Philippines - Second Communal Irrigation Development Project (CIDP II)

Document of The World Bank FOR OFFICIAL USE ONLY A'0V 3 Z G pl Report No. 8724-PH STAFF APPRAISAL REPORT PHILIPPINES SECOND COMMUNAL IRRIGATION DEVELOPMENT PROJECT (CIDP II) AUGUST 31, 1990 Agriculture Operations Division Country Department II Asia Regional Office Tlds document has a resticted dibHuto and may be used by oy In de perb man of dwi offiefad dt ie ts contents may not otewie be discoed Wodd Bank *JbobaioL  CURRENCY EQUIVALENTS (June, 1990) Currency Unit Philippine Peso (P) P 1.00 US$0.044 US$1.00 P 22.8 GOVERNMENT OF THE PHILIPPINES FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES 1 millimeter (mm) 0.039 inches 1 meter (m) 8 3.28 ft 1 kilometer (km) - 0.62 miles 1 hectare (ha) _ 2.47 acres 1 cubic meter (m3) 35.31 cubic ft 1 million cubic meters (mcm) - 810.7 acre-feet 1 kilogram (kg) 2.2 pounds 1 cavan - 50 kilograms 20 cavans = 1 metric ton ABBREVIATIONS AND ACRONYMS ADP Agricultural Development Plan CIDP Communal Irrigation. Development Project cIS Communal Irrigation System COA Commission on Audit DA Department of Agriculture DENR Department of Environment and Natural Resources DPWH Department of Public Works and Highways DSD Design and Specification Department EKG Equipment Management Department FIG Farmer Irrigator Group FIO Farmer Irrigator Organizer FPA Fertilizer and Pesticide Authority IA Irrigator Association IDD Institutional Development Department IFAD International Fund for Agricultural Development IDO Institutional Development Officer IPM Integrated Pest Management MAFC Municipal Agriculture ard Fisheries Council NEDA National Economic and Development Authcrity NFA National Food Authority NIA National Irrigation Administration NIS National Irrigation System NWRC National Water Resources Council PBME Project Benefit Monitoring and Evaluation PDD Project Development Department PIE Provincial Irrigation Engineer PIO Provincial Irrigation Office PPRD Procurement and Physical Resource Department PRMD Personnel and Records Management Department RID Regional Irrigation Director RIO Regional Irrigation Office SOE Statement of Expenditure  FOR OFFICUIL USE ONLY PHILIPPINES SECOND COMUNAL IRRIGATION DEVELOPMENT PROJECT (CIDP 1I) Loan and Proiect Summary Borrower: Republic of the Philippines Loan Amount: US$ 46.2 million Terms: Repayable in 20 years, including 5 years of grace, at the Bank's standard variable interest rate. Project Obiectives: The project aims to provide for continuity and improvements in implementation of the Philippines' ongoing communal irrigation development efforts, based on experience gained under the first Bank and IFAD-financed Communal Irrigation Development Project (Bank Ln. 2173-PH/IFAD Ln. 108-PH). It would rehabilitate existing systems and extend smallholder communal irrigation services to other new areas in impoverished rural locations where over 902 of the farmers live below the poverty threshold, thus contributing to the Government's goals of poverty alleviation and food sufficiency. The project would also strengthen both the National Irrigation Administration (NIA) and Irrigator Associations (IAs) throughout the country, in the fields of management, financial administration, design and construction, and operation and maintenance of communal facilities. Description: The proposed five-year project, commencing during late-CY 1990, would be nationwide in scope and would include: (a) the construction of new (10,000 ha) and rehabilitation and improvement of existing (15,000 ha) communal irrigation systems, and provision of adequate service and access roads and simple IA storage facilities and drying floors, and erosion control measures in subproject catchments; (b) development of communal lAs, including training of related NIA staff, coammnity organizers and IA members, with particular emphasis on management, financial and O&M aspects; (c) institutional strengthening of NIA in the field of communal irrigation, including upgrading of NIA's ability to assess micro-catcbment hydrology; training of irrigation technicians and designers; improvement of NIA's communal accounting system and collection efficiency; improvement of the monitoring and evaluation capabilities of NIA's Communal Irrigation Department; and upgrading of the physical facilities and equipment of the Provincial and Regional Irrigation Offices; and (d) preparation and implementation of agricultural development plans for each communal scheme financed. 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 - Benefits and Risks: The Philippines' communal irrigation development program is well-regarded internationally as a very successful effort at actively involving smallholder irrigation beneficiaries in the design, implementation and O&M of their systems. Through its support for this program, the proposed project would directly enhance and stabilize the incomes of about 20,000 low-income farm families, by increasing cropping intensities and output through reliable irrigation and improved agricultural support services. Indirectly, through the institutional strengthening components for the beneficiary lAs and NIA, the project would also improve the incomes of many additional small irrigator families in the nearly 3,000 NIA-assisted communal schemes throughout the country. The investments to be made under the project do not face any major risks, although implementation could fall short of expectations in some areas due to sporadic peace and order problems. As the project is national in scope, such problems would not seriously affect the overall project impact. Also, potential difficulties would be eased by the opportunities afforded for active farmer participation through the IAs, thereby instilling an increased sense of responsibility on the part of the beneficiaries. Estimated Cost: Local Foreign Total ----- USf milIIon-- Irrigation Works 18.5 1656 84.0 IA Development 2.4 0.8 2.7 Institutional Strengthening of NIA 4.8 7.0 11.B Engineering and Administration 4.1 0.4 4.6 Agricultural Development 0.6 0.8 0.9 Total Base Cost 29.9 23.6 58.4 Physical Contingencies 2.6 1.9 4.5 Price Contingences 38.6 2.9 8.5 Total ProJect Cost /a 3.1 28.8 64.4 Financing Plan: IrRD 17.9 26.8 46.2 Government/NIA Lb 18.2 - 18.2 Total 88.1 28.8 64.4 Estimated Disbursements: Bank FY 1991 1992 1993 1994 1995 1998 1997 ~