Mauritania - Irrigation Engineering Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3134 PROJECT PERFORMANCE AUDIT REPORT MAURITANIA GORGOL ENGINEERING PROJECT (Credit S-16-MAU) September 18, 1980 Operations Evaluation Department 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 - Ouguiya (UM) US$1.00 - UM 45 UM 1 - US$0.022 ABBREVIATIONS AND ACRONYMS OMVS - Organisation de la Mise en Valeur de la Vallee du Senegal SONADER - Societe Nationale pour le Developpement Rural FED - Fonds Europeen de Developpement FOR OFFICIAL USE ONLY Project Performance Audit Report MAURITANIA GORGOL ENGINEERING PROJECT (Credit S-16-MAU) TABLE OF CONTENTS Page Preface i Basic Data Sheet Highlights iii PROJECT COMPLETION REPORT I. Background 1 II. Preparation and Appraisal 2 III. Implementation 4 IV. Performance 7 V. Lessons learned 9 Map 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.  - 1 - Project Performance Audit Report MAURITANIA GORGOL ENGINEERING PROJECT (Credit S-16-MAU) PREFACE This is a performance audit of the Gorgol Engineering Project in Mauritania for which Credit S-16-MAU in the sum of US$1.1 million was approved in June 1974. The Credit was closed on January 30, 1979 after a delay of almost two years. The final disbursement was made on March 18, 1980. The Gorgol Engineering Project partly prepared the Gorgol Irrigation Project which is presently in the process of appraisal. The audit consists of highlights prepared by the Operations Evalua- tion Department and a Project Completion Report (PCR) dated March 31, 1980. The PCR was prepared by the Western Africa Regional Office. The audit is based on a review of the President's Report (P-1396-MAU) dated May 8, 1974 (no appraisal report was prepared), the Credit Agreement dated June 12, 1974 and the PCR. Correspondence with the Borrower and internal Bank memoranda on project issues as contained in relevant Bank files have also been reviewed and Bank staff associated with the project have been interviewed. A copy of the draft report was sent to the Borrower on June 9, 1980 for comment; however, no comments have been received. The audit suggested some minor changes to the PCR which were ac- cepted and included therein. On the basis of OED's abbreviated procedure, the audit finds no reason to query the main conclusions of the PCR.  PROJSCI PERFORMANCE AUDIT BASIC DATA SHEET MAURITANIA - GORGOL ENGINEERING PROJECT (Credit S-16-MAU) KEY PROJECT DATA Appraisal Actual or Item Expectation Current Estimate Total Project Cost (US$ million) 1.30 1.301/ Credit Amount (US$ million) 1.10 1.10 Disbursed (US$ million) - 1.10 Cancelled Repaid to ) 02/29/80 - 0.55 Outstanding to ) - 0.55 Date Physical Components Completed Dec. 31, 1976 Dec. 31, 1979 Proportion Completed by Appraisal Target Date (%) - 100 Proportion of time overrun ()- 80 Economic Rate of Return (%) NA NA Cumulative Estimated and Actual Disbursements (US$ 000) FY75 FY76 FY77 FY78 FY79 FY80 Estimated 400 1,075 1,100 - - - Actual 594 765 880 1,070 1,094 1,100 Actual/Estimated (%) 148 71 80 - - - OTHER PROJECT DATA Original Actual or Item Plan Revisions Current Estimate First Mention in Files 09/18/70 Negotiations 04/15-16/74 04/15-16/74 Board Approval 05/08/74 05/08/74 Credit Agreement Date 06/12/74 06/12/74 Credit Effectiveness Date 08/12/74 11/06/74 11/06/74 Closing Date 03/31/77 02/28/78; 6/30/78 01/30/79 Borrower Islamic Republic of Mauritania Executing Agency Ministry of Rural Development Fiscal Year of Borrower January 1 - December 31 Follow-on Project Name None MISSION DATA Month, No. of No. of Man- Date of Item Year Weeks Persons weeks Report Supervision I 06/75 1 3 3 06/30/75 Supervision II 02/76 1 3 3 02/25/76 Supervision III 06/77 1 1 1 06/01/77 Supervision IV 10/77 1 5 5 11/09/77 Supervision V 04/78 2 1 2 04/10/78 Supervision VI 10/78 1 1 1 10/13/78 Total 15 COUNTRY EXCHANGE RATES Name of Currency (Abbreviation) Ouguiya (UM) Year: Appraisal Year Average Exchange Rate: US$1 = 45 Intervening Years Average US$1 = 45 Completion Year Average US$1 = 46 1/ Project was scaled down.  - iii - Project Performance Audit Report MAURITANIA GORGOL ENGINEERING PROJECT (Credit S-16-MAU) HIGHLIGHTS The Gorgol Engineering Credit was approved to help finance engineer- ing studies required for implementation of the first phase of Gorgol Basin Development Scheme; related studies of health, manpower and educational requirements; and technical assistance to the Ministry of Planning. Development of the Gorgol Basin was believed to be the quickest and simplest solution to Mauritania's mounting food needs and to provide insurance against some of the consequences of severe droughts. The scheme was first identified by a Bank technical assistance mission which visited Mauritania in 1967. A feasibility study was completed by consultants in 1972. Preliminary studies indicated that the first phase of the project (3,500 hectares) would yield only a fair economic rate of return under rather optimistic production assumptions. More detailed studies which were completed in mid-1975, estimated that total project cost would be over six times as high as the first estimate of US$10 million due to higher unit costs and the quantity of works required. Further, Bank staff questioned the specifications for a main dam (Foum-el-Gleita) because the design was based on inadequate geological investigations and there was inadequate appreciation of the risks involved. Additional studies supported the tentative conclusions of Bank staff. While these studies were going on, the project was reformulated to eventually develop 3,600 hectares near the Foum-el-Gleita site. Another consultant was hired to carry out the necessary supporting geological and topographic investigations, and to redesign the dam. The studies were fi- nanced out of the Gorgol Engineering Credit, but most of the re-design cost of the dam was covered by the SONADER Technical Assistance Credit (Credit 694-MAU) which was approved in March 1977. SONADER was set up in July 1975 to plan, design and manage all irrigation projects and took over management of the project from the Rural Engineering Department in 1977. Based on additional studies and designs, an appraisal of the first phase of the Gorgol Irrigation Scheme has been completed and is expected to be presented to the Board for approval in September 1980. - iv - As completed, the Gorgol Engineering Project had been scaled down. Studies of educational and manpower requirements related to the project and technical assistance for the Ministry of Planning were not carried out as provided under the project. Part of the funds earmarked for these components were used for the supplementary geological studies requ:.L d for the dam re-design and for completion of the initial engineering studies. There was no cost overrun as a result. Because of its nature no rate of return was estimated either at appraisal or completion of the project. Other points of interest are: - additional studies required because initially consultants proceeded with final design of dam on the basis of inadequate geological information (PCR para. 4.02); - cumbersome local administrative procedures delayed contract signing and payments to consultants (PCR para. 4.02); - re-design of dam evaluated by Government appointed panel of experts, in accordance with Bank OMS No. 3.80 (PCR para. 4.07 and 5.01); and - studies financed under the project were to provide plans to prevent and control the spread of malaria and bilharzia diseases (PCR paras. 3.07 and 4.03). MAURITANIA PROJECT COMPLETION REPORT GORGOL ENGINEERING PROJECT (Credit S-16-MAU) I. BACKGROUND 1.01 Mauritania extends over one million square kilometers between 160 and 270 N and 60 and 160 W. About three quarters of the country lie in the Saharan Zone with less than 100 mm of rainfall. The southern part, along the Senegal River, has a Sahelian climate, with annual rainfall varying from 100 mm to 600 mm. Along the coast the climate is temperate. 1.02 The rainy season is from June to October. In the dry season the relative humidity is very low and this situation is aggravated by the warm dry wind "Harmattan". 1.03 The Senegal River and its tributaries, the Gorgol and the Karakoro, are the main sources of surface water. River flows are variable throughout the year and from one year to another. 1.04 About 15% of Mauritanian population lives in urban areas, 70% are engaged in migratory herding and the remaining 15% are sedentary farmers. 1.05 Due to natural conditions, agriculutre is limited to a narrow strip along the Senegal River, a small area (Guidimake) where precipitation allows for rainfed cropping, some oases in the north and a few regions where shallow lakes make flood recession cropping possible. 1.06 The basic hindrance to agricultural development are climatic and hydrologic factors: rainfall is limited and unevenly distributed, Senegal River floods are irregular, and massive salinity intrusion into the river during the dry season prevents double cropping up to 200 km from the delta. Other constraints are the large size of the country, which makes communications difficult, and the lack of expertise in fields such as agriculture, irrigation engineering and public finances. As rainfed agriculture is too risky, Mauritania's only chance to reduce its massive dependence on external help in meeting national food requirements is the development of irrigation. Therefore Government is putting emphasis on irrigation development. 1.07 Since 1961 several small pumping schemes have been installed along the Senegal River. These schemes were inadequately prepared, organized and implemented so that they fell into disrepair. However they were rehabilitated and expanded in 1976/77 partly with the assistance of IDA (Credit 444-MAU) and - 2 - are now performing satisfactorilym The only major irrigation project initiated till 1974 was M'Pourie in the Senegal RiLver delta close to the town of Rosso, which started in 1969/70 with bilateral aid from the People's Republic of China. Future irrigation development along the Senegal River was to be based mostly on the UMVS irrigation program but due to the delay in implementing the major regulating dams it is difficult to draw up a concrete plan of realizations. in the meantime Mauritania's only large irrigation project which could he implemented more rapidly since it would not require cooperation of neighboring countries is the Gorgol Basin Development Scheme; accordingly it has been given highest priority by the Government. 1.08 The Gcrgol Engineeriag Credit has financed execution of studies needed for the iMplementation of the first phase of the Gorgol Basin Develop- ment Scheme; related health studies; the preparation of final designs, tender documents and technical schedules; a study of the manpower and educational requirements for the implementation of irrigation projects in Mauritania; and assistance to the Ministry of Planning for the analysis of rural development projects. 1.09 The total cost of the project net of taxes was estimated at US$1.3 million with a foreign exchange component of US$1,043,000. The IDA credit of US$1.1 million would finance the foreign exchange costs of the project and a small amount of local costs,' or an aggregate of 87% of total project costs, net of taxes. The credi- has a term of ten years, including two years of grace, with the usual IDA sevrice charge of 3/4 of one percent per annum. The Engineering Credit would be refinanced under any later credit that the Bank Group would make for the irrigation project itself. II - PREPARATION AND APPRAISAL Identification 2.01 The Gorgol Basin Development Scheme was first identified by a Bank technical assistance mission which visited Mauritania in 1967. A master plan for the development of the Gorgol valley and a feasibility study for a first stage project was completed by French consultants in 1970-72. The study was financed by UNDP with FAO acting as executing agency. The findings of this master plan indicated the possibility of developing about 10,000 ha of irrigated land in the Gorgol valley, of which 3,500 ha upstream before the confluence of the Gorgol Blanc and the Gorgol Noir and 6,500 ha close to the confluence with the Senegal River. Two regulating dams, Foum-el-Gleita on the Gorgol Noir and E1-Bir after the confluence of the two Gorgols, as well as protective dikes, irrigation and drainage networks would be constructed. The first phase would comprise the downstream development, which would require the construction of the two dams. 2.02 Preparing the execution of the first phase, Government initiated in 1972 detailed engineering for a 700 ha pilot project in the Kaedi area with the assistance of IUNDP and with FED financing construction costs. This - 3 - project aims at providing practical solutions to the agricultural, organiza- tional and social problems that are likely to arise during the overall development in the valley. The Kaedi area can be developed and irrigated without either of the two dams, since it is a small area. Construction of this project started in 1975, and effective operation in 1977. 2.03 Following the disastrous drought of 1972, Government requested (by letter of December 8, 1973) financial assistance from IDA and FED for the Gorgol Irrigation Project and as a preparatory step, IDA financing for the engineering studies to be carried out by consultants. In response to this request an Engineering Credit was scheduled and prepared. Appraisal 2.04 A Bank mission visited Mauritania from December 10 to 18, 1973 and appraised the Gorgol Engineering Project. The mission consisted of five members, three of the Bank and FAO Cooperative Program and two consultants. The mission retained the master plan concept (para. 2.01) and defined the detailed engineering studies required for its implementation including the supporting health study. Issues Paper 2.05 The Issues Paper was distributed January 8, 1974 and the Decision Meeting held January 15, 1974. No particular issue was raised. Negotiations 2.06 Negotiations took place on April 15 and 16, 1974. Agreement was reached on the terms of the Draft Credit Agreement as approved by the Loan Committee on March 21, 1974 with changes referring to (1) increase of credit amount from US$1.0 to US$1.1 to finance two man-years of technical assistance to the Ministry of Planning and (2) increase in the amount of the retroactive financing from US$250,000 to US$280,000 because of the earlier start of some studies. Board Presentations 2.07 The project was submitted to the Board on May 8, 1974 and the Credit was signed on June 12, 1974. Project Description 2.08 The project consists of (1) topographic surveys, drillings and geophysical and geotechnical investigations, preparation of final designs and tender documents for an irrigation development of 3,500 ha and assistance to the Borrower for the bid evaluation and award of contracts, (2) a complete survey of health hazards and setting up of recommendations for the operation of the scheme to maintain proper sanitary conditions in the area, (3) a study of the manpower and educational requirements for the implementa- tion of irrigation projects in Mauritania, (4) technical assistance to the Ministry of Planning and Industrial Development, and (5) cadastral, roads and supporting services surveys in the project area. 2.09 Since three c2her IDA credits: First Education Project (Credit 459-MAU in February 1974), Technical Assistance to the Ministry of Planning (Credit 665-KAU in _ec_ber 1976) and Technical Assistance to SONADER (Credit 694-MAU in April 1977) provide assistance to carry out the studies mentioned in items (3) and (4) of para. 2.08, this part of Credit S-16-MAU was dropped and the corresponding funds used to finance other Gorgol studies, in particular hydrologic, topographic and pedalogic studies. III - IMPLEMENTATION Effectiveness 3.01 The project had the following conditions of effectiveness (1) signing of the contract with the engineering consultant, and (2) appointment of the project manager and his alternate. 3.02 The date of effectiveness had been initially fixed at mid-August 1974 but due to delays in complying with condition (1) the project became effective only on November 6, 1974. Engineering Studies 3.03 Based on a letter of intent sent by Government to the consultant early in 1974 the surveys as well as final design started in February 1974. Despite delays in signing of the contract and payments to the contractor the final design and tender documents were completed and submitted to Government and IDA in June 1975. 3.04 These indicated a dramatic increase both in terms of quantities and costs over the master plan and the appraisal estimates of the engineering credit as illustrated below: Base Price Area (ha) Cost Dated US$ Million Master Plan 1971 6,500 17 Appraisal of Cr. S-16 MAU 1973 3,500 10 Final design 1975 3,800 65 This induced Government to postpone calling for bids in order to search a more economic solution. A Bank desk study in December 1975 proposed an alternative based on the irrigation of the upper valley requiring the con- struction of only one dam (Foum-el-Gleita) which based on the quantity and price assumptions of the final design of the original option had the potential for reducing the project cost by about 30%. An FAO/CP mission tested this alternative in the field and confirmed its merits. However, the Government was initially reluctant to consider this new alternative because it would have developed a less populated area than that originally envisaged and towards the population of which Government felt it had a commitment. In - 5 - order to further explore the new option a meeting with the participation of the Government, the Bank, FAO/CP and the consultants was held in Paris in October 1976. As a result of this meeting, Government withdrew its objections to the proposed single dam upstream development. It was also agreed that the necessary complementary studies to implement this alternative would be financed by the balance of Credit S-16-MAU, and additionally from the consul- tant services category of the SONADER Technical Assistance project (Credit 694-MAU). For this purpose the description and percentage of expenditures to be financed under Category V as well as the description of Part V of Schedule 2 of the Credit Agreement were modified (Bank letter of April 8, 1977, con- firmed by the Ministry of Planning on April 12, 1977). 3.05 The complementary studies included topographical and pedalogical mapping, geological surveys and engineering design of the new irrigated area. They were entrusted to a new set of consultants and were completed by the end of 1978. At the request of Government the identification of a sugar cane perimeter was also included in the program. 3.06 In order to meet the requirements of the new planning, and to be able to use the balance of the credit the closing date of Credit S-16-MAU was postponed from March 31, 1977, to February 28, 1978, to January 30, 1979. Health Studies 3.07 Field surveys for the health studies started in May/June 1974 on similar administrative bases as to the engineering studies, (i.e. prior to the signing of contract documents). In fact, the contract with the consultant was signed in June 1975 only. However the studies have progressed satisfac- torily and the final reports were submitted in mid 1976. Project Director 3.08 In accordance with the Credit Agreement, the Project Director was originally the Director of l"'Ame'nagement Rural" and his alternate the "Chef du Service de l'Amienagement Rural". At Government's request (telex of March 10, 1977) the Bank agreed (telex March 17, 1977) to the appointment of the Director of SONADER as new Project Director and the Director of Rural Works Department as his alternate. This change is in line with the creation of SONADER and its responsibilities for the study and implementation of irrigation projects in Mauritania. Procurement 3.09 The project financed only studies. Therefore, procurement has been limited to consultants' services. The Credit Agreement specifies that the Borrower should employ competent and experienced consultants under contracts and terms of reference satisfactory to the Association. 3.10 The Government proposed the engineering studies to be carried out by the same consultant who did the Gorgol feasibility studies and this was accepted (President's Report No. 1396-MAU 531). For all studies, terms of reference and contract documents have been approved by the Bank. The supple- mentary studies were procured following international consultation. -6- Disbursement 3.11 Actual disbursements have always been behind appraisal estimates as indicated in the table below. In fact, due to delays in compliance with conditions -' effectiveness and to cumbersome administrative procedures, FY75 ended without any disbursement. The events referred to in para. 3.04 have widened the gap between appraisal estimates and actual disbursements. The last 20% of the credit was disbursed only after the supplementary studies (para. 3.05) had been defined and agreed upon. Schedule of Disbursements (US$'000) Fiscal Year Appraisal Estimates Actual 1975 400 - 1976 1,075 765 1977 1,100 879 1978 - 1,070 1979 1,094 1980 1,100 By Category the disbursements were as follows: Category Amount of Credit Disbursement made attached (US$ dollar equivalent) I - Engineering Consultant Services under contract 823,000 1,041,053.26 II - Health Study under contract 52,000 58,946.74 III - Education Study under contract 30,000 - IV - Rural Development Project Analyst 80,000 V - Complementary Surveys and Investigations 65,000 VI - Unallocated 50,000 - 1,100,000 1,100,000.00 The credit was entirely disbursed. However no payment was made under Categories III, IV and V. This reflects for the two first categories the result of the changes mentioned in para. 2.09. As for Category V, all the complementary surveys have been undertaken by consultants in the context of the engineering studies and therefore paid under Category I. -7- Costs 3.12 Project costs as estimated at appraisal were as follows: US$ ('000) Project Item Local Foreign Total - Engineering Services 88 735 823 - Health Study - 52 52 - Education Study - 30 30 - Rural Development Project Analyst 20 80 100 - Complementary Surveys 82 90 172 - Price Contingency 18 36 54 - Quantity Contingency 10 20 30 Total 218 1,043 1,261 Appraisal estimates for 70% of the costs (Engineering and Health Studies) have been based on firm contract prices. Since after the redefinition of project preparation (para. 3.04) the residual funds available for other studies were supplemented by Credit 694-MAU, there was no cost overrun for Credit S-16-MAU. It should be mentioned that the consultant for the initial engineering studies claimed the payment of interest charges for late payment. By telex of May 18, 1977, the Bank informed Mauritania that such payment is its responsibility, since the delays in signing of contracts and consequent disbursements (para. 3.03) were attributable to Government. IV - PERFORMANCE Consultants Engineering Studies 4.01 The initial studies were completed in June 1975 (para. 3.03) with only two months delays despite the fact that the contract was signed one year after commencement of work and payments were delayed accordingly. The quality of work was generally acceptable with the exception of the design of the dams. Following subsequent additional geological and topographical surveys (carried out within the framework of the complementary studies) the concept of the Foum-el-Gleita dam had to be changed from earth to concrete and the design was redone by another consultant financed by Credit 694-MAU. In the light of above surveys, a thorough revision of the El-Bir dam design should also be done when the downstream Gorgol valley is developed. 4.02 The faulty design of the dam is attributable to a) consultant's readiness to proceed with final design on the basis of inadequate geological data, and b) to a lack of proper appreciation of risk factors by consultants. The contract fees corresponding to the rejected design work is estimated at about one tenth of the total contract. The cost of the supplementary design work for the Foum-el-Gleita dam was US$197,000. - 8- Health and other Studies. 4.03 The execution of the health studies has been satisfactory and despite some delays the recommendations were incorporated in the project design. As for the complementary studies they were submi-I on time and the quality is good. Agency 4.04 Cumbersome administrative procedures have considerably delayed signing of contract and payment during the first phase of credit disbursement. This improved after the establishment of SONADER and appointment of a new project director in 1977. At the start, technical supervision of consultants was not of the quality that would have controlled the dam design and avoid its failure. Subsequently this was corrected by the expanded technical assistance provided to SONADER with Credit 694-MAU and the appointment of a panel of dam experts. Bank 4.05 The Bank has played a decisive role in the preparation of the project since early 1972, and constantly encouraged Government to search for the soundest solution in an environment where the modest agriculture basis is entirely dependent on irrigation. The results of the first studies financed by UNDP were the basis for the Bank interest to get involved in the Gorgol Valley Irrigation Development in 1973. In response to Government's wish the Bank took the lead in further advancing the project and prepared the engineering credit very expeditiously (appraisal December 1973 - Board Presentation May 1974). After finding that the project as initially conceived would not be economically feasible the Bank took the intiative in studying and proposing alternatives which led to the present first phase of the development project which is now under appraisal. Although the solution now adopted is judged technically sound, it has not succeeded in improving the expected economic return. The continued search for alternatives has confirmed that in Mauritania investments designed to make any substantive impact on food production and food security are bound to be costly and yield low economic returns at least for a number of years. 4.06 The Bank has sent 6 supervision missions, one in 1975, one in 1976, two in 1977 and two in 1978. All missions except one consisted of only one staff member, an engineer, throughout. The continuity of Bank staff in supervising this project is satisfactory since only two staff members have been involved - one in four missions and the other in three. All the missions have simultaneously supervised other projects in Mauritania. 4.07 During the initial phase the Bank did not provide the expertise that the Borrower needed to control effectively the dam design. Bank reservations were expressed during the review of the dam tender documents in July 1976, and - 9 - additional geological studies recommended to be undertaken prior to tendering. Furthermore, at Bank request, the Government appointed in 1978 a panel of dam experts to supervise the new dam design. If such measures had been taken at an earlier date, the dam design failure could have been avoided. V. LESSONS LEARNED 5.01 When Borrowers have contracts with consulting firms and their technical expertise for supervising them is not at an appropriate level, the Bank should insist on the early appointment of an advisor or panel of experts depending on the complexity of the project to provide the required expertise. This policy was applied during the last phase of the credit for the execution of the complementary studies. The difference in quality of these studies compared to the earlier ones testifies to the benefits of a closer supervision of the consultants. l |BRD 10876 FEBRUARY 1974 ALGERI A rhs ,p h., be, ppard by &,e ordBankssa(exclusiy ot'henenence 13° 00' 13°30' 0 - N n( es sn"y o rhei a½ o no ,wpon the na,e oyedworisn"*e""'' |ISLAMIC REPUBLIC OF MAURITANIA GORGOL IRRIGATION PROJECT SPANISH 0 SAHARA irrigated Area 6,500 ha MALI First Sage lrrigoted Area 3,500 ho FED Pilot Prolect 700ha Nou-dhlbou Monguel Mai Roads \ --- Relocated Moin Roads M AU R I T A N l A Projeded Reseivoirs No'kho 6°20 - n- Iternational Boundores W 20 - IIR ST STA GE PR OJ EC l 1AT HRE5S SH 0WN irIN nf fl St nn Loui -,i SEN E GAL' e"' D.k.r m A L l fl Lexeibai -- - - - PROTECTIVE DYKE -- Ganki Mi Gc) Fo.- G| a DJ .- N 0 5 10 15 20 -- KllOMETERS --i Bout SENEGAL 16° O ¯ - ,--4 _ cn 15 A 0 n -