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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 (prin- cipally cotton and rice). In the last two decades, GOP has endeavored to stimulate agricultural production by accelerating the development of irri- gation; reclaiming saline and waterlogged areas; introducing high yield- ing 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 indus- try. 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
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