RETURN TQ RESTRICTED REPORTS-DESK . l f Report No. TO-348b

ONE WEEK

Public Disclosure Authorized 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 The report may not be published nor may it be quoted as representing their views.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 Public Disclosure Authorized

SEYHAN IRRIGATION PROJECT

ADANA PROVINCE

TURKEY Public Disclosure Authorized

May 21, 1963 Public Disclosure Authorized

Department of Technical Operations CURRENCY EQUIVALENTS 9Q00 Turkish Lire (TL) = U.S. $1. 00 TL 1.00 = U.S. 11.11¢ T U R K E Y

SEYHAN IRRIGATION PROJECT

TABLE OF COITENTS Page No.

SUMMARY i - ii

I. INTRODUCTION 1

II. BACKGROUND 1

III. THE PLAIN 2 A. General 2 B. Climate 3 C. Soils, Topography and Drainage 3 D. Farm Size and Land Tenure 5 E, Transportation and Marketing 5 F. Present Cropping Pattern and Yields 6 G. Future Cropping Pattern and Yields 6

IV, THE PROJECT 7 A. Froject Definition 7 B. Public Works 8 CN On-Farm Development 10 D. Construction Schedule 1. E. Expenditure and Cost Estimates 11

V. ORGANIZATION AMD MANAGEMENT 13 A. Organization for Execution and Operation of the Project 13 B. Construction 14 C. Operation and Maintenance 14 D. Technical Assistance and Services to Farmers 15 E. Credit for On-Farm Development 16

VI, OPERATING RESULTS 17

VII. BENEFITS AND JUSTIFICATION 19

VIII. CONCLUSIONS AND RECOMMENDATIONS 20

ANNEXES 1. Existing and Proposed Irrigation Works 2. Soils 3. Present Cropping Pattern 4. Future Cropping Pattern 5. Units and Existing Construction Contracts 6. Water Supply 7. Water Requirements 8. Construction Schedule - Public Works 9. Estimate of Costs 10. Map T U R K E Y

SEYHAN IRRIGATION PROJECT

SUMMARY i. The Government of has requested an IDA credit to help finance part of the Government's plan for irrigation and drainage in the Adana Plain in southern Turkey. The project proposed for IDA financing is Stage I of the Seyhan Irrigation Development Plan, which is itself the third phase of a multipurpose project in the Adana Plain consisting of flood control, power and irrigation. The first phase, for flood control, was completed in 1953. The second phase, comprising an earthfill dam, a powerhouse with two 18,000 kw.units and about 80 km of transmission line was completed and put into operation in 1956, The foreign exchange cost, US$22.8 million, was financed by Bank Loan 63-TU. ii. The whole Seyhan irrigation development would cover 170,000 hectares net and certain common works were constructed at various times between 1940 and 1956. These include the and reservoir, the right and left bank conveyance canals and the Seyhan and intercep- tion canals. Completion of the whole plan falls into three parts related to the irrigation of 53,000 hectares net, 34,000 hectares net and 83,000 hectares net. The main works in Stage I would be the modification and re- habilitation of some of the common works previously constructed and com- pletion of construction which is already in progress of laterals, tertiaries and drains to serve 53,000 hectares. WJork on the 34,000 hectares of Stage II, where no work has yet been done, would not be started until Stage I is well on the way to completion. Meanwhile, development of Stage III, covering 83,000 hectares of low-lying land, would be deferred. iii. The project would provide a reliable water supply and drainage system to an area which, though under cultivation, is at present dependent upon rainfall which is insufficient. Only a small part of the area has had some form of irrigation. The principal crops would be cotton, cereals, citrus fruits and vegetables and, with adequate irrigation and drainage facilities the area should be very productive. iv. The estimated expenditure necessary to complete the project (Stage I), including costs of construction and on-farm development, would be TL 451.2 million (US$50.million) of which US$6.2 miLlion would be in foreign exchange. The amount of the proposed IDA credit would be US$20 million or about 40 per cent of the total estimated cost. The IDA credit would be used to finance both construction and on-farm development. v. Construction and operation of the project would be the responsi- bility of Devlet Su Isleri (State Water Authority), an agency within the Ministry of Public Works, During the construction stage, a consultant acceptable to IDA, would be employed by the Turkish Government to assist in organization and to advise on design and construction procedures. For the operation of the project after construction personnel would have to be specially trained, since there are at present no comparable irrigation projects in Turkey. A qualified engineering consultant, experienced in operation and maintenance of large projects, would be employed to organize and direct operations during the first five years. vi. Three agencies of the Government, namely Topraksu (Soil Conser- vation and Farm Irrigation Service) and the Extension Service, both under the Ministry of Agriculture, and the Agricultural Bank, would provide services necessary for the successful operation of the project. Topraksu and the Extension Service would be responsible for advising on irrigation methods and on improvements in the cropping pattern. Topraksu would operate five demonstration farms and a research station and would be responsible for installing the necessary on-farm drainage systems, for providing farm plans and for assisting in land leveling and on-farm irrigation work. Farm credit would be provided by the Agricultural Bank to enable farmers to pay for the ess3ntial on-farm work and to enable them to purchase seeds, fertilizers, insecticides, equipment and livestock. vii. DSI would levy irrigation charges sufficient to recover from farmers annual operation and maintenance costs plus amortization of the irrigation works. For on-farm development work, the Agricultural Bank would make loans to farmers repayable over periods varying from 5 to 20 years and bearing interest at the current rate for loans of this type (at present 5 per cent). viii. A measure of the economic benefits of the project is an increase in the annual net farm benefits of TL 107 million. The net farm benefit/ investment ratio would be about 16 per cent. ix. The project is sound and is suitable for an IDA credit of US$20 million. T U R K E Y

SEYHAN IRRIGATION PROJECT

I. INTRODUCTION

1. A mission visited Turkey between June 19 and July 7, 1962 for the purpose of selecting and appraising for financing a part of the Government1 s development plan for irrigation and drainage in the Adana Plain, This appraisal report is based on material supplied by the Turkish Government, on the several reports prepared by consultants and consulting firms and on the findings of the mission.

II. BACKGROUND

2. The Adana Plain, comprising about 220,000 hectares, is located in southern Turkey. The lower end of the plain borders the Mediterranean Sea. The area is bounded on the west by the Berdan River and on the east by the . The bisects the plain, flowing in a south- westerly direction to the sea. Adana, the fourth largest city in Turkey, lies in the north central portion of the plain on the Seyhan River (see map).

3. The development of the plain is being undertaken as a multi- purpose project consisting of flood control, power and irrigation. Phase Ones the flood control levees along each of the three main river3, was com- pleted in 1953. Phase Two, consisting of an earthfill dam, a powerhouse with two 18,000 kw units and about 80 km of transmission line, is complete and was placed into full operation in May 1956. The foreign exchange cost of Phase Two was financed by Bank Loan 63-TU, amounting to US$22,844,000. Phase Three, which is already under way, comprises irrigation and drainage in the Adana Plain over a net irrigable area of 170,000 hectares. The in- stallation of a third power-generating unit is under consideration. 4. This report is concerned mainly with Phase Three. Details of irrigation works already completed or in progress are shown in Annex 1. The main items are: two unlined earth canals, one 40 km and the other 19 km, built in 1940 and 1941 respectively; a concrete diversion dam completed in 1942; an irrigation system constructed in 1946 to serve 16,500 hectares, which is now being rebuilt; and the Seyhan dam, completed in 1956 to provide storage of water for irrigation and power.

5. About the time Phase Two came into operation in 1956, soil and drainage investigations indicated the serious nature of the drainage problem and at this point the Bank suggested that before construction of the system commenced, the technical problems should be further studied and a plan for development of irrigation and drainage on the plain should be prepared. The Turkish Government retained the firm of Tippetts, Abbett, McCarthy and Stratton (TAMS) to make the necessary studies and prepare such a plan. About US$400,000 under Loan 63-TU was applied towards the cost of - 2 - this study. The report "Development Plan for Irrigation and Drainage of Adana Plain" was published in October 1961.

6. In addition to the reports prepared by consulting firms, several reports prepared by individual consultants were available to the mission. All reports have been made in cooperation with Turkish authorities.

III. THE ADANA PLAIN

A. General

7. As proposed by the Government, the entire plan for irrigation and drainage development in the Adana Plain would cover an irrigable area of some 170,000 hectares. The western part of the Adana Plain is called the Tarsus Plain, having an irrigable area of about 68,000 hectares; the eastern part is called the Yuregir Plain, having about 102,000 irrigable hectares (see map).

8. The Seyhan reservoir, which would supply the irrigation water, is located north of the City of Adana.

9. The agriculture of the area is characterized by the extreme con- trasts one would expect to find in an area undergoing a change from primitive agricultural methods to modern ones. Tractors are common; nevertheless, much manual labor and many outmoded practices are still being usedc, On well-operated farms ha-zing access to irrigation, commercial fertilizers, plant protection measures and other up-to-date farming prac- tices are applied. Very little fertilizer is used for crops grown under dry farming.

10. Much of the industry and trade of the region is based on agriculture. The Adana Plain produces 10-15 per cent of the cotton output of Turkey, and the cotton processing and textile industries are of great importance to its economy. Fruits and vegetables are shipped to and as well as to local markets. Cotton growing in particular, but also the production of other crops, is an important source of employment to the local population and to people of neighboring areas.

11. Only about 10,000 hectares of the area have, at one time or another, been irrigated. Some 82 per cent of the land under irrigation has been producing cotton, and of the remainder, about one half has been devoted to rice and one half to citrus and vegetables. This cropping pattern is similar to the present cropping pattern under dry farming.

12. The Seyhan right bank irrigation system, designed to serve about 16,500 hectares of irrigable land, was constructed in 1946. However, on the average, only about 3,300 hectares a year have actually been irrigated; in 1960, the irrigated area was about 5,000 hectares. There are three principal reasons for the low utilization of this irrigation system: - 3 -

(1) the system was poorly designed and could not deliver water for the entire area; (2) its maintenance was neglected, which further reduced the water delivery capacity of the system; and (3) inadequate drainage was provided, which resulted in waterlogging, which, in turn, discouraged farmers from expanding irrigation,

13. The balance of the area being irrigated - about 5,000 hectares - is irrigated by pumping water from rivers, wells and existing irrigation canals. In recent years, there has been a growing trend toward pump irrigation pending the construction of irrigation canals.

14. Few of the potential benefits have been realized under existing irrigation, due primarily to the commonly unreliable supply of water.

B. Climate

15. The climate is Mediterranean. The summers are hot, with average monthly temperatures of 200 to 280C from May through October. The winters are mild, with average monthly temperatures of about 90 to 130C from December through March. Frosts are rare and have not been prohibitive to citrus production, although the lowest recorded temperature is -7.loC (190F), Howeveor, these cold periods are generally brief. The average amou,i,t of bright sunshine is about five hours per day for December and January and about six hours per day during February. 16, The average annual rainfall is low, i.e. about 600 mm (24 inches) at Adana, based on the records of the period 1927-1959, and varies greatly from year to year. Most of the rain falls during the winter and the summer precipitation is scanty, averaging from 5 to 52 mm a month from April through October. In some years, moderate rainfall starts as early as September and sometimes extends into May. 17. The growing season tends to be too short for long-staple cotton due to the rainy season. Winter crop production is limited both by climate and soil.

C. Soils, Topography and Drainage 18. Land classification and soil surveys show that the net irrigable area is about 170,000 hectares. A more detailed description of the soils is given in Annex 2. 19. Topography of the Plain is well suited to irrigation. Gradients vary from steep in the upper parts of the Plain to relatively flat in the middle and lower sections. Slight to moderate undulations occur throughout the Plain, thus requiring some degree of land planing or leveling on all land. In parts only land planing will be required, while light to heavy leveling will be required in others; areas requiring heavy leveling amount to only a small percentage of the total. - 4 -

20. Drainage is the most important physical factor in developing the plain for irrigation. All of the plain must have a drainage system to remove surface water resulting primarily from heavy rainfall during the rainy season. Approximately 85 per cent of the plain would require sub- surface drainage to control the water table.

21. Numerous studies and experiments have been conducted on the drainage of the plain from which it can be concluded that the necessary drainage can be provided at a reasonable cost.

22. In the northern part of the plain, where gradients are satis- factory, surface drainage is not a problem. Nevertheless, drainage is required to remove the surface flows from the project quickly and without damage to lower areas. Permeabilities of the soil profiles are satisfactory and should preclude the necessity for extensive farm drainage in the higher parts of the plain.

23. Generally, the texture of the soil profile becomes progressively heavier and less permeable from north to south. The amount of drainage required would be in the same relation; that is, proceeding from the higher to the lower elevations more drainage with generally closer spacing would be required.

24. The central and lower delta areas have very high water tables, under present conditions, fluctuating from the surface to one to three meters below the surface depending on the location and the season. Artesian pressures are also present in the lower elevations but indica- tions are that very little water is contributed to the water table by the artesian aquifers.

25. Approximately 20 per cent of the plain bordering the Mediter- ranean Sea and lying below the 2.5 meter contour line is too low for gravity out-fall drains and pumping would be required to evacuate the drainage water which would be conveyed to the pumps by open drains. None of this area is included within the project under consideration for IDA financing, which lies in the northern section of the plain and includes for the most part soils more easily drained.

26. To summarize, available data indicate that adequate drainage can be provided at a reasonable cost. Experiments on a fairly large scale by Topraksu on its Tarsus Research Institute Substation have demonstrated that the land can be successfully drained and where necessary, reclaimed. The Topraksu demonstration is being carried out on some of the most difficult lands to drain in the entire area. It was found that, after drainage was installed, rainfall alone was sufficient in some years to cause a marked improvement in the soils through leaching out deleterious salts and, after growing rice for two years or less, the land was in sufficiently good con- dition to start growing other crops.

27. The soil structure, the presence of substantial amounts of gypsum in the soil, adequate rainfall during the winter months and the calcium content of the irrigation water, are all conducive to reclamation and sustained irrigation where adequate drainage is provided. - 5 -

D. Farm Size and Land Tenure

28. The average farm size in the project area has been estimated to be between 10 and 20 hectares. Although many of the holdings consist of several scattered tracts, relatively large fields comprising several hectares predominate. From time to time efforts have been made to promote the consolidation of holdings, but progress is very slow. Under present operating practices, several holdings may be combined into one operating block.

29. A majority of the farmland is cultivated, either by owners them- selves or by hired managers. Tenant farming is rare and is found almost exclusively on land growing rice.

30. According to an estimate of the Ministry of Agriculture, about three fourths of the riceland is leased. Most of the rice is produced by large-scale operators on land rented from small farmers. The commonly prevailing one-year leases are not conducive to improvements in soil fertility and thus the rice yields are low on these areas which have been continuously leased.

E, Transportation and Marketing

31. The Adana Plain has excellent air, sea and ground transportation connections with the rest of the country. A mainline railroad and highway run tnrough the northern and northwestern part of the project. Adana has good daily air service to Ankara and Istanbul. There are two harbors, Iskenderun and in the vicinity of the project region.

32. There are also a few paved highways running through the project area. The feeder roads are, however, not surfaced and are practically un- usable for transportation in the winter. The need for improved feeder roads is recognized and the Government plans to provide an adequate farm- to-market road system in the area.

33. The local textile industry and export outlets provide a market for all the cotton that is presently produced. Most of the cereals and a sizeable portion of the vegetables now produced in the area are consumed locally. There are, however, organized wholesale markets for fruits and vegetables in Adana, Tarsus and Mersin and some fruits and vegetables handled in these markets are hauled to Ankara and Istanbul.

34. There is a citrus packing plant located in Mersin, but with present production the capacity of the plant is only partially utilized. - 6 -

F. Present Cropping Pattern and Yields

35. At the present time, agriculture in the area is devoted almost exclusively to the production of cash crops. The existing cropping pattern and yields under dry farming benefit from, but are also limited by, the Mediterranean climate with its relatively hot but almost rainless summers. Cotton, which is well suited for large-scale production, but which gives a meager yield under these climatic conditions, is the most common cash crop, occupying about 67,000 hectares, equivalent to 87 per cent of the area being dry-farmed; the yield is only about 600 kg of seed cotton per hectare. The principal reasons for low yields are inadequate soil moisture in late spring and summer, continuous growing of cotton year after year without a proper crop rotation and the minimum use of fertilizers. Actually, cotton yields appear to be declining for these reasons. The second largest portion of the area - about 12 per cent - is devoted to cereals, principally wheat, giving a yield of about 1,500 kg per hectare. Approximately one per cent of the area under dry farming is used for melons and watermelons, while vegetable output is negligible.

36. Existing irrigation has not led to any noticeable changes in the cropping pattern, or crop rotation practices. About 82 per cent of the irrigated land is producing cotton, while rice is grown on about 7 per cent, Citrus and beans each occupy about 4 per cent and vegetables about 3 per cent.

37. So far, only a minor portion of the potential irrigation benefits have been realized from the areas under irrigation. This is due primarily to lack of "know-how" on the part of the farmers, since services to farmers are inadequate at present and many farming practices being followed are out- moded. Hence, it is important that services to farmers should be improved (paras. 84-88).

38. In Annex 3, details are given showing the existing cropping pattern and yields in the area.

G. Future Cropping Pattern and Yields

39. When irrigation becomes available as a result of the project, it is expected that a more intensive pattern of summer cropping would be followed and that the area under cotton would decline. The areas under fruit and vegetables would increase. Irrigated grass and legumes, chiefly alfalfa, are the principal new crops expected and are greatly needed in the rotation for improving soil fertility. In the future, cotton is expected to occupy only about 35 per cent of the irrigable land. Citrus, principally oranges, would be produced on about 10 per cent of the area; other fruits, 2 per cent; vegetables and oilseeds, each about 8 per cent, and alfalfa, 20 per cent. No substantial changes are expected in the relative areas of rice and other cereals. - 7 -

4o. It is expected that about 45 per cent of the area would be used for producing winter crops without irrigation. The largest portions of this area would be occupied by dry beans and dry peas, while winter vegetables, melons, watermelons and cabbage would be grown on the balance of the area,

41. A considerable increase in yields of crops per hectare is ex- pected to result from the project, mainly due to improved drainage and moisture conditions which will make possible better farming practices. Higher yields are already being obtained on the better presently irrigated farms in the area. The estimates of average yields to be expected in the future when the project is in full operation are realistic; they are lower than the yields already being obtained on experimental irrigation farms in the region. The production and yields of winter crops will benefit from drainage and from the general improvement in moisture conditions and better farming practices. Annex 4 gives details of the expected future cropping pattern and yields.

IV. THE PROJECT

A. Project Definition

42c, Selection of a part of the irrigation and drainage development of the Adana Plain as an appropriate project for IDA consideration has presented some difficulty, The entire development, as propo.ed, is large and complicated and beset by problems of providing adequate drainage at reasonable cost, by problems of organization and management and of finance. The mission concluded that the development plan for the whole 170,000 hectares of irrigable land as proposed by the Turkish Government was technically sound, but that it was essential that the development should be carried out to a carefully phased program, giving priority to completion of works already started and deferring work in the lowest lying parts of the Plain.

43. Some of the works under the development plan have already been completed; works now under contract (Annex 5) and in the process of being constructed are scattered over 57,000 hectares gross (53,000 hectares net irrigable) but in no case have these works been completed to the point where water can be delivered to the land. No start has been made on the two areas having the greatest potential. Having regard to financial and practical limitations and to the amount of work that can be efficiently undertaken within the next few years, the mission has concluded that at this time it would be best to concentrate on development of 87,000 hectares out of the total area of 170,000 hectares; and that within the 87,000 hectares priority should be given to completing the development already started on 53,000 hectares net irrigable. Meanwhile, development of the remaining 83,000 hectares, which comprise the lower-lying part of the plain where drainage would be more difficult and costly, should be deferred.

44. Completion of the development plan should then be regarded as falling into three distinct stages: -8-

Net Irrigable Hectares Stage I, on which work is already under way 53,000

Stage II, on which works would be started when Stage I is nearing completion 34000

87,000 Stage III, comprising the remainder of the area 83,000

Total 170,000

45, The project which it is proposed IDA should help to finance would be Stage I, comprising the development of irrigation and drainage for a net irrigable area of 53,000 hectares, the design of works for Stage II, and investigations and feasibility studies for Stage III. Completion within three years, 1963/65, of Stage I works would be within the capacity of DSI.

46. Stage II comprises the development of 34,000 net irrigable hectares of the best land, on which no work has yet been started and the Turkish Government wants to start work on Stage II as soon as possible. However, with the resources of men and money available, it would not be possible efficiently to undertake Stages I and II concurrently. Work on Stage II should follow work on Stage I and it can be shown that, though Stage I can be economically justified on its owns Stages I and II together show a better economic justification than Stage I by itself.

47. All resources at the disposal of the Turkish Government for development of the Adana Plain, including the proposed IDA credit of US$20 million equivalent, would be concentrated on Stage I. IDA funds would only be available for Stage I and construction work on the remainder of the plan would be started only when satisfactory progress had been made on Stage I. In order to make the best use of trained men and construction forces financial arrangements for Stage II should be considered not later than about May or June, 1964.

B. Public Works

48. The works proposed for Stage I include the following:

1. Completion of: 1) modification of the irrigation and drainage system built in 1946 to irrigate about 16,500 hectares; 2) irrigation and drainage works already started to serve an additional irrigable area of 36,500 hectares; 3) construction of the easternmost main drain to the sea; 4) modification and rehabilitation of the diversion dam, including the installation of control gates and the reshaping and lining of the 40 km right and 19 km left bank conveyance canals (details are given in Annex 1). Items 3) and 4) would serve Stages II and III as well as Stage I.

2. Construction of the remaining tertiary laterals, drains and operating roads not now under contract, to put into operation at the earliest practicable time the entire 53,000 hectares.

49. The laterals and canals would be constructed with concrete lining and would have 11):1 side slopes, except as may be modified for the tertiary laterals. The design is based for maximum average delivery of 0.8 liters/ sec/ha for short season crops, with increases where rice is to be grown. The delivery requirement is based on the maximum computed requirement for July 1947, the month of maximum theoretical requirement. Farm deliveries are set at a sufficient height above ground to provide efficient irri- gation. Details of water supply are given in Annex 6 and of water require- ments in Annex 7.

50. Basically, the drains are designed to carry irrigation drainage water and runoff from rainfall. Calculations of runoff assume a rate of runoff of 0.46 liters/sec/ha during an average storm. In determining the size of the larger drains, flood routing and storage have been considered to avoid overdesign and the depth has been computed to permit free fall from the farm drains at a depth of two meters. Over parts of the area, outlets to the farm tile drains would be submerged while flood runoffs are occurring. Because of the flat slopes and low elevation, there is no practical alternative to submergence; damage to the farm tile lines, or detrimental effects on drainage are not expected to be significant. Tertiary drains generally would be adjacent to and on the uphill side of tertiary laterals. The secondary and primary drains would traverse the plain across the low areas, generally parallel to and approximately mid- way between the canals.

51. Drainage requirements have been formulated on the basis of observation wells which have been installed throughout the plain. Some additional wells may be required on the farms to determine detailed drainage requirements.

52. Plans for the whole irrigation of the Adana Plain include the construction of a low head power plant on the left bank conveyance canal. This plant would be of low capacity and the energy would be used almost exclusively for drainage pumping in the lower parts of the project. Requirements for any appreciable amount of energy for drainage pumping would not develop for five or more years and even then the necessary power might better be supplied from other sources. The Government originally proposed the early construction of this plant but have reconsidered and are deferring the final decision to a later date. - 10 -

C. on-Farm Development

53. Although nearly all of the project lands are now in production considerable on-farm improvement would be required before the irrigation water can be used to best advantage. Depending on the condition of the land to receive water, some or all of the following work should be accomplished before irrigation is commenced: (1) leveling; (2) instal- lation of on-farm drains; (3) installation of on-farm irrigation ditches, and (4)reclamation. Topraksu would be in a position to provide technical assistance in the design, location and field engineering for this work.

54. Leveling requirements in the project area would vary from land planing to moderately heavy leveling. It is estimated that 36 per cent of the area is sufficiently uniform to require only land planing.

55. Those areas which are now saline would require installation of drains before irrigation would produce satisfactory results. Saline areas include about one third of lTP _ and portions of the other units in the flat areas. Immediate drainage would be required in those areas. Immediate drainage would also be required in areas which have a shallow depth to groundwater.

56. It is proposed that farm drainage would be accomplished with buried tile lines spaced as close as 50 meters in the heavier soils. In these soils, tile lines would be placed at a depth of 108 meters to the top of the tile, which would provide a 1.2 meter (4 feet) depth to groundwater between drains. Soils with better permeability would permit wIder drain spacing and still maintain the optimum 1.2 meter (4 feet) depth to ground- water between drains. In those areas where groundwater is below a three- meter depth, drainage can be deferred until the groundwater rises. Ultimately most of the irrigable land will require some drainage.

57. Surface drainage from the farm can be readily accomplished through leveling. A collection point would be needed on the lower end of each farm from which the water would be conveyed into the project drain in a paved chute,

58. Except on the largest farms, irrigation ditches would be con- structed of earth.

59. Reclamation involves leaching of salts from the soil profile and improving the soil structure. Although some of the lands are highly saline, reclamation would not be unduly difficult or expensive after drains are installed.

1/ The Adana Plain is divided into the Tarsus Plain and the Yuregir Plain (see map). Individual irrigation units are designated lTP, lYP, etc, D. Construction Schedule

60. Details of the proposed construction schedule are given in Annex 8, showing that the project works (Stage I) should be completed and in operation by M4arch 1, 1966; this would be within the capacity of DSI.

61. On-farm development work, including drainage and leveling, would begin in 1963 and most of it would be undertaken during the ensuing five years; it is expected that about 20 per cent of it would remain to be com- pleted after 1968.

62. Also shown in Annex 8 is a possible construction schedule for Stage II; assuming satisfactory progress on Stage I and the availability of adequate financing for Stage II, construction of Stage II works could begin in March 1965, i.e. about a year before the completion of Stage I works, in order to make the best use of the available trained personnel and construction forces.

E. Expenditure and Cost Estimates

63. The estimated expenditure required to complete the IDA project (Stage I) would be TL 451.2 million (US$50.1 million), starting from March 1, 1963, the beginning of the financial year 1963-64. This estimate includes all costs of constructing the required irrigation works to serve the proposed irrigable areas and also includes certain costs allocable to Stage, II and III as well as the costs of the on-farm development work. A surumary of these expenditures is shown below:

TL million Modification of common works 20.7 Primary and secondary laterals and drains 16.4 Tertiary laterals and drains 52.0 Operating roads 18.0 Contingencies 21.3 Overhead 17.4 Sub-total 145o8 Rights of way 38*0 Operation and maintenance during construction 10.0 Consultants 5.4 Topraksu and Extension Service equipment and spare parts 19.2 Equipment, tools and spare parts 31.5 Interest during construction 4.3 Sub-total 254.2 On-farm development 197.0

Total to Complete 451.2

US$ equivalent 50.1 million of which foreign exchange 6.2 million - 12 -

64. Although only Stage I has been selected as a project for IDA financing, estimated costs of completing it cannot be looked at in isolation but need to be considered in relation to costs of Stage II, since there would be some overlap in timing of works and expenditures, and since the two parts are interrelated and served by some facilities common to both, it is necessary when assessing the economic justification to make some re- allocation of costs as between Stages I and II. For these reasons detailed cost estimates are shown in Annex 9 for both Stages I and II. Annex 9 also shows the allocations which have been made in calculating, for purposes of economic assessment, the total investments against which benefits have to be compared. The estimates are realistic and contingency provisions are adequate. Annex 9 includes notes showing the basis on which costs and con- tingencies for the main items were estimated.

65. The estimated expenditure necessary to complete the project (Stage I), including costs of construction and on-farm development, would be TL 451.2 million (US$5CX1million) of which US$6.2 million would be in foreign exchange. The amount of the proposed IA credit, which would be used both for construction and for on-farm development, would be US$20 million or about 40 per cent of the total estimated cost,

66. The IDA credit would be disbursed against expenditure on the project during the period from March 1, 1963 to February 28, 1968. The equivalent of US$6.2 million would be required for imported goods and the remainder of the credit would be disbursed against local expenditure. The estimated rate of expenditure to meet the proposed construction schedule for Stage I over the five financial years 1963/4 to 1967/8 would be:

Financial Years 1963/4 1964/5 1965/6 1966/7 1967/8 Total in TL million ......

Local currency

Construction 84.0 78.0 36c4 _ - 198.4 On-farm work 25.0 28,0 46.o 34.0 25.0 158.0

109.0 106.0 82,4 34.0 25.0 356.4 Foreign Exchange 25.0 21.0 7.4 1.2 1.2 55.8

TOTAL 134.0 127.0 89.8 35.2 26.2 412.2

To complete on-farm development for Stage I the Government would provide some TL 39 million after financial year 1967/8, thus bringing total estimated expenditure to TL 451.2 million. - 13 -

V. ORGANIZATION AND MANAGEMENT

A. Organization for Execution and Operation of the Project

67. The Director General of Devlet Su Isleri (DSI), an agency within the Ministry of Public Works with headquarters in Ankara, has broad respon- sibility for planning, design, construction, operation and maintenance of all irrigation projects in Turkey. The organization and the general frame- work of procedures being followed were patterned after the U.S. Bureau of Reclamation.

68. The Regional Director, with headquarters in Ankara, is the responsible official for the general area which includes the Adana Plain and the Seyhan Irrigation Project.

69. At the field level a project-type organization, responsible to the Regional Office, is being organized to specifically supervise con- struction. Previously, this work was handled by the Regional Director's Office. Resident engineers are directly in charge of each construction contract and would continue to maintain direct control over the work at the site,

70, A laboratory at the camp at the Seyhan dam has been used for soils investigaticns and for construction soil tests. Concrete cylinders are sent to Ankara for testing. Additional equipment for earthwork contr:ol and for concrete testing is to be provided at the project where all routine tests will be made.

71. Designs based on topographic drawings are prepared for bid purposes by the design unit located at the Seyhan dam. Construction drawings are prepared by the contractor who also furnishes the survey parties for locating and profiling the irrigation facilities in the field. DSI representatives work with the field parties. Completed construction drawings are checked by the design unit and by the design staff of the Director General in Ankara.

72. Preparation of final designs by the contractors is unusual but it has the effect of providing additional staff as it is needed. Checking of designs and participation in the surveys provides adequate control by the Government and the procedure appears to be working satisfactorily.

73. Technical and administrative management of the operation and maintenance of the project would be handled by a project office with head- quarters in Adana. Major repair of all maintenance equipment would be handled in the main shop and yards to be established in connection with the project office.

74. Field offices would be established on the east and west sides of the Seyhan River to handle project maintenance and coordinate operations. Sub-offices would provide direct contact with the farmers and direct super- vision of water deliveries to the farms. B. Construction

75. DSI has several projects in various stages of completion located throughout Turkey. Many of its key employees have received training in the United States with the Bureau of Reclamation. Supervisory employees at all levels are very well qualified and show evidence of being well trained. However, there is a shortage of engineers in Turkey and there is consider- able competition between Government and private industry. Since salary rates favor private industry, the Government often loses personnel who cannot be replaced readily.

76. The shortage of trained engineers, the resulting heavy work load on supervisory personnel and the magnitude of the construction program to be undertaken, indicate the need for employment of a design and construction engineering consultant.

77. The purpose of the consultant would be to assist in organizational matters and to insure that proper design, tendering and construction pro- cedures would be followed. This engineer would be retained during the construction period and would be stationed at the project office in Adana.

78. Of the TL 451.2 million expenditure required after February 28, 1963 (Arnex 9) to complete the project, about 145 million is for construction work to be carried out on contract; out of this TL 145 milion it is estimated tlhat about TL 80 million is covered by contracts already let, leaving some TL 65 million of contracts still to be let, All the larger canals and drains are already under contract; and the new contracts will cover construction of laterals and drains widely dispersed throughout the project area; for this reason the individual contracts are likely to be too small to attract international contractors. Local contractors who have demonstrated their competence to undertake work of the type required are expected to compete for the new contracts,

79. The bidding procedures employed hitherto by DSI are in several respects outmoded and unsatisfactory. For example, the specifications furnished to prospective bidders include the engineer's estimate with all unit prices and the bidder then indicates the percentage deviation which he proposes from the engineer's estimate. Again, some contracts provide that the contractor can be paid partly in bonds which are saleable only at a discount. The Government has agreed that for contracts still to be let for the project bidding procedures will be improved and that these unsatisfac- tory practices will be discontinued.

C. Operation and Maintenance

80. There are no irrigation projects in Turkey of comparable size or complexity. Hence, operating personnel will have to be trained. Skilled workmen can possibly be drawn from contractors' personnel, but training in maintenance would be necessary. - 15 -

81. The government plans to use one of the units as a training center. It is intended that personnel so trained would be used throughout the project and elsewhere in Turkey.

82. The shortage of personnel and lack of experience in operating large projects diotates the need for a well-qualified engineer experienced in the operation and maintenance of large projects to organize and direct operations during the early life of the project, probably for about five years, beginning in 1963. This engineer would be employed by the Turkish Government.

83. For Stage I of the project, the following operation and mainten- ance facilities are required:

Division Headquarters Offices 2 Operating Field Offices 2 Field Shops 2 Central Shop 1 Ditch Riders? Houses 28

This would provide division offices for the area on each side of the river, four operating field offices (two housed with the division offices), routine maintenance shops at each division headquarters and one major shop at the project headquarters. The project headquarters will be located in existing facilities at the Seyhan damsite.

D. Technical Assistance and Services to Farmers

84. Technical assistance and services to the farmers in the project area are provided by Topraksu (the Soil Conservation and Farm Irrigation Service) and by the Extension Service, both under the Ministry of Agri- culture; also by the Agricultural Bank, an agency of the Government, and by research institutes in Adana. All three agencies have well qualified administrators and technicians but the staffs of each would require many more technicians to meet the demands of the development program.

85. Topraksu would be the agency assuming the largest responsibility in the development program. It would be responsible for providing the necessary farm plans, guidance and assistance in land leveling and con- struction of on-farm irrigation systems and would, through contracts with individual farmers, install much of the necessary on-farm drainage system. In addition, it proposes to operate five irrigation demonstration fanrs and a research station. Topraksu's proposals for undertaking its responsibili- ties have been soundly planned and the Government will provide adequate funds through appropriations to carry them out. The capabilities of the top administrators and technicians appear very good, but additional personnel will need to be trained to meet the additional demands that would be placed on the agency. - 16 -

86. The Government intends to increase the staff of the Extension Service and to provide an adequate number of vehicles in order that appropriate contacts with the farmers can be made and maintained. The Extension Service has a great responsibility in influencing the required change in the cropping pattern by the introduction of alfalfa and other legumes and winter crops on suitable land. Likewise, with the intro- duction of alfalfa must come an increase in livestock production. This will be a responsibility of extension as well as advice on irrigation methods, crop varieties, pest control, etc.

87. Most of the research needs of the project area are being satis- factorily met by several research institutions in the project area, or in the immediate vicinity. The Tarsus Irrigated Agriculture Research Insti- tute conducts research concerning amounts and methods of water application, methods for reclaiming waterlogged and saline soils, adaptability of various crops, and fertilizer requirements. The Adana Agricultural Research Institute has been working on increasing the production of cotton and other principal crops under dry-farming conditions. Improved seed production is also an important function, of which improved cotton seed is of special importance. The production of grass and legume seed is also being started. The Adana Institute of Plant Diseases carries on research on plant diseases and does extension work on plant protection.

88. WTith the projected change in the cropping pattern, marketing arrangements (including storage, processing, transportation facilities for fruits, particularly citrus, and vegetables) will require gradual improve- ment, The studies which are already in progress with support by Government and by foreign assistance, exploring export possibilities for fruits, will be continued and expanded in view of the potential output of the project area. The export possibilities for vegetables need to be further explored. The Government intends to improve the arrangements for marketing crops and livestock and the market research services.

E. Credit for On-Farm Development

89. The Agricultural Bank is the major institutional source of credit for farmers and farmerst cooperatives. Created in 1888 to serve as a central credit institution for credit societies, which had been operating in Turkey as early as 1863, it was reorganized in 1937 and given broad responsibilities to finance agriculture and related industries and to raise capital. The Bank is set up with the status of an autonomous Government agency with legal personality governed by the Common law and by a Law of June 16, 1937.

90. The head office is in Ankara and there are 625 branches, agencies and offices all over the country including branch offices in the vicinity of the project of Adana, Tarsus and Mersin. The Bank assists farmers through about 1,600 credit cooperative societies with a membership of approximately one million and about 215 marketing cooperatives and their 15 unions. The Bank's credit operations have consisted mostly of short-term loans to farmers made either direct or through the credit cooperative societies. - 17 -

Credit has been provided in the form of loans for development and also in the form of production credits.

91. The Agricultural Bank has wide experience in agricultural credit operations, the necessary physical facilities and adequate administrative capacity. It has in the past suffered from shortage of funds but Government has undertaken to allocate sufficient funds to enable it to provide an adequate credit service to farmers in the project. Operations under the project would be carried out as follows:

a) Loans would be made by the Agricultural Bank to farmers in the project area only on the basis of farm plans prepared and approved by Topraksu and would be on terms which would provide for repayment over periods varying from 5-20 years depending on the nature of the work to be carried out and the ability of the borrower to repay. b) Loans would bear interest at the current rate for loans of this type which is at present 5 per cent per annum. c) The Agricultural Bank would keep separate records and accounts showing the use and status of the loans made to farmers in the area of the project. d) The Bank would allocate sufficient staff and make adequate arrangements for the prompt processing of credit applications and for the efficient supervision of loans and for the collection of payments. e) Loans would be disbursed in tranches by the Agricultural Bank only upon certification by Topraksu that works had been executed or expenditure incurred or that an advance of funds was needed to enable approved work to be carried out. f) When applying to IDA for withdrawals on account of local expenditures for on-farm development the Government would furnish to IDA statements by the Agricultural Bank and by Topraksu certifying that the amounts on account of which reimbursement is requested had been advanced to farmers or had been spent by Topraksu in the project area for approved on-farm development work. The statements would show the type and quantity of work accomplished.

VI. OPERATINIG RESUITS

92. Charges for irrigation water for projects in Turkey are based on the "Law Concerning the Organization and Duties of the General Directorate of the State Hydraulic Works" which was passed on December 18, 1953. Existing legislation provides adequate authority for DSI to assess and collect the necessary charges to meet operation and maintenance costs and to amortize the investment with interest. Assessments now being made under this authority on the Seyhan Irrigation Project are, however, only slightly more than the cost of operation and maintenance, which has been on a very low standard. An increase in assessments was made this past year and - 18 - another increase is under consideration for next year with the idea of making the charges about equal to the expected average annual cost of im- proved operation and maintenance under full development.

93* Cost estimates for operation and maintenance after full development are based on estimates of DSI and on observations and experience elsewhere. The estimated average annual cost for operation and maintenance of the project is TL $.8 million, or about TL 110 per hectare for the 53,000 irrigable hectares, This estimate includes an appropriate allocation of the cost of operating the Seyhan dam and reservoir.

94. It is expected that after the project reaches full development about 1973, DSI in accordance with the above Law, would levy irrigation charges sufficient to cover annual operation and maintenance costs, plus the recovery of capital investment in the irrigation works since 1953. Amortization would be over a 50 year period beginning in 1973 after com- pletion of the 10 year development period 1963 to 1972. To achieve this, an irrigation rate of about TL 220 per hectare would be needed. Until farmers have completed their repayments in respect of on-farm development loans, it is not expected that they could afford to pay irrigation charges set high enough to enable the irrigation investment to be recovered with interest.

95. The total estimated cost of on-farm development is TL 197 million (Annex 9). Each loan would bear interest at 5 per cent and would be amortized over a period of 20 years beginning the year the loan was made. When loans have been extended for the full amount of TL 197 million, which is expected by about 1973, farmers' annual debt repayments would average about TL 300 per hectare. Thus, at full development a farmer would need to be able to meet irrigation charges and debt service charges totaling about TL 520 per hectare, which would be equivalent to about 14 per cent of the expected increase in his gross income per hectare, or 24 per cent of the net increase. Such amounts, though relatively high, should be within the capacity of the farmers to pay but it would be unrealistic to expect that they would pay more. If water charges and debt service charges are recal- culated on the basis of 87,000 hectares rather than 53,000 hectares, i.e. on the assumption that Stage II development will; follow Stage I, the irri- gation rate would be TL 213 per hectare and debt service charges would average TL 260 per hectare.

96. The Government proposes to set irrigation charges high enough to recover operation and maintenance costs and as much as practicable of the investment with reasonable interest. The rates would be subject to periodic review. - 19 -

VII, DI3EFIIS AND JUSTIFICATION

97. The greatest benefit from the project would be the increased crop production to help meet the demands of a growing population. The increase in cotton output wfould help satisfy the growing domestic need, while cotton ex- ports would be maintained. There would be significant increase in citrus, fruit and vegetable production. Increased cereal production is greatly needed and would be absorbed by domestic consumption. Increasing livestock production, which is likely to mature in substantial quantities only after a relatively long development period, is needed principally for domestic markets. In addi- tion, besides helping to feed and clothe the growing population of Turkey, the project would improve the balance of payments of the country by reducing impoi-t needs and by contributing to exports.

98. Upon completion of the project, the investment in irrigation works and on-farm development allocable to Stage I would be TL 486 million (US$54 million) equivalent to US$1,019 per net irrigable hectare (Annex 9). These estimates take into consideration an allocated amount of all costs associated with the construction of irrigation works since the start of construction of the Seyhan Dam in 1953. For completed features, actual costs have been used, adjusted for depreciation of the Turkish lira. MIinor investments in diversion and canal works made prior to 1953 already contribute to the production of the Plain and have been disregarded. The estimates, however, include all costs of modifying the original system to meet present design requirements.

99. Annexes 3 and 4 give estimates of the present and future expected agricultural production. The increases in production are those that can reasoriPoly be expected with a deoendable water supply and effrective drainage. The average expected yields are conservative. Although in Turkey no referendum of farmers is taken before an irrigation scheme is started, indications are that farmers in the project area are keen to be provided with irrigation; wherever local conditicns allow, farmers have improvised small irrigation schemes, pump- ing from rivers or wells. It is not easy to predict the rate at which on-farm development will take place and some farmers may be slow to realize the need for on-farm drainage and initially reluctant to apply for loans from the Agri- cultural Bank. Taking into account the amount of on-farm development required and the extent of services to farmers necessary to attain full development, a 10-year development period is assumed.

100. The prices used in estimating the value of agricultural production are conservative. They are based on prices currently received by farmers ad- Justed where necessary to take forward price prospects on world markets into account. The annual gross value of production is expected to increase from about TL 67 million to TL 263 million, or by about TL 196 million at full development. Gross farm benefit/investment ratio would thus be about 40 per cent.

101. Reasonably good data on farm production costs were secured from Topraksu and from individual farmers in the project area; they include all cast costs and also the computed value of the farmerst own labor since there are alternative employment opportunities in the area. The estimated production costs have been applied to present and future cropping patterns (Annexes 3 and 4) g-iving TL 173 million as the expected net value of the increase in ainnal pro- _.ANIPLEX 1 page 2

SEYHAN IRRIGATION PROJECT

DETAILS CF EXISTING AND PROPOSED CANAL AND LATERAL SYSTEM

STAGE I

Primary an' Main Canals Secondary Laterals Tertiaries Initial uombinel Combined Unit Designation Ca acity Length Number Length Number Length (ms) (km (km) (km) Riglht Conveyance Canal 54.0 40.3

1TP AIII 11.0 15.3 6 19.9 91 167 AIV 4.5 15.1 - - 43 64 AV 2.7 7.9 31 65

S-ub-total 1TP 38.3 6 19.9 165 296

Left Conveyance Canal 90.0 19.0

IYP Main Canal 6.1 23.2 33 55.0 29 14 East 11ain 38.3 5.4 1 1.5 8 6 West Main 1).8 39.8 27 116.1 163 244 Sub -total lYP 68.4 61 172.6 200 264

3YP Upper Canal 2.7 7.3 6 19.9 14 18 M4ain Canal 32.3 5.1 - - 2 1 West Main 17.5 50.1 32 79.2 164 246 East Miain 12.2 43.6 16 54.3 117 170 Sub-total 3YP 106.1 54 153.4 297 435

4YP Main Canal 7.5 40.0 7 31.5 73 119 Lower Canal 2.1 13.0 2 12.6 15 26

53.0 9 44.1 88 145

STACC-E I TOTAL 265.8 130 390.0 750 1,140 AMINX 1 page 3

SEYHAN IRRIGATION OJECT

DETAILS CF EXISTING AND PROPOSED GRAVITY DRAINAGE SYSTEM 1/

STAGE I

Primary and Main Drains Secondary Drains Tertiaries Initial Combined Combined Unit Designation Capaci Len-th Number Length Number Length M- 7mi/s)I - E _ o,n) (km) M.ain Drainage Canal 123.0 40.0 5 18.5 32 64.3 lTP Dra n No. 3 20.2 10.1 1 8.2 54 82.8 Drain No. 4 32.0 13.5 2 8.8 54 105.3 Drain No. 5 4.5 12e6 1 2.7 14 28.5

Si'b-total 1TP 76.2 9 38.2 154 280.9 lYP Main Drainage Canal 22.5 37.7 6 23.7 14 28.6 3iF Iiain Drainage Canal 24.5 34.1 12 22.3 91 133.7 Nlorth Drain 10.8 7.7 2 8.0 11 15.2 West Drain 12.8 7.5 - - 20 29.8 Central Drain 10.0 7.0 1 1.5 7 11.4 East Drain 13.2 13.7 1 1.0 30 40.5

Sub-total 3YP 70.0 16 32.8 159 230.6

4TP Main Drain 22.1 18.0 6 30.8 78 132.5 South Drain 3.3 12.0 - 1h 26.6

30.0 6 30.8 92 159.1

STAGEI TOTAL 213.9 37 125.5 419 699.2

1/ Does not include on-farm drainage ANNEX 2 page 1

SEYHAN IRRIGATION PROJECT

S O I L S

The Seyhan, Ceyhan and Berdan Rivers have played a major role in the formation of the Adana Plain. The plain is essentially a compound delta formed by alluvial depositions from the rivers and outwash from the to the north.

As would be expected in any large alluvial plain such as the one under consideration, the soils are quite variable, depending on the source and nature of the parent material and the manner of deposition. However, as a general observation, it may be stated that the soils vary from slightly coarser-grained clay loams across the northern or higher elevations of the plain to progressively finer-grained, heavy dense clays as one proceeds southward toward the seacoast.

The soils of the plain may be divided into three broad categories, with the first two of which this report is mainly concerned. The categories are as follows: 1) the highlands located between the foothills of the Taurus Mountains and alline two to five kilometers south of and parallel to the Mersin-I4isis Highway. Project units 2TP and 5YP and parts of 1TP and 4YP are included in this category; 2) the central delta includes the area from the southern boundary of category 1) above to about the five-meter contour elevation; and 3) the lower delta comprising the lands between the five- meter contour and the Karatus limestone hills and the sand dunes along the seacoast.

The soils in category 1), the higher lands, consist of sedimentary deposits from the limestone rocks of the Taurus Mountains. They are highly calcareous, lime content ranging from 16 to 30 per cent. Some soils in the northern part of this area are shallow, but in the major part of the area they are deep. Textures range from clay loams to fine silts and clays underlain by clay with some sand and gravel. This area in general is well drained owing to the permeability of the underlying strata. No appreciable salt or alkali problems exist and very little artificial drainage will be required except in the southern parts of the area. M4ost of the area would be well adapted to vegetable and orchard production.

Soils within the central delta area, category 2), are quite variable, particularly in the northern part of the area, depending upon the source of the materiali deposited. Those parts of the area having alluvial fan deposits from t -emountains and areas comprising old natural river levees and channels are of coarser-grained texture with good permeability. No salt or alkali problems exist in these areas. 'ater tables are high in most of the area, so artificial drainage will be required to maintain production when large quantities of water are applied to the plain. In the balance of the central delta, the soils are much heavier, ranging from medium to heavy clays. Internal drainage varies from good to very poor, depending upon the ANNEX 2 page 2

depth to water table which varies from very near surface to about three meters in depth. Slight to severe salinization of these soils, depending on their proximity to the rivers, is now apparent. Although many of thace lands are now in production, these soils will become increasingly saline after irrigation commences, unless adequate drainage is provided. With adequate drainage, these soils should be well adapted to rice and other cereals as well as cotton in the better locations.

The lower delta area, category 3)9 is predominantly comprised of hydromorphic soils, with small areas of loess soils and sand dunes along the Mediterranean Coast. The hydromorphic soils generally are of very heavy texture and poorly drained. Followfing wetting, they swell and then shrink and crack when dried. Hydromorphic soils are found in about the lower one.. third of the Adana Plain; all have serious drainage problems and many are saline-alkaline. A very small amount of this area is presently under production because of the high water table and saline conditions. Rice is the main crop grown, with limited areas of cotton in the more desirable locations.

Stage I of the irrigation plan, as defined in this report, includes very limited areas of hydromorphic soils, the majority falling into categcry 2). The soils of Sta-.e II fall mostly into category 1). ANNEX 3

SEYHAN IRRIGATION PR.CJECT

PRESENT CROPPING PATTERN.STAGE I 53,000 Irrigable Hectares

Gross Value Net Value Area Yield Price of Cost of of Crop Hectares Kg/Ha EL/kg Production Production Producti.on ...... million TL.

Dryg Farming

Seed Cotton 38,500 600 1.95 45.0 20.6 24.4 Wheat 4,800 1,500 0.50 3.6 2.3 1.3 xtelons & Watermelons 400 15,000 0.15 0.9 ° 5 0.4 Sub-total 43,700 49.5 23.47 iLrrigated Land

Seed Cotton 7,700 800 1.95 12.0 7.7 4.3 Rice (paddy) 700 2,300 0.85 1.4 0.8 0.6 Dlry Beans 400 1,000 1.40 0.6 0.3 0. C:trus 300 15,000 0.50 2.2 1.7 0.5 Vegetables 200 15,000 0.60 1.8 0.7 1.1 Sub-total 9,300 18.0 11.2 {78

GRAND TOTAL 53,000 67.5 34.6 32.9

PRESENT CROPPING PATTERN STAGES I AND II 87,000 Irrigable Hectares

Dry Farming

Seed Cotton 67,100 600 1.95 78.5 35.9 42.6 Wheat 8,700 1,500 0.50 6.5 4.2 2.3 Ifelons & Watermelons 90 15,000 0.15 2.0 1.1 0.9 Sub-total 76700 87.0 41.2 45

Irrigated Land

Seed Cotton 8,500 800 1.95 13.3 8.5 4.8 Rice (paddy) 700 2,300 0.85 1.4 0.8 0.6 0)2y Beans 400 1,000 1.40 o.6 0.3 C.3 Citrus 400 15,000 0.50 3.0 2.3 0.7 Vegetables _300 15,000 o.60 2.7 1.0 1.7 Sub-total 10,300 21.0 12.9 8.1

GRAND TOTAL 87,000 108.0 54.1 53.9 - 20 - duction before payment of water and loan charges. After deducting annual costs of operation and maintenance, the net farm benefits at full development would be TL 107 million. Allowing for a 10-year development period and discounting the annual benefits over the lifetime of the project - 60 years - the net farm benefit/investment ratio would be about 16 per cent, which is favorable.

102. Calculations of economic justification for Stage I and Stage II to- gether show that the increase in annual gross value of production from 87,000 hectares net would be TL 385 million (Annexes 3 and 4); on a total investment of TL 836.9 million (Annex 9), gross farm benefit/investment ratio would be about 46 per cent, as against 40 per cent for Stage I alone, and net farm benefit/ investment ratio would be 20 per cent compared with 16 per cent for Stage I alone.

103. The investment in Stage I of TL 486.1 million, against which benefits have been compared in para. 101, includes TL 83,6 million for works undertaken between 1953 and March 1, 1963 (Annex 9). The investment now propoaed under the project allocable to Stage I would, therefore, be TL 402.5 million* Treating all past investments (prior to 1963) as sunk costs, the ratio of net farm benefit to the additional investment to complete Stage I of the Seyhan Project would be 22 per cent, as against 16 per cent estimated in para. 101.

104. These estimates are necessarily approximate, but they- indicate that the project would be justified by the expected returns from the increased crop production.

VIII. CONCLUSIONS AND RECOMMENDATIONS

105. The project is an essential and integral part of the overall plans for the development of the Adana Plain and would provide a dependable water supply and adequate drainage for an area now being dry farmed; irrigation would make possible an intensive cropping pattern, enabling greatly increased crop yields to be obtained. The project is, however, expensive due to the need fer an extensive drainage system. On-farm drainage is essential to the success of the project. To date, construction schedules and contracts have been spread over too long a period and over too large an area; there is need for concentratior cf effort and more rapid completion of works. The project would therefore be re-- stricted to Stage I of the development program for the Adana Plain. i06. The project is sound and, though a relatively high cost project, it is economically justified. It is suitable for an IDA credit of US$20 million which would be equivalent to about 40 per cent of the cost to complete the project (Stage I). ANNMC 1 Page 1

SEYHAN IRRIGATION PROJECT

Existing and Proposed Irrigation Works

The Seyhan Dam, which would provide storage of water for irriga- tion and power, was completed in 1956 as the key structure of a multipur- pose project involving power, flood control and irrigation. It is an earthfill dam with a total storage capacity of 1,500 million m3 . It has a 2,500 m3/sec gated spillway and a 3,500 m3 /sec emergency spillway. The estimated maximum probable peak discharge of the Seyhan River of 3,000 m3 during the last 1,600 years is based on the existence of a bridge in Adana which has existed that long without indication or record that it had been overtopped. A concrete diversion dam is located on the Seyhan River about two kilometers downstream from the Seyhan Dam. Since its completion in 1942, it has been operated with wooden stoplogs. Under a recently com- pleted contract the stoplogs were replaced with steel gates. The total discharge capacity for the diversion dam is 2,050 m3/secc While this capacity is substantially less than the 6,000 mI/sec capacity for the Seyhan Dam spillways, computations made by consultants and the Turkish Government show that the Seyhan Reservoir will safely contain the maximum flows of record without approaching the discharge capacity for the diver- sion dam.

The hO-km right and the 19-km left bank conveyance canals extend on either side of the Seyhan Diversion Dam. These canals were built in 1940 and 19h1 respectively, and are unlined earth canals. Their capacities are not sufficient for the entire plain and construction contracts now exist to enlarge and concrete-line both canals. The right bank canal will have an initial capacity of 54 m3/sec and the left bank, 90 m3/sec.

An irrigation system to irrigate 16,500 hectares in the lTP area was constructed in 1946. Its design was not adequate to provide proper irrigation and the system is now being rebuilt.

The Seyhan and Ceyhan interception canals were constructed to divert storm runoff from the small washes from the foothills into the Seyhan and Ceyhan Rivers.

The following tables give details of the existing and proposed canal and lateral systems and of the gravity drainage system. kNMTEX 14. page1 HEYAKNIRRIGATION PROJECT

FUTURE CROPPING PATTERN 5TAGE I 53,000 Irrigable Hectares

Gross Value Net Value Area Yield Price of Cost of of C r o p Hectares Kg/Ha TL/Kg Production Production Production ...... millionTL.

Trrigated Crops ,Seed Cotton 20,000 1,750 1.95 68.3 32.2 36.1 {,~itrus 4,000 26,000 0.55 57.2 15.9 41.3 Rice 3,000 4,000 0.85 10.2 5.5 4.7 lIhaat & Other Cereals 7,800 2,000 0.50 7.4 4.5 2.9 Vegetables 3,200 19,300 0.60 37.0 16.0 21.0 Oilseeds 4,000 1,000 1.43 5.7 2.8 2.9 Alfalfa 11,000 12,000 0.15 19.8 15.4 4.* Sub-total 53,000 205.6 92.3 113.3

Second Crops 'inter Vegetables 1,000 19,300 0.60 11.6 5.0 6.6 !4elons & Watermelons 1,000 25,000 0.15 3.8 2.0 1.8 Cazbage 1,000 35,000 0.20 7.0 2.3 4.7 Dry Beans 10,000 1,800 1.40 25.2 8.0 17.2 Dry Peas 11,000 1,500 0.60 9.9 7.2 2.7 Sub-total 24,000 57.5 24.5 33.0

GRAND TOTAL 77,000 263.1 116.8 146.3

FUTURE CROPPING PATTERNSTAGES I AND II 87,000 Irrigable Hectares

Trri,ated Crops S ed Cot-ton 30,000 1,750 1.95 102.4 48.3 54.1 'itrus 9,000 26,000 0.55 128.7 35.8 92.9 Othtmr Fruits 2,000 11,600 0.55 12.8 7.1 5.7 Rice 4,000 4,000 0.85 13.6 7.3 6.3 Wheat & Other Cereals 10,000 2,000 0.50 9.5 5.7 3.8 VJeszetables 71,000 19,300 0.60 81.0 34.9 46.1 CiIseeds 7,000 1,000 1.43 10.0 5.0 5.0 Alfalfa 18,000 12,000 0.15 32.4 25.2 7.2 Sub-total 87,000 3904 9.3 221.1

.econd Crops oTinter Vegetables 2,000 19s,300 o.60 23.1 10.0 13.1 Z.elens & Watermelons 3,000 25,000 0.15 11.3 6.0 5.3 Cabbage 2,000 359000 0.20 14.0 4.6 9.4 Dry Beans 16,000 1,800 1.40 40.3 12.8 27.5 Dry peas 15,000 1,500 0.60 13.5 9.8 3. Sub -'otal 38,000 102.2 43.2 59.0

GRAiqD 'ICTAL 125,000 492?6 21:'.; IL ANNEX 4 Page 2

CONSIDERATIONS IN ESTABLISHING THE FUTURE CROPPING PATTERN

In attempting to forecast the future cropping pattern for the project area climatological factors were considered, such as minimum and maximum temperatures and the duration of such extremes; the amount of rainfall and its principal period of occurrence, humidity and its bearing on evaporation, disease control and crop maturity.

Present cropping practices, requirements for new products and marketing possibilities were given consideration in order to utilize to the maximum extent possible present crops, "know-how" and marketing arrangements into the future cropping system. The introduction of a minimum number of new crops into the cropping pattern was the objective.

The adaptability of crops to the soil and drainage character- istics of the project were also fully considered; the objective being to include crops best suited to the soil conditions while keeping in mind appropriate crop rotation requirements to maintain soil fertility and at the same time to meet the requirements of all the above criteria.

For example, cotton was selected because climatic factors are suitable to short-staple varieties of cotton. Farmers are used to grow- ing cotton and know the general production requirements. Textile mills are established and market conditions are favorable for an increase in production of this crop. Soil conditions are favorable, as cotton does well in heavy clay soils and will tolerate reasonably high concentrations of salinity. Alfalfa is expected to be grown because of the need for a leguminous crop in rotations to maintain soil fertility. The need also exists for hay and forage production for livestock feed and, further, requirements exist for greater meat production. Alfalfa best meets these requirements as it is well suited to climatic and soil conditions en- countered in the project.

Citrus was included in the cropping pattern, mostly for the same reasons as given for cotton. The climate is suitable for citrus production. This crop, for which there are existing markets, has had a long history of production in the area. Potential marketing possibilities indicate the need for greater output. The project has limited areas of soil suitable for citrus. It would make an excellent cash crop. Double cropping which would include the production of dry beans, peas and winter vegetables would become a possibility with improved drainage and moisture control. Turkey's relationship to the European Economic Community (EEC) has been one of the marketing questions under consideration. Under the proposed cropping pattern the effect on the project's economy would be relatively small. Citrus would be the crop most affected. ANE 4 Page 3

Under the external tariff of EEC, imports of cotton would be duty free. Cereals, livestock products and most of the oilseeds and vegetables from the project are needed for domestic consumption in Turkey. Import duties from non-members on citrus fruits (of which substantial quantities will be required by EEC in the foreseeable future) are due to be increased according to a tariff which varies according to type of citrus and season of marketing. In estimating prices which the farmer would re- ceive for citrus grown on the project area, conservative figures have been applied, under the assumption that Turkey would not be a member or an associate of EEC. SEYHAN IRRIGATION FROJECT

UNITS AND EXISTING CONSTRUCTION CONTRACTS

UNITS

For purposes of construction, operation, maintenance, organization and management, the Seyhan Irrigation Project has been divided into units (see Map). Their designation, acreage and distribution are as follows:

STAGE I STAGE II

lTP (part) 16,500 hectares lTP (balance) 15,700 hectares lYP 4,600 " 2TP 12,400 3yP 20,600 "' 5YP 5,900 4YP 11300

Total 53,000 " Total 34,000 "

STAkGE III Total 83,000 hectares

GRAND TOTAL 170,000 hectares

EXISTING CONSTRUCTION CONTRACTS Date Unit Contract Amount Award Date for Completion (TL) 1TP rehab. 16,746,000 1' Sep 3, 1957 Nov 9, 1962 1YP & part of 4YP 16,925,140 Apr 25, 1960 Nov 15, 1962 4YP (part) 13,830,500 Jul 29, 1961 Jul 1, 1964 3YP main drain 7,748,000 Jan 30, 1962 Nov 1, 1963 Left bank canal enl. 9,245,600 Apr 17, 1962 Jun 30, 1964 Right bank canal enl. 13,723,200 May 1962 Aug 15, 1964

1/ Subsequently adjusted upward TL 13.0 million for inflation.

NOTE: Two further contracts, for a total of about TL 30 million, which were about to be let at the time of the mission's visit, included facilities fcr 3YP on 7,100 ha. outside the project; these contracts will need to be renegotiated to eliminate this area and substitute an equivalent area within the project. ANTNEX 6 page 1

SEYHAN IRRIGATION PROJECT

Water Supply

The Seyhan River has a drainage area above the Seyhan Dam of 19,25b. sq.km. or 7,434 sq.mi. Rainfall records in the drainage area are sparse and the stream-gauging records until recent years are not entirely satisfactory. Good records exist for the Seyhan River discharge at the reservoir site since 1953. From 1927 to 1953 runoff records were published, but measurements at stations established in 1927 were taken only by float and cross sections of the riverbed were not made except when the stations were established. By correlation with more reliable upstream stations on the tributaries, the Turkish Government has computed the average annual run- off for the period 1939 to 1960 to be 5,374 million m3 (4,355 million acre feet) (see Table showing Calculated and Historical Runoff). This is approx- imately one billion cubic meters greater than that reflected in the 1927 - 1953 runoff records, but the correlation is reasonable. Nevertheless, future measurements should continue to be correlated to check the reliability of the previous work.

Except for possible incidental purposes, there are no uses of .iater p]anned upstream. The annual runoff greatly exceeds the planned irrigation requirement for 87,000 hectares and is over three times the total storage capacity in the reservoir. Even during the months and years of lowes-'u runoff, a substantial amount of water enters the reservoir. The lowest month's record is for September 1955, with a discharge of 159 million m3 . The minimum annual runoff computed was for the year 1957 with a total runoff of 3,266 million m3 with 2,610 million m3 for the period December to July. Reservoir capacities are as follows:

Million m3 Elevation (m)

a) Dead storage 300 Below 49 b) Irrigation and Power 500 49 - 61 c) Flood Control 400 61 - 67 d) Flood: surcharge 300 67 - 70.9 Total 1,500 The reservoir operating plan, which takes account of both power and irrigation requirements, provides that the reservoir capacity between eleva- tions 49 and 67 m, in the amount of 900 million m3, would be used for irriga- tion and power purposes. (It is considered safe to fill flood control storage between elevations 61 and 67 and use this stored water until late in the summer, since floods are unlikely to occur in spring and early summer.) Operation studies prepared by the Turkish Government show that if the reservoir capacity is used in this manner, the reservoir surface would not fall below elevation 52.7 m, based on historical runoff and full development of a 170,0GC ha. project, At this elevation, the active storage volume in the reservoir is 4CO million m3 which leaves sufficient reserve to meet unusual conditions. NNEX 6 page 2

Based on these operating studies, present design contemplates raising the elevation of the proposed outlet for the 2TP canal system. Further correlations would be made before this design is finalized. A change in storage requirements would not affect the operation of Stage I or II of the project. However, if the elevation proved too high, some future portions of Stage III of the project might be made infeasible.

The quality of the irrigation water is excellent. Water quality tests of samples from the reservoir and canals show that the total soluble salts vary from 1hh to 320 ppm with a very favorable calcium/sodium ratio. The calcium in the water will improve its leaching characteristics when used on the saline soils. k1PfAx 6 page 3

SEYHAN IRRIGATION PROJECT

CALCUIATED AND HISTORICAL RUNOFF

Water Year Cubic Meters Acre Feet millions thousands

1939 5,338 /2 4,326 /2 1940 5,748 4,658 1941 5,922 4',799 1942 5,750 4,660 1943 6,285 5,093 1944 6,535 5,296 1945 4,273 3,463 1946 5,,020 4.,068 1947 4,833 3,917 1948 7,666 6, 212 19b9 4,454 3,609 19U0 44,159 3,370 1951 3,632 2,9437 1952 6,9168 49,998 1553 8,153 6,607 1954 4,936 4,000 19155 4,.360 3.,533 1956 4,593 3,722 1957 3,266 2,647 1958 7,0o95 5.,750 1959 4',912 3.,981 1960 4,692 3,802

Average 5,374 4,355

1/ October 1 to September 30

2/ Does not include October and November ANNEX 7 Page 1

SEYHIAN IRRIGATION PROJECT

Water Requirements

The average annual water requirement for the irrigation of 87,000 hectares of crops in the proposed cropping pattern is based on irrigation during the dry season, which extends from April or May through September or October. Sufficient rainfall occurs during the winter to make irrigation during that period unnecessary. Effective precipitation during the growing season has been taken into account (see table next page).

The total annual water reouirement of 990 million m3 (803,330 ac.ft.) was computed using a 70 per cent farm efficiency in utilizing water delivered and a system loss of 25 per cent of the water diverted. The latter includes both seepage and operating losses. The consumptive use requirements (70 per cent of the farm delivery) of the crops was computed by the Penman method which requires an analysis based on meteorological data. The analysis was prepared by a consultant to the Turkish Government and is satisfactory.

The maximum. monthly demand was determined by computations made for July 1947, vuhich has the highest monthly water requiremerLt for the period studied. Iithout allowing for possible idle land, or the use of groulmdwater to supplement the supply, the peak demand was computed at 270.5 million m3 (219,000 ac.ft.), or 101 m3/sec (3,500 cu.ft./sec). The diversion capacity of constructed works and those works planned for the future is 165 m3/sec. ANNEX 7 page 2

ANNUAL IRRIGATION REQUIREMENT

Irrigation Total Irrigation Total Farm Consumptive Use Consumptive Use Fieldi/ Delivery C-ropus Hectares Less Rainfall Requirement Loss Requirement (meters) ...... i....1n million m .

Cotton 30,000 0.580 174.0 74.5 248.5 Citrus 9,000 0.700 63.0 27.0 90.0 Other Fruits 2,000 0.670 13.4 5.7 19.1 A.falfa 18,000 0.540 97.2 41.6 138.8 R-4-ce 4,000 1.080 43.2 18.5 61.7 Short Crops 24,000 0.540 129.6 55.5 185.1

520.4 222.8 743.2

Canal and Operating Losses (25% of diversion) 247.7

Diversion Requiirement 990.9

Diversion Requirement 803,330 ac.ft.

2/ MAXnVIUM MONTHLY DIVERSION REQUIREMENT

Total Irrigation Total Farm Irrigation Consumptive Use Field Delivery Crops Hectares Consumptive Use Requirement Loss Requirement (meters) ...... in million m .

Cotton 30,000 0.150 45.0 19.2 64.2 Citrus 9,000 0.180 16.2 6.9 23.1 Other Fruits 2,000 0.180 3.6 1.5 5.1 Alfalfa 18,000 0.180 32.4 13.8 46.2 Rice 4,000 0.225 9.0 3.9 12.9 Short Crops 24,000 0.150 36.0 15.4 51.4 142.2 60.7 202.9 Canal and Operating Losses (25% of diversion) 67.6

Diversion Requirement 270q5 or 101 ma/sec

Diversion Requirement 219,200 ac.ft. or 3,500 cu.ft./sec i\OT7: This tabulation does not consider proration 1/ 70p efficiency (3C% of total applied) 2/ July 1947 weather conditions SEYHAN IRRIGATION PROJECT CONSTRUCTION SCHEDULE- PUBLIC WORKS

STAGE 7 STAGE Dl

PROJECT UNIT FY 1963 FY1964 FY1965 FY 1966 FY 1967

I T P 32,200 9,2 0 0 7,3 00 . _ 5,500 10,200

6,400 6,000 2 TP Ia2,4 00 _ _- -v - -

I YP 4,600 4,1600

3 Y P 20, 600 5,5 00 7,000 8,100

4 YP I 1, 300 2,700 8,600

5Y P 5, 90 0 ______,1,900 4,000

TOTAL IRRIGABLE AREA(Ha.) 87,000 22,000 22,900 8,100 1 3,800 20,200

RIGHT BANK CONVEYANCE CANAL

LEFT BANK CONVEYANCE CANAL

OPERATION a MAINTENANCE DURING CONSTRUCTION

OPERATION S MAINTENANCE FACILITIES &EQUIPMENT

0 a M a D a c CONSULTANTS t STAGE I ' STAGE IL

May1963 6,000 Hectares in Service Major Construction including Laterals a Drains IBRD 1180 (1) Financial Year-Marcri I to February 28 - - Tertiary Laterals a Drains ANIEX 9 Page 1

SEIHAN IRRIGATIONI PROJECT

ESTIMATE OF COSTS (TL Millions)

A. Estimated Costs after February 28, 1963

Item Project Total (Stage I) Stage II (I and II)

Common Works

1 Modifications of right and left

bank conveyance canals 20.7 - 20.7 2 Contingencies 4.o - 4.o 3 Overhead 4.4 h4.4

4 Sub-total 29.1 29.1

Unit Works

5. Primary and secondary laterals and drains 16.4 84 D0 loo.4 6. Tertiary laterals and drains 52.0 310 4 83.4 7. Operating Roads 18.0 100 28.0 8. Contingencies 17.3 25e0 42.3 9. Overhead 13.0 19o0 32.0 10 Rights of Way 38.0 27.0 65.0

11 Sub-total 154.7 196.4 351.1

Other Expenditures

12 Operation and maintenance during construction 10.0 6.0 16.0 13 Consultants 1/ 5.4 1.0 6.4 1-4 Topraksu and extension service equipment and spare parts 19.2 12.8 32.0 15 Equipment, tools and spare part, 31.5 18.7 50.2 16 Interest during construction '_f 4.3 - 4.3

17 Sub-total 70.4 38.5 108.9

18 On-farm development 197.0 87.0 28[4.O

19 Total (items 4,11,17,18) 451.2 321.9 773.1

US$ Equivalent Million 50.1 35.8 85.9

2 Includes consultants for design of works for Stage TI arLd for investi- gations and feasibility studies for Stage IIL, 6 Ciharges on IDA credit at 3/4L% AN'INEX 9 'age 2

B. Estimated Cost 1953 through February 28, 196 3 _/

Item

20 Allocation to irrigation of Seyhan Dam and Reservoir (completed 1956) 2/ 75.8 21 Modification of Diversion Dam (completed 1962) 2,0

Unit Works

22 Laterals and drainage system completed or part completed (all allocable to Stage I) 60.O

C. Calculation of Investment Cost

For calculating the investment against which benefits are to be compared, the following allocations have been made:

Stage I Stage II

Total expenditures a er February 28, 1963 (Item 19) 4460939/ 321.9 Allocation of item L47 - 20.1 + 5.8 Allocation of item 5 and 6 - 21,0 + 6.0 Allocation of item 13 - 3.3 + le5 Allocation of item 21 + o.6 + 0.h Reallocation of item 20h/ + 23.0 + 15.2 Cost of laterals and drainage system (item 22) since 1953 + 6o.o

Total Investment 486.1 350.8 US$ Equivalent Millions 54.0 39.0 836.9 US$ Equivalent Millions 93.0

1/ Expenditures on diversion and canal wiorks prior to 1953 when construc- tion of the dam started which have contributed to the present produc- tion of the Plain, have been disregarded. The cost of renovating and improving these works has been included in project cost estimates. 2/ The cost of the Seyhan Dam and Reservoir was US$25,264,998. Cabinet Decree, dated February 18, 1952 allocated cost equally to flood con- trol, power and irrigation, US$8,h21,666 each, equivalent TL 75.8 million. 3/ Interest during construction is not included because investments and benefits are discounted back to the beginning of the construction period. 4/ Allocated according to acreage served. ANNEX 9 page 3

D. Notes Supporting the Estimates of Costs of Stage I and Sta-e II

Estimates for laterals and drains under contract, or where invitations for bids had been issued, were based on the following:

1) Contract cost, or engineer's estimate if contract cost was not known.

2) Adjustments in quantities where significant changes were known. In the case of 3YP, it was assumed the contracts would be renegotiated to eliminate that portion of the unit south of the project limits. (see Annex 5, footnote.)

3) A contingency factor of 10 per cent, except where the contract was nearly completed and a lesser factor was reasonable.

Estimates for facilities not under contract were on the following basis:

1) For primary, secondary and tertiary laterals, quantity estimates have been prepared from preliminary designs by the Turkish authorities and by consultants. Unit prices comparable to those used in current bidding procedures have been applied. Recent bids have been from 24 to 40 per cent below these prices, but at least part of the reason is intense competition among Turkish contractors in recent times and such low prices are not expected to remain.

2) The cost of tertiary laterals and drains is based on an average cost of TL 1,000 per hectare, which estimate was prepared by the Turkish Government in detail. This estimate has been checked by computing the costs of an average tertiary lateral and drain section, and is realistic.

3) The cost of road surfacing for about 1,800 km of operating roads is based on an average cost of TL 1,000 per 3,000 hectares, which estimate was prepared by the Turkish Govern- ment. This estimate has been checked by computing the average cost of an average-sized operating road with an 11-foot width and a six-inch thickness of suitable pit-run gravel with an average haul of 15 km, and is satisfactory.

4) A 20 per cent contingency provision has been made for all items not under contract.

Overhead expenses in all cases have been taken as 15 per cent of the total construction cost before contingencies. The 15 per cent factor has been used by the Turkish Government and current overhead expenses are occurring at this rate. ANINEX 9 page 4

Costs of rights of way are based on appraisals made by the Turkish Government.

On-farm development costs include leveling, ditching and installing the necessary farm drainage system. Leveling costs are estimated to vary from TL 200 to 500 per hectare, depending on the amount required. On-farm distribution systems are estimated to cost TL 140 per hectare, which will provide unlined ditches, turnouts and surface drainage outlets. Because of the close drain spacing required on much of the area, drainage tile will be used for most drainage systems. Tiling is estimated to cost TL 3,500 per hectare on an average with some units requiring less tiling than others. The estimates for on-farm development were worked out with the assistance of personnel from Topraksu and DSI and are realistic. Z18z501-CUgl £q~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~261AVW4

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