Algeria - Cheliff Irrigation Project

Document of The World Bank FOR OFFCIAL USE ONLY Report No. P-4528-AL REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$ 94.0 MILLION TO THE DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA FOR THE CHELIFF IRRIGATION PROJECT April 17, 1987 This document has a festricted distribution and may be used by recipients only in the petformance of their of ficil duties. Its contents may not otherwise be disclose without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Algerian Dinar (DA) US$ 1.00 = DA 4.7 DA 1.00 US$0.213 FISCAL YEAR January 1 - December 31 GLOSSARY OF ABBREVIATIONS BADR Banque de l'Agriculture et du Developpement Rural (Bank for Agricultural and Rural Development) DAP Direction de l'Agriculture et de la Pache de la Wilaya (Provincial Directorate for Agriculture and Fisheries) DAS Domaine agricole socialiste (Socialist Sector Farm) DGPI Direction des Grands P6rimetres Irrigues MAF Ministry of Agriculture and Fisheries MHEF Ministere de l'Hydraulique, de l'Environneunent et de~s Forets (Ministry of Hydraulics, Environment and Forests) O&M Operation and Maintenance OPI Office des Perimetres d'Irrigation  FOR OFFCIAL USE ONLY DEMOCRATIC AND POPULAR REPUBLC OF ALGERIA CHELIFF IRRIGATION PROJECT LOAN AND PROJECT SUMMARY Ebrrower: Government of Algeria Amunot: US$94.0 million equivalent Terms: 15 years including 3 years of grace, at the standard variable interest rate. Project Description: The proposed project has the following objectives: (a) at the local level: (i) to implement the first priority investment package for the development of the Cheliff river basin; and (ii) to safeguard and improve the income of the farmers and their families living in the subproject areas and improve social welfare by providing some babic infrastructure; (b) at the sector Level: (i) to develop and implement new institutional arrangements to ensure adequate water management, operation and maintenance in the Cheliff river basin which, when replicated, would benefit all major irrigation in the country; and (ii) to develop and improve internal financing of Operation and Maintenance (0&M) by increasing user charges to fully cover costs; and (c) at the national level, to develop efficiently irrigation potential in the country by expanding the large-scale irrigation areas presently used for irrigation by about 25X. The Project would consist of: (a) rehabilitation of existing irrigation infrastructure over 5,000 ha in Bas Cheliff; (b) construction of new irrigation systems over 8,000 ha in Haut Cheliff; (c) provision for equipment and vehicles for extension and O&M staff; (d) technical assistance for the supervision of works, for studies of further irrigation works in the Cheliff valley and for 0&?4; (e) training and recruitment of local staff; and (f) on-farm investments. Project Risks: The risk of slow project implementation which was experienced with a previous project has been minimized by careful design of the procurement packages to facilitate efficient construction operations I This document has a resticted distuibution and may be used by recipints ony in the pefance of their officWdute. Its contents may not otrwise be diclosed without Word Bank authofiton.  - ii - (large contracts). The risk of a slower buildup of benefits than the conservative estimate made has been minimized by introducing a strict monitoring system and remedial measures to be taken to improve agricultural performance if necessary. Estimated Project Costs: Local I/ Foreign Total - ---US$ million)- Civil works 44.9 45.0 89.9 Equipment and vehicles 5.1 14.7 19.8 Technical assistance, Training and studies 1.5 5.2 6.7 On-farm investments 9.8 8.1 17.9 Incremental Recurrent costs 3.2 2.3 5.5 Total Base Costs 64.5 75.3 139.8 Physical contingencies 6.5 7.9 14.4 Price contingencies 20.2 11.2 31.4 Grand Total 91.2 94.4 185.6 Financing Pau- Local Foreign Total -===-US$ million)-- World Bank - 94.0 94.0 Government 32.6 - 32.6 Beneficiaries 7.5 - 7.5 BADR 17.0 - 17.0 Net Project Costs 57.1 94.0 151.1 Taxes and Duties 34.5 34.5 Total Project Costs 91.6 94.0 185.6 Estimated Disbursements: 1988 1989 1990 1991 1992 1993 1994 1995