Malagasy Republic - Lake Alaotra Irrigation Project

RESTRICTED Report No. PA-40a This report was prepared for use within the Baink and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor moy it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION LAKE ALAOTRA IRRIGATION PROJECT MALAGASY REPUBLIC July 10, 1970 Agriculture Projects Department  CURRENCI EQUIVALENTS uS$ 1.00 * FmG 278 FNG 1.00 - US$ 0.0036 FMG 1 million - US$ 3,600 WEIOGHS AND MA5sunEs 1 hectare (ha.) m 2.47 acres 1 kilometer (km) 0.62 mile 1 square kilometer (km2) a 0.3886 square mile 1 cubic meter (m3) * 35.31 cubic feet 1 million cubie meters (Mm3) - 810.7 acre-feet 1 kilogram (kg) * 2.205 pounds 1 ton - 2,205 pounds INITIAIS AND ACRoeM S RES : Rural Engineering Services SoMCLAC: Societe Malgache d'Amenagement du Lac Alaotra. IRAM : Institut de Recherche Agronomique Malgache FED : European Development Fand FAC : French Aid and Cooperation Phnd AMVR : Aire de Mise en Valeur Rurale BNM : Development Bank of Madagascar BCSR : Office of Commercialization and Stabilization CCCE : Caisse Centrale de Cooperation Economique  MALAGASY REPUBLIC LAKE ALAOTRA IRRIGATION PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS .....................................i I. INTRODUCTION ............ ................................. Il. BACKGROUND .........................................O.. III. THE PROJECT AREA ....... .................................. 3 General .......... ..................................... 3 Climate ................................... 3 Topography and Soils ............................... . 3 Population .......................................... 4 Farm Size and Land Tenure ........................... 4 Irrigation Facilities and Drainage .................. 4 Development Works and Supporting Services .......... . 4 Agricultural Production ........................... 5 Transportation and Marketing ........................ 5 IV. THE PROJECT ....................................... . 6 A. Project Description ...... ....................... 6 B. Project Works ................................... 6 Rehabilitation of the Pi Canal .............. .. 6 Rehabilitation of the Low Level Canal ......... 6 Rehabilitation of Existing Irrigation and Drainage Networks ...................... 7 Construction of Irrigation, Drainage and Road Networks in Newly Reclaimed Areas ..... 7 Construction of Drainage Network on 2,000 Ha .. 7 Construction of Main Drainage Outfall Towards the Lake ..... .................... 7 On-farm Development Work ................. ..... 7 Experiments in Crop Diversification ........ ... 7 C. Water Supply and Demand ......................... 8 This report was prepared by Messrs. G. Tibor, J. Marinet and A. Otten.   TABLE OF CONTENTS (Continued) Page No. D. Irrigation Schedule ............................. 8 E. Engineering Design and Construction Schedule .... 9 F. Cost Estimates ........ .......................... 9 G. Financing ....................................... 10 H. Procurement ..... ................................ 12 I. Disbursement .................................... 12 J. Auditing of Accounts ... ... ...... ..... ..... 12 V. ORGANIZATION AND MANAGEMENT ...... ....................... 13 Project Coordination and Supervision ........ ........ 13 Civil Works ..................................... $ ........... O.. 13 On-farm Development Works .............. .............. 13 Extension Services ....... ........................... 14 Experiments in Crop Diversification ......... ........ 14 Agricultural Credit . ................................ 14 Operation and Maintenance ..... ...................... 15 Operation and Maintenance Costs ................ . .... 15 Recovery of Costs .................. ................. 15 VI. PRODUCTION, MARKET PROSPECTS AND FARM INCOME .. .......... 18 Production .......................................... 18 Market Prospects .................................... 18 Prices .............................................. 19 Farmers' Income ..................................... 19 VII. BENEFITS AND JUSTIFICATION ...... ........................ 20 VIII. RECOMMENDATIONS ................ .. . . ............................. 21 ANNEXES 1. Climatological Data Ambohitsilaozana, Experimental Station (IRAM) 2. Soils 3. Societe Malgache d'Amenagement du Lac Alaotra (SOMALAC); Organization and Ownership, Activities and Financial Structure. 4. Present and Projected Cropping Patterns, Yields, Production Costa and Returns and Farm Budgets Table 1. Paddy Rice Production without Improvement of Irrigation and Drainage Table 2. (a) Paddy Rice Production with Improvement of Irrigation and Drainage (b) Off-Season Crop Production with Improvement of Irrigation and Drainage Table 3. Rice Growing Per Hectare Cost of Production  ANNEXES (Continued) Table 4. Per Hectare Return for the Different Crope with the Project Table 5. Farm Budget 5. Description of Civil Works 6. Experimental Station for Off-Season Crops 7. Water Supply and Monthly Irrigation Requirements in m3/sec 8. Construction Schedule 9. Cost Estimates 10. Estimated Schedule of Disbursements 11. Economic Rate of Return MAPS 1. Project Location 2. Project Layout  MALAGASY REPUBLIC LAKE ALAOTRA IRRIGATION PROJECT SUMMARY AND CONCLUSIONS i. This report contains the appraisal of an irrigation and drainage project designed to further develop high quality rice produc- tion in the Malagasy Republic. Agriculture plays an important role in the economy of the Malagasy Republic, accounting for 34% of the GNP. Rice, the staple food of the population, is one of the agricultural ex- porte of the island, and, in most areas, muet be irrigated to ensure a dependable, high yielding crop. The proposed Lake Alaotra Irrigation Project would be the first Bank/IDA financed irrigation project in the country and is located in the central part of the island in an area known for its export quality rice crops. The project would improve existing irrigation facilities and expand the area available for year- round production. The project includes: (a) rehabilitation of the irrigation and drainage netvorks on 4,000 ha; (b) construction of the irrigation and drainage networks on some 6,000 ha of marshland; and (c) construction of only drainage works on 2,000 ha of marshland. The project would also include all on-farm development works, as vell as setting up the organizational framework for extension services and farm supply and marketing services. An agricultural experimentation station would also be established. In addition to the 1,200 families already on project lands, some 1,700 farming families would be given land, each family working a plot of 4 ha. ii. Overall investment costs of the project are estimated to be US$8.2 million. Of this, about US$5.3 million vould be spent on civil engineering works, about US$1.2 million on on-farm development, US$0.6 million on O&M equipment, and about US$1.1 million on experiments and initial cost of extension services. iii. An IDA credit of US$5.0 million has been requested. The credit would cover the estimated foreign exchange and 50% of local currency requirements for civil works totaling US$4.2 million, including contin- gencies. It would also finance the foreign exchange cost of equipment for operation and maintenance of the irrigation system in the amount of US$0.6 million and 90% of the cost of experiments in crop diversification and studies amounting to US$0.2 million.  - ii - iv. The Rural Engineering Services of the Ministry of Agriculture (RES), with the help of a French consulting firm, SOGREAH, would design the civil works and would supervise construction by contractors. The civil works contract, covering works in three construction seasons, would be awarded on the basis of international competitive bidding. Societe Malgache d'Amenagement du Lac Alaotra (SOMALAC), w