Somalia - Farahaane Irrigation Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15083 PROJECT COMPLETION NOTE SOMALIA FARAHAANE IRRIGATION REHABILITATION PROJECT (CR.2063-SO) OCTOBER 26, 1995 Agriculture and Environment Operations Division Eastern Africa Department Africa Regional Office 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 AND EQUIVALENT UNITS At Appraisal: Official Exchange Rate US$1.00 = 250 Somali Shillings (SoSh) SoShl.00 = US$0.004 At ICR stage: US$1.00 (October 1993) = So. Sh.3,286.8 Abbreviations and Acronyms EEC European Economic Community FAO/CP Food and Agriculture Organization/Cooperative Program IDA International Development Association ICB International Competitive Bidding IFAD International Fund for Agricultural Development KFW Kreditanstalt fur Wiederaufbau LCB Local Competitive Bidding PPF Project Preparation Facility SWMP Shebelli Water Management Project USAID United States Agency for International Development Calendar Fiscal Year January 1 - December 31 Cropping Year April - June (Gu Season) October - December (Der Season) FOR OFFICIAL USE ONLY PROJECT COMPLETION NOTE SOMALIA FARAHAANE IRRIGATION REHABILITATION PROJECT (CR. 2063-SO) CONTENTS Sum m ary ............................................... . ...... I B a ck g ro u n d ......................................................................................................... . . 2 Project Objectives/Description ....................2.... ..............2 Project Implementation ................. 3............... ..........3 Conclusions and Lessons Learned ........................................ 3 PART II STATISTICAL ANNEX .................................... 4 APPENDICES: MAPS 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. PROJECT COMPLETION NOTE SOMALIA FARAHAANE IRRIGATION REHABILITATION PROJECT (CR 2063-SO) Summary 1 This is a Project Completion Note for the Somalia Farahaane Irrigation Rehabilitation Project (Cr. 2063-SO). The project was approved by the Board on September 12, 1989 for SDR21.2 million (US$28.5 million equivalent) and became effective on March 20, 1990. Due to the instability within the country and the collapse of the Government in December 1990, all operations and disbursements in Somalia were suspended as of March 15, 1991. On July 26, 1995 IDA canceled the undisbursed balance in the amount of SDRI 9.7 million (US$23.3 million equivalent). This report was prepared by Donna Criddle, Africa Agriculture & Environment Operations Division (AF2AE) and reviewed by Sushma Ganguly, Division Chief, AF2AE and Surendra Agarwal, AF2DR. It is based on materials in the project files and discussions with Messrs. Akthar Elahi and James Coates, who were involved with preparing the project. Due to the absence of Government in Somalia there is no input from the borrower. The project is not rated. Background 2. Somalia is dependent on irrigated agriculture for about 70 percent of all crop production due to harsh, semi-arid climate conditions. One-third of the land under irrigation is in the Shebelli valley, where infrastructure is a combination of ineffective traditional irrigation systems and an outdated poorly maintained network, resulting in water shortages and inefficiency in water management. Increasing the efficiency of poorly managed irrigation schemes in the area of the Shebelli river and rehabilitation of inoperative irrigation infrastructure (rather than new schemes) were identified as the most cost effective ways of increasing agricultural output and farmers' incomes. The project concept was identified by a joint FAO/CP/IDA mission and the Government in September 1983. The purpose was to rehabilitate the Shebelli valley's irrigation facilities. An extensive feasibility study of the Genale project area, involving aerial survey and topographical mapping and a soil classification survey, was financed under a Project Preparation Facility (PPF), approved in August 1984 for US$1.0 million. This PPF was approved for what was initially called the Genale Irrigation Rehabilitation Project located in the lower Shebelli plain. This later developed into two smaller projects: the Farahaane Irrigation Rehabilitation Scheme (IDA) and the Shalambood Irrigation Rehabilitation Scheme (USAID). The Government began project preparation of the Genale area network containing the Qoryooley and Falkeerow barrages in September 1985 with the assistance of consultants and staff of FAO/CP. After the IDA/IFAD preappraisal mission of November 1986, a supplemental PPF advance was approved in October 1987 for -2- US$500,000 to prepare detailed designs and preparation of bidding documents. All disbursements, amounting to less than US$2.0 million, for this project were made under the PPF before the collapse of the Government. Project Objectives/Description 3. The aim of the Farahaane project was to increase the production of food and cash crops of 5,600 smallholder farms through better irrigation management, improved infrastructure, efficient water use and adaptive research. The design was in accordance with the Government's development and food production strategy. It included (i) rehabilitation of the Qoryooley and Falkeerow barrages and existing canals; (ii) rehabilitation of and/or construction of an irrigation and drainage network, with drainage pumping stations at the Farahaane irrigation site; (iii) coral stone surfacing of roads that connected various villages in the project area; (iv) construction of a field office, workshop/stores and staff housing in the Farahaane area; (v) procurement of survey and maintenance equipment, plant protection equipment and vehicles; (vi) provision of land surveys and registration of land titles; (vii) supply of drugs and chemicals for malaria and a schistosomiasis control program in selective project areas; (viii) provision of safe drinking water and development of various women's activities related to home improvement and income generation; (ix) provision of a drainage master plan and studies related to water management, users and associations, water user charges and operation and monitoring activities. Project Implementation 4. Although there were only two conditions for effectiveness--appointment of a project manager and opening of the project account--due to country instability, the project did not become effective until March 20, 1990, six months after signing the credit. Terrorist activities and insecurity accelerated shortly after project effectiveness and the collapse of the Government in December 1990, precluded further implementation activities. Only two supervision missions could be completed before the project was interrupted by the continuing civil strife. The only disbursements made were for procurement financed under the PPF and for establishing the special account in June 1990. 5. The first supervision mission of November 1989 discussed start-up activities with the new project management unit, including reviewing the steps needed to make the credit effective and a review of the progress on tender documents for the International Competitive Bidding (ICB) of civil works for irrigation and drainage works and Local Competitive Bidding (LCB) for buildings and roads. The contract for consultants to supervise overall construction of the project had been evaluated and was under negotiation. LCB procedures for construction of headquarters buildings and office furniture were well advanced. Recommendation for award of the civil works tender, which was the largest single construction contract and the backbone of the project, was reviewed by the Bank in November 1990, but the contract could not be awarded due to the deterioration of security. -3- 6. A follow-up mission visited the area in November-December 1990 as part of the Somali Country Implementation Review The Bank had been reviewing the deteriorating security situation for several months to decide on the advisability of undertaking major civil works while general breakdown of law and order progressed toward Jowhar in Middle Shebelli. The mission recommended that the bid validity period be extended to February 1991 on the major civil works contract in order to reassess whether the security situation would improve sufficiently to award the contract and begin construction. The United States Agency for International Development (USAID) terminated funding of their neighboring Shebelli Water Management Project (SWMP) in Shalambood in late 1989 which was a parallel initiative with important implications on land tenure (through their work already achieved in land titling), storage facilities and water legislation. In order to fill the gap, USAID arranged for short-term consultancy assignments to address water charges and land tenure issues, as no other funding was available. However, armed conflict never subsided and all procurement efforts were allowed to lapse. Conclusions and Lessons Learned 7. This project differs from others, in that the preparation activities included a review of the irrigation subsector, which would normally have been carried out under separate sector work or preinvestment studies. The thoroughness of identifying the most advantageous site and planning the various inter-related elements for each component were the forerunner of the methods now encouraged by the Bank to achieve quality at entry of projects into the portfolio. Also, the focus and conditionality on management of the whole river basin, rather than just the project, is a precursor to the current emphasis on basin-based intervention in water management, including irrigation. 8. Several possible irrigation rehabilitation projects were under consideration by the Bank in the Juba and Shebelli valleys at that time, which finally developed into the Farahaane Scheme as other donors supported other projects. All Bank staff inputs are, however, attributed to this project. Thus, the elapsed time from identification of what had first been referred to as the Genale Rehabilitation Project (Farahaane and Shalambood subprojects) in September 1983 to appraisal in September 1988 (and Board in September 1989) appear unusually long and staff intensive. Some slippages, however, directly related to this project were due to (1) complex components across several sectors, (2) coordination of various donors in the Shebelli Basin, (3) slow follow-up on decisions to be made by the Government and Bank, (4) misunderstandings and incomplete work on the part of the subcontractors hired by the consulting firm carrying out the basic feasibility study, upon which appraisal depended, (4) the need for further aerial photos, (5) the need for a water balance study to settle the Riparian issue with Ethiopia where the Shebelli River originated, and (6) difficulty in hiring a River Basin Engineering Advisor prior to appraisal. 9. The issue of Riparian rights was first recognized as early as January 1983 when Ethiopia was constructing a major reservoir and power plant (Melka Wakana)on the Shebelli River with Soviet assistance. There is no international agreement on water rights between Somalia and Ethiopia on the use of the Shebelli River. The aim of the Bank's -4- proposed project was to increase water use efficiency through rehabilitation which would not require additional abstraction of water from the Shebelli River. At an early stage in the project preparation process the Bank's view was that there was no requirement to inform Ethiopia's officials nor seek their consent for construction of this project because it was a rehabilitation project and it was unlikely that Ethiopia would use the water from the Shebelli to the detriment of the project within its economic life. The status showed that the Melka Wakana hydro-project constructed in Ethiopia on the upper banks of the Shebelli River would not reduce water availability and would serve to even the flow. In January 1987 it was again determined that, based on Bank guidelines in force at the time, no notification to Ethiopia by Somalia was needed because the Farahaane Rehabilitation Project, being a rehabilitation project, would not alter the quality or quantity of water flows nor would it be adversely affected by water uses of the other riparian, Ethiopia. 10. Unusually strong efforts were made by IDA to coordinate preparation activities with other ongoing initiatives in the area, namely (i) IDA's interest in Kreditanstalt fur Wiederaufbau (KFW) involvement with the Jowhar Sugar Rehabilitation project and off- stream reservoir at Duduble and coordination with their irrigation study to avoid duplication of work; (ii) African Development Bank's (AfDB's) and USAID's projects; (iii) follow up on aerial mapping already completed for potential use in this project, and (iv) an effort to possibly combine photography with the Shebelli and North West Agriculture schemes. However, the need to collaborate with other projects in the area was pursued and the issue of Riparian rights, that continued to resurface at various intervals, may have caused a slow down in maintaining project momentum. 11. As a lesson learned from the Bay Region Extension and Central Rangelands project where cofinancing was not obtained until after appraisal, cofinancing efforts were explored during the identification mission of September 1983 so that all donors could be involved in project design and preparation. The mission explored USAID funding and possible interest by EEC, the Italian Government and at the Consultative Group meeting. However, instability and civil strife prevented any further interest by donors. 12. A better grasp of procurement requirements by the Government could have prevented misunderstanding and overcome the slowness in completing the tendering process. For instance, the Government's evaluation on awarding the contract for consultants to carry out the Feasibility Study of 1984, financed under the PPF was faulty in that both the technical and financial proposals were opened at the same time and award decision was based on highly subjective criteria rather than an adequate weighting system. Non-compliance with bid opening procedures ultimately led to retendering. The entire tendering process took I year and 4 months. Due to the implementing agency's unfamiliarity with evaluation procedures for prequalifications of contractors and joint ventures for the major civil works contract, interested bidders were notified of award before review and clearance from the Bank. 13. The project was innovative in attempting to rehabilitate, rather than completely restructure, an irrigated area. It was focusing on Government's efforts on smallholder food-crop development, while prior irrigation development had been in the hands of large- -5- scale banana growers. It sought to improve management of the river basin in a participatory approach so that water could be apportioned to all users. These lessons will have to be learned again by the successor Somali Government. -6- Table 1: Related Loans and Credits Credit Purpose Year Status Comments Title Approved 623-SO Drought Rehabilitation 1976 Completed Difficulties were encountered with staffing, poor Program performance of consultants and procurement of machinery 635-SO N.W Region Agriculture 1976 Completed At completion, the bunding component (the main Development activity dealing with soil conservation and moisture retention) benefited a larger number of farmers than estimated at appraisal. 972-SO Bay Region Agriculture 1979 Completed This was a first phase of a long-term development Development program to provide infrastructure, institutional strengthening, an information base and to provide funds for the second phase. A020-SO Agriculture Sector 1986 Completed Impact of project on economy was weakened by Adjustment Government's inability to adhere to macroeconomic program. 1538-SO N.W. Region Agriculture 1985 Completed Project expanded soil and water conservation works to include terracing and contour hedging as well as bunding. 1774-SO Semi-Mechanized Rainfed 1987 Suspended & Agriculture Balance Canceled -7- Table 2: Project Timetable Steps in Project CNcle Date Planned Date Revised Date Revised Revised Date Actual Date Time Table 11I!84 Identification August 1983 August 1983 (Genale Area) Preparation Sept-Oct Sept. 1983 to 1983 to June September 1985 1988 Appraisal June 3, 1985 June 1987 June 18, 1988 Aug-Sept Sept. 13, 1988 1988 Negotiations Jan. 23, 1989 Board Presentation March 24, December July 1989 Sept. 12, 1986 1987 1989 Signing September September 28, 1989 28, 1989 Effectiveness December 28, March 28, March 20, 1989 1990 1990 Project Completion December 31, Suspended in 1995 March 1991 Credit Closing June 30, 1996 June 30, 1996 Table 3: Credit Disbursements: Cumulative Estimated and Actual (US$ millions) FY9 . FY91 $1 . FY94 FY9. I9 Appraisal Estimate 1.50 3.00 8.50 16.00 22.70 27.0 28.50 Actual 1.99 1.99 1.99 1.99 1.99 1.99 1.99 Actual as % of Est. 132% 66% 23% 12% 8% 7% 7% Date of Final Disbursement: June 7, 1990 -8- Table 4: Allocation of Proceeds Original Allocation Actual Category SDR Disbursements Equivalent 1 Civil Works: (a) Under Parts Al, A2, A3 8,700,000 (b) Other 1,560,000 2 Vehicles, Equipment & 1,980,000 Materials 3 Agricultural Inputs 630,000 4 Consultants' Services & 4,760,000 Training 5 Operating Costs 1,150,000 6 Refunding of PPF Advance 1,120,000 1,143,746 7 Unallocated 1,300,000 Special Account 381,741 Canceled 19,674.513 TOTAL 21,200,000 21,200,000 Table 5 Bank Resources: Staff Inputs State of Project Cycle Planned Revised Actual Actual Cost S.W. It S.W. i S.W. USs 000 Preparation 93.9 193.4 Appraisal to Negotiations 18.4 43.2 Negotiations to Board 8.3 21.6 Supervision 14.7 47.6 Completion 11.0 2.5 5.0 Total N.A. 137.8. 292.9 1/ Data unavailable 2/ Including planned input from FAO/CP of 7.0 s.w. which was not utili7ed -9- Table 6: Bank Resources: Missions 11roth YcAr Nwr*ber 0a1- Sp',cial Implm1n Do l- pU of of in Skill I tation Impact Problems Ptr'0as FivId Status 2! 2/ 3/ lruilration 2.:. 85li *0 . 2 8 1 a -** 4 9 Mi.X 'u X 0 -1 - *-<.. luI Pruwppmaual 5 21 Ap1r:hui.'^" 17 Aprid- I . * 18 thrr'uOl Bud 5npeVsi1on I I * i 2 6 U F Supervison .:.*. * " 11 B < UL F and P C wi,rnqil64tw 1/ A = Agriculturist, AG = Agronomist, D Drainage Advisor, E = Economist, EG Engineer, FA= Financial Analyst, IE = Irrigation Engineer, LT = Land Tenure Specialist, = Resident Mission 2/ HS = No Significant Problems, S = Moderate Problems, no deviation from appraisal, U = Major Problems being addressed, HU = Major Problems not adequately addressed 3/ F = Funding, P = Procurement PEOPIL'S DFMOCRAI IC YEMEN ARAB REPUBIIC OF SOMALIA REPUBIKC YFMEN FARAHAANE IRRIGATION REHABILITATION PROJECT SHEBELLI RIVER BASIN DJIBOUTI DJIBOU11 00 ABARA I( [ .. -- ..<... .. RA s.a waf.il,DtfiU «J'RA)C SIT >- s 0.,.g......ch.. Aoolsi' IV) (>Nf)IX AfIfKOLN SHnFIv H___RAN___- .¯ Qoryooley Ag1d, A..d.gI~yETHI0151A Gaywarow, / KENYA // Falkeerow 0 FARAHAANE Cabdi I / / / f l S/ Barrage j //"I OI Project Area jr Project Headquarters ^ vPROPOSED: KEMain canals l Existing main canal LW .6r .6 o be rehabilitated Secondary canals G a Main drain SISAB CANAL aSecondary drains Gravel roads Maduow Drainage pumping station - - Existing canals for rehabilitation S ALIAv Barrages to be rehabilitated Jeerow EXISTING: FARAHAANE IRRIGATION Metaled roads REHABILITATION PROJECT Earth roads IRRIGATION SCHEME Main canals Towns 0 1 2 3 Rivers KILOMETERS international boundaries Baraestob rhailtae IMAGING Report No: 15CI83 Type: PCN