Philippines - Second National Irrigation Systems Improvement Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE COPY Report No. 1785b-PH PHILIPPINES STAFF APPRAISAL REPORT NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II February 14, 1978 Projects Department East Asia and Pacific Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Philippine Peso (P) P 1 = US$0.135 US$1 = P 7.40 WEIGHTS AND MEASURES 1 ha = 2.47 acres 1 km = 0.62 miles 1 sq km = 0.3886 sq m I m = 3.28 ft 1 sq m = 10.76 sq ft 1 cu m = 35.31 cu ft l M cu m = 810.7 ac ft 1 mm = 0.039 in 1 kg = 2.2 lbs 1 cavan = 50 kg 20 cavans I m ton ABBREVIATIONS ACA - Agricultural Credit Administration ADB - Asian Development Bank ADCC - Agricultural Development Coordinating Council AMIADP - Angat-Magat Integrated Agricultural Development Project BAE - Bureau of Agricultural Extension BPI - Bureau of Plant Industry DAR - Department of Agrarian Reform DLGCD - Department of Local Government and Community Development DOH - Department of Health NFAC - National Food and Agriculture Council NGA - National Grain Authority NIA - National Irrigation Administration NISIP: II - National Irrigation Systems Improvement Project: II NISIS - National Irrigation Systems Improvement Study 0&M - Operation and Maintenance PCAC - Presidential Committee on Agricultural Credit RB - Rural Banks SCC - Schistosomiasis Control Council SCRS - Schistosomiasis Control and Research Service SPO - Special Projects Organization TBAC - Technical Board on Agricultural Credit UPRP - Upper Pampanga River Project WMT - Water Management Technicians GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY PHILIPPINES: STAFF APPRAISAL OF THE NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II TABLE OF CONTENTS Page No. 1e BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . 1 2. THE PROJECT AREA. . . . . . . . . .. . . . . . . . 2 General . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Climate .... . . . . . . . . . . . . . . . . . . . . . .2 Topography, Drainage and Soils . . . . . . . . . . . . . . 4 Land Tenure and Farm Size .u.r. .a.da i.. . . . . . . . . . . 5 Existing Irrigation Facilities. . . . . . . . 6 Transportation ..... . . . . . 6 3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . 9 Project Description . . . . . . . . . . . . . . . . . . 9 Project Works . . . . . . . . . . . . . . . . . . . . . . . 10 Water Supply, Demand and Quality. . . . . . . . . . . . . . 12 Status of Engineering .... . . . . . . . . . . . . 18 Strengthening of Regional O&M Capability . . . . . . . . 18 Input-Output Monitoring . . . . . . . . ... . . . .. . 19 Schistosomiasis Control Program . . . . . . . . . . . .2 1 Feasibility Studies .... . . . . . . . . . ...... . 22 Cost Estimates. . . . . . . . . . . . . . . . . 22 Financing . . . . . . . . . . . . . . . . . . . . . . . . . 27 Procurement .... . . . . . . . . . . .. . 27 Disbursements . . . . . . . . . . . . . . . . . . *.. . . . 28 Accounts and Audit. . . . . . . . . . . . . . . . . . . . . 28 Environmental Effects . . . . . . . . . . . . . . . . . . . 28 4. ORGANIZATION AND MANAGEMENT. 29 Project Management. . . . . . . . . . . . . . . . . . . . . 29 Agricultural Supporting Services. . . . . . . . . . . . . . 30 5. AGRICULTURAL PRODUCTION . . . . . . . . . . . . . . . . . . 32 Present Cropping Patterns. . . . . ...... . . . . 32 Future Cropping Patterns . . . . . . . . . . . 33 Yields and Production . . . . . . . . . . . . . . . . . . . 33 This report is based on the findings of a Bank mission which visited the Philippines in July-August 1977, comprising Messrs. A. N. Khan (Bank) and D. K. Jones, J. W. Ball, A. L. Gram and A. Yambao (Consultants). Mr. E. G. Giglioli also assisted in preparation of the report. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -2- Page No. Cropping Calendar . . . . . . . . . . . . . . . . . . . . 35 Farm Mechanization. . . . . . . . . . . . . . . . . . . . 35 Drying, Storage and Processing. . . . . . . . . . . . . . 36 6. MARKET PROSPECTS, PRICES, FARM INCOMES AND PROJECT CHARGES . . . . . . . . . . . . . . 36 Market Prospects. . . . . . . . . . . . . . . . . . . . . 36 Prices. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Farm Incomes. . . . . . . . . . . . . . . . . . . . . . . 39 Cost and Rent Recovery. . . . . . . . . . . . . . . . . . 40 7. BENEFITS, JUSTIFICATION AND RISKS . . . . . . . . . . . . 43 8. RECOMMENDATIONS .... . . . . . . . . . . . . . . . . . 48 ANNEXES 1. Project Features; Irrigation Facilities Cost; Expenditures, Disbursements and Allocation of Loan Proceeds 2. Crop and Farm Budgets 3. Schedule of Critical Events 4. Related Documents and Data Available in the Project Files LIST OF TABLES IN MAIN TEXT Table No. 2.1 Summary of Climatological Data . . . . . . . . . . . 3 2.2 Land Ownership and Farm Size Distribution. . . . . . 7 2.3 Land Tenure of Rice Lands. . . . . . . . . . . . . . 8 3.1 Project Water Requirements Summary . . . . . . . . . 14 3.2 Estimated Cropping Areas for Systems with Limited Water Supply . . . . . . . . . . . . . . . 15 3.3 Present and Future Irrigated Areas . . . . . . . . . 17 3.4 Irrigation Systems Outside NISIP: II . . . . . . . . 20 3.5 Cost Estimate (2 pages) . . . .. . . . . . . . . . . 24 3.6 Irrigation Service Area - Cost Estimate. . . . . . . 26 5.1 Present and Projected Yields . . . . . . . . . . . . 34 5.2 Present and Projected Crop Production. . . . . . . . 35 6.1 Price Structure for Rice . . . . . . . . . . . . . . 38 6.2 Fertilizer Prices . . . . . . . . . . . . . . . . . 39 6.3 Farm Incomes . . . . . . . . . . . . . . . . . . . . 39 6.4 Cost and Rent Recovery . . . . . . . . . . . . . . . 41  -3- Page No. 7.1 Net Value of Production at Full Project Development. . . . . . . . . . . . . . . . 44 7.2 Labor Supply . . . . . . . . . . . . . . . . . . . . 45 7.3 Economic Costs and Benefits . . . . . . . . . . . . 47 7.4 Sensitivity Analysis . . . . ....... ... . . 48 LIST OF FIGURES Figure 3.1 - Implementation Schedule; Southern Luzon Subproject and Common Events Figure 3.2 - Implementation Schedule; Western Visayas Subproject Figure 3.3 - Implementation Schedule; Mindanao Subproject. Figure 4.1 - NIA Organization Chart for Engineering and Operations Figure 4.2 - Proposed Organization for Project Construction Figure 4.3 - Proposed Organization for Project Operation and Maintenance Figure 5.1 - Proposed Cropping Calendar for Southern Luzon Subproject. Figure 5.2 - Proposed Cropping Calendar for Western Visayas Subproject Figure 5.3 - Proposed Cropping Calendar for Mindanao Subproject LIST OF MAPS IBRD 12507(R1) Systems Location IBRD 12946(R) Region 4; Southern Luzon Subproject IBRD 12947(R) Region 5; Southern Luzon Subproject IBRD 12948(R) Region 6; Western Visayas Subproject IBRD 13023(R) Region 9, 10 and 11; Mindanao Subproject IBRD 13024 Region 8 & 10; Mindanao Subproject   PHILIPPINES APPRAISAL OF THE NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II 1. BACKGROUND 1.01 The main thrust of the National Irrigation Administration's (NIA) program of rehabilitation and expansion has been directed to the large rice growing irrigation systems in Central Luzon and in the Cagayan Valley of Northern Luzon. The ADB-assisted Angat-Magat project and the Bank-assisted Pampanga, Penaranda, Tarlac, Magat and Chico projects were all components of the NIA program of development of large-scale systems in the principal grain producing areas of Luzon. At the same time, NIA has been carrying out a smaller, but steady irrigation development program of some 55,000 ha in Mindanao with ADB assistance. In addition to rehabilitation of existing canals and structures, the construction of new ones, the provision of better drainage and access and the introduction of water management and rotational irrigation practices, the program also has included the provision of extra water supplies in some areas through the construction of storage or by transbasin diversion. 1.02 NIA has not neglected the need for rehabilitation and upgrading of the badly deteriorated, smaller systems scattered through the Philippines. The National Irrigation Systems Improvement Study (NISIS) was set up in 1975 with Bank assistance (Loan 1080-PH) to inventory the smaller systems and to select a total of about 150,000 ha with the highest priority for improvement, allowing for a balanced regional distribution. All national systems were inventoried. Systems included in ongoing projects were excluded, as were systems earmarked for rehabilitation under already identified ADB-, Bank- or bilaterally-assisted projects. The remaining systems were then evaluated on the basis of the degree of need for improvement, the potential for improvement and expansion in terms of land and water resources, the technical and economic feasibility of improvement, the human need in the area, in terms of poverty and disease, and the institution building aspects in terms of strengthening the capabilities of NIA's regional offices. Sixty- two national irrigation systems grouped into four packages were selected, and feasibility studies were undertaken by NIA with the assistance of consul- tants. The first package making up the National Irrigation Systems Improve- ment Project:I (NISIP:I, Loan 1414-PH), covers 22 existing and 3 new irrigation systems for a total 49,500 ha. The proposed project consists of the second and part of the third packages. It would include 26 existing irrigation systems spread over seven NIA Regions in Southern Luzon, the Western Visayas and Mindanao. NISIP: I loan became effective in August 1977, so the Project is in the initial phase of organization and mobilization, however the progress to date is good and ahead of appraisal schedule. NISIP: II components are identical to NISIP:I except the extent of drainage works for Schistosomiasis Control Program, which is confined to the concerned irrigation system boundaries instead of watershed area (para. 3.23) and the provision of input/output monitoring, which would cover both projects.  - 2 - 1.03 The proposed project would be the ninth Bank-assisted irrigation -roject in the Philippines. ALl works have been substantially completed on the first project, the Upper Pampanga River Irrigation (Loan 637-PH). Overall progress on all these projects has been generally satisfactory. Total cost of project on the first two projects was about 70% over appraisal estimates on UPRP (Loan 637-PH) and about 55% higher on Aurora-Penaranda Irrigation (Loan 984-Credit 472-PH) largely as a result of rapid inflation following the oil price increases in late 1973. However, due to considerable increase in the projected world market price of rice and from early diversions on both of these projects, the rates of return on both of these projects have not changed. 2. THE PROJECT AREA General 2.01 The project would rehabilitate and expand 26 existing irrigation systems with a total irrigable area of 80,900 ha. These systems can be divided into three distinct subproject areas. The Southern Luzon subproject would include 12 irrigation systems located in the provinces of Quezon, Batangas, Camarines Norte, Albay and Sorsogon. The Western Visayas sub- project, would include 4 irrigation systems located in the provinces of Aklan, Antique and Negros Occidental. The Mindanao subproject would include 10 systems located in the provinces of Zamboanga del Sur, Surigao del Sur, Bukidnon, Davao del Sur, North Cotabato and South Cotabato. Aside from 6,400 ha of sugarcane in the Western Visayas subproject and a small area in the Mindanao subproject transplanted rice, whether irrigated or rainfed, is presently the malin crop in the project area. Negros island in the Western Visayas is the only rice deficit area, while all other project systems are in rice surplus areas. Systems in the Bicol region of Southern Luzon suffer from high population densities and small, fragmented holdings; these subprojects and the one in Mindanao are located in some of the poorest regions in the country. 2.02 There are a number of small towns scattered throughout the project area. Most of the irrigation systems are located close to major commercial centers providing banking, storage and processing facilities, as well as supplies of inputs to the agricultural areas. The systems in the provinces of Sorsogon, Aklan, Surigao del Sur and Bukidnon are fairly remote from major centers. A few project systems lack a good road network especially in Aklan and Antique provinces in the Western Visayas subproject and Surigao del Sur and Bukidnon in the Mindanao subproject. However, the Government is currently engaged in a program of road iimprovement in these areas. Climate 2.03 The climate in the project area is tropical and monsoonal. Warm temperatures throughout the year allow a twelve-month growing season with irrigation. The average annual rainfall in the three subproject areas ranges between about 1000 and 5,400 mm, with marked differences in the rainfall  Table 2.1: SUMMARY OF CLIMATOLOGICAL DATA Period of Subproject Location Item observation Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total Southern Lucena, Average rainfall (mm) 1949-75 108 61 59 66 117 172 205 185 238 332 351 324 2,218 Luzon Quezon Relative humidity (%) 1949-75 84 83 80 79 79 81 82 82 84 84 83 84 (Southern Mean temperature (OC) 1949-75 25.0 25.6 26.4 27.9 28.6 28.2 27.7 27.7 27.5 27.0 26.6 25.6 Luzon) Evaporation (mm) 1949-75 136 159 210 247 226 167 146 143 134 136 124 116 1,944 Number of typhoons 1949-75 1 0 0 0 4 5 1 1 0 7 11 6 36 Guinobatan, Average rainfall (mm) 1949-75 179 87 84 95 155 237 322 268 307 348 303 337 2,722 Albay Relative humidity (X) 1949-75 84 83 82 82 81 82 84 85 85 85 85 86 (Bicol) Mean temperature (OC) 1956-76 26.8 26.0 26.6 27.7 28.6 28.5 27.9 27.6 27.6 27.5 26.9 26.2 Evaporation (mm) 1956-65 136 159 210 247 226 167 146 143 134 136 124 116 1,944 Number of typhoons 1949-75 1 0 0 0 4 5 1 1 0 7 11 6 36 Western Iloilo Average rainfall (mm) 1947-73 57 32 31 43 156 254 383 354 281 250 202 109 2,152 Visayas City, Relative humidity (%) 1949-75 82 81 77 74 77 82 84 84 84 84 85 85 Iliolo Mean temperature (OC) 1949-73 25.7 26.0 26.8 28.1 28.6 27.9 27.4 27.2 27.3 27.2 26.9 26.2 Evaporation (mm) 1957-65 147 154 207 212 206 166 152 152 141 144 134 139 1,954 Number of typhoons 1948-74 0 1 0 1 0 0 0 0 0 1 3 1 7 Mindanao Cotabato Average rainfall (mm) 1956-75 100 115 116 149 252 237 163 168 163 230 191 131 2,015 City Relative humidity (%) 1949-65 80 79 77 79 82 84 84 84 84 84 83 82 Cotabato Mean temperature (IC) 1949-65 26.9 27.2 27.8 28.2 27.9 27.4 27.0 26.9 27.1 27.3 27.3 27.1 Evaporation (mm) 1957-75 156 153 170 175 164 149 140 153 15U 146 145 140 1,844 Number of typhoons 1948-74 0 0 0 1 0 0 0 0 0 1 0 1 3 Hinatuan, Average rainfall (mm) 1956-75 1,025 873 664 445 215 161 132 123 136 236 538 848 5,396 Surigao Relative humidity (%) 1949-73 90 89 89 88 87 87 86 85 86 86 88 90 del Sur Mean temperature (OC) 1949-73 25.5 25.5. 25.9 26.6 27.1 27.5 27.2 27.2 27.7 27.1 26.6 26.1 Evaporation (mm) 1949-73 146 145 160 165 158 145 138 155 148 147 140 132 1,779 General Average rainfall (mm) 1949-73 74 67 46 55 100 102 93 879 78 98 85 76 963 Santos, Relative humidity (%) 1966-73 77 75 76 77 82 83 84 84 83 82 82 80 South Mean temperature (OC) 1966-73 27.2 27.5. 28.1 28.6 27.9 27.2 26.9 26.8 27.0 27.3 27.3 27.4 Cotabato Evaporation (mm) 1958-70 200 191 217 229 215 181 177 190 189 193 189 176 2,347  - 4 - distribution pattern. The Southern Luzon and Western Visayas subproject areas lie in the same climatic zone, the winter and spring months (Jan. - May) are dry, while the summer and fall months are wet. There is considerable clim.,Lc variation within the Mindanao subproject; the southern part is dry with uniform monthly rainfall of about 80 mm throughout the year; the eastern part is relatively dry during summer and early fall (June-Oct.), while winter and early spring months are very wet; the central and western part is relatively dry during winter and early spring (Dec.-Apr.), while summer and fall months (May-Nov.) are wet. The rainfall, together with river flows in the wet season, is generally adequate for a single rice crop except in the southern part of Mindanao. Dry season cropping, however, entails a greater risk and irrigation is essential to ensure a crop. The Southern Luzon subproject areas are likely to be hit by about two typhoons per year with the highest frequency between October and December. The systems in Western Visayas and Mindanao subprojects are subject to an average of one typhoon every four or five years, with October to December as the most probable period of occurrence. Topography, Drainage and Soils 2.04 Although the project systems are scattered in three different geographical regions, the topographical characteristics appear to be more or less identical. The systems in the Southern Luzon subproject are all located in fertile coastal and interior plains. The slope of the land tends to be from north to south-east or south-west. The slope is steeper in the northern edges of the systems near the diversion sites, but it flattens out toward the sea with most of the area fairly level. The systems in Western Visayas are all situated in the coastal plain. While the land is generally flat, there are occasional ridges. The regional topography of Mindanao is basically rugged and mountainous. There are, however, vast flat plains in Central and Western Mindanao where most of the systems of the Mindanao subproject are located. Land is exceptionally flat in the Mindanao systems. Surface drainage in the Western Visayas area is generally good. In the systems of Southern Luzon and some areas of Western Visayas, there are some drainage problems particularly in the immediate vicinity of the coast and special provisions would be made to deal with them under the project. Drainage is inadequate throughout the Mindanao subproject systems and the Bicol region of Southern Luzon. The areas are interspersed by natural and man made swamps. Four systems in the Mindanao subproject are known to have high incidences of schistosomiasis. Special provisions would be made under the project to deal with the drainage problem and the consequent disease situation. 2.05 Soils in the Southern Luzon subproject area are extremely variable, but clay loams and loams of the San Manuel, Ligao, Castillo, Guadalupe and Quingua series predominate. With the exception of Guadalupe clay loam which is difficult to work, being sticky when wet and hard when dry, the other main soil types are loose and friable, with excellent drainage and good fertility. In the Western Visayas subproject area clays and loams of the Silay series are by far the most common soil type. These are of recent alluvial origin, gray to dark grayish brown, friable and loose, with a tendency to form a hard pan and poor external and internal drainage. In the Mindanao subproject area soils of the San Manuel and Kabacan series are dominant. The San Manuel soils are pale or grayish brown, loose and friable with excellent drainage,  -5- pH 6 to 7, and good fertility. The Kabacan series are dark gray to almost black, plastic, slightly compact clays and clay loams of alluvial origin. They are hard to work when dry and have poor internal drainage. All the soils are suitable for rice which has grown in all three subproject areas for many years without problems. With the exception of some limited areas in the Mindanao subproject where potash deficiencies have been found, all project soils are generally rich in both phosphate and potash, so that the main emphasis in fertilizer application would be on nitrogen. Land Tenure and Farm Size 2.06 Since 1972 the Government has pursued a program of agrarian reform aimed at the transfer of land ownership to tenant farmers on rice and corn lands. Presidential Decree No. 27 (PD 27), the basic legislation of the new program, provides for the transfer to the tenant, whether sharecropper or leaseholder, of up to 3 ha in an irrigated area and 5 ha in a rainfed area. According to PD 27, the landlord may retain up to 7 ha if he tills the land himself. Since there are some 2 million rice and corn farmers on about 4 million ha, of which less than 1 million ha are irrigated, there is little prospect of achieving the 5 ha rainfed and 3 ha irrigated family farms nation wide. The Department of Agrarian Reform (DAR) completed the issue of land transfer certificates to tenants for all lands in hold- ings over 24 ha in 1975. In November 1974, the Government decided to proceed with the transfer of land in holdings between 24 and 7 ha. In October 1976, the Government extended the provision of PD 27 to holdings of less than 7 ha, belonging to landowners with more than 7 ha of other agricultural land, or belonging to landowners with residential, commercial or urban land from which they derive adequate incomes to support themselves. At present it is not known how many landlords and tenants would be affected by the new legislation. 2.07 NIA surveys show that some 56,500 farm families, of which 11,500 are landless, averaging 5.6 members for a total of about 316,000 people, live in the project area. About 40% of the farmers are in the Mindanao subproject area and the balance is evenly split between the other two subprojects. The mean farm size is about 1.7 ha. There are, however, substantial differences between subproject areas and between various systems within a subproject area. In the Southern Luzon systems, the mean farm size is 1.3 ha, in the Western Visayas excluding sugarcane farms 1.4 ha and with sugarcane farms 1.8 ha, and in Mindanao 2.1 ha. The farm size distribution on 80,900 ha of project lands is as follows: Farm size No. of farms Area of farms (ha) ----------- % ------------- Less than 0.5 11 2 0.5 - 1.5 56 31 1.6 - 2.0 16 17 2.1 - 4.0 12 20 4.1 - 7.0 3 10 More than 7.0 2 20 Total 100 100  -6- In the Southern Luzon systems about 75% of the farms covering 50% of the area dLL below 1.5 ha, in the Westerm Visayas some 75% of the farms are under 1.5 ha but only account for 40% of the area, while the farm size distribution in the Mindanao systems shows 56% of farms under 1.5 ha covering 26% of the area. 2.08 DAR information on the land ownership and farm size distribution is summarized in Table 2.2. There is a considerable variation in the degree of skewness of land ownership in the subproject areas; the systems in Southern Luzon show the least inequality, with the Western Visayas and the Mindanao systems at the other extreme. Owner-operators accounted for 30% of the farmers and the remainder were all tenants. The largest proportion of owner operators is in the Mindanao systems where the largest farm sizes are found. The lowest proportion of owner-operators is in the Southern Luzon systems, where the farm sizes are smaller. The Western Visayas systems fall in the middle on both criteria. Although the Government proposes to complete the issue of land transfer certificates under the Agrarian Reform by the end of 1977, a more realistic target date would be end of 1978. Currently some 30,000 ha or 41% (ranging from 18 to 37%) of the project area are cultivated by about 13,000 owner-operators, the equivalent of 30% of the farmers. After completion of land reform some 48,000 ha, or 65% of the project area, will be cultivated by about 24,000 owner-operators, equivalent to 55% of the farmers (Table 2.3). The remaining 20,000 tenant farmers would operate under a written lease agreement. Existing Irrigation Facilities 2.09 Approximately 53,700 ha of land in the project area fall within the 26 existing systems operated by NIA through seven regional offices. The systems range in age from 7 to 50 years and in size from a minimum of 300 ha for three systems in the Southern Luzon subproject to a maximum of 16,000 ha for the Bago River System in the Western Visayas. Irrigation in the dry season is limited to some 31,200 ha, partly because of inadequate river flows, but mostly because of reduced canal capacities due to siltation and a lack of on-farm distribution facilities. The systems have suffered from insufficient maintenance due to lack of funds and equipment. They also have poor distribu- tion networks which make it impossible for the majority of the farmers to get water at the right time in the right amount. In addition, many systems lack access roads and movement of inputs and produce is difficult. There are drainage deficiencies in systems of the Southern Luzon and Mindanao subprojects due to insufficient collector drains and inadequate outlet conditions. Transportation 2.10 The presence of the Philippines-Japan friendship highway which passes through Southern Luzon and Mindanao contributes largely to the efficient movement of products and services. This national highway passes through or close to the 12 irrigation systems of the Southern Luzon subproject, thus interconnecting them with each other and with the provincial capital cities of Pila, Batangas, Daet, Naga and Legazpi. A national highway along  Table 2.2: LAND OWNERSHIP AND FARM SIZE DISTRIBUTION Southern Luzon Western Visayas Mindanao Project Owners Area Owners Area Owiiers Area Uwners Area No. % Ha % No. % Ha % No. % Ha % No. % Ha % Land Ownership by Size of Holding (ha) < 1.0 7,180 60 3,360 20 10,610 71 4,050 15 5,470 41 2,230 6 23,260 58 9,640 12 1.0- 3.0 3,590 30 5,880 35 2,990 20 5,400 20 4,270 32 7,790 21 10,850 27 19,070 24 3.1- 5.0 600 5 2,520 15 600 4 2,430 9 1,870 14 7,420 20 3,070 8 12,370 15 5.1- 7.0 240 2 1,510 9 150 1 1,350 5 670 5 3,710 10 1,060 3 6,570 8 7.1-24.0 340 2 2,350 15 450 3 5,940 22 980 7 12,620 34 1,770 4 20,910 26 24.1-50.0 20 .. 840 5 100 1 2,970 11 40 1 1,480 4 160 .. 5,290 7 > 50.0 .. .. 340 2 50 } 4,860 18 30 } 1,850 5 80 .. 7,050 8 Total 11,970 100 16,800 100 14,950 100 27,000 100 13,330 100 37,100 100 40,250 100 80,900 100 Average 1.4 1.8 2.8 2.1 Farm Size Distribution by Type and Size (ha) Rice farms < 0.5 1,700 13 500 3 2,420 17 620 3 680 4 150 .. 4,800 11 1,270 2 0.5-1.5 8,100 62 7,730 46 8,250 58 7,620 37 8,890 52 9,500 26 25,240 57 24,850 34 1.6-2.0 1,700 13 3,360 20 1,570 11 2,880 14 3,590 21 7,300 20 6,860 16 13,540 18 2.1-4.0 1,330 10 3,860 23 1,560 11 4,530 22 2,570 15 8,400 23 5,460 12 16,790 23 4.1-7.0 150 2 1,010 6 280 2 1,240 6 1,030 6 5,450 15 1,460 3 7,700 10 > 7.0 20 340 2 140 1 3,710 18 340 2 5,800 16 500 1 9,850 13 Total 13.000 100 16,800 100 14,220 100 20,600 100 17,100 100 36,600 100 44,320 100 74,000 100 Average 1.3 1.4 2.1 1.7 Sugarcane farms < 10.0 - - - - 342 58 896 14 79 76 200 40 421 62 1,096 16 10.0 - 25.0 - - - - 171 29 1,920 30 25 24 300 60 196 29 2,220 32 25.1 - 45.0 - - - - 10 2 256 4 - - - - 10 1 256 4 )5.1 - 65.0 - - - - 22 5 1,216 19 - _ _ - 22 3 1,216 18 65.1 - 85.0 - - - - 31 5 2,112 33 - - - - 31 5 2,112 30 Total - - - - 576 100 6,400 100 104 100 500 100 680 100 6.900 100 Average _ 11.1 4.8 10.2  Table 2.3: LAND TENURE OF RICE LANDS Southern Luzon Western Visayas Mindanao Project Tenure Farmers Area Farmers Area Farmers Area Farmers Area No. % Ha % No. % Ha % No. % Ha % No. % Ha % Existing (1975/76) Owner-operator 2,340 18 3,360 20 3,310 29 7,620 37 7,380 37 19,030 52 13,030 30 30,010 41 Leaseholder 5,200 40 6,890 41 2,850 25 5,770 28 7,180 36 10,250 28 15,230 34 22,910 31 Tenants 5,460 42 6,550 39 5,240 46 7,210 35 5,390 27 7,320 20 16,090 36 21,080 28 Total 13,000 100 16,800 100 11,400 100 20,600 100 19,950 100 36,600 100 44,350 100 74,000 100 Expected Post-Reform Owner-operator 2,340 18 3,360 20 3,310 29 7,620 37 7,380 37 19,030 52 13,000 30 30,010 41 Amortizing owner 3,000 23 4,000 24 4,000 35 6,750 33 4,250 21 7,300 20 11,250 25 18,050 24 Leaseholder 7,660 59 9,440 56 4,090 36 6,230 30 8,320 42 10,270 28 20,100 45 25,940 35 Total 13,000 100 16,800 100 11,400 100 20,600 100 19,950 100 36,600 100 44,350 100 74,000 100  - 9 - the western coast of Negros Island passes through the Bago System and a pro- vincial paved road links this highway to the Pangiplan system of the Western Visayas subproject. The remaining two systems in Western Visayas are connected to Iloilo City and each other through a coastal highway, which although designated as national road is in poor state. Ten of the Mindanao systems are interconnected with each other and major cities of the islands through as provincial roads. The road network of provincial and municipal roads is adequate in the Southern Luzon subproject. The Government has a long term plan to upgrade some of the existing limited network of largely unpaved provincial and municipal roads serving the subproject areas of Western Visayas and Mindanao. The project would increase the road network density by building additional farm roads, and O&M roads for the irrigation facilities. 3. THE PROJECT Project Description 3.01 The project proposed for Bank financing would include: (a) Irrigation Development (i) rehabilitation of 26 existing NIA irrigation systems serving a total area of 53,700 ha; (ii) construction of new irrigation, drainage and road facilities on about 27,200 ha of currently rainfed land adjoining these systems; (iii) construction of a subregional headquarters building, seven new field offices and extension of office, storage and staff quarters facilities for eleven existing field offices; and (iv) procurement of vehicles and equipment. (b) Schistosomiasis Control Program - Mindanao (i) improvement of existing drains and natural creeks and con- struction of new secondary and some farm drains covering a total area of about 22,000 ha; (ii) provision of project personnel and supplies to strengthen SCR's headquarters' staff, employ and equip field teams for snail surveys on four systems and to implement the health component of the project; (iii) provision of a health education program based in all schools and health centers in 11 disease-affected municipalities; (iv) establishment of a diagnostic screening campaign and chemotherapy for treatment of about 35,000 cases; and (v) procurement of vehicles and equipment.  - 10 - The project would also make provision for strengthening the O&M capabilities of the seven NIA Regional Offices covered by its activities; introducing an input-output monitoring program of selected systems under NISIP: I and NISIP: II; and initiating feasibility studies for three new irrigation projects. Project Works 3.02 Rehabilitation of Existing Systems. The improvements would include repairs to existing diversion structures and outlet works, construction and/or enlargement of canals and drains, repairs and modification of existing, and provision of new, water-regulating and delivery structures, and the construction of O&M, access and farm roads. General features of the improved irrigation systems would include additional canal structures such as checks, turnouts and installation of gates on existing canal structures to more effectively control water deliveries and to provide water more efficiently to each field as needed. Constant head orifice turnouts to sublaterals, or a water measuring and control device of an equivalent nature, would be provided for water deliveries to rotational areas of about 50 ha. Turnouts would be provided for each 10 ha unit from which farm ditches, constructed as part of the project, would convey water directly to most farms. In the Mindanao subproject area, nearly all farms would obtain water directly from a farm ditch; in the Southern Luzon and Western Visayas subproject areas, some farms would still receive water through their neighbors' fields. Farm drains would convey excess water from each 10 ha unit to the main project outlet drains in flat areas. For more steeply sloping areas, such as some Southern Luzon and Western Visayas subproject systems, where the land gradient in the direction of flow is in excess of 0.4%, the farms would drain from field to field, and consequently the intensity of farm and collector secondary drains would be somewhat lower. Canals would be unlined except for short length where the soils are erosive. Working stations for Water Management Technicians (WMT) would be provided for about each 500 ha of irrigated land in the project. The stations would provide space for temporary storage and drying of paddy. Gatekeeper quarters would be constructed at the major checks and turnouts of main canals and diversion sites for proper, safe and effective operation. 3.03 Gravel surfaced O&M roads would be constructed on the canal banks. Canals with a design flow greater than 5.0 cu m/sec, would be provided with a roadway 5 m wide on both banks, if the service area is on both sides of the canal, and on one bank where the canal serves the area on one side. Canals with capacities between 2.0 and 5.0 cu m/sec would be provided with a 3.5 m wide road on one bank. The roadway along waterways with capacities less than 2.0 cu m/sec and along some of the major farm ditches would be a nongravel, 2.0 m wide cycle or cart path. Access roads 5.0 m wide would also be provided as links between the existing major roads of the area and the canal O&M roads. These roads would also serve as farm-to-market roads. Gravel surfacing on some of the major existing farm-to-market roads would be provided. The surfacing of the roads would be 20 cm thick for 5.0 m wide roadways and 15 cm thick for a 3.5 m roadways. To allow continuous passage along the O&M roads, bridges and/or culverts across the existing drainage waterways would be  - 11 - built. However, on major streams or rivers, the O&M roads would be connected to existing bridges by short access roads instead of constructing expensive, multispan bridges. 3.04 The proposed level of on-farm distribution and drainage is similar to that being implemented in other Bank-assisted projects, and would be a substantial improvement on the present, practically nonexistent system. Due to smaller farm holdings, the density of farm ditches would be greater in the Southern Luzon subproject area and the density and depth of farm drains would be increased in four systems of the Mindanao subproject area to provide for control of schistosomiasis. Rice has been grown in the project area for many years and the land is reasonably level and generally well laid out so no land leveling would be required at this stage. The landholdings are small and somewhat fragmented in the Southern Luzon subproject, however a program of land consolidation and boundary realignment, while desirable, is unrealistic due to high population pressures on the land and local inheritance practices. No boundary realignment or land consolidation would be required in the Western Visayas and Mindanao subprojects. 3.05 Extension of Existing Systems. All of the extension areas, except the Ogsong system in the Southern Luzon subproject, the Sibalom-San Jose and Pangiplan systems in the Western Visayas subproject, and the Roxas and Padada systems in the Mindanao subproject would use existing diversion structures. The main canal, with related structures and outlet works, would be enlarged to carry the additional flow required for the extension areas of each system. New distribution, drainage, access and on-farm facilities would be built according to the standards and densities for rehabilitation works. 3.06 For the extension area of the Ogsong System in the Southern Luzon subproject, an ogee shape diversion weir, 22 m long, with a maximum height of 1.5 m above stream bed would be constructed. The Sibalom-San Jose system in the Western Visayas subproject is an old system built in 1926, whose main diversion works located on the Tipulan river about 600 m upstream from its junction with the Sibalom river consist of a trapezoidal concrete dam (170 m) with falling shutter section (60 m), which was completely destroyed forcing the construction of an upstream brush dam. Water shortage due to loss of head during the dry season is the most serious problem. To solve the water shortage at the main diversion works, it is planned to construct a new intake at the left bank of the Sibalom river about 12 km upstream from the junction with Tipulan river and a 12 km diversion canal between the proposed intake and the main diversion dam. The falling shutter section at the main diversion dam would be replaced by a concrete ogee section. The falling shutter section of the Pangiplan system in the Western Visayas subproject would also be replaced with a concrete ogee section about 30 m long and 1.0 m high. The Roxas system in the Mindanao subproject is served by three diversion works, located on the Maramag and Kuya rivers. The main diversion structure on the Maramag river is an ogee type concrete weir, whereas the other two diversion works on Kuya river are of brush dam type and supplement water to the main dam through diversion canals. The project would replace one of the brush dams with an ogee shape concrete weir to serve the extension area. Part of  - 12 - the extension area of the Padada System in Mindanao would be served by a new diversion weir of ogee shape about 20 m long and 1.0 m high on the Sacub creek. 3.07 Drainage Works for Schistosomiasis Control Program. Within the area of high endemicity in Mindanao the drainage network would be designed to return period. Drainage would take place in 48 hours and water depth in the rice fields would not exceed 30 cm during the 48 hours of detention. Main and secondary drains would be designed to carry flows at a minimum velocity of 0.5 m/sec. Gravel surfaced (20 cm thick) O&M roads 5.0 m wide would be constructed on one side of the main drains. Along the secondary drains the surfaced roadways (15 cm thickness) would be 3.5 m wide. Along the upper portion of secondary drains and along farm drains in the endemic area there would be a 2.0 m wide nonsurfaced road. 3.08 O&M Buildings. A subregional office would be established at Molave in Zamboanga del Sur in Region 11, as the proposed regional office at Zamboanga would be too far removed from the two irrigation systems of this region. The construction of subregional facilities would include offices, an infirmary, staff quarters, laboratory facilities, a warehouse and a workshop for repairs and maintenance of O&M equipment. Project headquarters buildings and other facilities would be expanded at Pila and Legazpi in the Southern Luzon subproject, Iloilo for Western Visayas subproject and Cotabato for the Mindanao subproject. Seven new field offices would be constructed, which are proposed to be located in the towns of Lagnas and Candelaria in the Southern Luzon subproject, Kalibu, San Jose and Bago in the Western Visayas subproject and Libangan and Hagonoy in Mindanao subproject. The existing offices, workshops and staff quarters, etc. are inadequate at the following locations and would be expanded under the project: (a) the field offices of the Agos, Palico, Dumacaa, Daet-Talisay- Matongdon, Mahaba-Nasisi and Cagaycoy Systems of the Southern Luzon subproject, located at or near the towns of Infanta, Nasugpu, Lucena, Daet, Ligao and San Jose, respectively; and (b) the field offices of the Salug, Roxas, Cantilan, Tingancan and Kabacan systems of the Mindanao subproject, located in or near the towns of Molave, Maramog, Madrid, General Santos and Kabacan, respectively. Water Supply, Demand and Quality 3.09 Water Supply. All irrigation systems obtain their water supply from one, two, three or four river sources, using their own diversion and conveyance system. The project would not develop additional irrigation supplies through construction of storage, but would improve and expand the area covered by 26 existing irrigation systems. About 70% of the project area would be supplied with water during the dry season. 3.10 Four irrigation systems in the Southern Luzon subproject area, one system in the Western Visayas subproject area and five systems in the Mindanao subproject area do not have any stream gauging at or near the diversion point, and the available data on seventeen streams of the remaining sixteen systems are discontinuous and in a few cases for short periods. For the ten ungauged systems, the long-term flows at each diversion point were  - 13 - developed by using the stream flow data of nearby river basins of similar physical characteristics and adjusting them on an area basis. Short term streamflow data were extended back to 1948 and up to 1973 by the use of rainfall records. The generated streamflows were found to be in reasonable agreement with the concurrent actual streamflows wherever available. For those systems, which have stream gauges located downstream of the diversion point, the available streamflows were adjusted for upstream withdrawals using the figures for the benefited area available for the period from 1966-1974. 3.11 Water Demand. About 47,300 ha are presently under irrigated rice cultivation in the wet season, out of which 31,200 ha are cropped to rice during the dry season. An additional 6,400 ha are under irrigated sugar cane cultivation. It was assumed that transplanted rice using 120-day nonphoto- sensitive varieties in both the wet and dry seasons would remain the dominant crop in the project. Water requirements for rice in the three subproject areas were based on the cropping calendars shown as Figures 5.1, 5.2 and 5.3. 3.12 Rice land preparation and nursery were estimated to take 30 days with water requirements for saturation, evaporation and percolation as shown in Table 3.1. Flooding requirements to provide a minimum depth of water in the field for cultivation in each season were estimated to be 20 mm immediately after transplanting, followed by additional 50 mm about two weeks later. Field percolation losses were estimated to be 2.0 mm/day. Evapotranspiration rates were taken to be equal to the observed Class A pan evaporation and effective rainfall was determined from observed daily rainfall records and allowing water depth to fluctuate with the growth of the rice plants and limiting maximum depth to 150 mm. The overall irrigation efficiency was estimated to be 43% in the wet season and 50% in the dry season at full development, based on farm irrigation wastes of 40% in the wet season and 30% in the dry season. The consumptive use of sugarcane was assumed to be a ratio of observed monthly evaporation at Pototan, Iloilo for the Western Visayas subproject. The following crop coefficients were used to obtain the consumptive use for sugarcane: State of Growth Crop Coefficient Planting - 3 months 0.5 3-4 months 0.8 4-7 months 1.0 7-9 months 0.75 The effective rainfall was computed on the basis of daily rainfall records at Pototan and soil moisture capacity assumed as 30 mm for the first two months after planting and 50 mm for the remaining period. An overall irrigation efficiency of 50% was used to derive diversion requirements for the sugarcane. 3.13 Seasonal and total annual diversion requirements are developed in Table 3.1. Monthly water requirements of the three subprojects for the rice and sugar cane crops are shown in Annex 4. Monthly water requirements and average river flows for those systems where water supply would be a signifi- cant constraint are shown in Table 3.2. Annual diversion requirements are  Table 3.1: PROJECT WATER REQUIREMENTS SUMMARY (mm) Mindanao suboro lect All systems except Southern Luzon subproject Western Visayas subpolect Cantilan, Salug Southern Tagalog systems Bicol systems All systems and Tingacan Cantilan system Tingacan system Salug system First Second Annual First Second Annual First Second Annual First Second Annual First Second Annual First Second Annual First Second Annual crop crop crop crop crop crop crop crop crop crop crop crop crop crop Paddy Land preparation Saturation 70 80 150 80 70 150 75 50 125 70 80 150 60 70 130 80 90 170 70 80 150 Evaporation 170 180 350 170 180 350 175 225 400 170 180 350 150 150 300 180 190 370 170 1R0 350 Percolation 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120 Subtotal 300 320 620 310 310 620 310 335 645 300 320 620 270 280 550 320 340 660 300 320 620 Flooding for cultivation 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140 Crop water requirements Evapotranspiration 476 361 837 390 383 773 445 453 898 425 440 865 483 416 899 552 521 L,n73 424 472 896 Deep percolation 180 180 360 180 180 360 184 185 369 180 180 360 180 180 360 180 180 360 180 180 360 Subtotal 656 541 1,197 570 563 1,133 629 638 1,267 605 620 1,225 663 596 1,259 732 701 1,433 604 652 1,256 Total field water requirement 1,026 931 1,957 950 943 1,893 1,009 1,043 2,052 975 1.010 1,985 1,003 946 1,949 1,122 1,111 2,233 974 1,042 2,016 Less effective rainfall 533 651 1,184 494 482 976 820 221 1,041 482 381 863 791 568 1,359 239 184 423 596 248 844 Net form irrigation requirement 493 280 773 456 461 917 189 822 1,011 493 629 1,122 208 382 590 883 927 1,810 378 774 1,172 Farm irrigation efficiency (2) 60 70 - 60 70 - 60 70 - 60 70 - 60 70 - 60 70 - 60 70 - Farm requirement (turnout) 822 400 1,222 765 664 1,429 315 1,174 1,489 822 899 1,721 344 546 890 1,473 1,325 2,798 662 1,136 1,808 Conveyance efficiency (X) 80 80 - 80 80 - 80 80 - 80 80 - 80 80 - 80 80 - 80 80 - System operation efficiency (2) 90 90 - 90 90 - 90 90 - 90 90 - 90 90 - 90 90 - 90 90 Diversion requirement (headworks) 1,143 557 1,700 1,070 928 1,998 432 1,639 2,071 1,144 1,252 2,396 470 755 1,225 2,045 1,840 3,885 875 1,536 2,512 Overall irrigation efficiency 43 50 45 43 50 46 43 50 49 43 50 47 43 50 46 43 50 47 43 50 47 Water duty for diversion & conveyance facilities 9 2001 cropping intensity (1/s/ha) 1.40 1.40 1.50 1.30 1.20 2.00 1.40 Sugarcane Evapotranspiration 1,442 Less effective rainfall 842 Net farm irrigation requirement 600 Overall irrigation efficiency (2) /a 50 Diversion requirement (headworks) 1,200 /a Estimated efficiencies - farm 70%, conveyance 80% and system operation 902.  C C CC C C C C C C I*I C C C IC C CC C C H C C CC C C C I 0 0 0 0 0 II CC- CHc CCC CC- -CC '-'C C -C -" C -"CC CC C C. 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