World Bank Document

Document of TheWorld Bank FILECOPY

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 217 9a-PAK

Public Disclosure Authorized STAEF APPRAISAL REPORT

PAKISTAN

SALINITY CONTROL AND RECLAMATION PROJECT (SCARP) MARDAN Public Disclosure Authorized

January ll, 1979

Public Disclosure Authorized South Asia Projects Department Agriculture Division A

This document has a restricted distribution and may be used by recipients only in the performanc2 of their oflicial duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS

.US$1 = Rs 9.9 Rs 1 = US$0.10

WEIGHTS AND MEASURES

English/US Units Metric Units

1 foot (ft) = 30.5 centimeters (cm) 1 yard (yd) = 0.915 meters (m) 1 mile (mi) = 1.609 kilometers (km) 1 canal mile = 1.524 kilometers 1 acre (ac) = 0.405 hectare (ha) 1 square mile (sq mi) = 259 ha 3 1 cubic ft (cu ft) = 0.028 cjbic meters (m ) 1 cubic yd (cu yd) = 0.765 m

1 acre-foot (ac-ft) = 1,233 mn3 1 cu ft/sec (cusec) = 0.028 m /sec 1 pound (lb) = 0.454 kilograms (kg) 1 long ton (lg ton) = 1,016 kg (1.016 metric tons)

Pakistani Units English Units Metric Units

1 maund (md) = 82.3 lb (.0367 lg ton) 37.3 kg (.0373 m tons)

26.8 mds 2,205 lbs - 1.0 metric ton 27.2 mds 1.0 lg ton (2,240 lbs) 1,016 kg FOR OFFICIAL USE ONLY

PRINCIPAL ABBREVIATIONS AND ACRONYMSUSED

AA - Agricultural Assistant ADA - Agricultural Development Authority ADBP - Agricultural Development Bank of Pakistan AHO - Assistant Horticultural Officer APPO - Assistant Plant Protection Officer BCU - Basic Credit Units CCA - Culturable Command Area DA - Director of Agriculture DDA - Deputy Director of Agriculture DIK - Dera Ismail Khan EADA - Extra Assistant Director of Agriculture FA - Field Assistant GCA - Gross Command Area GONWFP - Government of the North West Frontier Province GOP - Government of Pakistan Kharif - summer season (May-October) LSC - Lower Swat Canal M ac-ft - Million acre-feet NBP - National Bank of Pakistan NWFP - Northwest Frontier Province O&M - Operation and Maintenance Rabi - winter season (November-April) USC - Upper Swat Canal WAPDA - Water and Power Development Authority

This document has a restricteddistribution and may be used by recipients only in the performance of theirofficial duties. Its contents may not otherwise be disclosed without World Bank authorization.

PAKISTAN

SALINITY CONTROL AND RECLAMATION PROJECT (SCARP) MARDAN

Table of Contents

Page No.

I. PROJECT BACKGROUND .... I1...... Agriculture in Pakistan ...... I Irrigation in Pakistan ...... 2 Agriculture and Irrigation in the NWFP ...... 3 Development in the SCARP Mardan Area ...... 3 Project Formulation ...... 4

II. THE PROJECT AREA ...... 5 General ...... 5 Climate ...... I ...... 5 Topography and Drainage ...... 5 Soils ...... 6 Farm Size and Land Tenure ...... 6 Present Agricultural Situation ...... 7 Agricultural Supporting Services ...... 8 Agricultural Inputs ...... 9 Agricultural Credit ...... 10 Marketing and Processing ...... 11 Transportation ...... 12

III. THE PROJECT ...... 13 General ...... 13 Main Project Features ...... 13 Description of Major Works to be Undertaken .... 14 On-Farm Improvements ...... 19 Status of Field Investigations, Surveys and Designs ...... 21 Construction Methods and Materials ...... 22 Agricultural Development ...... 24 Monitoring Program ...... 25 Water Supply, Demand and Quality ...... 27 Technical Assistance ...... 28 Cost Estimates ...... 29 Implementation Schedule ...... 30 Financing ...... 31 Procurement ...... 31 Disbursements ...... 32 Accounts and Audits ...... 33 Environmental Effects of the Project ...... 33

This report is based on the findings of a Bank mission comprised of Messrs. S. Baker, C. P. Cheng, A. Seager (part-time) and Miss G. Lituma (Bank) and Messrs. J. Christopher, W.E, Edwards and M. Fireman (consultants) who visited Pakistan in March 1978. -2-

Table of Contents (Cont'd)

Page No.

IV. ORGANIZATION AND MANAGEMENT ...... 34 Civii Works ...... 34 On-Farm Improvement ...... 35 Agricultural Supporting Services ...... 36 Monitoring and Evaluation ...... 37 Agricultural Extension ...... 38 Operation and Maintenance ...... 38

V. PRODUCTION, PRICES, FARM INCOMES AND COST RECOVERY .. 40 Production ...... 40 Financial Prices ...... 41 Farm Incomes ...... 42 Cost Recovery ...... 43 Project Rent ...... 45

VI. BENEFITS, JUSTIFICATION AND RISKS ...... 45 General ...... 45 Employment and Income Effects ...... 46 Basic Assumptions for Economic Analysis ...... 46 Economic Rate of Return ...... 48 Sensitivity Analysis and Project Risks ...... 48

V. AGREEMENTSREACHED AND RECOMMENDATIONS...... 49 - 3 -

LIST OF ANNEXES

ANNEX 1 TABLES AND CHARTS

Tables

1 Climatological Factors Relating to Estimating Crop Water Requirements 2 Land Tenure Structure 3 Land Tenure in Mardan and Peshawar Districts 4 Description of Project Sub-areas 5 Present and Future Cropping Patterns by Sub-Areas 6 Present and Future Yields (md/ac) by Sub-Areas 7 List of Equipment and Vehicles 8 Laboratory Equipment for Land Reclamation Program 9 LSC Command Area - (Sub-Areas I, II & III) - 134,500 ac - Water Requirements at Canal Head 10 Summary - Water Supply and Demand at Munda Headworks 11 Detailed Cost Estimates 12 Schedule of Expenditures 13 ;roposed Allocation of the Aid Package 14 Estimated Schedule of Disbursements 15 Crop Area, Yield, Production and Economic Value of Production - Total Project 16 Prices Used for Financial and Economic Analysis 17 Present and Future Cropping Patterns (%) Considered in the Farm Budget Models 18 Present and Future Yield (md/ac) Considered in the Farm Budget Models 19 Financial Analysis - Lower Swat 20 Financial Analysis - Upper Swat 21 Economic Prices 22 Economic Cost of Labor 23 Conversion Factor Used for Estimating the Economic Cost 24 Economic Cost Stream 25 Value of Production - Total Project

Charts

1 Future Water Diversion Requirements, Existing Diversion and Swat River Discharge at the Munda Headworks 2 Cropping Pattern of Lower Swat Canal Command Area - Future at Full Development 3 Cropping Pattern of Upper Swat Canal Command Area - Future at Full Development 4 Summary Implementation Schedule 5 Procurement Schedule for Equipment and Vehicles 6 Proposed Organization Chart - Design & Construction 7 Organization Chart: Operation and Maintenance of the Irrigation and Drainage Systems 8 Cropping Calendar - 4-

ANNEX 2 AGRICULTURAL DEVELOPMENT

ANNEX 3 TERMS OF REFERENCE FOR CONSULTING SERVICES

Project Design and Construction Agricultural Extension and Training Specialist Sugar Beet Agronomist

ANNEX 4 LIST OF SELECTED DOCUMENTS AVAILABLE IN PROJECT FILE

Maps

IBRD 13706 R Salinity Control and Reclamation Project. Drainage and Reclamation

IBRD 13707 R Salinity Control and Reclamation Project. Irrigation PAKISTAN

SALINITY CONTROL AND RECLAMATION PROJECT (SCARP) MARDAN

I. PROJECT BACKGROUND

Agriculture in Pakistan

1.01 The Islamic Republic of Pakistan covers an area of some 197 M ac (80 M ha). Only 47 M ac are cultivable, of which 33.6 M ac are irrigated, mainly from the Indus River system, the biggest single irrigation system in the world. The current population of about 76 M is growing at an annual rate of about 3%. Since 1947, per capita output has risen at about 1.5% per year, reaching about US$190 (at 1975-77 prices) but still leaving Pakistan (as of 1978) one of the poorest countries in the world. Thus, the Government of Pakistan's (GOP's) development plans in recent years have been geared to increasing production in order to create additional employment opportunities and to alleviate widespread poverty.

1.02 Agriculture is the mainstay of Pakistan's economy. It accounts for about 35% of GNP, employs about 60% of the labor force and, directly and indirectly, provides nearly two-thirds of Pakistan's export earnings (principally cotton and rice). In the last two decades, GOP has endeavored to stimulate agricultural production by accelerating the development of irrigation; reclaiming saline and waterlogged areas; introducing high yielding varieties of wheat and rice; increasing the use of fertilizers through both importing and expanding local production; extending the use of pesticides; and, currently, under a Bank Group financed project, developing a seed industry. Agricultural, short-term credit to farmers has been expanded mainly through commercial banks.

1.03 Despite these efforts and the doubling of wheat production in the last decade, cereal production has not kept pace with population growth, thus necessitating an average annual wheat import of over one million metric tons during 1972-78. Moreover, the 1977/78 wheat crop was a major disappointment, with production well below, and resulting import requirements for 1978/79 considerably above, the Government's target. Overall agricultural annual growth during 1974-77 was only about 1.9%, contrasting with the 3% annual growth reached during 1971-74 and the nearly 6% in the 1960s. Furthar expansion of agricultural production will require more sustained effort by GOP to overcome the following major constraints: lack of water, waterlogging and saline-alkaline soils; adverse pricing policies; inadequate supply of farm inputs such as seeds, fertilizers and pesticides; shortage of power for cultivation; lack of coordination among departments responsible for water development and usage; the current share-out burden faced by tenants; and the largely ineffective agricultural extension program.

1.04 Programs to increase the supply of fertilizer, certified seed, pesticides and equipment are being given priority. An increased role for the private sector in input supply is required, although selective public sector involvement in this, as in marketing and processing, may be warranted. To -2- exploit the longer-term potential for agricultural growth, greater commitment by the Government must be given to programs which seek to change the way that crops are grown at the farm level. This involves changing the physical environment through watercourse and associated improvements and raising the technical competence with which physical resources and inputs are used, principally through redirection and revitalization of the extension services.

1.05 In an effort to assist the agricultural sector, the Government recently revised the agricultural pricing policy. The support price for cotton was increased by nearly 50% early in FY77 and a further 10% by April 1977; the support price for paddy was raised by nearly 35% in FY77 and is being maintained for FY78; and, for the first time, support prices were also established for maize, onions, potatoes and certain oil seeds, however the price of wheat has been maintained since FY75. As a result of these actions, and falling world prices for wheat, sugar and rice, procurement prices for major crops as of July 1978 are much closer to world prices than before, and differ- entials reflect more fully relative values to the national economy.

Irrigation in Pakistan

1.06 In Pakistan, there are some 42 canal commands, with a total length of about 36,000 mi. These systems embrace a gross command area (GCA) of 38 M ac, with a culturable command area (CCA) of 33.6 M ac. The great bulk of these lands, 33 M ac, are in the Indus plains and the remaining 0.6 M ac are in the Vale of Peshawar or Kabul plain. The canal commands vary from 40,000 ac to 3 M ac in size and receive supplies diverted by 20 barrages and weirs located along the three western rivers (Indus, Jhelum and Chenab), two Eastern rivers that reach Pakistan (Sutlej and Ravi) and along the Kabul and Swat rivers in the Northwest Frontier Province (NWFP). Many of the canals are large by world standards; 15 carry discharges greater than 10,000 cusecs each. About two-thirds of the CCA receives perennial supplies and the remaining one-third receives supplies only in summer, when river flows are generally plentiful. Annual canal withdrawals have averaged 64 M ac-ft in summer and 31 M ac-ft in winter, and it is estimated that about 41 M ac-ft in summer and 20 M ac-ft in winter have been available at the farm gate, the rest having been lost in transit through seepage, percolation, evaporation and drainage to the major rivers and canals. Additional irrigation supplies from both private and publicly-owned tubewells and from Persian wheels are estimated to total about 32 M ac-ft, mostly in the Punjab province. The Mangla and Tarbela reservoirs, with respective live storage capacities of 5.4 M ac-ft and 9.3 M ac-ft, supple- ment irrigation supplies during winter when river flows are low, as well as provide large quantities of electricity for industry and agriculture.

1.07 When irrigation was introduced in Pakistan in the last century, the need for drainage was not apparent. However, many years of irrigation and high seepage losses from the vast network of canals and inadequate drainage resulted in rapidly rising water table levels in most of the irrigated areas and many have become waterlogged. In the same areas, salinity and alkalinity problems have developed as a consequence of the poor drainage. GOP's Salinity Control and Reclamation Project (SCARP) program was established to resolve these problems and reclaim areas no longer productive. - 3-

Agriculture and Irrigation in the NWFP

1.08 The NWFP is the smallest of the four provinces of Pakistan. It extends over some 39,000 sq mi, much of which is mountainous and uninhabit- able. On the west, the NWFP is bounded by Afghanistan, in the north by Gilgit, to the northeast by the semi autonomous province of Azad Kashmir and the south- east and east by the provinces of Punjab and Baluchistan. Land elevations vary from 500 ft in the southern plains to 26,000 ft in the mountainous north. Rainfall, shared about equally between summer and winter, varies from ten inches in the glains to 30 inches in the foothill areas. Day temperatures range from 110 F in summer to around 650F in winter, making year round cultivation possible. The well-forested hill areas provide summer grazing for vast herds of sheep, goats and cattle from the lowlands, which during winter return to the already over-grazed low-lying rangelands which cover some 14 to 15 M ac. The cultivated area, about 3.7 M ac, is mostly rainfed and is confined to the many valleys and lowland plains along the Indus, Kabul and Kurram rivers. The population in 1977 was 12.6 M and the cultivated areas are very densely populated. In the cooler, less arid northern region, the main crops are sugarcane, maize (summer), wheat (winter), sugar beets, tobacco, vegetables and orchards. In the hot, arid southern region, the main summer crops are millets, maize fodder and some cotton and the main winter crops are wheat and fodder.

1.09 The irrigated areas in NWFP are located in two very different ecological regions: the northern Kabul plain, locally called the Vale of Peshawar, with a CCA of 698,000 ac lying about 1,200 ft above sea level, which is irrigated by diversions from the Kabul and Swat rivers; and the Dera Ismail Khan (DIK) area, or Indus Plain, with a CCA of 105,000 ac at an elevation of about 600 ft above sea level, which receives water from the Indus. There are plans for increasing irrigation in the DIK area to 320,000 ac by utilizing the greater amount of the 5,000 cusecs diverted from the Indus River (including Tarbela storage waters), and for providing an additional 750 cusecs from the Tarbela storage to irrigate a further 43,000 ac in the eastern area of the Vale of Peshawar. Most of the Kabul plain has slopes of less than 0.3% and, after many years of cultivation, its fields are virtually leveled. Due to inadequate drainage, waterlogging problems have developed throughout the area. The existence of thick underlying clay layers makes vertical drainage by means of tubewells infeasible. Thus, in high water table areas, sub-surface tile drains are the only practical means to provide drainage relief.

Development in the SCARP Mardan Area

1.10 SCARP Mardan is located in the northwestern part of the Vale of Peshawar, on the left bank of the Kabul River plain, which skirts the foothills of the Himalayas. Irrigation pre-dates the existing Lower Swat Canal (LSC) and Upper Swat Canal (USC) irrigation systems which now serve the area. Nearly 100 cuts (diversions) were made from the Swat River before these canals were constructed, principally serving some 43,500 ac of land in the Sholgara and Doaba areas. The LSC scheme was first conceived in 1870 and became operational in 1885. It was improved during 1915-18 when a gated diversion weir was installed at Munda. The LSC conveys water to the Sholgara Canal serving some - 4 -

10,500 ac, as well as the LSC command area of 134,500 ac. In 1905, due to the great success of the LSC, a diversion was proposed upstream on the Swat River at Amandara to irrigate areas in Mardan that could not be served by the LSC. The construction of the USC, started in 1908, was completed in 1918 and now serves a CCA of 274,000 ac.

1.11 The LSC and USC projects were designed for an annual cropping intensity of 100% and channel capacities were based on 5 to 6 cusecs per 1,000 ac CCA to be served. During the years, additional areas adjacent to the canals were brought under irrigation and the cropping intensities rose to about 175%. This was achieved by deliberately under irrigating the existing irrigated areas and spreading the water on the new lands, thereby sacrificing yields in the interest of expanding the cropped area. As a consequence the canals now can only provide about one-half of the peak optimal irrigation water requirements of the enlarged command areas. As irrigation continued over the years, the ground water table rose gradually throughout the irrigated area. Increasingly, the lands became waterlogged and salinity-alkalinity problems intensified, resulting in a sharp reduction in productivity, and many lands were abandoned. Because of the deteriorating situation in the area, the Government initiated several studies in the early 1960s to rehabilitate the irrigation systems and alleviate the drainage problems. The last report, the Project Planning Report of Mardan Salinity Control and Reclamation Project - Phase one, prepared by Water and Power Development Authority (WAPDA) with the assistance of Harza Engineering Company, Int., dated December 1977, is the basis for this Appraisal Report.

Project Formulation

1.12 The proposed project is the most economically feasible plan to improve irrigation efficiencies in the project area, provide a full irrigation water supply for both rabi and kharif crops, provide adequate drainage relief, and reclaim non-productive areas of the project. Alternatives reviewed during plan formulation and later at appraisal included vertical drainage, enlarging the existing system and lining the existing irrigation system. These proved to be not viable. Because of the thick fine textured soils overlaying the affected area, vertical drainage could not be employed in lieu of subsurface tile drainage (para 2.05). Since the capacity of the existing irrigation system would need to be about doubled to convey peak irrigation requirements and since the canal closure period is limited to only about one or two months each year, the construction of a parallel system is the only practical solution to increasing conveyance capacity. Water savings that could be realized by lining existing canals would not be sufficient to meet the full needs of the project. Water losses normally are significantly greater in the watercourses than in the larger canals and watercourse improvements are provided as a project component. The components of the project are described in detail in Chapter III. - 5 -

II. THE PROJECT AREA

General

2.01 The project is located in the NWFP, in the Vale of Peshawar and covers just 210,000 ac CCA of the overall 420,000 ac CCA in the Mardan area. The proposed project would include the CCA of the entire LSC of 134,500 ac and 75,500 ac of the USC. The present cropping intensities of 175% in the LSC command area and 173% in the USC command area are higher than anywhere else in Pakistan 1/. However, despite the high intensity of farming, shortages of irrigation water and high water table levels have resulted in extremely low productivity in the entire area; also, some 25,000 ac within the project area have been idled or become only marginally productive due to waterlogging and saline-alkalie conditions. The project area is expected to benefit greatly from the provision of full irrigation supplies and adequate drainage, the reclamation of the abandoned lands, on-farm improvements and improvement of agricultural inputs and extension services. The project would reverse the steadily deteriorating agricultural trend, which, unless checked, would seriously affect the living standards of the more than 500,000 people living in the project area.

Climate

2.02 The project area, situated at an elevation of about 1,200 ft above sea level, has a cool, dry climate from November to the end February, with day time temperatures averaging about 65 0 F (18°C). During December and January the temperature drops as low as 32°F (O0C) at night. From May to September, the climate is warmer and more humid, with day-time temperatures averaging about 950F (35 0 C). Night temperatures are seldom below 70°F (21°C) during this period. Occasionally in June, temperatures reach 105°F (41°C). The rainfall in the project area varies from an average of about 15 inches on the western perimeter to about 32 inches in the east, being about equally divided between winter (December through March) and summer (mid-July to September). The winter rains are influenced by the cold fronts moving in from the Hindu Kush Range, which flanks the area on the northwestern side, while the summer monsoon rains result from the warm fronts moving in from the Indian Ocean. The project area is suitable for year-round cultivation. However, the cold nights from October onwards make the area unsuitable for cotton and adversely affects sugarcane yields and its sugar content; the frosts during February- March sometimes damage the winter crops, such as the earlier maturing wheat which comes into head during that period. Irrigation is essential for successful year-round crop cultivation (Annex 1, Table 1).

Topography and Drainage

2.03 The project area is characterized by slightly rolling to almost flat topography. The slope of the land ranges from 0 to 4% with an average slope

1/ Cropping intensities refer to the cropped area and do not include the presently abandoned area, where the present cropping intensity is zero. - 6 - of about 1% towards natural drainageways flowing mostly to the south and south- west. Some of the flatter areas with slopes of about 0.3% or less are severely waterlogged and salt-affected.

2.04 There are about 340 mi of open drains in the natural drainage basins serving the project area which, in the past, have removed storm and irrigation return flows without widespread damage to crops or land resources. However, lack of maintenance has reduced their effectiveness and the system presently is not capable of evacuating storm water rapidly enough. Some minor surface flooding occurs within the project area; major flooding and sedimenta- tion occurs on lands bordering the project area.

2.05 Some subsurface drainage is provided incidentally by the deep open drains and natural stream channels. However, about 93,000 ac of CCA are underlain by water tables less than 3 ft deep and 190,000 ac less than 5 ft. Detailed groundwater investigations show that the project area is not con- ducive to shallow tubewell development for drainage or irrigation purposes. Due to the existence of thick intermittent clay layers, deep groundwater tubewells would not be effective in alleviating the waterlogged conditions. Under the project, subsurface drainage would be installed in the more seriously affected areas and open drains would be rehabilitated and deepened to provide a gravity outlet for the subsurface drains.

Soils

2.06 Most of the soils in the project area were alluvially deposited and were derived from shales, slates, sandstones and limestones; they are moderately fertile. Although most of the parent materials of these soils are calcareous, some soils have been leached sufficiently by rainwater to become acidic, at least in the surface layers. Most of the soils are quite deep, low in organic matter and coarse to moderately fine in texture. The subsoils are commonly coarser than the topsoils. Soil structures are good in the non-alkali areas, soil cultivation is not difficult and good seed beds can be prepared. The soils are well drained close to rivers and drainageways, but are poorly drained in the flatter, generally finer-textured areas, many of which are also the alkali-affected areas. Field tests indicate that most of the soils are moderately to highly permeable.

2.07 About 12% (25,000 ac CCA) of the soils are salt affected (alkali and saline-alkali) and would require leaching and the application of an average of about six tons of gypsum/ac and 20 lb of zinc sulphate/ac for full reclamation. None are solely saline, but are rather alkali or saline-alkali. No alkali or saline-alkali problems are found in lands not subject to waterlogging.

Farm Size and Land Tenure

2.08 The project area is one of the most densely populated areas in Pakistan with a rural population of about 2.4 persons per cultivated ac compared with a rural population of about 1.3 persons per cultivated ac for the whole of Pakistan. Hence the average farm size of 5.4 ac in the project area is smaller while the 7.4 average household size is larger than the average in - 7 -

Pakistan. About 60% of all agricultural households operate farms smaller than 5 ac, 30% operate farms from 5 ac to 12.5 ac, and 9% operate farms larger than 12.5 ac. Farms larger than 12.5 ac make up about 35% of the land. More than 70% of the farms are fragmented in up to 10 non-continguous fields. The average field size in the project area is only about 1.8 ac with an average of three fields per farm.

2.09 The farm size distribution for the project area, based upon the weighted average of the Mardan and Peshawar districts (Annex 1, Tables 2 and 3), is estimated to be as follows:

% of % of Average Average Farm Size Holding Cultivated Area Farm Size Family Size ac ac

Under 2.5 37 8 1.2 6.1 2.5 to 5 24 15 3.4 7.0 5 to 12.5 30 42 7.4 8.3 12.5 to 25 7 21 15.9 10.1 over 25 2 14 44.7 13.5

About 45% of the holdings are owner operated, 20% are farmed by owners who rent part of their land (owner-cum-tenant) and the remaining 35% are tenant farmed. Share cropping, the most common type of lease, is usually based on a 50-50 sharing. Under the 1972 land reform law, owners were made responsible for paying land revenue, water charges and housing. Tenants are responsible for the entire tillage costs, while the cost of fertilizers and agro- chemicals are shared equally with the owner.

Present Agricultural Situation

2.10 All agricultural land in the project area is irrigated. Cropping intensities over the cropped area are about 175% in the LSC command area and about 173% in the USC command area. However, crop productivity generally is low; crop yields vary in areas according to water table depths and water supply conditions. The higher yields come from areas in the LSC and USC command areas where no waterlogging problems exist. The lowest yields come from areas in the LSC command with water table levels less than 5 ft deep. In both canal command areas, about 12% of the land is lcft fallow as it is severely affected by waterlogging and salinity-alkalinity conditions.

2.11 The main crops grown in the project area are sugarcane, maize, wheat, sugar beets and tobacco.

Sugarcane: the main cash crop, with intensities averaging about 34% in the LSC command area and 30% in the USC command area. The planted cane matures in about 10-12 months and the ratoon crop in around 9-10 months. Normally two ratoon crops are taken, after which yields tend to drop. Most of the cane is planted in early spring. The average yield of about 12.5 metric tons/ac is low. The yield potential in this area is about 30 metric tons/ac. - 8 -

Maize: is the main kharif (summer) crop with a cropping intensity of 33% in the LSC command area and 39% in the USC command area. The crop is sown (broadcast) in a thick stand and then thinned out for fodder as required, the remaining plants being permitted to mature for grain. Consequently, the yields average only about 0.5 metric tons/ac against a potential of well in excess of two metric tons/ac.

Wheat: is the main rabi (winter) crop, with cropping intensities of 31% in the LSC command area and 41% in the USC command areas. The high yielding dwarf varieties were introduced in the late 1960s, yet yields average only about 0.6 metric ton/ac. This is largely due to cultural practices. Yield potentials are known to be at least 1.5 metric tons/ac.

Sugar beets: were introduced on a commercial scale in the late 1960s in order to enhance the working season of the sugar mills. At present, cropping intensities have reached 8% in the LSC command area and 3% in the USC command area. Sugar beets are harvested from May to June and yields are generally low (about 11 metric ton/ac) but could be improved by good extension work. Yields of 16-18 metric tons/ac can be obtained with improved cultural and crop husbandry practices.

Tobacco: an important rabi cash crop with cropping intensities of 9% in the LSC command area and 10% in the USC command area. The crop, mainly Virginia varieties, is raised in nurseries and transplanted into the fields in late February to March and harvested during June to early July. Both the growing and curing of the crop is carefully supervised by several tobacco companies operating in the area and much of the best quality leaf is exported. The average yield is around 0.5 metric ton/ac, which can be readily increased to at least 0.7 metric tons/ac with improved cutlural practices.

2.12 Cropping constraints vary considerably throughout the project area and yield levels differ widely from one zone to another. Yield variances would continue to exist without the project but near uniform yields would be expected throughout the area with the project. Cropping patterns and average yields under present and estimated future conditions are detailed in Annex 1, Tables 4 to 6.

Agricultural Supporting Services

2.13 Agricultural Research. Agricultural research at the provincial level is under the Secretary for Agriculture, NWFP and at the Federal level under the Agricultural Research Council. The main agricultural research station is located at Tarnab, some 12 mi east of Peshawar and just outside the project area. The research station has several sub-stations covering research - 9 -

on most annual and perennial crops, including fruit. The research is often too academic to adapt to the basic needs of the farmers in the NWFP. For exam- ple, although the station is located in a waterlogged area, no research has been done on the effect of differing water levels on the yields of various crops. The sub-station responsible for sugarcane and sugar beet research is near the city of Mardan in the center of the project area. Not much progress has been made in developing higher yielding cane for the cooler climate of Mardan nor in breeding an earlier-maturing variety of sugar beets for harvesting in April or soon after the sugarcane is off the ground.

2.14 A Maize and Millets Research Institute is located at Pir Sabak on the left bank of the Kabul River. The head of the Institute reports directly to the Secretary of Agriculture. Its research is better adapted to the basic needs of the NWFP, with guidance from the Ford Foundation Maize and Millet breeders based in Islamabad. The Institute's farm is being developed and enlarged to 130 ac with financial and technical assistance from Australia under the Colombo Plan. The Institute is also training a small team of extension personnel to assist progressive farmers in maize production.

2.15 Tobacco research is under the Pakistan Tobacco Board in conjunction with the tobacco companies. The Pakistan Tobacco Board has a small staff for advising farmers on growing and curing Virginia-type tobacco.

2.16 Agricultural Extension Service. Agricultural extension is the responsibility of the Department of Agriculture. The Field Assistants (FAs), the lowest level of extension staff, operate in an area covering well over 1,000 farmers. They are supervised by Agricultural Assistants (AAs) who in turn report to the Extra-Assistant Directors of Agriculture (EADA). Because the project area includes the Mardan District and part of the Peshawar District, extension activities in the project area are directed by the Mardan and Peshawar EADAs under the overall supervision of the provincial Deputy Director of Agriculture (DDA), Peshawar Division. He reports to the NWFP Director of Agriculture (DA). Pest control support in each district comes from the Assistant Plant Protection Officer (APPO), who usually is not an entomologist. An Assistant Horticultural Officer (AHO) attached to the DDA's office, covers the entire Peshawar Division. Liaison between extension and research is very poor.

2.17 Extension staff are responsible for a wide range of developmental, administrative and regulatory functions in addition to their regular extension duties. There is a shortage of adequate housing for such staff near their working area and transportation is inadequate. As a result, extension visits are infrequent, poorly planned and have little positive effect on agricultural production.

Agricultural Inputs

2.18 Seed. The multiplication of seeds of improved varieties of wheat, maize and oilseeds is handled by the Agricultural Development Authority (ADA) through contracts with progressive farmers. However, ADA seeds are generally in short and irregular supply. Sugar beet seed is multiplied by the Mardan, Charsadda and Takht Bhai sugar mills from the German-imported basic (polybeta) - 10 - seed. Because the sugar mills have the monopoly of both procuring and distri- buting sugar beet seed, they control the acreage planted. Tobacco farmers usually receive seeds from the tobacco companies.

2.19 Fertilizers. Fertilizer application in the project area is high in comparison with other parts of Pakistan. However, the N:P balance of about 4.5 to I is high for soils in the project area, which show a good response to both nitrogenous and phosphorus applications. ADA has a monopoly for distri- buting all imported fertilizers procured for NWFP by the Federal Government. The fertilizers come by rail from Karachi and are then sent to the various ADA depots, where they are collected by the appointed commission agents who sell to farmers. Pakistan-produced fertilizers, like urea, ammonium sulphate and ammonium nitrate, are sold through private dealers appointed by the manufac- turers. All of the indigenous produced ammonium sulphate (about 285,000 tons/yr) is earmarked for distribution in the NWFP, where it is preferred for tobacco growing. The local fertilizer factories have their own sales organization and outlets, so the farmers in the project area will be competitively served by the producers.

2.20 Plant Protection. The Department of Agriculture, NWFP is obliged to procure the agro-chemicals required for seed dressing and plant protection through the Federal Ministry of Supplies. Because the Government managed agro-chemicals carry a 75% subsidy, the distribution is entrusted to the Field Assistant (FA), who is responsible for proper storage and sale of the chemicals. In addition, the FA carries stocks of both power and hand sprayers for sale at 50% subsidy.

2.21 Aerial spraying is a free service undertaken by the Federal Govern- ment Aerial Spraying Unit in the project area. This is done from the 25th of May to the 30th of June and repeated from the 24th of August and through the 30th of September against pyrilla, white fly and mites on sugarcane; other crops in the vicinity also benefit. Although the Department of Agriculture claims a 100% coverage for aerial and ground spraying of sugarcane, orchards and tobacco, the effectiveness of aerial spraying is doubtful. Three planes are stationed at Peshawar for aerial spraying.

Agricultural Credit

2.22 Institutional agricultural credit in the project area is provided by the following agencies: Agricultural Development Bank of Pakistan (ADBP); Revenue Department of the Provincial Government (Taccavi Loans); The Frontier Provincial Cooperative Bank; and the commercial banks. During 1976/77, the credit disbursed by these institutions in the four tehsils partially included in the project area amounted to about Rs 33 M; about 50% was given in short- term loans and the other 50% in medium- and long-term loans. During 1974/75, credit disbursed amounted to only about Rs 15 M. Most of the non-institutional agricultural credit is provided by the sugar factories (mainly for fertilizers for sugar beet production), and by the tobacco companies (mainly for fertilizer and plant protection); some is also provided by land owners, commission agents, and relatives. - 11 -

2.23 The ADBP is the major agricultural lending agency in the area and during 1976/77 provided about 50% of the total institutional credit to farmers. ADBP extends three types of loans: short-term loans, repayable after harvest up to a maximum period of 18 months, mostly granted to small farmers for seasonal inputs; medium-term loans, repayable within a period of up to five years; and long-term loans, repayable over a period of more than give years. These last two types of loans are granted for farm improvement and/or farm investment. In the past, ADBP recovery rates were low due to poor administration and lack of credit discipline. However, due to administrative improvements and to the effects of GOP's strict credit controls, the recovery rate has improved, reaching about 80% during 1977/78. ADBP charges a uniform loan interest rate of 12%; a 2% recovery charge is also levied against defaulters along with 1% additional interest in case of default. IDA is presently studying a project to finance a new Pakistan Agricultural Credit through this institution.

2.24 The Revenue Department's Taccavi loans are emergency loans for short-, medium- and long-term financing. During 1976/77, the Department contributed less than 2% of the total institutional credit sanction in the project area.

2.25 The Frontier Provincial Cooperative Bank provides funds to coopera- tives in the project area which, in turn, relend on short and long terms to their members. During 1976/77, the Cooperative Bank contributed about 18% of all institutional credit in the project area, mainly for short-term loans. It borrows money from the Federal Government at 8% and relends to its societies at 11%. The societies charge an additional 2% to their members. Apart from credit facilities, the cooperative societies also supply their members with agricultural inputs and equipment on a discount basis.

2.26 Since 1972, the nationalized commercial banks have been directed by the Government to lend for agriculture and they are taking active steps to expand their activities. They provide short-term (production) loans and long-term (development) loans. The National Bank of Pakistan (NBP) loaned about 23% of the agricultural credit sanctioned in the area during 1976/77, the United Bank about 4% and Habib Bank about 3%. NBP provides credit through its Supervised Agricultural Credit Program. Mobile Basic Credit Units (BCU) have been developed to cover about 40 villages each and are staffed with trained agriculturists. Credit is provided only in kind and arrangements are made to deliver the necessary inputs to the villages. Farmers are also advised on the proper use of inputs. The NBP program is directed to financing farmers owning less than 25 ac. At present, the recovery rate on production loans is above 80%, and on development loans, nearly 100%. There are four BCUs in the project area, and during 1976/77 loans increased by more than 4.5 times. The main sources of funds for this program are through the rediscounting facilities and the NBP's own funds. The NBP plans to maintain 1976/77 lending expansion rate. Agricultural credit facilities within the SCARP Mardan area are adequate for the needs of the project.

Marketing and Processing

2.27 Agricultural products in the project area are sold in nearby market centers through commission agents. Market facilities for the main crops grown in the area are reliable and fairly well developed. Three sugar mills operate - 12 - in the project area, while another outside the area draws cane and beets from the project area. These mills buy about 40% of the cane produced in the area, about 55% being used for gur production and the remainder for chewing and seed. Prices of beet and cane are fixed by the Government; the price of gur is governed by the price and supply of sugar. The mills schedule the timely supply of cane and beets in their allocated zones through commission agents and large farmers; however, one mill operates only through the cooperative societies. Transportation is normally arranged by the agents and/or mills and the cost is reduced from the price fixed by Government. Sugar produced by the mills is taken by the Government for sale through its ration shops and for allocation to the other provinces. The unutilized capacity of the mills and the overall high demand for sugar and gur ensure a ready market for sugarcane and beets.

2.28 Maize is a staple food in the area and present production is insufficient to meet demand for local consumption and for the local maize processing plants. Maize is sold by farmers through commission agents operating in the area. Normally the price of maize is similar to the price of wheat.

2.29 The Government has 14 procurement centers in the project area for purchasing surplus wheat at the price fixed by the Federal Government, but, because the area is deficient in wheat, only small quantities are brought to these centers. Wheat procured is sold to the flour mills, which eventually supply the ration shops. A large amount of the wheat produced in the area is for the farmers' own consumption; some is sold locally by farmers to the various commission agents operating in the market towns scattered throughout the area and some finds its way to the adjacent tribal areas. Normally, the free market price is much higher than the procurement price.

2.30 Tobacco, an important cash crop in the project area, is bought by the various tobacco companies at eight buying locations. The price is fixed by the Government according to leaf quality. Tobacco is processed locally and cigarettes are exported to other parts of Pakistan and abroad. More than 40% of the Virginia tobacco is exported, mainly to the United Kingdom, Poland, Italy, Bangladesh and to some Arab countries. In the late 1960s, industrial capacity was expanded but, due to the separation of Bangladesh in 1971, demand dropped dramatically and companies are now working below capacity. Exports to Bangladesh started recently and this country and some of the Arab countries appear to be a promising potential market for Pakistan tobacco.

Transportation

2.31 Mardan is linked with Peshawar, the Provincial capital, and the rest of Pakistan by railway and a good highway. Within the project area, there is a network of metalled roads feeding the market towns. Farm roads and tracks, however, are poor due to lack of maintenance. During the heavy winter rains, many are virtually impassable. Sugarcane and beets bought by the sugar mills are transported by lorries and tractor trailers from dumping points along the main and farm roads. The feeder roads, farm roads and tracks have to with- stand this heavy market traffic from October to June. The Premier Sugar Mill at Mardan also utilizes the railway for transporting cane to its factory. Other agricultural commodities are moved to the primary and secondary markets - 13 -

in trucks, oxcarts and on camels. Exports to other parts of Pakistan, mainly of sugar, sugar products and tobacco, are by rail.

III. THE PROJECT

General

3.01 The proposed project would be the first irrigated agricultural development project prepared for Bank Group financial assistance in the NWFP. It would cover just half (210,000 ac) of the irrigated land in the Mardan area (420,000 ac). It would provide: additional irrigation water and irrigation improvements for the entire LSC command area (134,500 ac) and additional water for part of the USC command area (75,500 ac) by improvements to Benton tunnel; surface drainage improvements on 185,000 ac; tile drains on 110,000 ac; precision land leveling of about 35,000 ac; the reclamation of 25,000 ac of saline- alkali lands; programs to monitor irrigation deliveries and losses, groundwater levels, drainage flows and agricultural yields; and improved agricultural extention services. The project would be implemented over a six-year period. Technical assistance would be provided to assist WAPDA in the completion of final designs and tender documents and the supervision of construction of project works, as well as for the preparation of a feasibility report for improving the remaining irrigated land in the Mardan area and the possible inclusion of adjacent unirrigated areas.

3.02 Because all components of the project would not be implemented throughout the project area, the project area has been divided into five sub- areas according to the project components to be provided and existing agricultural conditions. A description of each sub-area and the project components to be provided in the sub-areas are presented in Annex 1, Table 4.

Main Project Features

3.03 The project works would include:

(a) Installing tile drains in areas with a water table dRepth of less than 5 ft, altogether in about 110,000 ac;

(b) Remodeling existing surface drains in about 185,000 ac to carry storm water and to provide a gravity outlet for the tile drainage effluent;

(c) Modifying the 2.1 mi long Benton Tunnel, near the head of the USC, to increase the discharge capacity from 1,800 cusecs to about 2,060 cusecs;

(d) Remodeling the Munda headworks and the LSC system to provide increased capacity and improve canal operational efficiencies. Additional water from the Swat River would be diverted through the enlarged and improved system to provide full irrigation and reclamation requirements of the LSC command area; - 14 -

(e) Reclaiming about 25,000 ac of abandoned and/or marginally productive saline-alkaline land;

(f) Improving on-farm water management efficiency through watercourse improvements on 143,000 ac and precision land leveling on 35,000 ac;

(g) Improving the rural market road network to handle increased inputs and outputs expected with project development;

(h) Improving agricultural extension services and the institution of the training and visit (T&V) system over the entire Administrative District and the Charadda Tehsil of the Peshawar District, covering a total GCA of 670,000 ac;

(i) Improving the quality and quantity of maize seed for the Mardan area;

(i) Monitoring irrigation deliveries, drainage flows, water table depths, land reclamation progress and agricultural yields and production;

(j) Providing equipment and vehicles for construction, O&M, agricultural extension, monitoring programs, seed production and distribution, and project support; and

(1) Providing technical assistance (consultants) for the preparation of detailed designs, specifications, tender documents and construction drawings for civil works; for feasibility studies of a subsequent project to provide for the needs of the remainder of the USC command area; and to advise and assist in reorganizing the agricultural extension program in line with the training and visit (T&V) system and to advise and develop local expertise in sugar beet agronomy.

Description of Major Works to be Undertaken

3.04 LSC Irrigation System. The LSC, completed in 1885, is supplied from the Swat River at the Munda headworks and commands a CCA of 134,500 ac. For the first 4 mi, the canal also conveys irrigation water to the Sholgara Canal serving a CCA of 10,500 ac. The canal presently has an authorized full supply of 830 cusecs for the LSC and 176 cusecs for the Sholgara Canal. However, the peak month water delivery presently averages only about 940 cusecs.

3.05 The original design for the LSC system was based on providing between 5 and 6 cusecs of channel capacity at the distributary head for each 1,000 ac of area served. About 10 to 12 cusecs per 1,000 ac, or about twice the capacity of the existing system, is now required. The original cropping intensity used in the design of the irrigation system was 100%; 60% in the kharif and 40% in the rabi season. Present cropping intensities average 175%. - 15 -

Estimated peak monthly water requirements (May) for the proposed project cropping intensity of 180% at full development would be about 1,820 cusecs, or 93% greater than the present peak deliveries. For the peak two-week requirement period, design capacity requirements would exceed the existing capacity by more than 100%. The existing regulator at the Munda headworks would be remodeled to divert the additional water to the LSC. The field cost of the modification work, estimated at US$1.0 M, is included in the cost of the LSC.

3.06 Except for January, when all irrigation channels are closed for maintenance, the LSC system is operated continuously. The main and branch canals are operated to supply full releases to off-taking channels simul- taneously. Because of perennial irrigation and the difficulty of enlarging the present system with water in the canals, a parallel canal system of equal capacity would be constructed. About 2,500 ac of additional right of way would be required for constructing the parallel system. The acquisition cost of this land is estimated at US$2.5 M.

3.07 The LSC irrigation system, excluding the Sholgara system, comprises the 25 mi-long LSC, ten distributaries and branches totalling 70 mi in length and 19 minors with a total length of 83 mi, as shown on the irrigation system map (Map 13707). The type and number of structures in the combined LSC and Sholgara systems, exclusive of the Munda headworks, are shown in the following table. The same number of structures have been proposed for the new parallel system and improvements would be made to structures in the existing system where necessary.

Canal Lower Swat Canal Distributaries Minors Total

Fall 10 104 90 204 District Road Bridge 2 13 21 36 Head Regulator 10 16 2 28 Village Road Bridge 6 48 67 121 Aqueduct 10 6 7 23 Outlet 10 108 98 216 Inlet 4 - - 4 Syphon 4 8 25 37 Super Passage 4 3 - 7 Foot Bridge 5 12 23 40 Flume - - 2 2 Railway Bridge 4 4 8

3.08 Rehabilitation of Existing Open Drains. A total of about 284 mi of open drains would be rehabilitated or remodeled, benefitting 183,000 ac. The work would consist of re-establishing alignments, channel deepening to provide adequate depths for buried drains, and reshaping channel cross sections to increase flow capacities. About 2,400 ac of right-of-way would be required for this work at an estimated cost of US$2.4 M.

3.09 The lengths of all open drains were measured and checked in the field. The Murdara drain was designed in detail, with construction grade - 16 -

plan-profile sheets, to estimate earthwork quantities and structural requirements. Results from these studies were projected to the rest of the area for estimating open drainage costs. Flow quantities were determined for five-year storm frequencies with irrigation and subsurface returns added. Minimum cross- sections of drains would have bottom widths of 4 ft, depths of 8 ft below ground surface, and 1-1/2:1 side slopes. The average channel depth would be about 9 ft. An average of one arterial road bridge, one drop structure, 14 village road bridges and culverts, three aqueducts and six foot bridges would be provided for each 10 mi of open drain. The following table summarizes the estimated lengths of drain to be rehabilitated, the area benefitted, and the estimated cost including structures:

Tota, System CCA ac Drains mi Cost/ac, US$ Cost- US$ ('000)

Hisara North 23,000 40 53 1,210 South 46,000 78 51 2,360 Subtotal 69,000 118 52 3,570

Murdara North 18,000 22 37 670 South 28,000 36 39 1,090 Subtotal 46,000 58 38 1,760

Plato 3,000 10 100 300 Bandai 10,000 26 79 790 Uch 13,000 12 28 360 Ballar 42,000 60 43 1,820 Total 183,000 284 47 8,600

Physical contingencies 900

Total open drain cost 9,500

/a For comparative purposes, costs in this table include equipment depreciation; however, in the cost table in para 3.58, equipment depreciation is not included since equipment will be furnished under the project.

3.10 Subsurface Drainage System. Shallow water tables have developed under about 110,000 ac CCA, and the varying saline-alkaline and waterlogging conditions resulting have significantly reduced agricultural yields. About 25,000 ac have been abandonded or are only marginally productive because of adverse drainage and saline-alkalie soil conditions. Subsurface drains would be required (i) to lower and control the water table to depths at least 4 ft below ground surface and (ii) to remove the water required in the reclamation of the abandoned and marginal lands. The subsurface drains would be provided on all lands lying west of the Mardan-Nowshera road with water table depths within 5 ft of the ground surface, on lands east of the Mardan-Nowshera - 17 - road in the Plato and Bandai watersheds with watertable depths less than 5 ft and on lands in the Uch and Ballar watershed with watertable depths less than 3 ft. About 2,600 mi of tile drains would be required.

3.11 Subsurface drainage requirements were determined using US Bureau of Reclamation transient state methods, which relate the groundwater recharge rate with local irrigation practices. An average drain depth of 8 ft was proposed because of greater economies associated with a drain of this depth and the availability of sufficient outfall depths. The following table summarizes drainage requirements, areas drained and subsurface drainage cost by watersheds:

Drained Lateral Collector Total US$ Total Cost /a System area ac Drains mi Drains mi mi ac /b US$ '000

Hisara North 29,400 578 98 676 300 8,900 South 15,500 338 45 383 330 5,100 Subtotal 44,900 916 143 1,059 310 14,000

Murdara North 19,000 329 76 405 280 5,400 South 20,000 439 61 500 320 6,600 Subtotal 39,000 768 137 905 310 12,000

West of Hisara 5,800 100 17 117 260 1,500

Plato 3,400 85 11 96 380 1,300 Bandai 8,500 227 30 257 400 3,400 Uch 3,000 77 9 86 370 1,100 Ballar 5,400 123 17 140 330 1,800 Total 110,000 2,296 364 2,660 320 35,100

Physical contingencies 3,500

Total Subsurface drainage cost 390 38,600

/a For comparative purposes, costs include equipment depreciation; however, equipment depreciation is not included in the cost table in para 3.58, since equipment will be furnished under the project. Costs do not include price escalation or engineering and supervision costs. /b Rounded to nearest US$10/ac.

3.12 No land would be acquired for the construction of subsurface drains, since no additional land would be taken permanently for these works; however, payment for crops damaged, destroyed or foregone due to construction activities would be paid at prevailing prices. The estimated weighted average crop value is about Rs 1,600 per ac. Based on a 50-ft working easement width for the 2,600 mi of subsurface drains, crop damage compensation would total about US$2.5 M. - 18 -

3.13 Modifications to Benton Tunnel. In order to supply water for the reclamation (leaching) of project lands included in the USC command area, minor modifications to the 2.1-mi long Benton Tunnel would be undertaken. Although the tunnel was designed for a capacity of 2,400 cusecs, it was able to pass only 1,800 cusecs after completion due to irregularities of the surface of the tunnel. Engineering studies made by the Irrigation Department, NWFP, have determined that with minor work on the inside surface of the tunnel the capacity could be increased to 2,060 cusecs, more than enough to provide the necessary water required for leaching. The work would include removing constrictions and rock projections in the tunnel at several locations and providing a 1-ft thick 18-ft wide concrete bed in the invert of the tunnel throughout its length. Estimated construction quantities include 14,000 cu yd of hard rock excavation, 4,300 cu yd of lean concrete for filling depressions (overcuts), and 7,500 cu yd of reinforced concrete in the invert lining.

3.14 A maximum of about 80 to 90 cusecs would be required at the height of the reclamation program to reclaim the 8,500 ac of land in need of reclamation in the USC command area. The developed water not required for leaching these lands, and the full quantity after the leaching process was completed, would be allocated throughout the USC command area on the basis of equal water rights for each ac of land.

3.15 Improvement of Rural Market Road Network. The farm-to-market road improvement program would be undertaken only in the LSC command area. Roads in the USC command area would be undertaken in the future project. Most of the existing village roads are narrow and unpaved, making them impassable, even to animal-drawn vehicles, after heavy rains. During these periods, farm products cannot be transported to markets. Also, nearly all crossing structures are built of temporary materials. Some villages have no access to the rural road network other than by footpaths and agricultural products must be transported manually.

3.16 Design criteria for the road network would be as follows (whenever economically advantageous and technically acceptable to do so):

(a) all parts of the LSC command area would be brought within one mile distance of an all-weather road;

(b) village roads would by-pass the villages to avoid congestion; and

3.17 Road plans and detailed design would be prepared as part of the final project designs. A lump sum of US$1.5 M has been estimated to be required to cover the cost of improving or constructing about 100 mi of gravel or macadam- surfaced roads. This cost would be in addition to about US$1.4 M of road construction equipment provided under the project. An assurance was obtained from WAPDA that prior to improving any portion of the rural market road network, it would furnish to IDA for review, a survey of road requirements and detailed designs for the road improvement works under the project. - 19 -

On-Farm Improvements

3.18 Watercourse Remodeling. Although there are no reliable measurements, present water losses from watercourses in the NWFP are observed to be exces- sive, about 40 to 50% of the water delivered to the watercourse head. Actual field measurements of such losses in other areas confirm this amoun- and indicate that the largest loss occurs in the first one-half of the watercourse. Most of this loss is from poorly maintained watercourse banks. Watercourse rehabilitation experiments carried out in Pakistan by Colorado State University, USAID and others have shown that losses can be reduced by 25 to 50% simply by re-establishing the cross-section of the watercourse, compacting the banks, and installing permanent junction boxes and other control structures.

3.19 The USAID on-farm water management program in Pakistan is being carried out by the Department of Agriculture. Farmers are motivated and organized to be involved in the planning and execution of the remodelling work, as well as to contribute free labor to complete the earthwork for watercourse remodeling. The permanent junction boxes and other necessary structures are provided and installed by the Department of Agriculture. The USAID program started its field work in 1977 and as of July 1978 about 70 watercourses were completely remodeled. The program is about one year behind schedule, as it started one year later than originally planned. However, in the last six months the rate of implementation has speeded up, since the staff needed for the program has increased considerably and farmers are more receptive to the program. In the Punjab area, the program is receiving more farm applications for watercourse remodeling than it can handle at present.

3.20 Watercourse remodeling in the project area will be carried out by the NWFP Irrigation Department, generally following the technical procedure of the USAID water management program. The original rights-of-way for the watercourses would be used where possible, the channels would be rebuilt to the proper cross-section and shape, the embankments would be strengthened and compacted and necessary control structures would be installed. These works would increase the capacity of the watercourses and enable better control of the water. By providing pipe outlets, the present practice of cutting the watercourse embankment would be avoided and thus result in stronger embankments with less water losses and crop damage from flooding or waterlogging. The watercourses would have to be completely reconstructed in areas which have been abandoned or are in need of reclamation. In conjunction with the watercourse remodeling program, a review of field drainage requirements would be made and field drains would be constructed where necessary to ensure that each watercourse area would have adequate field drainage.

3.21 The cost of watercourse remodeling is estimated at about Rs 100 per ac, about equally divided between earthwork and permanent control structures. With farmers contributing free labor, the cost of watercourse remodeling for the 143,000 ac to be undertaken by the project would be about Rs 7.2 M. The cost of constructing the necessary field drains in each watercourse area is estimated to be about Rs 50 per ac. Again with farmers contributing the labor, this work would cost about Rs 3.6 M, making the total cost of watercourses and field drains about Rs 10.8 M. - 20 -

3.22 Land Leveling. The 25,000 ac of land to be reclaimed (paras 3.03(e) and 3.23) would need to be leveled precisely to achieve uniform leaching with a minimum amount of time and water. In addition, about 10,000 ac of uneven land requires land leveling for better crop production and more efficient use of water, making a total of 35,000 ac in need of land leveling. The GOP, assisted by USAID, operates a program whereby mechanized land leveling equipment and trained technical assistance are made available to farmers at rates of about Rs 2.0 per cu yd of earth moved, which is about half of the total cost of about Rs 4.0 per cu yd, net of equipment depreciation costs. Because the land leveling work is essential for starting the land reclamation program, land leveling in the project area would be carried out by WAPDA following GOP's above policy of underwriting about half of the cost of the work. Based on earlier studies in the Punjab and Sind, the volume of earth to be moved in the leveling process averages about 340 cu yd per ac of CCA. Assuming 300 cu yd of soil per ac would be required to be moved in areas to be reclaimed (due to better leveling presently existing in these areas) and a cost of Rs 2.0 per cu yd, the unit-area cost would be about Rs 600 per ac. Based on these figures, the cost of the land leveling work in the project area would be Rs 21.0 M (US$2.1 M), not including US$0.7 M for equipment provided under the project. The remaining cost of the land leveling work (Rs 2.0 per cu yd) would be assessed to the owners of the land leveled.

3.23 Land Reclamation. About 25,000 ac (CCA) of land with saline- alkaline soils are interspersed throughout the lower-lying agricultural area of the project aridwould require reclamation to be fully productive. All of this land is privately owned and most is presently unproductive. Reclama- tion would be dependent upon and would largely follow after drainage facilities are provided. The reclamation procedure would involve: (1) land leveling, bunding, and land preparation as required for a paddy crop; (2) application to a depth of 10 to 12 inches of an average of six tons of gypsum per acre, followed by leaching with about 4 to 6 inches of water; (3) addition of 20 pounds of zinc sulphate per acre plus the full recommended fertilizer dose for paddy; (4) transplanting of rice seedlings or broadcasting of paddy seeds; (5) normal crop management and harvesting; followed by (6) normal land preparation and planting and management of a (salt or alkali tolerant) winter crop such as wheat, barley or forage following the rice crop. This cycle of paddy followed by a winter crop would be repeated yearly, but without further addition of gypsum or zinc, until a satisfactory yield of the winter crop was obtained, at which time the land would be considered to be reclaimed and fit for production of any upland crop or paddy.

3.24 For completion of the reclamation program, it is estimated that a total of about 150,000 tons of gypsum at about US$21 per ton ($3.15 M) and about 250 tons of zinc sulphate at about US$200 per ton (US$0.05 M) would be required in addition to land leveling, bunding, fertilizing, planting, etc. The gypsum and zinc sulphate would be provided under the project. The land leveling would be done as discussed in para 3.22. The bunding, fertilizing, planting and leaching process would be the responsibility of the landowners. An assurance was obtained from the Government that, by March 31, 1981, it would discuss with IDA the price to be paid by farmers for soil amendments applied during the land reclamation process and any subsidy to be granted for its use. The reclamation program would begin in the third year of project implementation but little or no crop production would be obtained the first - 21 - year; however, it should be able to obtain about 40% of normal production of rice and somewhat less of the winter crop in the second year, 70% of normal crop production in the third year, 90% the fourth year, and 100% of normal crop production thereafter. Considering the fact that no soil reclamation program of any sort has been carried out in the project area and that little is known locally about the subject, experimental reclamation trials would be initiated during the second and third years of the project. It is anticipated that the reclamation program would proceed as follows:

Area Taken Up Calendar Year Project Year For Reclamation

1979 1 0 1980 2 0 1981 3 2,000 ac 1982 4 5,000 ac 1983 5 8,000 ac 1984 6 10,000 ac

3.25 The reclamation program would be successful only if it is fully supported by GONWFP and GOP and is promoted by a skilled group of local technicians provided with the necessary inputs and support facilities. A Reclamation Unit would be set up within the project organization to conduct the reclamation program. The unit would be based at Peshawar and would have no responsibilities other than the soil reclamation program. Support facilities for the program would include a soils and water laboratory equipped with the necessary equipment and transportation facilities (Annex 1, Table 8). The Central Monitoring Organization of WAPDA has offices, a small laboratory, and staff in Peshawar. These offices and facilities would be expanded to carry out the reclamation function.

Status of Field Investigations, Surveys and Designs

3.26 Engineering surveys, topographic mapping, subsoil hydraulic conductivity measurements, open drain survey and base-flow discharge measurements, geologic investigations, soil testing and surveys, and crop yield sample surveys for areas with water table depths from 1 to 5 ft were carried out by WAPDA, with consultant assistance, starting in 1975. Existing data on soils, ground water, streamflow, agriculture, construction costs, and market prices also were collected and analyzed.

3.27 Topographic Mapping. Since 1976, over 140,000 ac have been mapped at a scale of 1:4,800 with 1-ft contours. At the present rate, the mapping will be completed in 1979.

3.28 Hydraulic Conductivities. A total of 400 pump-out auger-hole tests for permeability were conducted -- about one test per square mile of project area. Most tests were made on composite profiles (consisting of more than one layer). These tests are of little value for projecting permeability values to other areas. Additional tests on individual soil layers will be made for design of subsurface drains. - 22 -

3.29 Exploratory Borings and Test Pits. Soil profiles throughout the project area were logged and reviewed by WAPDA using US Department of Agricul- ture, Soil Conservation Service, methods and procedures. This work would be continued using project-furnished drilling equipment to obtain undisturbed samples to depths of 10 ft. Below 10 ft, carefully logged hand or power auger- holes or would be used for design. About 25 holes per square T2ile would be bored for design - 15 holes/mi to 10-ft depth and 10 holes/mi to an identifiable barrier or a maximum depth of about 30 ft.

3.30 Subsurface Drain Design. Detailed designs of subsurface drains have not yet been undertaken and would be completed during the final design of the project as the required subsurface data are obtained. Detailed soils data, engineering requirements, and design criteria have yet to be developed. Design parameters selected would provide adequate drainage at Least cost for each drainage system. Generally, drains would be located in the most permeable soil betwen 6 and 10 ft below ground surface. Pipe drain depths would average about 8 ft over most of the system. This depth generally would minimize the capital investment and O&M costs on the buried drains.

3.31 Open Drain Design. All of the open drains have been surveyed for alignment, cross section and stability. The Murdara Drain system was studied in detail. The open drains would have 1-1/2:1 side slopes and would be deep enough to receive the pipe drains entering the open drain at depths around 8 ft below ground surface. For unstable soils (saline-alkaline areas), a flatter side slope would be used where necessary.

3.32 LSC Irrigation System. A new parallel irrigation system of about equal capacity to the existing system would be provided, since the existing system was designed for, and can only supply, about half of the present maximum irrigation water demand requirements. The original construction drawings were reviewed to obtain excavation quantities and the details on structures. Final designs of the parallel system would be prepared during the project implementation stage.

3.33 On-Farm Improvements. A detailed evaluation of laboratory data supporting reconnaissance soil surveys in the project area was made to determine the amounts of salt-affected soils and the categories to which they belonged. From this evaluation, the saline-alkali problem soils were determined and the areas in need of reclamation wpre identified Field inspections and review of available aerial photographs for different time periods further delineated these areas. Detailed surveys and designs for watercourse remodeling, land leveling and land reclamation would be carried out during the implementation stage.

Construction Methods and Materials

3.34 Existing office, housing and O&M facilities in the project area are inadequate for the construction and O&M needs of the project. The field cost of the construction and operation camp facilities and the additional maintenance buildings and yards required during project implementation are estimated at US$0.8 M. - 23 -

3.35 Open Drains. Labor-intensive methods would be used to remodel most open drains (about 75% of the work), using both donkey and human labor. About 3 M cu yd of earthwork would be required. Channel construction in drains with water depths exceeding 2 ft would be remodeled using heavy machinery. Numer- ous contractors in the area are capable of executing large labor-intensive contracts of the scale contemplated. There are several contractors in Pakistan that have capability in machine excavation but their present machinery is old and should be replaced. Equipment required for open-channel work is included under the project.

3.36 Subsurface Pipe Drains. Latest pipe-laying techniques would be used to construct the buried pipe drains, including the use of laser-directed equipment. Trenching machines capable of laying plastic tubing with a minimum four-inch gravel envelope at 8 to 10 ft below ground surface would be provided under the project. About 75% of the drains would require a pipe size of 4- to 6-inch diameter. Costs were estimated using corrugated PVC plastic tubing; however, only three-in PVC tubing presently is manufactured in Pakistan (Karachi) by Pakistan PVC Ltd. A new plant would be required and is included in the equipment needs of the project, estimated to cost US$1.6 M, exclusive of land costs. GOP agreed to inform IDA of arrangements for the construction and operation of the new plant and to submit a detailed feasibility study for the plant by March 31, 1979. The plant most likely would be located at Islamabad or Rawalpindi to better serve the general area of northwest Pakistan and to reduce transportation costs. Although plastic tubing could be obtained from abroad, the cost would be 60 to 70% greater than the estimated cost of locally-produced tubing. Gravel envelope material is considered better than man-made fabric filter and is plentiful in the project area. A gravel processing plant has been included in the equipment needs of the project.

3.37 Irrigation System. The LSC irrigation system would be constructed with both labor-intensive and equipment-oriented methods, using equipment only for the construction of the larger canals. Equipment would be used in the compaction of all canal banks and around all canal structures to obtain required soil densities and minimize seepage losses. Equipment required for constructing of the irrigation system is provided under the project.

3.38 Farm-to-Market Roads. Rehabilitation and construction of the rural road network would be done by local contractors using equipment provided by the project. Adequate construction materials are available locally.

3.39 On-Farm Improvements. Watercourse remodeling, farm drain construction and land reclamation would be done principally by the farmers with technical assistance and materials provided by the project, whereas land leveling would be carried out by GOP, using equipment provided by the project. Work programs for watercourse remodeling and field drains would be planned and implemented on a watercourse basis, involving all of the farmers in the watercourse in the planning, layout and construction work. The existing USAID- assisted land leveling program would be followed in the land leveling work. - 24 -

Agricultural Development

3.40 Agricultural Extension. It is essential to the success of the project that the agricultural extension service be improved and operated more effectively, thus the method and staffing of the extension service would be organized on the lines of the T&V system which has proved successful in neighboring countries and other areas of Pakistan. Its adaptation to conditions in the NWFP and the job descriptions of the various staff grades are found in the "Operating Manual of the Agricultural Extension Service in the North-west Frontier Province." Assurances were obtained from GONWFP that (i) it would introduce the T&V agricultural extension system in the project area by June 30, 1980 in accordance with arrangements satisfactory to IDA and thereafter maintain and continue to operate the system efficiently; (ii) all staff directly involved in agricultural extension would be released from all non-extension activities, including the sale and application of pesticides; (iii) beginning not later than June 30, 1980, it would provide vehicles to extension workers in the project area in accordance with arrangements satisfactory to IDA; and (iv) it would compensate, in accordance with prevailing NWFP rules and regulations, extension workers in the project area for expenditures incurred during duty travel.

3.41 The details of additions or changes required in the present organization to enable the T&V system to be operated effectively are presented in Annex 2. A summary of costs of the agricultural extension improvement program, exclusive of equipment and technical assistance costs, which are included separately in the project cost estimate (para 3.58), is shown in the following table:

Item Cost /a US$ M

Housing 0.48 Stores and offices 0.11 Vehicle operating costs 0.12 Incremental staff salaries 0.30 Staff traveling allowances 0.09 Building maintenance 0.05 Total 1.15

/a Exclusive of equipment and technical assistance costs.

3.42 Maize Seed Multiplication and Distribution. One of the factors presently depressing yields of current crop varieties in Pakistan is the lack of a rigid procedure for seed quality control. An IDA-supported Seeds Project (Credit 620-PAK) is currently under implementation in the Sind and Punjab Provinces to produce seeds in accordance with quality standards set forth in the Seed Act of 1975. The Punjab Seeds Project has the capability to meet NWFP's wheat seed needs until it organizes its own production. Wheat seed produced in the Punjab would not be ideally adapted to the NWFP but would be a great improvement over present quality. However, maize seed requirements must be produced in the NWFP, since the ecological adaptability - 25 - of maize varieties is much narrower than that of wheat. A maize seed multiplication and distribution scheme would be provided under the project to meet the needs for certified maize seed within the project area. The net operational cost are estimated at US$0.15 M. Details are given in Annex 2.

Monitoring Program

3.43 Assurances were obtained from GONWFP and WAPDA that irrigation deliveries, drainage flows, water table depths, land reclamation progress and agricultural inputs, yields and production would be monitored and the results as well as the socio-economic aspects and benefits of the project evaluated throughout the project implementation period and until December 31, 1989. WAPDA agreed to produce a study based on an analysis of water table observation data to be used as a guide for future drainage design. A list of equipment to be provided for the program is given in Annex 1, Table 7.

3.44 Irrigation Deliveries. There is a great lack of useable data within Pakistan concerning canal conveyance efficiencies which can be used reliably in determining project diversion requirements and overall water use efficiencies for irrigation systems. Efficient water use or equitable water deliveries cannot be achieved unless canal flows in all sections of an irrigation delivery system can be determined with a fair degree of accuracy. A water measurement program would provide this data for the USC and LSC systems. Also, data would be obtained for use as a guide in planning or designing irrigation projects in other areas of Pakistan and for future canal improvement plans within the project area.

3.45 The water measurement program would be set up in both the USC and LSC irrigation systems to determine more accurately irrigation deliveries throughout each system and the areas or reaches of greatest seepage and/or operational loss. At locations where accurate flow measurements cannot be made under existing conditions, gauging stations with automatic recorders would be established. Where existing structures are suitable for flow measurement or can be modified at reasonable cost they would be rated and/or improved and automatic recorders installed where necessary.

3.46 Drainage Flows. A simple drainage flow measurement program would be established for the first few drains installed to determine the effectiveness of the subsurface drains, identify problems which occur and to obtain data that would be used in the design and construction of the remaining tile drains. Periodic flow measurements would be made at selected manholes and measurement weirs and automatic recorders would be installed at about five of these to monitor long-term flow conditions over several irrigation and cultivation seasons.

3.47 Water Table Depths. A grid or system of two-inch observation wells would be installed within the first year of project implementation over selected areas requiring subsurface drainage to monitor groundwater levels both before and after the installation of the drains. The data obtained would be used to determine the effectiveness of the buried drains in lowering water table levels, identify areas where additional or closer drain spacing would be required and to obtain design data for use in similar areas of Pakistan. - 26 -

The observation wells would be installed to depths of 10 ft at the mid-point between drains for 10 to 12 selected areas with drain spacings of 600 ft or less. Three equally-spaced wells would be placed between drains greater than 600 ft apart. A total of about 40-50 wells would be installed. All wells would be installed using hand augers or light duty power drill rigs, and borings would be logged for soil texture, structure, and chemical properties. The mid-point well at selected locations would be equipped with an automatic water level recorder. Other wells would be read bimonthly to determine water table levels.

3.48 Subsurface drainage conditions over the entire project area would be monitored through a permanent net of observation wells located about every 3 mi. During installation, the wells would be carefully logged as to soil characteristics. Water levels would be recorded monthly. Water quality samples would be taken shortly after the wells are installed to establish baseline data on groundwater chemistry. The wells would be pumped once a year and the "fresh" inflows tested for chemical properties. Noting the changing conditions of nearby crops and soils during this period would yield important data for monitoring and evaluating the effects of drainage and reclamation practices. The data gathered would be used to analyze:

(a) responses of the water table to increased water supplies in the areas where at present water table depths are over 5 ft. (Rising trends would indicate the need for future subsurface drain installation);

(b) the benefits of the drainage program in terms of increased production; and

The information would be used for planning similar projects in the future.

3.49 Land Reclamation. The progress and effectiveness of land reclamation undertaken by the project would be carefully monitored by the land reclamation unit set up specifically to direct the land reclamation program in the project area. The support facilities for the reclamation monitoring program would include the soils and water laboratory in Peshawar, expanded with project-furnished equipment, under the Central Monitoring Organization of WAPDA. Sufficient soils and water tests would be taken for each field during the reclamation process to determine when the land was fully reclaimed.

3.50 Agricultural Base Survey. An agricultural and socio-economic benchmark survey would be conducted over the entire Mardan area (670,000 ac) to be covered by the agricultural extension program within the first year of project implementation to ascertain current levels of production, farm incomes, income distribution and other socio-economic aspects. Thereafter, the survey would be made annually to evaluate the benefits of the project. Within the 210,000-ac project area, particular attention would be given to tailoring the survey to areas of the various civil works and their rate of execution, as a means of measuring benefits accruing to extension alone and those associated with particular civil works components of the project. The monitoring and evaluation work for these aspects would be done under the direction of the Faculty of Agriculture, University of Peshawar. - 27 -

3.51 Estimated costs of the monitoring programs are shown in the following tables. Equipments for each program are shown in Annex 1, Table 7, Section VII(b).

Program Cost- - US$'000

Water Measurement 200 Drainage & Water Table Observations 200 Land Reclamation 200 Agricultural Base Survey 100 Total 700

/a Exclusive of vehicle costs and internationally procured equipment and materials.

Water Supply, Demand and Quality

3.52 The project derives its irrigation water supply from the Swat River, which rises and flows entirely.-within the NWFP, and from a limited amount of groundwater pumped from small, localized groundwater development areas. The USC, which supplies 274,000 ac of land (75,000 ac of which is located in the project area) takes water directly from the Swat River at the Amandara headworks, and the LSC, which supplies a command area of 134,500 ac as well as the 10,500 ac Sholgara Canal command area, diverts from the Swat River at the Munda headworks, some 50 mi downstream. Also diverting from the Munda headworks, but on the opposite bank of the river, the Doaba Canal supplies a command area of 27,000 ac. The Swat River joins the Kabul River at Charsadda, about 17 mi below the Munda headworks. The Kabul River joins the Indus River about 35 mi further downstream. The entire flow of the Swat River is under the control and jurisdiction of the GONWFP, since it is classified as a provincial stream.

3.53 There is a surplus of water in the river at the diversion works even though a serious water shortage presently exists in the project area, since existing canal capacities are not sufficient to convey the quantity of water needed. Estimates of canal diversion requirements for the LSC command area and for the Sholgara and Doaba command areas (Annex 1, Table 9) on a monthly basis for the design cropping pattern in the LSC and the existing cropping pattern in the Sholgara & Doaba command areas, when compared to the historical record of the Swat River at the Munda headworks, show that an ample supply of water would be available during all but three months of the 21-year period of record (1956 to 1976) when negligible shortages (1 to 9%) would occur. Existing withdrawals are far less than the requirements shown. Comparisons of future diversion requirements, existing withdrawals and river discharge are shown in Table 10 and illustrated on Chart 1, Annex I.

3.54 Estimates of net irrigation requirements for the design cropping pattern (Annex 1, Charts 2 and 3) were made using the modified Penman method for determining evapotranspiration, taking into account effective rainfall and available soil moisture at the end of the growing period. Gross diversion requirements for the LSC were calculated using a canal conveyance efficiency of 64% (85% main canal and 75% for distributaries) and 70% farm irrigation - 28 - efficiency, for an overall project water use efficiency of about 45%. Esti- mates of potential future diversion requirements for the Sholgara and Doaba Canals used canal conveyance efficiencies of 75% and 70%, respectively, since these canals are shorter. The average annual diversion requirement for the LSC, excluding Sholgara, was estimated to be 730,000 ac-ft. Historical diversions for the LSC command area averaged 464,000 ac ft, or only 63% of project requirements. During May and June, the recorded diversions Pv^>oX only 46% of estimated requirements. An assurance was obtained from GONWIP that it would allocate to the LSC command area the full amount cf water required from the Swat River for project use, estimated to average 730,000 ac-ft annually, or an increase of 266,000 ac-ft (57%) over the existing withdrawal levels.

3.55 With the enlargement of the Benton Tunnel, an estimated 260 cusecs of additional water would be diverted from the Swat River to the USC command area during peak use periods. An assurance was obtained from the GONWFP that this additional water would be allocated to the USC command area and that the land reclamation program would have first allocation rights to this water until the lands were fully reclaimed.

3.56 Surface Water Quality. Based on the analysis of 204 water samples taken at Chakdara over a period of ten years, the quality of Swat River water diverted for irrigation is excellent. The waters of the Kalpani River, based on 125 samples collected over a six-year period, are somewhat poorer in quality but are still excellent for irrigation. On the basis of a few random samples collected from the main surface drains (Murdara, Hisara, Bandai, etc.), the salinity of the drainage water never reaches a level (1,100 ppm of total salts) where it would be unsuitable for irrigation.

3.57 Groundwater Quality. The average salt content of 39 deep and 23 shallow tubewells studied shows that most of the deeper groundwaters are of excellent quality; a few are questionable, but none are definitely bad. The water collected from 22 "dug wells" and a large number of shallow (6 to 13 ft deep) observation wells was somewhat poorer in quality, but in most areas still would be suitable for irrigation.

Technical Assistance

3.58 Consultants would be required at an early date to assist WAPDA in the preparation of specifications, designs, tender documents and the detailed drawings required for construction, as well as for construction supervision. The consultants also would assist in the preparation of the feasibility report for the remaining area (210,000 ac). Estimates of consultant requirements total about 35 man years. Terms of reference for this work are included in Annex 3; WAPDA intends to proceed as soon as possible with the engagement of consultants. The cost of the consultants is estimated to be about US$3.5 M, inclusive of travel and other expenses. The billing rate, which includes salary and overhead and unforeseen expenditures, is estimated at about US$8,500 per man month. A training program for Government staff in the consultant's home office and in other countries where specific training needs or programs are available would be provided to develop expertise and experience in the planning, design and execution of irrigation and drainage projects. The cost of the training program is estimated at about US$200,000. The appointment ,.f cnsultants would be a condition of credit effectiveness. - 29 -

3.59 In addition to the above technical assistance, the services of an agricultural extension and training specialist for 20 months and a sugar beet agronomist for 21 months would be provided to assist with the agricultural extension and research programs. Terms of reference for these positions are included in Annex 3. The costs of these specialists are estimated at about US$8,000 per man month, including travel and other expenses, for a total of about US$0.3 M.

Cost Estimates

3.60 Total costs of the project would amount to about US$150.0 M, including US$7.0 M import duties and taxes and US$28.7 M for price escalation. The foreign exchange cost would be about US$67.0 M or 45%. Costs were based on prices prevailing in mid-1978 and were updated to January 1979 price levels. The costs of civil works and on-farm improvements do not include the cost of depreciation of construction equipment since the construction equipment would be provided under the project. Subsurface drainage costs were based on bid abstracts for recent drainage contracts in Iraq and experience in the USA. WAPDA's costs for administration and engineering were estimated to be about 10% of construction costs. Physical contingency factors of 20% and 10% were applied to costs of civil works and on-farm improvements, respectively. Price contingencies are estimated to be about 24% of base costs in accordance with inflation rates of 7.5% during 1979 and 7% thereafter for the foreign cost of civil works and 8.5% during 1979 and 8% thereafter for local costs and 6.5% for equipment and services during 1979 and 6% thereafter. O&M costs of the irrigation and drainage system, to be provided under the project during the construction period and for two years thereafter, are estimated at US$2.7 M. Cost estimates are detailed in Annex 1, Table 11 and are summarized below: - 30 -

SUMMARYCOST ESTIMATE

Foreign Local Foreign Total Exchange …---- US$ Million------%

Land Acquisition & Crop Damage 7.4 0 7.4 0

Civil Works /a Benton Tunnel 0.7 0.1 0.8 13 Lower Swat Canal 9.7 3.3 13.0 25 Open Drainage 5.6 1.8 7.4 24 Subsurface Drainge 11.1 20.7 31.8 65 Road Improvements 1.5 0 1.5 0 Construction and O&M Camp 0.7 0.1 0.8 13

On-Farm Improvements /a Watercourse Remodeling 1.1 0 1.1 0 Land Reclamation 2.8 0.4 3.2 13 Land Leveling 1.2 0.9 2.1 43

Engineering, Supervision and Administration 7.3 0 7.3 0 Equipment and Vehicles 7.2 17.2 24.4 /b 70 Monitoring Programs 0.7 0 0.7 0 Technical Assistance Consultants 0.2 3.7 3.9 95 Training 0 0.2 0.2 100 Agricultural Development 1.3 0 1.3 0 Base Cost 58.5 48.4 106.9 45 Physical Contingencies 6.4 5.3 11.7 45 Price Escalation 15.4 13.3 28.7 46 O&M During Project Implementation 2.7 0 2.7 0 Total Project Cost 83.0 67.0 150.0 45

/a Not including the cost of equipment depreciation, since all equipment would be provided under the project. /b Without taxes and duties but with price escalation this becomes US$19.5 M.

Implementation Schedule

3.61 The project is scheduled for completion within six years, by June 1985 (Annex 1, Chart 4). The first year would be spent mainly in final design, subsurface drainage investigations, procurement of equipment and vehicles, preparation of tender documents for civil works and in organizing and training staff. The construction camp and O&M warehouses and repair shops would be constructed by late 1980. Construction of the new parallel LSC irrigation system and the rehabilitation and improvement work for the open - 31 - drains would commence in mid 1980 and would be completed in 1984 and 1983 respectively. The modifications to Benton Tunnel would be completed during three tunnel-closing periods of six weeks to two months each in January and February of 1981 to 1983. The installation of subsurface drains would begin early in 1981 and would be completed in 1985. Improvements to the rural road system would be completed in 1983. The watercourse improvement program would begin in 1981 and be completed in 1985. Land leveling would be completed in 1984. The land reclamation program would be initiated in 1981 and be completed by June 1985. Due to the time required to fully reclaim these lands, the leaching process may extend beyond 1985; however, all soil ammendments would have been applied and the necessary leveling and bunding work completed by June 1985. The monitoring programs would extend to 1989. Consultants would be engaged by mid 1979 to assist with design and supervision of the project. The bulk of the equipment would arrive in 1981, with delivery of some machines being delayed until 1982.

Financing

3.62 The proposed IDA credit of US$60 M, together with a grant of Cana- dian dollars 30 M (US$25 M equivalent) from Canada through the Canadian International Development Agency (CIDA), would finance 59% of total project costs, net of taxes and duties. This would cover the full foreign exchange costs of the project and approximately 24% of the local costs. An assurance was obtained from GOP that adequate and timely funds for project implementation would be provided and that budgetary allocations would be adjusted in line with the estimated financial requirements for the project. An estimated schedule of expenditures and the proposed allocation of the aid package for financing the project are shown in Annex 1, Tables 12 and 13. The remaining funds required for the project (US$65 M equivalent including taxes and duties) would be provided by GOP. A condition of credit effectiveness would be the prior or simultaneous effectiveness of the CIDA grant.

Procurement

3.63 Civil Works. The civil works would be procured as follows:

(a) ICB Contracts. The subsurface drains (US$31.8 M equivalent 1/), would be procured through international competitive bidding (ICB). In order to encourage the participation of local contractors, the tenders would be divided into five contracts of not less than US$5 M each and tenderers would be permitted to bid on one or more contracts. Local contractors would be entitled to a 7.5% preference. Tender documents would specify this preference.

1/ Base costs, net of physical and price contingencies and engineering and administration costs. - 32 -

(b) LCB Contracts. The modifications to the Benton Tunnel (US$0.8 M 17), remodeling of the LSC irrigation system (US$13.0 M 1/), rehabilitation and deepening of the open drainage system (US$7.4M 1/) and road improvements (US$1.5 M 1/) would not be suitable for ICB and would be provided through local competitive bidding (LCB) under normal Government procedures, which are acceptable to IDA. These works would be phased with ongoing canal operation activities and delivery schedules and with seasonal agricultural activities so as to minimize crop damage and disruptions to water deliveries. Due to the scattered and intermittent nature of these works, the contracts would tend to be rather small and highly localized.

(c) On-Farm Improvement Works. Watercourse remodeling (US$1.1 M 1/) would be carried out by the NWFP Irri- gation Department with farmer assistance. The necessary equipment, materials and technical assistance would be provided by the Government and farmers would furnish most of the labor requirements (paras 3.18-3.21). Land leveling (US$3.2 M) would be completed by WAPDA under contract or with its own forces using equipment provided under the project. The land reclamation program (US$2.1 M 1/) would be carried out by WAPDA through its reclamation unit.

3.64 Equipment and Vehicles (Annex 1, Table 7). Because of the need for co-financing, the equipment and vehicles for all works to be performed by contract would be provided under the project and US$12.5 M (including price escalation but net of taxes and duties) of the equipment would be allocated to Canada for field procurement. The remaining equipment (US$7.0 M including price escalation but net of taxes and duties) would be procured through ICB in accordance with IDA procurement guidelines. All contracts would specify the use of project furnished equipment and contractors would be required to take all necessary steps to properly operate and maintain the equipment during the period of its use. Ownership of the equipment would initially vest with WAPDA. Terms and conditions under which the equipment would be made available to contractors will be mutually agreed between WAPDA, CIDA and IDA. An estimated equipment and vehicle procurement schedule is presented in Annex 1, Chart 5.

Disbursements

3.65 Disbursements would be made for: (a) 100% of the foreign expenditures for directly imported project equipment, vehicles and spares; (b) 50% of the costs of imported equipment and spares procured locally and locally procured materials; (e) 100% of the ex-factory price of equipment manufactured locally; (d) 100% of expenditures for approved consultant services; (e) 100% of foreign expenditures for training; (f) 64% of civil works (which represent

1/ Base costs, net of physical and price contingencies and engineering and administration costs. - 33 -

100% of foreign costs and 33% of the local costs); and (g) 50% of the cost of on-farm improvements. The works to be financed by the IDA credit and the CIDA grant are shown in the proposed allocation of the aid package, Annex 1, Table 13. Disbursements for on-farm improvements would be made against certificates of expenditure. Supporting documents for these payments would not be submitted to IDA for review but would be retained by WAPDA and GONWFP and made available for inspection during the course of supervision missions. All other disbursements would be made against full documentation. It is expected that disbursements would be completed by June 1986, about one year after completion of the project.

Accounts and Audits

3.66 WAPDA would be subjected to normal Government control and auditing procedures which are considered satisfactory. Project accounts would be maintained separately by WAPDA and GONWFP in a readily identifiable form to enable them to be audited separately from the overall accounts by an independent external auditor on a timely basis. Assurances were obtained from GOP that:

(i) separate accounts would be established and maintained for project expenditures by WAPDA and other organizations responsible for implementing the project;

(ii) the accounts and financial statements would be audited annually by an independent auditor acceptable to IDA;

(iii) certified copies of audited accounts and the auditor's report would be submitted to IDA for review not later than six months after the end of each fiscal year; and

(iv) the audit report would include, inter alia, a statement that funds disbursed against statements of expenditure had been used for the purposes for which they were provided.

Environmental Effects of the Project

3.67 Malaria in Pakistan is not serious but has worsened in recent years. Within the project area, groundwater levels have risen significantly since irrigation was first initiated near the end of the last century and the lower lands without adequate drainage have become waterlogged. Standing water has developed in several areas, making an excellent mosquitoe breeding habitat. The project would effectively drain the marshy, waterlogged areas and generally lower groundwater levels throughout the project area, thus lessening the breeding grounds for mosquitoes. The abandoned or unproductive lands would be reclaimed, and the project would provide an adequate water supply for full, sustained crop production as well as for domestic uses. Payment would be made for crops damaged or foregone during construction of the tile drains and income levels would be raised significantly in the project area after project completion. The overall impact of the project on the environment and the social climate of the project area would be favorable. - 34 -

IV. ORGANIZATIONAND MANAGEMENT

4.01 WAPDA would be responsible for most aspects of project implementation, ranging from field investigations,planning and design to procurement and construction. Overall responsibilityfor implementationof project civil works would rest with a Project Steering Committee comprised of the Chairman, Member-Water,General Manager-Northand the Chief Engineer-Peshawarof WAPDA. A Project Director (WAPDA) of Chief Engineer rank, assisted by the Project Manager of the consultant team, would have direct responsibilityfor project management,under the direction of the Steering Committee. A project Coor- dination Committee,comprised of the Additional Chief Secretary, Planning and Development (Chairman),the Secretariesof Agriculture and Irrigation,NWFP, as members, and the Project Director (WAPDA) as member-secretaryof the Committee would coordinate the efforts of all agencies concerned. The establishment of the Steering Committee and the CoordinationCommittee would be a condition of credit effectiveness. A proposed staffing chart is presented in Annex I (Chart 6). Project managementresponsibilities would cover the following activities:

(a) Preparation of a Project Definite Plan Report and annual project implementationplans. Beginning on March 31, 1979 and not later than March 31 of each year thereafter, WAPDA will prepare and submit to GOP and IDA for review an annual implementationplan for each succeedingyear.

(b) Preparation of specificationand constructiondesigns, cost estimates,and tender documents for project works;

(d) Preparation and execution of a training program for professionalWAPDA staff assigned to the project; and

(e) Preparation of a feasibilityreport for rehabilitation and developmentworks in the remaining USC command area.

Civil Works

4.02 Planning. Preparation of the project Definite Plan Report and the feasibilityreport for the remainder of the SCARP Mardan area would include:

(a) Preparation and execution of a field data collectionprogram to provide the data necessary for preparation of the two reports;

(b) Formulation of the definite project plan and preparation of final designs and cost estimates; and

4.03 Design. The preparationof specificationdesigns and tender documents and constructiondrawings would include:

(a) Preparationof final layouts,designs and tender documents for remodeling or rehabilitatingexisting open drains and irrigation canals. Open drainage requirementswould include the design and layout of field drains in each irrigation outlet area. Irrigation system layout and design would provide for a new parallel system,where more economically and technicallyviable to do so, and would include design and layout of main canals, branches, distributariesand minors down to watercourses;

(b) Preparationof final design, layout and tender documents for subsurface (tile) drains; and

4.04 Construction. Constructionmanagement and supervision,contract administrationand initial operation of the project would include:

(a) Providing the necessary field surveys to accurately locate all proposed structures;

(b) Maintainingrecords of the progress of constructionand administeringthe terms of the various contracts;

(d) Operating the completed works for a period of two years to ensure the adequacy and successfulfunctioning of the completed works.

On-Farm Improvement

4.05 WatercourseRemodeling. The NWFP IrrigationDepartment would have responsibilityfor remodelingwatercourses in the project area. The watercourse rehabilitationwork would be conductedby teams consisting of one watercourseengineer, one agriculturistand an overseer,assisted by repre- sentativesof the farmers' group in each watercourse area. The agriculturist's task would be to motivate and organize farmers to contribute their labor for the work. The watercourse engineer would design and lay out the work and supervise the work together with the overseer. The teams would develop standardsand train the farmer groups in watercourse remodelingwork and in operation and maintenance of the completedworks. Masons and other artisans would be employed locallyas required, and some precast structureswould be made on contract. Each team could organize the rehabilitationof five watercourses a year or about 1,500 ac. For the total area of 143,000 ac proposed - 36 -

for watercourse improvement, a total of about 95 team years would be required, with a maximum of about 25 teams in a peak year. All farmers within each watercourse would be involved in the planning and execution of the work. Equipment and materials would be furnished under the project.

4.06 Watercourse Engineers are at present being trained at Peshawar University. Additional training would be provided by the Irrigation Depart- ment. The Overseer would have a diploma from the Agricultural Training Institute and special training from the Project Director's staff. The agri- culturalist would be an AA seconded from the Department of Agriculture.

4.07 Land Leveling. The USAID-assisted land leveling program currently in operation in Pakistan is carried out by the Department of Agriculture in each province. Inasmuch as the Department of Agriculture NWFP does not have the capability for operating or maintaining the large earth moving machines to be provided under the project, the land leveling program will be undertaken by WAPDA. WAPDA will schedule and control the work, provide equipment operators and maintain the equipment. Priority for land leveling will be given to lands in need of reclamation due to the time required to complete the reclamation process.

4.08 Land Reclamation. The land reclamation program would be the responsibility of WAPDA's Reclamation and Operations Unit headed by a WAPDA Senior Soil Scientist. Consultant assistance would be provided. The unit would include an agronomist, a farm-planning specialist and an agricultural engineer specializing in on-farm soils and water management, as well as by work crews involved in the reclamation work. A soils and water laboratory, supplied with the necessary supplies and equipment under the project, would be set up in Peshawar to provide the soils and water testing support required. WAPDA agreed to establish the reclamation Unit in the Peshawar/Mardan area by July 1, 1980, at which time the unit director would have been appointed and the field laboratory established, equipped and staffed. Two materials depots would be set up at locations convenient to the lands requiring reclamation. The soils and water laboratory staff would include one Research Officer, three Research Assistants and four laboratory Attendants. The staff should be able to analyze about 5,000 soils samples and 500 water samples per year. Equip- ment, vehicles and materials (including gypsum and zinc sulphate) required in the reclamation program would be provided under the project.

4.09 In order to provide information beneficial to future land reclamation work programs in Pakistan, it is essential that the reclamation procedure and the improvements in agricultural production capability achieved be fully documented during the implementation of the land reclamation work. WAPDA agreed to complete studies on the accomplishments of its reclamation unit and to furnish reports to GOP and IDA by June 30, 1985.

Agricultural Supporting Services

4.10 Agricultural Research. The research program would be adapted to meet the needs of the extension service in solving specific field problems in the project area. Senior Subject Matter Specialists (SSMSs) based at the - 37 - research stations at Tarnab, Pir Sabak and Mardan would support the agricultural extension Subject Matter Specialist (SMS) at Mardan. The staff at the Tarnab research station would provide support in matters relating to wheat, tobacco, sugarcane and beet agronomy. The staff at Pir Sabak would provide support for maize agronomy and pest control. Since there is no sugar beet specialist in Pakistan, and the economic importance of the crop is rapidly increasing, a sugar beet agronomist would be provided under the project to train extension service SMSs in better sugar beet cultivation practices.

4.11 Maize Seed Multiplication and Distribution System. The production and marketing of certified maize seed would be controlled by the province's Agricultural Development Authority (ADA), which is the GONWFP marketing agency for agricultural inputs in the project area. The pre-basic and basic seed would be produced at the Maize and Millet Research Station (MMRS) in Pir Sabak. The Certified Seed would be produced on private lands by selected contract growers under the direction of a Product Development Officer of ADA, who would organize the contracting of seed producers. The Federal Seed Cer- tification Agency (SCA) would inspect the contract growers' fields before planting and during the growing period, and would certify the seed before it could be sold as certified seed. The seed processing plant would be located at MMRS in Pir Sabak. The maize seed would be processed, shelled and stored at the station. An assurance was obtained from GOP that adequate quantities of certified seeds would be made available for sale to farmers in the project area upon completion of each portion of the project.

Monitoring and Evaluation

4.12 WAPDA would have overall responsibility for programs to monitor irrigation deliveries, drainage flows, water table depths, reclamation progress and agricultural inputs, yields and production in the project area. Works under the program would be undertaken and administered by other agencies as follows:

(a) The water measurement program to determine irrigation deliveries and losses would be the responsibility of the Irrigation Department, NWFP. Structure modifications would be made and/or new gauging stations established to accurately determine flows in the canals. Stream gauging equipment, automatic water level recorders, materials and transport vehicles would be provided under the project.

(b) The drainage flow measurement program would be undertaken by WAPDA to determine designs for and the effectiveness of the project drains. This program would be turned over to the Irrigation Department, NWFP after project completion to monitor selected drains on a continuous basis.

of subsurface drains. This program also would be turned over to the Irrigation Department after project implementation for continued monitoring of groundwater levels in selected areas. The drilling equipment, materials and transport vehicles required would be provided under the project.

(d) Land reclamation progress would be monitored and evaluated by WAPDA's project Reclamation Unit. Each field requiring reclamation would be tested intially to determine the soil amendments needed, and a continuous monitoring of reclamation progress would be made during the reclamation process.

(e) Monitoring and evaluation of socio-economic aspects in the project area and project agricultural benefits would be undertaken by the Faculty of Agriculture of the University of Peshawar. Their task would be to conduct a benchmark survey of the entire agricultural area of the three tehsils (670,000 ac) to ascertain current conditions and levels of inputs and production. They would repeat the survey annually to measure the benefits resulting from the execution of drainage and irrigation works. Since the area over which civil works would be carried out under the project is only about one-third (210,000 ac) of the total area covered by the extension program, a measure of the benefits due to extension alone as well as those due to civil works combined with extension would be obtained. Monitoring and evaluation procedures and techniques would be based on Bank Working Paper No. 272, "A System of Monitoring and Evaluating Agricultural Projects".

Agricultural Extension

4.13 Agricultural extension would remain under the control of the provincial Department of Agriculture. Consequently, the Director of Agricultural Extension (DA) would retain overall charge. A Deputy DA (DDA) would be posted to Mardan to head up the service. He would report to the Director of Agri- culture, Extension and Soil Conservation Wing (DA Extension) and would maintain a close liaison with the SCARP Mardan Project Director. Each of the project tehsils would be headed by an EADA under the direction of the DDA. The EADA would have 7 or 8 AAs and 50 to 60 FAs to administer and supervise. Crop recorders would report to a Statistical Officer attached to the DDA. The SMS team also would work out of the DDA's office. The SSMSs stationed at the three main research stations would be supervised in their extension duties by the DDA.

Operation and Maintenance

4.14 General. WAPDA would be responsible for operating and maintaining the constructed works during the project implementation period and for the first two years after completion of the project to ensure that the works - 39 -

function as designed and to establish adequate operational and monitoring procedures. Funds would be included under the project for this work. Follow- ing formal acceptance by WAPDA, all equipment and the completed irrigation and drainge works, including tile drains, would be handed over to the Irrigation Department, NWFP, for continued O&M. The agricultural extension program would be the responsibility of the Agricultural Department, NWFP. The O&A of the project-constructed and improved rural roads, with the exception of roads along the project canals which are the responsibility of the Irrigation Department, would become the responsibility of the Provincial Public Works Department. The O&M of the existing LSC and USC irrigation projects presently rests with the Northern Irrigation Circle, Office of Chief Engineer, Irrigation Department, and would so continue after completion of project irrigation improvements and drainage works (Annex 1, Chart 8). The Mardan Office, which operates and maintains the LSC irrigation system, would be strengthened by the addition of a Drainage Division and a Mechanical Division, in addition to the present Irrigation Division, to handle the increased O&M requirements of the drainage network and the project-supplied O&M equipment. The newly established Mardan- West Sub-division would be responsible for drainage O&M requirements in the area lying west of the Kalpani basin (principally the LSC command area) and a proposed future Mardan-East Sub-division for requirements east of Kalpani River. The O&M equipment provided under the project would be operated and maintained by the Mechanical Division, which would supply equipment and operators for maintaining both the irrigation and drainage works.

4.15 Main System. The standard of O&M of the existing irrigation system down to the outlet structures is inadequate, partly due to inadequate super- visory control, but primarily because of insufficient funding and a lack of equipment to perform maintenance work during the short (three to four weeks) canal closure period in January. The main problems are siltation of canals, erosion of banks, inoperable control structures, scour downstream of structures and deteriorated roadways. The open drainage system simply suffers from benign neglect, since maintenance work has rarely been done on the existing open drains, and stream meanders, channel siltation and extreme scouring have developed.

4.16 To correct these deficiencies, funding levels should be adequate for routine maintenance of the entire system. The present budgetary allocation, which averaged Rs 1.7/ac for the drainage system and Rs 6.6/ac for the irrigation system in 1976, is totally inadequate. The annual cost of adequate O&M for both irrigation and drainage has been tentatively estimated at Rs 50/ac at current prices, including the operational costs of project- furnished equipment. An assurance was obtained from GONWFP that it would operate and maintain the equipment and facilities provided under the project in accordance with sound engineering standards and agricultural practices and that adequate funds and staff would be provided annually for this work.

4.17 On-Farm Works. O&M of watercourses and farm drains below the irrigation outlet is, and would continue to be, the joint responsibility of all farmers in each outlet service unit. This work presently is done on an ad hoc basis by individual farmers and, consequently, complete maintenance of the system is not undertaken. The watercourses generally are in a bad state of repair and many would require complete rebuilding to be - 40 - effective. Water losses below the irrigation outlet are estimated to be as as high as 40% or more.

4.18 Before each watercourse is improved, the NWFP Irrigation Department, with the assistance of the agricultural extension service, would organize a farmer group which would appoint a common irrigator, who would be responsible for operating the watercourses and for ensuring that maintenance is carried out by all water users or by hired labor. Routine maintenance should be carried out twice a year, before each crop season. The cost of O&M of the on-farm works is tentatively estimated at Rs 10/ac/yr. This amount would be assessed, in cash or in kind, by the farmer groups on their members to pay the wages of the common irrigator and for hired labor which may be employed. An assurance was obtained from GONWFP that it would establish a farmer group for each watercourse which would be responsible for watercourse remodeling work and for the maintenance of the watercourses.

V. PRODUCTION, PRICES, FARM INCOMES AND COST RECOVERY

Production

5.01 Present cropping intensities in the cropped area have reached 175% in the LSC command area and 173% in the USC command area. With the project, cropping intensities are expected to increase only slightly, to 180% in the LSC command area and 175% in the USC command area. About 25,000 ac (12% of the project area) of waterlogged or salt-affected land would be reclaimed and essentially brought from zero to full production. However, most of the increased production from the project would result from higher yields of the major crops over the entire project area. Crop yield surveys conducted in the present high water table areas indicated that significant yield increases would result from the increased irrigation water supply, improved drainage conditions and improved agricultural services provided under the project. Since a full water supply would be provided to the LSC command area, appre- ciable yield increases are expected in this area. However, since serious water shortages would still exist in the USC command area, only moderate yield increases are anticipated in this area. At full development, total production from the 210,000 ac project area is estimated at about 160,000 metric tons of grain and 1.6 M metric tons of sugarcane and beets. The present and future cropping patterns and yields for the five project sub-areas are presented in Annex 1, Tables 5 and 6. Total production is given in Table 17.

5.02 Wheat in winter (rabi) and maize in summer (kharif) are the main food crops and the crops with the highest cropping intensities (32% and 41% for wheat in the LSC and USC command areas, respectively, and 32% and 39% for maize in these areas). The wheat yield is expected to increase from 0.6 metric tons/ac to about 1.05 metric tons/ac and total production from 37,000 metric tons to 76,000 metric tons. Proper fertilization and adequate plant population would be the main cultural changes introduced. The present low maize yield of 0.6 metric tons/ac, due principally to thinning for fodder, would be raised to about 1.2 metric tons/ac, and total production would increase from 39,000 metric tons to about 87,000 metric tons. - 41 -

5.03 Sugarcane and sugar beets are the major cash crops. The sugarcane yield is expected to increase from 12.5 metric tons/ac to about 20.5 metric tons/ac and total production from 763,000 metric tons to 1,390,000 metric tons. The adoption of better planting techniques, improved selection of cuttings, use of balanced fertilizers and effective plant protection measures would be the main cultural changes. Sugar beet yield would increase from 11 metric tons/ac to about 16 metric tons/ac and total production from 127,000 metric tons to about 230,000 metric tons. Farmers would be encouraged to stop pick- ing leaves for fodder and interplanting with maize and sugarcane, which in- hibit the normal growth of sugar beets.

5.04 Tobacco is and still would be the most profitable crop. A slight increase in cropping intensity would likely occur but further expansion would depend on whether local consumption and export demand increase. The average yield is expected to increase from 0.5 metric ton/ac to about 0.65 metric ton/ac and total production from 9,000 metric tons to about 14,000 metric tons. The tobacco companies would continue handling improvements in production work.

5.05 The switch from fodder/maize cultivation to pure fodder, together with the introduction of high yielding varieties and improved cultural techniques, would increase the yield on kharif fodder from 7.7 metric tons/ac to about 12.5 metric tons/ac. The total production would raise from 66,000 metric tons to about 170,000 metric tons. This would alleviate the present kharif fodder shortage in the project area. A yield increase from 12.5 metric tons/ac to about 18.5 metric tons/ac is also expected for the rabi fodder crop (Berseem). The total production would increase from 190,000 metric tons to about 270,000 metric tons.

5.06 The climate and soils of the project area are ideal for growing fruit trees such as citrus, pears, peaches, apricots, plums and persimmon, as attested by a long history of fruit production before rising water table levels destroyed many of the orchards. With improved drainage, a full water supply and improved agricultural inputs and services, the average fruit yield would raise from 3.4 metric tons/ac to about 5.5 metric tons/ac, and cropping intensities would increase from 2% to 4% in LSC and from 1% to 2% in USC command areas. Total production would rise from 10,000 metric tons to about 38,000 metric tons.

Financial Prices

5.07 Farm inputs and outputs were evaluated at 1978 farm gate prices and projected to 1985 farm gate prices expressed in December 1978 constant currency values. Given GOP's present intention to use prices as an incentive for production, it is expected that GOP's agriculture price policy would tend to maintain (or improve) the present agricultural input-output ratio and maintain (or diminish) the present domestic-world price differential.

5.08 In projecting the financial farm gate prices, it is assumed that the July 1978 ratio of domestic to world prices for traded commodities (including inputs) will be maintained and that untraded crop prices will - 42 - move in parallel. Wage rates for human labor and animal power, in constant terms, would be as present. Annex 1, Table 16 shows the present and future prices used in the farm budgets.

Farm Incomes

5.09 The farm budget shows that farm income would increase considerably as a result of the project. Six representative farm budget models have been developed according to farm size distribution and project sub-area; two models of 2.0 ac representing the average size of farms less than 5 ac (61% of the farmers owning 23% of the area), two of 7.5 ac representing farm sizes from 5 to 12.5 ac (30% of the farmers owning 42% of the land), and two of 21.5 ac representing farms larger than 12.5 ac (9% of the farmers owning 35% of the land). Three of these models, one of each size, represent the LSC command area and the remaining three represent the USC command area. Cropping patterns and intensities differ by canal command but are the same for each size of farm. At present, in both canal commands, about 12% of the farm area is abandoned. If the abandoned land is taken into account, the cropping intensity over the whole farm area is 156% for the LSC command area and 154% for the USC command area; if the abandoned land is ignored, present cropping intensities are 175% and 173%, respectively (para 5.01). With the project, the cropping intensities are expected to increase as the abandoned lands become fully productive. Present and future farm cropping intensities and yields are shown in Annex 1, Tables 17 and 18.

5.10 The number of family members and family workers varies with farm size. Estimates for the 2.0 ac farm size are a family size of about 6.5 persons per farm and about 1.8 family workers; for the 7.5 ac farm, a family size of about 7.3 persons and 2.5 family workers; and for the 21.5 ac farm, a family size of about 10.7 and 3.0 family workers. 1/ The future farm family labor force was projected at 3% annual growth rate, assuming that 85% of the population growth would remain on the farm and the remaining 15% would migrate elsewhere. 2/ In the 2 and 7.5 ac farm models, farm family labor is sufficient for all field work at present and in the future, without and with the project. In the 21.5 ac farm model, without the project only about 6% of the labor requirement would be hired but with the project nearly 22% of the labor requirement would be hired labor.

5.11 For the farm budget analysis, non-farm income was derived by calculating surplus/deficit labor by farm size and by month, based on the present and future labor supply and demand. Deficit labor in one farm was assumed to be provided, when possible, by farms with surplus labor, at the market wage rate. Farm budgets, presented in Annex 1, Tables 19 and 20, show that with the project farm income will experience a dramatic increase, especially for farmers operating less than 5 ac. Estimated net farm incomes, after deducting household subsistence food requirements, are shown below:

1/ Based on the 1972 Agricultural Census.

2/ Based on information given in 1971/72 and 1974/75 Labor Force Survey. - 43 -

Net Farm Income Future Without Future with Farm Models Farm Size Present Project Project ac Rs Rs Rs

Lower Swat:

Farm I 2.0 825 155 3,755 Farm II 7.5 5,465 5,105 17,665 Farm III 21.5 15,235 17,465 50,205

Upper Swat:

Farm IV 2.0 1,310 955 2,480 Farm V 7.5 7,220 8,070 12,850 Farm VI 21.5 20,375 25,995 37,205

5.12 Without the project, net farm income of the 2-ac farms and of the 7.5-ac farm in the USC command area are estimated to be lower than at present, as their incremental subsistence food requirement needs due to population increase are estimated to be higher than their incremental total farm income. However, without the project net farm income of the 21.5 ac farms and of the 7.5-ac farm in the USC command area are estimated to be higher than at present. For these farmers, incremental subsistence food requirements are estimated to be lower than incremental total income.

Cost Recovery

5.13 Direct Recovery. Construction and O&M costs of irrigation and drainage projects in Pakistan are partially effected through Provincial water charges. Water charges vary between crops and are an insignificant proportion of the value of crops. Present water rates for the main crops in the project area are:

Crops Rs/ac

Sugarcane 41 Sugar beets, vegetable and orchard 26 Tobacco 21 Wheat, barley and maize 12 Gram and pulses 10

5.14 Based on present water rates and cropping patterns, water charges average Rs 25/ac in the LSC command area and Rs 23/ac in the USC command area. With the present rates and with future project cropping patterns, water charges would average about Rs 33/ac in the LSC command area and Rs 27/ac in the USC command area. As the project is expected to be implemented in six years and benefits of the project would not be significant until project completion, the annuity required to recover the full project investment and O&M cost at 10% discount rate, assuming recoveries to run from year 7 to year 30, - 44 - would amount to approximately Rs 157 M/yr. With the present level of water charges, NWFP would recover about Rs 6.5 M, or about 50% of O&M costs.

5.15 Therefore there is a pressing need to increase taxation in Pakistan not only to better maintain and improve existing infrastructure and services but also to provide funds to develop new infrastructure (such as irrigation and drainage systems). Water charges are the most important provincial revenue for carrying out irrigation projects. However, the appropriate level and structure of water charges cannot be treated satisfactorily on a project specific basis, since the irrigation and drainage system is highly integrated and interdependent between areas and also because any examination of water charges must take into account other agricultural taxes.

5.16 Under the ongoing IDA-supported SCARP VI Project, Cr. 754-PAK, GOP agreed to carry out and furnish to IDA for discussion by September 30, 1979, a study on Agricultural Pricing and Water Charges reviewing the following elements: (a) the costs of effective O&M and the extent to which these should be met by irrigation water users through direct water charges; (b) the extent to which GOP should capture part of the increases in net benefits generated by new investments in irrigation for funding future investment in agriculture and elsewhere and to what extent this should be through direct water charges; and (c) the appropriateness of overall agricultural taxation and the appropriateness of the share contributed by direct water charges.

5.17 Without prejudging the results of the study, the farm budget analysis shows that in the project area a progressive increase in water charges appears to be feasible and desirable. For the farm budget analysis, it was assumed that in the future water charges would be increased uniformly to about Rs 140/ac. This water charge level, together with other agricultural taxes, would allow recovery of the full O&M cost plus 45% of the investment cost and appears to be a feasible rate. However, the water charges to be assessed will be determined after completion of the agricultural pricing and water charges study (para 5.16). GOP and GONWFP agreed that by July 1, 1981, revisions would be made to the structure and level of water charges taking into account the conclusions of the study and the farmers' capacity to pay, and that the level of water charges in the province would be raised in three stages not later than July 1, 1981, July 1, 1986 and July 1, 1991 so that by July 1, 1991 water charges in the NWFP would be sufficient to recover the full cost of O&M plus a reasonable portion of the investment cost of irrigation and drainage facilities in NWFP. GONWFP further agreed to collect water charges from owners of land in the project area, within one year after completion of project works, at the maximum permissible rate under prevailing laws and legislation.

5.18 Indirect Recovery. Agricultural income tax was introduced at the beginning of 1978 but is yet to be implemented. Based on the personal income tax rate and the permitted deduction prevailing in Pakistan, the incremental agricultural tax due to the project is estimated at about Rs 5.5 M/yr at full development. It is important to note that without the project and with the present deductions, none of the farmers would reach the taxable income level; with the project, farmers with more than 12.5 ac would pay about 5% of the - 45 - project rent as agriculturalincome tax if this tax is to be implementedon a scale similar to the personal income tax.

5.19 An additional agriculturaltax important to cost recovery in the project area is the excise tax on sugar, which at present is Rs 50/md of sugar produced. It is estimated that at full development the additional sugar tax revenue would be Rs 33.3 M/yr. Also, the sugarcanedevelopment cess, which is a tax on sugarcane bought by the sugar mills at a rate of 12 paisa/md of cane (6 paisa from growers and 6 paisa from sugar mills), would allow the Government to recover an additional amount of about Rs 0.8 M/yr. Quite important also is the excise tax on tobacco used by the tobacco companies; tax rates vary from Rs 1/lb to Rs 0.6/lb by type of tobacco and by mode of consumption. It is estimated that at full development the additional tobacco tax revenue due to the project would be about Rs 7.9 M/yr. Indirect annual cost recovery due to these taxes would amount to Rs 47.5 M/yr, or about 30% of the total annual project cost, which should be taken into account in fixing the water charge rate.

Project Rent

5.20 Project rent is the net incrementalincome after allowance for the risk of crop production,the necessary rewards from family labor and entre- preneurship. Project rent has been calculated for the six farm models and, as shown in Annex 1, Tables 19 and 20, varies from Rs 1,600/ac in the case of the LSC 2 ac farm to Rs 550/ac in the case of the USC 21.5 ac farm. To recover 50% of the annual project cost (full O&M cost and about 45% of the project investment cost), taking into account the indirect cost recovered, future water charges would need to be increased to an average of Rs 140/ac. The farm budget analysis shows that this level of water charges would be feasible (an average of about 9% of the project rent would be paid as a water charge). The recovery index would vary from about 8% in the case of the LSC 2 ac farm to about 18% in the case of the USC 21.5 ac farm.

VI. BENEFITS,JUSTIFICATION AND RISKS

General

6.01 The various project components constitute an integratedinvestment unit, thus the benefits have been developed for the project area as a whole. However, for assessing the project impact, the project area has been divided into five sub-areasbased on present land conditions,proposed developmentand expected production response to investments(para 3.02).

6.02 The project area is significantlyaffected by high water table and saline-alkalinityconditions and about 12% of the CCA has been abandonedor is only marginally productive. Present water availabilityduring peak water- use months is only about half of the present requirementand the shortage of water directly affects crop yields as well as the quality of the land. Al- though most farmers presentlyuse cash inputs, cultural practicesgenerally - 46 - are deficient and there is an enormous gap between the productivity of progressive and average farmers. With the project, the cropped area would be increased by putting into full production the abandoned or marginally productive lands. Yields would be increased overall by providing adequate drainage, improving the irrigation system, increasing the irrigation water supply, providing land leveling, watercourse and field drain improvements, and by improving and better organizing the agricultural extension system. As a consequence, income from farms would increase considerably.

6.03 The project also would assist GOP in achieving two of its priority development objectives--increased foodgrain production and reduced unemploy- ment. At full development annual production increases are estimated at 90,000 metric tons of food grains, 740,000 metric tons of sugarcane and beet (about 66,000 metric tons of equivalent sugar), 5,400 metric tons of tobacco, 28,000 metric tons of fruit and 14,500 metric tons of vegetables. The incremental value added at full development would be about Rs 425 M/yr.

Employment and Income Effects

6.04 Overall direct employment effects of the project at full development would be an increase in on-farm employment of about 3.1 M man days per year. The value added in agriculture plus the increase in input requirements would generate additional employment and additional income to the non-farm sectors. Lack of reliable data on present non-farm employment in the project area precludes accurately projecting future non-farm employment effects.

6.05 The per capita income in Pakistan in 1977 was about US$190, while that of the project area was about US$73, about 38% of the national average. About 55% of the farm population (the farmers with holdings less than 5 ac) have a per capita income of only about US$35/yr, less than 20% of the national average; another 20% (LSC farmers with holdings more than 5 ac but less than 12.5 ac) have a per capita income of about US$85. These farmers, whose per capita income is lower than the poverty income level (estimated at about US$90 for Pakistan), operate about 50% of the project area. With the project, farm incomes are expected to double. Average per capita income within the project area would be about US$135. It is estimated that about 60% of the direct project benefits would accrue fairly evenly to farmers with a present per capita income below the poverty income level (US$90 per annum).

Basic Assumptions for Economic Analysis

6.06 The components of the project are interdependent and benefits from any component depends on whether and to what extent the other components are implemented. Therefore they are evaluated as a package. Following the present trends in the area, it was assumed that without the project present yields would experience a slight decline in the shallower water table areas (0 to 3 ft) and that the extent of the abandoned or marginal productive land and the production in the rest of the project area would not change. With the project, in the LSC command area yields are expected to increase to the maximum level projected for the project area. In the USC command area, yields would be somewhat lower. Although more water would be supplied to the USC - 47 - command area through the Benton Tunnel expansion, this area still would have a water shortage of about 35% for about five months. The present shortage during these five months is about 50%.

6.07 For the economic analysis, the following assumptions were made:

(a) Standard Conversion Factor (SCF). To reflect the prevailing regime of import/export taxes and duties and tariffs and trade restrictions in Pakistan, a SCF of 0.85 1/ was used to adjust the domestic cost component of various inputs and outputs.

(b) Economic Prices of Agricultural Outputs and Inputs. Economic prices of all of the major traded agricultural products and inputs such as wheat, maize, sugarcane and beets, tobacco, oilseed, rice and fertilizer were derived from the Bank's projections of 1985 world market prices expressed in 1978 currency values. Adjustments were made to reflect the historical relationship between world market prices and actual CIF or FOB prices for Pakistan plus handling and processing costs. Border prices were converted into Rs at the official exchange rate and the domestic cost components (i.e. local transportation and market charges) were adjusted by the SCF. Economic prices for crops which are not traded were based on local financial prices adjusted by the ratio of economic prices to financial prices for traded crops. Finally, the economic price of bullocks was based on local financial prices adjusted by the SCF. (Annex 1, Tables 16 and 21).

(c) Shadow Wage Rate for Farm Labor. In view of the underemploy- ment situation prevailing in the project area and the seasonal nature of much of the employment, market wage rates have been adjusted to reflect season-specific opportunity costs. Economic farm labor costs were estimated using monthly shadow rates reflecting different opportunity costs associated with various segments of the labor force and slack and peak periods during the year. It is assumed that the marginal opportunity cost of farm labor can be repre- sented by an "S-shaped" curve. The marginal opportunity cost of farm labor is positive at all levels of demand, and increases when more labor is absorbed into fieldwork. The estimated average shadow wage rate is Rs 5.3 at present and would be about Rs 6.6 with the project (Annex 1, Table 24). The average wage rate in the project area is about Rs 9.5.

(d) Economic Project Cost. The project includes irrigation, drainage and road improvements, land leveling, watercourse

1/ Shadow pricing and economic analysis in Pakistan by Lyn Squire, Tan M.D. Little and Mete Durdag. - 48 -

improvements,land reclamation,monitoring programs, improvement of the extension service system, and the provision of equipment and vehicles for these works. The work would be carried out using a mixture of equipment and skilled and unskilled labor. For the econmic analysis, the project financial cost was adjusted using the following different conversion factors (Annex 1, Table 23);

(i) Traded Component. A conversion factors of one was used for this component.

(ii) Non-traded Component. A conversion factor of 0.85 was used to calculate the economic cost of this component.

(iii) UnskilledLabor. A conversion factor of 0.7 was used to calculate the economic cost of this component.

(iv) Land Acquisition. The estimated opportunity cost of this component is based on the per ac economic value of production under the "Future Without" condition.

Economic Rate of Return

6.08 The total economic project cost is Rs 1,045 M. It includes admin- istrativeoverheads and physical contingenciesbut excludes both price escalation and taxes and duties. The total economic cost also includes about Rs 10.9 M to be invested by farmers in watercourse remodeling and about Rs 20.8 M in land levelling. The annual incrementaleconomic cost of O&M is estimated at Rs 6.2 M, of which about Rs 1.2 M is the O&M cost of the water courses carried out at the farmers expense (Annex 1, Table 24). Project benefits at full developmentare estimated at Rs 390 M per annum. The project would be implementedin six years and full developmentwould be reached in about 15 years (Annex 1, Table 25). The economic rate of return would be about 18%.

SensitivityAnalysis and Project Risk

6.09 The project would entail no special risks other than those normally associatedwith irrigationprojects. The projectedyields are conservative. The project investigationsshowed that yields presently are significantly affected by waterloggingand saline-alkalineconditions in the lower areas of the project as well as by water shortages during certain periods over the whole project area. The project would correct or improve these problems, hence risk to productionwould be minimized. The sensitivityanalysis illustratesthe risk associatedwith other factors: - 49 -

(a) Basic case 18% (b) Assuming the SCF = 1.0 17% (c) Construction cost increased by 15% 17% (d) Benefits decreased by 15% 15% (e) Construction delayed by 2 years and full development reached in twenty years 16% (f) Combination of c and e 15% (g) Combination of c, d and e 13% (h) Shadow wage rate equal to the market wage rate 17%

VII. AGREEMENTS REACHED AND RECOMMENDATIONS

7.01 Assurances were obtained from GOP that:

(a) adequate and timely funds for project implementation would be provided (para 3.62);

(b) separate accounts would be established and maintained for project expenditures by WAPDA and other organizations responsible for implementing the project (para 3.66);

(c) the accounts and financial statements would be audited annually by an independent auditor acceptable to IDA (para 3.66);

(d) certified copies of audited accounts and the auditor's report would be submitted to IDA for review not later than six months after the end of each fiscal year (para 3.66);

(e) the audit report would be of such scope and in such detail as IDA shall request (para 3.66);

(f) adequate quantities of certified seeds would be made available for sale to farmers in the project area upon completion of each portion of the project (para 4.11); and

(g) it would inform IDA of arrangements for the construction and operation of the new PVC pipe plant to be provided under the project and that a detailed feasibility study for the plant would be submitted by March 31, 1979 (para 3.36).

7.02 Assurances were obtained from GOP and GONWFP that by July 1, 1981, revisions would be made to the structure and level of water charges taking into account the conclusions of the study of agriculture pricing and water charges being conducted by GOP and the farmers capacity to pay, and that the level of water charges in the province would be raised in three stages not - 50 - later than July 1, 1981, July 1, 1986 and July 1, 1991 so that by July 1, 1991 water charges in the NWFP would be sufficient to recover the full cost of O&M plus a reasonable portion of the investment cost of the irrigation and drainage facilities in NWFP (para 5.17).

7.03 Assurances were obtained from GONWFP that:

(a) it would introduce the T&V agricultural extension system in the project area by June 30, 1980 in accordance with arrangements satisfactory to IDA and thereafter maintain and continue to operate the system efficiently (para 3.40);

(b) all staff directly involved in agricultural extension would be released from all non-extension activities, including the sale and application of pesticides (para 3.40);

(c) beginning not later than June 30, 1980, it would provide vehicles to agricultural extension workers in the project area in accordance with arrangements satisfactory to IDA (para 3.40);

(d) it would compensate extension workers in the project area for expenditures incurred during duty travel in accordance with prevailing NWFP rules and regulations (para 3.40);

(e) it would allocate to the LSC command area the full amount of water required from the Swat River for project use, estimated to average 730,000 ac-ft annually, or an increase of about 266,000 ac-ft (57%) over existing withdrawal levels (para 3.54);

(f) the additional 260 cusecs of water made possible by increasing the capacity of Benton Tunnel would be allocated to the USC command area and that land reclamation would have first rights to this water until the lands were fully reclaimed (para 3.55);

(g) it would operate and maintain the equipment and facilities provided under the project in accordance with sound engineering and agricultural practices and that adequate funds and staff would be provided annually for this work (para 4.16);

(h) it would establish for each watercourse, a farmers group which would be responsible for watercourse remodelling work and for the maintenance of the watercourses (para 4.18); and

(i) it would collect water charges from owners of land in the project area, within one year after completion of project works, at the maximum permissible rate under prevailing laws and legislation (para 5.17). - 51 -

7.04 Assurances were obtained from GONWFPand WAPDA that:

(a) irrigation deliveries, drainage flows, water table depths, land reclamation progress and agricultural inputs, yields and production would be monitored and the results as well as the socio-economic aspects and benefits of the project evaluated throughout the project implementation period and until December 31, 1989 (para 3.43).

7.05 Assurances were obtained from WAPDA that:

(a) prior to improving any portion of the rural market road network, it would furnish to IDA for review a survey of road requirements and detailed designs for the proposed road improvement work under the project (para 3.17);

(b) it would discuss with IDA by March 31, 1981 the prices to be paid by farmers for the soil amendments applied during the land reclamation process and any subsidy for its use (para 3.24);

(c) it would provide a study based on an analysis of water table observation data to be used as a guide for future drainage design (para 3.43);

(d) it would complete a study on the accomplishments of its Reclamation Unit during the land reclamation process and that it would provide reports documenting this study to GOP and IDA by June 30, 1985 for guidance in future reclamation programs (para 4.09); and

(e) it would establish a land reclamation unit in or near the project area by July 1, 1980, at which time the unit director would have been appointed and the field laboratory established, equipped and staffed (para 4.08).

7.06 Conditions of credit effectiveness would be:

(a) the appointment of consultants to assist WAPDA in the preparation of specifications, designs, tender documents and the detailed drawings required for construction, as well as for construction supervision (para 3.58);

(b) the establishment of a Steering Committee to be responsible for project implementation and a Coordination Committee to coordinate the efforts of all agencies concerned (para 4.01); and

(c) the fulfillment by GOP, GONWFP and WAPDA, of all conditions of effectiveness of the grant from Canada (para 3.62). - 52 -

7.07 With the above assurances and conditions,the the project would be suitable for an IDA credit of US$60 M on standard IDA terms. The borrower would be the Islamic Republic of Pakistan.

January 11, 1979 Latitude: 340 30'N

L,.JL itLLuI&I. iJ) 7 U -iir Elevation 366M PAKISTAN SCARP MARDAN PROJECT Climatological Factors Relating to Estimating Crop Water Requirements

(at Mardan)

Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

A. Measured Values 1. Temperature (°C) Maximum Average 16.7 21.7 23.3 28.9 35.0 39.4 36.7 34.4 33.3 30.0 24.4 18.9 Minimum Average 0.0 3.3 11.7 13.9 17.8 22.2 25.0 24.4 20.6 12.8 4.4 1.1

2. Solar Radiation Sunshine (hrs/day) 8.0 8.7 9.5 10.6 12.2 12.8 10.4 10.3 10.8 10.3 9.0 7.7

3. Relative Humidity (%) 8am 76 75 80 72 56 55 66 76 76 78 83 83 5pm 54 52 52 48 36 36 50 62 58 59 64 68 4. Wind Movement (Km/day)±/16 25 25 27 29 36 54 42 24 13 9 10 5. Rainfall (mm) 20 50 55 31 20 53 110 146 31 12 2 12 542 B. Calculated Value 6. Water use by Reference Crop (ETo) mm/mo 2/ 38 57 101 139 184 207 200 194 141 96 49 32 1,438

1/ Measured at 10 meter height above ground 2/ Modified Penman computation

-n PAKISTAN

SCARP MARDAN PROJECT

LAND TENURE STRUCTURE

North West Frontier Scarp Mardan Farm Size Total Pakistan Province Area 1/ Acre No. of Farms Area No. of Farms Area No. of Farms Area

% 100% 100% 100% 100% 100% 100% Under 2.5 14 1 33 5 37 8 2.5 to 5 14 4 23 8 24 15 5.0 to 1.2.5 39 25 28 23 30 42 12.5 to 25.0 21 27 9 17 7 21 over 25 12 43 7 47 2 14 Average Farm Size ac 13 9.1 5.4 Household Size per farm 7.0 7.1 7.4

1/ Based upon the weighted average of Mardan and Peshawar Districts.

41~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I.

-n PAKISTAN Table 3

SCARPMARDAN PROJECT

Land Tenure in Mardan and Peshawar Districts

Iarm Size Total Owner Owner-cum-Tenant 1/ Tenant Acte No. of Farms Area No. of Farms Area No. of Farms Area- No. of Farms Area acres acres acres acres Tota. Project Area 171,368 929,589 76.892 383.052 34,421 254.908 60,052 291.629

Unde 2.5 62,291 73,168 36,345 40,037 5,720 9,005 20,226 24,126

2.5 :o 5 41,657 141,967 16,896 56,721 9,328 33,160 15,433 52,086

5.0 :o 12.5 52,190 386,881 17,132 122,928 14,617 113,565 20,438 150,388

12.!.to 25 12,281 195,609 4,662 76,551 3,885 63,202 3,734 55,856

over 25 2,949 131,964 1,857 86,815 871 35,976 221 9,173

Mardin District 77,845 449,727 31,757 169,287 16,830 136,004 29,255 144,436

Under 2.5 26,317 32,431 14,628 16,582 2,198 3,532 9,491 12,317

2.5 l: 5 19,262 65,601 6,903 23,101 4,489 15,914 7,867 26,586

5. : 12.5 24,861 186,935 7,313 53,407 7,453 58,381 10,095 75,147

12. to 25 6,019 95,837 2,211 35,894 2,116 34,439 1,692 25,504

ovel 25 1,386 68,923 702 40,303 574 23,738 110 4,882

Pesl Lwar District

Und,r 2.5 35,974 40,737 21,717 23,455 3,522 5,473 10,735 11,809

2.5 I:D 5 22,398 76,366 9,993 33,620 4,839 17,246 7,566 25,500

5 t, 12.5 27,326 199,946 9,819 69,521 7,164 55,184 10,343 75,241

12. to 25 6,262 99,772 2,451 40,657 1,769 28,763 2,042 30,352 ove 25 1,563 63,041 1,155 46,512 297 12,238 111 4,291

About 50% of these land is operated by the owner.

55 ANNEX 1 Table 4 Page 1

PAKISTAN

SCARP MARDAN PROJECT

Descriptionof Project Sub-Areas

1. Sub-Area I (CCA 16,500 ac). Abandonedor marginallyproductive lands in the lower extremitiesof the LSC commandarea due to waterloggingand/or saline- alkaline conditionswhich require the full range of the project services. With the project, cropping intensitiesand yields are expected to reach the maximum levels projected for the project area, but at a Slower rate than expected in less affected areas.

2. Sub-Area II (CCA 75,700 ac). Lands in the LSC command area with low productivitydue to high water table conditionsand inadequatewater supplies. All project improvementsexcept reclamationwould be provided to these areas. Yields are expected to reach the maximum levels predicted for the project area.

3. Sub-Area III (CCA 42,300 ac). Better drained lands of the LSC command area with moderately low productivitydue to inadequatewater supplies. All project improvementsexcept reclamationand sub-surfacedrainage would be provided to these areas. Yields are expected to reach the maximum levels predicted for the LSC command area at a faster rate than expected in the more seriouslyaffected areas.

4. Sub-Area IV (CCA 8,500 ac). Abandoned or marginally productivelands in USC command area due to waterloggingand/or saline-alkalineconditions which require the full range of project services. After reclamationthe additional irrigation water provided would be reduced to the amount sufficient to maintain cropping intensities and yields at the levels predicted for Sub-Area V.

5. Sub-AreaV (CCA 67,000 ac). Lands in the USC command area with low productivitydue to moderatelyhigh water table conditionsand inadequatewater supplies. Open drains and improved extensionservices would be provided throughout the entire area, whereas closed drains would be installedonly in localized areas. No irrigationsystem improvementswould be made in this area. The water supply would be increasedonly to the extent of improvingthe capacityof the Benton Tunnel,which serves the total 274,000 ac USC command area. Although the cropping intensityin this area is not expected to increase,moderate yield improvementsare anticipated.

6. The followingtable shows the project improvementsprovided for each sub-area:

56 ANNEX 1

Lable 4 Page 2

SCARP MARDAN PROJECT

Project Componentsby Sub-Areas

Reclamation Drains Addi- Water- Improved Cropping Intensity of Saline/ tional course Sub-Area CCA Sodic Lands Closed Open Water Improvmts. Extension Present W/Prolect ------'000 ac ------…------… ---- Lower Swat Canal (Mardan IrrigationDivision)

I 16.5 16.5 16.5 16.5 16.5 16.5 16.5 01/ 180

II 75.7 0 75.7 69.8 75.7 75.7 75.5 175 180

III 42.3 0 0 21.1 42.3 42.3 42.3 175 180

Sub-total 134.5 16.5 92.2 107.5 134.5 134.5 134.5

Upper Swat Canal (MalakandIrrigation Division)

IV 8.5 8.5 8.5 8.5 8.5-l 8.5 8.5 01/ 175

V 67.0 03/ 9.3 67.0 -/ 0 67.0 173 175

Sub-total 75.2 8.5 17.8 75.5 3/ 8.5 75.5

4/ Total 210.0 25.0 110.0 183.0 3/ 143.0 210.0-/

1/ Productivecapacity is essentiallyzero. 2/ Additionalwater would be provided by increasingthe capacity of Benton Tunnel from 1,800 cusecs to about 2,060 cusecs. The water would be allocatedprimarily for reclamationuntil completed;thereafter it would be allocatedequally throughoutthe USC commandarea. 3/ Original designs of the irrigationsystem provided for a maximum capacity of 2,400 cusecs. The system therefore should be able to accomodatethe additonalwater to be provided through the Benton Tunnel expansion. About 15% more water would be provided during periods of maximum requirement. 4/ The extensionprogram would extend over the entire Mardan AdministrativeDistrict and the Charsadda Tehsil of the Peshawar District,covering a total area of 670,000 ac, since the extension service program is operated on a tehsil basis. PAKISTAN

SCARP MARDAN PROJECT

Present and Future Cropping Patterns by Sub-Areas

Lower Swat Canal Command Upper Swat Canal Command I II III IV V Ac 16,500 75,700 42,300 8,500 67,000 Ha 6,680 30,660 17,130 3,440 27,140

Kharif: P R W P R- W P R W P W_ W P W W

Maize 32 33 33 32 33 33 32 - - 39 39 39 39 Fodder - - 8 5 5 8 5 5 8 - - 4 4 4 4

Vegetable - - 2 2 2 2 2 2 2 - - 2 2 2 2

Misc. - - 2 3 3 2 3 3 2 - - 2 2 2 2 Total (44) (43) (43) (44) (43) (43) (44) (47) (47) (47) (47)

Rabi:: Wheat - - 31 31 31 31 31 31 31 - - 41 41 41 41

Tobacco - - 10 9 9 9 9 9 10 - - 10 10 10 10 Sugar Beet - - 9 8 8 8 8 8 9 - - 3 3 3 3 Fodder - - 8 10 10 10 10 10 8 - - 5 5 5 5 Vegetable - - 1 1 1 1 1 1 1 - 1 1 1 1 Misc. ------2 2 2 2

Oilseed - - 1 1 1 1 1 1 1 - - 2 2 2 2 Total (60) (60) (60) (60) (60) (60) (60) (64) (64) (64) (64) Sugarcane - - 34 34 34 34 34 34 34 - - 30 30 30 30 Orchard - - 4 2 2 4 2 2 4 - - 2 1 1 2 Total Perennial (38) (36) (36) (38) (36) (36) (38) (32) (31) (31) (32) Total Annual 180 175 175 180 175 175 180 175 173 173 175

Legend: I, II, III, IV, V are sub-areas of the project. P - Present Situation; W - Future Without Project; W - Future With Project u, SCARP MARDAN PROJECT

Present and Future Yields (md/ac)by Sub-Areas

Lower Swat Canal Command Upper Swat Canal Command I II III IV V Ac 16,500 75,700 42,300 8,500 67,000 Ha 6,680 30,660 17,130 3,440 27,140 Kharif:Kharif: -~~ W W P W W P W W P W W P W W

Maize - - 35 12 10 35 18 18 35 - - 25 18 18 25

Fodder - - 350 190 180 350 220 220 350 - - 280 220 220 280 Vegetable - - 180 100 100 180 145 145 180 - - 160 145 145 160 Misc. - - 12 7 6 12 7 7 12 - - 9 7 7 9 Rabi: Wheat - - 30 12 11 30 17 17 30 - - 25 17 17 25

Tobacco - - 18 12 10 18 15 15 18 - - 16 15 15 16 Sugar Beet - - 440 270 250 440 330 330 440 - - 360 330 330 360 Fodder - - 510 270 250 510 400 400 510 - - 450 400 400 450

Vegetable - - 180 100 100 180 145 145 180 - - 160 145 145 160 Misc. ------9 7 7 9 Oilseed - - 20 6 6 20 6 6 20 - - 20 6 6 20 Sugarcane - - 575 260 250 575 400 400 575 - - 480 400 400 480 Orchard - - 150 55 45 150 124 124 150 - - 135 125 125 135

Legend: I,II, III, IV, V are the sub-areas of the project.

P - Present Situation; W - Future Without Project; W - Future With Project

t-3

D~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

'0 ANNEX 1 Table 7 PAKISTANTa Page 1 SCARP MARDAN PROJECT

List of Equipment and Vehicles

c.i.f. Karachi Item Description Quantity Unit Price Cost -- U.S.$'000--

I. Irrigation System and Open Drain ConstructionEquipment

1 Backhoe/loader,wheeled, 1/2 cu yd 6 84 504 IDA 2 Dragline, crawler, 2 cu yd 4 255 1,020 Canada 3 Graders, motor, 125-hp 3 72 216 Canada 4 Roller, sheepsfoot, towed, 10-T,vibr. 3 17 51 IDA 5 Tractor, crawler, 200-hp, w/blade 3 132 396 IDA 6 Tractor, crawler, 105-hp, w/blade 3 77 231 IDA 7 Truck, tractor/trailer,1-30T, 1-60T 2 1-62, 1-72 134 Canada 8 Truck, 4x4 pickup, 3/4-ton 6 9 54 IDA 9 Truck, service 1 40 40 Canada 10 Truck, welding 2/accessories 1 40 40 Canada 11 Carryall, 4x4 6-12 passengers 6 10 60 IDA 12 Mixers, concrete, portable, 10 cu ft 8 12 96 Canada 13 Vibrators, concrete, hand held 16 2 32 IDA 14 Air compressors,600 cfm 4 47 188 Canada 15 Pneumatic drill T handle 10 2 20 Canada 16 Truck, w/l,200 gallon water tank 2 24 48 Canada 17 Drill Steel, bits, hoses, lubricators 15 10 Canada Subtotal 3,140

Spares and parts (25%) 780

Total for Group 1 3,920

II. Pipe Drain ConstructionEquipment

1 Grader, motor, 125-hp 3 72 216 Canada 2 Loader, crawler,and backhoe,l.5cu yd 3 84 252 IDA 3. Loader, wheeled, 1.5 cu yd 12 51 612 Canada 4 Tractor, crawler, 105-hp, w/blade 6 77 462 IDA 5 Trencher, crawler, 200-hp, 12' depth 10 200 2,000 Canada 6 Truck, dump, 5-6 cu yd 9 22 198 Canada 7 Truck, dump, 8-10 cu yd 8 30 240 Canada 8 Truck, 4x4 pickup, 3/4-T 6 9 54 IDA 9 Truck, tractor/trailer,30-T 2 62 124 Canada 10 Carryall, 4x4, 6 to 12 passenger 6 10 60 IDA Subtotal 4,218

Spares and parts (25%) 1,052

Total for Group II 5,270

60 ANNEX 1 Table 7 Page 2

List of Equipment and Vehicles (continued)

c.i.f. Karachi Item Description Quantity Unit Price Cost -- U.S.$'000--

III. Road Construction Equipment

1 Backhoe, wheeled, 1 cu yd 2 16 32 IDA 2 Grader, motor, 125-hp 3 72 216 Canada 3 Loader, crawler, 2 cu yd 1 78 78 IDA 4 Roller, road, 10-ton, vibratory 2 45 90 Canada 5 Scraper, elevating, 11 c.y. 2 93 186 IDA 6 Tractor, crawler w/blade, 200-hp 2 132 264 IDA 7 Truck, dump, 5-6 cu yd 4 26 104 Canada 8 Truck, tractor/trailer,30-ton 1 62 62 Canada 9 Truck, 4x4 pickup, 3/4-ton 3 9 27 IDA 10 Truck w/water tank, 1,200-gallons 1 24 24 Canada 11 Carryall, 4x4, 6 to 12 passengers 3 10 30 IDA

Subtotal 1,113

Spares and parts (25%) 287

Total for Group III 1,400

IV. Land Leveling Equipment

1 Field car, 4x4, 4-passenger 2 9 18 Canada 2 Laser leveling equipment ls 30 IDA 3 Scraper, elevating, 11 cu yd 3 93 279 IDA 4 Tractor, crawler, 140-hp, w/land plane 1 186 186 Canada 5 Truck, 4x4 pickup, 3/4-ton 1 9 9IDA

Subtotal 522

Spares and parts (25%) 168

Total for Group IV 650

61 ANNEX 1 Table 7 Page 3 List of Equipment and Vehicles (continued)

c.i.f. Karachi Item Description Quantity IJnitPrice Cost --U.S.$'000--

V. Land ReclamationEquipment

4 1 Field car, 4x , 4-passenger 2 9 18 Canada 2 Crusher, rock, 10 to 15-T/hr,hammer type 2 35 70 Canada 3 Hopper, elevated, 10-ton 2 10 20 Canada 4 Truck, dump, 3-5 cu yd, w/Tail gate 2 22 44 Canada

Subtotal 152

Spares and parts (25%) 38

Total for Group V 190

VI. Project Support and Management Equipment

1 Reclamation laboratory1/ ls 50 IDA 2 Constructionmaterials laboratory ls 50 IDA 3 Drill, foundation,rotary, 5,000-lb hoist capacity, truck-mounted 1 60 60 IDA 4 Drill, soil sampler, rotary, mounted 4x4 pickup 2 15 30 IDA 5 Automobile, 4-door, 90-hp 6 7 42 IDA 6 Truck, fuel, 1,250-gallon 2 30 60 Canada 7 Truck, tractor/trailer,30-ton 1 62 62 Canada 8 Truck, 4x4 pickup, 3/4-ton 10 9 90 IDA 9 Field wagon, 6-passenger, 180-hp, 4x4 15 10 150 IDA 10 Field car, 4x4, 4-passenger 10 7 70 Canada 11 Motorcycles 22 0.9 20 IDA 12 Maintenance shop equipment, light duty vehicles ls 100 IDA 13 Maintenance shop, heavy equipment ls 190 IDA 14 Radios, FM transceiver,single side band 8 2 16 Canada Subtotal 990

Spares and parts (25%) 250 Total for Group VI 1,240

- Table 8 62 ANNEX I Table 7 Page 4 List of Equipment & Vehicles (continued)

c.i.f. Karachi Item Description Quantity Unit Price Cost -US $ '000---- VII (a) Monitoring Equipment 1. Stevens Type Water-level Recorders 40 0.8 32 IDA 2. Staff Gauges ls 2 IDA 3. Instrument Housing ls 30 IDA 4. Stream Gauging Equipment ls 10 IDA 5. Portable EC Meters ls 2 IDA 6. Bicycles 20 0.08 2 IDA 7. Motorcycles 10 0.9 9 IDA 8. Field Car, 4x4 4-Passenger 4 7.0 28 Canada 9. Carry-all, 4x4 6-12 Passenger 1 10.0 10 IDA Subtotal 125 Spares and Parts 35 Total for Group VII 160

VII (b) List of Monitoring Equipment & Vehicles by Program Water Drainage Land Re- Meas- & Water Table clamal/ Agricultural urement Observations tion - Base Survey Water Stage Recorders (No.) 25 15 0 0 Staff Gauges, Instr. Housing & Str.Gauging Equip. X X - - Portable EC Meters - X - - Bicycles (No.) 0 0 0 20 Motorcycles (No.) 3 2 0 0 Field Car 4x4 (No.) 2 2 0 0 Carry-all 4x4 (No.) 0 0 0 1

VIII. Processing Plants 1. Gravel crushing and processing, 50 cu vd/hr, 1-1/2" screen & shaker, diesel powered ls 120 Canada ~2. PVC tubing plant, 4 to 12-inch diam, 2000 ft/hr capacity including building ls 1,600 Canada Subtotal 1,720 Spares and Parts 430 Total for Group VIII 7,150

.L/ Equipment provided for reclamation (Annex 1, Table 7, Section V) to be used for monitoring also.

63 ANNEX 1 Table 7 Page 5 List of Equipment and Vehicles (continued)

c.i.f. Karachi Item Description Quantity Unit Price Cost -- U.S.$'000--

IX. Operation and Maintenance Equipment

1 Backhoe, crawler, 3/4 cu yd 4 84 336 Canada 2 Dragline, crawler, 2 cu yd 2 254 508 Canada 3 Grader, motor, 125-hp 2 72 144 Canada 4 Loader, crawler, 2 c.y. 2 78 156 IDA 5 Loader, wheeled, backhoe,l.5 cu yd 2 56 112 Canada 6 Pipe drain cleaner, high-pressure 1 20 20 IDA 7 Roller, sheepsfoot,towed,l0-T vibr 1 19 19 IDA 8 Tractor, crawler, 150-hp, w/blade 2 94 188 IDA 9 Truck, dump, 6-12cu yd 7 26 182 Canada 10 Truck, 4x4 pickup, 3/4-ton 4 9 36 IDA 11 Field car, 4x4, 4-passenger 4 7 28 Canada

Subtotal 1,729

Spares and parts (25%) 431

Total for Group IX 2,160

X. Agricultural Extension Equipment

1 Bicycles 175 0.08 14 IDA 2 Motorcycles 27 0.9 24 IDA 3 Field car, 4x4, 4-passenger 1/ 7 7 4S Canada 4 Truck, 4x4 pickup, 3/4-ton 1 19 IDA 5 Training & Visual aid equipment ?s 4_IDA Subtotal 100

Spares and parts (25%) 20

Total for Group X 120

64 ANNEX 1 Table 7 Page 6

List of Equipment and Vehicles (continued)

c.i.f. Karachi Item Description Quantity Unit Price Cost ---- US$ 000----

XI. Seed Production Equipment and Vehicles

1 Maize Crib 5 2 10 IDA 2 Sheller and motor 2 2 4 Canada 3 Pre-cleanerand conveyor 1 17 17 Canada 4 Grain silo 2 10 20 Canada 5 Drying unit 1 15 15 Canada 6 Bagging unit 1 2 2 Canada 7 Bag sealer 1 2 2 Canada 8 Field car, 4x4 2 7 14 IDA 9 Truck, 7-8 T 1 15 15 Canada 10 Market Development equipment 1 15 14 IDA Subtotal 113 Spares and parts 27

Total for Group XI 140

Total equipment cost (all groups)/ 17,400

- Not includingprice escalationand taxes and duties.

65 ANNEX 1 Table 8

PAKISTAN

SCARP MARDAN PROJECT

LABORATORYEQUIPMENT FOR LAND RECLAMATION PROGRAM

ITEM QUANTITY COST

1. Flame Photometer, with filters for US$ Na, K, Ca and built-in or separate air compressor 1 5,000 2. Beckman pH meter 2 1,600 3. Solubridge with Conductivity Cells 2 700 4. Vacuum Pump 1 500 5. Analytical Balance 1 1,000 6. Triple-beam Balance 2 250 7. Centrifuge, International Size 2 with Speed Control 1 3,000 8. Water Distillation Apparatus, single stage, electric (3 phase 220 V) with spare heating elements 1 1,500 9. Glassware - 2,000 10. Chemicals - 2,000 11. Soil Moisture Extraction Apparatus with Compressor & Manifold 1 3,000 12. Soil Pulverizer 1 500 13. Oven, small, forced air 2 1,200 14. Furnace, Muffle 1 500 15. Pressure Extractor 1 800 16. Shaker, equipoise type 1 750 17. Sieves 2 100 18. Hydraulic Conductivity Rack & Tubes 60 Units 1,200 19. Colorimeter 1 1,000 20. Calculators 2 400 21. Plasticware - 2,000 22. Laboratory Furniture misc. 5,000 Contingencies 6,000

Sub-total 40,000 Spared and Parts (25%) 10,000

TOTAL 50,000

66 PAKISTAN

SCARP MARDAN PROJECT LSC Command Area (Sub-areasI, II& III)-134,500ac Water Requirements at Canal Head

(Million M)

JAN FEB MAR APR MAY JUN LJUL AUG SEP OCT NOV DEC TOT 1 2 3 4 5 6 7 6 9 10 11 12 1t3 14 15 16 17 18 19 20 21 2 2 23 24

RAIN 20. 50. 55. 31. 20. 53. 110. 146. 31. 12. 2. 12. 542.

MIAIZE 0. 0 0. 0 0.0 0.-0 0 .0 0.0 0. 0 0.0 0.0 6.2 12.8 12.7 8. 8 1 2. 012.9 19.0 20 .4 9.4 1.4 0. 0 0 .0 0.0 0. 0 0. 0 115.6 FODDER 1KH 0.0 0.0 0.0 0.0 0.0 0.7 0.9 1.6 2.9 3.2 3.0 2.1 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 15.1 FODDER 2NH 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 1.3 1.5 1.3 1.4 0.4 0.7 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 8.4 MISC KHAR 0.0 0.0 0.0 0.0 0.0 1.6 2.8 1.8 3.0 3.9 4.0 2.9 1.6 1.9 0.8 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 24.9 WHEAT 1 0.9 1.1 1.0 1.3 2.0 2.9 2.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.8 0.6 0.7 0.7 0.6 0.6 20.8 WHEAT 2 2.4 3.5 3.5 4.7 7.4 11.6 11.8 4.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10.7 11.9 1.7 1.2 1.1 76.4 WHEAT 3 0.3 0.5 0.5 0.6 1.0 1.6 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.5 0.2 0.1 0.1 7.8 TOBACCO 0.0 0.0 0.0 0.0 0.1 1.5 3.4 6.3 9.3 11.3 5.5 7.4 3.t 0..c 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.7 0.0 0.0 57.8 SUGAR BEET 1.5 1.9 7.3 8.0 3.9 6.1 7.1 8.8 6.5 3.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 1.1 1.6 1.5 1.2 1.1 61.9 FODDER RAB 1.1 1.4 1.3 1.7 2.7 4.3 5.0 6.4 6.6 3.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.4 3.4 3.3 0.9 0.9 0.8 0.6 46.5 MISC RABI 0.1 0.2 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.4 0.5 0.2 0.1 0.1 0.1 2.4 SUGAR CANE 2.9 3.0 1.9 2.6 5.9 11.7 16.0 23.1 30.7 37.9 36.9 34.3 28.7 22.2 16.7 21.1 28.5 24.5 22.9 16.8 12.0 8.1 5.4 3.7 417.5 VEGETABLES 0.0 0.0 0.0 0.0 0.1 0.3 0.5 0.8 1.0 1.3 1.2 1.1 0.9 0.6 0.4 0.6 0.9 0.7 0.6 0.4 0.3 0.2 0.1 0.0 12.2 ORCHARD 0.2 0.2 0.1 0.1 0.4 1.0 1.4 2.1 2.7 3.1 3.0 2.7 2.2 1.6 1.1 1.5 2.3 2.0 1.8 1.3 1.0 0.6 0.4 0.2 33.0

TOTAL 10. 12. 16. 19. 24. 43~-. 53. 56. 63. 75. 68. 65. 47. 40. 32. 43.- 53. 39. 37. 35. 30. 24 10. 8.- 90'.

r23 ZD 0', r4~~~~~~~~~~~~~~~~~~~~~~~~ PAKISTAN

SCARP MARDANPROJECT

Summary - Water Supply and Demand at Munda Headworks

Water Supply Available Sholgara & Doaba Canals Lower Swat Canal Swat River Water Supply Ave. Ave. Total Est. Monthly % of Est. Monthly % of Diver- Ave. Min. Future Diver- Reqmt. Future Diver- Reqmt. sion Dis- 2/ Dis- 3/ Ave. Min. Month Regmt. sion 1/ Diverted Regmt. sion 1/ Diverted Regmt. charge -. charge -. Years Years ---'000 ac ft -- % ---'000 ac ft- % '000 ac ---'O0O ac ft --- ft Jan 5 2 40 18 8 44 23 69 32 300 139 Feb 4 11 275 28 24 86 32 80 29 250 91 Mar. 13 18 138 54 34 63 67 270 95 403 Apr 142 21 20 95 88 41 46 109 663 244 609 224 May 27 24 89 112 49 44 139 879 424 632 305 Jun 27 25 92 108 52 48 135 1,190 651 881 482 Jul 19 24 126 70 49 70 89 1,268 492 1,425 553 Aug 15 20 133 61 44 71 77 872 397 1,132 516 Sep 21 20 95 75 47 64 95 392 210 413 221 Oct 19 22 86 58 51 88 77 193 76 251 99 Nov 10 19 190 44 38 86 54 102 52 189 96 Dec 4 15 375 15 27 180 19 88 54 463 284 TOTAL 185 220 119 731 464 63 916 6,066 - 662 -

1/ Monthly diversion record - 1967 to 1976

2/ Average monthly discharge of Swat River at Munda Headworks - 1956 to 1976

3/ Minimum monthly recorded discharge of Swat River at Munda Headworks - 1956 to 1976 o0 ANNEX1 Table 11

PAKISTAN

SCARPMARDAN PROJECT Detailed Cost Estimates

Rs Million!' us$ Million Foreign Local Foreign Total Local Foreign Total Exchange I. Land Acquisition

Additional ROW for Canal and Drain Construction 48.5 - 48.5 4.9 - 4.9 0 Crop Damage (Subsurface drains) 24.7 0 24.7 2.5 0 2.5 0

II. Civil Works

Construction and 0&M Camp 6.9 1.0 7.9 0.7- 0.1 0.8 13 Modifications to Benton Tunnel 6.9 1.0 7.9 0.7 0.1 0.8 13 Lower Swat Canal 96.0 32.7 128.7 9.7 3.3 13.0 25 Open Drain Improvements: Murdara Drainage System 10.9 4.0 14.9 1.1 0.4 1.5 27 Hisara Drainage System 22.8 7.9 30.7 2.3 0.8 3.1 26 Bandai Drainage System 4.9 2.0 6.9 0.5 0.2 0.7 29 Uch Drainage System 3.0 0 3.0 0.3 0 0.3 0 Ballar Drainage System 11.9 3.9 15.8 1.2 0.4 1.6 25 Plato Drainage System 2.0 0.0 2.0 0.2 0.0 0.2 0 Subsurface Drain Construction: Murdara North 16.8 30.7 47.5 1.7 3.1 4.8 65 Murdara South 20.8 38.6 59.4 2.1 3.9 6.0 65 Hisara North 27.7 52.5 80.2 2.8 5.3 8.1 65 Hisara South 15.8 29.7 45.5 1.6 3.0 4.6 65 West of Hisara 5.0 8.9 13.9 0.5 0.9 1.4 64 Bandai & Plato 14.9 26.7 41.6 1.5 2.7 4.2 64 Ballar & Uch 8.9 17.8 26.7 0.9 1.8 2.7 67 Road Improvements 14.9 0.0 14.9 1.5 0.0 1.5 0 Subtotal 290.1 257.4 547.5 29.3 26.0 55.3 47 Physical Contingencies 58.4 51.5 109.9 5.9 5.2 11.1 51 Engineering Supervision & Management 65.3 0.0 65.3 6.6 0.0 6.6 0 Subtotal Civil Works 413.8 308.9 722.7 41.8 31.2 73.0 43

TII. On-Farm Improvements

Watercourse Remodelling 10.9 0.0 10.9 1.1 0.0 1.1 0 Land Reclamation 27.7 4.0 31.7 2.8 0.4 3.2 13 Land Levelling 11.9 8.9 20.8 1.2 0.9 2.1 43 Subtotal 50.5 12.9 63.4 5.1 1.3 6.4 20 Physical Contingencies 4.9 1.0 5.9 0.5 0.1 0.6 17 Engineering Supervision 6.9 0.0 6.9 0.7 0.0 0.7 0 Subtotal On-Farm 62.3 13.9 76.2 6.3 1.4 7.7 18

IV. Agricultural Development

Agricultural Extension 11.4 0.0 11.4 1.15 0.0 1.15 - Maize Seed Production 1.5 0.0 1.5 0.15 0.0 0.15 - Subtotal 12.9 0.0 12.9 1.30 0.0 1.30 -

V. Monitoring Program 6.9 0.0 6.9 0.70 0.0 0.70 0

VI. Equipment & Vehicles

Construction 0.0 91.0 91.0 0.0 9.19 9.19 0 O&M 0.0 21.4 21.4 0.0 2.16 2.16 100 Land Reclamation 0.0 1.9 1.9 0.0 0.19 0.19 100 Land Levelling 0.0 6.4 6.4 0.0 0.65 0.65 100 Monitoring 0.0 1.6 1.6 0.0 0.16 0.16 100 Agricultural Extension 0.0 1.2 1.2 0.0 0.12 0.12 100 Processing Plants (gravel & pipe) 0.5 20':8 21.3 0.05 2.10 2.15 97 Road Improvement 0.0 13.8 13.8 0.0 1.40 1.40 100 Project Support 1.5 10.8 12.3 0.15 1.09 1.24 88 Seed Production 0.0 1.4 1.4 0.0 0.14 0.14 100 Subtotal 2.0 170.3 172.3 0.20 17.20 17.40 99 Duties and Taxes 69.3 0.0 69.3 7.00 0.0 7.00 0 Subtotal Equipment 71.3 170.3 241.6 7.20 17.20 24.40 70

VII. Technical Assistance

Consultants 2.0 36.6 38.6 0.20 3.70 3.90 95 Training 0.0 2.0 2.0 0.00 0.20 0.20 100 Subtotal 2.0 38.6 40.6 0.20 3.90 4.10 95 Project Subtotal 642.5 531.6 1,174.1 64.90 53.70 118.60 45 VIII,Expected Price Increases 152.5 131.6 284.2 15.40 13.30 28.70 46 IX. 0 & M During Project Implementation 26.7 0.0 26.7 2.70 0.0 2.7d 0

TOTAL 121.7 663.3 1.485.0 83.00 67.00 150.00 45

1/ 69 - @ Official exchange rate of US$1.0 - Es 9.9 ANNEX 1 Table 12

PAKISTAN

SCARP MARDANPROJECT

Schedule of Expenditures (In Million US$)

Total --- …Fiscal Years------Cost!/ 79/80 80/81 81/82 82/83 83/84 84/85

Land Acquisition and Crop Damage 7.40 0.60 1.40 1.50 1.60 1.60 0.70 Benton Tunnel 0.80 0.00 0.20 0.25 0.35 - - Lower Swat Canal 13.00 0.00 1.90 3.60 3.80 2.80 0.90 Open Drainage 7.40 0.10 2.10 2.30 2.30 0.60 - Subsurface Drainage 31.80 0.00 2.85 5.35 7.20 8.20 8.20 Road Improvement 1.50 - - 0.25 1.00 0.25 - Construction and O&M Camp 0.80 0.45 0.35 - - - - On-Farm Improvements 6.40 0.00 0.15 1.40 1.80 1.70 1.35 Sub-total 69.10 1.15 8.95 14.65 18.05 15.15 11.15

Physical Contingencies 11.70 0.15 1.65 2.60 3.00 2.60 1.70 Engineering Supervision and Administration 7.30 0.05 1.00 1.60 1.90 1.65 1.10 Sub-total 88.10 1.35 11.60 18.85 22.95 19.40 13.95

Price Escalation 23.70 0.10 1.40 3.75 6.20 6.85 5.40 Sub-total 111.80 1.45 13.00 22.60 29.15 26.25 19.35

Equipment 24.40 0.00 1.00 11.10 12.30 - - Monitoring Program 0.70 0.00 0.05 0.15 0.20 0.20 0.10 Technical Assistance 4.10 0.75 0.70 0.70 0.70 0.65 0.60 Sub-total 29.20 0.75 1.75 11.95 13.20 0.85 0.70

Price Escalation 4.70 0.05 0.15 1.60 2.50 0.20 0.20 Sub-total 33.90 0.80 1.90 13.55 15.70 1.05 0.90

Ag. Development 1.30 0.15 0.35 0.30 0.20 0.20 0.10 Price Escalation 0.30 0.00 0.05 0.05 0.05 0.10 0.05 Sub-total 1.60 0.15 0.40 0.35 0.25 0.30 0.15

O&M during I7plemen- 2/ tationi 2.70 0.00 0.00 0.10 0.20 0.40 2.002 TOTAL 150.00 2.40 15.30 36.60 45.30 28.00 22.40

-. January 1979 Price Level. 2/ Includes O&M expenditure of FY's 1985/86 and 1986/87 of US$0.7 annually. 70 ANNEX 1 Table 13

PAKISTAN

SCARP MARDAN PROJECT

Proposed Allocation of the Aid Package

Amount Allocated % of Expenditures US$ M Equivalent-/ to be financed

Category IDA CIDA IDA CIDA

J'ivil Works

Benton Tunnel ) Lower Swat Canal 100% of Foreign; 33% of Local Open Drainage ) Subsurface Drainage ) 42.5 12.0 50% 14% Road Improvements ) Agr. Ext. Office & Housing 3

On-Farm Improvements

Watercourse Remodeling ) Land Reclamation ) Land Leveling ) 4.5 50%

Equipment a Vehicles-- 7.0 12.5 100% of Foreign Costs

Consultants 4.8 100%

Unallocated 1.2 0.5

Expenditures Not Financed

Engineering, Superv. & Admin. Duties and Taxes Land Acquisition

TOTAL 60.0 25.0

-: Including expected ptice increases 2J Net of taxes and duties

71 ANNEX 1 Table 14

PAKISTAN

SCARP MARDAN PROJECT

Estimated Schedule of Disbursements (US$ M Equivalent)

IDA Fiscal Year Accumulated and Semester Disbursements Disbursements

1979

2nd 0 0

1980 lst 0.5 0.5 2nd 1.0 1.5

1981

1st 3.5 5.0 2nd 3.5 8.5

1982

1st 7.0 15.5 2nd 7.0 22.5

1983

1st 8.5 31.0 2nd 8.5 39.5

1984

1st 6.0 45.5 2nd 6.0 51.5

1985

1st 4.5 56.0 2nd 4.0 60.0

72 P A K I S T A N S C A RP MARDAN PRO J EC T CROP AREA, YIELD, PRCDUCTION AND ECUNOMIC VALUE OF PRODUCTION - TOTAL PROJECT

CCJP PRESENT FUTURE WITHOUT PROJECT FUTURE WITH PROJECT

RAEA YIELD PROD GROSS VALADD NET AREA YIELD PROD GROSS VALADD NET AREA YIELD PROD GROSS VALADD NET ITN.HHJA T/HA) (TH.T) ----- (FIL fS )---- (TH.HA)IT/HA) (Th.T) ----- (8IL RS )---- (TH.HA)(T/HA) (TH.T) -----… MIL RS )---- MAIZ 26.4 I.s 38.7 b7.1 57.6 45.3 26.4 1_4 36.7 63.6 54.1 41.8 29.4 3.0 86.7 FODDER 3.5 150.2 127.7 109.3 19.0 66.1 9.2 8.5 6.6 3.5 18.6 64.7 9.0 8.3 6.4 VEGETABLE 5.6 30.8 171.9 23.8 21.7 17.7 2.2 11.6 26.1 66.2 51.5 49.4 2.2 11.6 26.1 66.2 51.5 49.4 2.o 16.0 40.7 103.2 85.4 82.1 MISCEL 2.0 0.b 1.2 3.3 3.1 2.7 2.0 0.6 1.2 3.3 3.1 2.7 1.7 1.0 1.7 4.7 4.3 3.9 *iHEAT 25.9 1.4 30.8 72.0 oO.7 48.8 25.9 1.4 35.8 70.2 58.9 46.9 29.4 2.6 76.1 149.2 124.2 105.5 TA6ACCU 7.0 1.3 9.0 11.6 115.4 lC8.8 7.0 1.2 8.4 109.5 108.3 101.8 8.5 1.6 13.8 179.6 176.8 166.3 SUGAR 8EA 4.6 27.4 127.2 20.2 It.8 12.2 4.6 26.5 122.8 19.5 16.1 11.5 5.8 39.3 229.0 36.3 30.7 22.8 FODDER 6.1 033.d 189.3 29.9 28.5 24.5 6.1 29.9 1U3.5 29.1 28.0 24.0 5.9 45.6 268.3 42.5 40.0 34.6 MISCEL 0.5 0.6 C.3 C.9 C.8 C.7 0.5 0.6 0.3 0.9 0.8 0.7 0.6 0.8 0.5 1.4 1.2 1.1 OIL SEED 1.0 O.o 0.6 2.2 2.) 1.7 1.0 0.6 0.6 2.2 2.0 1.7 1.2 1.8 - 2.1 7.3 7.0 6.5 SUGAk CAN 24.4 31.3 763.1 12).9 97.6 7C.9 24.4 30.9 753.7 119.4 96.1 69.4 27.7 50.1 1388.0 219.9 186.9 149.2 ORCHARD 1.2 8.3 15.1 15.3 17.7 16.9 1.2 7.8 9.5 17.2 16.6 15.8 2.8 13.5 37.7 68.2 64.6 62.1 CROP INT 123.4 123.4 142.4 TGTAL. 12b8.3 526.8 460.2 388.7 1243.4 509.9 443.9 372.3 2316.4 986; 2 870.5 761.1

U, ANNEX 1 Table 16

PAKISTAN

SCARP MARDAN PROJECT (Rs/metric ton)

Prices Used for Financial and Economic Analysis

Financial Prices Economic Prices Crops Present Future

Maize 965 1,195 1,730

Fodder K 80 95 139

Vegetables 1,420 1,775 2,535

Miscellaneous 1,555 1,945 2,770

Wheat 935 1,155 1,960

Tobacco 8,200 10,375 12,970

Sugar Beet 150 160-/ 160

Fodder R 90 110 160

Oils Seed 2,295 2,820 3,525

Sugarcane 130 160-/ 160

Orchard 1,015 1,270 1,810

Fertilizers

Nitrogen 2,960 3,770 5,170

Phosphate 2,000 2,120 1,685

Potassium 1,000 1,220 1,880

1/ - Future financial sugar price was assumed to be equal to the economic price. At present sugar price is more than 100%.higher than the economic price.

74 ANNEX1 PAKISTAN Table 17

SCARP MARDAN PROJECT

Present and Future Cropping Patterns (%) Considered in the Farm Budget Models 1/ Canl! Lower Swat Canal-/ Upper Swat Canal-/ K1arif: P W W P W W Maize 30 30 32 35 35 39 Fodder 5 5 8 4 4 4 Vegetables 2 2 3 2 2 3 Misc. 2 2 2 2 2 2 (39) (39) (45) (43) (43) (48)

Wheat 28 28 31 36 36 41 Tobacco 8 8 10 9 9 10 Sugar Beet 8 8 9 3 3 3 Fodder 9 9 8 4 4 5 Misc. 0 0 0 2 2 2 Oilseeds 0 0 1 1 1 2 (53) (53) (59) (55) (55) (63)

PErennial: Sugarcane 31 31 34 27 27 30 Orchard 1 1 4 1 1 2 (32) (32) (38) (28) (28) (32) Total 156 156 180 154 154 175

N> :e: Present cropping intensitiesinclude the abandoned areas.

jFor Farm Models I, II and III weighted average of areas I, II and III. For Farm Models IV, V and VI; weighted average of areas IV and VI.

75 ANNEX 1 Table 18 PAKISTAN

SCARP MARDAN PROJECT

Present and Future Yield (md/ac) Considered in the Farm Budget Models

Lower Swat Canal-/ Upper Swat Canal-/ Kharif: P W W P W W Maize 14.0 13.0 37.0 18.0 18.0 25.0 Fodder 200.0 195.0 350.0 220.0 220.0 280.0 Vegetables 116.0 116.0 180.0 144.0 144.0 160.0 Misc. 6.5 6.5 12.0 6.5 6.5 9.0

Rabi: Wheat 14.0 13.0 30.0 17.0 17.0 25.0 Tobacco 13.0 12.0 19.0 15.0 15.0 16.0 Sugar Beet 292.0 280.0 440.0 330.0 -330.0 360.0 Fodder 318.0 304.0 510.0 400.0 400.0 450.0 Misc. - - - 6.5 6.5 9.0 Oilseed - - 20.0 6.5 6.5 20.0

Perennials: Sugarcane 311.0 304.0 575.0 400.0 400.0 480.0 Orchard 80.0 73.0 150.0 124.0 124.0 135.0

For Farm Models I, II and III; weighted average of areas I, II and III. / For Farm Models IV, V and VI; weighted average of areas IV and V.

76 PAKISTAN Table 19 SCARP MARDANPROJECT

Financial Analysis - Lower Swat

Farm Model I - 2,0 ac Farm Model II - 7.5 ac Farm Model III - 21.5 ac arm Budget Present Future W Future W Present Future W Future W Present Future W Future W

coss Income from crops 2,990 3,530 8,110 11,250 13,250 30,430 32,150 37,930 87,100

et Wage Income (expenditures) 200 60 350 175 60 200 (2,020) (625) (3,240) Total Farm Income 3,190 3,590 8,460 11,425 13,310 30,630 30,130 37,305 83,860

:ertainty Equivalent-/ 2,740 3,060 7,650 9,740 11,320 27,590 25,310 31,610 75,150

Ijerational Cost: Seasonal Inputs!' 440 570 1,025 1,640 2,130 3,840 4,865 6,280 11,315 Bullock Maintenance- 255 395 680 950 1,475 2,550 2,740 4,225 7,335 Water Charges 50 50 300 190 190 1,115 540 540 3,195 Total Cost 745 1,015 2,005 2,780 3,795 7,505 8,145 11,045 21,845

'arm Income 1,995 2,045 5,645 6,960 7,525 2t),085 17;i65 20,565 53,305 Subsistance Food Requirement- 1,170 1,890 1,890 1,495 2,420 2,420 1,930 3,100 3,100

,et Farm Income 825 155 3,755 5,465 5,105 17,665 15,235 17,465 50,205

roject Rent

.ertain Farm Gross Income 3,060 7,650 11,320 27,590 31,610 75,150

Cost of Inputs (excluding water) 965 1,705 3,605 6,390 10,505 18,650

Cost of Family Labor at market price 745 1,065 2,790 4,010 7,360 8,230 5/ Management Fee- 200 550 750 2,000 2,100 5,300 implicit Land Rent 1,150 4,330 4,175 15,190 11,645 42,970 i'rojectRent:

Per Farm 3,180 11,015 31,325 Per Acre 1,590 1,460 1,450

ncremental Water Charge as a percent of Project Farm Rent 8% 8% 8% kgricultural Income Ta/ 2,420 as a precent of Project Farm Rent 8%

- Variations in yields in the project area are about 15% of the average value. It is assumed that with project, yield would vary within 10% of average value. Including interest on seasonal loan at 12% per annum. -i Gross value of the fodder produced in each farm. One hundred ninety kilograusof wheat/capita at farm gate price (present Rs 180/person; future 220/person).

- Equivalent to 10% of farm income. SI Land rent less water charges. Based on Income Tax rate and deductions.

77 PAKISTAN ANNEX 1

SCARP MARDANPROJECT Table 20

Financial Analysis - Upper Swat

Farm Model I - 2.0 ac Farm Model II - 7.5 ac Farm Model III - 21.5 ac Future W Future W Farm Budget Present Future W Future W Present Future W Future W Present 46,880 66,700 Gross Income from crops 3,495 4,365 6,215 13,120 16,380 23,320 37,550 (625) (2,430) Net Wage Incomes (expenditures) 200 60 350 170 60 200 (2,020) 64,270 Total Farm Income 3,695 4,425 6,565 13,290 16,440 23,520 35,530 46,255

1/ 57,600 Certainity Equivalent- 3,170 3,770 5,945 11,320 13,980 21,190 29,900 39,220

Operational Cost: 6,930 10,970 Seasonal InputsV 485 630 990 1,825 2,370 3,710 5,370 Bullock Maintenance-/ 160 250 340 600 940 1,300 1,720 2,690 3,710 505 2,615 Water Charges 45 45 245 180 180 910 505 10,125 17,295 Total Cost 690 925 1,575 2,605 3,490 5,920 7,595 29,095 40,305 Farm Income 2,480 2,845 4,370 8,715 10,490 15,270 22,305 Subs42 tance Food Require- 3,100 3,100 ment- 1,170 1,890 1,890 1,495 2,420 2,420 1,930 25,995 37,205 Net Farm Income 1,310 955 2,480 7,220 8,070 12,850 20,375

Project Rent 39,220 57,600 Certain Gross Income 3,770 5,945 13,980 21,190 14,680 Cost of Inputs (excluding water) 880 1,330 3,310 5,010 9,620 8,120 Cost of Family Labor at market price 765 980 2,860 3,685 7,565

Management Fee-/ 300 450 1,050 1,500 2,950 4,000 19,085 30,800 Implicit Land Rent 1,825 3,185 6,760 10,995

Project Rent: 11,715 Per Farm 1,360 4,235 545 Per Acre 680 560

Incremental Water Charge as a percent of 18% Project Farm Rent 15% 17% 135 Agricultural Income Tall/ 1% as a percent of Project Farm Rent It is assumed that with project, - Variations in yields in the project area are about 15% of the average value. yield would vary within 10% of average value.

-/ Including interest on seasonal loan at 12% per annum.

-- Gross value of the fodder produced in each farm. -/ One hundred ninety kilogram of wheat/capita at farm gate price.

- Equivalent to 10% of farm income. Land rent less water charges. Based on Income Tax rate and deductions.

78 PAKISTAN

SCARP MARDAN PROJECT

Economic Prices (In 1978 Currency)

Sugar Oil Sugar Wheat Maiz Tobacco Cane & Beet Seed Rice Phosphate Urea Potassium Beet Seed World Market Prices US$/T.M.I/ 174 150 2,025 364 346 426 41 203 77 4,226

Ad2ustment Ratio-/ 95% 95% 75% 100% 92% 68% 100% 100% 100% 100%

Adjsuted Price 165 142 1,519 364 318 290 41 203 77 4,226

Handling and Transportation Cgst between the Port and the NVFP- 13 13 22 22 13 13 28 28 28 28

Processing, Handling and Transpor- tation Cost b ween Wholesale Market and Farm Gate- 20 20 187 163 25 25 9 9 9 9

Farm Gate Price 198 175 1,310 179 356 252 78 240 114 4,263

Processing Ratio 100% 100% 100% 9% 100% 67% 46% 46% 60% 100%

Economic Price US$ 198 175 1,310 16 356 169 170 522 190 4,263

1/ World Bank's projection for 1985 expressed in 1978 currency.

-/ Historical relationship (1971-76)between world prices and CIF or FOB prices in Pakistan. 3/ 3 Based on data collected from government institutions, sugar mills, tobacco and fertilizer companies. A SCF of 0.85 was used for elements having not traded goods and services. x P A K I S T A N SC AR P MAR DAN PRO J EC T ECbNOMIC COST rF LABOR

......

PRESENT FUTURE IIITHUUT PROJECT fJTJRE WITri PROJECT

DEMANsD M COST TCT CJST DEMAND M, COST TGT COST DEiAAND M COST TOT COST 1OCOC DAYS) IRS I (1000 RS 3 (1C0O JAYS) (IS ) (1003 RS ) (1300 DAYS) (RS ) (1300 RS )

......

JAN d84.69 11.69 5218.60 Sd4.69 11.o9 5213.63 10o8.24 12.03 7 5 Sj FEB 829.33 1).59 4tJI .88 829.33 10.59 4611.88 1E43.55 12.03 7123.79 MAR 648.23 6.96 3312.42 648.23 6.96 3312.42 849.13 IC.98 4815.47 APR 930.55 12.03 5766.b4 930.55 12.03 576i'.64 1368.47 12.03 11321.58 MAY 750.57 9.I1 3630.13 750.57 9.0! 3830.13 1144.1C 12.03 8329.25 JUN 400.26 5.00 16b1.28 4JO.2o 5.0d 1601.23 b 12.51 6.25 2776.64 JUL 562.72 5.81 2479.78 562.72 5.81 2479.78 777.81 9.5S 4 0 q'2.99 AUG 436.41 5.18 1765.35 436.41 5.18 1735.35 561.09 5.81 240. 33 SEP 545.91 5.73 2382.77 545.91 5.73 2382.77 782.13 S.64 412-+.45 OCT 916.28 12.30 5619.31 918.28 12.00 5619.31 132J.85 12.0D 10450.26 NUV 816.62 10.33 4468.92 816.62 13.33 4468.92 115.84 12.33 67WC.39 DEC 833.42 10.67 4c45.36 833.42 10.67 4645.36 1033.11 12.03 6961.29

TOTAL LA3OR )E,4iA;: 85iu.94 8556.94 11593.94 (1333 DAYS) TOTAL LA3UR CCST : 45412.44 45412.44 766C5.10 (1030 RS J ECUNCAIC WAGE RATE : 5.31 5.31 6.61 (RS

...... ,,,,,,......

INCREMENTAL LABuR DEMANi3: 3-37.00 (1000 DAYS) INCREMENTAL LABOR COST : 31192.66 (1000 RS

...... ,

The marginal opportunity cost of labor expressed as a function of the labor demand is based on the following assumptions:

(i) At minimum employment level, the marginal cost would be the value of extra consumption needed for family members to undertake field work (about 50% of average food grain consumption) plus the value of the forgone activities (such as hunting and fishing). This marginal cost was estimated at Rs 3 per day; (ii) At the employment level correspondingto about 35% of the total farm C) labor supply, the marginal cost would be about Rs 6 per day; and (iii) At an employment level corresponding to the present peak level (about 56% of total farm labor supply), the marginal cost would be about Rs 12 per day. ANNEX 1 Table 23

PAKISTAN

SCARP MARDAN PROJECT

Conversion Factor Used for Estimating the Economic Cost

Conversion Weighted Average % Structure Factor Conversion Factor

1. Land Acquisition 100 1.15 1.15

Traded component 100 Non-traded component Unskilled labor

2. Civil Works 100 0.88

Traded component 42 1.00 0.42 Non-traded component 38 0.85 0.32 Unskilled labor 20 0.70 0.14

3. On-Farm Improvements 100 0.82

Traded component 15 1.00 0.15 Non-traded component 50 0.85 0.43 Unskilled labor 35 0.70 0.24

4. AgriculturalExtension 100 0.85

Traded component - - - Non-traded component 100 0.85 0.85 Unskilled labor - - -

5. Monitoring Program 100 0.85

Traded component - - - Non-traded component 100 0.85 0.85 Unskilled labor - - -

6. Equipment and Vehicles 100 1.00

Traded component 99 1.00 0.99 Non-tradedcomponent 1 0.85 0.01 Unskilled labor - - _

7. TechnicalAssistance 100 1.00

Traded component 97 1.00 0.97 Non-traded component 3 0.85 0.03 Unskilled labor

81 ANNEX1 Table 24

PAKISTAN

SCARP MARDAN PROJECT

Economic Cost Stream

Investment Cost O&M Cost Financial Economic Financial Economic Fiscal Srem!______4tem' Year Stream___ __Stra_Streamm ' Stream_L'

1979/80 22.3 20.5

1980/81 133.2 122.5

1981/82 282.2 259.6 1.0 0.8

1982/83 335.1 308.3 2.1 1.8

1983/84 210.9 194.0 4.2 3.6

1984/85 153.0 140.8 6.2 5.3

1985/86 and on - - 7.3 6.2 TOTAL 1,136.7 1,045.7

-/ Includes farmers contributionof about Rs 10.9 M to watercourse remodeling and about Rs 20.8 to land leveling.

-/ Conversion factors shown in Table 23 are used in calculating the economic stream. 3/ Includes Rs 42/ac incrementalcost to be spend by GOP and Rs 10/ac to be spend by farmers, in the LSC area. 4/ A standard conversion factor of 0.85 is used. ANNEX 1 Table 25

PAKISTAN

SCARP MARDANPROJECT

Value of Production - Total Project

Future Without Future With Fiscal Project Project Increment Year (Mil. Rs) (Mil. Rs) (Mil. Rs)

1 (1981/82) 387.6 389.7 2.1 2 386.5 391.3 4.8 3 385.3 403.3 18.0 4 384.2 433.7 49.4 5 383.1 479.7 96.6 6 382.0 545.2 163.2 7 380.9 595.4 214.5 8 379.8 638.5 258.7 9 378.7 674.5 295.8 10 377.5 703.8 326.2 11 376.4 725.7 349.3 12 375.3 740.3 365.0 13 374.2 749.9 375.7 14 373.1 757.4 384.3 15 371.8 761.1 389.3

Note: In areas already under production, full benefits will be achieved about 8 yrs after completion of works in each area and about 50% of benefits will be reached after 4 years. In areas to be reclaimed, full benefits will be achieved after about 13 years and about 50% after 7 years. Because the project will be benefitted from extension service improvements from the first project year, benefits will start soon after the project is initiated.

83 ANNEX 1 Chart 1

PAKISTAN SALINITY CONTROL AND RECLAMATION PROJECT(SCARP) MARDAN FUTURE WATERDIVERSION REQUIREMENTS,EXISTING DIVERSIONS AND SWAT RIVER DISCHARGE AT THE MUNDA HEADWORKS

DIVERSION MONTHLY AVERAGE VS REQUIREMENT AVERAGES MINIMUM MONTHLY RIVER DISCHARGE

1,200-

600-

300-

<8150* 1002

8 -

- i00 \

MONTH MONTH

c) ~/ ~ ~ ~ \ 300- DIVERSION AVERAGE VS REQUIREMENT MAXIMUM MONTHLY RIVER DISCHARGE

2.400- ~~25- ,j -- > 1,200-

600- 1K~~~~~~~IJI F I M I A I M I J I J I A I S IOINIDI U- L. 300-

0150- 100-

50- ~ ~ -

MONTH

LEGEND Swat River Discharge (average,minimum monthly and maximum monthly I _____ Historical Lower Swat Canal Diversion - Lower Swat Canal Diversion Requirement Iwith the Project) ...... Combined Lower Swat Canal, Doaba & Sholgara Diversion Recluirement

World Bank -19247

84 ANNEX 1 PAKISTAN Chart 2 SALINITY CONTROL AND RECLAMATION PROJECT(SCARP) MARDAN Cropping Pattern of Lower Swat CanalCommand Area Future at Full Development

0 N D J F M A M J j A S 0 N D J F M A M J J A S 0

Orchard 4% Vegetables 2% _ Vegetables 2% Vegetables 1%.1 K. Fodder 2% f Misc. 2% Vegetables 1% K. Fodder Sugarbeet R. Fodder 8% 8%

-i0 _ / / Oilseed 1% Sugarbeet 9%

Maize 10 Wheat 32% 31% Oilseed 1% il) _V|V/ Wheat Maize 31% 32%

I / / I | / Interplanted Sugarcane

P:anted Sgarcan / Planted Sugarcane 4%~ ~ 4 7% / 7.3% 2d R nnterplanted Sugarcane

10 _ / Planted / ugacan oPlanted Sugarcane / ~~~~~~~~~~7.3%

30 '2nd Rato,//// Ms.2

/ / ~~~~~~Tobacco /F°/oddFddr R.

/ / / / / ~~ ~~~~~~~~~~~~~8%/

207 // lst Ratoon //Sugarcane, 2nd Ratoon / Tobacco / / ~~~~ ~~11.3% // 10% /

/~ ~ ~ / Sugarcane 11.3%/ Suacn,2dRto

I 1 / I I I tI I I I tI o I I I/ I I I I O N D J F M A M J J A S 0 N D J F M A M J J A S O

World Bank 19031

85 ANNEX 1 Chart 3

PAKISTAN SALINITY CONTROL AND RECLAMATION PROJECT(SCARP) MARDAN CroppingPattern of Upper Swat CanalCommand Area Future at Full Development

0 N D J F M A M J J A S 0 N D J F M A M J J A S 0 100 I I I I I I Orchard 2% I T I I I I I I Vegetables 2% , - Vegetables 2% Vegetables 1% Misc.2% Vegetables 1% Misc.M2%is Mi dde.Ol2sed & Msc.I4 9Oilseed& Misc. 4% 4%

Sugarbeet 3% R. Fodder 5%

80 Sugarbeet 3%

70 Wheat Maize l l l l 1/ ~~~ ~ ~~~~~~~~~~41%39%

60 l l 60 ~~~~~4%39%Wheat l l Maize

41%~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 4

50 | I nte-rplanted Sgrcn

50 I nt|rp PlantedSug arcane

40 6% / | ~~~~~~~~~~InterplantedSugarcane 4%

/ ~~~~~~~~~PlantedSugarcane / ~~~~~~~~6% 30 _' ,,__

Tobacco nd 7 / ~~~~10%/ /2/0// R. Fodder 5% 20 /

lst Ratoon / Sugarcane, 2nd Ratoon Tobacco istRatoon~~~~~ 10% 10%

Planted Sugarcane, 1st Ratoon Sugarcane 10% Sugarcane, 2nd Ratoon

I 1 I II I I I I I I I I I I I I 0 N D J F M A M J J A S 0 N D J f M A M j J A S 0

World Bank -19033

86 PAKISTAN SALINITY CONTROLAND RECLAMATIONPROJECT (SCARP) MARDAN SUMMARY IMPLEMENTATIONSCHEDULE

CALENDAR YEARS o

< .2 ______z PROGRAM ITEM QUANTITY <1979 1980 1981 1982 1983 1984 1985 W z iJ0lrt 1l 3rtL2.1 2n 3d F4th ~fdr4t I1drTtst I2ndl 3rdj 4th ~~7It

1 LAND ACQUISITION *20,600 7.4 .. 2iiiim 2 BENTON TUNNEL 14,000 C. Y. -1.1slglMllpi ... 3 LOWER SWAT CANAL 700 m -17.2 i?3PA F ...... 3 4 MURDARA WATERSHED OPEN DRAIN 58 mt 2-0 1 U U a 11 5 HISARA WATERSHED OPEN DRAIN lls m 4.11 6 BANDAI & PLATO WATERSHED OPEN DRAIN 36 m 1.2 .LL....ptI

7 BALLAR & UCH WATERSHED OPEN DRAIN 72 Ft 2.5 ... . I tti a MURDARA NORTH SUBSURFACE DRAINS 19,000 ac 6.4n1A8 lo 9 HISARA NORTH SUBSURFACE DRAINS 29,000Oac 10.7 L9 10 MURDARA SOUTH SUBSURFACE DRAINS 20,000Oac 7.9 'ott

11 HISARA SOUTH & WEST SUBSURFACE DRAINS 22,000 ac 7.9 i 1 2BANDAI & PLATO SUBSURFACE DRAINS 12,000Oac 5.5 ..... 13 BALLAR & UAH SUBSURFACE DRAINS 8,000 ac 3.6ItIIl ii13 14ROAD iMPROVEMErE--LmSu . II..l"lfimm 4 151 WATERCOURSE REMODELING1400a 3...... 151 LAND RECLAMATION 25.000 ac 3.8 ...... I 1 171 LAND LEVE-LING 3,0 c1 181 AGRICULTURAL EXTENSIONLupSm 1 ...... 19 MONITORING PROGRAMLupSm 07 1 9 20 EQUIPMENT AND VEHICLES Lm u 74...... 2 21 CONSULTANTS Lm u . 22 CONSTRUCTION AND 0 & M CAMPLupSm .0 2 23 TOTAL PROJECTij 111.611 2

25 ______tl I li l

NOTES: !/Costs do not Include Expected Price Increases., ROW REGMTS 4,900 xc Government Taxes and Custom Fees,or 0 & M Costs LEGEND. CROP DAMAGE 15,700 ac EEUUIIIUEI Preconstruction and Equipment Purchase *Costs Credit Effectiveness Construction and Implementation

WVorldBank - 19835

PROCUREMENTSCHEDULE FOR EQUIPMENT AND VEHICLES COURSES RRO~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ECT~~~~~~--SCOOP MARDAN

TROOLNE- O'TU,DZ D ,- C ± 2 2 F - -0z -'IlIT 0 0 D~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--~bI0 1

_ODDSNCROCEDLCONSTR 1R- I GBfA KHOCES TROLLERS 4 DROAGLINDS 6 TRACTORS ICC DC50 RECIER 3ORODERS 2TRACTORITOL S 2WACTERTRUCKCS A SIUBSURFACE DRAIN CONNIE. - UINIT # 1 AIINP-ROIROL PITS GRAVEL PEOCOOSINCCQUIPMENT ICR 2,000 3LOGADEERSR- 0 TRLDCK*SODME A

SLBSUORFACEDRAIN CONSTE C ,0 AIA- - UNIT#2IC 1,0

SUBSURFACE DR"AIN CONOTR ICE 1,700 UN IT 03L

ROAD CONSTROCTION PECIO 2 DACKHETIE SCRAPERS PRA SORADERIS 2TRACTORS IR 1,220 REIREDI I LOADERS 2 TRACCORITRLRS 4TRACK, DUMP QLAND LEVKLING OSRJODYEQUIPMENT lCB 020 REID 3 SCRAPERS 1 TRACTOR A A

LAND RECLAMATION AP1 2RHOLKCRUOHRES- ICR 170 NPTIRR DROPPERS 2 TRACKS, DUMP A A

PROJECT SUPPORT & MONITORINGA 2 LARORATORICS 2 ROAINT SHOPSA-IAL 3 SHRILLEIOR 1 VRAELPLT ICR 3,040 REID -

1 TRATOR/ICL M SC EQUIP,IA OPERATIORN R AICTENOSGE U OCEADK 1DOMINCLEANER AAP-AINL HLRALNRE'S IROLLER IC ,0 ESNO - 2DRAD ERS 2TRACTORE2D ,OLOADERS UTRACES, DAMP TA

LI DUTY VEHICLESA - 1 8 I I R AUTOMOBILCS 27 MOTOCTCLESI 31PCKUOPS I175 ICYCLES ICR 1,000 REIH - ISCCARRYALLS 25 FIELD CARS iSVAGONCS 2 SERVICE TRUCLKSO. TOTAL 512,4000 PNRAUOLIFITUTITN ATTIOCH TEROLN~~~~~~~~1.-FEM-NATRI-N GETOOF P-ODIREM-N -ANORCEDRIHOS-RJT-I-A UAINIRIARN P-SPAAEIDR UT-NE LOCLIIDA-IONODE-EDIRI INITATE PEEPAATI ONC RPEIPCITITI.NN ADO.DIE.....EDRR N INITIAL -DLTE- CDT1ITE ,T-INTERNCFIP NAL-T - - ADS ELILADRI.N CiDR,TEC TR-RR- SP-E-ARIT INS- OD RI TLER ITA-T ID CE -HHI-EI-TC RSIRE TOREETITITV_10 NDON HHEN 4DNCNST- -DE SNI,IC, J_T-IADD C U MENTOR TRFITERIN .ARO_ICTITCHN TOE U HANIDOICT- 4-LNA,D--YOACAOP-E _LE RO_E OF ODOR.-- -FA4 V T- -TPRUONO 4HPIOUTRA.TR.. CI P-UREHA-LIEIAOI- NOTIE C-DO RC DEC NDO-ETID 2-T1.ARPITRADER - H-HRTD.PRPOEALALIPIOATION AT THETRUTRORNATO S ~~TRUESRITRT-LUIT- ODETO- CRC UH,RM. ETDCDCIT.HH ICC.-

CEST--TD C-RR- FRCTE ORS ANC EA-E UAN P-IE IS TREASO

ANNEX 1 PAKISTAN Chart 6 SALINITY CONTROLAND RECLAMATIONPROJECT (SCARP) MARDAN ProposedOrganization Chart - Design& Construction

WAPDA Notes: Steering Committee 1. Each organizational unit will be assignedthe Chairman necessaryclerical and administrative personnel. Member(W) 2. The Junior Engineersshown in eachunit may General Manager shift to other unitsdependingon the workload. Chief Engineer IPash.) 3. Pakistani counterparts iCp) are shown for each Expatriate lExp). The counterparts would re- | Accounts ceive training as part of their duty. E 4. The Consultant's home office staff will provide Proj. Management PnojectAccountant technical and administrative support to the project. Proj. Director iCpj Assistant Accountant 8 Project Proj, Manager (Exp.) Coordination Committee

Project Project Project General Planning Design Implementation Services

Planning Engineer (Exp.) Design Engineer (Exp.) Construction Engineer (Exp.) Assistant Director Superintending Enginer Superintending Engineer Superintending Engineer (Cp) Senior Administrator

Field Data Open Drains & Personnel& Collection Canals Training

Senior Engineer Senior Engineer Seniorl Engineer Personnel Officer

Jr. Engineer 4 Jr. Engineer 4 Jr. Engineer 4 Jr. Officer 1 Sub Engineer (Ov.) E Draftsman 2 Sub Engineer (Ov) 8 Superintendent 2 Draftsman 2 Assistant 4 Equipment Operator 2

Plan Tile Drains Contract Transportation Formulation T Drains Administration laial Planning Engineer (Exp.) Drainage Engineer (Exp.) Contract Admin. Eng. (Exp) Transort Officer Senior Engineer (Cp) Senior Engineer (Cp) Senior Engineer (Cp) l lfl

Jr. Engineer 2 Jr. Engineer 4 Jr. Engineer 4 Asst. Transportation Off. 4 Draftsman 1 Draftsman 2 Draftsman 4 Foreman t Mechanic 3

L- Project Construction Evaluation Structures Inspection Housing & Stores

Senior Economist Construction Inspector (EXp) Senior Agriculturist Senior Engineer Senior Engineer (Cp) Jurior Engineer

Jr. R.O, 4 Jr. Engineer 4 Jr. Engineer 8 SDO 2 Draftsman 2 Sub. Engineer 16 Sub Engineer (Ov) 4 R.O. (Inspector) 3 Assistant 2 Laboratory Staff a

PERSONNEL SUMMARY Expartriates (Exp.) 9 Reclamation & Project Director 1 Operation Superintending Engineer 3 Sr. Soils Scientist (Cp | Senior Engineer& Sr. Scientist 10 Sril Scientist (Exp.) Senior Economist ,l j S Agronomist & Agricultural Eng. 2 Agronomist 1 Farm Planning Specialist 1 Agricultural Eng. 1 Laboratory Staff 8 Farm Planning Spec. 7 Junior Engineer& RDO. 45 Jr. Engineers 4 Sub Engineer & Draftsman 49 Assistants 4 Administrative Officers 4 Junior Officers 3 Assistants 32 TOTAL 168 World Bank - 19215

89 PAK ISTAN SALINITY CONTROL AND RECLAMATION PROJECT (SCARP) MARDAN Organization Chart: Operation and Maintenanceof the Irrigation and Drainage Systems

Chief Engineer Irrigation Dept. NW FP

Techn ical Administrative Acons Director, Planning, Clector- I Officer I Officer OfDe IJe sign & Hydrology | I~~~~~~~I M~~~~~~~~~~~~~

Northerni Irrigation Circle Central Irrigation Circle Southern Irrigation Circle Development Irrigation Circle Mardan Peshawar Bannu Peshawar Superintending Engineer Superintending Engineer Superintending Engineer Superintending Engineer

Swabi Division Malakand Division | Mardan Irrigation Svvabi Malakand & Drainage Office Executive Engineer Executive Engineer Mardan

0 C w g, . C jcL w c a,> cn~~~~~~~~n~ ~

LLi~4-0 2 T LY m Erm~~~~~~~~~~~~,>W W>JWC A_ X=8

W x~~~~~~~~~~~~~~

D~~~~~~~~~~0 LO

L~~~~~1 VV~~orldBank-19214 ANNEX 1 Cha rt 8

PAKISTAN SALINITY CONTROL AND RECLAMATIONPROJECT (SCARP) MARDAN CroppingCalander

Oct. Nov. Dec. Jan. Feb. Mar. April May June July Aug. Sept

Mai, ! u

K. F Adder _ IUM LLIJ.LIs I. .LIUmULLI

Misi (Pulses) m- _

Wh, it XXs .

VVhr AZC uz, 11m.. amu....

ToL ,cco L!uau. -

Sug; beets * *

FocI er, R. LLILAL _

Mis, (Oilseeds) U _ _

Interplanting Planting Sui wcane J . L ULUU.L Harveting & Ratooning

1EhhEEhIElEl Planting Period

Harveting Period World Bank -19220

91 ANNEX 2 Page i

PAKISTAN

SALINITY CONTROL AND RECLAMATION PROJECT (SCARP) MARDAN

AGRICULTURAL DEVELOPMENT

A. AGRICULTURAL EXTENSION

Present Organization

General

1. Agricultural Extension in the NWFP is controlled by the Director of Agriculture (Extension), Department of Agriculture, in Peshawar. Senior staff include a Deputy Director of Agriculture (DDA) running an Economics and Marketing Wing, a DDA responsible for liaison with the Research Directo- rate, and senior officers responsible for statistics, publicity, horticulture, plant protection and agronomy. Field operations are organized parallel to the administration structure of the province. An Assistant Director is in charge of Soil Conservation.

2. The project lies within the Peshawar Division and extends over the entire Mardan district and parts of the Charsadda tehsil of Peshawar district (about 670,000 ac). Both districts come under the DDA Peshawar. Extension responsibilities in each district fall under an Extra-Assistant Director of Agriculture (EADA), supported by an Assistant Plant Protection Office (APPO). Actual extension work is carried out by Field Assistants (FAs), who are supervised by Agricultural Assistants (AAs). The territory covered by FAs is determined by area and not by the number of farmers within the territory. There are approximately 6 to 7 FAs for each AA. The EADA supervises as to 15 AAs.

Services and Training

3. The principle duties of extension staff are to inform farmers about the day-to-day market situation, to help them obtain loans and to provide sprayers and pesticides. Demonstrations to the farmers center on the use of implements, sprayers and pesticides and in fruit preservation. Other tasks include collection of statistics, weather data, crop areas and yields, organizing and running major pest control compaigns, providing information regarding water supplies and an elaborate program of organizing experimental and demonstration plots.

4. New FAs are given two years of pre-service training at the Agri- cultural Training Institute in Peshawar. After they enter service, about

92 ANNEX 2 Page 2

20 FAs, are selected each season for a two-month's refresher course. Since there are at present about 600 FAs in the province, each FA has a chance to attend a refresher course about once in 15 years. The AAs have Bachelors' or Masters' degrees from the Faculty of Agriculture, University of Peshawar. Their in-service training consists of a twice-yearly briefing session at the main research station in Tarnab. In turn, they run training courses for the FAs in their area before each season.

Housing, Service Buildings and Transportation

5. Housing and Service Buildings. Most staff are expected to make their own arrangements for housing. The FAs are usually posted to their area of origin and reside with their families. The AAs usually live in privately secured accommodations, however, some of the officers residing at the district headquarters and some who live in tehsil centers are able to secure Government-owned accommodations. Stores and offices are generally available at the tehsil level, but usually only for one or two AAs. In the villages, pesticides stores are rented. Many are unsage and unsuitable for efficiently storing chemicals that are apt to deteriorate.

6. Transportation. Except for the EADA and the APPO, no transportation is provided by the Government at the district level. Staff are expected to travel by public transport or bicycles. A system of traveling and daily allowances exists for travel in excess of 10 miles from duty station, but funds are rarely available to meet staff claims in full.

Limitations of the Present Extension Service System

7. The following limitations are inherent in the present organization:

(a) Adequate technical support is not provided for field staff. Specialists are too few in number and all dis- ciplines are not available within the extension service at the district level.

(b) The territory of each FA is determined by area and not by the number of farmers he must service.

(c) The tasks field staff are expected to perform do not differentiate between advice and demonstrations on the one hand and services on the other. The two make conflicting demands on staff time and disposition.

(d) The extention visits are infrequent, poorly planned and therefore have little positive effect on crop yields.

(e) In-service Staff training is inadequate and relies too much on pre-service knowledge. In most cases, the training is out of date and does not provide a base on which to build background and perspective from advisory officers.

93 ANNEX 2 Page 3

(f) The housing situation for lower-grade staff is unsatis- factory and is only marginally better for middle management.

(g) There is a lack of staff mobility; full compensation for absence from home on duty and for using vehicles owned by staff members, which are essential for efficient operation, is not made.

(h) There is insufficient liaison between extension service and the research service.

Proposed Improvements

8. It is considered essential to the success of the SCARP Mardan Project that the NWFP agricultural extension service be improved and operated effectively. Under the project, the method and staff of the extension service would be organized along the lines of a system that has proved successful in neighboring countries and other areas of Pakistan. The system is described in the World Bank publication "Agricultural Extension - Training and Visits System," by Daniel Benor and J. Q. Harrison, May 1977. Its adaptation to conditions in the NWFP and the job descriptions of the various staff grades are found in the "Operating Manual of the Agricultural Extension Service in the North-West Frontier Province of Pakistan." The following paragraphs out- line the additions or changes required to the present organization to enable the Training and Visits (T&V) system of agricultural extension to be operated effectively.

9. The major criteria to be followed in the improved program would include:

(a) increasing staffing levels realistically to meet demands;

(b) relieving staff of non-extension duties essential to the Agricultural Department presently performed by extension staff;

(d) providing the necessary technical backup to field staff in the way of adequate research work and well qualified specialists.

94 ANNEX 2 Page 4

Detailed Features of the Project

Staffing

10. Field Staff. Approximately 124,000 farm families would be covered in the 670,000 ac included in the improved agricultural extension program, 80,000 in the Mardan and Swabi tehsils of Mardan District and 44,000 in the Charsada tehsil. The cropping pattern is complicated and farming intensities are high. A concentrated effort would be required by extension staff to attain the levels of farm production expected with the project. It is proposed to increase staffing density from one FA per about 1,000 farm families to one FA per 800 farm families, which would increase the number of FAs from 137 to 160. One AA would supervise and suport 7 FAs, increasing the number of AAs from the present 18 to 23. The AAs would be supervised by one EADA in each tehsil, for a total of 3 EADAs. As a temporary measure, until the entire extension service is organized on the T&V system, there would be a Deputy Director of Agriculture responsible for the administration and operation of the agricultural extension service in the three tehsils. He would be stationed in Mardan and part of his function would be liaison with the SCARP Mardan Project Director.

11. Specialist Staff. The field staff would be supported by a team of Subject Matter Specialists (SMSs), based in Mardan. They would be supported by a team of Senior SMSs (SSMSs) who would be based at the research stations in Tarnab, Pir Sabak and Mardan. They would provide a continuous link between the extension service and the Research Stations. The SMS team based in the project area would consist of a plant protection specialist, an agronomist, an animal husbandry specialist and a training officer. The SMS Animal Hus- bandry would spend 50% of his time on extension work in connection with day- to-day farm activities, and 50% on other activities for the Department of Livestock Development.

12. The staff of the main provincial research station at Tarnab would support the extension service in matters relating to wheat, tobacco and sugarcane and sugar beet agronomy. The staff of the Maize and Millet Research Station (MMRS) in Pir Sabak would support maize agronomy and pest control. A Senior Training Officer would be provided to work as a staff member of the station and of field staff. The staff at both the Tarnab and the MMRS research stations would be required to provide 120 man-days of direct extension support annully. Transportation would be provided under the project.

13. Information on crop acreages is normally maintained by the Revenue Department and by the Irrigation Department. The Department of Agriculture conducts a series of crop cutting experiments to determine crop yields. Owing to the diversity of crops and the fact that many are harvested over a considerable time, the proper selection of samples and their careful monitoring requires attention over a considerable span of time. Under the project, 12 Crop Recorders would be provided to collect the required data and relieve extension staff of this work. A District Statistical Officer also would be provided, reporting to the Assistant Statistical Officer in Peshawar.

95 ANNEX 2 Page 5

14. Pesticides marketing under the project would take place from eight stores to be provided in each tehsil. The 24 stores would be manned by suitably qualified clerks and supervised by one specially designated FA in each tehsil, who would not have regularly scheduled extension duties.

15. Present and future staffing requirements are shown in Table 1. Salary scales and incremental staff salaries are shown in Table 2.

Staff Housing, Offices and Service Buildings

16. Housing. The project would provide for the construction of suitable housing for all FAs and for about 20% of the AAs and SMSs. The remaining AAs and SMSs, as well as the EADAs and the DDA, who would all be operating out of larger towns or villages, would be expected to find suitable accommodations for rent. To enable them to pay the rentals asked, they would be given an adequate allowance, estimated to be 20% of their salary. However, the SSMSs, who would be stationed at the research stations (para 11), would require project-constructed housing. Details are shown in Tables 3 and 5.

17. Office and Service Building requirements are shown in Table 3. These include 24 pesticide stores and a complex of offices in each of the three tehsils.

Transportation

18. Mobility is essential if staff are to perform duties properly and on time, FAs and Crop Recorders would be provided bicycles. Motorcycles would be provided to the AAs and three of the four SMSs. The SMS in charge of training would be provided a pickup to enable him to carry training aids and other items. The bicycles and motorcycles would be owned by their users, and provisions would be made to enable them to purchase the vehicles in accordance with Public Service Commission rules. Four-wheel drive vehicles would be provided for the three EADAs and the DDA and one each to the Tarnab and Pir Sabak research stations to give mobility to SSMS staff.

19. The costs of operating bicyclesand motorcycles owned by their users were based on the following criteria:

(a) bicycles would be expected to last for five years and one set of tires and tubes would be required each year;

(b) motorcycles would be expected to last five years if used for official purposes only. A rate of Rs 0.25 per mi would cover maintenance, repair and operating costs.

It was assumed that an AA would travel 450 miles per month on duty. The operating costs of all extension vehicles, including pickups and 4WD vehicles, are shown in Table 4.

96 ANNEX 2 Page 6

20. Staff allowances for traveling and house rents (para 16) are estimated in Table 5. All rent allowances and about 50% of the travel and vehicle allowances of the augmented staff are additional to the present budget and therefore treated as project costs.

Staff Salaries

21. Incremental Staff Salaries have been computed on the present National Pay Scale (NPS) for all staff except FAs, who are expected to be advanced from NPS 5 to 9. The Crop Recorders, a new appointment, would be appointed at NPS level 8. The rate for SMSs would be the same as for AAs and SSMSs would be equivalent to DDAs. Staff salary details are shown in Table 2.

Technical Assistance and Training

22. A total of 20 months of consultant time would be included under the project for the services of an agricultural extension and training specialist. The specialist:would serve continuously for 18 months and return for two visits of one month each, after a year's absence. A sugar beet agronomist also would be provided under the project for 21 months to work at the sugarcane and sugar beet research station near Mardan. Apart from investifational work, the agronomist would fill the role of an SSMS, supporting the SMSs and the field statf as well as training the sugar beet botanist to fill this position. Terms of Reference for these positions are included in Annex 3.

B. SEED MULTIPLICATION AND DISTRIBUTION

General

23. Project benefits would be manifest almost entirely through yield increases of the major crops. Increases in cropping intensity or changes in cropping patterns are expected to be marginal (Annex 1, Tables 5 and 6).

24. To achieve the projected yields it will be necessary to improve agronomic practices and to ensure adequate supplies of planting material (seeds, sugarcane sets) with the genetic potential to produce the expected yields.

25. At present, the Sind and Punjab Provinces are implementing an IDA-supported seeds project (Cr. 620-PAK). The project operates within the framework of the Seeds Act of 1975 and contains provisions and standards for a federally controlled Seed Testing Agency (STA), complete with facilities for field inspection and laboratory and ongrowing tests.

26. Under the seeds project, it is planned to market certified wheat seed from the Punjab in NWFP. Although NWFP must eventually set up its own breeding and seed multiplication facilities, this would provide much better

97 ANNEX 2 Page 7 wheat seed for the project area than is available at present. Supplies of sugar beet seed and sugarcane sets are satisfactory and would not limit the attainment of projected yields. However, research evidence from the Pir Sabak, Maize and Millet Research Station (MMRS) indicates that serious attention must be paid to the production of good quality, vigorous maize seed; the inbred varieties currently used, have not shown the required genetic potential. It does not appear feasible to produce the prebasic and basic seed of an open-pollinated crop in an environment different from the NWFP's main maize-producing area, the Vale of Peshawar, which includes the entire SCARP Mardan area.

The Potential Demand

27. The total area under maize grown for grain in the Vale of Peshawar is approximately 290,000 ac. The total annual seed requirement is about 2,600 tons, since it takes about 20 lb/ac of good seed to plant maize for grain. A change of seed is recommended approximately once very five years. Therefore, the theoretical demand is about 500 tons per annum. Since it is most unlikely that every farmer will follow completely the recommended practices - many will buy or exchange once-grown seeds with neighbors - not more than about 300-350 tons of maize seed will be saleable in the next seven to ten years. This is about the smallest economic size for a processing unit.

Seed Production

28. Pre-Basic Seed (known in ISTA terminology as Brreder's Seed) is, by definition, grown under the close supervision of the breeder, to ensure that part of the crop can be re-selected to produce planting material for the following year's pre-basic seed. The most feasible location for growing this seed is at the MMRS in Pir Sabak. The facilities of the station are adequate for the purpose.

28. Basic Seed (ISTA's Stock Seed) has to meet certain quality standards and must also be grown under careful supervision. The MMRS has the area and the capability to grow Basic Seed without additional investment.

29. Certified Seed is the product of Basic Seed and is typically produced by selected contract growers and according to precautions and standards laid down in the Seeds Act of 1975. The fields are frequently inspected, starting before planting, and must be easily accessible.

30. It is normal practice to make arrangements to produce seeds in excess of expected requirement at all stages of the process. This is necessary to safeguard against accidental losses or weather factors. The area devoted to each grade of seed and the expected production would be as follows:

98 ANNEX 2 Page 8

Required For Safety Area Yield Production Next Stage Margin (Ac) (Tons/ac) (Tons) (Tons) (

Pre-Basic 2 1.0 2 0.5 300 Basic 4 1.5 6 2.5 140 Certified 285 1.6 460 350.0 30

Seed Productionand Processing

31. The AgriculturalDevelopment Authority (ADA) would take charge of managing the maize seed production. ADA would appoint a Product Development Officer, who would, in consultationwith the DDA in Mardan, identify suitable contract growers. He would arrange for these growers to receive the basic seed, notify SCA to carry out the necessarypre-planting inspections of the fields and administerthe repurchase of crops that passed field inspection.

32. MMRS would produce the Basic Seed and process it in seed processing plant to be located at Pir Sabak. The Basic and Certified Seed would be tested and supplied to ADA for sale to the growers of certified seed or to farmers.

Seed Certification

33. Certificationis the task of the federallycontrolled Seed Certifi- cation Agency, which would inspect the fields before planting and several times during the growing period of the crop, supervise harvesting and analyze the seed for purity, germination and seedling vigor. The Agency's laboratory facilitieswouLd be adequate for the relativelysmall amount of additional testing required.

Marketing and Distribution

34. ADA hnasa sufficientorganization to market and distributethe maize seed. The ProdiuctDevelopment Officer would promote the sale of certified maize seed to the farmers. Seed would be packed in sealed polyethylenebags of 20 lb (the quantity required for planting 1 ac); the sealing, if sufficiently publishedas a hallmark of quality,would largelyobviate the chances of adulteration.

InvestmentRequirements and Operating Costs

35. The necessaryequipment and operatingcosts for maize seed multiplication and distributionrequirements in the project area are shown in Table 6.

99 ANNEX 2 Table 1

PAKISTAN

SCARP XIARDANAGRICULTURAL EXTENSION PROGRAM

Present and Future Staffing Requirements

Tehsils Additional Mardan Swabi Charsadda Total Requirements Extension Staff Field Assistants

Present 42 41 54 137 23 Future 50 50 60 160 Agricultural Assistants

Present 7 7 4 18 5 Future 8 6 9 23 Extra Assistant Directors =~~~~~~~~~l Present 1- NA NA 1 2 Future 1 1 1 3 Deputy Directors

Present NA NA NA NA Future 1 NA NA I1 Subject Matter Specialists

Present 1 NA NA 1 3 Future 4 NA NA 4 Senior Subject Matter Specialists

Present NA2/ NA NA NA 1 Future 1- NA NA I. Total Extension Staff

Present S51 48 58 157 35 Future 65 57 70 192

Support Staff Requirements (New) Crop Recorders 4 4 4 4 4 Statistical Officer 1 - - - - Storekeepers 8 8 8 24 24 FAs In Charge of Pesticide Marketing 1 1 1 3 3 Total Support Staff 14 13 13 40 40 Total Future Staff Requirements 79 70 83 232 75

1/ For Mardan District. 2/ One new post under project but part-time requirements from six officers in the present organization.

loo PAKISTAN

SCARP MARDAN AGRICULTURALEXTENSION PROGRAM

Incremental Staff Salaries (Rs '000)

Anrrual Year 1 Year 2 Year 3 Year 4 Year 5 Total Rates No. Cost No. Cost No. Cost No. Cost No. Cost No. Cost

Field Assistants 6,660(9) 9 59 18 119 23 152 152 152 634 Agric. Assistants 13,000(16) 3 39 5 65 5 65 65 65 299 SMS 13,000(16) 3 39 3 39 3 39 39 39 195 SSMS 18,000(18) 2 36 2 36 36 36 144 Statistical Officer 13,000(16) 1 13 1 13 13 13 52 Crop Recorders 6,000(8) 4 24 8 48 12 72 72 72 288 EADA 18,000(17) 2 36 2 36 2 36 36 36 180 DDA 24,000(18) 1 24 1 24 1 24 24 24 120 Clerks 6,000(8) 4 24 4 24 4 24 24 24 120

Sub-total 245 404 461 461 461 2,032 1/ Housing and Rent Allowance 116 130 145 145 145 681

Contingency 5Z 19 26 34 34 34 147

TOTAL 380 5601 640 640Q 64Q 2,86(1

l/ laZ for all staff, less 2aZ of staff for vhich housing Is provided.

1_- I-.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~p PAKISTAN

SCARP MARDAN AGRICULTURAL EXTENSION PROGRAM

Cost of Staff Housing and Service Buildings (Rs '000)

Unit Year 1 Year 2 Year 3 Year 4 Year 5 Total Costs No. Cost No. Cost No. Cost No. Cost No. Cost No. Cost

Housing

Agricultural Assistant (Including Office) 53,000 5 795 8 424 13 1,219 SMS (House Only) 47,800 3 143 1 48 4 191 Subtotal 938 472 1,410

To Be Provided Under the Project 20% 188 114 302

SSMS 72,800 - - 2 146 2 146 FA (Including Store) 22,600 70 1,582 70 1,582 23 520 163 3,684 Crop Recorder 21,600 4 86 4 86 4 86 12 258 Contingency 10% 186 193 379 Subtotal 2,042 2,121 606 4,769

Service Buildings

Stores 26,400 12 377 12 317 694 Tehsil Offices 88,800 2 178 1 89 267 Contingency 10% 56 41 97 Subtotal 611 447 1,058 |

TOTAL BUILDING COSTS 2_65 2,568 606 5,827

Maintenance-/ 66 131 146 146 489

0) Calculated @ 2 1/2% of value of all buildings completed and standing by end of previous year. PAKISTAN

3CARP MA.RDANAGRICULTURAL EXTENSION ,PRDGRAM

Vehicle Operating Costs (Rs '000)

5 Total Rate Year 1 Year 2 Year 3 Year 4 Year Per Year No. Cost No. Cost No. Cost No. Cost Uo. Cost Cost 50 163 50 250 Bicycles 310 163 50 163 50 163 50 163 85 27 85 400 Motorcycles 3,150 18 6n 27 85 27 85 27 10 1 10 50 Pickups 12,240 1 lQ 1 10 1 10 1 6 100 430 4 WD 16,560 2 3a 6 100 6 100 6 1O0

245 - 245 1,130 Sub-total - 15Q - 245 - 245 -

15 - 15 70 Contingency - 10 - 15 - 15 -

260 - 260 1,200 Total - - 160 - 260 - 260 -

Notes

Bicycles: (Rs(750:5) + 160 = 310 Motorcycles: (Rs(9000:5) + (450 x 0.25 x 12) 3,150 Pickups: Rs 1.20 x 600 x 12 = 3600* - 12,240 4 WD: Rs 1.80 x 600 x 12 + 3600*= 16,560

*Driver's Salary

41 ui PAKISTAN

SCARP MARDANAGRICULTURAL EXTENSION PROGRAM

Staff Travelling and House Rent Allowance (Rs '000)

Annual Year 1 Year 2 Year 3 Year 4 Year 5 Rate No. Cost No. Cost No. Cost No. Cost No. Cost Total Travelling Allowances FAs 720 129 93 138 99 163 117 163 117 163 117 543 AAs and SMSs 5,400 24 130 26 140 26 140 26 140 26 140 690 SSMS and EADA 3,600 3 11 5 18 5 18 5 18 5 18 83 Statistical Officer 1,800 - - 1 2 1 2 1 2 1 2 8 Crop Recorder 2,160 4 9 8 17 12 26 12 26 12 26 104 DDA 4,800 1 5 1 5 1 5 1 5 1 5 25 Contingency 5% 12 14 15 15 15 71 Subtotal 260 295 323 323 323 1,524 Absorbed by Project 50% 130 147 162 162 162 763

House and Office Rent Allowances (At20% of Salary of Eligible Staff) I DDA NPS_/18 1 5 1 5 1 5 1 5 1 5 25 3 EADA NPS-117 3 4 3 4 3 4 3 4 3 4 20 3 SMS, AA and 1/ Statistical Officer-2/NPS- 16 2 5 3 8 3 8 3 8 3 8 37 Contingency 5% 1 1 1 1 1 5 Subtotal 15 18 18 18 18 87

TOTAL STAFF ALLOWANCES 145 165 180 180 180 865

> 1/ National Pay Scale; see Annex 2, Table 1. (D@ 2/ 20% of total staff of this designation; see Annex 2, Table 3. ANNEX 2 Table 6 PAKISTAN

SCARP MARDAN PROJECT

Personnel Costs. Running Expenses and Expendables (RKa 000)

Y e a r 2 3 4 5 6 Total

Plant Supervisor 18 18 18 18 18 90 Casual Labor 1/ 20 30 50 50 50 200 Grain Purchas- 70 140 238 351 491 1,290 Bag Purchases-, 15 30 51 75 105 276 Market Development 20 20 25 25 30 120 Vehicle Operation 50 50 60 65 75 300 Certification Costs 10 15 20 25 30 100 Confingencies 10% 19 29 44 58 77 227 Subtotal /1 212 317 486 642 846 2,603 Less: Seed Sales- 72 146 248 364 500 1.330 TOTAL RECURRENT 140 171 238 278 346 1.273

Investment Costs in Maize Seed Production (Rs '000)

Total Total Seed Processing and Storage Transport and Auxiliary 5 Maize Cribs-/ 100 Equipment 2 Shellers With Electric Motors 40 2 4WD 140 1 Precleaner and Conveyors 170 1 7-1/2 Ton Truck 150 2 Grain Siloa. 200 1 Camera 2 1 Drying Unit, Complete- 130 1 Projector 2 Perforated Floors for Bins 24 Sundries 10 1 Bagging Unit2 1 14 Spares and parts 25% 7fr Polyethylene Bag Sealer 20 Subtotal 380 Spares and parts 5% 172 Subtotal, Drying 870

l/ Expected sales would be as follows:

Year 2 50 Year 4 170 Year 6 350 Year 3 100 Year 5 250

To produce material for such sales, purchases must be 10% higher. Assuming the consumption price of maize to be Rs 39/md (Rs 1,060/ton), purchase price is taken at Rs 1,275/ton (20% premium) and selling price at Rs 1,380 (30% premium), and the sale of 70% of the dross at 15% below market prices (Rs 900/ton).

2/ 10 kg. polyethylene bags are aasumed to cost Rs 2 each; 100 bags are assumed to be required per ton of seed sold. No bags are required for the purchased grain which would be delivered loose, on the cob, in trucks.

3/ To store a total of 200 tons of unshelled maize; built on plinths, wire netting walls.

4/ 24 ft diameter x 25 ft high, including independent roofing.

5/ Inclusive of alternator for conveyors and fans.

6/ Inclusive of hopper for volumetric bag filling.

NOTE: Total cost of seed component during project implementation - Rs 2.2 M.

105 ANNEX2

PAKISTAN SALINITY CONTRX)L AND RECLAMATION PROJECT (SCARP) MARDAN AGRICULTURAL EXTENSION COMPONENTS ORGANIZATION CHART OF THE EXTENSION SERVICE

Director of Agriculture (Extension)

Divisional DDA's (1 | Agriculturai and Soil ConservatonBrn T raein Wing Project Institute

FA SSA Statistical Officer Wheat SugarCane Maize Sugarbeet F r ~~~~~~~~~~~~~~~~~~~~TobaccoPlantProtection

|DCropDiecorders TrafA

A Aculra A Sabi Mards Agronom

A Field Assi*s*tant FA i/c Plant ] l l : ] . l l l l | | 9 r~~~~~~~~~~~~~~~MakeinTraining

EADAExtenalAssitan Dirctorof gricltuEAAED m

CF CFl | ContactFarmer 1 | CF l l CF | | i~~~~~~~~~~~~~~~~~~530) toreetrD LepWrldBak

DOA Deputy Director of Agriculture EADA External AssistantDirectorof Agriculture AA Agricultural Assistant FA Field Assistant VVorldBank -19006

106 ANNEX 3 Page 1

PAKISTAN

SCARP MARDANPROJECT

Terms of Reference for Consulting Services

A. Consulting Services for Project Design and ConstructionSupervision

1. Duty Station

Lahore aLndPeshawar, Pakistan. Consulting staff providing planning and design assistance and preparing tender documents for civil works and equipmentwould be stationed in Lahore in order to be convenient to WAPDA's headquartersoffice. Constructionsupervision and project implementationpersonnel would be based in Peshawar.

2. Date Recquired

Late 1978 or early 1979.

3. Duration

Six years. The requirementsfor each particular technical discipline would vary within the total contract time period.

4. Function

The consulting firm (consultant)would directly assist WAPDAin the preparationof specifications,designs, tender documents and detailed drawings required for constructionof the project, as well as in constructionsupervision. The consultant also would assist in the preparationof a feasibilityreport for the remaining 210,000 ac CCA in the Mardan area not taken up by the present project.

The main project works to be designed and constructedand the programs to be undertakenwould include the following:

(a) The installationof tile drains in areas with water table depths less than 5 ft, altogether in about 110,000 ac;

(b) Remodeling of existing surface drains to carry storm water and tile drainage flows in about 185,000 ac;

(c) Modificationof the 2.1 mi long Benton Tunnel, near the head of the USC, to increase the discharge capacity from 1,800 cusecs to about 2,060 cusecs;

107 ANNEX 3 Page 2

(d) Remodeling of the LSC irrigationsystem to provide increased capacity and improve canal operationalefficiencies;

(e) Reclamation of about 25,000 ac of abandoned and/or marginally productive saline-alkalineland;

(f) Improvementof on-farm water management efficiency through watercourse improvementson 143,000 ac and precision land leveling on 35,000 ac;

(g) Improvementor constructionof about 100 mi of rural roads to handle increased inputs and outputs expected with project development;

(h) Monitoring of drainage flows, water table depths and land reclamationprogress;

(i) Provision of equipment and vehicles for construction,O&M, agriculturalextension, monitoring programs and consultants use; and

(j) The preparationof a feasibilityreport for the remaining 210,000 ac CCA of the USC command area.

5. Services Required

A total of about 420 - 450 man-months of technicalassistance is expected to be required during the six-year project implementation period. The services to be provided by the consultantwould be as follows:

(a) Management:

(i) Preparationof a project Definite Plan Report;

(ii) Preparationof specificationand constructiondesigns, cost estimatesand tender documentsfor projectworks;

(iii) Evaluation of tenders, supervisionof construction, contract administrationand the initial O&M of project works;

(iv) Preparationand executionof a trainingprogram for pro- fessionalWAPDA staff assigned to the project; and

(v) Preparationof a feasibilityreport for rehabilitation and developmentworks in the remainingUSC command area (210,000ac). 108 ANNEX 3 Page 3

(b) Planning:

(i) Preparation and execution of a field data collection program to provide the data necessary for preparation of the two reports;

(ii) Formulationof the definite project plan, its works and costs; and

(iii) Formulation of alternative plans of development for the remaining Mardan area.

(i) Preparing final designs, layouts and tender documents for remodeling or rehabilitatingexisting open drains and irrigation canals. Open drainage requirementswould include the design and layout of field drains in each irrigation outlet area. Irrigation system layout and design would provide for a new parallel system, where more economicallyand technicallyviable to do so, and would include design and layout of main canals, branches, distributariesand minors down to watercourses;

(ii) Preparing final designs, layouts, and tender documents for subsurface (tile) drains. The consultant would assign an experienced drainage design engineer to supervise this work; and

(iii) Preparing final designs for a complete range of standard drain and canal structures and for all other structures.

(d) Construction:

(i) Providing the necessary field surveys to accurately locate all proposed structures:

(ii) Maintaining records of the progress of construction and administeringthe terms of the various contracts. A ContractsAdministration Engineer would be assigned by the consultant to assist with this work;

(iii) Inspecting the work of each contractor to insure com- pliance with designs and specifications. The consultant would assign an experiencedConstruction Inspector to this work; and

(iv) Reclaiming salt-affectedlands through a reclamation program (soil ammendmentsand leaching). An experienced soil scientistwould assist with this program.

109 ANNEX 3 Page 4

6. Qualifications

The consultant shall assign senior, qualified personnel to the work with the following minimum experience levels:

(a) Project Manager: a minimum of 15 years experience in developing large-scale irrigation and drainage projects, with at least 5 years as Project Manager.

(b) Chief Planning Engineer: a minimum of 10 years experience in planning large-scale irrigation and drainage projects,with at least 5 years as Chief Planning Engineer.

(d) Chief Design Engineer: a minimum of 15 years experience in designing irrigation and drainage systems, with at least 5 years as Chief Design Engineer.

(e) Drainage Engineer: a minimum of 10 years of recent experience in the design and constructionof closed drains.

(f) Chief ConstructionEngineer: at least 15 years experience in constructingirrigation and drainage projects, with at least 5 years as Chief ConstructionEngineer.

(g) Contracts AdministrationEngineer: at least 10 years experience in the preparation and administrationof constructioncontracts.

(h) ConstructionInspector: at least 10 years experience in general constructionwork, with 5 years as a Construction Inspector on irrigation and drainage works.

(i) Soil Scientist: a thorough knowledge of soils and reclamation procedures with broad experience in soil reclamationwork.

110 ANNEX 3 Page 5

B. AgriculturalExtension and Training Specialist

1. Duty Station

Peshawar, Pakistan, attached to the office of the Deputy Director of Agriculture at Mardan.

2. Date Required

July 1, 1979

3. Duration

20 months, covering a period of 18 months from the date of appointment and two periods of one month each starting April 1, 1982 and April 1, 1983.

4. Function

(a) l'oadvise and assist in the preparation and organizationof the training program for staff at all levels;

(b) To advise and assist in the organizationand operation of the extension service according to the T&V system; and

5. Duties

(a) Training: The specialist would be working primarily with the Senior Training Officers in the project area and the SMS (Training)at Peshawar and Mardan. He would also have frequent contact with the FAs and their supervisors. His duties would include but not be confined to the following:

(i) advising and assisting in preparing the framework of the training program for all regular training sessions (fortnightlyFA training and the bi-annual meetings for all staff);

(ii) training the trainers (SSMS, SMS, AO) in teaching methods based on workshop and practical training as well as lecturing;

(iii) working with the ADAs, SSMS, and DDA identifying technical training needs of SMSs and AOs as they arise, and organizing appropriate courses, either within the extension service or through the Faculty of Agriculture of the University of Peshawar.

13-1 ANNEX 3 Page 6

(iv) setting out the technique of farmer meetings and training the FAs and AOs in their effective execution; and

(v) preparing a training manual; the manual to focus on teaching methods and a framework into which technical details can be fitted.

(b) Extension Operation: In connectionwith the operation of the extension service, the specialistwould work with the Secretary for Agriculture and the Deputy Director of Agriculture at Mardan. His duties would include but not be confined to:

(vi) advising on the field-leveloperation of the service, especially the detailed scope of work of the FAs and the AOs;

(vii) assisting the ADAs and DDA in organizing logistic support of all their staff as regards housing, transport and other support activities;

(viii) reviewing reporting requirements to ensure their adequecy yet prevent them from becoming a burden; and

(ix) using his best efforts to establish a good working relationship between the SCARP Mardan Project staff, the extension service staff and the research staff.

6. Qualifications

He must have a degree in agriculture and have had at least 5 years direct operating experience in an agriculturalextension organization. Training in and exposure to extension education is essential. He must have had experience in an agriculturaland cultural environmentsimilar to Pakistan.

112 ANNEX 3 Page 7 C. Sugar Beet Agronomist

1. Duty Station

Tarnab AgriculturalResearch Institute, NWFP, Pakistan

2. Date Required

October 1, 1979

3. Duration

21 months.

4. Function

(a) To provide technical advice on sugar beet production in the project area;

(b) To develop local expertise in sugar beet agronomy; and

5. Duties

(a) Review the natural environment of sugar beet cultivationand existing factors (varieties,cultural and field management practices, rotation, etc.) related to sugar beet production at the farm level;

(b) Assist in formulatingand conducting field trials and demonstrations leading to more effective farming techniques;and

6. Qualifications

The Sugar Beet Agronomist should have an advanced degree in agriculture and at least five years of field experience in sugar beet production. Working experience under social and climatic conditions similar to those in the project area would be preferable.

113 PAKISTAN SALINITY CONTROL AND RECLAMATION PROJECT(SCARP) MARDAN PROPOSEDMANPOWER SCHEDULE FOR PROJECTCONSULTANTS

1978 1979 1980 1981 1982 1983 1984 1985 F~~~~l A ii A J.- AP J- On? a APinJ ¶- Jan- Apr- July- Oct- J. W oy t .. w uy .t Juy_c-J. w uyOt Expatring e Personnel

Projet Manager Chief Planning Ee.in1eer PlanningEngineer Chief DesignEngineer Tile Drainage Engineer Chief Conn. Engineer Cnntracts Administration Engineer Constretion Inspectors Soil Scientist Home Office & Short Termn Field Assignments

World Bank - 19223 ANNEX 4

PAKISTAN

SCARP MARDAN PROJECT

List of SelectedDocuments Available in Project File

Selected reports and studies on the agriculturalsector:

1. Pakistan DevelopmentIssues and Policies IBRD Report No. 1924-PAK, April 7, 1978.

2. Pakistan - Special AgriculturalSector Review IBRD Report on. 922a-PAK, January 28, 1976.

3. Programme for the Development of Irrigationand Agriculturein West Pakistan; ComprehensiveReport: Vol. 18 "Peshawar and Swat Regional Development,Vol. 10 "WatercourseStudies,"prepared by Sir Alexander Gibb & Partners, Inter-LandDevelopment Consultants, N.V. Hungting Technical Services Limited, May 1966.

l!.Selected reports and studies relating to the project:

1. Project Planning Report of Mardan Salinity Control and Reclamation Project Phase I, prepared by WAPDA with the assistance of Harza Engineering Company Int., December 1977.

2. Scheme for StrengtheningAgricultural Extension Staff in Mardan SCARP area, Department of Agriculture, GONWFP, Peshawar.

C. SelectedworkirLg papers and manuals, including materials needed for project implementation:

1. Appraisal of the Khairpur Tile Drainage and Irrigated Farming Development Project (KhairpurII) Report No. 1062a-PAK,World Bank, June 14, 1976.

2. Appraisal of the Salinity Control and Reclamation Project (SCARP) VI, Report No. 1540a-PAK,World Bank, November 10, 1977.

3. AgriculturalExtension: The Training and Visit System, by Daniel Benor and James Q. Harrison, World Bank, May 1977.

4. A system for Monitoring and EvaluationAgricultural Extension Projects. World Bank Staff Working Paper 272, Michael M. Cenea and Benjamin J. Tepping (adapted to conditionsin Pakistan).

5. OperationalManual for the AgriculturalExtension Service in the NWFP.

6. Detailed drainage design criteria.

7. Production capacity of the sugar industry in the project area.

8. Basic agriculturaldata for the crops grown in the project area.

9. Agriculturallabor supply and demand.

10. Detailed financial crop budget analysis.

11. Basic data for estimatingthe economic cost of the project.

115

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