Tunisia - Southern Irrigation Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-2681-TUN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTIOI AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PXOPOSED LOAN REPUBLIC OF TUNISIA FOR A SOUTHERN IRRIGATION PROJECT December 26, 1979 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its centents may not otherwise be disclosed without World Bank authorization.  Currency Unit Tunisian Dinar (TD) The exchange rate of the Tunisian dinar is floating. The rate used in the staff appraisal report, which approximates the current rate, is: US$ 1 - TD 0.408 TD 1 - US$ 2.45 WEIGHTS AND MEASURES 1 meter (m) - 3.28 feet (ft) 1 kilometer (km) - 0.62 miles (mi) 1 sq. kilometer (km2) - 0.386 sq. miles (mi2) 1 hectare (ha) - 2.47 acres (ac) 1 kilogram (kg) - 2 20 pounds (lbs) 1 metric ton (m ton) - 2,205 pounds (lbs) Fiscal Year January 1 to December 31 Abbreviations BNT Banque Nationale de Tunisie (National Bank of Tunisia) CI Continental Intercalaire (Continental Intercalary Aquifer) CLCM Caisse Locale de Credit Mutuel (Mutual Credit Bank) CNEA Centre National des Etudes Agricoles (National Agriculture Studies Center) CRDA Centre Regional de DEveloppement Agricole (Regional Agricultural Development Agency) CT Complexe Terminal (Complex Terminal Aquifer) DRES Direction des Ressources en Eaux et en Sols (Water and Soil Resources Agency) FOSDA Fonds Special de Developpement Agricole (Agriculture Development Fund) GR Genie Rural (Rural Development Department of the Ministry of Agriculture) OEP Office de l'Elevage et des Paturages (National Livestock and Range Agency- Existing) OMIVAN Office de Mise en Valeur du Nebbana (Nebhana Development Agency - Existing) OMVD Office de Mise en Valeur du Djerid (Djerid Development Agency - New) OMVG Office de Mise en Valeur de Gabes (Gabes Development Agency - New) OMVL Office de Mise en Valeur de Lakmes (Lakmes Development Agency - Existing) OMVVM Office de Mise en Valeur de la VallEe de la Medjerda (Lower Medjerda Development Agency - Existing) OPPIJ Office des Pgrimatres Publics Irrigues de Jendouba (Jendouba Public Irrigation Areas Development Agency - Existing) OTC Office de la Tunisie Centrale (Central Tunisia Development Agency) OTD Office des Terres Domaniales (State Land Management Agency) STEG SociEtE Tunisienne de 1'Electricite et du Gaz (Tunisian Electricity and Gas Company) STIL Socigte Tunisienne de l'Industrie Laitiere (Tunisian Company for Milk Industry)  FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA SOUTHERN IRRIGATION PROJECT Loan and Project Summary Borrower: Republic of Tunisia Amount: US$25.0 million Term: The loan would be repayable in 17 years, including a 6-year grace period; interest would be at 7.95 percent per annum. Project Description: The proposed project would support Government's investment program of the Master Plan for Water Resource Development in Southern Tunisia by developing the groundwater resources of the region with a view to increasing the production of dates (mostly for export), vegetables and forage, improv- ing the living standards of the smallholders in the exist- ing oases and providing employment opportunities for farm labor in the new oases. It would consist of: (i) rehabi- litation of 7 existing oases on about 3,000 ha in the Djerid, Nefzaoua and Gabes areas; (ii) creation of 9 new date palm plantations and date palm/forage plantations on 2,100 ha in the Djerid and Nefzaoua areas; (iii) creation of a date processing facility; and (iv) provision of equip- ment, facilities and personnel for agriculture services, research and technical assistance (60 man-months). About 5,100 small holders or about 30,600 people, mostly in low- income groups would benefit from the project. In addition, improved income opportunities would be provided to about 1,100 permanent workers and about 114,000 man-days of seasonal work would be created. The main risk involved in the project would result from a gradual increase in water salinization throughout the project areas due to the water resource development. This would not affect agricultural development but potable water for the local population in certain locations might not meet acceptable drinking standards. This document has a restricted distribution and may be used by recipients only in the performance of their ofcial duties. Its contents may not otherwise be disclosed without World bank authorization.  Estimated Cost: Local Foreign Total