Somalia - Farahaane Irrigation Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 7489-SO STAFF APPRAISAL REPORT SOMALIA FARAHAANE IRRIGATION REHABILITATION PROJECT JUNE 30, 1989 Agriculture Operations Eastern Africa Department Africa Region This documeit has a restricted distribution and may be used by recipients only in the perfornance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents (as of September 1988) Official Exchange Rate US$1.00 250 Somali Shillings (SoSh) SoSh 1.00 = US$ 0.004 Weights and Measures mm n Millimeter (0.039 inches) cm = Centimeter (0.397 inches) m = Meter (39.37 inches) Km - Kilometers (0.62 miles) Sq km - Square Kilometers (0.386 square miles) Ha = Hectare (2.47 acres) CMS = Cubic Meter per second MCM = Million Cubic Meter L = Liter (1.05 quart) L/S = Litre/Second (0.035 cubic feet per second) Kg = Kilogram (2.2 pounds) T = Metric ton (2,205 pounds) Calendar Fiscal Year: January 1 - December 31 Cropping Year: A.ril - June (Gu Season) : October - December (Der Season) Abbreviations ADC Agriculture Development Corporation AFMET Agricultural Farm Management, Extension and Training CARS Central Agriculture Research Station CHWS Community Health Workers CSBS Commercial and Savings Bank of Somalia DILU Directorate of Irrigation and Land Use FAO Food and Agriculture Organization FEA Field Extension Agent GDP Gross Domestic Product GOS Government of Somalia ICB International Competitive Bidding IDA International Development Association IFAD International Fund for Agricultural Development IMF International Monetary Fund LCB Local Competitive Bidding LEUD Land Evaluation and Use Division MOA Ministry of Agriculture MOF Ministry of Finance and Revenue MOH Ministry of Health NPK Nitrogen, Phosphorus and Potassium ONAT Farm Mechanization and Agricultural Services Organization PHC Primary Health Care RWRAD Regional Water Resources Allocation Division SDB Somali Development Bank SOE Statement of Expenditure SRMD Shebelli River Management Division SWMP Shebelli Water Management Project UNCDF United Nations Capital Development Fund UNDP United Nations Development Program USAID United States Agency for International Development WHO World Health Organization  FOR OFFICIAL USE ONL' SOMALIA FARAJHAANE lRRIGATION REHABILITATION PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. Credit and Project Sumary ....... ....................... i-Li I. BACKGROUND A. Project Origin ........... ....................... 1 B. The Agricultural Sector ...... ................... 1 C. IDA Lending ............. ........................ 3 II. THE PROJECT AREA A. Location, Climate and Water Supply .... .......... 4 B. Topography, Soils and Land Use ..... ............. 5 C. Farm Size and Land Tenure ...... ................. 6 D. Irrigation and Drainage Facilities ..... ......... 7 E. Agricultural Services ....... .................... 9 F. Agricultural Inputs ........ ..................... 11 G. Health and Social Aspects ...... ................. 12 H. Institutions ............ ........................ 13 III. THE PROJECT A. Project Description ........ .................... 16 B. Detailed Features ....... ..................... 19 C. Agricultural Support Services ..... ............. 23 D. Health and Social Aspects ...... ................ 25 E. Institutional Development and Training ......... 27 F. Implementation Assistance ...... ................ 27 G. Project Costs and Financing Plan ..... ........... 30 H. Procurement and Disbursem-nts ..... .............. 31 I. Accounts and Audits ....... ..................... 35 J. Environmental Impact ....... .................... 35 IV. PROJECT IMPLEMENTATION A. Organization and Management ..... ............... 36 This report is based on the findings of an appraisal mission to Somalia in september/October 1988 comprising Messrs. Aizad N. Khan, James Coates (Bank), Henning Pedersen (IFAD) and Kalidas Sengupta, Harold Lemel and Ms. Mariam Warsame Yusuf (Consultants). Messrs. W. J. Ochs (Bank) and R. Klump (Consultant) visited project area prior to appraisal miusion and contributed to the report. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  -ii - Page No. V. AGRICULTURAL SUPPORT SERVICES AND PRODUCTION A. Support Services ............................... 38 B. Farm Inputs .................................... 38 C. Present and Future Cropping Pattern .......... .. 39 D. Yields and Production ........................... 41 VI. MARKETING, PRICES, FARM INCOME AND COST RECOVERY A. Marketing and Prices ........................... 41 B. Farm Family Incomes ........... ................. 43 C. Cost Recovery ......... ........... 45 VII. BENErITST, JUSTIFICATION AND RISKS A. E(..onomic Analysis ..................... 46 B. Risks ......... .. .......... 47 VIII. ASSURANCES AND RECOMMENDATION A. General Conditions ............................ 48 B. Dated Covenants . .49 C. Condition of Disbursement .50 D. Conditions of Effectiveness .50 LIST OF TABLES 2.1 Land Use in the Project Area 2.2 Farm Size Distribution 3.1 2roject Cost Summary 3.2 Financing Plan 3.3 Procurement Arrangements 3.4 Disbursement Schedule 5.1 Current and Projected Crop Yield in Farahaane 5.2 Incremental Production 6.1 Farmgate Prices Used in Production Analysis 6.2 Farm Income Levels for Project Farm Families 7.1 Economic Rate of Return and Sensitivity Tests ANNEXES ANNEX I - Cost Estimates and Procurement Table 1 Cost Summary - Summary Accounts Table 2 Project Components Base Cost by Year Table 3 Project Components Cost Incl. Contingencies by Year Table 4 Summary Account Base Cost by Year Table 5 Summary Account Cost Incl. Contingencies by Year Table 6 Proposed Allocation of Credit Proceeds Table 7 Projected Disbursements  - iii - Table 8 Proposed List of Building Facilities Table 9 Estimated List of Vehicles and Equipment Table 10 Summary of Consultants Input Table 11 Proposed Civil Works and Procurement Schedule ANNEX 1I - Water Balance Table 1 Climatological Data Table 2 Proposed Water Requirement for Farahaane Area Table 3 Water Balance Computations Downstream of Awdegle ANNEX III - Agricultural Production Table 1 Present and Proposed Land Use Table 2 Incremental Production Table 3 Present and Projected Crop Yield Table 4 Annual Agricultural Input Requirement Table 5 Total Annual Agricultural Input Requirement Table 6 Annual Labor Force Required and Available ANNEX IV - Economic and Financial Aspects Tabie 1 Cost Recovery Analysis Table 2 Farm F' dels Table 3 Econc,.ic Analysis ANNEX V - Selected Documents and Data in the Project File CHARTS 1. Ministry of Agriculture Organization 2. Project Organization 3. Ministry of Health and Credit Institution Organization 4. Implementation Schedule MAPS 1. Shebelli River Basin (IBRD No. 21076) 2. Farahaane Irrigation Scheme (IBRD No. 21077)  SOMALIA FARAHAANE IRRIGATION REHABILITATION PROJECT Credit and Project Summary Borrower: Somali Democratic Republic IDA Credit: SDR 21.2 million (US$28.5 million equivalent) Terms: Standard IDA terms with 40 years maturity Beneficiaries: Smallholder farmers and the Ministries of Agriculture and Health Project Objectives and Description: The main objectives of the project are in line with the Government's development and food production strategy for the agriculture sector. Food production would be raised by about 5,600 smallholders in the Qoryooley district through rehabilitation of a net irrigated area of 5,100 ha in Farahaane, reconstruction of two barrages, and strengthened services such as extension, input supply, and on-farm trials and demonstrations. Special emphasis would be given to strengthening the Department of Irrigation and Land Use in the Ministry of Agriculture to implement rehabilitation activities and simplified land registration procedures. To ensure maintenance of irrigation facilities rehabilitated under the project, cost recovery mechanisms would be developed and water users organizations would be strengthened to eventually take over the operation and maintenance of the entire system. Benefits: The benefits of the project would be obLained from increased yields and higher cropping intensities possible with a more efficient, reliable irrigation system and improved water management in the Shebelli river basin, on the scheme and at the farm level. This will permit (a) increased crop production; and (b) increased incomes and more stable and reliable livelihood for some 5,600 subsistence farmers. Malaria and schistosomiasis disease control will improve health standards and the quality of life in the project area. Risks: The main risk to the attainment of the above mentioned results is that expectations for improved management of the Shebelli basin may not b- met. The Government is taking many steps to strengthen its control of the Shebelli water resources, and with the support provided by IDA and USAID it is expected to be able to greatly improve the efficiency and equity of water allocations. A second important category of risk is the non performance of key agricultural support services. A series of donor supported projects, combined with the Government's efforts to liberalize product and input markets, provide foreign exchange to the productive sectors and rationalize and increase the efficiency of agricultural support services, should permit these bottlenecks to be overcome. A third risk is that projected yields depend on the availability of water in specified  quantities and timely availability of agricultural inputs. Steps to be taken, such as reSulating the flow of Jowhar reservoirs, and project provisions for input supply would reduce this ri.k. A fourth risk is that the water users associations and other institutional arrangements for water charges may not work. Special care has been taken to involve those associations in the planning and design of the project. Project Components and Estimated Costs: !J US $ million Local Foreign Total Irrigation Development Rehabilitation Works 1.85 11.68 13.53 Vehicles and Equipment - 2.49 2.49 Implementation Assistance and training 0.23 5.72 5.95 Incremental Staffing and recurrent expenses 0.62 0.04 0.66 Subtotal 2.70 19.93 22.63 Agriculture Development 0.14 2.33 2.47 Health and Social Aspects 0.09 0.64 0.73 Total Baseline Costs 2.93 22.90 25.83 Physical contingencies 0.22 1.73 1.95 Price contingencies 0.45 3.87 4.32 TOTAL PROJECT COST 3.60 28.50 32.10 a/ Net of duties and taxes Financing Plan: US$ million Z of Total (equivalent) GOS 3.60 11.21 IDA 28.5v 88.79 TOTAL 32.10 100.00 Estimated Annual Disbursements (US$ million): FY 90 FY 91 FY 92 FY 93 FY . FY 95 FY 96 Total IDA 1.50 1.50 5.50 7.50 6.70 4.; 1.50 28.50 GOS 0.15 0.25 0.40 0.50 1.00 0.85 v.t5 3.60 TOTAL 1.65 1.75 5.90 8.00 7.70 5.15 1.95 32.10 2 of Total 5.1 5.4 18.4 24.9 27.1 16.0 6.1 100.0 Economic Rate of Return: 13Z Maps: IBRD Nos. 21076 and 21077  SOMALIA FARlAHAANE IRRIGATION REHABILITATION PROJECT I. BACKGROUND A. Project Origin 1.01 The Government of Somalia (GOS) has requested assistance from the International Development Association (IDA) to finance the rehabilitation of the Farahaane Irrigation Scheme and the Qoryooley and Falkeerow barrages. The project is located in the Qoryooley district of the Lower Shebelli region. The irrigable area covered by the Farahaane ScheL.s and two barrages is about 12,600 ha and is farmed by about 5,600 families. The project would increase farmers' incomes through increased production arising from rehabilitating inoperative irrigation infrastructure, better irrigation management and strengthening of agriculture support services. 1.02 The Government began project preparation in September 1985 with the assistance of consultants and finalized preparation in October 1986 (para. 3.13). IDA pre-appraised the project in November 1986 and appraised it in September/October 1988. B. The Agriculture Sector 1.03 The Economy. Somalia is a poor country with a per capita income of about US$170 (in 1987 prices), a serious foreign debt problem, and a harsh physical environment that poses major challenges to economic growth. Its 5.7 million people (and probably an additional half million refugees) occupy some 64 million hectares of land, and the population is growing at about 3.0 percent a year. The country is located on the horn of Africa, shares its borders with Djibouti and Ethiopia to the Vest, Kenya to the South, and has a 3,300 kilometers coastline to the East and North. 1.04 The Government's relaxation of economic controls since the early 1980's, coupled with a shift from Government ownership and management toward a more market oriented economy, exchange rate adjustments, trade liberalization and the dismantling of agricultural pricing and marketing controls have helped stimulate a recovery in production and exports and a rise in per capita GDP. Growth in GDP was an estimated 2 percent per annum between 1980 and 1987, whereas growth was less than 1 percent per annum from 1977 to 1980. These economic reforms have been supported by several adjustment programs funded by the International Monetary Fund (IMF), IDA and various multilateral and bilateral donors. 1.05 However, the country continues to have serious macroeconomic problems. Export earnings never covered more than half of the value of imports in the period from 1975 to 1985. Trade deficits have been financed by foreign grants, official concessional loans, private transfers and accumulation of trade arrears. Domestic savings have generally been negative. All of the Public Investment Program is supported by donor funds. The country  - 2 - has serious external debt problems, with total debt estimated at US$1.74 billion at end 1987. Large debt service arrears have piled up. Current service obligations at around $160 million per year constitute over 90 percent of projected exports and private transfers. Budget deficits average some 10% of GDP, covered in part by foreign grants and loans. The Government decision in September 1987 to stop floating the exchange rate and place price controls at the retail and wholesale level affected IMF and IDA support, and reduced the availabilicy of foreign funds for production inputs. In mid-1988 price controls were lifted, and the exchange rate devalued to levels closer to market determined rates. This and recent discussions between the IMF, IDA and the Government have restored the economic adjustment program. A second agricultural adjustment program (ASAP II) financed by IDA (Cr. 2030-SO) was approved recently. With macro-economic adjustment programs in place, the proposed project will be able to respond to the strong incentives for food and export crop production which exist in Somalia. 1.06 Agriculture Sector. The agriculture sector provided 62Z of Somalia GDP on average between 1977 and 1987. Over this period, agricultural output grew at an annual average rate of 2.4 percent, a little below the population growth rate of 2.9 percent per annum. Per capita food production has declined only marginally. Over the 1977-1987 period, crop production has increased at an average annual rate of 5.3 percent, over twice the growth rate for the sector. This is due in part to the liberalization of marketing arrangements as well as good weather. GOS recognizes the vital importance of agricultural development. Objectives include achieving food security, increased production of import substitution crops, development of export crops and increasing livestock productivity and exports. 1.07 Rainfed cropping varies from year to year and, while nearly 900,000 hectares are reported as used for cultivation, only 500,000 to 700,000 hectares are used in any one season. The bulk of the sorghum, sesame and groundnut crops is produced under rainfed conditions. Due to the erratic pattern of rainfall, scope for rapid increases in the productivity of rainfed crops is minimal. The scope for area expansion of rainfed crops may be substantial however, and is being explored in the IDA supported Bay Region Project, the Northwest Project, and the Semi-mechanized Rainfed Pilot Project. 1.08 The Irrigated Agriculture Subsector. Flood and controlled irrigation along the Juba and Shebelli rivers occupies some 200,000 hectares, about 20 percent of the country's cultivated area. Irrigated agriculture produces the bulk of marketed food stuffs, maize, rice, legumes, and vegetables. In addition, the entire sugar output and all the bananas, from which the country derives more than 801 of its export earnings, is produced under irrigation. Livestock also depend on irrigated areas for dry season feed and water. 1.09 Somalia's irrigation potential is confined to the flood plains of the two major rivers the Shebelli and the Juba. The Shebelli originates in Ethiopia, enters Somalia near Belet Weyn and travels about 640 km before terminating in a swamp abo"t 30 km from the Indian Ocean. Offstream storage exists at Jowhar with an active capacity of 200 million cubic meters. A second offstream reservoir with a live storage capacity of about 130 million cubic meters is proposed at Duduble, upstream of Jowhar. The existing and  proposed reservoirs could provide a more uniform supply of irrigation water throughout the year if water control and reservoir regulation is properly practiced. 1.10 A variety of irrigated perennial and annual crops are grown along the Shebelli. The perennial crops include sugar, bananas and citrus grown on mainly well established large public and private irrigation schemes. The annual crops include vegetables, paddy, maize and sesame grown mainly by small farmers using flood irrigation and residual moisture. There is no system for water allocation and management although regulation structures do exist. Water allocation is practiced on an ad-hoc basis, as the river level declines in November/December. Virtually all irrigation schemes on the Shebelli are in need of physical rehabilitation. The Genale-Bulo Marerta complex is the oldest of these schemes, established with Italian Assistance in 1926. This scheme is on a fertile level plain and has excellent production potential. The proposed project is situated in this area. C. IDA Lending 1.11 IDA commitments to Somalia to date total about US$400 million consisting of 36 IDA credits. Fifteen projects are under implementation. Over thirty percent of IDA lending has been for agriculture. The ten projects in the agriculture sector under implementation include four rainfed semi- mechanized farming projects, one fisheries project, one livestock health project, one rangelands development project, one agriculture extension project, a technical assistance credit for the Baardhere Multipurpose Dam and an agricultural sector adjustment credit. In addition ASAP II was approved by the Board recently. 1.12 The performance of agricultural development projects in Somalia has been mixed, reflecting the technical and institutional constraints, and the financial difficulties faced by Government. Shortages of fund, spares and inputs affect agricultural performance. Inadequate salaries and poor infrastructure and equipment hamper the efforts of the civil service. In spite of these problems advances have been made in developing the research and extension establishment, in designing improved approaches to rainfed and irrigated agriculture, and in developing strategies for rangeland and animal health development. The agricultural sector adjustment programs have contributed to removing constraints to productive private sector development, and to providing the foreign exchange necessary to revitalize the economy. 1.13 Rationale for IDA Involvement. IDA has played a major role in assisting the Government of Somalia to make substantial adjustments in economic and financial policy to promote economic growth and food self sufficiency. IDA has also contributed to building up the basic public infrastructure needed to stimulate private sector investment. Within the key objective of increasing agricultural productivity, food production and incomes, this project would focus on rehabilitation of small irrigation systems along the intensively used Shebelli river. Increasing the efficiency of the poorly managed irrigation schemes along the Shebelli river has been identified as one of the most cost effective ways of increasing agricultural  - 4 - output. Water use efficiency can be doubled through th , type of investment. This has important implications, with the development or additional irrigated areas in the Shebelli valley now seriously constrained by lack of water. 1.14 Under this project, the capacity of the Ministry of Agriculture (MOA) to manage the allocation and distribution of Shebelli water will be strengthened. With the rehabilitation of irrigation infrastructure, the efficiency of water use by small farmers will increase. These efforts would be coordinated with the United States Agency for International Development (USAID) which plans to assist the MOA to strengthen water management in the Shebelli basin. Strengthening of MOA abilities to manage and direct the development of irrigated agriculture will also support the development of the Juba Valley and the Baardhere dam. II. THE PROJECT AREA A. Location, Climate and Water Supply 2.01 Location and Access. The project area is located in Qoryooley district of the Lower Shebelli region, about 100 km southwest of Mogadishu along Somalia's major north-south highway. The asphalt road to Qoryooley passes along the northern boundary of the project. Access to the project area is by earth road, and is relatively good, although problems are experienced during the rainy seasons. 2.02 Climate. The climate of the project area is semi-arid tropical. Temperatures are fairly constant throughout the year, varying between a high of 310 C and low of 220 C. Relative humidity is uniformly high at around 80Z. The average annual rainfall of about 470 mm is distributed across in two distinct seasons: the Gu season from April to June and the Der season from October to December. Rainfall distribution within each season is erratic which makes irrigation necessary for high yield crop production. Climatological data at Genale in Lower Shebelli is shown in Annex II, Table 1. 2.03 Irrigation Water Characteristics. The Shebelli River rises in the Ethiopian highlands and crosses the semi-desert Ogaden region before entering Somalia. It has a catchment area of about 300,000 km2 and the mean annual flow at Belet Weyn (near Ethiopian border) is about 2,200 MCM. The flow decreases as it flows towards the Juba River. The mean annual flow in the lower Shebelli just upstream of the Genale barrage close to the project area is about 1,4C0 MCM. The waters of the Shebelli do not contain toxic concentrations of ions, and salt concentrations vary between 250 and 750 micromhos/cm. This level of salinity is acceptable for the crops grown. Salinity is usually high (1,500 micromhos/cm) during the dry months of March and April. Sediment concentration is high and ranges from 50 parts per million in the dry season to more than 2000 parts per million in the flood seasons.  2.04 Water Rights. Irrigation development along the Shehelli in Ethiopia is limited. Recent studies show that the Melka Wakana hydroelectric dam recently constructed on the upper reaches of the Shebelli will not reduce water availability, and will serve to even the flow. Studies also indicate that the effect of any future irrigation development along the Shebelli in Ethiopia would be partly mitigated by the large swamps upstream of the Somalia-Ethiopian border. If an additional 15,000 ha of irrigation were to be developed in Ethiopia, the average annual flow currently reaching Somalia would be reduced by only two percent. It is unlikely that Ethiopia can develop an area exceeding 15,000 ha in the next 15 to 20 years in the Shebelli river basin, due to high cost of development, the remoteness of the area, and the country's limited implementation capacity. The proposed project is rehabilitation, which will not require additional abstractions of water from the river. B. Topography, Soils and Land Use 2.05 Topography and Soil. The project area is flat and slopes to the southwest at a rate of 7 to 8 cm per km. The soils are heavy clay Vertisols which swell when wetted and shrink on drying resulting in deep wide cracks. The soils store a large amount of water but only a small proportion is available to the plants, due to heavy clay content. The soil characteristics also limit root development and tillage. Salinity levels are not presently a problem but were noted to increase with depth. The low quality of the present irrigation facilities and poor drainage conditions indicate the need for careful water management and monitoring to avoid salinity build up. About 522 of the soils in the project area are classified as class II and 452 as class III, which makes them relatively suitable for irrigation. The soils in the project area will require careful management to maintain favorable structural characteristics and avoid a salinity buildup. 2.06 Land Use and Cropping. Only annual crops are grown in the project area. Cultivated land represents 751 of the net irrigated area of 5,100 ha for Farahaane and 7,500 ha for Qoryooley and Falkeerow. Data on land use is given in Annex III. Currently there are two levels of irrigation. Firstly there is partial irrigation for those areas with viable access to irrigation water. Secondly, there is marginal irrigation for areas which receive irrigation water only when there Is an unusual surplus of water. 2.07 Land use in the project :::^ is given in the Table 2.1 below: Table 2.1 Land Use in the Project Area (ha) Farahaane Falkeerow & Qoryoolev Maize 2800 4000 Sesame 1200 2900 Legumes 300 _ Vegetables 300 300 Watermelon 50 300 Fallow 450 _ Net Irrigable Area 5100 7500  Maize is the most widely cultivated crop followed by sesame. Maize is virtually the only crop planted in the Gu season. If the Gu season harvest is good then farmers reduce the cultivated area by 40 percent. The remaining 60 percent is planted under sesame during the Der season. Vegetables, cowpeas, mungbeans, tobacco and more recently watermelon are also grown, on a smaller scale. Crop rotation is not practiced which results in poor soil fertility and low yields. Present cropping intensity is about 1252 in the Farahaane Scheme area and 10O for the areas served by the Qoryooley and Falkeerow barrages. Cropping intensities are low. This is due to the inadequate water supply, poor management of the Shebelli waters, the poor condition of diversion barrages, and primitive conveyance and distribution facilities. About 25% of irrigable land is currently uncultivated. This will permit an expansion of the cropped area with improved water management and water availability. C. Farm Size and Land Tenure 2.08 Farm size. The farm size distribution in the Farahaane scheme area is characterized by the dominance of small parcels and a skewed size distribution. Nearly 902 of all parcels are smaller than two hectares (average size = .9 ha). Yet they account for only about 40% of the land. The 2% of all parcels which are over 30 ha account for 40% of the project's land area. These patterns are even more pronounced in areas served by the Qoryooley and Falkeerow barrage. Multiple parcel ownership is evidently widespread. Average land holding size per household is estimated to be about 1.7 ha for an average household size of 7.3 persons. Farm size distribution is summarized in Table 2.2. Table 2.2 Farm Size Distribution Farahaane Scheme Area Qoryooley & Falkeerow Barrages Holdings Farms Area Av. Farm Farms Area Av. Farm Range (ha) No. I ha 2 size (ha) No. 2 ha 2 size (ha) 0.1-2 1965 88.2 1965 38.5 0.9 3045 90.2 3045 40.6 0.9 2.1-10 215 9.7 860 16.9 4.1 280 8.3 1680 22.4 6.2 10.1-30 15 0.7 225 4.4 16.2 30 0.9 600 8.0 18.6 30.1-100 30 1.3 1650 32.3 53.2 15 0.5 975 13.0 63.5 over 100 2 0.1 400 7.9 202.5 5 0.1 1200 16.0 239.5 Total 2227 100.0 5100 100.0 3375 100.0 75u,u iUO.O 2.09 Legal Framework for Land Tenure: Land law and practice diverge sharply in the project area, as is evidently the case in the rest of the country. Formally, land tenure in Somalia is governed by Agricultural Land Law no. 73 of 1975 and subsequent decrees and amendments, most notably Law 23 of 1976. The 1975 Land Law establishes state control over all of the country's land resourres with rights to land granted in the form of variable term leases. Conditions vary depending on whether the lease is to an individual or family, or a corporate body whether public or private.  - 7 - Under the law, most of the small farmers in the project area would be eligible for 50 y.ar renewable leases of up to 30 ha. These lease rights are inheritable by immediate kin. The only permissible transfers of land are through inheritance; sale and rental are prohibited. Furthermore, only one lease per family is allowed. However, la reality, land is dealt with by most farmers as if it were private property. It is bought, sold and rented. Multiple parcel holdings are common and ownership above the allowed ceilings by individuals is encountered. All evidence for the Farahaane scheme area indicates that the incidence of land disputes is minimal. Clauses of Law 23, a decree passed in 1976 contain several articles which spell out conditions and procedures for repossessing land and establishing compensation. These are of obvious relevance to the Farahaane project. The decree also sets levels of land taxation. 2.10 Tenure security and registration: The existence of well- established and apparently cohesive communities has mitigated problems of tenure insecurity. People know and for the most part respect each other's boundaries thereby minimizing the incidence of land disputes. Nevertheless, several considerations mandate a rapid and comprehensive land registration campaign. In particular, smallholders, most of whom lack documented title, may be exposed to competing claims by those attracted by escalating land values and productivity afforded by the advent of a greatly improved irrigation network. To the extent that tenure insecurity exists it may constrain long-term investment and thus productivity. Thus, registration will be important to allow the project to achieve its goal of enhancing the productivity and incomes of small farmers. Currently, less than half the land area and 85-90Z of parcels and farmers remain unregistered. Registration is largely restricted to larger parcels over 10 hectares. Failure to register has largely been due to the lengthiness, complexity and costliness of the process. D. Irrigation and Drainage Facilities 2.11 River Diversion Control Structures. The Shebelli River has long been used for irrigation. Construction of control structures along the river started in the late 1920's and much of the flow could be controlled, if the control structures were in operating order. The Duduble flood relief facility completed in 1985 has a spillway 15 km upstream of Mahaddey Wayn. An ungated overflow weir at Sabuun completed in 1986 is used to divert water to the Jowhar Sugar Estate and to the Jowhar off-stream storage reservoir. Another barrage at Balad was completed in 1980 for the Balad irrigation project. The oldest control structure is Genale barrage completed in 1927 which serves a total area of about 24,000 ha. Most of the gates are damaged due to lack of maintenance caused by insufficient budgets, and inoperable, so water control is limited. About 16 km downstream from Genale, another barrage near Gayweerow was completed in 1980 which will be used for diverting flow to the new main canal of Farahaane scheme. About 10 and 18 km, respectively downstream from Gayweerow two more barrages named Qoryooley and Falkeerow were built in late 1950's. Gates, bridge decks and downstream protection works of the two barrages are in a state of disrepair. Both of these barrages were built to serve a total area of about 10,000 ha on both banks of the river. Effective control from these barrages is not possible. All of the schemes  - 8 - served by two barrages suffer' due to lack of controlled irrigation supply. Extensive rehabilitation work will be required to put these two structures into a safe operative condition. The last barrage on the Shebelli river is located about 7 km from the village of Kurtenwarey. It was completed in 1983 but is reported to be inoperative due to the malfunction of the gate lifting device. 2.12 The structures described above were built to provide control of the water level at key locations along the Shebelli River, and control of the amount of water diverted through the main canal regulators. In addition to the areas irrigated by gravity from these control structures, about 300 pumping installations abstract water directly from the river for irrigation of small schemes of 20-200 ha. These facilities (gravity and pumping) were built to serve a total area of about 132,000 ha. Of the 132,000 ha cultivated about 124,500 ha are planted in annual crops (maize, sesame, sorghum, rice, pulse crops and vegetables). The remaining 7,500 ha are in perennial crops, (sugarcane, bananas and some grapefruits). All of these areas receive inadequate supplies of water due to the limited run-of- river water supply from the Shebelli river during the dry months of January to March. Also the distribution systems are in very poor condition due to lack of maintenance, insufficient field staff caused by budgetary constraints. Management of water distribution is practically impossible. 2.13 River Management and Water Availability. The proposed project lies at the downstream end of the Shebelli river and is vulnerable to upstream management of the water supply particularly between November and December, when the Der season crop of sesame is maturing. Proper management of the Jowhar off-stream reservoir is crucial during this period. The rapid expansion of the irrigated agriculture area along the Shebelli in recent years (upstream of Qoryooley) threatens the viability of downstream schemes; of particular importance is the uncontrolled proliferation of individual farmers pumping water from the river. A detailed simulation model would be developed under USAID, Shebelli Water Management Project (SWMP) to address this issue. The simulation model would take into account the characteristics of river flows, as well as the requirements and features of the irrigation schemes to develop required water supply releases at each diversion point, and from Jowhar reservoir. The implementation and management of the river basin is a difficult task. Successful management of the river depends on the development of additional storage facilities upstream such as proposed Duduble reservoir. During the next few years the availability of water to the project area during the months November and December can only be guaranteed if following points are carefully considered (see para 3.35 below): (a) Expansion of the irrigated areas upstream is contained through strict licensing of pumps; (b) Expansion of sugar cultivation for Jowhar sugar factory is restricted to the maximum area cultivated during the last five years, about 2,000 ha; and (c) An operation rule curve for monthly releases from the Jowhar reservoir is established and enforced, particularly during the period of November to January.  2.14 Irrigation Facilities of the Farahaane Scheme. The scheme covers a gross area of about 6,200 ha between the Shebelli river to the north, the Wadajir canal to the east, the villages of Modhulow and the Sisab canal to the south and the Bakore canal to the west. Currently the area is commanded by the Qoryooley barrage and served by the Wadajir canal, the Fi.rahaane primary canal and three secondary canals offtaking from the left bank of the Shebelli. All of these canals are privately owned and a number of users Associations operate and maintain all these facilities from the river diversion point to the farm level. The Wadajir canal also serves areas to the south of the project area. There are few control or regulation structures and existing structures are inoperable. There is no drainage system. Excess rainfall or irrigation water either infiltrates into the soil or ponds in the lower areas until it is evaporated or absorbed by the soil. 2.15 Current irrigation practice is to use basins, filled to a depth of about 25 cm. This results in one irrigation in the Der season and two during the Gu season. The schedule is based more on water availability than on crop water requirements. Irrigation efficiency is estimated at a very low 20 percent, due to the lack of control structures, inadequate maintenance of canals and uneven distribution of water in the field. Maintenance of the canal system is poor. It is carried out by three village committees and their respective canal based water users associations. Water charges are based on the area irrigated along a given canal. Farmers pay these charges in cash or kind. Local participation in water users organizations and levying of water charges is an encouraging beginning to a system of user financed system operation and maintenance. E. Agricultural Services 2.16 Extension. The second phase Agricultural Farm Management and Extension Training (AFMET) supported by IDA (Cr. 1794-SO), under the MOA, remains responsible for extension. The AFMET project has established an extension service based on the Training and Visit methodology that covers eight of the ten regions in which arable agriculture is important. AFMET has succeeded in gaining the confidence of farmers and in demonstrating practices that result in profitable yield increases. Extension service staff include 7 Regional Extension Officers, 19 Subject Matter Specialists, 24 District Extension Officers, and 216 Field Extension Agents (FEAs). The ratio of the number of farm families to FEAs is about 800:1. At present one District Extension Officer at Qoryooley and four FEAs provide extension services in the Farahaane area. 2.17 Agricultural Research. The Directorate of Research (DR) of the Ministry of Agriculture (MOA) is responsible for crop research, while the Ministry of Livestock, Forestry and Range handles livestock research. The DR is responsible for the Central Agricultural Research Station (CARS) at Afgoi and for regional stations at Gelib, Bonka and Aburrin. CARS and Gelib deal with irrigated agriculture. CARS is of particular importance to the project area. Among its major achievements are the development of improved composite maize varieties and introduction of tomato and onion  - 10 - varieties. However, the present agricultural research by the station is inadequate and lagging behind the requirements of agricultural extension services. 2.18 The Second Agricultural Extension Project (Cr. 1794-SO) is strengthening agricultural research through (i) the establishment of a Research Directorate headed by a high level Director within MOA supported by an internationally recruited Research Advisor; (ii) support for on-going rainfed agriculture research at the Bonka station; and (iii) establishment of a research support fund, to be used to commission adaptive research focussing on farmers priority problems. 2.19 The USAID supported Shebelli Water Management Project (SWMP) supports irrigated agriculture research at CARS. Promising results will be subject to on-farm verification trials in Shalambood, organized in collaboration with extension personnel at Genale Extension Training Center. Due to proximity of the Farahaane scheme area to Shalambood there is no need to duplicate similar research in the project area. AFMET will disseminate proven results of SWMP research in the project area. 2.20 Livestock. There are both settled and semi-nomadic herds that range in and around the project area. During the Jilal dry season, (December to March), the herds enter the project areas. At the onset of the Gu season, (April) they move towards the Merka and Brava coastal areas, and in-land towards the Bay region. There are also herds of cattle, sheep and goats which remain in the project area year round, feeding on pastures and crop residues. During the dry season there are some 80,000 cattle, 8,000 sheep and goats and 500 camels in the project area. During the wet season this declines to 20,000 cattle, due to trypanosomiasis infection. About 50Z of farmers in the project area own livestock, mostly cattle, with an average of 9 head per livestock owning household. There is no tradition of using animal-drawn implements in the project area due mainly to the presence of tsetse flies. The National Trypanosomiasis and Tsetse Control Project jointly funded by the British Overceas Development Administration and the Arab Fund for Economics and Social Development has completed surveys of tsetse infested areas, and has completely eradicated tsetse from the Shebelli valley north of Jowhar. Funds are being sought for a tsetse control project on the Lower Shebelli. Where this becomes effective there could be large influx of cattle into the project area. Possibilities of integrating fodder crops with irrigated food crops have to be explored to avoid potential friction between the two systems. 2.21 Marketing and Storages. The Agricultural Development Corporation (ADC) was established in the 1970s as an autonomous public enterprise under the authority of the MOA as the sole authorized buyer and seller of domestic food grains. Grain marketing was liberalized in the early 1980s. Farmers are no longer required to sell to the ADC. At present ADC operates as a buyer of last resort, at a published minimum price. Th.is price was SoSh 32 per kg of maize in the Gu harvest of 1988. The liberalizing of the food grain market has brought large income gains to the farmers in the project area. There is a small ADC facility of 5 warehouses and 2 storage areas with a total capacity of 7,000 tons at Qoryooley serving the project area.  - 11 - F. Agricultural Inputs 2.22 Fertilizers. Use of fertilizers in Somalia, almost exclusively urea, has been limited to a maximum of 7,000 to 8,000 tons. About 3,000 tons per annum is used in the banana plantation. This implies about 7 kg/ha of cropped land compared to an average 18 kg for the rest of Africa. Urea was produced locally at an inefficient parastatal fertilizer plant whose cost of production is higLer than world market CIF price. Donor foreign exchange programs and Government supported Somalfruit export earnings from the banana industry finance urea imports. Chemical fertilizers and other chemical inputs are not sold commercially in or near the project area. The market in inputs has yet to develop in the country. The use of chemical fertilizers, pesticides and herbicides is being promoted in the Lower Shebelli region through a FAO fertilizer project, and a UNCDF/UNDP funded agricultural credit project operated by the Commercial and Savings Bank of Somalia. In Gu 1988, 3,320 farmers participated in the scheme. A total of 110 tons of seed, 384 tons of urea, 64 tons of NPK, 7,700 kg or basudin and 6,400 liters of herbicides were distributed on credit. 2.23 Pesticides and Herbicides. The Plant Protection Directorate of MOA imports pesticides and herbicides. Due to shortage of funds, the quantities imported are inadequate to meet farmers' requirements. Pesticides are sold to farmers at a discounted prices from district stores. The Directorate currently handles about 50 tons of chemicals every year distributed into 10 types of pesticides, 4 types of fungicides and 4 types of herbicides. DDT, BHC, dieldrin, addrin and endrin are on the banned list and are not imported. The Directorate advocates integrated pest management. The current level of pesticide and herbicide use is extremely low. 2.24 Seeds. There were no seed multiplication or certification facilities in Somalia until 1970. A cotton Seed Multiplication Center (SMC) was established near Afgoi in 1970 which was transferred to MOA in 1972. The center was re-established for multiplication of maize and other annual crops in 1978 as a part of a UNDP/FAO assisted project. From 1980, the SMC at Afgoi has continued production as a FAO trust fund project supported by Denmark (DANIDA), with a total area of 135 ha, of which 60-100 ha are irrigable. The planted area in the 1988 Gu season was 45 ha of maize, producing 80 tons of maize seed of Somtux variety (1.85 MT/ha graded seed equivalent). At present all essential physical facilities for seed production are available at this station. While breeder seed should normally be supplied by the Agriculture Research Institute this linkage is not effective. Multiplication to produce certified (commercial) seed through contracted farmers is practiced. Lack of seed inspection and certifiLation staff and logistics are a constraint. Purification of the local white strain of sesame continues. Commercial seed may be available from Gu/Der season of 1990. Under a UNDP/FAO assisted project cotton seed multiplication and extension program would commence from end of 1988. Under this project breeders seed produced in Jowhar would be multiplied in the SMC which would be further multiplied through contract growers in Lower Shebelli to produce commercial seed.  - 12 _ 2.25 The current low level of input use among small farmers is a disincentive to growth in input supply. Importers and suppliers are, for the most part, still cautiously evaluating input demand prior to accumulating significant inventories of fertilizers, pesticides and other inputs. Sales of inputs at large discounts by MOA further discourages private investment in this area. Limited supply of foreign exchange at official exchange rates creates a greater demand for fast moving imports in preference to slower moving agricultural inputs. There is a clear need for increased amounts of foreign exchange to finance agriculture inputs. Shortage of working capital, credit, and knowledge of technology have restrained input demand growth while shortage of credit and low-level demand have restrained input supply. The net effect is a failure to achieve full agricultural growth potential. A push-pull interventior. strategy is needed. The catalytic elements of such a strategy would include: (i) elimination of Government subsidies, so that all inputs are sold at market prices; (ii) increased demand due to improved irrigation system and extension work; (iii) increased revolving seasonal credit for farmers; (iv) good grain markets, and (v) investme-it credit to assist private sector input suppliers in entering the market. These countrywide issues are being addressed in the recently approved Second Agricultural Sector Adjustment Project (ASAP II). G. Health and Social Aspects 2.26 Malaria and Schistosomiasis Disease Control. Malaria is still the major health problem of the country. Plasmodium falciparum is the predominent species (79.52). The Anopheles arabiensis mosquito is the main vector. Plasmodium falciparum resistant to chloroquisue has been reported from the Lower Shebelli region since 1986. Along Sbebelli and Juba rivers perennial hyperendemic malaria foci exist. 2.27 Urinary schistosomiasis (Schistosoma heamatobium) or 'Kaadi Dhiig" as it is known in Somali is endemic in Shebelli and Juba river valleys. Bulinas abyssimicus is the only snail intermediate host and its preferential habitat is standing water bodies containing water lilies (Nymphaea lotus) and other aquatic plants. Most infections occur just after the two main rainy seasons. Under a WHO project 14 villages in Qoryooley district surveyed in 1977 indicated 48.2Z prevalence of S. heamatobium. In 1978, the WHO project launched a full-scale control program in Qoryooley and Merca districts. Infected people were treated with metrifonate and snail-infested water bodies were sprayed locally with tin- and copper-based slow release granules. Overall prevalence rates dropped after a few years but are creeping up again. In 1987 a WHO consultant found a 60Z prevalence rate of urinary schistosomiasis amongst screened primary school children in Farahaane village. The prevalence rate is low in Haduman village of the project area due to lack of standing water in the village. But with many depression pools, schistosomiasis is relatively high in Madhulow village of the project area. Overall, it can be concluded that malaria and schistosomiasis constitute a serious public health problem in the project area. Presently schistosomiasis control activities are being conducted in four districts of Lower Shebelli, including Qoryooley. Technical aspects of schistosomiasis control currently lack: (i) training; (ii) community participation; (iii)  - 13 - laboratory diagnosis; (iv) chemotherapy with antischistosomal drugs such as metrifonate and praziquantel; and (v) environmental management. Inadequate funds restrict transportation at.d logistical support to implementation of control of schistosomiasis as well as malaria in the project area. 2.28 Women's Development Activities. It is necessary to address social issues among beneficiaries, particularly those affecting women. Household water situation has improved through recently completed water points under a Japanese-assisted program in the villages of Farahaane and Bulo Sheikh. A provision has been made under the project to provide imilar facilities in Madhulow village. The increased production will demand more time in women's already overburdened daily schedule. Women i'pend much time daily in transporting heavy loads of fodder, foodstuffs, fuelwood and offspring. Introduction of simple push carts made from locally avai'lable materials and tailored to women's typical loads will help. Women give high priority to home improvements, so ideas using locally available material can improve quality of family life and may generate income in a variety of home improvement activities. Home weaving and tailoring is another activity recently introduced. Training and orientation would be needed to introduce those activities. The Women's Education Institute is active in the project area and can provide assistance in the training aspects. H. Institutions 2.29 Ministry of Agriculture. MOA and its associated agencies have the major role in agricultural development of the project area. Development and management of surface water resources and irrigation, and administration of land, agricultural research and extension are exclusively the responsibility of MOA. Supply of agricultural inputs such as agricultural machinery services, seeds, pesticides, and fertilizers, is also handled by MOA parastatals and autonomous projects under the Ministry in competition with the private sector. The role of MOA in providing these inputs is gradually diminishing as the private sector develops. Assistance in grain marketing, purchasing and storage is provided by ADC. 2.30 In each administrative region and district, the Ministry is represented by an agricultural coordinator. The MOA parastatals and directorates concerned with the project activities would be ArMET, and the Directorates of Plant Protection and Research as described in previous paragraohs. The Department of Land and Water Resources will play a key role in project implementation. It has been elevated to the status of Directorate of Irrigation and Land Use (DILU) under the USAID-supported SWMP. It is headed by a Director, who reports to the Vice Minister, Services through the Director General. 2.31 Directorate of Irrigation and Land Use. DILU will initially be composed of four divisions: Shebelli River Management Division (SRMD), Regional Water Resources Allocation Division (RWRAD), Land Evaluation and Use Division (LEUD) and Finance and Administration Division. Existing personnel have been absorbed into DILU and new graduates will be recruited for the expanded organization.  - 14 - 2.32 SRMD will, over time, become responsible for the zehabilitation, construction, maintenance, operation and management of: (i) all the barrages and weirs located on the main stream of the Shebelli River including the Kurtanwarey barrage and the Balad barrage; (ii) the off- stream storage reservoirs and flood control facilities; and (iii) the head regulators controlling the discharge of water from Shebelli into the main canals for irrigation. RWRAD will be responsible for the maintenance of the primary and secondary irrigation canals along the Shebelli that is currently being carried out as the "Desilting Project", including repair and operation of the regulators and all of the turnouts and miscellaneous structures of these canals through the region and district offices and participat'on of water users associations. LEUD will take over all responsibi.ities of the former DLWR Land Resources and Registration office, including land registration. It will benefit from a major UNDP/FAO-funded project "Land Resources Survey for Land Use Planning". The Finance and Administration Division will serve as a staff office charged with all personnel, administrative and financial control functions for the Directorate. 2.33 Credit Institutions. There are two banks that offer credit facilities to the agricultural sector - the Commercial and Savings Bank of Somalia (CSBS) and the Somali Development Bank (SDB). 2.34 CSBS, owned by Government, is the only commercial bank in the country. CSBS deals only in short-term credit, i.e. working capital for inputs for crop production up to a period of one year. Interest rates for short term credit are now 50? per annum, up from 15% per annum in 1987 and early 1988. There is a branch of CSBS in Qoryooley serving the project area. This branch makes short-term loans for purchase of inputs to large scale farmers - usually banana farmers - as well as loans to small farmers. The security requirements for qualifying for these large loans are strict and the farmers must demonstrate adequate collateral and an ability to pay. The loan requirements are verified by the managers and the applications forwarded to the central branch in Mogadishu where the decision to grant or deny the loan is made. Lending from the Qoryooley branch for large farmers has been around US$100,000 per year, to between 15 and 25 farmers. 2.35 CSBS, in conjunction with financial assistance from the United Nations Capital Development Fund and technical assistance from UNDP/FAO, in 1983 began a revolving fund for providing seasonal inputs in kind for small farmers having less tharn 12 ha. Eligible recipients are those with registered land, guaranteed by village headman and extension agent endorsement. The program is administered through a National Inputs and Credit Committee and Regional Inputs and Credit Committees consisting of representatives from the CSBS, MOA, MOF and National Cooperatives. During Gu, 1988, 110 tons of somtex seed, 384 tons of urea, 7,700 kg of basudin, 64 tons of NPK and 6,400 liters of herbicides were distributed to 3,320 farmers. The Merka branch covering the project area is a participant in the UNDP/FAO small farmers input credit program. The loan applications are reviewed by the Regional Inputs and Credit Committee. Following review, the National Inputs and Credit Committee meets and agrees on which applicants will be granted credit. The manager then signs a letter of authorization which is forwarded to the FAO sponsored store in Bulo Sheikh for Farahaane where the seeds and fertilizers can be obtained. During Gu, 1988 only 17  - 15 - farmers in the Farahaane area participated in the program. The repayment of loans is quite good at about 90X . Its major weakness has been the meager number of farmers reached, over-centralization of the loan approval process, subsidies in the prices charged for inputs, and the narrow range and low quality of inputs delivered. 2.36 Long term financing is available from the Somali Development Bank. Agriculture loanb over 2,000,000 SoSh require a feasibility study. The maximum period for loan terms is five years, which is insufficient for long-term development projects. The rate of interest on loans is now between 18 and 21 percent per annum depending on the term and nature of activities to be financed. The liquidity of the SDB has been a difficulty and its capital was recently increased to SoSh 2.4 billion. Recent changes in its mandate will permit SDB to provide short term loans in the productive sectors, including agriculture. 2.37 Ministry of Health (MOH). The MOH is responsible for dealing with all aspects of health problems in the country. The GOS has adopted a national strategy for health care for all by the year 2000 which places priority on Primary Health Care (PHC) approach. PHC programs are now under way in 13 of 18 regions in Somalia. At the Ministry level, an office of Primary Health Coordination has been established. It is responsible for national coordination of bilateral and multilateral support of PHC as well as preparation of training curricula, community health worker and traditional birth attendee manuals, and training of teams at district levels in two national training schools. This program will be implemented at village level through health posts and coordination at the district level by the District Medical Ofricer and at the regional level by the Regional PHC Coordinator. Since Primary Health Care is a national policy, many governmental and non-governmental agencies are supporting the program. In Lower Shebelli, the WIIO assisted program is coordinated by WHO staff with the regional PHC coordinator. 2.38 PHC is well developed to deal with malaria. The Community Health Workers (CHWS) at village posts are frequently provided with chloroquine and aspirin to treat malaria symptoms. Non-responding patients are sent to the district hospitals where quinine and fansidar are often available. A malaria unit laboratory exists in Qoryooley where blood slides are analyzed to aid in treatment. however, the CHWS are not provided with any drugs to deal with schistosomiasis and even at the district level, the more effective one-dose treatment drug praziquantel is not available. CHWS should be trained (a) to take, stain and examine blood slides; (b) to examine water bodies for mosquitos or aquatic snails; and (c) to perform local spraying to control the intermediate hosts. The laboratory staff at the district level should be trained to diagnose malaria and schistosomiasis.  - 16 - III. THE PROJECT Objectives 3.01 The main objectives of the proposed project follow the Government's development and food production strategy for the agriculture sector. Food production would be raised by improving the productivity of about 5,600 smallholders in the Farahaane scheme and contiguous areas served by two existing barrages. Such improvements would be achieved though better irrigation management, higher cropping intensity, strengthened services such as extension, input supply, on-farm trials and demonstration, improved incentives and cost recovery mechanisms. A. Project Description 3.02 The project would include: a) Irrigation Development (i) Rehabilitation works and construction of various facilities 1) Rehabilitation of the existing Qoryooley and Falkeerow Barrages and repair of structures on both river banks between these two barrages serving as direct diversions; 2) Rehabilitation of existing primary and secondary canals (50 km) including replacement of water control and distribution structures; 3) Construction of a new Gayweerow primary canal (7.4 Iin) and new secondary canals (about 12 km); 4) Rehabilitation and/or construction of tertiary canals to serve quaternary blocks of 10-12 ha size including two pilot water management demonstration tertiary units (about 100 hia) to monitor and improve water management; 5) Construction of about 50 km of primary and secondary drains and provision of a new drainage pumping station at the end of the primary drain with supply and installation of pumps and diesel engines; 6) Provision of tertiary drainage for a low area of about 250 ha around the Farahaane village with high water table to demonstrate and closely monitor the effectiveness of drainage in lowering the water table; 7) Provision for about 20 km of coral surfaced road, connecting four villages and major project facilities of the scheme; and  - 17 - 8) Construction of a field office, workshop/store, five staff houses, a guest house at Qoryooley and eight operator quarters at various locations within the Farahaane scheme. (ii) Vehicles and Equipment 1) Procurement of maintenance, survey and office equipment; and 2) Procurement of project vehicles in two batches and furniture. (iii) Surveys, Mapping and Investigations 1) Aerial photography (1:10,000 scale) covering about 40,000 ha and a topographic map (1:10,000 scale) with 1.0 m contour interval for the areas of lower Shebelli not covered in previous surveys; and 2) Strip topographic maps (1:2,000 scale) along the proposed alignment of tertiary laterals for an estimated length of about 250 km. (iv) Implementation Assistance 1) Revision of Tinder Documents for the main ICB civil works contract (retroactive financing up to US$50,000); 2) Engineering services for construction supervision, and development of a drainage master plan for the lower Shebelli area including economic justification and detailed design for priority drains; 3) Specialized services and studies related to water management (pilot), monitoring of drainage effectiveness, water users association organization and assessment of future role in the O&M activities, assessment of water charges, mid-term review and completion report; and 4) Engagement of an advisory team to assist DILU during project implementation composed of three advisers in the field of engineering, finance/procurement and irrigated crops. (v) Institutional and Training 1) Salaries for additional senior staff and professionals engaged on contract terms and project allowances permissible under GOS rules;  - 18 - 2) Incremental operating costs for the project field office and the headquarters advisory unit, including operation of vehicles; and 3) On-the-job training for the project field office and MOA staff associated with the project, two graduate study scholarships in irrigation engineering and water management and short term study tours abroad. b) Agriculture Development (i) Construction of various facilities and works 1) Construction of an extension/training facility in Farahaane village, two houses for the field extension agents and rehabilitation of an existing store in Qoryooley for plant protection activities; 2) Land leve'lling for the proposed rice area (250 ha) and light levelling covering about 250 ha of fallow area; 3) Provision for concrete drying floors; and 4) Provision for promotion of agro-forestery activities. (ii) Eqtiipment, Vehicles and Input Supplies 1) Procurement of plant protection equipment/clothing, hullers and threshers for rice cultivation; and 2) Purchase of agricultural inputs. (iii) Cadastral Surveys and Land Titling 1) Cadastral surveys, maps and details covering about 6,000 ha gross area of the Farahaane scheme; and 2) Assistance to GOS in simplification and issue of land titles to all landholders within the Farahaane scheme. (iv) Monitoring and Evaluation Baseline surveys covering agricultural, water management and social aspects of the project with continuous monitoring and periodic evaluation primarily for the Mid- Term Review and Completion Report. (v) Agronomic Trials On-farm trials and demonstration for newly introduced crops such as rice, cotton, forage and vegetables. (vi) Specialized Services  - 19 - Specialized services and studies related to land tenure, input supply, agronomic trials and integrated pest management. (vii) Implementation Assistance 1) One vehicle and two motorc cles each to AFMET and the Plant Protection Directorate for project activities. 2) Incremental operating expenses for vehicles and project allowances for staff engaged in the project; and 3) A graduate scholarship in agriculture aFpects of water managemer.t, study tours and on-the-job training. c) Health and Social A3pects (i) Construction of a field laboratory at Qoryooley and four health posts; (ii) Annual provision of drugs and chemicals for spraying and treatment of diseases covering 14 villages in the project area; (iii) One vehicle for the project coordinator and a motorcycle for the laboratory technician in Qoryooley; (iv) Basic laboratory equipment and other equipment and supplies needed for annual screening survey; (v) Incremental operating expenses, including annual screening survey, etc; (vi) Short-term specialists engaged during annual screening survey; (vii) A drinking water supply system for Madhulow village; and (viii) A family affairs officer, a motorcycle, training and demonstration of various women's development activities in three villages of the Farahaane scheme. B. Detailed Features 3.03 Water Requirement. The water requirements for various crops were calculated using the modified Penman method. This method taKes into account monthly crop consumption, rainfall, leaching, a farm application efficiency of 60 percent and a conveyance and distribution efficiency of 70 percent. Total water demand from Sbebelli River for the proposed cropping pattern in Farahaane Scheme of the project area is 51.66 million m3 (Annex II, Table 2).  - 20 - 3.04 Water Availability and Demand. A preliminary water balance based on 75 percent reliability stream flow data at Awdegle gauging station was carried out, which is summarized in Annex IT, Table 3. The water balance at Gayweerow barrage shows an annual deficit of about 91.1 million m3 with monthly deficit of 20.1, 33.1 and 17.6 million m3 during the months of December, January, February and March respectively. Jowhar reservoir has a live storage of about 200 million m3, so the annual as well as monthly deficit can easily be met through Jowhar releases. 3.05 Qoryooley and Falkeerow barrages. The aim of rehabilitation is to retain, repair and modify structural components so as to protect the existing structures from further effects of scour. Remedial works would include structural improvements to accommodate new lifting gates, roadbridge, decks, stabilizing of existing large scour pools by constructing a properly designed concrete stilling basin and protection works immediately downstream of the barrages. New gates will be installed by extending existing piers upstream for sufficient length to accommodate a walkway and two stoplog grooves upstream and downstream of the walkway. New lifting gates have been designed as counter balanced, wheel and axle type and manually operated. In order to provide a better control of river diversion, the gates of _ntakes structures on both banks of the river just upstream of the barrages would also be repaired or replaced. Most of the works at the barrages would be undertaken in the low flow season between December and March, which would require a well planned intensive program at those times. 3.06 Farahaane - Main and Secondary System. The improvements would include the construction of a new Gayweerow primary canal 7.4 km long with an offtake just upstream of the Gayweerow barrage. The canal would run parallel to the river and would serve about 3,100 ha. The existing Wadjir canal will serve area on its left bank and will not be used to feed the project area. Instead a new parallel secondary canal would be constructed. The existing Farahaane primary canal Skm long will be rehabilitated to serve about 2,000 ha in the western part of the project area. Existing Bokora and Sisab canals primarily serve areas on their right banks outside the project area. Ten secondary canals for a total length of about 43 km would generally follow the alignment of existing canals from north to south. About 12 km of secondary canals would be ..ew construction. The improvements would include enlargement of canal cross sections to accomiaodate the peak designed flow, provision of sediment settling basins in the initial reaches of two primary canals and provision of new water regulating and delivery structures. Inspection roads 4 m wide would also be provided along one side of primary canals and 3 m wide along larger secondary canals with flow capacity exceeding 0.4 cms. Gated head regulators and broad-crested weir type measuring structures would be provided at the river intakes for the Gayweerow and Farahaane primary canals. A gated cross regulator would be built on the Gayweerow primary canal just downstream of the Wadajir canal and a new secondary canal to provide better water control. All other cross regulators on primary and secondary canals would be of fixed-crest duckbill type configuration. Secondary canal head regulators would comprise single or twin gated pipe inlet sections and a broad-crested weir measurement device at the downstream end.  - 21 - 3.07 Tertiary and quaternarY system. Tertiary canals with turnouts from secondary and in some cases from primary canals would serve areas of about 25-60 ha. Tertiaries would be split into quaternary blocks of 10-12 ha. The construction of quaternaries (para 4.04) would be the responsibility of farmers through water users associations. Tertiary laterals would be maintained by the farmers once they are established. Tertiary canal head regulators would be of similar design as secondary canal head regulators, although built to a smaller scale. Checks to control and regulate flow would be precast 3 piece structures, bottom slab, two side walls with slots at upper end for flashboards. 3.08 Drainage system. The drainage system would comprise quaternary and tertiary drains as infield drains and the secondarJ and primary drains forming the main disposal system. The primary drain about 5 km long would run east to west parallel to the existing sisab canal and would discharge into the Bokora canal using the new drainage pumping station. Ten secondary drains with a total length of about 48 km would run north to south and discharge into the primary drain. Primary and secondary drains have been designed on basis of 1.2 m deep tertiaries which would be deepened in later years to accommodate required subsurface drainage at the farm level. About 20 km of tertiary and quaternary drains would be constructed only for limited low lying areas near the village of Farahaane where the water table is high and in the demonstration pilot area of about 100 ha to test the spacing and depth of open drains. The construction of tertiary, quaternary and farm drains for the remaining area will be postponed to a later phase until water table levels rise to 2-3 m depth in the area. 3.09 The drainage system is designed to evacuate peak flow of a flood of 5 year recurrence period and 24 hours duration with a maximum of four days ponding on the fields. The pumping station is designed with a provision of four 1.2 CMS capacity vertical axial or mixed flow pumps to deliver the design peak of 4.8 CMS against a maximum static head of 6 m. Each pump will be powered by a 150 kw diesel engine. Provision will be made for bulk storage tanks to adequately store fuel required for each flood season. The drainage water will be pumped into the existing Bokore canal, therefore it is necessary to ensure that the quality of the drainage water will not be injurious to downstream users. The quality of the drainage water would be monitored from the beginning of the project and if required the drainage water will be diluted with river water flowing down the Bokore canal. To ensure the quality, assurances were obtained at negotiations that daily water samples will be taken by MOA in the primary drain upstream of the pumping station and in the Bokore canal downstream to check water salinity during the pumping period, that a record of the salinity, dilution from the river will be kept and a report submitted for IDA review by March 31 and September 30 of each year. 3.10 A monitoring system to closely watch water table fluctuations will be critical. Evaluations of the observation wells and piezometers installed adjacent to 2 m deep drains would indicate drawdown potential and would assist in future determination of spacing of subsurface drains or deep open drains for water table and salinity control. The monitoring of water table fluctuation will also provide advance warning of water table rise in isolated areas thus allowing time to design and install additional deep open drains or subsurface drains. About ten observation wells and twenty piezometers will be  - 22 - installed under the project. Five observation wells would be located at one km intervals along the primary drain and the remaining five at low locations of five critical secondary drains. Piezometers will be installed at one km interval along the primary drain in between observations wells and along the secondary drains 2 to 3 km apart. The top of the observation wel'ls and piezometers would be marked with a permanent concrete slab of 0.5x0.5 meters and tied to national bench mark. MOA would keep a bimonthly record of these observations, evaluation of which would be submitted in a short report form semi-annually to IDA for review and comment. 3.11 The potential for waterlogging and salinity build-up is real throughout the lower Shebelli basin. Excess surface water removal and flood control are also important considerations. An outfall drain is needed for the entire lower Shebelli. A drainage master plan would be developed under the project. 3.12 About 20 km of existing major earth roads connecting the Qoryooley and Falkeerow barrages to Farahaane village and the proposed drainage pumping station, and the villages of Haduman and Madhulow, would be surfaced with coral stone during the third year of project implementation. These roads would have a surfaced width of 4 m with 1 m berm on each side and coral stone surfacing of 20 cm thickness over a raised embankment of about 50 cm above the adjacent ground level. 3.13 Status of project preparation. A feasibility report for the Shalambood (5,000 ha) and Farahaane (5,000 ha) schemes was completed in October 1986 by USA consultants under an IDA Project Preparation Facility (PPF) advance (P301-SO) of US$1.0 million. The feasibility report was reviewed by IDA, IFAD and USAID. An IDA/IFAD pre-appraisal mission visited the area in November 1986 and recommended IDA/IFAD consider participating in the rehabilitation of the Farahaane scheme and the barrages at Qoryooley and Falkeerow. USAID has committed US$50 million to finance the rehabilitation of the Shalambood area in two phases. Phase I focuses on Shebelli river basin management, restoration of the Shalambood scheme regulating structures and adaptive irrigated agriculture research. After the pre-appraisal mission, another advance under the PPF in an amount of US$500,000 (P301/1-SO) was approved in October 1987 for detailed design and preparation of tender documents. Sir M. McDonald and Partners, consultants, of UK completed the design and submitted draft tender documents in April 1988. Final prequalification documents for major ICB civil works contract became available in November 1988, which would allow the process of tender processing to be completed before credit effectiveness. Due to the changes made during appraisal, some revision and updating of tender documents are required. As additional funds are not available under the PPF, these changes would be made and consultants paid after credit effectiveness, thus permitting early award of the contract. The project would finance cadastral surveys, issue of titles, procurement of equipment and vehicles, development of a drainage master plan for the lower Shebelli and planning of additional on-farm works. Detailed documents related to procurement of these works and services would be prepared during the first year of project implementation.  - 23 - C. Agricultural Support Services 3.14 Agricultural Extension and Research. Agricultural extension in the project area would be carried out by AFMET in collaboration with the scheme agricultural staff. The number of FEAs in the Farahaane scheme area has been increased from 3 to 4 in view of the increased agricultural development program envisaged with improved irrigation. The proposed project would provide 2 motor cycles and 2 houses and the Second Agricultural Extension Project (Cr. 1794-SO) is providing 2 motorcycles and 2 houses, so that each of the four FEAs of the Farahaane scheme area has a motorcycle and a house. Six FEAs cover the area on the right bank upstream of the Qoryooley barrage and on both banks between Qoryooley and Falkeerow barrages. The FEAs would receive in-service training at Genale Extension Training Center and Afgoi. Training would focus on irrigation, water management, soil management, and new crops to be introduced in the project area. 3.15 The project would provide funds for conducting on-farm trials based on the technical packages developed under the USAID/GOS funded research under SWMP. Funds would also be provided for demonstrations and field days in the project area by the FEAs with the assistance of project agricultural staff. 3.16 The project would provide funds for upgrading the plant protection store at Qoryooley, procurement of plant protection equipment and protective clothing and training of plant protection staff in safe handling and transport of pesticides. The project would also provide funds for establishment of an "extension demonstration center" for cotton cultivation and construction of threshing floors and procurement of threshers, hullers and sickles for rice cultivation. 3.17 Agricultural Credit and Inputs. The project would stimulate demand for agricultural inputs. The demand for imported agricultural inputs from this project is expected to be satisfied in the medium term (5 to 10 years) by the private sector. The large quantities of foreign exchange made available under various structural adjustment programs (such as ASAP I) will be available to the private sector for purchasing inputs for agricultural production. Private sector participation in input supply, however, would take time to develop. Thus, at the beginning, the project would contract the CSBS department for Seasonal Credit for Small Farmers, which is already engaged in the importation, stocking and distribution of chemical agricultural inputs, to import and sell inputs for the Farahaane region. Project funds would be put into a Rotating Inputs Fund in CSBS, with which the appropriate inputs would be imported. Inputs from the fund would be sold for cash. The CSBS could finance their purchase on credit if desirea (see below). Input prices would be set so as to encourage the development of a retail trade in inputs in the district. Prices would be comparable to market prices in the region. A 15% discount would be given to wholesalers who committed themselves to sell in the district. In the absence of a local market in the input, the retail price would be based on the purchase, transportation and handling costs, with foreign costs calculated at the market rate of exchange. A margin of 202 would be added to reflect the returns to trade in these goods, and provide an incentive for the development of a retail trade. This pricing policy would be applied to the Seasonal Credit for Small Farmers.  - 24 - 3.18 The possibility of contracting the inputs supply operation to private wholesalers would be investigated. Such a contract would be established to encourage competition in privately supplied inputs. Once private trade had started carrying agricultural inputs in local stores, the project association with CSBS would be discontinued, and the Rotating Inputs Fund would be returned to the Central Bank. An agreement between the Ministry of Agriculture and the CSBS would have to be signed prior to putting the inputs supply mechanism into operation. Assurances were obtained at negotiations that: (i) inputs procured under the project for use in the Farahaane area would be sold at open market prices; (ii) prior to any disbursement by the Association for the provision of inputs under this project, MOA and CSBS would have signed an agreement satisfactory to the Association covering operation of the Revolving Inputs Funds; and (iii) an assessment of the functioning of the inputs supply mechanism, and the desirability of continuing it, would be completed by December 31, 1992, and an action plan agreed with initiation of agreed plan by June 30, 1993. 3.19 Credit to finance the purchase of inputs and on-farm operations would be provided by CSBS under its normal credit lines, and by the Seasonal Credit for Small Farmers Credit Scheme, as ;s done at present. The credit program is scheduled to expand into Farahaane, haduman, Abdi Ali, Falkeerow, Jeerow and Bulo Sheikh for the Gu 1989 season. Credit for these villages would be directed from the Qoryooley branch of CSBS. 3.20 Equipment For Land Preparation and Land Levelling. Tractors are used for land preparation. Other farming operations are carried out manually by smallholders. Medium size farms use machinery during harvesting and periods of labor shortages. On large farms (above 30 ha) most farming operations are mechanized except nursery care, thinning and harvesting of vegetables and watermelons. The ONAT station at Qoryooley has about 17 tractors in operating condition and it is reported that about 200 private tractors are operating in the area, which are hired out to small farmers. The shortage of a few tractors would be met easily by private tractors through ASAP II provisions. 3.21 Land Levelling. Land levelling would be required on about 500 ha of the Farahaane project area, particularly the 250 ha area proposed for rice cultivation. This work will be carried out by private contractors on the basis of annual requirements, as requested by the various farmers who will pay for these services. 3.22 Cadastral Surveys and Land Registration. A rapid and comprehensive cadastral survey and land registration campaign will proceed within the currently recognized legal framework to ensure the validity of leases granted. The process will rely on the close collaboration of local authorities. Group registration on a canal by canal basis plus on-the-spot adjudication of what are expected to be few boundary disputes will allow the process to advance quickly. Maps at a 1:2,000 scale are required as base maps for recording parcel boundaries. These already exist for an area of about 1,100 hectares; for the rest of the area they will be produced from enlargements of existing 1:10,000 scale maps and aerial photos. Field operations are expected to begin in October 1989. At the rate of 5-7 parcels per day, and with two teams in the field, the cadastral work is estimated to extend over an 8-9 month period.  - 25 - 3.23 The cadastral survey and registration activities will be simultaneously conducted under the direction of the Land Evaluation and Use Department who will assign a senior land evaluation officer to the Farahaane Field Office at Qoryooley. He will work closely with other resident MOA district officials. Work will be divided between two field teams and an office that will process all required documents, together with the survey sketches produced from work in the field. After cadastral base maps are in hand, two field teams will conduct boundary definitions, parcel drawing in the base map, and adjudication work. Teams will each consist of a surveyor/enumerator, an assistant and an MOA official trained and experienced in dispute adjudication. A field supervisor and a cadastral mapping specialist will be shared between both teams. In each village, the teams will be accompanied by village committee representatives. Boundary disputes unable to be resolved by the village committee will be heard by an MOA designated official. Headquarters for the effort will be established in either Qoryooley or Merca. As a first step in the registration effort, assurances were obtained at negotintions that the MOA would complete the registration of approximately 200 parcels in a 300 ha area for which a cadastral survey has already been done. This work is to be concluded by December 31, 1989, and the entire Farahaane scheme cadastral surveys would be completed by March 31, 1991 with issue of titles by March 31, 1992. The proposals for the modification of the land registration process and for the adjustment of land law developed under the USAID assisted Shebelli Water Management Project would be subject to review and comments by the Association prior to final approval by the Government. D. Health and Social Aspects 3.24 Malaria and Schistosomiasis Disease Control. The control strategy against malaria and schistosomiasis would be integrated into the PHC infrastructure with support from the National Antimalaria Service and schistosomiasis control program. The control program would be carried out by the Community Health Worker (CHW) in the project area. These control programs would train CHWs, assist in baseline surveys, annual treatment and chemotherapy. At the district level there would be tbh reference laboratory with one technician who would supervise all the field activities under the direction of the District Medical Officer at Qoryooley. Control measures against malaria would be mainly chemotherapy using passive case detection except for pregnant women. The latter would be given chloroquine weekly during pregnancy. For schistosomiasis, 6-9 year old school children (high risk group) would be screened annually and all positive cases treated. The rest of the population would be examined and treated by CHWs on an outpatient basis. Praziquantel would be used for school children and metrifomate for outpatients. Vector control for malaria using both indoor residual spraying by DDT and biological control would be carried out during the annual screening survey. 3.25 The project would provide funds for the purchase and supply of (a) drugs for chemotherapy such as metrifonte and praziquantel for schistosomiasis disease control, and chloroquine, primaquine and Pansidar for malaria control; (b) chemicals such as nielosamide for spraying of water bodies and populated areas; (c) equipment for diagnosis of malaria and schistosomiasis such as slides, lancets, sLales, tally counters, microscopes, urine cups,  - 26 - pastaisyringes, Nytel filters, haeamastixs etc; and (d) printing and distribution of educational pamphlets, describing malaria and schistosomiasis disease control measures, in schools and village health posts. The project would also provide funds for training of laboratory technicians, transport for MOH field staff, equipment for basic laboratory analysis and household spraying. Existing MOH facilities at Qoryooley would be expanded to provide additional space for the laboratory and storage. Four health posts would be built at Farahaane, Abdi Ali, Jeerow and Haduman. Assurances were obtained at negotiations that the drugs and medicine used in the health component for malaria and schistosomiasis disease control program would be subject to the Association's review and concurrence. 3.26 Constultancy Services. Specialized services of individual consultants would be needed to assist the project coordinator and MOH to (a) finalize the control methodology, organize the logistics and means of data collection, and data analysis; (b) help design and execute the first baseline examination and treatment; (c) assist in annual screening survey and treatment exercise; (d) evaluate project's success after 3 years and at the end of the project; and (e) help fit the project into the ongoing PHC system. 3.27 Drinking Water Supply. A rural water supply project has recently been completed in the Lower Shebelli area under Japanese bilateral assistance. A main pipeline running in the east-west direction connects most of the villages of the Qoryooley district except Madhulow village, which is programmed for phase II of the program. The project would provide funds to extend the water supply line to the Madhulow village by a 5 km long PVC pipeline of 75-100mm diameter. Two public stations with 10 taps each would also be built in Madhulow under the project. This would improve the household water situation and significantly reduce the time spent in daily transport of water from far away sources. 3.28 Women's Development. The project would provide funds to improve the welfare and productivity of women and their families by establishing a sustainable system to respond to locally-defined needs in three villages in the Farahaane scheme area. A Family Affairs Officer position would be created in the Qoryooley field office of the Ministry of Agriculture. The officer would coordinate activities with the District Commissioner's Office in Qoryooley and work closely with the village administration and the women's associations at both District and village levels. The Family Affairs Officer would define activities and develop a five-year implementation program during the first four months after appointment. The activities would focus primarily on (a) training and demonstration materials; (b) demonstration of various activities on an experimental basis such as home improvements, local manufacture of roofing materials, toilet construction and village hygiene, weaving and tailoring; and (c) support to women entrepreneurs willing to invest in activities mentioned under (b). The suggested list of activities is indicative.  - 27 - E. Institutional Development and Training 3.29 Buildings. A field office would be established at Qoryooley which would include construction of an office, workshop and store, and five houses for the project staff. Eigl:t cperator quarters would also be built, located at the new drainage pumping station and seven other major diversion points from the river and main canals. A detailed list of building facilities is given in Annex 1, Table 8. 3.30 Equipment and Vehicles. In order to improve the maintenance of the system, the project would provide a limited fleet of maintenance equipment, and vehicles for the project staff, MOA and MOH field operations related to the project. Provision has also been made for communication, survey, drafting and office equipment. An estimated list is given in Annex 1, Table 9. 3.31 Training. Training and upgrading of MOA staff and training of the water users associations is one of the objectives of the project. On-the-job training would be conducted by various consultants engaged for design, specialized studies, construction supervision and plant protection. Field training for O&M staff would cover formulation and application of O&M procedures, planning and supervision of activities such as water management practices in the pilot units. The project would also provide scholarships for study tours and graduate studies in irrigation engineering and water management. F. Implementation Assistance 3.32 On-farm water management. The objectives of the program are to: (a) improve the efficiency of on-farm water application; (b) organize farmers to construct quaternary laterals, and irrigate and cultivate effectively the tertiary block units under a pre-arranged rotation schedule; (c) assure timely and frequent maintenance of tertiary canals and on-farm ditches; and (d) determine constraints to a timely and adequate supply of water. Two tertiary blocks serving about 30-50 ha would be selected one at the upper and the other at the lower end, with a different mix of crops. The tertiary laterals of these blocks would be provided with a water measuring device and simple control structures for diversion of water to the quaternary lateral and the farm ditches. The procedure and program related to surveys and field measurements would be established by a specialized consultant who would also train HOA technical staff during the first two months of the program. The consultant would visit for two weeks twice a year for three years to evaluate the program and train MOA staff to extend this program to other parts of the scheme through demonstration. 3.33 Water Users Associations. The project would support and strengthen existing village committees and their associated canal-based water users assrciations. Initially, these organizations would be consulted in the planning of tertiary and quaternary canals, foot bridges and livestock and watering points. Once construction is completed, committees would be made responsible for the operation and maintenance of tertiary and quaternary canals and the collection of water charges.  - 28 - 3.34 The project would promote the active involvement of farmers in various critical phases of water delivery. Existing farmers organizations would be strengthened to create the nucleus for an effective water users organization that would participate on a regional and Shebelli basin level for the allocation of water to various users along the Shebelli river. These associations would be instrumental in the timely maintenance of tertiary canals and on-farm ditches. Farmers in the Farahaane irrigation scheme area already contribute towards the maintenance of the system with labor and small cash payments. This type of contribution would continue to be used in the maintenance of the tertiary and quaternary canals. In addition a water charge would be levied on farmers in the Farahaane scheme as a contribution towards the operation of the scheme and mechanized maintenance of the primary and secondary irrigation and drainage system including drainage pumping station. The collection of water charges would be the responsibility of each water users association. In order to develop this capacity, the following assurances were obtained at negotiations that: (i) An intervillage committee be established for the system served by the Gayweerow primary canal by June 30, 1990; (ii) Village committees would be made responsible for the construction of quaternary canals and operation and maintenance of tertiary and quaternary canals; (iii) A study recommending the role and responsibilities of water users associations, village committees and MOA in the operation and maintenance of the scheme and assessing the capacity of village committees to assume such responsibility for operation and maintenance of the entire irrigation scheme would be provided to IDA by June 30, 1993. Recommendations agreed on with Government would be put in place by March 31, 1994; (iv) An agreement satisfactory to IDA would be signed between MOA and village committees specifying their responsibilities and funding mechanism by December 31, 1993; (v) Village committees would be involved in the planning of the tertiary and quaternary canals, footbridges and watering points; (vi) Water charges adequate to cover at least the operation and maintenance costs for the scheme would be assessed. Charges would be assessed at levels and according to procedures agreed upon completion of the study financed under the USAID funded Shebelli Water Management Project. The Association would review the recommendations of this study and would comment on the proposed assessment methods and rates prior to implementation. 3.35 River basin water management. As explained in para 2.13 the proposed project is vulnerable to upstream management of water supply. To ensure the water availability during the months of December and January assurances were obtained at negotiations that:  - 29 - (a) future expansion of the irrigated areas upstream of the Genale barrage would be restricted to 1,500 ha through strict licensing of pumps; (b) existing as well as planned cultivation downstream of Genale and upstream of Gayweerow barrage would not exceed 15,000 ha of annual crops during either Gu or Der seasons, and 4,500 ha of perennial crops area under banana; (c) expansion of sugar cultivation for the Jowhar sugar factory would restricted to the maximum area of 2,000 ha cultivated over the last five years; (d) to supplement run-of-the-river supplies during dry periods of December to end-January, reservoir operations rules for the Jowhar reservoir would be established through a detailed simulation hydraulic model expected to be developed under USAID assisted project. The study is expected to have adequate information to establish Jowhar reservoir operation rules by June 30, 1991. These will be reviewed by IDA and an understanding established between GOS and IDA by December 31, 1991 which would then be enforced by June 30, 1992; and (e) to submit an annual report to IDA for review of items covered under (a) to (c) above in a format and with details to be agreed with IDA by June 30, 1991. 3.36 Mid-term review. A full mid-term review of all project activities and related agricultural support services would be conducted by MOA and MOH with the assistance of consultants. IDA would participate in the review. Assurances were obtained that GOS would cause MOA to submit a mid-term report for IDA review by June 30, 1953 and by December 31, 1993 to: a) agree to an action plan; and b) start implementing such action plan. 3.37 Consultancy Services would be required for the supervision of construction. Provision would be made for a total of about 87 staff months of expatriate and 66 staff months of local consultants for these services. MOA would require assistance for the development of a drainage master plan for lower Shebelli with economic justification and detailed design of priority drains with an estimated input of about 20 staff months of expatriate and about 12 staff months of local consultants. Services would be required for cadastral surveys, and land tenure and water charges studies for which a provision is made of 10 staff months of expatriate and 20 staff months of local consultants. Specialized services of experts would be required for the agricultural inputs study, integrated pest management program, on-farm water management program, drainage monitoring, water users associations, assessment of water charges, monitoring and evaluation, baseline surveys, mid-term review and completion report. A total of about 53 staff months of expatriate and About 125 staff months of local specialist time would be provided for these specialized services. Provision is also made for the advisory unit requiring three expatriate advisers in the fields of engineering, financial/ administration and irrigated crops with a total input of about 72 staff months, and local professionals on contract basis for an estimated input of about 150 staff months. Details of the consultants input are given in Annex  - 30 - 1, Table 10. Assurances were obtained at negotiations that MOA would prepare the terms of reference for the required consultancy services and submit those for IDA review by December 31, 1989. The services would be contracted with consultants whose experience, qualifications, terms and conditions of employment are acceptable to IDA. G. Proiect Costs and Financing Plan 3.38 Cost Estimates. The total project cost is estimated at US$32.1 million (SoSh.15.5 billion) of which US$28.5 million (SoSh.13.6 billion) or 89Z is foreign exchange. The implicit exchange rate reflects price contingencies based on constant purchasing power parity of the Somali shilling. Project costs are based on quantity estimates for the draft detailed design and unit rates prevailing in the foreign assisted projects in Somalia, adjusted to conditions in the project area. Unit rates for equipment, materials and supplies are based on recent quotations received by HOA and consultants. The Government exempts HOA from paying taxes and duties for imported equipment, materials and services procured under foreign assisted projects, so the cost excludes such taxes. All costs are indexed to a common level of December 1988. Physical contingency factors were based on the degree of preparation and level of design completed to date, and are 1O0 for rehabilitation and civil works including building facilities and roads. No physical contingency was applied to incremental staff, staff housing, vehicles and maintenance equipment. Costs due to expected price increases over the implementation period amount to about 16! of the base cost plus physical contingencies, assuming the following annual inflation rates: 1989 1990 1991 1992 1993 1994 1995 1996 Annual Inflation Rate --------- -percent------------------- Foreign exchange component 5.3 5.3 4.1 4.1 4.1 4.1 4.1 4.1 Local currency component 33.0 28.0 24.0 24.0 24.0 24.0 24.0 24.0 3.39 Details of cost estimates are presented in Annex 1, Tables 1-5, and summarized in Table 3.1. Table 3.1: Project Cost Summary ISOSH ttlliaM (USS 0001 .._ _ .................... ........I.......... ........ ........... .................................. I Total I Total I Foreign Base I forrign Bass Local foreign lotal ExChange Cosas Local foreign Fotal Exchange Costs A IRRIGATION OEVEtOPNLNF I RIHA8II1:IAIION Of GOFEIOlEY AND fIAK[EEROW BARRAGES 78.1 600 7 679.S 88 II 314.9 2 402.9 2.717 8 88 It 2 REIABIIIIaTIOH of 0 IRECI RIVER OFFTAKES REIWILN GAYWEEROW Atn FAIKIFROW BARRAGES 0 8 19.2 20 0 .6 0 3 4 76 7 30 I 9b 0 3 PR'IART/(ECON OAAY IRRIGAIION * IRRIGATION fACILITIES 93.9 685.2 779.1 88 12 375.7 2.7408 3.116 S 88 12 4 TERIIARY/TQUIERNARY IRRIGATION AN0 DRAINAGE SYSFEN IPIlOI AREAS ONLYI 7 2 29 3 36.5 . so 1 28 9 117 2 146 2 80 I S ItRIIARY IRNIGAFIOt SYSIEtt 54 I 181 3 235 S 77 4 216 6 725 3 941 8 77 4 6 DRAINAGE SYSIEN 138 8 1.034 1. 173 3 RB is 566.1 4. 1382 4.693 2 88 l8 7 ROADS AND BUItDING FACIIITIES 87 I 371.9 469.0 RI 7 348 s 1.487 6 1.836 0 Rl 7 B VEHICLES AND EIUIPNENT - 621 B 621.8 100 10 - 2,487 3 2.487 3 100 10 9 SURVEYS. APPIiNG. INVESTIGATION SQRVICES. CONSUTlING SERVICES AND TRAINING 587 l.430.3 1.489 0 96 23 234 8 5.721 I 5.955 9 96 23 10. INCREMENIAt SITAfICNG fOR IRRIGATION DEVELOPMENT 154 7 10 0 164.7 6 3 6l8 a 40 0 658 8 6 3 ....... ........ ........ ..... ... ......... .......... --- -- ------- ------- --- -- --...-- Su. lolal IRRIGAIION DIVELOPMENT 674 2 4.984 3 5.658 4 88 88 2.696 7 19.937 0 722633 7 88 88 B AGRICtIIFURE DEVELOP"HENt 34 0 583.3 617 2 94 10 13s 9 2.333 I 2.469 0 94 10 C. HEALth AND SOCIAL SERVICES 2 4 161 7 183 t 88 3 85 4 646 8 732 2 88 3 ,....... ........ ........ .......... ....... ........ . .. ... .. .. . ..... .......... .. .. . -. lotal ASWELINE COSTS 729 S 5.729 2 6.458 1 89 100 2.918 0 22.916 8 2b.834 8 89 100 Physical Contingencies 64 I 432 0 486 0 89 8 216.3 1.727 8 1.944 2 89 8 Prico Contingencies I'068 S 7.442.8 8.611. 87 132 532 6 3.820 8 4.353 4 88 17 10.. .EC CI ....... 10... ..... ........ 341......... ......2. ... - - . . ------- lota PROJECI COSIS t.852 Il3. 604.. 0 15.456 1 88 232 3.666 9 28.465 s 32. 132 4 69 124 :::::::~~~~~~~~~~~~~~~~ ~ ::::: :::: .::tS .: s .::: .:::::::: :::::  - 31 - 3.40 Financing Plan. The IDA credit of US$28.5 million would finance about 89Z of the project cost (including PPF advance), net of duties and taxes, and would meet all foreign costs. The financing plan is summarized in Table 3.2. Table 3.2: Financing Plan (US$ million) Activities Foreign Local IDA GOS Total A. Irrigation development 23.3 3.3 26.6 B. Agriculture development 2.9 i.2 3.1 C. Health and Social 0.8 0.1 0.9 D. PPF Advance 1.5 - 1.5 TOTAL 28.5 3.6 32.1 3.41 The Government would make available the funds for irrigation development (US$3.3 million), for agricultural development (US$0.2 million), and for health and social aspects (US$0.1 million) through the development budgetary allocations. H. Procurement and Disbursements Procurement 3.42 Procurement arrangements are summarized in Table 3.3 and proposed civil works, equipment and consultancy services processing and completion schedule is shown in Annex 1, Table 11. 3.43 Civil Works. International Competitive Bidding (ICB) procedures in accordance with bank guidelines would be used for the main civil works contract (US$11.7 million) composed of rehabilitation of Qoryooley and Falkeerow barrages, rehabilitation of primary and secondary irrigation systems, new drainage system including some tertiary and quaternary drains and tertiary the canals for the demonstration tertiary units. The coral stone surfacing of ruads, building facilities, drinking water supply, land levelling, rehabilitation of gates and direct river diversion structures, and the construction of tertiary laterals (US$4.2 million) would be packaged into about 12 smaller contracts. Because most of these works are widely dispersed and would be tendered over a six-year period, they are unlikely to attract international contractors. Local Competitive Bidding (LCB) procedures acceptable to IDA would therefore be used with foreign contractors eligible to participate; these procedures would include advertising in local papers, public bid opening, clarity of evaluation criteria, and award to lowest evaluated bidder. 3.44 Equipment. ICB procedures in accordance with bank guidelines would be used for pump station equipment (US$0.74 million) vehicles and equipment (US$1.42 million), and agricultural inputs (US$0.84 million). These items would be grouped to the extent feasible, in order to attract major dealers and suppliers. Contracts for less than Us$50,000 (up to an accumulated total of  - 32 - US$150,000) would be procured through LCB in accordance with GOS procedures acceptable to IDA. Comparative shopping, based on at least three quotations, or purchasing off-the-shelf, would be allowed for contracts under US$20,000 up to an accumulated total of US$100,000. 3.45 Medical supplies and chemicals for malaria and schistosomiasis control (US$0.16 million) are supplies of limited source, so these would be procured for MOH by the UNICEF emergency drugs import program, which goes through a proper competitive process every six months. As the annual requirement for such procurement would be less than US$20,000, this would be the most economical and efficient way. 3.46 Consultants. Consultants for the engineering services would be engaged under three separate contracts for (a) construction supervision (US$1.55 million); (b) lower Shebelli drainage master plan (US$0.75 million); and (c) issue of titles and deeds (US$0.3 million). Specialized consultants (US$2.6 million) either as individuals or through specialized firms would be engaged for a specified period to carry out (a) agriculture inputs study; (b) organization of water users associations and assesament for these associations' future role in operation and maintenance of the system; (c) on- farm water management study and assessment of drainage effectiveness; (d) base line surveys with monitoring and evaluation input; (e) assessment of water charges; and (f) study and training related to integrated pest management. Surveys, mapping and investigations (US$0.66 million) would be carried out by firms specialized in such works. Consultants for these services would be engaged in accordance with IDA guidelines. Assurances were obtained at negotiations that (a) formalities to engage consultants for the consttuction supervision would be completed before September 30, 1989 for which terms of reference were cleared during project appraisal; and (b) GOS would cause MOA to prepare terms of reference for other services for IDA review by December 31, 1989. 3.47 Review of Procurement. IDA would review, prior to tendering and award, the ICB civil works and equipment contract (US$14.7 million) and about four LCB contracts, one for roads, one for tertiary development and two for building facilities each exceeding US$250,000 in value (US$1.6 million), thus covering about 86Z of total contract value of about US$18.9 million. Other civil works contracts (US$2.6 million) each valued at less than US$250,000 and contracts for miscellaneous equipment and supplies (US$0.50 million) each valued at more than US$50,000 would be procured using standard documents which will be prepared by the engineering advisor to be employed under the project, such documents to be reviewed by IDA. After the first review of such documents, IDA would only review on a sample basis after the award.  -33- Table 8.3: PrmE t *Arrn t / ICe LCB Other N/A TOTAL Civil Works Main Contract (Barrages, Irrigation 11.70 11.70 and Drainage System) (11.70) (11.70) Roads 0.80 0.80 (0.40) (0.40) Building Faclltiote 1.40 1.40 (0.70) (0.70) Drinking Water Supply 0.10 0.10 (0.06) (0.06) Tertiary and Quaternary System 1.10 1.10 (0.66) (0.66) Land Levelling, Direct River 0.80 0.80 Diversion and filling depressions (0.40) (0.40) Subtotal 11.70 4.20 16.90 (11.70) (2.10) (13.80) atnd Materials VehIcloIi nd intenence Equipmnt 1.42 1.42 (1.42) (1.42) Pumping Station Equipment 0.74 0.74 (0.74) (0.74) Survey and Office Equipment 0.24 0.24 (0.24) (0.24) Agricultural Implements 0.10 0.10 (0.10) (0.10) 0.84 0.84 Agricultural Inputs (0.84) (0.84) Medical SuppIles A Chemicals for Malaria A Schisto control 0.16 0.16 (0.16) (0.16) Subtotal 8.00 0.60 3.60 (3.00) (0.60) (8.60) Surveys, Mapping Consultant. and Training Surveys, Mapping and Investigations 0.68 0.66 (O.t) (0.88) Consultants for ( Design revisions and constr. supvn. 1.66 1.66 (1.66) (1.66) Drainage master plan 0.76 0.76 (0.75) (0.75) Land Tenure