Ceylon - Drainage and Reclamation Project

JILE CRPY R E SRESTRICTED Report No. PA-ZZa This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION DRAINAGE AND RECLAMATION PROJECT CEYLON September 17, 1969 Agriculture Projects Department  CURRNCY 34UIVAIfNTS At "Official" Exchazxe Rate: US$1.00 - Ceylon Rupeea (Rs) 5.95 Rs 1.00 * US$0.168 Rs 1 million - US$1680070 At Higher Effective Exchange Rate: US$I.00 - Ceylon Rupees (Rs) 9.23 RS 1.00 - US$0.108 Rs 1 million US$108*340 WEIGHTS AND MK&SURES 1 acre (ac) - o0.05 hectares 1 mile (Mi) - 1.609 kilometers 1 square mile (sq mi) - 2.590 square kilometers 1 inch (in) - 2.5 centimeters 1 foot (ft) - 0.3048 meters 1 metric ton (m ton) - 2,204 pounds IWCAL ME;ASURES 1 bushel (bu) paddy - 46 pounds paddy 48 bushels - 1 metric ton ABBREVIATIONS MSL - Mean Sea Level  CEYLON DRAINACE AND RECLAMATION PROJECT TABLE OF CONTENTS Page No. SUMMARY AND CONCLUSIONS ....................... i i I. INTRODUCTION . ........................................ 1 II. BACKGROUND ........... ............................... 2 III. PROJECT AREA .................... 3 A. General. . 3 Lands . .................3....... 3 Climate.. 4 Soils .. . . . . . . . . . . . . . . . . . . . . 4 Topography and Drainage . . 5 B. Agricultural Aspects. 5 Present Crop Production. 5 Land Tenure and Farm Size. 6 Population .. 6 Marketing and Transportation. 6 Supporting Services. 6 IV. THE PROJECT . .................................. 7 A. Description. 7 B. Proposed Works. 8 Drains . .. 8 Drainage Outlets. 8 Flood Control and Supporting Works . . 8 Construction Equipment. 9 C. Cost Estimates and Financing .10 Status of Engineering. 10 Cost Estimates . .10 Financing . .11 Procurement. 11 Disbursement . .11 Accounts and Auditing . .11 This report was prepared by Messrs. Douglass, Myint and Chang and is based on findings of a mission composed of Douglass, Chang, Sonley (Bank) and Boumendil (FAO) which visited Ceylon in September 1967, and subsequent missions comprising of Messrs. Douglass (Bank), Oudshoorn and De Glopper (FAO consultants) in December 1968 and Chang in March 1969.  Table of Contents (ctd.) Page No. V. ORGANIZATION AND MANAGEMENT ............ ............. 12 A. Designation of Responsibility .... .............. 12 Construction ................................... 12 Agriculture Development ..... ................... 12 Coordinating Machinery ......................... 13 Operation and Maintenance ..... ................. 13 B. Recovery of Costs .............................. 13 VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FARM INCOMES .14 A. Production ...................................... 14 B. Market Prospects ............................... 14 C. Prices ......... ................................ 15 D. Farm Incomes ................................... 15 VII. BENEFITS AND JUSTIFICATION ............. ............. 16 VIII. RECOMMENDATIONS .................. ................... 17 ANNEXES 1. Present and proposed land use of project area 2. Soils 3. Factors affecting rice yield Table 1: Basic yields under normal conditions Table 2: Estimate of present yield in project area Table 3: Estimate of future yield in project area Table 4: Increment of yield before and after project 4. Extension service in districts containing project 5. Cost estimates, equipment and materials and expenditure schedule Page 1: Cost Estimates Page 2: Equipment and Materials Page 3: Expenditure Schedule and Capital Costs 6. Acreage, yield and production with aad without project 7. Market prospects and prices for rice 8. Rate of return to the economy Page 2: Family Labor Cost included Page 3: Family Labor Cost excluded MAP Ceylon DrainaFe and Reclamation Project  CEYLON DRAINAGE AND RECLAMATION PROJECT SUMMARY AND CONCLUSIONS i. This report contains the appraisal of a drainage and reclamation project to benefit 13,200 ac in six non-contiguous areas on Ceylon's south- west coast for which an IDA credit of US$ 2.5 million equIvalent is proposed. Agriculture is the largest single sector in C ln 'q Peonory. The nrimar- aim of the Government's agricultural policy is to be self-sufficient in food crops, particularly rice, and to reduce foreign exchangt expenditutres for 'm'- ports. The southwest coast is the most densely populated area of Ceylon and all lands now suitable for agriculture are utilized. The project would re- claim low lying swamp lands making them suitable for double cropped paddy and contribute to Ceylon's effort to become more nearly self-sufficient in rice. ii. The project area consists or low lying lands along strean courses and adjacent to coastal lagoons. These areas suffer from high water table conditions and frequent flooding. Agricultural production in the proJect area is limited and hazardous due to the poor drainage conditions and frequent flooding. The project works would improve drainage conditions, reduce flood hazards and minimize saltwater intrusion and make the area suitable for dependable double cropping of paddy. Project works involve improvement of the existing drainage system by deepening, enlargement and ex- tension of the system, improvement of the drainage outlets to the sea and con- struction of levees with control structures so drainage can be controlled and the lands protected from all except major floods. iii. The estimated cost of the project is Rs 24.4 million (US$ 4.10 mil- lion equivalent) of which Rs 10.0 million (US$ 1.7 mil'lon equivalent) would be foreign exchange. The proposed IDA credit of US$ 2.5 million equivalent would cover approximately 60% of the total cost and be used to finance imports of construction equipment and materials, the foreign exchange component of an equipment specialist, and a portion of the local expenditures to be incurred in constructing the project. The remaining costs would be met by Government budget allocation. All tendering for procurement of equipment and imported materials would be on the basis of international comnetitive bidding. Con- struction work would be by force account using the imported eauipment supple- mented by equipment now available in thc Irr{gation Department. iv. The Irrigation Department of the Ministry of Land, Irrigation and Power would be responsible for the design, construction and operation and maintenance of the project facilities. The Agriculture Department. of the Ministry of Food and Agriculture, would provide research, extension and im- proved seeds. The Agrarian Services Department would insure supply of fertil- izers, pesticides and weedicides. Credit would be supplied by the People's Bank through cooperatives. To achieve the proposed rates of development, the activities of these organizations would be coordinated through a cormi