lagunera District - Water supply and demand 10. San Juan District - Water supply and demand 11. Region Lagunera Project - Estimate of costs 12. San Juan del Rio Project - Estimate of costs 13. Region Lagunera Project - Cost of rehabilitation works undertaken 1962-3 1. Reaion Laounera Project - Constructicn schedule 15. San Juan del Rio - Construction schedule 16. Region Lamnera Proiect - Oneration and maintenance after rehabilitation 17. San Juan Proiet - Oneration and naintena-nce after rehabilitation 18. RegLon Lagunera Project - Annual expenditure 19,. Snn Juan Prolect - Annual exnnditure MAPS (3) REHABILITATIUN AIZ EXPANblUN UF IHE REGI6N LAGUNERA AND SAN JUAN DEL IO IRRuATIUN ri!STRCTS SUMMARY i. The Mexican Government has applied to the Bank for a loan of US$19 million equivalent to help finance the rehabilitation and expansion of the Regi6n Lagunera and San Juan del Rio Irrigation Districts. The cost of the work in the Regi6n Lagunera District has been estimated at Ps 720 million (US$57.6 million) and in the San Juan del Rio District at Ps 98 million (US$7.8 million). ii. The project would increase the quantity of water for irrigation in both irrigation districts through the construction of additional dams and reconstruction of the canal systems. It would also include land leveling of the entire irrigated area and provide for the improvement of agricultural services. iii. The project would permit an expansion of the irrigated area from 52,600 ha. to approximately 85,000 ha. in the Region Lagunera District and from 5,400 ha. to aporoxinately 10,000 ha. in the San Juan del Rio District. It would also regulate the water supply and prevent damages from floods. iv, The Secretaria de Recursos Hidraulicos (SRH) would be responsible for the execution of the project. SRH has a competent staff and an efficient organization for carrying out the project and similar Bank financed projects executed under its direction are making satisfactory progress. V. Water users would make payments to the Government over a period of 25 years after the construction has been completed to assist in defraving the investment cost of the project. The water users would also pay a water charge to cover the entire cost of operation and maintenance. vi. Annual economic benefits as a result of increased net value of apricnitural nrrvintinn arp Pstimptd at Ps 120 million (U1S[30 A million) for the Regi6n Lagunera District and Ps 19 million (US$1.5 million) for the Snr Juvin diml Rio Dist+.rict.- Thep rePective-%r rates of inte-rnal retulrn would be about 11 per cent and 16 per cent. The project would also inrrpqq employment pnnortunitism for the rural nonulation npnialv in the Region Lagunera District. The unemployment problem has become acute Since the nor+tnity +n Tork n migran+ I_ne in +ha, Tn-+od *+t+> no longer exists. The Mexican Government assigns a high priority to the erot in order incldiate tae procidA pofnn6eas.The bwri unomloment. -11The,prject. is suiable fo a Bank, loan of U-515O million forx term of 20 years including a grace period of 6 years. The borrower would be the Nac:onal Fi.nanciera (Z A a-n ge,,cy ofteGvrmn fMxc. REGlUN LACUNERA AND 6AN JUAul DhiL iU iIKAi1UNTli 1. INTRODUCTION 1. The Mexican Government has requested a Bank Loan to help finance the rehabilitation and expansion of the Region Lagunera and San Juan del Rio Irrigation Districts. Two previous loans have been made by the Bank for the rehabilitation of irrigation projects, Loan 275-ME in January 1961 for US$15 million, and Loan 336-ME in April 1963 for US$12.5 million. Construction work under both of these loans is progressing satisfactorily. 2. This report contains an appraisal of the project based on reports and information supplied by the Mexican Government and on the findings, field studies, and discussions by a Bank Mission composed of Messrs. Bartsch, Platenius, Rinnan, Snelson (FAQ), and Van't Leven (FAO), which visited the irrigated areas during August 1965. II. BACKGROUND 3. Roughly one-half of the population of Mexico derives its livelihood from cultivating the land which makes agriculture the principal occupation. However, since per capita productivity in agriculture is generally lower than in most other activities, it contributed only 16 per cent to the GDP in 1964. During the last decade the average growth rate of crop production has been 5.2 per cent per year, reaching a record rate of 8 per cent in 1964. 4. As a result of careful planning Mexico has reached the stage where the country is virtually self-sufficient in food supplies, in spite of an annual population growth of 3.6 per cent and an increase in per capita food consumption. Exports of products of agriculture, livestock raising, and fisheries represented 48 per cent of the value of total exports in 1964. 5. Lack of sufficient land to keep the rural population fully occunied is Mexico's nrincinal agrarian oroblem. Many of the holdin2s are uneconomic in size and the pressure on the land is increasing. 6. Arid and semi-arid climatic conditions prevailing in many reginms t of Meic tother with t aot nrn3nrtion mncntainus terrain limit the area of cultivable land to about 30 million hectares of 16 per cent of tfll total~ T.inri qrz TH)Prin nr fpiz iintipuinnnin q-Pqq Ti. - 2 - suitable climate and topography which could be opened up for settlement., Under the circumstances, a continued increase in production can be attained only by using the available land more intensively and this means, in most instances, putting more land under irrigation. In fact, new irriga- tion works have largely been responsible for the sustained increase in agricultural production during the last decade. Whereas in 1950 about 10 per cent of the crop was irrigated, it had increased to 20 per cent or 4 million hectares by 1962. 7. The endeavour to increase the area under irrigation as rapidly as possible led to the construction of some irriaation systems which do not make full use of the potential water resources. Excessive loss of water in unlined canals and insufficient storage capacity of the reservoirs have been common defects. SRH has now come to the conclusion that the rehabilitation of some of the existing irrigation districts will yield a more rapid and higher economic return than the construction of newj ones. This nolinv riop not nrnnclude however, the nnstrinAtion of new works, where special circumstances make them clearly desirable. Tn mnqf. in!::f.nnetq - rehhiitionr workl wouldi inclld theicontuto of additional reservoirs, redesigning the canal system, and lining canals under consideration these measures would nearly double the areas which could be supplied wit'n. an- adqut e0ul,t-ity o~f'w iriaio Tw-t- III. THE PROJECT AREAS A. General 8. The project would cover two Irrigation Districts, the Region Lagunera in wien 52,600 hectares are presently irrigated and the can Juan del Rio in which 5,400 hectares are presently irrigated. 9. The Regi6n Lagunera District is located near the city of Torreon in n0urth ventral 11UeQic anlu lune 0an duan ael rL.o uVribeiL1s U5 localeu apprxl- mately 100 miles north of Mexico City (See Map No. 1). Irrigation has been practised in both of these areas for many years and within the past 20 years the Mexican Government has improved the facilities for irriga- tion principally through the construction of dams to provide better regulation of the water supplies. Though reasonably well constructed, some features of the irrigation works are below optimum standards for good operation. In addition, maintenance has been inadequate because of a shortage of funds and failure to collect adequate water charges to cover such costs from the irrigators. As a result some of the irrigation facilities have deteriorated. 10. This adverse condition is recognized by the authorities and the farmers, and there appears to be general agreement that remedial action must be taken by the Mexican Government. With regard to other Mexican irrigation projects where rehabilitation is under way, particularly those financed by previous Bank loans, provision has been made to collect the water charges and other funds needed to operate and to maintain the Districts in good condition. 11. Basically, each of the Districts is well suited to irrigation farming. In both Districts much water is being lost by the lack of adequate storage facilities and through seepage in the unlined canal systems. If the works are supplemented by providing additional storage facilities and modern canal systems, both of the Districts should attain high levels of agricultural production. B. Climate, Topography and Soil 12. In the Region Lagunera District the climate is arid with an average rainfall of 240 mm which occurs principally in the period from June to October. In a total of 33 years of record the annual rainfall varied from hOO mm (16 inches) to less than 200 mm (8 inches). Tempera- tures during the summer average about 260c (790F) and in the coldest months of December and January the monthly averages are slightly above 130C (550F).. Night frosts occur frequently in the winter period and this limits the scope of winter cropping. Hailstorms appear occasionally but affect small areas. 13. In the San Juan del Rio District the climate is semi-arid with average rainfall varying from approximately 410 mm (16 inches) to 500 mm (20 inches) depending on location in the District. The highest concentration of rainfall occurs during the months of June to October. Maximum temperatures of about 35oC (95 F) occur in May. In winter the temperature may drop to OOC (320F) in the early morning. The lowest temperature recorded was -6.50C (200F) in January. 1. The tooogaphy is generally favorable for irrigation in both areas. In the Regi5n Lagunera District the lands are approximately 1,100 meters (3,600 feet) above sea level with slopes of generally less than 1 meter per kilometer. In the San Juan del Rio District the lands are approximately 1.900 meters (6,200 feet) above sea level with gentle slopes from the surrounding hills to the rivers averaging 1 meter or sliahtly more Der kilometer. 1. In the Reii6n Lauunera District the soils are of alluvial origin and generally heterogeneous in nature. The irrigable area is part of an old mountain lake without external drainage which over many years has been filled with silt and coarse outwash materials by the tributary rivprs- The District does not have any drainaee nroblems inasmuch as privately owned irrigation wells are extracting the ground water at a rntp grptpr tbnn the recharg and rptilrry.nan iatr lovels are receding rapidly. - 4 16. Soil surveys vere conducted in 1949 and in 1965 covering ~ ~f'. 1~LAl-.L n^ f,-r% I-t - 1vuvU ecareb. AUUUU AUv,vy hectvares in te projectv area were identified as belonging to the Coyote series which are soils of high productivity and Low salt content. Iney give a good response to combined applications of nitrogen and phosphorus. 17. The soils of the San Juan del Rio District are formed by the decomposition of volcanic ash. In the higher elevations of the District along the main canal the soils are about one half meter in depth. They become deeper at a short distance from the canal and are very deep in the lower portions of the valley. Permeability of the soils is satis- factory and no serious drainage problems exist in the District. The soils are neutral to slightly acid, low in salinity and give response to applications of nitrogen and phosphorus. The shallow soils of the upper part of the District require good irrigation management. Informa- tion about the soils of the San Juan District is based on soil surveys carried cut by SRH for the purpose of selecting the most suitable land for irrigation. Spot checks by the mission confirmed the general con- clusions reached by SRH. Water Supplies 18. In the Regi6n Lagunera District about 800 million cubic meters are now released from the Lazaro Cardenas reservoir to irrigate approxi- mately 52,600 hectares of land. In previous years and especially in 1962 severe shortages were experienced because of poor operation and utilization of the reservoir. Since 1963 SRH has been given full authority over the water releases from the reservoir and better operating practices are in effect. These take advantage of the large storage capacity of the Lazaro Cardenas reservoir to equalize the wide variations in annual runcff. 'Because the reservoir is approximately 2h0 km up- stream from the principal irrigated area, regulation of all the river flow is imoossible and contributions from the tributaries below the dam cannot always be efficiently used for irrigation. For many years prior to 1946, when the dam was comoleted. the District was onerated without any storage facilities and therefore the existing canals were designed to carrv vprv 1rop flood flow to thp lan. Water losses in the existing unlined canals are very high and contribute to the reservoir of subtnean waters which are ho-ing umped by wlls, to irrint. efficiently up to 60,000 hectares of land within and near the Irrigation S+tric.(Sp.n nrmn Lq thrigh M9) 19, In then qan Juann del Pion f ti cti- n w ater supprliesm aren no adequate to irrigate approximately .,h00 hectares of land. The San IdfPon Dam onA th-e PY-ieto W&? Tog"+ether ni~ amh ^. 0' nll reservoirs on the lesser streams regulate more than one half of the the Caracol River and the lower reaches of the San Juan River which able during the irrigation season. On the Caracol River there are floods nearly tever.-Y j-eU.-L I ihLULC -inn a LLraU± -)UV 11ZUUa1-:!, u.L Laniu, Land Tenure 20. The great majority of farmers in the two Irrigation Districts are classified as "ejidatarios", farmers who jointly hold the communal land. (See Annex 1) In the Regi6n Liguncra District they represcnt 93 per cent of the farmers and they occupy o2 per cent of the land. In the San Juan District 84 per cent of the farmers are ejidatarios and they occupy 02 per cent of the land. Tne remainder are owners of smal and medium size farms. The average size of holdings is 6.5 hectares in the San Juan del Rio District and 3.8 hectares in the Rcgi6n Laguncra District. However, the average area per farm unit serviced by gravity irrigation is only 200 and 1.3 hectares respectively. 21. The small size of individual holdings gives the ejidatario an income which is barely above the subsistence level, even though crop yields, Especially for cotton in the Rcgi6n Laguncra District, are coYaratively high. Technical. Services 22. Providing technical services to the farmers is the respons- ibility of the Secretariat of Agriculture. Recommendations for agri- cultural practices are based on the findings of the National Institute of Agricultural Investigations with headquarters in Mexico City and a branch station in Torreon which serves the Regi6n Lagunera District. This station is well organized and research is strictly oriented toward the solution of current, practical problems and results are gratifying. 23. The organization of the extension service follows the system prevailing throughout Mexico. The Secretariat of Agriculture has less than 300 extensionists in the entire country who serve primarily as specialists. Direct contact with individual farmers is maintained by a large numbr of innnertor of thp Ejidal Bank ;nd the Nationnl Agri- cultural Bank who work under the technical direction of the extension specialists and who examine proposed crooing patterns. sign loan agree- ments, provide seed, fertilizer, and insecticides in kind and supervise farminL onprations to assure that thiv are carried out according to plans previously agreed upon. The system is essentially one of super- vise Pcr1it._ While- +.hp mninr of Nimelin.qnP-t.nr.q i.- n riitp_ tho-iri professional training is not altogether satisfactory. Extension work supervisors of irrigation units, and ditch riders. Farm Credit 24. Credit to farmers in both project areas is provided mainly Bank. The former grants credit exclusively to ejidatarios; the latter commercial banks, merchants and cotton brokers. 25. The two,official banks make loans in kind and in cash. The proportion of loans given in kind include seed, 1ertilizer and insecticides; the portion given in cash is for tractor and spraying services and a small amount for hand labor. This last item is actually an advance to cover living costs since practically all the labor is carried out by the farmer and his family. The usual rate of interest is 1 per cent per month on the outstanding balance of the loan. Both official banks grant medium and long term credits sparingly, largely because recovery on these types of loans has generally been unsatisfactory. Details of the farm credit system are given in Annex 2. Present Production and Values 26. In addition to the 52,600 hectares which are irrigated by gravity in the Regin Lagunera District there is interspersed within the District, but outside the jurisdiction of SRH, a slightly larger area irrigated by pumps. 27. Climatic conditions are ideal for growing cotton which occupies 93 per cent of the planted area. Although the average yield is only 2.0 tons of seed cotton per hectare in the entire District, the average yield in one rehabilitated sector has been 3.0 tons in 1964 and on individual plots more than 4.0 tons have been obtained. Low vields on certain plots are due to salinity, poor land leveling, and insufficient quantities of fertilizer used. Fann operations are mechanized to a high degree and this is made possible by the prevailing system of collective farming. Although the land is ass-iopned to the njidatarios in individual parcels. cotton is planted by combining these parcels into blocks of 30 to 40 hp.tares thus facilitatinr nst control and the n of mechanical equipment. 28. The Ministry of Agriculture maintains an efficient pest control - --~ - -- - .-m- V - - -5 &t - --I---- - spray schedules, and distributes free of charge parasites for the control of the most injurious cotton insects Aaeslt th +.i T.ni area_i-_ is remarkably free from insects affecting cotton. 29. Diversified farming and the production of food crops is a c1haraCt-erisi of- th -an Juan- de- Rio_ A_-rigaTtion4- T4--4-4 .1 , !t4- and lentils are the principal crops. Because of the proximity to markets the daL.iy inUDUtry andJ theZ prodVuction OfC frit and vegtale is% CV.U expU&CJading rapidly. The region comprises 200,000 hectares of cultivable land, of WILL= h L U.V lecU' t c;.uE: L cULt: JUU ULJL. J1,44JJ % ,CLIJ UU. LIVJ LJ be serviced by gravity irrigation from facilities in the San Juan del Rio District. 30. The harvested area of the San Juan del Rio Irrigation District varies from year to year because of occasional flood damage or seasonal shortages of the water supply. Crop yields are low in general, but fluctuate over a wide range. Low yields, where they occur,can be attributed to an unreliable supply of water, inadequate land leveling and the fact that fertilizer is used sparingly. 31. Details of the cropping pattern for both Districts are given in Annexes 3 and 4. Marketing and Prices 32. In the Regi'n Lagunora District, aside from corn which is consumed locally, cotton is the only crop of importance. After harvest seed cotton is ginned at any one of several small local cooperative gins at a cost of Ps 200 per ton. Most of the fiber is 1 1/8 inch in length and 92 per cent is classified as middlinL. The princinal variety grown is Delta Pine which gives a yield of lint which varies from 35 to 38 per cent- All nf the rnttnn is mrkPtP hv nrivtp comnanies which sell slightly more than one-half to textile mills in the country. The remainder 331 Parm pyrces for" cotton hanveo decrlinedl sligrhtly- drhiing t.hin ln- few years. They are now quoted at Ps 5,870 per metric ton, equivalent +n 51 n + TT5R ,n ne fa 14,+ a+ n R -Sf-+^n ; irlinrl n+ PQ 9 ).r per metric ton. 34. Products of the San Juan District consist mainly of grain and distances of 160 and 50 km respectively. Alfalfa is grown by dairies which have their own proceZainIg pl.antU or milk. urig te rainy season difficulties are experienced in getting products to the main highway because some of the secondary roads within the district lack a hard surface. 35. The support program of COMASUPO, the government's agricultural price support agency, has maintained prices for grain crops and beans at fairly stable level. The support price per metric ton for wheat is Ps 9O, corn 913, and for beans 1,700. These prices are somewhat above those prevailing on the world market. Only a small portion of the products is sold to CUNASUPU, the remainder is marketed through commercial channels. Fruits and vegetables are usually purchased in the field by buyers from Mexico City who assume the cost of harvesting and packing. IV. THE PROJECT General 36. The project is the improvement of water supplies and the rehabi- ~ ~~4 .~J. .L va i6ur,*J*A.J±L .,;J.%t;L--cL1JU O.cu.I tiUali UU-L LLO F.XigeLU_LU1J Districts. The principal work involves the construction of storage dams, lining, exTension and relocatlon of canals; construcTion of water control structures; /construction of new and improvement of- existing roads; and leveling of farm land. In both Districts housing for ditch riders would be built. The construction of such works should substantially expand the area under irrigation, provide more reliable water supplies, and improve conditions for sustained irrigation farming. In addition-a program of improved operation and maintenance would be started and the necessary equipment for such work would be provided. Pro2ect Works 37. In the R c.iqmn LcunLr Diotrict the main uor'ls iould comprise the construction of Las Tortolas Dam on the Razas River to regulate torrential inflows below the existing Lazaro Cardenas Reservoir; the construction of new canals and distribution system which involves the building of 1,000 km of concrete-lined canals and 1,300 water control structures; the improvement of transport facilities by the construction or rehabili- tation of 500 km of roads; the construction of houses for ditch riders; and land leveling of up to 85,000 hectares. The canal system to be reconstructed would serve 72,000 hectares. In 1962/63 SRH has already rebuilt the system for 13,000 hectares but land leveling remains to be done on the entire area of the District. With the completion of the Project works the area irrigated by a satisfactory system of surface irrigation would be increased from 52,600 hectares to 85.000 hectares. The area serviced by gravity irrigation would consist of 2 sections: unit 1 alona the banks of the Rio Nazas between the Lazaro Cardenas Dam and the Las Tortolas Dam with 12,000 hectares and unit 2 on the main Lpeunera Plain with 73.000 bectares (Map 2). Details of the proinet are given in Annor ;. 38. In the San Juan del Rio District the principal works would be the construction of Mieal Hidqao Dam on thf Maranl Rivpr tn storp. tht flow of that river; the construction of a 15 km feeder canal which would carry infln.s of the SanJ Tunn River below +.he xi.tina Snn TiP.fonn Damn to the Miguel Hidalgo Reservoir; the remodeling of the existing distribution system throu-h the construction of 110 kmof new cainals and the recon- ditioning of 40 km of existing canals; the construction of 300 canal s-+, -u+ - +he ac-ao+t-t+lon of 16 1na P o -faa-ran+ - Aan-; nQ he improvement and construction of 120 km of roads; the construction of %A '. J. V AL 10. L L A L' j J _L V , u14 vwL 4.w 11- u - Uw-.V~ irrigable :Land. These works would make it possible to increase the petais ny crng projec a,el areL4U\J 1i1-_ULJC11'UO UU lieL % i'U [4 Jgn Details concerning thc project arc* giv--n in An 6. 39. 'The road systems proposed would supply adequate transportation facilities throughout both irrigated areas. The roads would occupy mainly the canal banks, others would lead across country; all of them would be surfaced with compacted gravel. 40. Land leveling is an integral part of both projects. It would be carried out where required over the irrigated areas totaling up to 85,000 hectares in the Regi6n Lagunera District and 10,000 hectares in San Juan del Rio District. bl. In both Districts houses for ditch-riders would be constructed and for the San Juan District 16 km of surface water drains are proposed. In neither District is subsoil drainage necessary since water tables are expected to remain low because of the pumping from privately owned wells within or adjacent to each District. In both projects the present pumping operations, which are private enterprises, would be subject to full regulation by SRH but remain independent of the project (see paras. 45 through 47). More details of the project works are given in Annexes 5 and 6. 42. Machinery and other plant for imoroved operation and maintenance would be supplied under the project. Details are given in Annexes 7 and 8. WaterRequirements and S 43. For both projects, irrigation water requirements have been calculated on the baais of an assumed cropping pattern, and adequate depths of water are allowed. Sufficient allowances for losses in the rversTC an canals hav~e been n.do. On this basis the Regi6n Laguner'a District would require 747 million cubic meters per year at the farm meters from Las Tortolas Reservoir (See Annex 9). The San Juan District it would be necessary to release 72.7 million cubic meters at the reservoirs (A.e 10fl\ 44. Sufficiency of water supply has in ahcase benaalzdb a reservoir operation study using both existing and proposed reservoirs in combinatiu. ie studies are based upon reliaule streamflow uata fur a period of 21 years, 194 through 1964, which include a critical period u low streai'ow. For the San Juan District there are no deficiencies in supply over this period and a more detailed study might demonstrate that in some years an area greater than 10,000 nectares could be irrigated. In the Regi6n Lagunera District some shortages would be experienced in two years out of 21; nowever, these shortages would be no more than 20 per cent of the long tern mean, and therefore they are not considered serious. For both projects, water supplies are adequate for requirements. 4.. Because water from tne carnal SySuem nas never been adequate to irrigate the entire cultivable area of the Regi6n Lagunera District, many wells have been installed to pump groundwater for irrigation. In the beginning the use of pumps proved to be economical because in the Lagunera area, which was formerly a lake bed, the water table was close to the surface. At one time nearly 3,000 pumps were operating. This heavy drain on the underground supply of water caused a gradual lowering of the water table and water is now found at an average depth of 60 meters below the surface. Because of the continuing lowering of the water table, water can no longer be obtained from the shallow wells and in many instances the depth to water has exceeded the economic limit for pumping. As a result, the number of wells functioning has declined to 2,150 and yet the water table continues to drop at the rate of approximately one meter per year 46. The total quantity of water pumped in 196h is estimated at about 900 million cubic meters, a quantity somewhat larger than the gravity system provides. Operating wells are scattered throughout the region, within and outside the Irrigation District. The groundwater is believed to come from three principal sources: (a) from the deep alluvial material in the stream bed of the Nazas River; (b) from the leakage of water from the unlined canals; and (c) from the "mining" of water as a result of pumping at a higher rate than the recharge. While it is impossible from the available data on groundwater conditions to determine with a high degree of accuracy the contribution of water from the three sources, it is estimated that they are of about equal magnitude, and each accounts for anrodLmately one-third of the total water extracted. h 7. It rnn therAfnrp he nqumed that in any evnnt one-third of the existing production depending on wells will eventually cease because numning tend the current recharge rnt.p The lininc of annals under the proposed project would further reduce the groundwater recharge so that up to an additi.ml ho of the wapllc -aill hiirp in hp nhnni-rnin Th, absence of adequate groundwater data makes it impracticable to determine whi rPh W01 I qai ll hP AffIP+.ed To er,11oP+. cmn)ilt-in o rnill l tkp nimbpr of years. Recently SRH has been authorized by law to regulate pumping operations andl the drilling of additional we_lS has 'been pronhhbited. T'ho possibility of integrating pump operations with the gravity system has been Consideared -T e l4 n r, n de,, r t1he cn 4- vc fvvrv..A~n -llm f E +InM T.T-1I1 system, the lack of sufficient data to determine precisely which wells S1%JtALt_L UJ, tuor. Lj JUS 'L 0 - L, V IL A5 L JOL -LOL.L Lulk.'VLA k. LAL= ."6 and the political problems associated with taking action against particular pump uperatro are resouns w iin nUve .AuQDu v 4. 4AUou -4 impracticable at this time to resolve the problem of over-pumping through the quantity of water to be pumped by each operator and expects equilibrium to be reached when in certain areas it becomes unprofitable to continue pumping because of excessive depth of the water table and when some of the wells reach their economic age limit. This appears to be a reasonable approach. To bring about an orderly solution to the subterranean water problem assurances have been obtained from the Government that through SM it will take the necessary steps to insofar as practicable bring under control the excessive pumping of irrigation water in the Lagunera basin and that basic data will continue to be collected upon which future regulation will be founded. - 11 - 8. The value of the recharge water which would no longer be avail.- able from the wells as a result of lining the canals constitutes a dis- economy, and has been taken into consideration in the economic evaluation of the project as described in paras. o9 through 91. Status of Engineering 49. Investigations, planning and designs of the project have been carried out by the Government forces under the direction of SRH. This organization has had considerable experience in the planning and design of irrigation projects and its technical staff is well qualified. It has in the past successfully constructed significantly greater projects and has currently under construction a number of projects throughout Mexico. At the Las Tortolas Dam site thorough geological investigations have been conducted both by open pits and by diamond drilling methods. These investigations disclose that the dam and reservoir will be partially located on limestone formations which contain some cavities. A Consulting Geologist employed by the Bank, has examined the site and concluded that the reservoir and dam can be made essentially water-tight: (1) with a slight realignment of the axis of the dam; (2) if the limestone abutments are treated by the construction of cut-offs, removal of talus material, the filling of caves followed by drilling and testing procedures for water tightness, and (3) if an impervious blanket in combination with a slurry trench is placed over the pervious materials in the filled river gorge and talus deposits for an appropriate distance upstream of the dam. There should be no appreciable increase in cost because of these modifications. Asurances have been obtained from the Government that the recommendations made by the Consultant.would be followed in the final design and construction of the dam. Sources of material for construction such as sand, gravel, rock and earth materials have been proved to be readily available near the construction sites. Hydrologic investigations have been adequate and spillway designs and appropriate flood and reservoir regulation studies have been completed. Canal locations have been based upon field surveys and upon topographic maps adequate for layout planning. Based upon past experience SRH is fully capable of performing the design and construction of the project. Construction Cost Estimates 50. The cost estimates for the various construction features of the project are based upon preliminary designs prepared by SRH. Quantity estimates for the dams are based upon designs which adequately take into consideration the topographical and foundation conditions at each dam site. Quantity estimates of the canal distribution system for the Regi6n Lagunera District are based upon a representative 10.000 hectare portion of the project, for which detailed designs have been prepared, and projected for the entire area. For the San Juan District quantity estimates of the canal distribution system are based upon a preliminary layout for the entire nroiect. To comoute the costs of the work. unit orices were anolied from a list which SPJ maintains for each class of work in each region of MP.Yno qn(i kp.pn.q iin~ to riatp on the hasis nf hiri nri(,Pq rp.(-Pivpd nn .12 - currcut contracts. To the total estimated cost of the project have been added adequate provisions for contingencies, engineering and supervision and interest during construction. The methods used by SRH in preparing the cost estimates are satisfactory and the costs are reliable. 51. Details of the cost estimates are given in Annexes 11 and 12, and are summarized below: Total Method of Financing Costs Local Funds IBRD Loan Regi6n Lagunera District 720 513 207 tv 4- -1 ol 67 In US$ million equivalent 65.4 46.5 19.0 52. During 1962 and 1963 the Tlahualilo Section comprising 13,200 hectares of the Region Lagunera District was rehabilitated by constructing a new main canal and distribution system and additional roads. M-ost of the construction in this area is completed and the area is now under cultiva- tion. The planning and design of this section of irrigable area has been the pattern for the future work proposed for the Regi6n Lagunera District. Land leveling for the Tlahualilo Section is still to be performed and is included in the costs shown above for the project. In addition to the above work excavation for approximately 0 km of the Sacramento canal has been started and is in various stages of completion. The cost of work already done on the canals and distribution system amounting to Ps 93 million (US$ 7.4 million) would not be part of the project. Details of costs for work already completed are shown in Annex 13. Construction Schedule 53. SRH has stnrte nonstruction of preliminary works for Las Tortolas Dam. In Annex 14, this is shown as the "preliminary" year. The dam would be completed in the third year thereafter. Construction for works in the Lagunera :irrigation zones would be started during the first year and be comnleted by the ond of the fifth-. Details of the construction schedule are shown in Annex 14. 5h. In the San Juan del Rio District, the Miguel Hidalgo Dam would ta_ke0 two- yarsC ton costu tabeinning -n +.a i",+ anq fiii :ina in +.bn third year. Works in the irrigation zone would require three years, hc.,inri r,+.1in~ -van ns, r%e 4 ic~hi~ cy nn"l-wr iny +.1nn froivr+h -%rnmy-_ ljn.-n - I c -_~~~~ ~ ~ ~ ~ - - Y - - e ,_ n --_ of the construction schedule are shown in Annex 15. -Operation and Maintenance Cost Estimates 55. Operation and maintenance activities on both the Regi6n Lagunera ~E s--rl" haveI In&L recent years been £t-IL r U_L0 d .Lc:UUV_Y _LVJ_ YL1J1ILU- ting the optimum returns from each of the irrigated areas and best function- I _ 1 .L1_ __ mL __ n !~ A.. Z i - ..-1. ._ - _ _ . __ _, -~ - .AL. ug1r, u e au±.Ue. ilUe unReaiL.aUory c0nUaLVn U± U1U wor'A allu Wu low budgets for maintenance are primarily responsible for this situation. With the rehabilitation of existdng works and new construction, both - :1.3 - operation and maintenance costs per hectare would be reduced so that, alth-gh -u~n~ ch, Wi-tr"t is -11-t tial+ -c .~ r ea- 4 Jn ae +'k- +,s+ , expenditures for these functions will be increased only moderately. control structures, which should appreciably decrease labor requirements, ad throAugh t use~ ofI cocrt linil%~L ±JLLl i UcL7L_Li.) WVL"L;Li shuld. reuceA nii.- tenance costs. Cost estimates for operation and maintenance of each Ur.LUkj [IdVe UeUn LacULaLUUU ln UedL aUiU are UoUUmUUU r'tcLUiaUU. They are summarized in Annexes 16 and 17. Annual totals are as follows: District Annual Cost Cost per ha Cost per 1000 cu meters ps million pesos of delivered water pesos Lagunera 10.6 125 1/ 14 San Juan 1.6 160 25 i' 1 basis on which current water charges are being madeo Financing >6. The proposed Bank loan would cover the cost of equipment, spare parts and materials which in the past generally have been imported into Mexico. Estimates of required financial assistance have been made on this basis. They include the costs of new machinery, depreciation of machinery on hand, spare parts and certain material costs. As is normal in civil works much of the construction equipment is in the hands of contractors and SRH, or will soon be purchased by SRH. As Mexico is rapidly developing its industrial capabilities some of the machinery and supplies yet to be purchased will be obtained from suppliers within Mexico. Such purchases would be made under international bidding pro- cedures and after giving Mexican suppliers preference allowances as described in para 68. Loan funds would be used to cover the costs of such local purchases. The part of the loan which would be utilized for payments on local contracts cannot be estimated as it would depend on the outcome of international competitive bidding. The equipment required for operation and maintenance of the Districts is listed in Annexes 7 and 8, and includes construction equipment, tools and laboratory and testing equipment. The cost of operation and main- tenance equipment is estimated to be the equivalent of US$ 510,000 which together with the other estimated costs to be financed under the loan would total US$ 19.0 million (see para 51) and this is the amount of the proposed loan. This sum would also include equipment and material costs of construction work carried out in the Region Lagunera District from September 1965. - 14 - 57. The remainder of the cost totaling about Ps 581 million would be met by budget allocations. 58. The expenditure schedule, including disbursement of the Bank loan would be approximately as follows: Preliminaryl" 1st 2nd 3rd hth 5th Total (millions of pesos) Local expenditures 9 119 150 115 93 95 581 Foreign expenditures 3 54 59 50 35 36 237 Toanl 12 171 90 165 19A 111 P1A Equivalent US$ millions 1.0 13.8 16.7 13.2 10.2 10.5 65.4 17Before proposed Bank loan. Details of annual expenditures are given in Annexes 18 and 19. V. ORGANIZATION AND MANAGEMENT General 59. The project would be executed and operated by SRH. SRH is a separate ministry established in 1947, to develop and administer the water resources of Mexico. The Secretary of SRH is a member of the Cabinet. The Sub-secretary is an engineer and is the senior official in charge of four technical departments and of one administrative department that are responsible for planning, constructing and operating irrigation projects in Mexico. 60. Operations in the field are controlled through three types of organizations: a) Regional Development Commissions b) Basin Planning Commissions, and c) Irrigation Districts Regional Deve0loment Commissions 61. The Rpaional DPvelonmPnt Cormnissions. of which there are four-. are semi-autonomous bodies with broad powers for the development of the respecti+vem riivrdn bas.insq ovr? which theyv xriejuidcin TIne Commission Chairman of each Regional Development Commission is the Secretary ofr R14 otherowis t=+hen Conr...issionits acvtie +--j+nC-a indepennnnt- of SRI- as each commission has its own staff and functions as an independent including the technical, economic and financial aspects of development in VIIV V6OJ.LLIO Basin Planning Commissions 62. In addition there are three basin Planning Commissions, which have as their objective the planning of the entire resources of the basin over which they have control. These Commissions confine their activities to the study and planning of the water and other economic resources of the basin and nake recommendations to SRH for the orderly and best use of the resources. Irrigation Districts 63. In the remainder and the greatest part of Mexico, irrigation developments are controlled by SRH through irrigation districts. The two Districts included in the proposed project are administered through such organizations. Throughout Mexico there are 128 such districts. However, as a number of them are very small, they are consolidated for administrative purposes into groups under one SRH manager. There are 58 such managers who in turn report to 34 general managers who usually have jurisdiction over an entire State. however if a State is very larae. responsibility is divided among more than one manager. General managers report directly to the SRH offices in Mexico City. An exception to this oreanizational pattern is the case of three large projectsi/ which are of sufficient size and scope t_o have the DiSt-rict mnnriangr rport r1iretl t.eSRT4- Eacnh Di stri nt has its own technical and administrative staff and is given a large measure of SRH. The District staff in each case is headed by experienced engineers - V _ V.LWJ '.L JL tol .L%., U A_1C.LJO 1Z;L 3 L QL IJ V j.MJr.LJ . & U - Engineer. They supervise other qualified staff in the preparation of plans J_.LJ L U..LLUJ 1U LJ0 U1 Ul, U.LULJ, OUj-bJUL V.LOt, %UJC)~ UA± W, U-L%JJ .9 e j.4 water distribution and direct the operation of district-owned equipment. ZUI V.L.L.Ace _IL 0 LIJ U11dL1_t;1C U1. UUZLJL1"U111LJUO~ 1LU1 Ctt.;UVUJJ Lng, rdaue collection, disbursements and other office services. The District funds are controlled by SRH but tne financial operatlons are suujecu te approval of the Ministry of Finance. Accounts are audited by Government audito.__ vI. fa eacn exe rIes nere is an Auvisory Commitee, the Cnairman being the District Manager of SRH, the Secretary being the representative of the Ministry of Agriculture, and the other memoers represent the Ejidal Bank, the National Agricultural Bank, the private farmers, and the ejiditarios. The Advisory Committee afstkts the Manager in establishing the annual operating plan for the project. After being advised by the Manager of the amount or water to be expected during the coming irrigation season, the Advisory Committee determines by mutual agreement the acreage to receive water, the cropping pattern for the District, and the amount or credit required. 1/ Lagunera, Rio Mayo, Rio Acuna-Falcon - ±0 / Construction 65. SRH is capable of carrying out effectively its responsibilities P -4-- A--,--- -A c-+r,.. -+ +.In a ~ nc ne iran .L'J.L- JJLjJ.C1J. J1 .L.L=LJ. LA O6ZA CL.III-L' "-~ ing construction and managing the completed projects. The technical staff VIt-'-. LjUd.±L-"LUU-U t APU4±UI;'Uci aut; Uau Lc L 0ua L-u C.L LU~a..c for studies in hydraulics, soil mechanics, and testing materials. Inaamuch as JIf 0I~ 0UU U.LJ±Y Ua.E.L-LW~U UUU 4-'UilU.L' F .L -> U. r magnitude and importance, the proposed project should be well within its 66. Contracts for the principal features of construction wol an for new equipment would be awarded on the basis of publicly advertised international bidding procedures. The major contracts for the dam con- struction,, contracts for a percentage of the work on the canals and distribution system as described hereinafter and the contracts for the purchase of equipment for operation and maintenance of the irrigation districts would be consummated on this basis. In order to make practicable the participation by international contractors in the performance of such work, assurances have been obtained from the Government that bids would be called for work lumped into contracts having a minimum value of 20 million pesos insofar as practicable. There are certain types of work which can most effectively be perforned through small contracts negotiated with local contractors using regional prices established by SRH. Assurances have been obtained from the Government that work to be awarded without international bidding procedures would be limited to 20 per cent of the value of contracts for the entire project. 67, SRH is now using a method of evaluating bids on construction work for rehabilitation of irrigation works which generally results in awarding the contract to other than the low bidder. The method was developed by SRH to eliminate unsatisfactory and unreasonably low bids for construction work. SRH requires prequalification of bidders but this apparently has not been enforced to sufficiently rigid standards to elimi- nate unacceptably low bids. The successful bidder has therefore been determined through a series of computations of averages of bids, by comparison with the engineers estimate and the elimination of low and high bids in the process. The method is not realistic in its approach and assuranoeshave been obtained from the Government that it will revise its procedures and follow more generally accepted methods of bid evalua- tion. This would include international biddina.effective Dreaualification of bidders and acceptance of a low bidder unless just cause can be shown for rejectini a bid based upon such factors as time of completion, technical competence and experience of the bidder. - 17 - 68. On previous loans made by the Bank for power and road projects in Mexico, suppliers of materials and equipment manufactured in Mexico have been given a preference of 10 to 15 nercent in evaluatine bids. Although such practices have not been used in the evaluation of bids for supplies and materials for irriation nroients. it seems annronrinte that such measures should be adopted. Accordingly, the Government and the Bank have agreed that- in the evalnation of hids involving romntic and forion sunplies, n preference of 15 percent would be allowed to suppliers of equipment and TntePrialsq producePd4 in Moverc nndl that a t oeievluatnr wouildi be Tnrlo wTi t1hout taking into account customs and other duties or imports. In addition, to agreed that, if a non-Mexican supplier of equipment or materials proves to V %11 1.,V ~ L1 W~ V4 VVL-- UU V l Y such bidder and permission, if necessary, will be given for importation of Techn cal Q15J1 ---4~U i~~ W/ ~ ~ ~ ~ ~ ± 0 %,10-_ atr .L JdUrUii L-. J.JL-1'LUUt, aL UU11Ui 1U11_LViVC PJ.Lcul -.UIL technical services has been drawn up. As elsewhere in Mexico, the plan is aseu u LeLIU coperal1ve eilors- o1 aifererit agencies wnicl hnae Lvue uot in agreed proportion and the program would be coordinated by the local representative of the Secretariat of Agriculture. For extension activities in Lagunera, an annual budget of more than 3 million pesos has been approved. The program would be financed by the Secretariat of Agriculture, SRH, the State Governments, the Ejidal and Agricultural Banks, by municipalities and farm organizations. 70. Under the program 15 extension men would be appointed who would function mainly as specialists and supervisors for local agents and loan supervisors of official banks. In addition, it is planned to set up a productivity center which would serve for the demonstration of improved farm practices. Other extension activities planned are home economics, youth clubs, and training courses for the lower grade extension officers. As heretofore, the Federal Government would have responsibility for the Experiment Station at Torreon. The staff and facilities of this station, which already renders creditable service, would be expanded. 71. The success of the extension service program would be dependent on the recruitment and training of personnel. In view of the size of the irrigable area, it would appear advisable to increase the number of extension agents from 15 to 20 and to start a training program for them as soon as possible after work on the proposed project is started. Assurances have been obtained from the Government that it would expand the program to 20 agents and recruit and establish a training program in 1967 to enable the staff of 20 agents to be trained by the time the project is completed. 72. For the San Juan District the Government had planned a small expansion of the extension service. The plan would provide for an increase in extension agents and as at present most of the field work in extension would be carried out by the loan supervisors of the official banks. This is inadequate despite the addition of technical personnel of the newly established branch office of the Agropecuario at Queretaro, (see Annex 2, page 2). In addition, the Government had no plans for demonstration farms in the District. To expand the program in accordance with the Bankls views assurances have been obtained from the Government that at least three super- visory extension agents would be employed in the District, that at least one demonstration farm would be established in the District, that adequate annual budgets for such work would be provided, and that such steps would bc takcn during 1967. Reuirements for Farm Credit 73. Requirements for farm development credit are relatively small, in both irrigation Districts. No credit is needed for land development, since all of the additional land to be irrigated has already been under cultivation at one time or other. Land leveling in the entire irrigated area of the two Districts would be done by SRH as part of the project and the corresponding cost would be included in the quota to be paid by the beneficiaries. Other on-farm improvements to be carried out are small structures, most of which require only hand labor. 74. About Pesos 2.3 million in medium or long term credit would be needed to finance the establishment of orchards and vineyards in the San Juan District. Short term credit needs are estimated to be Ps 110 million for Lagunera and Ps 6 milion for the San Juan District to finance recurrent cash expenditures for materials and tractor services. 75. Assurances have been obtained from the Government that from 1967 r)n ~nwiint.in fiinric -in t.ha m nrq f-r)? +htn nivnn_qP.q~i ~c in nn rn 7)1~ would be made available by the Government through the banks serving the Dis t ri n -.q The P~ f rhnd Pot-ir.-n. Vifirniiln-_ nnrl flin SPrrP_t.,riq H,= Agricultura would advise the farmers and ejidatarios as to the purpose and nvnilmhili v fi n h -1 ad1+ AdditionaMl_So_-ils S-tudieS problems which may develop on the lands of the Regi6n Lagunera District water and the water from approximately 30 wells must be sampled and tested iUJ±Ui .oLIJL d.L4LIJ.L.JII, .U .LD II9..D0IA, U%J I CVC~LJ..D1± tJ"J te 1 ' D ~ . approximately 60 representative areas of the District at which annual ances have been obtained from the Government that such studies would be started and carried on to the satfaction of the can, arIn tat annual reports of the results of the studies would be submitted to the Bank. - 19 - Water Charges 77. At present, water charges in the two Districts do not cover operation and maintenance costs. In Lagunera, the water charges for operation and maintenance vary from 20 to 139 pesos per hectare. The total amount collected is 4.44 million pesos equivalent to Ib per cent of the present 0 & M budget of 9.18 million pesos. The remainder (4.74 million pesos) is met by a federal subsidy. In San Juan del Rio,, the water charge is on a volumetric basis, being 25 pesos per thousand cubic meters delivered to the farm. These charges cover 750,000 pesos or 55 per cent of the present 0 & M budget of 1.35 million pesos. A federal subsidy of 604000 pesos is meeting the deficit. Over the country as a whole, in 196. 0 & M costs for 2.h million hectares were 193 million pesos, of which 128 million (66 per cent) was met by the water users, the remaining 65 million being subsidized. 78. In conformance with recent Government policy, the Government has assured the Bank that, following the completion of work in the Regi6n LaLunera and San Juan del Rio Districts, wntpr users shall 0 & M costs fully. In the Regi6n Lagunera District, the water rate would be not less than 12q nnso. nr hectare sn that, with Aq_n00 hP-rtr. irrigAted. the District costs of 10.62 million pesos would be met. In San Juan rIP l Ro +.hio wrt.l heo nnA hkn Y)n+.o -1tzq+hnn 9C np.qn- nPr 1nnn cubic meters and would be sufficient to cover 0 & M costs for the in-nnn~ jaC -- nA,S~ SfAnvnN 1A nnl1 Neither project would contribute to the overhead costs of SRH in Movi n Pt+rr maintenance, the Government has agreed that the water users should rehabilitation works. While the benefits from the project to the ~%~±U j,y UJ) i/J~ML l t, b 1 -- L tV±abU arua ani ilu r u JIVd -Jilt ct,-L.U _LUra. production in over-populated regions would justify the investment, W"' y vv q-. _LJ UV~ l ,id.ul .Lul- P1-tV.VU,; Dil&-.L_Ula14± 1ZU jJ1UJt:;UVQ -LUi I~..~ The low incomes of farmers in the project areas, the small size of one.Lr ho11ldgs anU the need to preserve 1anner.* 1Ucen_VUn WoU*u exclude the possibility of recovering from the water users the full c of the project. Assurances bave been obtained from the GovernmernL that charges of 100 pesos per hectare per year would be made in each District, Over a twenty-five year period without interest this would cover approximately 30 per cent and 25 per cent, respectively, of the estimated costs of work for the Region Lagunera and San Juan del Rio Districts. Future Land Use 80. For the Region Lagunera District SRH proposes to change the cropping pattern so as to meet the water requirements for 05,000 hectares of irrigable land. The area in cotton would be reduced by 4,00 hectares - 20 - while wheat, sorghum, alfalfa, and beans would occupy 40,000 hectares or 47 per cent of the entire area (See Annex 3). This change in cropping pattern would substitute for cotton, crops of lower water requirement and make use of irrigation water at a time when the evapotranspiration is relatively law. 81. The choice of crops to be grown is based on the national plan to assure that food requirements be met and that a close balance be maintained between production and demand. It would also minimize the danger inherent in the monoculture of cotton and would result in a better distribution of labor. Compliance with the cropping pattern can be achieved by allotting irrigation water only to the crops approved in the plan and at the time specified (see para 64) and also by granting credit only for these crops. Assurances have been obtained from the Government that SRH through the Advisory Committee would control the annual cropping pattern in the Region Lagunera District in accordance with the available water suplies. and that SRH would veto any agri- cultural plan for which sufficient water is not available. 82. In San Juan the cropping pattern would remain essentially unchanLed except for an increase of 600 hectares in fruit trees and grapes. These crops are considered as the best land use for the fairly shallow soils and sloning Innd Ivino hetween the main nanal and the highway leading from San Juan to Queretaro. The acreage in crops depnningexclunively on rainfall is yrn+Ated n remain unchaned. (See Annex 4) Benefits and Justification 83. The project works would be carried out in both Districts by water resources in public irrigation districts. In the Regi6n Lagunera the San Juan by 83 per cent. At the same time a uniform water supply *II. U~ _U "GSlA.~1 , UILLSIU 4..VJL .LJ.V%jlFUO OJA%.L %.14. rJLAWJ LI w YV.14..1L L 4 eliminated and there would be relief from the unemployment problem in .LJ4.- I ..~0d a dependable water supply sufficient to meet the consumptive needs o1 tne crops to be grown. Lana Leve_L.ng wouLd promUoe greaUer e-L.- ciency in irrigation of individual plots. The attainment of projected yields would depenad on an increase in the use oi iertilzer ana on the general improvement of farm practices. This would be obtained uhrough the proposed expansion of the extension service and making credit available for the purchase of fertilizer and insecticides as well as for contracting services of mechanized equipment. o>. Projections of average yields at the end of a 10 year develop- ment period are based on results obtained now on individual holdings and on entire ejidos within the Districts. In no case are the assumed yields higher than averages recorded in other selected irrigation districts of - 21 - Mexico. High cotton yields in Lagunera can reasonably be expected because of the favorable climatic conditions and the fact that the crop is grown by the ejidatarios collectively in large blocks under close supervision of the specialists of the Secretariat of Agriculture. 86. In the economic analysis it was assumed that the level of prices for farm products would remain unchanged. However, the projected price for cotton was slightly reduced from the present price of Ps 5.87 Per kilo to Ps 5.70 (21 US cents per lb.). The price of Mexican cotton on the world market may decline 15 per cent during the next five years. If this should occur. the project would still be viable because the future cropping pattern would include a smaller acreage of cotton than is planted no. As herptoforp about one half of the cotton oroduced in Lagunera would be absorbed by the domestic textile mills. The major food nmrdnts unild hn nnlr iinrlpr thp nrinp minnort nrnaram of CONASUPO.. a government agency which is maintaining the level of prices somewhat above that prevailhng on them wo Yrl Tnarketo. Prinim_ 1.qA +. to;ncn_13nt.P benefits from the project are farm prices which are in line with corres-pdJr- r.TP -GIF morm-Lret p-nv.4- marketing problems are anticipated in disposing of the additional pro uc-j &In 0 4 k +V, 4_ T); 4 + . AISI 4-,--- -;q n , a,fi nn-n 'n green and dry alfalfa and for feed grains by the rapidly expanding ua iy lnukl.3 Cr,L' LnI iM OCLJdLJ VU USA J_J_LO UL_IkU 4Z r GLULL 01"L 11 J.LJ VJ1117 cropping pattern from grain crops to fruits and vegetables can be .10 ezJ1UJ[Yalng Tau Ueflelu GDiau WOUU reju±l IIu bu proposed investments, the cost of hand labor has been excluded as a cost item because work done by hand is carried out Dy memDers 01 tne farm family and there would be no shortage of family labor even with the expanded area under cultivation. In fact, the rehabilitation of the Lagunera District has as one of its objectives a reduction of unemployment in rural areas. 8J7 The effect or the lining of canals on pumping operations in the Lagunera Region has been discussed in paras. 45 through 48. The resulting diseconomy must be taken into account in the economic analysis. The value of that portion of underground water which will no longer be available as a result of lining the canals must be deducted from the net benefits of the project. 90. In order to estimate the magnitude of the diseconomy involved, it was assumed that the quantity of water available for pumping as a result of leakage in the canals is 300 million cubic meters per year. The monetary value of this quantity was calculated from the net return that can be obtained from growing equal areas of cotton and alfalfa under irrigation. This is about Ps 320 per 1,000 cubic meters. The cost of pumping, counting only operation and minor repairs, is about Ps 150, leaving a net profit of Ps 170 which has to be accounted for. It was further assumed that the average economic life of tubewells is 30 years. Since existing pumps were installed gradually during the last 30 years, progressively a large nmMDer of wells would reach the sTage when they become obsolete, until 30 years from now when the value of crops produced by pumping, unless the pumps are replaced, would be zero. 91. The combined effect of the water losses due to canal lining and of the increasing number of obsolete pumps results in a net value of diseconomies which begin in the second year of construction, rise to Ps 43 million in the sixth year and decline thereafter to zero in the thirtieth year. 92. Details of the present and proposed cropping pattern for the two projects and the corresponding value of future production at farm prices are given in Annexes 3 and 4. In summary, the investment costs and the estimated benefits at the end of the development period would be as follows: kin muiLIon reu;) T,n.cnnmrn iin nn Public investment costs: 708.0 96.0 Increase in annual aross value of farm production 171.8 28.3 Less: increase in annual cost of production 51.4 9,3 in-r_n in nnniinl 0 R M costs 1J, 0,2 N~et annual fr eei t~1A~a 1 of canals and assuming a 10 year development period the internal return -" +hn 4iro+ a"+ An in +Iin IA rrn- 14 Pa+4" n-P +loha f+ irniAA hn I'Ll WIC) 1. - WI-1 - -V - -St~ U- --SA -S~ V - - - - -- ~J '± V about 11 per cent for the Lagunera District, and about 16 per cent for 74. ALI tCUULJUIIMAL. reUurn frlm tne investment inItL - 1ue van uanU Distri-Cl would be highly satisfactory. A lower return of the Lagunera District wOuld be ca~used b 1 -- .- - --L y theU dieoi es:UJVJL! rest! ing fromJJ Lte lininLLg Uf LCanal.L ConcLuSlouS an'aecominenab1on y .The project is a logical sep in e renabilitation and expanson of existing Irrigation Districts in Mexico which yield a more rapid economic return than construction of new works. The two Districts are in need of rehabilitation and their expansion would be important to the agricultural economy and the full utilization of the water resources of Mexico. - 23 - 9o. Te Secretaria ae Recursos Hiaraulicos (SRH) is an experiencea and competent organization. It has soundly planned the proposed project works. It could also effectively design and construct the works in the time proposed and operate them thereafter. The cost estimates are realistic. 97. The project would be suitable for a Bank loan of US$19 million equivalent for a term of twenty years, including a grace period of six years. April 19. 1966 ANNEX 1 rrrVT T V tTrV, CVOMTThf in1~ rJ.LiJ 0101r,11 As a result of land reform which has been in progress for 40 years, about one-half of the agricultural land belongs now to "ejidos", which are communities that hold title to their land as a group; the remainder is divided among small and medium-sized farms. The large landed estates have virtually disappeared. The ejido system is essentially a type of land ownership which prevailed in the pre-colonial days and individual members, the "ejidatarios", are each given possession of a parcel of land, usually for life by the ejido council with the approval of the Department of Agrarian Affairs. Rights to the land may not be transferred nor can the land be mortgaged or subdivided among the heirs. Parcels are usually family size plots of about 6 hectares, but since in many areas no more than one or two hectares of the holding is under irrigation, the income of the ejidatario is little above the sub- sistence level. The small size of holdings has been a major problem, especially in the Lagunera region, and this is one of the reasons why expansion of the irrigation system has been proposed. It must be recognized, however, that the ejidatario of today is far better off than he was when he worked as a peon on a large hacienda. Whether or not the ejido system permits the most efficient use of the land, the system has been accepted by most people of Mexico and is likely to stay. Certain modifications will probably be introduced to make it more workable and the study group has been appointed to suggest desirable changes. It is significant that, except for the early period of confusion, land reform has not reversed the upward trend of agricultural production. One of the major defects of the ejido system is the fact that the size of parcels held by individual ejidatarios is frequently too small to constitute a viable economic unit. The use of mechanical equipment, especially is made difficult. To some extent this problem is being over- come by collective farmina which is oracticed to a large extent in the Lagunera area. In fact, it is the only practical system under which cotton can be erown efficiently by smallholders. Collective farmine has other advantages: extension workers and credit institutions can work with a vroun instead of with individuals. thus their work becomes more effective and overhead costs are reduced. In regions like San Juan del Rio . where diversified fnrminc is nraniced, it wuld he more difficult to introduce a system of collective farming. At least a start in this dirptl-tinn i.q beingad bynip hvranizingp nrpeiit si,t which will hp jointly responsible for loans obtained from official credit institutions. Whether or not the ejidatarios will be able to adopt modern techniquesi of farnangv~r as "cA4 I r as - ; I- -4~~ ~ ., . rfl' ..J t,..- -191 U*- __s t4 - - -~~A~ ANNEX 1 Page 2 to predict. Their lower level of education is a serious disadvantage. Rowver, this is not related to the eir1n svstom an snch and it is a problem which will have to be solved by improving the educational fanilities in the ejin. i is nerhna more serious thn+ the ejidatarios as a group have enjoyed special privileges, many of them in the foin of snhsidies, which +nnAnd n make them wrdsA of hn Government. Recognizing the adverse effects, the Government is now grnAual i +hAr-m.ring +hese privlanne. While md reform has brought autu a mrSccquivaule Ui- tribution of land, it has not solved the problem of satisfying the need f eurwal popuain fr L.au-A anu prouuly will not oilve t in viet, of the imbalance between land resources and rate of population growth. ANNEX 2 Page 1 FARM UREUIT Credit to farmers in both project areas is provided mainly by two official banks: the Ejidal Bank and the National Agricultural Bank. The former grants credit exclusively to ejidatarios; the latter deals mainly with independent farmers. Other sources of credit are commercial banks, merchants and cotton brokers. The two official banks make loans in kind and in cash which combined cover all production costs. The loan usually includes an amount in cash for living expenses based on the value of labor performed by the ejidatario and his family. The proportion of loans given in kind include seed, fertilizer and insecticides. Payments for water rights, spray service and crop insurance are made by the banks directly and charged against the total of the loan which, including advances in cash, represents about 70 per cent of the value of the crop to be harvested. The usual rate of interest is 1 per cent per month on the outstanding balance of the 'Loan. Both official banks grant medium and long term credits sparingly, largely because recovery on these types of loans has been unsatisfactory. Since ejidatarios cannot provide a mortgage Fuarantee, the Ejidal Bank has only a lien on the crops to be grown. However, credit societies are now being oreanized with members assuming joint responsibility for the debt incurred. In Lagunera most of the credit given by the Ejidal Bank is already administered through local credit societies. The recovery rate on loans by the Eiidal Bank has been low. Three years ago it dropped to 50 per cent in San Juan, but stands now at 87 ner cent. Tn Lagnnera the recoverv rnt.e on short term loans is nearly 90 per cent. Deficiencies and irregularities in the administration of 10an onerntions have hoon largely reponsihIe for the nonr re-overv rait in the past. With the reorganization of local agencies the situation has im- Droved during the nast two years. The percentage of eiidatarios who are clients of the Ejidal Bank is about 40 per cent in San Juan and 70 per cent in LaPunera_ Munds for ndditinonal short term loans are qv4iIahle._ but a large proportion of ejidatarios remain ineligible for loans because they fn iIni .n r-n en +.hdn evc;.m J t "Ya- in nrm-tr m,icz yon' v- Tht, M\n+Ir%rnnI A e7" ^-iI+iiY.!n1 AnI. e4nnaa Tnn4l-tr r.T+h 4nqenn)Ar%+ farmers and loans are secured by mortgage guarantee; the recovery rate on these loa%ns I is cl to i0 per cent TlI ^p, ~~'.r + n +h National Agricultural Bank is small, they represent only about 5 per cent ni + A ---- . ,Aer+,4 -P- mmers 4, - n Qar .. T,- A Iff --- ,--4- 4,- T .- - - . rril remainder of the credit is obtained from private sources. An additional source of credit will become available with the etaluiLImLU1, oI UIL neW-Ly Vrganizeu caIcU agropecuario. I.Lb UWM I about to open a branch in Queretaro and an agency in San Juan del Rio . ANNEX 2 Page 2 It is the policy of the Banco Agropecua.rio to assist in the organization of credit societies among the ejidatarios, thereby making them eligible for short and long term credit. REGION LAGUNERA IRRIGTION DISTRICT ESTIMATED INCREASE IN NET VALUE OF ANNUAL PRODUCTION FOLLOWING REHABILITATION Area Average Price/ J£oss Value of Ccst of Production Net Value of planted Yield Ton Production per ha. Total Production (hectares) (tons/ (pesos) (pesos million) (pesos) (pesos million) (pesos million) ha.) Present - 52,670 ha. Cotton 48,900 2.0 2,4oo 234.7 1,883 91.9 1142.8 Corn 2,300 1.4 780 2.5 490 1.1 1.4 Alfalfa (green) 600 72.o 100 4.3 1,hoo 0,8 3.5 Tomatoes 300 6.5 850 1.7 910 0.3 1.4 Others 570 1.h 500 0.,3 1.1 244.6 94.4 150<2 With Rehabilitation - 85,000 ha. Cotton 45,000 2.8 2,o00 302.4 2,220 99.9 202.5 Alfalfa (dry) 7,000 12.0 h25 35.7 2,160 15.1 20.6 Sorghum 15,o000 .5 600 31.5 780 11.7 19.8 Beans 5,000 2,P 1,400 1h.O 950 .8 9.3 Wheat 13,000 2.8 900 32.8 1,00 1L.3 18. 416.4 15.8 270.7 Note Annex 3 and h: Prices are average prices- received by the farmer adjusted to bring them in line with CIF world market prices. SAN JUAN IRRIGATION DISTRICT ESTIMATED INCREASE IN NET VALUE OF NNUAL PRODUCTION FOLLCWING REHABILITATION Areapanted Averag eld Price/Ton Gross Value of Cost of Production Net Value Production or ha. (,,Total of Production (hectares) (tans/ha,,) (pesos) (pe s thousands) pesos) (pesodsusards) ( Present 5,460 ha. Lentils 1,000 0.7 1,L.00 980 300 300 690 Wheat 2,230 1.8 500 3,610 650 1,1450 2,160 Corn 2,000 1.3 800 2,080 390 780 1,300 Beans 30 1.2 1,600 60 390 10 50 Alfalfa (green) 100 65.0 100 650 1,390 140 510 Fruit 100 6.5 1,700 1,110 3,780 380 730 8,490 3,060 5,43) With RehabilitatLion - 10,000 ha. Lentils 1,500 1.0 1,L00 2,100 500 740 1,360 Wheat 2,500 3.0 00 6,750 1,150 2,880 3,870 Corn 1,800 3.0 800 b,320 790 1,h20 2,900 Sorghum 1,700 3.5 600 35 70 780 1,330 2,240 Beans 200 1.8 1,600 580 950 190 390 Alfalfa (green) 1,000 90.0 80 7,200 1,960 1,960 5,240 Tomatoes arxi Vegetables 600 8.0 80o 3,840 910 550 3,290 Fruit 300 8.0 1,700 4,080 5,500 1,650 2,430 Grapes 400 9.0 1,200 )4,320 4,000 ,600 2 36,760 12,320 24,4w ANNEX Page 1 REGTOY LIT .ERg DTSTRICT - TH1E FXTSTIPG SYSTFM 1D PROPOSFn D FN '4ORKS The existing irrigation system which has evolved over the past 100 years, consists of Lazaro Cardenas Reservoir on the Nazas River, an area of 7,500 ha under irrigatlon in several zones along tne river valley (Unit 1) and 45,100 ha irrigated on the Lagunera Plain (Unit 2). Lazaro Cardenas Dam, which was constructed during 1937-46, is an earthfill dam with a maximum height of 86 meters and a capacity of 3,000 million cm. The dam and its installations are well maintained; a minor leakage through faults in the abutments is being carefully watched and is not increasing. In Irrigation Unit No. 1, a total of 31 small canals divert water from the river in three zones to serve 7,500 ha. The canals were dug by the farmers and are unlined. In the main Unit No. 2 an extensive system of unlined canals irrigate more than 45,000 ha scattered over a gross area of some 180,000 ha, Interspersed in this area are about 70,000 ha irrigated by some 2,150 privately-owmed tubewells. The canal system was originally constructed to divert as much as possible of uncontrolled floods in the river, and consequently the canals have an excessive capacity, they are mostly unlined, and almost half the water diverted is lost by seepage. In 1962 and 1963 SRH initiated the modernization of Unit 2 by the construction of concrete lined canals and laterals and modern water control structures to serve 13,000 ha in the Santa Rosa and Tlahualilo Zones. These works are well designed, and soundly constructed; they are operating satisfactorily and when land levelling has been comleted they will be a suitable pattern for the modernization of the remainder of the area. The ProDosed New Works The nroiect will increase the aren under gravitv irrization from 52,600 ha (of which 13,000 has been modernized) to 85,000 ha all modernized. The 60.000 ha now irripatsd hv numns will cnntinnr to h nnenrted nriva.te1v and would not become a part of the project. The engineering works comnrising the nrniet are thp follewinr 1,000 km,s concrete lined canals '/ 500 kms road construction or improvement 85,000 ha land levelling ANNEX 5 The site of Las Tortolas Dam is a canyon some 60 km above the hedU of thJe distri.LUbJui uni NoI ..UL.Ui. 2. .1 .L J aLL'.L point is about 300 meters wide with a. depth of coarse alluvium in excess of 12') mieters, the depth ofth deepest borehldU. Tecayn ie consist of two thick strata of cavernous limestone overlaid by a 65 meter thick bed of relatively impervious calcareous shales, lniseOnes and calcareous marls. The dip of the strata is about 45o upstream and the river intersects the formation approximately at right angles. On both sides of the river are talus deposits, particularly on the left where the slope is flatter. The proposed dam consists of a rolled earth fill core with shoulders of permeable fill and rip rap. The maximum height of the dan would be 34 meters, the crest length 500 meters and the dan would contain 400,000 cubic meters of rolled fill and 320,000 cubic meters of rock fill. Because of the dQh of the river bed and the thickness of the talus at the sides, it is not possible to found the dam wholly on the impermeable shale strata. On the left side the dam would be founded upon a bed of cavernouslimestone, and on the right upon limestone and shale. A vertical cutoff is impracticable, and seepage control would be achieved by the construction of an impermeable rock fill blanket extending 300 meters along the bed of the river and on the talus slopes on the sides, connected to the core material of the dam. The blanket would contain 60,000 cm. of material. It is expected that grouting of the limestone would be necessary. Two tunnels 11 meters in diameter and each about 400 meters in length in the right abutment would carry flood discharges and normal irrigation releases from the reservoir. The spillway into the tunnels would be controlled by four radial gates in two pairs, each gate 7 meters wide and 15 meters deep; irrigation releases could also be controlled by two vertical gates 1.4 x 1.8 meters situated between the pairs of spillway gates. Distribution Network In the service areas, it is intended to abandon the existing, cbsolete distribution systemand to construct completely new systems modeled after those constructed in the Tlahualilo Zone. All canals would be lined with unreinforced concrete to standard sections which have been developed by SRH and which have proved satisfactory on other projects. The total length of new canals would be approximately 1,000 kms. made up as follows: Unit No. 1 Laterals and Sublaterals 6L kms. Unit No. 2 Sacramento Main Land 91 kms. Laerals andU SUu.lteral 8.54 kmjis. Total 1,0 kms.~ ANNEX 5 Page 3 Land Levelling It is proposed that the whole service area of 85,uuu na, where required, would be reshaped and leveled to achieve a high degree of irrigation efficiency on the farm. ANNEX 6 Pag 1 SAM .TYAM DT.q7?T.T. TH YTATTUr" YST M A\D P g7OPOSED7 NT WRKS T +n e_-+tiong irigatio w-rs consist ^-P +.bi qnn T1r1a-rnq Reservoir on Prieto River, a tributary of the San Juan River; Lomo de Ildefonso; and a main canal 45 km long from which fourteen laterals serve r. S'.()r 11a, of. '.a-A'. T-14. +JIJU 1, .+I-, pro 'Jc t. ara. -a-- v% *..i - - 'z wn ~-h i n ir+ the storage in San Ildefonso Reservolr. San Ildefonso Dam, situated 20 km southeast of the city of San has a maximum height above stream bed of 120 meters and a crest length of 170 mters The river nutle is a 1,9t nine thieinh a ,.6 meter tunnel in the left abutment which was used for diversion during construction. The S1pi mwa A. s4+-+-A +o +1-- w-,4- -AF +I-h A,m .A ^nncifoc nf an ogee weir and an apron; flood waters then flow over native rock to the UI tJ L UI .)i. ±I d.-1 111.iL ld~ _-~11 4.1, -4 A -LI M11 A- 10011 .A/) n.l. 1942 is generally in a sound condition. Lomo de Toro diversion dam, which was constructed in 1943, is a UVce L overail UdUUry weir W11Us cres0 i L.Lve 1ee0 abUVe ied leVel and is 70 meters in length. The left bank head regulator to the project - _! - - - ! -, -- - - -I- - __ __ I - _-- M , n- _.- -_-- - *- - main canal is integral with the weir and has one 1.0) x _.2)u IUeuer 'auLa_L gate. The structure is in need of minor repairs which are being under- taken with brdinary maintenance funas. The project main canal was also constructed in 1943, is 45 km in length and has a capacity at its head of 10 cm per sec. It is unlined but in the first 20 km, wnere it is excavated in tuff, seepage losses are no more than 5 to 6 percent; below km 20, however, where it is constructed in more permeable material, losses exceed 15 percent. The sixteen laterals which take off from the right bank of the main canal are also unlined. Their head regulators, and also the farm turnouts, are uncalibrated and discharges are determined by frequent current meter observations. The distribution system is generally well maintained. The nine ponds in the area, whose total capacity is 9 million cubic meters, are filled by streams issuing from the high ground located to the northeast of the project. The ponds are shallow and formed by earthen levees. The 5,400 ha of land presently irrigated are in scattered blocks extending over a total area of some 10,000 ha. ANNEX 6 Page 2 The'Pronosed New Works The proposed project would supply adequate additional water to extend the area of irrigation from 5,400 to 10,000 ha, all served by a modernized distribution system. The proposed new works necessary for this accomplishment are the following: Miguel Hidalgo Dam A FPpr CpnAl frnm thp Sqn Jiin Rivpr tn thp Mipnil Hidalo Reservoir (length 15 km.) 110 -m- rf now rnnm 40 km. of reconditioning existing canals 16 km. of surface drains 8 houses for ditchriders l0,000 ha of 1Wn- lrrelli-r River leaves the high ground to the southeast of the project area. The reservoi 'Loreu lu ti L~ Jle UdamL VALLL .L Lood Wie pr± eseit JInct-il L.UlL Ut5 L,vV.eLL km 14 and km 20. The dam would have a crest length of 2,200 meters and a _U height OfL 26 meters above 3tream.bed. It 'WOULdL4 consis oft a rolled earth-fill core whose slopes would be covered with rip rap. On UIIE" _LE' U liculm± 01 WiUIIC iVE-, a _LEVt,- .L IJUVI'LCdU±Ct wit aULCdU ~ WUId thickness of up to 15 meters overlies impermeable tuff. A concrete cut- oun would ve counluU tuhrougu hne tl- ong VUe o L e I-- o b-ne bUll.. On the right bank, the tuff is immediately beneath the superficial soil and only a hallOw uuofU Uouu be necessary. The outlet works on the left bank, which would supply the remodeled main canal at km 20 would have a capacity of 5 cm per sec. and consist of a 1.5 meter diameter reinrorced concrete pipe through the embankment controlled at the inlet by a vertical lifting gate in a re- inforced concrete tower connected to the crest of the dam by a walkway. The spillway on the right bank would consist of a side weir 150 meters in length discharging into a concrete chute of 550 meters length terminating in a. stilling basin. The spillway would be designed to pass 475 cm per second with a head of 1.3 meters over the weir crest. The Feeder Canal into Miguel Hidalgo Reservoir from the existing San Jose diversion dam on the San Juan River would be 15 km in length, of which the first 2.6 km would be lined with masonry. The remaining 12.4 km, would be excavated mainly in impermeable tuff and would be un- lined. The capacity of the canal is provisionally 10 cm. per sec., but further operation studies may demonstrate that a slightly different capacity is necessary (see Appendix 10). ANMEX 6 ae 3 Works in the Service Areq consist, nf the replacenment of 14 km of the present main canal between ken 19.5 (the outlet from Miguel Hidalgo Reservoir) tn km 33.2 by a rnncrete-lined canal and the re- conditioning (mainly by silt clearance and making up of banks) of the remaining reaches, km n to 14 and km 33.2 to 45. Achek ructure will be constructed at each of the 17 lateral turnouts. All laterals woldr be remodelledý( into coMrteQie setosathuhms-f the sub-laterals would be unlined. A check structure would be placed at each far IIturnout. Fam turnoutc woul be +l- theMille-r" typ andeac gate would supply an average area of 50 ha with a maximum of 169 ha and aCL minmu of; 7L ha.Ik Eac uaea and sublatra would hVe a four-me-tCer wide road on its bank, surfaced with gravel. The surface drains pro- posed wvould consist of the, improvemen of the Sec Rie channeUCl to Preventu b~PULL. 0 QL U U. L L 11-ILIJV.L-u t IIt,lu U± ulle 1.;ec £iJLVC-I UI~ ~.L 4~ jIV~1 floods from inundating the farm lands. Land levelling is proposed for thle who0 l area as part ofL thW pojct ANNEX 7 REGION LAGUNERL DISTRICT PAI,TEANCE EQUIPT0M \uostl _Ln if 11UU6dfU11Zj Unit Price Cost TYPE No. (pesos) (pesos) equivaient dollars) Field Plant Motor grader 115 H.P. 4 266 1,06l 85.2 Front loaders 40-50 H.P. with rear excavator 4 230 920 73.5 Excavators 2 300 6oo 48.0 Rubber tyred tractor 1 90 90 7.2 Crawler tractor, 120 H.P. turbo-charged with torque converto 1 45o 450 36.0 Compacting roller, rubber tyred 1 40 40 3.2 Greasing equipment for mounting on 2.5 ton truck 3 25 75 6.0 Road oiler 1 160 160 12.8 Centrifugal self-priming pumps, 1" 3 15 45 3.6 Concrete mixers 3 15.6 47 3.8 Mobile welding outfit, 300 amps 1 40 40 3.2 Tankers, pumps, heavy transport and miscellaneous - - 1,215 97.2 Total Field Plant 4,746 379.7 Workshop Equipment Compressor 315 cu. ft. 1 163 163 13.0 Welding outfit. 300 amps 1 19 19 1.5 Greasing outfit 1 7 7 o.6 Grinding wheel. electric 1 8 8 o.6 Centrifuge for diesel 1 22 22 1.8 Fuel storage tank 30.000 litres 1 35 35 2.8 equipment 214 254 20.3 GRAYD TOTAL 5,000 oo i]UL,e * luuvtU 1_LCes~~ irI(i' OiL0. L a ~ ANNEX b SAN JUAN DISTRICT MAINTENANCE EQUIPIENT (costs in thousands) No. Unit Price Cost TYPE (pesos) (pesos) (equivalent dollars) Field Plant Dragline, 3/h cu.yd. 1 426 426 34 Motor grader 120 H.P. 1 275 275 22 Tractor (D-4) 2 230 46o 37 Tools 89 7 Total, Field Plant 1,250 100 Survey and Laboratory Equipment Theodolites, Levels, Tapes 30 2.4 Irrigation and Drainage Laboratory Equipment hO 3.2 Concrete Testing Laboratory Equipment 55 h.h Total, Survey and Laboratory Equipment 12' 10 Summary Field Plant l, 250 100 Survey and Laboratory Equipment i2> 1U Grand Total 1,375 110 Note: Above prices include cost of spare parts. ANNEX 9 R.rTONI TAGIUEPA DISTRICT - hJA1'ER SUPPLY AND DEMAND the basis of reliable streamflow records over the 36 year period from InnC) 4/JI OU911 -L7W , e a e a e a n a lo,;o ,- _ 4. L,1 -V _i. -_ 4i1Ud. -. 01 nA1 I n± -4 .1. -14 4lL.L cm. The 3,000 million cm. capacity Lazaro Cardenas Reservoir on the upper river has a firm Yild_ of OUV MiL-Li.o1 cU1. anualU__ly. TheU proVPosed Las Tortolas Reservoir, with 300 million cm. capacity, would regulate Loe tourrinial LIU.-ows -.iw ±nUele 2-:0 'ki reaun o tue river below Lazaro Cardenas and an integrated operation study for the period 1944 through 1o94 demonstrates that the firm yield of the two reservoirb operated in combination will be 890 million cm. annually with shortages in two years only, of 23 ana 41 percent respectively. The period of the operation study was a pritical one, when inflows into the system averaged 80 percent of the mean for the years 1929 through 1964. Demand 1'ne proposed cropping pattern, area of each crop, irrigation period, annual number of irrigations, annual depth of water at farm turnout (ascertained as suitable by comparison with comparable areas), net farm water requirements and allowance for transmission losses are given in the following table: IRRICATION DEMANDS Crop Area Irrigation No. of Annual Depth Net Farm (Ha.) Period Irrigations measured at Requirement per year Farm Turnout (million) (cm.) cm. COTTON 45,000 Mar-Sept 6 100 450 ALITPATT-A r7 fV.)n __1'1 yea I/ -Iz2 1-± SORGHUM 15,000 Feb-May 3 58 88 ITMtA Tj Q r Annl 'M_1 A- n 1 'l_ L4WI ) , 000V t1 eU-xt jprE) £4.) RHEAT 13,000 Nov-Mar 4 55 71 rtrMYA T 6C nnnP r747 Transmission losses 1 143 TOTAL WATER REQUIREMENTS 890 l/ 18 in two years a/ Average of two years 3/ Below the Las Tortolas Dam there is considerable side flow into the river, compensating evaporation and leakage losses. The net trans- mission losses are estimated at 4 percent in the river and 12 percent in the canal system. It will be seen that gross annual water demand on Las Tortolas Dam of 890 million cm. for the cropping program proposed equals the supply. Page 1 SAN JUAN DISTRICT - WATER SUPPLY AND DEMAND The 5,400 ha presently irrigated in the project area are supplied by a diversion from the San Juan River, on whose tributary, the Prieto River, is the San Ildefonso Reservoir with a capacity of 53 million cm, equal to the average annual inflow above the reservoiro Between San Ildefonso and Lomo de Toro, the diversion dam for the project, the 1,268 sq.km. watershed contributes an average annual flow of 49 million cm. but little of this is available for irrigation since most of the flow occurs in the months of July through October when irrigation is not necessary. Under the nroict. an additional rpsprvoir. Miupl HidAlgo. with a capacity of 45 million cm. will be built at the junction of the Galindo and "H" RivPrs. where thv inin to form thp Rivpr (rq. who!t combined average annual discharge is 39 million cm. Inflows to Miguel HidnIo Resprvoir frnm its own watershed will be sunnlmenten by dverting water from the San Juan River, through a diversion canal of approximately 1l0 cm-. Per sect. s v~--.Pndi na f'--rnm i-.n= ari ui na 'Son Jose, Hiierz i dam to the reservoir. Streamflow data for both reservoirs extends over the 21 year uzl0 _ P wj 'L _ U C34 --: U1ill±; tZ CLI t: L J J V~.1UD, VVILllA1 dU'. 1L U_ad L'_Y filled from other sources and have a total effective volume of 8.7 million whe annuL ir-!gauon ueuainus 0f tne system are -2.7 million cm. for a total irrigated area of 10,000 ha with the cropping pattern and farm water requiremen U shown in the lollowing Table: RAT\T .TTTAI% - TAPT.E C7 TPPTrATTP1T DEP1vrMANDA Crop Area, Irrigati Annual Depth at Net Farm (Ha.) Period 1 Farm Turnout Requirement (cm) (million cm) LETILS 1,500 Nov-Dec 34 5.2 MAIZE 1,800 Apr-June 51 9.2 WHAT 2,500 Dec-Apr 56 14.0 BEANS 200 Mar-June 51 1.0 SUHU1M 1,U700 Apr-June 51 8.8 GRAPES 400 Dec-June 114 4.6 FiUITS 300 Nov-1May 120 3.6 ALFALFA 1,000 Nov-June 137 13.7 VEGETABLES 400 Dec-Feb 32 1.3 TOMATOES 200 Mar-June 54 1.1 TOTAL 10,000 62.5 TranSmissiotn Tocc-. 2/ 10.2' TOTAL WATER REQUIREMENTS AT RESERVOIRS 72.7 _/ No irrigation July - October because of rain 2/ 14 percent of total, in both rivers and canals ANNEX 1 Of this 72.7 millon cm. demand, 8. millon is suppied by the nine ponds for the early winter season irrigation. This leaves 64 million cm which must be supplied. by the large reservoirs. An operation study over the period 1944-64, with San Ildefonso releasing annually 30 million cm. for 4,500 ha west of the Garacol River and Miguel Hidalgo releasing 34 million cm for 5,500 ha east of that stream demonstrates that these requirements can be met throughout the period without deficiency. SRH intends to make additional studies which may show that additional areas could be irrigated in most years, however these are not taken into account in the present project. ANNM 11 REGION LAGUNEI41 PIjUECT ESTMATE OF COSTS Toanl Sources of Financing Costs Local Funds IBRD Loan Work Item (TniIion (rni liinn (Tni lin pesos) pesos) dollars) Las Tortolas Dam Diversion 9 6 0.2 Tunnels 32 20 1.0 Spillways and Outlets 18 8 0.8 Dnbanknent 28 19 0.7 Upstream Blanket 15 10 0.4 Access Roads, Camps, Right of Way etc. 11 9 0.2 Sub-Total 113 72 3.3 Trrigntion Zonr Tined Canas 27q 24 10 Canal Structures 27 24 0.2 Houses for Ditch Riders - 4 T.anl TLeveling 75 19 Sub-Total 417 298 9.5 Total, Dam and Irrigation Zone 530 370 12.8 VlaILLner.y .LorP 11"''-i-teancet. aJ,L Total, Construction, Engineering nnd Mahinery 601 L36 13.2 Contingency @ 17.516 approximately 107 77 2.4 Overall Total, including Contingency 708 513 15.6 Interest during construction 1 12 1.0 GRAND TOTAL 720 513 16.6 1/ On dam only ANNEX 12 SAN'! JUAN DEL RIO PROJECT ESTIMATE OF COSTS Tot1a-l S1ources of JFinancing Costs Local Funds IBRD Loan pesos) pesos) dollars) Miguel Hidalgo Dam Embankment and cut-off 32.2 21.5 .86 Spillway and Outlet h.2 2.7 .12 Reservoir Right of Way, relocation of road, transmission lines, etc. 5.0 4.7 .02 Feeder Canal from San Jose Dam h.0 3.4 .05 Sub-Total 45.4 32.3 1.05 Irrigation Zone New Caas 1. 9.9 .20 Canal Structures 2.2 2.0 .02 Reconditioinug Estn Caal 0.6 0.h .02 Drains 1.5 0.9 .05 D-4 n n 1 4 n1 RoaLUD -2 .0 _m-.O__ .-03_ Houses for Ditch Riders 0.2 0.2 Lad.I .LJe ve.ling 6J.7 -.7 . Sub-Total 25.7 16.7 0.72 Total, Dam and Irrigation Zone 71.1 49.0 1.77 Eninern & Suevso @-- 12.5% 8.9 f,i8.9&0n Machinerv For MainteniAnce 1.h 0.11 Toua_L, UonstrUU En.LLJ gineeing and Machinery 81.4 57.9 1.88 Contingency @ 17.5% approximately 14.6 10.2 0.35 Overall Total, including Contingency 96.0 68.1 2.23 Interest during construction 2.0 . -RD On d TCT 9. . 1/ On dam only ANNEX 13 REGION LAGUNak PROJECT COST OF REHABILITATION WORKS UNDERTAKEN 1962-3 Million Pesos Santa Rosa - T1ahualilo Zone (13, 200 ha): Lined canals, strictures and roads 85 Sacramento Canal: Preliminary earthwork for 40 kns between Im 3 and Km 53 8 Total previous investment 93 MEXICO: LAGUNERA PROJECT CONSTRUCTION SCHEDULE YE AR WORK ITEM - - - - - - - - - -- _ _ _ _ -- -- - -- - -_ PRELLMINARY IFIRST SECOND THIRD FOURTH FIFTH LAS TORTOLAS DAM CANALS AND STRUCTIURES E IROADS =ME EEEEEEEEEEE HOUSES LAND LEVELLING _ R (R BR -2770 MEXICO: SAN JUAN DEL RIO CONSTRUCTION SCHEDULE Y E AR WORK !TEM I I- - FIRST SECOND THIRD FOURTH NEW CANALS AND STRUCTURES I i RECONDITIONING CANALS DRAINS ROADS -E HOUSESI LCINIU LLVCELLII113NIiG L______________(R) lIBRI)- 2769 ANNEX 16 REGION LAGUIERA PROJECT OPERATION AND 4AIN'ENANCE AFTER REHABILTATION Pesos Total annual Per cent per ha. cost of total million nesos 1. AdminnistratiLon and Management 15. 8 1.3h 12.6 and Delivery 49.5 h.21 39.6 3. Maintenance 48.7 4.14 39.0 4. Irrigation and Dra-ijnage Benion Service 6.3 0.54 5.1 5. Reserve 4.7 0.39 3.7 2/ TOTAL 1 25.j0 - 1.2 ±uu0.u l/ On 85,000 ha. 2/ Present 0 & M costs are 9.18 million pesos. ANNEX 17 SAN JUAN PROJECT OPERATION AND MAINTENANCE AFTER REHABILITATION Pesos per Total Annual Per cent thousand cost of total cu.m. 1/ thousand pesos 1. Administration and Management 3.15 197 12.6 2. Water Distribution and Delivery 2.67 167 10.7 3. Maintenance 16.28 1.018 65.1 h. Irrigation Drainage Extension Service 2.19 137 8.7 5. Reserve C.71 45 2.9 fPrVP AT 0C C) 2/ inn n 1/ For 62,500 thousand cubic meters farm delivery. 2/ Present 0 & M costs are 1,350 thousand pesos. REGION LAGUNERA - ANNUAL EXPENDITURE (in millions) PRELIMIINARY FIRST SECOND THIRD FOURTH FIFTH TOTAL U.S. -1 U.S. U.S. -u S. U.S. -T.S.-ý U.S. Pøs. $ Tot. Pes. $ Tot. P,. $ Tot. Pes. $ Tot. Pøs. $ Tot. Pea. $ Tot. Pes. $ Pes. Contruction, Mahinery, Engineering 9 0.3 113 101 3.5 1 118 3.b 16) 99 2.9 136 9 2.7 125 9ý 2.8 130 513 15.6 708 ard Super- viciion Intarest, during 3 0.2 1.6 4.0 6.0 0 0 11.8 Conatruction-. Total 13 166 16J 142 125 130 720 1/ Totale are as pesos. 2/ All disbursementsa for machinery assumed to be in first year. 3/ At 5.5% for dam only. - ao S,AN jUAN~ - AYffkIjjL EXNDITirRE (in millions) FIRST SECOND THIRD FOURTH TOTAL Pes. $ Tot. Pes. $ Tot. Pes. $ Tot. Pes. $ Tot. Pes. Construction, Machinery, P o61 ,n l nering18.3 0.68 26.8 31.6 U.98 3.8 L6.- 0., 2.5 2.1 0.06 2.9 68.1 2.23 96.0 Supervision Interest during 2/ 0.3 1.,2 0.5 - 2.0 Construction - TOTAL 27.1 |h5.O 23.0 2.9 98.0 1/ Totals are pesos equivalents. 2/ At 5..5% for dam only. Mexica - COLORADO U N l T ED S T A T E S CI.-_ ,/AD kUARt SANBUENAVENTURA(D 01 hIh~.ha0 C,'UDAD DEL/C/AS RIO YAQI RIOMA YO0SAN GABRIEL DONMART4O RIO MAYO LAGUNER.A.\ -RIO FUERTE ix BAJO RIV SAN tAN Moros RIO CULIACAN CERRO PRE TOQ Gulf of Mexico X/COTENCATL Q RIO FRIO 0 Tampico MEXICAN IRRIGATION REHABILJTATION PROGRAM GUADA4LAJARA IRRIGATION DISTRICTS 0 A1 ro RIO LERMA SAN JUAN A 0 DEL RIO STACE I (L-,n 275-ME) C/ENAGA de CHAPAL A TUL AA { STASE II (Loan 336-ME) MORE C.4 anr0MEXICO CruO STAGE III AS /L 00 VAL SEGlU/ O Proposed later stages ° 00 ___ 05 oC o"' PACIFIC OCEAN TEHUArEPE0 DEGENBER 1)65IBRD-1613 R MIXICAIIJ IRRIGAIIOIN REHAILIIIATION PROGRAM F - ~ STAGE ii i IRRIGATIONI DISTRICT No. 17 LAGUNERA AREA Ml', cana --Projected canal Rail.ways 0 5 10 20 30 40 30 K1LOMETIERS e øie ' L.ARO CIRDINAI DAM mø <A MATAMOFIOS L AS IORTOIA.SDAM J RodroNcza SEPTE:MBER 1960 IBRD-1619 MEXICAN IRRIGATION REHABILITATION PROGRAM STAGE 111 IRRIGATION DISTRICT No.23 SAN JUAN DEL RIO 0 1 2 3 4 5 0 ( KILOM ETER S s j SAN ILDEFONSO DAM HALGO- -~ SAN JOSE DAM LOM0 IDE TORC, DAM LSAN JUADER1 Ms in canal s Pro]ected feeder canal XN\9 District arca Railways Ma-n roads SEPTEMBER 1965 IBRD-16113