Sri Lanka - Major Irrigation Rehabilitation Project

Ile Wodd Bank FOlt OFMCL USE ONLY C . 3S-3p- C' * ~qust Ne. P-3903-CE REPORT AND RECO ON OF TEE PRESIDENT OF TEE INTERNATIONAL DEVELCPT ASSOCIATION TO TrEE EXECUTIME DIRECTORS ON A PROPOSED CREDIT OF SDR 17.0 ETILLION TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A MAJOR IRRIGATION REHABILITATION PROJECT November 29, 1984 Thi d~ua bamha a restdct disb&ludlm and may be mud by reciiuufs only in the peufsmauc of ther aEiad d.t ft comats may " edhrwise be di_osed witou Wed Bumk atodwadm  CURRENCm EVALENTS US$1.90 = SL Rs 25.20 SL .e 1.00 US$0.0397 UNITS AlNl EOUIVALUTS 1 hectare (ha) = 2.47 acres 1 kilogram (kg) = 2.2046 pounds (lb) 1 metric ton (Mt) 1.0161 long tons (1 ton) A3BREVIATIONS AND ACRONYMS CIDA - Canadian International Development Agency DA - Department of Agriculture - DAC - District Agricultural Committee DAS - Department of Agrarian Services ID - Irrigation Department 3111 - International Irrigation Management Institute DlM - Division of Irrigation Management INMAS - Program for Integrated Management of Major Irrigation Systems LCD - Iand Commissioner-s Department NCR - Million Cubic Meters MLDT - Ministry of Lands and Land Development PSA - Project Special Account SDC - Swiss Development Cooperation FISCAL YEAR January 1 - December 31  FOR OmCIL USE ONLY SRI LAA NAJOR IRRIGATION RERABUIIT&TION PROJECT Credit and Proiect Summary Borrower: The Democratic Socialist Republic of Sri Lanka Amount: SDR 17.0 million (US$17.0 nillion equivalent) Terms: Standard Project The proposed project seeks to increase agricultural Description: production on land commanded by seven selected major irrigation systems by (a) rehabilitating seven existing irrigation systems serving a total area of about 46,000 hectares; (b) introducing an inte- grated management program to ensure proper operation and maintenance of the systems and distributien of irrigation supplies; Cc) strengthening support services provided by various government agencies; and (d) making provision for monitoring and evaluation of project execution and performance. The major project benefits would be higher crop production, improved Vate; dis- tribution, and better water management. The project would promote an incremental production of 73,800 tons of paddy; 6,200 tons of soya; and generate about 3,000 new jobs during the execution period. The project has no technical risk, but faces a general risk from possible failure to implement the proposed water management improvements. |is document has a resrted distibuton and may be used by recipients only in the perfonnance of | thcir official dus. Its contents may not otherwise be disdowed without World Bank authorizaton.  -ii- (US$ Million Eanivalent) Estimated Cost: {aLocal Forejn Total Civil. Works 19.0 11.2 30.2 Equipment and Vehicles 1.8 6.6 8.4 Technical Assistance and Training 1.3 0.4 1.7 Administration 2.9 0.0 2.9 Total 25.0 18.2 43.2 Finaucina Plan: (US$ Million Equivalent) Local Foreign Total IDA 7.2 9.8 17.0 Government 1'.8 0.0 11.8 CIDA 1.6 5.2 6.8 SDC 4.4 3.2 7.6 Total 25.0 18.2 43.2 Estimated Disbursements: (USS Million Equivalent) IDA FY 1985 1986 1987 1988 1989 1990 1991 Annual 0.4 2.4 4.2 3.2 2.6 2.2 2.0 Cumulative 0.4 2.8 7.0 10.2 12.8 15.0 17.0 Rate of Return: 16 percent Staff Appraisal Report: No. 5231-CE, dated November 6, 1984 ___S_ IBRD No. 18021, 18022 /a Includes taxes and duties of about US$2.6 million equivalent.  INTERNtAIONAL DEVELOPHENT ASSOCIATION REPORT AND RECONMEUDAXIOR OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDITr TO THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR A MAJOR IRRIGATION RFRA3ILITATION PROJECT 1. I submit the following report and reconmendation for a proposed credit of SDR 17.0 million (US$17.0 million equivalent) to the Democratic Socialist Republic of Sri Tanka to help finance a Major Irrigation Rehabilitation Project on standard IDA. terms. Cofinancing arrangements bave been made with the Canadian International Development Agency (CMnA) for a grant equivalent to US$6.8 million and with the Swiss Development Cooperation (SDC) for a grant equivalent to US$7.6 million. PART I - THE ECONOMY 1/ 2. A country economiz memorandum, "Sri Lanka: Recent Economic Developments, Prospects and Policies" (Report No. 5038-CE dated May 4, 1984), was distributed to the Executive Directors on May 13, 1984. Country data are provided in Annex I. 3. After several years of relative stagnation, Sri Lanka's economy has experienced sustained growth. This growth has been the direct result of the economic liberalization of 1977 and a significant growth in foreign as:istance. Until 1977, Sri Lanka-s growth performance had been below both need and potential. Although the 4.4Z annual GDP growth in the 1960s was above the average for low-income countries, it slackened sharply in the 1970-77 period to 2.9Z per annum, just below the average for low-income countries. Through much of this period, the terms of trade deteriorated steadily, eroding even these modest gains. The slowdown in econom.c growth in the 1970-77 period was attributable to a combination of factors, including inadequate investment, poor management of the economy, and a policy environ- ment not conducive to growth and investment; these difficulties were con- pounded by poor weather in some years and a sharp rise in the cost of imported food and petroleum. 1/ This part is substantially the same as Part I of the President's Report on the Nahaveli Ganga Development Project IV for Sri Lanka (Report No. P-3821-CE), that was approved by the Executive Directors on June 7, 1984.  -2- 4. In sharp contrast to this poor economic performance, Sri Lanka's social achievements in relation to per capita income have been outstanding. By virtually all social indicators-life expectancy, literacy, infant mortality, birth rate, nutrition levels-Sri TLaka ranks significantly better than other countries at its per capita income level. These improvements in the quality of life, in particular the rise in health standards, the spread of education and the availability of subsidized food, have been important factors in the decline in mortality. The increasing age of marriage, the spread of female education and employment, and a family planning program also have contributed to a sbarp decline in fertility. As a conseouence, popula- tion growth, net of migration, has dropped steadily, from 2.7Z per annum in the 1953-63 period to 2.2Z per annum in the 1963-71 period, and to 1.7% per annum during 1971-81. 5. However, the Government financed both its investment and social expenditures largely through the extraction of the surpluses of the three major tree crops (tea, rubber and coconut), which traditionally have fur- nished easy sources of revenue and foreign exchange. These surpluses began to decline in the late 1960s as government export tax policies discriminated against tree crops and export unit prices weakened. With the growth in other productive sectors declining in the 1970-77 period, the budgetary resources available for social programs were squeezed between inelastic revenues and rapid inflation. As a consequence, expenditures for social services other than the food subsidy declined as a-proportion of total current expenditures and of GDP, threatening the hard-won gains in health and education. In short, the economy could no longer generate the resources needed to sustain the large program of welfare expenditures. Moreover, the very size of those programs reduced the scope for policy makers to shift resources to development. 6. In 1977, a package of policy measures was introduced in order to break this vicious circle. In an attempt to liberalize the economy and allow a greater role for the private sector, the new Government introduced, in close consultation with the INF, policies designed to (a) reduce sovernment intervention in commodity markets, (b) reduce government consumption sub- sidies to assist in restoring producer incentives and public savings, and (c) create a favorable environment for private (foreign and domestic) invest- ment by tax concessions, the creation of an Investment Promotion Zone, and the unification and depreciation of the exchange rate. Two of the more important positive consequences of this policy reform package were that the burden of selected subsidies and transfers fell from around 1OZ of GDP in 1977 to around 3% by 1981, and that the periodic increase in the domestic support price for paddy in line with world price trends resulted in a highly positive producer response in rice. 7. In addition to these policy reforms, the Government also embarked on an ambitious public investment program. As the Government responded to the increased availability of resources (from domestic and foreign sources) to tackle long overdue investments, the Government-s capital expenditure jumped from 6X of GDP in 1977, to an average of 13% in 1978 and 1979, peaking at 19Z in 1980, and subsequently declining to an average 14% over the period 1981 to 1983. At the center of the Government-s investment plan were three major new undertakings: (a) the accelerated implementation of the Nahaweli Ganga Development Program, the largest multipurpose river basin development  -3- program ever undertaken in Sri Lanka; (b) the establishment of a 200 square mile free trade zone north of Colombo near the international airport, aimed primarily at attracting foreign investors; and (c) a massive housing and urban renewal program with its main focus on the Colombo metropolitan region, including the construction of a new capital complex at Kotte, a suburb of Colombo. = 8. The initial result of both the policy reforms and increased level o. investment was an impressive jump in the GDP growth rate to an average 6.8Z per amnum for the period 1977-80 declining to 5.3% in 1980-83. The major activities which accounted for most of this increased growth were paddy production, garment exports, tourism and the service sector. Paddy produc- tion has averaged an annual 5.7% real growth rate since 1977, resulting in a decline in rice imports from an average 33Z of total rice consumption during 1970-77 to only 12% during 1978-83. Manufactured garment exports have increased from US$12 million in 1977 to US$197 million in 1983, raising their share of non-petroleum manufactured exports from 41% in 1977 to 76% in 1983, whereas tourist arrivals have increased from 153,665 in 1977 to 407,230 in 1982, with a setback to 337,342 in 1983 due to ethnic disturbances during July. 9. However, some of the basic structural weaknesses within the economy have not been addressed. With respect to directly productive activities, three subsectors have continued to perform poorly; i.e., the tree crop sector, public manufacturing enterprises and non-traditional exports. The volume of output from the centrally important export-oriented tree crop sector has continued to decline. The public manufacturing enterprises inherited by the present Government, which account for approximately 40X of the value added in the non-petroleum manufacturing sector, continue to util- ize resources inefficiently thereby reducing the overall growth rate in manufacturing. And, lastly, the real growth of non-traditional exports has been fairly low and erratic. Underlying the poor performance of these sectors are two principal factors: poor management of publicly owned enterprises and an overall incentive framework which offers high and uneven levels of effective protection with a general bias against export activities. Moreover, as the exchange rate has not been fully adjusted in a systematic way since 1977 so as to compensate for the high levels of domestic inflation, the incentive to invest in the production of traded commodities has been reduced in favor of non-traded goods. 10. In addition to these distortions in the incentive framework and the inefficient management of publicly owned assets, the Government's budgetary policy has been a major source of macro financial instability, particularly over the past few years. As a share of GDP, budgetary spending increased sharply from 23Z in 1977 to a record 43% in 1980, subsequently declining but still remaining at 32% in 1983. Although initially much of this increased expenditure was accompanied by a corresponding inflow of foreign concession- ary capital which was linked to the public investment program, the need to resort to domestic or comercial foreign financing increased. In addition, the Government-s efforts to mobilize additional domestic resources fell short of what was required. Due to falling volumes and prices in the tree crop sector and an insufficient effort to widen the tax base away from traditional sources, the Government became increasingly reliant on ad hoc taxation measures to maintain existing revenue levels. The large growth in spending  -4- coupled with large inflows of foreign savings and a weak domestic revenue effort has resulted in large budget deficits which peaked at the equivalent of 232 of GDP in 1980 and still amounted to 15Z of GDP in 1983. In response to the increasing domestic deficits, current spending has been squeezed. Although the reduction in subsidies are welcome, the limits placed on both public sector salaries and operation and maintenance expenditure are begin- ning to impose significant costs on the economy in terms of recruitment/ performance in the public sector and the efficient use of the existing publicly-owned capital stock. Even so, savings on the budgetary current account have remained negative from 1979 to 1983. In swmmary, despite impressive donor support for the country-s development programs, equivalent to 7.3% of GDP during 1981-83, the high level of public expenditure has meant that only 45Z of the overall deficit was financed by concessionary flows during these three years with about 10% being covered by foreign commercial borrowing and the remaining 45Z through domestic borrowing. 11. The rapid expansion in investment and general economic activity has been reflected vividly in the balance of payments. Import volumes grew at an average annual rate of 18.8Z between 1977 and 1980, with investment goods increasing from USS83 million to US$493 million and intermediate goods and petroleum imports tripling in current prices over the same period. This fairly broad-based expansion in imports resulted in the share of merchandise imports as a percent of GDP increasing from 23% in 1977 to 51Z in 1980. Export volumes, however, expanded at a much lower rate (an average annual growth rate of 4.7% between 1977 and 1980) with the decline in tree crop export volumes offsetting the strong growth in garment exports from new firms established in the Investment Promotion Zone. As a consequence, merchandise exports increased as a share of GDP from 21% in 1977 to only 26% in 1980. These adverse trade volume trends were accompanied by a 26% terms of trade deterioration over the same period. The rapid growth in tourism receipts and private remittances from abroad in this period failed to offset the deterioration in the trade account, and the current account deficit deteriorated from a positive 2.4% of GDP in 1977 to a record 19.8% deficit in 1980. Although the deficits in 1978 and 1979 were more than offset by increased net aid disbursements, even to the extent that Sri Lanka could continue to add to net international reserves, by 1980 the situation had changed. In the latter year net international reserves fell by US$220 million and the public sector began to make increased use of commercial financing. 12. Since 1980, the external deficit has mirrored the erratic movements of the budget deficit. Realizing in 1981 that a continuation of the 1980 trends would result in serious financial instability, the government began to take corrective measures, mainly in the form of tighter overall monetary expansion, a substantial reduction in government spending and a gradual realignment of the exchange rate as part of a new IMF program. Although these measures were beginning to show results by the end of 1981 (the current account deficit in the balance of payments had declined to 13.7% of GDP and the budgetary deficit to 15.6%), the political resolve to continue to apply the needed policy mix weakened in 1982 due in large part to the Presidential elections and the subsequent referendum to extend the life of Parliament. As a result, both the external and internal deficits increased in 1982 (to 15.3Z and 17.3%, respectively) and the overall growth rate declined to 5.1% (the lowest since 1977). Due partly to a continuation of this election process in  -5- response to post-referendum criticism and partly to the subsequent attempts to find a solution to the continuing ethnic problems, the Government has continued to accord priority to the pressing political/social issues. Although policy measures did contribute to the decline in the current account deficit in the balance of payments to 12.4% of GDP in 1983, the estimated 14% improvement in the terms of trade was the primary factor. By the end of 1983, net international reserves were slightly negative, gross official reserves equal to about two months of imports, and the debt service ratio continued to increase (para. 16). In addition, as a result of the budgetary deficit and some movement in the exchange rate, inflation accelerated to an average 14Z during 1983 and the GDP growth rate fell to 4.9x. 13. While the 1983-84 terms of trade improvement is giving the economy some breathing space, the need for basic structural change has not diminished, particularly the tree crop and manufacturing sectors. Therefore, to avoid the consequences of an abrupt downward adjustment in aggregate demand which is likely to follow from a continuation of past policies, one of the priority objectives of government policy should be to restructure the economy away from producing for the very limited domestic market towards exports. The basic thrust of the required policy package would be to move towards a more neutral incentive framework which would permit the full diver- sity of Sri Lanka's particular comparative advantage to develop. However, in the short run, the implementation of such a policy package may not be suffi- cient because, firstly, the capacity of the economy to respond to a changed set of incentives may be limited and, secondly, the non-policy-related con- straints to economic growth (such as the basic infrastructure and imperfect credit markets) will continue to require the careful attention of Government. 14. Although the uncertain political situation continues to constrain the Government's ability to adopt a comprehensive economic policy package, recent measures demonstrate that the Government is both aware of the medium- term problems and capable of implementing some of the required reforms. To illustrate, a program of management and incentive reforms in the tree crops sector has been initiated, and the Presidential Tariff Commission should present recommendations designed to reduce the overall anti-export bias of the incentive structure to Parliament this year. Furthermore, the revised 1984 budget does imply a further reduction in the budgetary deficit and the Government has pledged to continue to reform its tax base so as to increase domestic resource mobilization. Also, there have been encouraging institu- tional developments affecting the budgetary management. A comprehensive inter-ministerial exercise is ongoing, designed to ensure adequate expendi- tures on O&M which, starting in 1985, will appear explicitly as a separate category of spending in the budget. Also the Cabinet has laid down criteria for project selection for inclusion in future public capital budgets which should remedy a major weakness. Actual implementation of these measures would improve coordination among the multitude of ministries, and represent an important step forward in budgetary management. Nevertheless, continued strong measures will be required in order to curtail the size of the budget deficit and redirect public investment into those areas where it is most efficiently used. Given the rapid build-up of the country's capital stock since 1977, the highest return probably centers around complementary invest- ments to the existing infrastructure plus a few selected new projects in those long-gestating activities (e.g., power) which, at this time, are appropriate for public sector investment. If these actions are taken,  -6- together with measures designed to remove the policy-related distortions which constrain efficient production decisions, the economy could stabilize and continue to grow at the level attained in the recent past. 15. The aid community has responded enthusiastically to the Government's development efforts in recent years. Most of the growth has come in project aid, reflecting the Government's efrorts to increase investment, particularly in the Accelerated Mahaweli Program. The overall level of aid commitments increased from US$250 million in 1977 to a record US$814 million in 1981, equivalent to US$55 per capita. Disbursements grew much more slowly and there was a rapid build-up of the aid pipeline to around US$1,630 million by the end of 1981. With the need to curtail public capital spending during 1982-83, both because of implementation and domestic financial constraints, commitments declined to US$550 million in 1982 and US$370 million in 1983, halting further increases in the pipeline. Aid disbursements have grown steadily, from US$200 million in 1977 to US$450 million in 1983, or close to US$30 per capita. The slow growth of disbursements relative to commitments through 1981 can be explained largely by two factors: the rapid acceleration in aid commitments themselves which proved to be beyond the country's absorp- tive capacity, and the relative shift over time from food and commodity aid towards slower disbursing project aid. Continued high levels of aid will depend upon donors' ability to finance a sizeable portion of local costs, to provide supplementary financing for ongoing projects where needed and to increase non-project aid, as well as upon Government's ability to make effec- tive use of the assistance. The Government will need to maintain donor confidence in its economic policies and management through a continued vigorous domestic resource mobilization program and continued restraint in government exp2nditures as the budgetary situation remains tight. Local cost financing, in support of Sri Lanka's own resource mobilization efforts will not only provide valuable relief from these budgetary pressures but also supplement foreign exchange resources needed in support of the balance of payments. 16. External public debt outstanding and disbursed stood at an estimated US$2,205 million at the end of 1983, amounting to about 46Z of GDP. Although a greater part of this debt is on concessional terms, the increased resort to commercial finance during 1981 and 1982 has contributed to the debt service ratio increasing from 10.1% in 1982 to 11.9% in 1983 excluding IMF charges and repurchases. Even though record tea prices in recent months continue to maintain Sri Lanka's export earnings at a high enough level to enable it to reduce its dependence on commercial finance in the near term, any deteriora- tion in the terms qt trade would rapidly reverse the situation. However, the Government has taken measures to reduce the budget deficit and is actively considering policy measures designed to stimulate exports and efficient import substitution activities. If the Government continues to make progress along these lines, the current account deficit in the balance of payments should decline to approximately 7Z towards the end of the decade with the debt service ratio declining to below 15% in 1990 after temporarily rising to almost 17% due to existing debt repayment commitments.  -7- PART II - BANK GROUP OPERATIONS 17. Since the beginning of its operations in Sri Lanka in 1954, the Bank Group has approved 10 loans totaling US$127.7 million (net of cancellations) and 36 credits totaling US$695.6 million (net of cancel- lations) in support of 43 projects. About 52Z of Bank Group assistance has been for agriculture (irrigation, agricultural, and dairy development), 23% for power, 10% for transport, and the remainder of 15Z among development finance company operations, a program crodit (mainly involving the import of raw materials for industry), water supply, construction industry, telecommunications, and small and medium industries. Eight loans and 13 credits have been fully disbursed so far. This is the first Sri Lankan operation to be presented to the Board in FY85. Annex II contains a summary statement of Bank Group operations as of September 30, 1984. 18. In Sri Lanka, the IFC has a total investment of US$2.13 million equivalent in equity and US$16.74 million equivalent in loans. Investments have been made so far in two textiles industries, one polypropylene bag industry, one equipment leasing company, one hotel, and two IFC lines of credit (US$7.0 million), which have been extended to the government-owned Bank of Ceylon for term loans to medium-sized industries. 19. The Bank Group's current strategy is primarily to assist-Sri Lanka in reaching a more sustainable balance-of-payments position in the medium term through export promotion and import substitution. The strategy focuses on the agriculture sector and therein grants the highest priority to stabilizing the vital tree crops subsector in the short term and to stimulating sus- tai e export growth in the medium term. This strategy includes projects to bilitate rundown infrastructure that is necessary to support expanded eco.. .Lc activity, particularly in the private sector. Projects currently under preparation include a fourth tree crop project, a second road main- tenance project, and a second dairy project. 20. The Bank Group, as of the end of 1983, accounted for 10.7% (IBRD, 1.6%; IDA, 9.1%) of Sri Lanka's total debt outstanding and disbursed, and 5.0Z of debt service on medium- and long-term debt. The projected Bank Gronp's share in total existing external debt outstanding and disbursed will increase to 17: by 1985 (with IBRD's share declining to 1.3%). The Bank and IDA portions of debt servica are expected to decline to about 4% by 1985. PART III - THE AGRICULTURE SECTOR 21. Agriculture plays an important role in Sri Lanka's economy it accounts for about 25Z of GDP, more than 50% of the labor force, and about 60% of export earnings. About 95% of the rural population is involved directly in agriculture-related activities. In addition, much of the activity in manufacturing, transport, and the service sectors relates to either supplying agricultural inputs or processing agricultural produce.  -8- 22. Traditionally, agricultural development has been concentrated in the wet zone in the southwest portion of the island. Accounting for only one- third of Sri Lanka's surface area, this zone contains about two-thirds of its population and 50% of its paddy land. Future agricultural growth in the wet zone will depend primarily on whether the productivity of already developed land can be increased. In contrast, the dry zone to the north is sparsely populated and underdeveloped despite continuing migration and settlement. Permanent agriculture in the dry zone accounts for less than 30% of the 2.24 million ha which are considered potentially arable nationwide. (An additional 1.0 million ha are under subsistence-type slash and burn (chena) agriculture.) Cultivation in the southwest monsoon season (yala) is confined to irrigated areas. Wato'r and other constraints limit average land-use intensities to about 100-120%. Considerable potential exists in Sri Lanka both for increasing cropping intensities on already developed land, and for limited expansion of cultivated areas, particularly in the dry zone. Objectives and Stratezy for the Future 23. The Government recognizes the pivotal role of agriculture in stimulating economic growth and rural development in Sri Lanka. Its medium- term strategy for agriculture emphasizes (a) better utilization of existing resources through institutional and policy reform, as well as strategically selected investments to increase the production base. Some high-priority areas are: (a) appropriate price incentives for producers; (b) agricultural support services, such as research and extension, credit, farm power supply, and fertilizer distribution; and (c) stronger irrigation water management. Following adoption of measures in 1977 designed to implement the above and due partly to favorable weather, the agriculture sector has responded well. Agricultural performance during 1978-82 improved substantially, with growth averaging 4.0% annually and the increase in paddy production averaging 5.22 anuually. As a consequence, imports of rice declined dramatically. Climatic vagaries, however, continue to plague Sri Lankan agriculture. To mitigate the impact of variations in rainfall on production, for the long term the Government is expanding irrigated agriculture further into the dry zone through accelerated development of its major river basins, the Mahaweli Ganga and Maduru Oya. The Irrigation Subsector 24. In the wet zone, irrigation normally consists of run-of-the-river diversion to supplement rainfall, whereas in the dry zone, where rainfall is less certain, schemes irrigation are based on the use of water storage tanks to supplement rainfall in the maha season (October to February). To the extent possible, the residual supplies of water from the tanks are used to support yala season (May to September) cultivation. Some 180 major tank systems irrigate about 165,000 ha, and about 2,500 smaller irrigation schemes command a comparable area. The ongoing Nahaveli Ganga program will irrigate ultimately about 365,000 ha of new or poorly-irrigated land both within the basin, and by transfer of supplies to the neighboring dry zone. Mahaweli supplies already reach a number of tanks in the dry zone, including three that are to be rehabilitated under the proposed project.  -9- Irrigation Nanafement and Rehabilitation 25. Inspite of increased irrigation coverage and growth in paddy produc- tion (para. 23). most of Sri Lanka-s major irrigation systems are yet to be fully utilized, mainly due to to inefficient distribution of water, wastage as a result of poor water manegement, the absence of adequate control structures, and lax maintenance and general deterior8tion of structures. The Go6vernment has decided to rehabilitate all major tank irrigation systems under a phased program, and five systems have been rehabilitated under the IDA-assisted Tank irrigation Nodernization Project (Cr. 666-CE). The -' proposed project seeks to rehabilitate another seven systems, while feasibility studies are about to commence with Japanese assistance for rehabilitation of four more systems. The systems selected for rehabilitation command relatively better paddy lands and benefit from releases from the Nahaweli Ganga system. Bank Group Support for Irrization Develoiment 26. The Bank Group has provided assistance to the irrigation subsector in Sri Lanka through the Nbhaveli program, water sector projects, and rural development projects- Under the Nahaveli program, four projects totaling about US$160 million and a technical assistance credit of US$3 million have been approved by IBEDIIDA; one of these projects (Ln_ 653-CElCr_ 174-CE for US$14.5 million each) has been completed. Three water sector projects financed by IDA have also been completed: Lift Irrigation (Cr. 121-CE-US$2 million), Land Reclamation and Drainage (Cr. 168-CE-US $2.5 million) and Tank Irrigation Modernization Project (Cr. 666-CE-US$5 million). A fourth project, the Village Irrigation Rehabilitation Project (Cr. 1160--CE-US$30 million), which is also financed by rDA, is progressing well. Irrigation rehabilitation is also an important component in three ongoing rural develop- ment projects (Cr. 891-CE, Cr. 1079-CE, and Cr. 1363-CE). Past operations in the irrigation sector, particularly the Tank Irrigation Modernization Project, have taught a number of important lessons, which have guided the planing and design of this project- These lessons include attention to detailed design, advanced planning, and construction periods of sufficient length; prevention of indiscriminate land and water use in catbchent areas; and establishmeat of efficient water managenent systems. PART IV - THE PROJECT Background 27. The feasibility report for the proposed project was prepared by FAO/CP in 1983. Engineering Consultants Ltd. prepared the reports on the cropping potential under the project, and the University of Peradeniya (Sri Lanka) provided the socioeconomic data. On the basis of these reports, the project was appraised by a joint IDA/CIDA mission in March 1984. Negotiations were held in Washington, D.C. October 29 - November 2, 1984. The government delegation was led by Mr. Nanda Abeyvickerema, Secretary, Ministry of Lands and Land Development.  -10- Proiect Objectives 28. The proposed project seeks to increase agricultural production on land commanded by seven selected major irrigation systems by promoting more effective use of irrigation vater, introducing systematic water management, strengthening agricultural support systems, improving roads, and conducting studies to improve system performance. Proiect Description 29. The principal project components are: (a) Rehabilitation of the Irrigation Systems and Pilot Proaram: The project would rehabilitate the irrigation systems including seven major tanks: Giants' Tank (12,460 ha), Nuruluwewa (4,090 ha), Iranaadu (9,430 ha), Kantalai (6,990 ha), Noraweva (1,960 ba), Nachchaduwa (5,400 ha), and Rajangana (5,910 ha). The rehabilitation works in each system would differ, depending on the nature of work required to upgrade and improve the system. These works would mostly involve constructing new structures, remodeling existing structures,-raising and strengthening channel banks, improving field channels and farm turnouts, improving drainage and, in some cases, raising tank storage. Four systems would be selected for a pilot program to deter- mine how technological changes to irrigation structures could improve .-ntrol of water supplies. These changes would ensure that controlled releasrs .af water would rotate to individual farms for a fixed duration for each crop. Since such methods are not currently used in Sri Lanka's irrigation systems, the possible use of the new methods would be evaluated against conventional ones. (b) Equipment. Buildinus, and Survevs: To facilitate the rehabilita- tion work and maintenance thereafter, the project would provide additional construction machinery and buildings to supplement available accommodation for field staff. It would also provide equipment for the collection of hydrological data and the modeling of systems, as well as for surveys and designs, quality control, laboratory vork, and vehicles. (c) Program for InteRrated Manaxement of Maior Irrigation Systems (INMAS): The project would provide support to the Government-s recently introduced national Program for Integrated Management of Major Irrigation Systems. In each irrigation system, the program seeks to establish manage- ment units that would, in cooperation with far!mer organizations and govern- ment agencies, schedule cropping patterns, plan distribution of water, activate maintenance programs, encourage farmer participation, make proposs for adequate water charges and ensure payment, and monitor and evaluate agricultural benefits. A Project Manager (PM) in each system would coor- dinate these activities. System-level institutional officers would assist the PMs in promoting farmer organizations and encouraging farmer participa- tion in system management. In consultation with other line agencies, a tea= of specialists located within the newly-created Irrigation Management Division (IMD) in the Ministry of Lands and Land Development (NLLD) would identify actions and recommend measures to be taken for long-term integrated management of the irrigation systems. The specialists would also provide technical guidance and support to the PNs. INMAS would improve coordination between the Irrigation Department (ID) operating and maintaining the system,  -ll- other line agencies providing agricultural inputs and services, and farmers. The project's support to INMAS would include financing investment costs for setting up IMD, training of PHs, institutional officers, and farmers of the project area, and research studies of water management problems. Various items to be financed would include office and audio-visual training equipment, overseas study tours,-and staff housing. (d) Rewularization of Landholdings and Relairs of Roads: The project would provide financing for the incremental cost of regularizing landholdings in the project area; although some land encroachments may have to be cleared. others will need to be regularized to establish clearly the irrigated area under each system. The project would also provide assistance for the repair of 35 miles of gravel-topped road and 255 miles of unpaved roads in the project area. The Land Commissioner's Department (LCD), which has both the physical and budgetary resources, would maintain the roads rehabilitated under the project. (e) Construction of A2rarian Service Center and Fertilizer and Input Stores: If agricultural inputs are to be made available to farmers in a timely manner, additional facilities will have to be provided in the project area. The project would, therefore, provide for construction of one agrarian service center, 35 stores for fertilizer and seed to supplement existing facilities, and some additional vehicles (for moving the staff and supplies) for the Department of Agrarian-Services (DAS). (f) Local Costs of Establishinm International Irritation Nanaxemeut Institute (II111): A team to study irrigation management recommended estab- lishment of IIKI in Sri Lanka. The Consultative Group on International Agricultural Research constituted the study team in 1981 and endorses the establishment of IDE. The principal objectives of IDE are to conduct multidisciplinary research on management of irrigation systems, provide training and short study courses, and prepare and disseminate research and training materials. IM} is funded currently by a support group of about 11 members including ADB, IFAD, USAID, UNDP, and the Government of Sri Lanka. It is expected to start functioning by the end of 1984. The Government has agreed to renovate and expand existing housing and other facilities at Kandy and to construct new facilities at field sites. The project would finance part of the Government-s contribution to the creation of these facilities. (g) Studies on Catebment Nana2ement and On-Farm Water Management: The project would include a study on catchment management and a study on on-farm water management in selected project areas. The study on catchment management would require about two years to complete and would provide information needed to model (a) catchment water balance, Cb) the pattern for the catchment management organization, and (c) changes to the existing legislation, if necessary, to ensure proper catcbment management. Draft terms of reference have been prepared. The on-farm study would provide a clear understanding of the utilization of water and of measures that could improve utilization. The Government has agreed to prohibit further develop- ment of tanks or diversion weirs in the catchbent areas of the seven systems. It would submit to IDA by December 31, 1987 (Section 3.01(b) and Schedule 4 (para. 5), draft DCA), a proposal for the organizational set up and legal framework for proper catchment control in the project area.  -12- (h) Socioeconomic Survevs: The project includes provision for two socioeconomic studies in the project area: one during project implementation and the other upon project completion. The studies vould be undertaken by the staff of University of Peradeniya, and would be follow-ups to their initial baseline surveys. (i) Technical Assistance and Trainina: The project onuld provide technical assistance for developing hydrological simulation models for each irrigation system, the pilot program and systems management. It would also finance a local and overseas training program for staff of ID, ID and DA. The draft terms of reference for consultants and the training program bave a been prepared. Water Availability 30. Water supplies from the Mahaveli Ganga that are diverted through the Polgolla tunnel (Map IBRD 18021) directly-augment the inflow to three tank systems of the seven (Huruluvewa, Kantalai, and Nachchaduva). In recent years the annual diversions have exceeded 1,000 million cubic meters (HM() at Polgolla tunnel. However, with the completion of the dams at Kotmale, Victoria and Randenigala in the near future, power generation at these dams would create a conflict of interest. Therefore, the cropping patterns on land commanded by these three Mahaveli-fed systems will have to be developed on the basis of an average annual diversion of 875 MM (a range of 675-1,100 NCN, depending on dry or wet year) through the Polgolla tunnel. 31. Water releases from the Mabaveli reach the tanks through long feeder channels and often pass through village tanks, with unauthorized tappings occurring en route. To limit unauthorized use, ID has recently announced that the management responsible for operation and maintenance (OiN) of tanks will also be responsible for ODH of feeder channels. ID proposes to monitor the efficiency of transmission through the feeder channels, with efficiency determined in each crop season, and to take appropriate steps to reduce loss. A report would be submitted to IDA vithin three months after each season (Section 3.01(b) and Schedule 4 (para. 6), draft DCA). Project Organization and NanaLement 32. The newly created InD of MUnM has overall responsibility for implementing the project and coordinating.the activities of the participating agencies. IDD would also be responsible for the implementation of INH&S and related activities, including the appointment of PNs for each of the seven systems. PNs would be responsible for the management and implementation of INNAS at the system level. A Deputy Director of IKD would be designated Project Director with sole responsibility to implemeut the project and coor- dinate the activities of the participating agencies. The Government would reviev the effectiveness of the administrative changes under IhEAS and submit a report to IDA on the findings no later than Deceuiber 31, 1987 (Section 3.01(b) and Schedule 4 (para. 1), draft DCA). 33. ID would be responsible for the rehabilitation vork, the pilot program, and technical assistance to and training of its staff and for 06M of the rehabilitated irrigation systems. A Deputy Director of ID would be appointed Project Officer with responsibility to coordinate all activities of  -13- rehabilitation work. The appointments of the Project Director, Project Officer, and PMs for the irrigation systems would be conditions of effective- ness of the proposed credit (Sections 3.05. 3.06 and 6.01(d and e), draft DCA). 34. LCD would be responsible for regularizing landholdings and for repairing roads in the project area. The Department of Agriculture (DA.) would be responsible for conducting studies and training its staff on catch- ment management and on-farm water management. The Department of Agrarian Services (DAS) would be responsible for the construction of the additional input stores, and the University of Peradeniya would be commissioned to carry out the socioeconomic surveys. ID would be responsible for the renovation and construction of the additional facilities at I1IM headquarters and field sites. 35. There would be a Project Steering Committee at the national level in M1LD with the Secretary, MILD, as the Chairman and the Project Director in DMO as the member-secretary. Representatives to the committee would come from ID, the Ministry of Agricultural Development and Research, D&, AS. LCD, the Ministry of Finance and Planning, the Department of External Resources, University of Peradeniya, and other agencies, as deemed appropriate. The committee would approve annual programs and budgets, allocate funds to the various departments, review and monitor programs, resolve implementation problems, and change project design, as necessary. At the district level, subcommittees of the District Agricultural Committee (DAC) would be estab- lished with the Government Agent as Chairman, IDWs Range Deputy Director as member-secretary, and the district departmental heads and the PHs as members. The subcommittees would provide policy and program guidance and resolve all project problems at field level in all major irrigation systems under the project. The formation of the Project Steering Committee would be a condi- tion of effectiveness of the proposed credit (Sections 3.04 and 6.01(c), draft DCA). Operation and Maintenance (O&M) 36. O&M of the irrigation systems would continue to be the responsibility of ID, but would be subject to overall coordination by DO. There would be sufficient staff for each system, and although the staff-would be under ID, they would have close liaison with IND staff and farmers. In the past, not enough funds have been available to maintain the irrigation systems properly. -The Government would review water charge collections around March 1985 and confirm to IDA as a condition of effectiveness (Section 4.03 and 6.01(f), draft DCA) that adequate funds would be available in 1985 to meet the full O&M requirement of the major irrigation systems. Also, by January 31 each year the Government would submit a report to IDA indicating that sufficient * funds have been allocated to meet 06 costs for the project during the fiscal year (Section 4.02, draft DCA). Cost and Finance 37. The total cost of the project is estimated to be about US$43.2 mil- lion (including taxes and duties amounting to US$2.6 million equivalent), of which about US$18.2 million (42Z) would be in foreign exchange. The civil vorks would cost about US$30.2 million (70Z); equipment and vehicles about  -14- US$8.4 million (192); technical assistance and training about US$1.7 million (4%); and engineering and administrative support, US$2.9 million (7%). These costs are based on mid-1984 prices. They include provision for a physical contingency of 10%. They also include a price contingency for foreign exchange costs amounting to 8% for 1985, 92 for 1986 to 1988, 7.5% for 1989, and 6% for 1990; and local cost contingency amounting to 12Z for 1985, llZ for 1986, 10% for 1987, 9% for 1988, 7.5% for 1989, and 6% for 1990. 38. The proposed IDA credit of US$17.0 million would finance about 422 of the total cost, net of taxes and duties. The cofinanciers of the project are CIDA with a grant of US$6.8 million equivalent and SDC with a grant of about USS7.6 million equivalent. The Government would provide about US$11.8 million toward the project cost. Total foreign financing would provide about 80% of the project cost net of taxes and duties, 1OOZ of the project-s for- eign exchange cost, and 532 of the local cost. The project's civil works would be financed jointly by CIDA, SDC, and IDA. Equipment and vehicles would be procured under parallel financing provided by IDA and CIDA, while technical assistance and training would be financed by SDC. Effectiveness of the CIDA grant and the SDC grant would be a condition of effectiveness of the proposed credit (Section 6.01(b), draft DCA). Procurement 39. The project-s procurement arrangements are -ummarized below: Procurement Method - - nUss million Total Proiect Component ICB LCB OTHER Cost Civil Works - 18.1 12.1 30.2 (8.4) (5.8) (14.2) Equipment 3.4 - 5.0 8.4 (2.5) (0.3) (2.8) Technical Assistance and Training - - 1.7 1.7 Engineering and Administration - 2.9 2.9 TOTAL 3.4 18.1 21.7 43.2 (2.5) (8.4) (6.1) (17.0) Note: Figures in parentheses are the amounts to be financed by IDA. 40. Since civil works (US$30.2 million) would be small-scale, labor- intensive and scattered, they would be carried out partly through local competitive bidding and partly through force account. ID has established detailed procedures for calling bids and awarding contracts that are satis- factory to IDA. All work contracts over US$100,000 would be subject to IDA review before being awarded. Other awards would be subject to selective postaward review. Equipment and vehicles (US$8.4 million) to be funded by IDA and CIDA would be procured under the procedures of the respective cofinanciers. IDA-financed equipment estimated at US$2.5 million vould be procured through ICB. The equipment procurement would be phased under three  --15- teuders; the first to be issued in 1984 and the other two in 1985 and 1986. ID would be responsible for the procurement of all necessary equipment, including that required by other implbuenting agencies. Local manufacturers would be given a preference of 15Z of the c.i.f. price, or the amount of customs duties and other import taxes, whichever is lower. Hydromechanical equipment and other items (costing less than US$10,000 each), for which international tendering is impracticable, would be procured after prices from not less than three independent suppliers were compared, in accordance with government procurement procedures acceptable to IDA. Such purchases would not exceed the equivalent of US$0.25 million. Disbursements 41. Disbursement of the IDA credit, the CIDA joint contribution and the SDC contribution would be made for: (a) Civil works-75X (45Z, TDA; 10%, CIDA; and 20X, SDC) (b) Equipment and vehicles-100Z of foreign expenditures for directly imported, 100% of ex-factory cost, or 80% of expenditures on locally procured equipment and vehicles (to be financed by IDA) (c) Technical assistance, surveys and training-by SDC, 10OZ 42. Disbursements for civil works carried out by force account and small contracts would be made against statements of expenditures, which would be properly audited according to procedures acceptable to IDA. Reimbursement applications would be submitted when the expenditures reach the equivalent of US$20,000. Supporting documents would be retained by the Government and made available to supervision missions whenever required. Disbursement-against civil works contracts exceeding SL Rs 500,000 and contracts for items other than civil vorks would be documented in accordance with IDA's standard requirements. IDA would administer CIJA funds for civil works through a trust account and would administer all disbursements for SDC funds. It is anticipated that the final disbursements of the IDA credit, CIDA grant, and SDC grant would be made by June 30, 1991, about six months after the scheduled completion of project implementation. These disbursement projec- tions are based on the standard sectoral disbursement profiles for IDA credits deemed appropriate for rehabilitation projects. Project Special Account (PSA) 43. To avoid delays in implementing the project and to ease the pressure on local funds, a PSA would be established in US dollars for financing the civil works. Funding by IDA, CIDA and SDC would be through the PSA. The PSA would be established and operated under procedures acceptable to IDA. Opening of the PSA in the Central Bank would be a condition of effectiveness of the proposed credit (Sections 2.02(b) and 6.01(a), draft DCA). Cost Recovery 44. The total investment costs of the project works would amount to about SL Rs 601.4 million in present value (PV) terms discounted at 10%.  -16- Incremental expenditure for O0M of the project works would amount to about SLRs 57.2 million (PV). Estimated recovery from the incremental water charge collections (para. 45) would amount to about SLRs 67.7 million (PV) over a period of 25 years. This estimated amount of recovery would meet about 101 of the investment costs and incremental OEM expenditure, or about 118Z of the project's incremental O02 expenditures. Water Charzes 45. After extensive dialogue with IDA, the Government agreed to introduce water charges in the Mahaveli irrigation system under the Hahaveli Ganga Development Project III (Cr. 1166-CE). It agreed to start collecting water charges in 1982 at 202 of O&M costs and to reach 10OZ of such costs by 1991. However, collection did not start as originally agreed because of the 1982 elections and the drought conditions that prevailed during 1981-82. Some inadequacies were also found in the Irrigation Ordinance of 1946 under which the water charges were to be collected. In 1983, the Government decided to remedy some of these deficiencies and to start collections beginning in 1984 at 50Z of OhH costs. The target of 100% recovery of OM costs by 1991 was reiterated. The Government also approved the following rates to cover average a&M costs: SL Rs 2,000/ha for major lift irrigation, SL Rs 688/ha for drainage, and SL Rs 500/ha for gravity irrigation. In addition, the Government approved special accounts for O&2 of irrigation systems into which collected vater charges would be credited. The entire range of issues per- taining to water charges was discussed under the Mahaweli Ganga Development Project IV (Cr. 1494-CE/Cr. 2437/CE). The Government has reiterated its commitment to the above provisions in respect of major irrigation systems and the following agreements were reached: (a) the Government would by September 30, 1991 achieve full OEM cost recovery in the irrigation systems; (b) by July 31, 1986, it would review the vater charge collection program to assess its success plus what adjustments might be necessary, and it would propose a program for annual rate increases; (c) by July 31 of each year it would provide IDA with a detailed report on the progress of water charges collec- tion and take steps to improve collection charges; and (d) until such time as full recovery of annual O&M costs is achieved, it would provide adequate funds for O&M of the irrigation systems (Section 4.03, draft DCA). 46. The present water charge collection program is a major step toward recovery of OEM costs in irrigation projects and emanates from a recognition of past inadequacies. The Government has already sent IDA interim reports on the collection of water charges. Thus far the 1984 collection record is reasonable, in view of the lack of rain in the early 1983-84 maha season, and the subsequent record rains from December to March, as well as the newness of the collection system itself. Farm Income 47. About 34,400 farm families (population 193,000) depend on the project irrigation systems. Persons less than 30 years old constitute 65-75% of the populaton, and about 50% of these are less than 15 years old. The literacy level is high and fairly uniform throughout the project area; about 90X of the population have at least five years of schooling. Land holdings vary from less than 0.4 ha Cl acre), owned by about 5% of farmers, to more than 2 ha (5 acres), owned by about 25%. Farmers have ownership title deeds for  -17- about 51% of land area and Land Development Ordinance permits for about 24Z, the remainder is leased land or held by unauthorized occupation. 48. Annual farm income currently varies from SL Rs 2,200 to SL Rs 11,000; the variation mainly depends on whether one or two crops are grown. Without the project, but with various ongoing government programs, farm income is expected to increase and range from SL Rs 5,700 to SL Rs 16,400 by 1995. Upon completion of the project, farm income will increase further and is expected to range between SL Rs 14,600 to SL Rs 27,300. Project Benefits and Justification 49. The project covers a net irrigable area of about 46,000 ha and repre- sents 28% of the total lands irrigated by major tanks in Sri Lanka. The production potential of these systems has not been fully realized owing to inadequate maintenance, an inefficient distribution system, and poor management. Without the project, land resources in these systems vill remain underutilized, and productivity of land may deteriorate. The principal benefits would be higher cropping intensity, improved cropping practices, and therefore higher production and increased farm income. 50. The significant changes in the cropping practices in the project area would include dryland cultivation and sowing, early cultivation, intensive application of herbicides, improved on-farm water management, and crop diversification. The cropping intensity, currently averaging 98Z in the project area, would increase to 138Z. Paddy yields are projected to increase from 2.9 tons/ha without the project, and to 3.98 tons/ha with the project. The project would increase production by about 73,800 tons of paddy and 6,200 tons of soya, yielding a net value of SL Rs 78 million annually to the ecoiony. These incremental outputs of rice and soya would result in a net foreign exchange saving of about US$3.1 million annually. The net benefit per hec-tare of agricultural land would increase from SL Rs 1,950 vithout the project to SL Rs 3,640 with the project at full development. The increase in farm family income would range between 36% and 156%. The project would create an estimated 3,000 new full-time jobs yearly during its execution period. 51. The project-s net present value over its lifetime, at a discount rate of 10% (the estimated opportunity cost of capital), is about SL Rs 211.4 million (US$8.4 million). The economic rate of return (ERR) is estimated to be about 16%. The project's economic viability is sensitive only to shocks arising from major cost increases or reductions in benefits, both of which are unlikely. The project can withstand up to a 1.5-year delay (which repre- sents three cropping periods) in generating incremental benefits and still remain economically viable. There are no serious technical risks in the project; however, it faces the possible risk of a failure to implement the proposed water management improvements.  -18- .PART V - LEGAL INSTRUMENTS AND AUTHORITY 52. The draft Development Credit Agreement between the Democratic Socialist Republic of Sri Lanka and the Association and the recomiendation of the Committee provided for in Article V, Section l(d) of the Articles of Agreement of the Association are being distributed to the Executive Directors separately. Special conditions of the credit are listed in Section III of Annex III. The opening of the PSA, effectiveness of the CIDA grant and the SDC grant, establishment of a Steering Committee, availability of sufficient O&M funds for 1985, and appointment of the Project Director, Project Officer and Project Managers would be additional conditions of effectiveness of the credit (Section 6.01, draft DCA). 53. I am satisfied that the proposed credit would comply vith the Articles of Agreement of the Association. PART VI - RECOMMENDATION 54. I recommend that the Executive Directors approve the proposed credit. A.W. Clausen President Attachments November 29, 1984 Washington, D.C.  -19- AN I TAULK a Page 1 -? W- - ineC t awom m ROU l&su 201U70t m caRSrU JL 3 NCL .wi: ACCULDIBUL 17.2 26.2 26.0 . mCP (356 c60| x.0 100.0 320.0 273.4 10g1.2 (CKlOCUNS 0F OML EZAL1r) 122.0 152.0 123.0 272.0 567.3 Q %MAnOWA EL S_L22 pOvwanou,nn-uAa (SSAN) 9U9.0 12SIL0 15139.0 URBAN POPZAOM CZ or TOTAL) 17.9 21.9 24.4 21.7 34.7 IPOPMATSM ICJUCTIU5 IlLAbTbI UAR 2000 OML) 21.1 STAxaUr MPOLATW (NLL) 32.5 FAOII of 1.6 vn SQ. a. 150.7 190.6 238.0 165.6 261.9 PE SQ. a. AC8L LAID 573.9 517.6 576.6 345.5 1735.1 OPiAflO AS SUCT03 tS) 0-14 IRS 4.l1 41.9 35.2 35.8 39.0 1S- S - 54.3 54.5 60.8 59.8 57.6 65 ANDAB E 3.4 3.6 4.3 4.3 3.3 POPULATION GRTWh 36K CE) TOtL 2.5 2.4 1.6 1.9 2.3 URB 1.7 4.3 M5 4.1 1.3 cu SUM RAZE CPEL T2OUS) 35.7 29.4 26.5 27.7 30.! CRUD1 DEAT RATE (i MM5) 9.2 7.5 6.0 10l1 9.5 GROSS 26OUCTO RATE 2.4 2i 1.7 1.8 LC ANML PLAIEND - ACCSP?ORS. AUIUL (t105) - 55.3 O 100.5 usES C:OF HAED UlUW) .. .. 55.0 .. 52.7 IlD OF FOOD PROD M CAPTA (1969-71-100) 93.0 103.0 151.0 112.8 123.0 PER CAPITA SULY OF CAlOUES (Z OF 1S) 10.0 103.0 lO.0 97.7 134.4 PROTEINS (GCRAS in DAY) 46.0 47.0 43.0 56.8 57.0 OF 1ICR ANIMEDIL ALD PULSE 11.0 12.0 1.0 ic 14.9 14.1 aCUa (AnEs 1-4) OAtll RAE 7.1 5.1 2.9 9.8 7.2 LIFE EECT. Ar 11BT (TEAM) 62.0 63.6 68.9 60.0 60.4 INAFAJr 1. RATZ (P EROT 5) 70.6 58.5. 3lL0 *3.J 66.3 aCCESS TO SAFE YATE (%10P) TOL .. 21.0 20.0 7d 32.9 37.0 iAN .. 46.0 4S.O 77 70.9 54.8 RwL .*- 14.0 13.0 fd 22.1 26.4 AS ETO RETA DISPOSAL CZ OF POPULATIO) TOTAL .. 64.0 59.0 /a 18. 41.3 URN.. 76.0 6L0 7; 72.8 47.' RUNL .. 61.0 55.07; 1.6 33.3 2OPULATI PER PM RS1CI8A1 4490.0 5950.0 7170.0 3846.2 7749.1 POP. InER NSIN PERSO 4170.0 If 2260.0 1340.0 4793.1 2660.4 POP. PR HOSPITAL -ED TOTAL 320.0 330.0 340.0 1066.5 10".2 URBA 120.0 if 210.0 240.0 Id 296.0 651.2 RURAL 1060.0 if 570.0 511.07d 593.4 2594.6 auSSnss Pu HOSPTLE .. 56.4 .. .. 27.0 ARACE SIZE OF HOSEDD TOTL 5.4 lb 5.8 CRBAN 6.3 7ir 6.3 RUlAL 5.2 /b 5.5 AVERAE N. OF PRBSONS/ROGE TOTAL 2.0 /h L5 .. -. URUBN Z1 7; L7. RURAL 0-7; s 2.5 ACCESS TO ULCT. (Z rF WALDN) TOTAL 7.5 /b P.0 URBAN 35.9 /b 34.5 RURAL 2.L3b 7 3.0  -2o0 -ANEX I T AL 7I X Page 2 i~sLk .,ok um0hJk ASA aPAcFI