Mauritania - Gorgol Irrigation Project

Document of The World Bank FILE COPY FOR OFFICIAL USE ONLY Report No. P-254 la-MAU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE ISLAMIC REPUBLIC OF MAURITANIA FOR THE GORGOL IRRIGATION PROJECT August 21, 1980 This docuent bas A restricted distribution and way be used by recipients only In the perfonrmnce of their offichd duties. Its contents may not otherwise be disclosed without World Bak autherizatl.n.  CURRENCY EQUIVALENTS Currency Unit = Ouguiya (UM) US$1.00 = UM 45.00 UM I million - US$22,222 WEIGHTS AND MEASURES Metric System ABBREVIATIONS BMDC - Banque Mauritanienne pour le Developpement et le Commerce GPD - Gorgol Project Directorate FAC = Fonds d'Aide et de Cooperation FED F Fonds Europeen de Developpement IFAD - International Fund for Agricultural Development KfW - Kreditanstalt fur Wiederaufbau OPEC = Organization of Petroleum Exporting Countries OMVS - Organisation pour la Mise en Valeur du Fleuve Senegal SONADER Societe Nationale pour le Developpement Rural ISLAMIC REPUBLIC OF MAURITANIA FISCAL YEAR January 1 to December 31  FOR OFFICIAL USE ONLY ISLAMIC REPUBLIC OF MAURITANIA GORGOL IRRIGATION PROJECT Credit and Project Summary Borrower: Islamic Republic of Mauritania Beneficiary: Societe Nationale pour le Developpement Rural (SONADER) Amount: SDR 11.4 million (US$15.0 million) equivalent Terms: Standard IDA terms Relending Terms: Grant Project Description: The Gorgol project would develop 3,620 hectares by gravity irrigation for rice, maize, sorghum, and some vegetable cultivation. At full development in 1996, it would produce 26,800 tons of cereal and would settle 4,640 families (28,000 people), providing employment to about 14,000 people. The project works would comprise construction of a concrete dam (Foum el Gleita), a convey- ance canal, irrigation and drainage networks, service roads, and buildings. The project would also include technical assistance, extension services, farm inputs and equipment, and the creation of 15 villages. It would be implemented by SONADER, a Government rural development agency established in 1975 with IDA assistance. The project would form a nucleus of development in the southeastern part of the country, with an estimated three-fold increase in the present US$50 per capita income derived from agriculture. It would also bring foreign exchange benefits since its total production would represent 50 percent of the present annual import of cereals in normal years. Because the project is the first large irrigation scheme of its kind in Mauritania, there are some risks. In particular, there may be delays in introducing new technology and in recruiting farmers and settling them. The risks are limited, however, by the adoption of a realistic pace of development, and by the measures taken to strengthen SONADER. Estimated Cost: The total cost is estimated at US$93.2 million equivalent, of which about US$67.0 million (about 72 percent) would be foreign exchange. The project would be exempted from identifiable taxes and duties. A summary cost table is shown on the following page: This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Local Foreign Total ---US$ million------- (rounded) INVESTMENT 1. Dam 2.7 12.0 14.7 2. Irrigation works Contract 5.1 20.2 25.3 Force Account 1.8 3.4 5.2 3. Buildings 2.5 1.3 3.8 4. Rice mill 0.2 0.9 1.1 5. Vehicles and farm equipment 0.3 1.6 1.9 6. Supervision 0.9 0.7 1.6 TOTAL INVESTMENT 13.5 40.1 53.6 OPERATING COSTS 1. Salaries Local 2.4 - 2.4 Expatriate 1.3 3.2 4.5 2. Agricultural inputs 0.4 1.3 1.7 3. Other operating costs 0.6 2.3 2.9 TOTAL OPERATING COSTS 4.7 6.8 11.5 REFINANCING OF CREDIT S-16 MAU - 0.5 0.5 TOTAL PROJECT COST 1/ 1. Base 18.2 47.4 65.6 2. Physical contingencies 2.2 5.7 7.9 3. Provision for price - increase 5.8 13.9 19.7 TOTAL 26.2 67.0 93.2 1/ Project cost is given net of taxes as Government has agreed to exempt the project from all import duties and other identifiable taxes. Tentative Financing Plan: Institutions US$ million Percentage 1. Abu Dhabi Fund 6.4 7 2. FAC 5.4 6 3. FED 16.3 17 4. IDA 15.0 16 5. IFAD 10.0 11 6. Islamic Dev. Bank 6.0 6 7. KfW 8.0 9 8. Libya 10.0 11 9. Saudi Fund 10.0 11 10. Government 3.2 3 11. Farmers 2.9 3 TOTAL 93.2 100  - ii~i - Estimated Disbursements: FY81 FY82 FY83 FY84 FY85 FY86 --------------(in US$ millions)