Turkey - Eastern Anatolia Watershed Rehabilitation Project

'4/1v -SoS 6 1- /CU Document of The World Bank FOR OMCLAL USE ONLY Rqzott No. P-5910-TI MEMORANDUM AND RECMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMN TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$77 MLLION TO THE REPUBLIC OF TURKEY FOR THE EASTERN ANATOLIA WATERSHIED REHABILITATION PROJECT FEBRUARY 9, 1993 lf; ~ ~ ~ ~ ~ Tt Tv ', ,j'.ti' ' .J|' ;.Ir i ! ?t.b . i ^11i T , 'rF:\Tt 5i i. r. : E.A: '-l.PP h;N s ?NALL f. iN'-2rL j 5L IjI ,-Uik,l. Au tr:;~ - U(Bli ASHI)il This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS AT APPRAISAL Currency Unit - Turkish Lira (TL) US$1 - TL 7,000 (Appraisalt June 1992) US$1 - TL 8,200 (November 1992) WEIGHTS AND M3ASURES Imperial Units Metric Units 1 foot (ft) * 30.5 centimetres (cm) 1 square foot (ft2) - 0.093 square metres (m2) 1 cubic foot (ft3) - 0.028 Cubic metres (m3) 1 mile (mi) - 1.609 kilometres (km) 1 acre (ac) - 0.405 hectare (ha) 1 square mile (sq mi) 8 259 ha 1 pound (lb) - 0.454 kilograms (kg) 1 long ton (1.ton) - 1,016 kg (1.016 metric ton) 1 ft3/sec (cusec) - 0.028 m3/sec ABBREVIATIONS AND ACRONYMS USED GET Global Environment Trust NARA Ministry of Agriculture and Rural Affairs NC Microcatchment mOF Ministry of Forestry PCSU Project Coordination and Support Unit GOVERNMENT OF TURKEY FISCAL YEAR 1 January - 31 December  FOR OMCIAL USE ONLY NASTNER ANATOLIA WATERSHED REHABILITATION PRO,JECT LOaN AND PROJECT SUMMARY Borroweri Republic of Turkey Dhneficiarzius Ministry of Forestry (NOF), Ministry of Agriculture and Rural Affairs (MARA) Amountus US$77 million equivalent US$5.1 million equivalent GET Grant Seventeen years, with a five-year grace period, at the Bank's standard variable interest rate. The GET funds would be on a grant basis. (U8$ million) Financino Plant IBRD 77.0 Government 33.4 GET 5.1 Total 115.5 Economic Rate of Returns 17% Staff Appraisal Report: No. 11294-TU dated February 9, 1993 Maps IBRD No. 24166 This document has a restricted distribution and may be used by recipients only in the performince of their official duties. Its contents may not otherwise be disclosed without World Bank autho-if-m  MEMORANDUM AND RECOW4ENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PAOPOSED LOAN TO THE REPUBLIC OF TURKEY FOR TH EASTERN ANATOLIA WATERSHED REHA8ILITATION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Republic of Turkey for US$77 million equivalent. The proposed loan would have a term of 17 years, including a five-year grace period, at the Bank's standard variable interest rate, and would help finance the Eastern Anatolia Watershed Rehabilitation Project. The project also includes a Global Environment Trust Fund (GET) grant component (the "GET Subproject") of US$5.1 million equivalent to fund j-_isJt conservation of genetic diversity in Turkey. llackgrond 2. Turkey is self-sufficient in the production of most foods, and agricultural production has kept pace with population growth through the 1980s. Nevertheless, growth has been lower than could be expected given Turkey'l resource base and production potentiall yields have stagnated for some crops, particularly for wheat, which accounts for 40% of cultivated area and which is the dominant crop over the central and eastern plateaux. Productivity growth in livestock, which is fed mostly from extensive rangelands and contributes over 30% of agricultural GDP, has also been low. 3. Soil degradation from erosion is one of the most serious problems affecting long-term sustainability of agriculture in Turkey; erosion affects S7 million hectares, or over 70% of the land area of the country. Unfavorable natural conditions are aggravated by cultivation practices which do not observe soil and moisture conservation measures and leave fallow land exposed. Population pressures have reduced pasture area by more than half over the past 40 years, replacing pasture with low-yielding cereal cultivation on marginal soils. Remaining pasture land is frequently overgrazed, reducing vegetative cover, exposing soils and lowering fodder yields. While 25% of the land area is classified as forest land, 60% of this is degraded by excessive cutting for fuelwood and fodder and by overgrazing, and is not productive for timber purposes. Conditions are particularly severe in the mountainous regions of Eastern and South-Eastern Anatolia, in the upper watershed of the Euphrates and Tigris rivers. 4. Turkey is one of the world's most important centers for genetic resources, with more than 3,000 endemic agricultural and forest species. Species include several that are relatives of the major crops that feed the world, such as wheat, barley, chickpeas, lentils, fodder crops, fruit and forest species. Plant breeders from all over the world come to Turkey to collect and use strains from wild progenitors, landraces and primitive crop forms, to develop improved crop varieties. The biodiversity of the regions of Turkey that are rich in these wild strains is, however, threatened by overgrazing, deforestation, and modern agriculture. 5. Government is becoming increasingly concerned with soil erosion and other onvironmental issues in Turkey. It has become aware that, if soil  conservation issues are to be successfully addressed, a coordinated approach between the rural service agencies is necessary on range, forest and agricultural land, And that full and active participation of the local population in the planning and implementation of programs is essential to sUcces8. Turkey has a well-staffed agricultural extension and forestry organization in the provinces and techniques for soil and moisture conservation have been, in general, well tested in Turkey. 6. Government requested the assistance of the Bank in financing a reforestation, range management and.soil and moisture conservation program in Eastern Turkey in 1990. It was decided to focus project activities on the three provinces of the middle cacchment of the Upper Euphrates River Basin, Elazig, N4alatya and Adiyaman, since erosion problems are most severe in those areat. Because of poor endowment with natural resources, compounded by a harsh climate, income levels in these areas are also r latively low. 7. Official. recognized the need to test and develop a workable approach to participation by the local communities in the project activities. The approach selected was one based on microcatchment planning and implementation using the "farmer-centered, problem-census, problem-solving" technique, which had already been applied in Turkey. Using this method, villagers define problems and select from a Omenu" of ameliorative treatments in consultation with extension and forestry staff. It was decided to prepare six microcatchment plans, sufficient for the first year's implementation, using this approach before project start-up. This served to train project staff, to define in detail the first year's activities and to minimize implementation delays. S. The authorities recognize also the importance of conserving Turkey's biodiversity. At present much plant material is classified and conserved ex- situ in laboratories. This needs to be supplemented, however, by In-otU conservation, which allows genetic material to continue to evolve naturally in its own environment and permits conservation of a largar number of species and strains. The Turkish authorities have approached the Global Environmental Trust Fund (GET) for assistance in funding La-uj.j gene conservation for agricultural and forest species in Turkey. The Regional Vice President has approved the GET grant for this activity, subject to the approval of the Eastern Anatolia Watershed Project. 9. Lossons learnd from Mrevious Bank involvement. Recent reviews of agricultural projects in Turkey highlight the need for participation of beneficiaries in project preparation, and for decentralized project management. Reviews conclude that farmers respond readily to appropriate technical packages. This is the first Bank-financed Watershed Project for Turkey. Even in other countries Watershed Rehabilitation projects are relatively new to the Bank and results to date have been mixeG Reviews have emphasized the need for securing support of local communities in planning and implementation, and simplifying organizational arrangements to ensure close coordination among participating institutions. 10. Rationale for lank involvement. The project forms part of the Bank's country assistance strategy for Turkey, which includes increased focus on environment and sustainability, and on poorer, less developed regions. By  - 3 - improving sustainable range, forest and agricultural production, the project would contribute to higher rural incomes in these areas. Women, who play a major role in farming in the project area would also benefit frow increased income opportunities and improved access to fuelwood, water and food. Concerning the Bank sector development strategy, the project would support the objective of strengthening the technical support services, with a focus on coordination between institutions, and on increasing responsiveness of services to priorities as expressed by farmers. Government agencies have done substantial work in developing the participatory approach at field level. The project would build on experience gained in the Agricultural Extension and Applied Research proje-ts, and on the recently approved Agricultural Research Project, which includes applied research activities in soil and resource conservation in Eastern Turkey. The Bank is currently the major agency giving significant assistance to improve technical services in rural areas, and no other source of adequate funding is available. The GET subproject is consistent with GET strategy: protecting Turkey's biodiversity of plant species is of global importance, while la-p_Uj conservation of wild relatives of economically important plants is an innovation for Turkey and in the world. Turkey has a commitment to biodiversity preservation and success in this endeavor will benefit plant breeders universally. 11. Pro=eit obiectives. The project addresses important problems of rural poverty and natural resource degradation. It would restore fertility to badly degraded soils and reduce erosion in upland areas in three low income provinces in Eastern Turkey, using existing resources more effectively and safeguarding the productive base of the area. It would strengthen farmers' planning and implementing capacity and increase incomes through improving fuelwood, fodder and agricultural production. The project would also strengthen the capacity of the provincial rural services to provide technical support to farmers in a coordinated and responsive way. The GET subproject would establish conservation areas for the protection of genetic resources of the wild relatives of globally significant herbaceous and woody species originating in Turkey and would build up the institutional capacity to sustain this protection. 12. Project desorintion. The project would support watershed rehabilitation activities in about 54 microcatobments over a seven-year period. An integrated microcatchment planning approach would be used, and treatments would be selected and implemented with the active participation of the local populations. They would includes on agricultural land, promotion of food and forage legumes, soil conservation tillage, conversion of marginal cereal land to forage banks, improved crop husbandry and horticulture; on zsnao gnd, improved management by communities and range enrichment; on forest Ian, oak and fuelwood coppice rehabilitation, soil conservation afforestation, conifer plantations and gully revegetation with multipurpose species. The project would finance agg=L= activitLes aimed at providing income gains in the short to medium-term, including soil conservation on dryland farms, small-scale irrigation, beekeeping, genetic improvement of livestock, agro-forestry and fruit trees. It would strengthen field services to undertake these activities. With a view to longer-term sustainability, it would also support adaptive research into alternative soil and moisture conservation methods, pilot aerial seeding of rangeland, community management  - 4 - of forests and other activities. It would provide financial support to project planning and monitoring, training and technical assistance. The proposed GET subproject would support survey and inventories of in-Bl=t conservation areas, establishment and management of JZ-1itu gene management zones, data management, conservation strategies, institutional support, monitoring and training. The subproject components are described in more detail in the Xemorandum of the Director (MOD), dated February 9, 1993 (Report No. 11295-TU). 13. The Watershed Rehabilitation Project would be executed over a seven- year period. It would includes works, consisting of minor irrigation, and reforestation activities (52% of project costs), plant and equipment and its use for rehabilitation activities (8%), beehives and related equipment (4%), field vehicles (5%), materials, especially seedlings, acorns, seed and fertilizer (18%), technical assistance and training (6%), incremental operating costs (6%) and the PPF (1%). 14. The Watershed Rehabilitation Project has an estimated total cost of US$109.8 million euivalent, with a foreign exchange component of US$36 million (33%). The proposed Bank loan of US$77 million would finance about 70% of projecit costs. Schedule A shows a breakdown of costs and the financing plan, while S3chedule B indicates methods of procurement and disbursement and the disburatment schedule. The GET subproject would have a total cost of US$5.7 million equivalent. A timetable of key processing events and the status of Bank Group operations in Turkey are given in Schedule C and D, respectively. The Staff Appraisal Report No. 11294-TU dated February 9, 1993, and Memorandum of the Director and Grant Agreement covering the GET Subproject Report No. 11295-TU dated February 9, 1993 are being distributed separately. 5.- Pe es emena - The project would be executed by the provincial departments of the Ministries of ForestryO and Agriculture and Rural Affairs?/ with the participation of the local population through the preparation and implementation of detailed microcatcbment plans. The provincial organizations have already formed provincial project implementation units and microcatchment (MC) planning tems. The Ministry of Forestry would coordinate, and would have final responsibility for the scope of the plans. The project would be supported at central level by a Project Coordination and Support Unit (PCSU) within the Ministry of Forestry, working closely with designated officials in the Ministry of Agriculture and Rural Affairo. The PCSU would have responsibility for approval of plans and budget allocation, monitoring, training, and recruitment of technical assistance, procurement, diabursement and project accounts. An interministerial National Steering Committee would provide overall guidance. The GET subproject would be implemented by the respective central and regional research organizations of the Ministries of Forestry, and Agriculture and Rural Affairs, while its 1/ Directorates for Reforestation and Erosion Control and for Village Development. V Provincial Departments of Agriculture and Provincial Directorates of Rural Services.  national J&-MAif& gene conservation strategy component would be under the supervision of the Ministry of the Environment. Proiect Sustaiebilitv 16. Sustainab