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DOCUMENT OF INTERNATIONAL BANK FOR R]ECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized Not For PublicUse

Report No. PA-148A Public Disclosure Authorized

YAQUE DEL NORTE IRRIGATION PROJECT

DOMINICAN REPUBLIC Public Disclosure Authorized

December 22, 1972 Public Disclosure Authorized

Latin America and The Caribbean Projects Department Agriculture Projects Division

This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. Currency Equivalents

Except where otherwise stated all figures are quoted in U.S. dollars (US$)

US$1 = RD$1

Weights and Measures

1 kilometer (km) = 0.62 miles 1 millimeter (mm) - 0.039 inch 1 meter (m) = 3.28 feet 1 hectare (ha) - 10,000 square meters - 2.47 acres 1 square kilometer (km2) _ 100 ha - 0.386 square miles 1 cubic meter (m3) - 1.31 cubic yards 1 million cubic meters 3 (Mfm) - 810 acre feet 1 metric ton (ton) - 2,205 lb 1 kilogram (kg) - 2.2 lb 1 ton paddy - 650 kg rice (white)

Principal Abbreviations and Acronyms Used

INDRHI - National Institute for Hydraulic Resources - Instituto Nacional de Recursos Hidraulicos IAD - Dominican Institute for Agrarian Reform - Instituto Agrario Dominicano CDE - Dominican Corporation for Electric Power - Corporaccion Dominicana de Electricidad BNA - National Agricultural Bank - Banco Nacional Agricola FETAB - Cooperative Union of Tobacco Producers - Federacion de Tabacalero INSPRE - National Price Stabilization Institute - Instituto Nacional de Stabilizacionde Precios ICO - InternationalCoffee Organization SOGREAH- Societe Grenobloise d'Etudes et d'Applications Hydrauliques, France CIEPS - Ingenieros,ConsF.tores y Proyectistas, Mexico

Fiscal Year

Jano4ry 1 - December 31 DOMINICAN REPUBLIC

AN APPRAISAL OF THE YAQUE DEL NORTE IRRIGATION PROJECT

TABLE OF CONTENTS

Page No.

SUMnARY AND CONCLUSIONS ...... i-ii

I. INTRODUCTION ...... 1

II. BACKGROUND...... I

II. THE PROJECT AREA ...... , 2 General ...... 2 Topography ...... 2 Climate ...... 2 Soils ...... 3 Land Tenure ...... 3 Irrigation Facilities ...... 4 Agricultural Production and Research ...... 4 Transportation and Marketing ...... 4 Enviroinment and health ...... 5

IV. THE PROJECT ...... 5 Description ...... ------5 Project Works ...... 6 Water Supply, Demand, Quality and Rights .. 7 Engineering Design ...... 9 Cost Estimates ...... 9 Financing ...... 10 Procurement ...... 10 Disbursements ...... 10 Accounts and Audits ...... 10

V. ORGA4IZATION AND MANAGEMENT...... 10 Implementation of Project Works ...... 10 Agricultural Development ...... 11 Project Coordination ...... 11 Extension Services ...... 12 Agricultural Credit ...... 12 Land Acquisition and Redistribution .. 13 Consulting Services ...... 14 Training ...... 14 Operation and Maintenance ...... 14 Recovery of Costs ...... 15

This report is based on the findings of an appraisal mission consisting of Messrs. A. Otten, M. Fireman, W. A. Lucas (IDA) and H. Nelson (Consultant). -2-

Pa8e No.

VI. PRODUCTION,MARKET PROSPECTS,PRICES AND FARM INCOME ...... I... 16 ProduCtion ...... ,...... 16 Market Prospects ...... ,,. 17 Prices ...... *..... 17 Farm Income ...... 18

VII. BENEFITS AND JUSTIFICATION ...... 18

VIII, RECOMM4NDATIONS...... , ...... 19

ANNEXES 1. Soils

2. Existing Irrlgation Development

3. Selection and Formulationof the Project and Project Works A. Selection and Formulation B. Proposed Project Works

4. Water Supply, Demnd, Quality and Rights 5, Coat Estimates

6. Estimated Schedule of Expenditures and Disbursements 7. Consultant Services 8. Operation and Maintenance

9. Present and Projected Cropping Patterns 10. Marketing 11. Farm Budgets 12. Economic Analysis

Chart Number 7217 - Construction Schedule Chart NMuber 6892 - Organization Map DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATIONPROJECT

SUMMARY AND CONCLUSIONS i. This report appraisesa project for irrigationdevelopment in the Yaque del Norte River valley, for which IDA assistanceof US$13.0 million is proposed. The Inter-AmericanDevelopment Bank (IDB) would provide an addi- tional US$13.0 million under a parallel financingagreement. The total loan would be US$26.0 million. The projectwould increase agriculturalproduction in the valley by replacingor improvingthe existingbut inadequateirriga- tion systems,which serve about 15,000 ha, and by bringing 13,500 ha of new land under irrigation. It would be the Bank Group's first irrigationde- velopment project in the DominicanRepublic and its second operation in the agriculturalsector. In 1971 IDA extended a credit of US$5.0 million for a livestockdevelopment project (Credit245-DO), which is underway at the present time and making satisfactoryprogress. ii. During recent years the increase in agriculturalproduction has barely kept pace with the growth in population. Demand for importedagricul- tural products has been increasingat a rate of 20% per annum since 1967, as productionhad dropped considerablyfollowing the 1965/66 disturbances, and Government is giving strong support to agricultureand irrigationdevel- opment in an effort to diversifyand increasedomestic food production. It is also striving to maintain continuedgrowth in the export of agricultural products,which constitutemore than 90% of total exports. Diversification of food crops, which is greatly aided by irrigation,is also urgently needed to improvenutritional standards in the country. iii. The valley of the Rio Yaque del Norte, in the northwesternpart of the country, is one of the Republic'smost importantareas for agriculture. With relatively good soils and an adequatewater supply, irrigationhas been practiced in the valley since 1920 but existing systems in the project area are inadequateand command only about one half of the potentiallyproductive land. Furthermore,the lack of suitabledrainage systemshas created saline conditionsin an area of about 8,000 ha which have seriouslyreduced the productivecapacity of these lands. The proposed project would provide a modern irrigationand drainage system for 23,000 ha on the right bank of the river and an improvedwater supply to 4,500 ha under an existing system on the left bank. Works would include a diversionand desilting structure, irrigationand drainage systems, and on-farm development. The project would also includesupport for agriculturalextension, research and credit and provide equipmentand facilitiesfor operationand maintenance. Concurrently with implementationof the project, Governmentwould carry out an agrarian reform program for acquisitionand redistributionof land according to a plan to be submittedto IDA. Under recentlyapproved legislationit is estimated that between 7,000 to 10,000 ha in the project area would be expropriated and divided into small holdings whereby about 2,000 to 2,500 presently landless familieswould receive land titles. - ii - iv. The estimatedproject cost is US$39.0 million, with an estimated foreign exchange component of US$23.0 million, or 59% of the total. IDA anc' IDB financingwould cover all foreign exchange expendituresand US$3.0 mil- lion of local currency costs on civil works. The balance of local costs would be financed by Government. The total cost of civil works, on-farm works and equipment to be put out to internationalcompetitive bidding would be US$26.0 million. Land acquisition and settlement (US$3.2 million), build- ings (US$0.2 million), consultant services (US$3.1 million) and contingencies (US$6.5million) account for the balance of project costs. v. The Instituto Nacional de Recursos Hidraulicos (INDRHI) would be responsiblefor implementingthe project and for operation and maintenance. Due to limitationsof staff, INDREI plans to engage a consultantfirm to take responsibilityfor engineeringand supervisionof constructionbut it would retain authority for final approval of tender documents and construction contractsand for managementof funds. The Ministry of Agriculturewould have primary responsibility for coordinating the extension, research, and credit activitieswhich would be expanded to meet the project needs. T1'ls would be accomplishedthrough a coordinatingcommittee that would include representatives from Banco Nacional Agricola (BNA), INDRHI, and the Instituto Agrario Dominicano (IAD). Technical assistance for this phase would be provided by a consultantfirm specializingin agriculture. The Tobacco Institute,the Rice Growers Associationand commercialprocessing compani.es in the area would also participatein providingresearch and extension assistance. vi. At full development in 1985, the net annual value of producLioz,, primarily from rice, sugarcane and tobacco, is expected to reach RD$ 10., million, compared with an expected level of RD$ 2.8 million without the project. At forecasted world market prices, the economic rate of return on the project would be 14%. The project would more than double employment opportunities from a present level of about 4,000 man-years to about 8,500 man-years; most of the additional labor requirements would be met by the grossly underemployed labor force in the area. Most of the project's beneficiaries would be smallholders having received land under the land reform; expected farm incomes would vary widely according to farm size and cropping pattern, but would, on average, increase threefold when compared with pre-project conditions. Operation and maintenance costs for the irrigation network would be fully recovered, while the level of investment cost recovery would be determined by a water charges study to be carried out under the project. Foreign exchange savings and earnings would result both from the expansion of import substitutioncrops and the promotion of export crops, and are expected to increase fro..i RD$ 1.3 million per annum at the end of the construction period to RD$ 8.5 million per annum at full development. vii. With assurancesobtained during negotiations,the project is suitable for an IDA credit of US$13.0 million. The borrower would be the Governmentof the Dominican Republic. DOMINICANREPUBLIC

YAQUE DEL NORTE IRRIGATIONPROJECT

I. INTRODUCTION

1.01 The Governmentof the Dominican Republic has requestedIDA assistance in financingconstruction of the Yaque del Norte IrrigationProject in the northwesternpart of the country. This would be the second project in the agriculturalsector to receive financialassistance from IDA and the first one for irrigationdevelopment. In 1971, IDA extended a credit of US$5.0 million for a livestockdevelopment project (Credit 245-DO) to assist about 260 ranchers,as the first phase of a long-termprogram to increase the production of beef and milk. This project became effectiveon October 15, 1971. After a slow start in establishingthe organizationand administrativeprocedures to implement the project, performance has improved and disbursements are generally in line with the appraisal estimates.

1.02 An initial feasibilitystudy for improvementand extensionof existing irrigationsystems in the Rio Yaque del Norte valley, downstream from the city of Santiago,was undertakenin 1966 by SOGREAH, a French consultantfirm, under a UNDP-assistedproject, with IBRD as the executing agency. The project proposed by SOGREAH, based on run-of-riverdiversions, was appraisedby the Bank in 1968. However, since Governmentdecided to proceedwith constructionof Tavera dam on the Rio Yaque del Norte, the proposed project had to be reformulatedand the basic data re-examined. In 1969 the Government thereforecontracted CIEPS, a Mexican consultantfirm, to undertake a feasibility study taking into account the regulation of the river flow by Tavera dam and reservoir. The CIEPS feasibility report, completedin 1971, constitutedthe basis for the proposed project.

1.03 This report is based on the findings of an appraisalmission that visited the area in March 1972. The mission includedMessrs. A. Otten, M. Fireman and W. A. Lucas (IDA) and H. Nelson (consultant).

II. BACKGROUND

2.01 Agricultureis the dominant sector of the economyaccounting for 25% of GDP, about 60% of total employmentand more than 90% of the value of commodityexports. Of the total land area of 4.8 million ha, somewhat less than one half is in farms and only about one third of the farm area is cultivated. Much of the unused land is owned by the state or by absentee individuals or corporations. Typically, the average farm size is small, with farms smaller than 5 ha, accounting for about 86% of the total but less than 20% of the total farmed area.

2.02 Leading agriculturalproducts are sugar, coffee, cocoa and tobacco representingtogether about 85% of all exports and cassava, plantain, peas, peanuts, tropical fruits and livestock products, principally for the domestic market. With a rapid increase in demand for agricultural products and the slow growth of domestic production, the imports of agricultural produce, such as corn, beans, edible oils and processed foods, have increased at the average rate of 20% per year since 1967.

2.03 Despite a heavy inflow of developmentaid and technical assistance after 1965, the record of agriculturalproduction over the 1960's has generallybeen poor. The increase of agriculturalproduction has been hampered by an antiquatedland tenure system, small farm size, absentee manage- ment, poor productionand marketing technology,the absence of medium- and long-term credit facilitiesand extension services, the inefficientuse of water resources and the uncoordinated activities of numerous poorly managed and poorly staffed public agencies. With the help of a USAID agricultural team, many of the obstacles in the way of raising agriculturaloutput and productivityhave been clearly identified. The proposed Yaque del Norte irrigationproject, which would emphasize the implementationof the agrarian reform program,make better use of existing irrigationfacilities and bring a significantarea of new land under irrigationwould be an important step in Government'soverall program for acceleratingagricultural production.

III. THE PROJECT AREA

General

3.01 The project area is located in the northwesternpart of the Dor4-ican Republic in the valley of the Yaque del Norte River, one of the most important areas for agriculturalproduction in the country. The entire Yaque del Norte basin covers 7,300 km2, of which about one-fourth is in the mountainous catchmentarea upstream from the city of Santiago and about equally diviuex between the drainage basins of the Bao and Yaque del Norte rivers, which Join just above Santiago. The zone of agriculturaldevelopment in the valley extends downstreamfrom Santiago for about 110 km to Monte Cristi on the coast. The total cultivatedarea is estimatedat 80,000 ha, part of which is under irrigationfrom 12 main gravity systems and many individualdiversion or pumping systems. (See Map IBRD 10162)

Topography

3.02 Topographyrelief in the project area varies from moderatelyhilly and undulatingin the upper part of the valley to uniformly flat in the lower part. In the upper part both the right and left banks are characterizedby undulating valley lands with slopes of 3% to 5% and numerous natural drainage channels which separate the irrigable areas into irregularnon-contiguous zones. In the vicinity of Villa Bisono on the right bank, the terrain becomes more uniform with a transverse slope of 2% to 2.5%. This is the beginning of a large flat contiguousarea that extends westward to well beyond the boundary of the project area and has no topographiclimitations for irrigation.

Climate

3.03 The climate in the project area is tropical and semi-arid and is suited to a wide range of crops; however, there are minor differencesin - 3 - climate between the upper and lower parts. At Monte Cristi on the coast, averageminimum and maximum temperaturesrange from 20°C to 340C and average annual rainfall is about 700 mm. At Santiago, the upper end of the project area, the range is 22C to 31C with rainfall averaging 1,000 mm. Rains occur mainly from April throughJune (300 mm) and from September through November (280 mm). December throughMarch is normally very dry as is July and August. A detailed study of the hydrologicalbalance between evapotran- spirationand precipitationindicates an annual deficiencyin rainfall for field crops of about 1,000 mm at Monte Cristi, 1,100 mm at Valverde in the middle portion of the valley and 640 mm at Santiago. Irrigationwould thereforeincrease yields, raise cropping intensityand widen the range of crops that could be grown.

Soils

3.04 Soils in the project area consist of two main groups. The residual soils in the upper part of the valley were developedfrom calcareousmarine sediments. These are deep, medium to coarse in texture,and quite permeable. Soils in the lower valley are mainly alluvial, depositedby the Rio Yaque del Norte and its tributaries;these are finer textured,but occasionally stratifiedwith sand and gravel layers and have sufficientpermeability. Field trials on a variety of crops and soil types show low response to potassium,a limited response to phosphorous,and a high response to nitrogen fertilizers,indicating that adequate fertilitycould be maintainedwith irrigatedcrops.

3.05 A land classificationhas shown that about 85% of soils in the project area are suitable for irrigationpurposes. This includes some 8,000 hectares in the Laguna Salada area which are saline, salts originating principallyfrom residual soils of marine deposition. The concentrationof sodium in some soils is such that, by definition,they are saline-alkalibut investigationshave shown they had none of the undesirablephysical characteristicsassociated with alkali. All soils are sufficientlypermeable to be leached in the course of irrigationwhich would adequatelycorrect existing conditions. Details are given in Annex 1.

Land Tenure

3.06 The estimatedrural populationin the project area is 25,000. Also within the projectboundaries are the city of Santiago and the towns of Navarrete,Valverde and Esperanzawith some 160,000 inhabitants. With 7 persons each, there are about 3,500 families in the rural area; only 900 of these are owner or tenant farmerswhile the remaining 2,600 families have little more than home gardens and depend for their income on seasonal employ- ment mostly at harvest time. Furthermore,about 60% of all farm familieson cultivatedland have holdings of less than 4 ha and occupy about 3% of all farmed lands; by contrast,holdings exceeding50 ha and occupying 55% of all cultivatedlands are owned by 6% of the farm families. The predominance of small farms places a serious limitationon productionand forces many families to live at a bare subsistencelevel, while at the same time large holdings are not fully utilized. -4-

IrrigationFacilities

3.07 Within the project area, existing irrigationsystems on the left bank command an area of about 7,000 ha and those on the right bank about 17,000 ha. These systems constructedbetween 1920 and 1940, all suffer from inadequate control of canal flows and unreliablewater distribution. Siltationof the main canals is a serious problem reducing canal capacitiesand making constant maintenancenecessary. Drainage systems have not been provided, resulting in waterloggingand progressivesalinization of potentiallyproductive lands. At present, only about 12,000 ha of the total area commandedcan be adequately irrigated. Details are given in Annex 2.

AgriculturalProduction and Research

3.08 Sugarcane (2,200 ha), rice (7,400 ha), and plantains (2,300 ha) togetheroccupy about 80% of the irrigatedarea. Sugarcane production is confined to a Government-ownedplantation, with relativelyhigh yields, averagingabout 100 tons of cane per ha. Rice is the farmers' main cash crop, yielding only 1.6 ton of paddy per ha. Plantains are produced commerciallybut mostly serve as the principal subsistencecrop, with yields averaging 15,000 stems per ha. Some tomatoes are also produced under contract with two canning factories in the area. Tobacco is the main dryland crop and although yields are low (between 0.85 and 1 ton/ha depending upon ;he varieties cultivated),quality is excellent and, with the introductionof light tobacco varieties, the area planted has grown rapidly in the last three years.

3.09 A considerableeffort on crop research has been underway over the past four years. The National Rice Institute,aided by Taiwanese technicians is working on improved domestic varieties and the Tobacco Institutehas introducednew and better varieties. In addition,a team of UNDP/FAO experts, in associationwith the Ministry of Agriculture,has been carrying out research on a variety of crops such as sorghum, peanuts and beans, and, based on its results, has initiateda small scale extension program in the project area.

Transportationand Marketing

3.10 Two main highways from Santiago to Monte Cristi serve the project area. The one on the north side of the river, is gradually being reconstructed as a four lane expressway and is an important link in the overall network in the country. The highway on the south or left side of the river is two lane and paved but in poor condition. These highways are interconnectedwithin the project area by two paved roads crossing thc river at Esperanza and Valverde. A network of secondary roads serves all parts of the project area; some are paved but most are gravel surfaced or unsurfaced. The project area is connected to other parts of the country by a new paved highway to Puerto Plata, the main port on the north coast, and by the principal highway that connects Santiago to Santo Domingo, the capital city. All highways and secondary roads in the project area are in need of maintenance or reconstruction but the overall system is adequate for project needs. 3.11 Marketingof produce is largely in the hands of middlemenas few cooperativesare functioningin the area and most farmers do not have their own means of transportingproduce from farm to market. As a result, margins between farmgate prices and factory or market prices are often considerableespecially if farmers contract to middlemenbefore harvesting. These excessivemargins are reduced only when farmers are able to contract directly with the processor,such as is the case for tomatoes produced for canning.

Environmentand Health

3.12 The Yaque del Norte catchmentarea is mainly located in the Cordillera Central,a mountainous region with steep slopes and narrow valleys. Part of these lands have been deforestedand settled, and, although strict laws pro- hibit further deforestationand settlement,it continues in remote areas. This has resulted in increasedsediment loads particularlyin the Bao River, an importanttributary to the Yaque del Norte. Government is planning,however, to set up soil conservationprograms to prevent further erosion and to reduce accumulationof soils in storage reservoirs.

3.13 There are no importantendemic diseases in the region, and the impact of increaseduse of pesticidesand phosphorousfertilizer residuals would be insignificant. It is expected, in fact, that by draining low-lying,waterlogged areas, health and working conditionswould actually be improved as a result of the project.

IV. THE PROJECT

Description

4.01 The proposed projectwould involve constructionof a new irrigation and drainage system to replace the existing systems on the right bank of the river downstreamfrom Santiago. It would provide a full water supply to 27,500 ha (12,000ha are presently irrigated),consisting of 4,500 ha under the left bank systems, which would continue to operate as at present, and of 23,000 ha on the right bank.

4.02 Project works are summarizedbelow and more fully described in Annex 3. They would include:

(a) a headworks on the Rio Yaque del Norte at Santiago, consisting of a diversionweir, intake structure,and desiltingworks;

(b) a 73-km lined main canal;

(c) a system of lined secondarycanals with outlets to 40-ha blocks;

(d) on-farm development within the 40-ha blocks consisting of tertiary irrigation and drainage canals and land-leveling;

(e) a system of principaland secondarydrains, using rehabilitated natural drains where possible; - 6 -

(f) a pumping plant to serve about 1,600 ha above the main canal;

(g) 375 km of gravel-surfacedroads along the main and secondary canals; and

(h) offices and dwellingsfor operationand maintenancestaff, and a telephonesystem.

4.03 The projectwould also includean agrarian reform program to expro- priate large holdings and redistributethe land to landless families. Consult- ants would be engaged for engineeringand supervisionof surveys, design, and construction. Technicalassistance for extension services,credit, marketing, formationof cooperatives,operation and maintenanceand agrarian reform would be made available. In-servicetraining for local staff working with the consultantswould also be provided. Operationand maintenance equipmentand vehicles for project personnelare included.

4.04 Surveys and design work for the project would be initiatedduring the first half of 1973 with constructionexpected to start about one yea. later and be completedby the end of 1978. The agriculturaldevelopment phase would begin late in 1974 and extend until the end of 1979, or one year beyond completionof the civil works and on-farm development. A proposed construction and developmentschedule is presented in Chart No. 7217.

Project Works

4.05 Headworks. The headworkswould consist of a reinforcedconcrve t: masonry diversionweir across the river, a sluice structurewith radial gaz;es, a desiltingworks and the intake structuredesigned for 40 m3/s. The diversio;. weir would be designed for a dischargeof 1,800 m3/s which is estimatedas the maximum 100-yearflood. The structurewould rest on a massive shale formationwhich would be stable and safe. The desiltingworks and diversion intake would be constructedon the left bank of the river. This arrangement would avoid urban developmenton the right bank and take advantageof a large loop or bend in the river that would provide the grade necessaryto discharge the collected sedimentsfrom the settling basins back into the river.

4.06 Main Canal. The first 3.5 km of main canal would run along the left bank. This canal sectionwould also include the intake structure for the left bank (Bogaert)canal. At 3.5 km, the main canal would cross the river by means of a large inverted siphon and thence througha 600-m tunnel in a low range of hills to finally reach the irrigablearea. The pumping plant to supply about 1,600 ha above the main canal, would be locatednear the tunnel outlet. From this point the main canal would continue northwesterly, below the foothillsbut high enough to command all irrigablelands in this reach of the valley. The total length would be about 73 km and the canal would be concrete lined for the entire distance. Its capacity would be adequate to serve 40,000 ha which would allow for future expansionof the project. Such expansionwould be possiblewith constructionof a dam on the Rio Bao and an increase in the availablewater supply (para 4.12). 4.07 Secondary Canal System. The system would consist of about 35 concrete-linedcanals of varying capacitiesand lengths for a total length of about 300 km. It would be designed to serve natural topographic subdivisions and deliver water to outlets for blocks or land groupings of about 40 ha.

4.08 Drainage System. The system would consist of principal, secondary and collectordrains as required to serve the 40-ha blocks. Principal drains would be spaced at distances no greater than 500 m while secondary or collector drains would be provided for each 40-ha block. It is estimated that about 500 km of drains of all types would be required, about half of which would consist of reconditioned natural drains.

4.09 On-farm Development. On-farm developmentwithin the 40-ha blocks would consist of tertiary irrigation canals and structuresto deliver water to individual farms, on-farm drainage canals, and land levelling. The amount of land levelling required would vary from area to area -- some lands have already been leveled, others need smoothing to obtain a uniform surfacewhile others will require cut and fill leveling. The treatmentprovided would be determined from detailed topographicsurveys of each 40-ha block.

4.10 Project Roads. Gravel-surfacedroads would be constructedalong the main canal and all secondary canals. This would add about 375 km of service roads in the project area.

4.11 Other Project Facilities. The project would also provide facilities to expand and improve the operation and maintenanceorganization. This would consist of 10 buildings for zone headquarterswhich would also accommodatethe increased staff of watermasters,gate-tenders and other maintenanceemployees. Further, a 100-km telephonesystem connecting key operating stations in the project area would be installed. Building and facilitiesat the headquarters maintenancestation in Santiago would also be improved.

Water Supply, Demand, Quality and Rights

4.12 Water Supply. Water for the project would be diverted from the Rio Yaque del Norte just below Santiago city. The supply at this point is the unregulatedflow of the Rio Bao and the flow of the Rio Yaque del Norte as regulatedby Tavera dam and hydropower plant, presentlyunder construction. Although two 40-MW units are being installed in the hydroplant, the present plan is to use only one unit for peaking during a period of three to five hours each day. This would reduce the flow available for irrigation,since the discharge during the peaking period would greatly exceed the diversion demand for irrigation and the excess could not be utilized. The Government is, however, consideringconstruction of a dam and storage reservoiron the Rio Bao which would supplement the regulated flow available to Tavera power plant. This would provide regulation of both rivers and sufficientwater to utilize the total plant capacity (80-MW) for both base load and peaking, which would, in turn, provide a higher average flow at Santiago for diversion.

4.13 A reservoir operation study was carried out which excluded the Bao dam while assuming that the one unit (40-MW)at Tavera would be used for peaking during five hours each day, and deficienciesin the diversiondemand would be supplied by releases from Tavera within the limits of available storage. Even under these conditions,the study demonstratedthat the annual diversion demand of the project, about 500 million m3, would be availablewith minor deficienciesin only one out of 10 years. The study also demonstratedthat, with future regulationof the Rio Bao, it would be possible to extend the project into a second phase for a total of 40,000 ha and also increase supplies to existing systems in the lower valley. Assurances were obtained from Governmentduring negotiationsthat the operating criteria for Tavera dam and hydroplantwould provide sufficientflow in the Rio Yaque del Norte, togetherwith the normal flow of the Rio Bao, to meet the diversion demands for the project at the Santiago intake at all times.

4.14 Water Demand. Crop water requirements were estimated on the basis of the proposed cropping pattern for the project. The monthly and annual water requirementsfor each crop and for the project are presented in Annex 4. The diversiondemands, taking into account irrigationefficiency on the farm and conveyancelosses in the system,were estimatedon the basis of an overall efficiencyof 60%.

4.15 Calculationsfor crop requirementstook into considerationeffective rainfall and climatic conditions in the project area. The results, as shown in Annex 4, clearly demonstrate the supplementalnature of irrigationin the area, as the annual requirementsfor all crops, except rice and sugarcane, rarely exceeds 4,000 ml/ha for two crops or combinations of double cropping. It is important,however, to provide for the deficiencyin availablemoisture at the right time in order to achieve maximum yields or, in some cases, to save the crops.

4.16 Water Quality. The quality of the river flow at the diversion intake is excellent for agriculturalpurposes. The supply of fresh water would make it possible,together with an adequate drainage system, to alleviate the saline conditions that have developed in the lower part of the area.

4.17 Water Rights. The basic law controllingthe use of water resources, defined as part of the public domain in the Dominican Republic,is Law No. 5852, "Ley del Dominio de las Aquas Terrestres." Under this law, INDRHI has authority to grant titles for the use of both surface flows and groundwater for domestic,industrial and agriculturalpurposes. A water title for irrigationuse is inherent to the land and not to an individualwho owns or farms the land. Water users are obligatedto request a specific amount of water each year which can be used effectivelyfor the purposes indicated in the title. The title can be cancelled if the conditionsof the law are not fulfilled.

4.18 Although INDRHI has the necessaryauthority to establishan orderly system of water titles for project water users, much work would be required under the new project to reorder titles in force under the existing systems, and to grant new titles for non-irrigatedland to be brought under the project. Assuranceswere obtained from Governmentthat the required adjustmentsin land and water titles would be made during Implementationof the project. 9-

EngineeringDesign

4.19 Designs have been made on the basis of aerial photographsand photogrammetricmaps which would be suitable for planning and layout of the proposed project. Detailed ground surveys, however, were performedonly on the sites of 4naJorstructures and detailed field surveys and final designs would be required for the entire project. Cadastraland topographicsurveys would also be required for boundary realignmentsunder the agrarian reform program and for land levellingon individualfarms. The design and layout of the project would conform to rearrangementsin land tenure patterns and include the tertiary irrigationand drainage systemswithin the 40-ha blocks. INDRHI would be responsiblefor obtainingrights-of-way.

Cost Estinates

4.20 Cost estimatesfor the project are based on the feasibilitystudy as modified durirngappraisal with unit costs updated to 1972 price levels. The project cost estimate of US$39.0 million includesprovision for civil works; equipmentand facilitiesfor operationand maintenance;land acquisition and settlement;and consultantservices for engineering,construction and agriculturaldevelopment. About 22% contingencieshave been allowed, consisting of a 10% physical contingency,and a price contingencyof 2% per year on local currency expendituresand 6% per year on foreign exchange. These contingenciesreflect the relative straightforwardnature of projectworks and the trend of price increasesin the country during recent years. The estimatesare net of import duties for equipment,materials and supplies since INDRHI is exempt from paying them.

4.21 Project cost estimatesare presented in more detail in Annex 5 and summarizedin the table below:

US$ Million- % Foreign Local Foreign Total Exchange

Headworksand desiltingworks 0.7 1.0 1.7 59 Main canal 3.5 5.4 8.9 61 Irrigationdistribution system 3.3 4.8 8.1 59 Drainage system 1.2 1.8 3.0 60 Pumping plant 0.1 0.2 0.3 67 On-farm development 1.4 2.0 3.4 59 Land acquisition and settlement 3.2 - 3.2 - Equipment - 0.6 0.6 100 Buildings 0.2 - 0.2 - Consultantservices 0.7 2.4 3.1 77

Subtotal 14.3 18.2 32.5 56

Contingencies Physical 1.1 1.7 2.8 Price 0.6 3.1 3.7 - Total Project Cost 16.0 23.0 39.0 59

/1 US$ are equivalentto RD$. - 10-

Financing

4.22 The proposed IDA credit of US$13.0 million, together with the IDB loan of US$13.0 million, for a total of US$26.0 million, would finance 67% of the total project costs of US$39.0. This would cover the foreign exchange costs of US$23.0 million and US$3.0 million of local currency costs for civil works. The proceeds of the credit to finance the constructionand operation and maintenance componentsof the project would be transferred to INDRHI as a grant under an agreementbetween INDRHI and the Government; this agreement will also set out the conditionunder which INDRHI will construct and operate the project. Entering into such an agreementwould be a condition of effective- ness of the credit. Government'scontribution equivalent to US$13.0 million would finance the balance of local currency requirementsand would be met by annual budget appropriationsto INDRHI, the Ministry of Agriculture and IAD. An agreement between IDA and IDB would stipulate those parts of the project or activities which would be financed by the IDA credit or the IDB loan. IDB would enter into a separate loan agreement with Government to cover financing provided from this source.

Procurement

4.23 The total cost of civil works, on-farm works and equipment to be put out to internationalcompetitive bidding would be US$26.0 million, ex- cluding contingencies. Bidding procedureswould follow the guidelines for procurementunder IDA credits for that part of the project to be financed by IDA and IDB guidelines for that part to be financed by IDB. In order to expedite construction,it is proposed to divide the work into four contracts: one for the headworks and first section of the main canal (US$2.3million); one for the second section of main canal, including distributionand on- farm works (US$12.7million); one for the pumping plant and related dis- tributionand on-farm works (US$1.9million); and one for third section of the main canal including distributionand on-farm works (US$8.5million).

Disbursements

4.24 Disbursementson equipmentcontracts would be made against the CIF cost of imported equipment. For consultingservices, disbursementswould be made against foreign payments,while for all other project works they would be made on a percentage basis representing the proportion of the total cost covered by loan or credit financing. Any savings in the credit account w,_tld1be cancelled. The estimated schedule of expenditureson the project and a quarterly disbursementschedule are presented in Annex 6.

Accounts and Audits

4.25 INDRRI's accounting system is adequate for the present scope of its activities,which is mainly limited to operation and maintenance. These accounts, however, are not subject to audit prior to being submitted to the Ministry of Finance. Assuranceswere obtained during negotiationsthat (a) separate project accounts would be kept and maintained by INDRHI; independentauditors, satisfactoryto the Association,would be employed to audit the project accounts and (c) the audited project and INDRHI accounts, together with the auditor's report, would be sent to IDA within four months of the close of each financial year. - 11 -

V. ORGANIZATIONAND MANAGEMENT

Implementationof Project Works

5.01 INDRHI, an autonomous organizationcreated in 1965 would have responsibilityfor implementingthe project works. It operates under the supervisionof the Technical Secretariatin the President'soffice and is headed by an Executive Director. It has three main departments-- planning, operationsand administration. The planning department is responsiblefor improvementand extension of existing irrigationand water development projects as well as for implementationof new projects,while operations department is basically concernedwith operating and maintainingprojects in 16 irrigation zones in the country and administeringthe laws controlling the use of water resources. INDRHI has about 900 employees,of which more than 700 are assigned to field project operations and administrativeservices.

5.02 Due to its limited technicalstaff, INDRHI would engage a firm of engineeringconsultants to be responsiblefor all surveys, design, super- vision of constructionand certificationof completion. Terms of reference for the engineeringconsultants are presented in Annex 7. A project office would be set up in Santiago,with responsibilityfor design and construction of project works. The layout and constructionof the irrigationand drainage systemswould be coordinatedwith the land redistributionactivities since the size and arrangementof farms will determine the layout and capacity of the secondary and tertiary systems. The employmentof a consulting firm acceptable to, and under terms of referenceapproved by IDA would be a conditionof credit effectiveness.

AgriculturalDevelopment

5.03 Project Coordination. Implementationof the agriculturaldevelop- ment program under the project would require close coordinationamong the differentGovernment agencies participatingin it. To achieve this, a Central Policy Committee and a Project CoordinatingCommittee would be established. The Central Policy Committeewould be establishedin Santo Domingo and consist of top officials of INDRHI, The Ministry of Agriculture, BNA, and IAD and would be primarily concernedwith policy decisions such as project budgets and allocation of responsibilitiesbetween the agencies involved. The Project CoordinatingCommittee in Santiago would consist of field representativesof the same agencies and, in addition, the senior local officials of the Tobacco Institute, the Rice Research Institute, and the CorporacionDominicana de Electricidad. This committeewould be in charge of day-to-dayoperations and would be headed by a Project Coordinator, who would be appointed by the office of the President and report directly to the Central Policy Committee. The proposed organizationalstructure is shown in Chart No. 6892. The establishmentof a Central Policy Committee and a Project CoordinatingCommittee, as well as the appointmentof a Project Coordinatorin consultationwith the Association,would be a conditionof Credit effectiveness. Assurances were furthermoreobtained that IDA would be consulted before replacementof the Project Coordinator. - 12 -

5.04 Meetings of the Central Policy Committeewould be held at least twice a year, with the Project Coordinatorparticipating, while the Project CoordinatingCommittee would meet at least quarterly,with additional meetings as needed. Each agenda of the two committeeswould include (a) reports on previous period accomplishments;(b) presentationof a program for implementationin the next period, and (c) discussionof plans for coordinationbetween respectiveagencies. A resume of the meeting's minutes would be prepared and transmittedto IDA as part of the quarterly progress reports.

5.05 Extension Services. Since several agencies are presently engaged in providing extension services in the area, a unified extension service unit would be establishedto ensure coordinationof activities. The unit, which would operate under the direction of the Project Coordinator,would be staffed with agronomists,to be seconded to it from the different agencies and with extension agents employed by them. Autonomous agencies such as the Tobacco Institute,and the Rice Grower's Associationwould be represented in the coordinatingcommittee (see para 5.03) and participate in the work of the unit. Although operating under the direction of the Project Coordinator, the specialistswould continue to be paid by and receive technical guidance from their parent organizations. It is estimated that a minimum of five agronomistsand 10 extension agents would be required to serve the project, but somewhat more intensive coverage would be provided in the settlement areas. The work of the unit would be closely coordinatedwith ongoing research work, and the existing offices and laboratoriesestablished under the UNDP/FAO Project would serve as unit headquarters. Assuranceswere obtained during negotiationsthat the Governmentwould present a plan for establishmentof this unit to IDA within one year after signatureof the credit agreementand that the necessary personnelwould be assigned to it. Assurance were also obtained that adequate operating funds would be made available to the unit each year through a special allocationwithin the budget.

5.06 AgriculturalCredit. The Santiago and Valverde branches of the BNA provide credit to about 10% of the farmers in the project area. About 80% of the loans are short-term,at 8% interest,mainly to rice growers. BNA's impact is small and its repayment record is poor, with about two-thirds of the loan portfolio in arrears. Short-termcredit is also available from the supervised credit programs of the Ministry of Agricultureand the Tobacco Institute. In addition, farm cooperativesand processingindustries such as rice mills and tomato canning plants, provide short-termcredit in kind when producers are under contract. Interest rates for these types of credit are somewhat higher (between 10% and 12% annually)but repayment is considerably better; over 70% of productioncredits extended through the supervisedcredit program of the Ministry of Agriculture,for instance,have been repaid on a regular basis.

5.07 With the project, annual credit requirementsare expected to increase from RD$ 2.5 million to about RD$ 7 million at full development. Part of this would be met by increased lending from processingindustries and farm cooperativesbut the remainderwould have to be covered by institu- tional credit. Assuranceswere obtained during negotiationsthat Government - 13 - would allocate sufficientfunds to the project to meet the credit needs of project farmersand that funds so made availablewould be supervisedby the project'sextension service unit.

5.08 Land Acquisitionand Redistribution. The only experiencewith land reform in the country has been a land settlementprogram, initiatedin 1962 and carried out by the InstitutoAgrario Dominicano (IAD), an autonomous agency under supervisionof the Office of the President. The program dealt with the redistributionof formerly state-ownedlands and has helped to settle about 10,000 families,each receiving,on the average, slightly more than 5 ha. The provision of communityfacilities and on-farm develop- ment has been minimal under this program, and agriculturalextension and credit to settlers have been insufficientto make any significantimpact on production.

5.09 The Governmentis presentlyplanning to undertakea land reform program throughoutthe country,which would include expropriationof private holdings and would also be applied to the project area. To this effect, three laws have been approved since 1970. The first one, law No. 5852, envisages the expropriationof non-irrigatedor undevelopedland, to be brought under a new irrigationsystem constructedby Government. It provides for expropriationof 50% of undevelopedirrigable land, 35% of pasture land and 25% of land presentlyused to grow food crops. The value of expropriated land (without irrigationfacilities) may be credited against investmentcosts of the irrigationsystem (para 5.16). Furthermore,under the recently approved Law No. 290, all lands under rice exceeding 31 ha in a single farm, may be expropriated. Finally, a new law on "Latifundia"provides for expropriationof large holdings, defining the upper limits of holdings according to land class. This law would apply only where Laws No. 5852 and No. 290 do not take precedence,and would have the effect of limiting maximum holdings in the project area to 200 ha. Lands in sugarcane,which in the project area are owned by Government,are exempt from expropriation laws. It is estimated that under these laws, between 7,000 and 10,000 ha, or 25% to 35% of all lands in the project area may be expropriatedand redistributed. The basic laws for agrarian reform in the country establish 3.75 ha as the minimum size farm to be allocated to new settlers. This size is consideredadequate to support a family under irrigated conditions. hiowever,the Constitutionof the DominicanRepublic expresslyprovides for the eliminationof minifundiain the country and there apparentlyis no restrictionto establishinglarger farms, taking into account the differences in soil productivity.

5.10 There is little doubt about the Government'sintention to expedite land reform; the laws enabling acquisition and redistribution of private lands have been approved by the legislaturein a short period and with little opposition. The main concern at present is the ability of Government organizationsto administerand implementsuch a program efficiently. Prior to negotiationsGovernment submitted a preliminarystudy to determinemore accuratelythe amount of land that would have to be expropriatedin the proj- ect area and to prepare the outlines of a settlementplan. Assuranceswere obtained during negotiationsthat Governmentwould prepare a detailed plan for land acquisition and settlement of farmers covering such aspects as the - 14 - size of holdings, selection of settlers and timing of land acquisitionand settlement,and that it would submit the plan to the Association for its re- view and approval within 18 months after signing of the Credit Agreement,and promptly thereaftercarry out the plan in accordancewith a timetable to be agreed with IDA and simultaneouslywith constructionof the irrigationand drainage works so as to correlate the layout with changes in farm sizes and boundaries.

5.11 Consulting Services. Consultants for engineering and construction (para 5.02), witlh whom INDRII is already in negotiation are experienced mainly in engineering. Consequently,it would be necessary to employ a second consultingfirm to assist the Governmentwith the agriculturaldevel- opment phase of the project together with operation and maintenance. Terms of reference for such consultantsare presented in Annex 7. To ensure its prompt employment and an adequate coordinationof its activitieswith those of the engineeringconsultants, the contract would be made with INDRHI, although the consultantswould be responsible to the Project Coordinator. Three experts would be provided initiallyby the firm: a senior agriculturalist specializedin extension services to serve as an advisor to the Project Coordinator;a land reform specialist;and an irrigationengineer to assist INDRHI in operation and maintenanceactivities. The first two, both of which would serve for five years in the area, would be engaged within six months after signing the credit agreement,while the latter, who would be needed over a tlhree-yearperiod, would be engaged within two years of signing the credit agreement. The employmentof such a firm acceptableto and under terms of referenceapproved by the Associationwould be a condition of Credit effectiveness.

5.12 Two additional experts, aside from the three mentioned above, would be needed to assist in the operatior of the supervised credit program and with agricultural extension and research. Under ar extension of its present program in the area, the UNDP has indicated its agreement to provide the services of one agronomist from July 1974 for a four-year period, while the International Coffee Organization (ICO), under its crop diversification program, has also tentatively agreed to provide the services of an extension specialist to assist in credit and marketing operations for the same length of time. Both would be engaged exclusively in activities related to the project and would operate as part of the project's extension service unit under the Project Coordinator.

5.13 Training. In-service training would be provided for local staff by consultants in the fields of engineering surveys and design, construction, and agricultural developnent as specified in the consultant's terms of reference (Annex 7). This would cover a wide range of activities required in the planning, implementation and development of an irrigation project. The training to be provided on operation and maintenance of the project and for extension and credit services would have the purpose of creating permanent organizations to continue these activities beyond the construction and development phases of the project. It is estimated that over a five-year period, some 85 people would be trained.

5.14 Operation and IMaintenance. INDRPIImaintains and operates the existing irrigation systems and is also responsible for allocation of water - 15 - and collectionof water charges. It would retain these responsibilities under the project and would establisha liaisonwith the Corporacion Dominicana de Electricidad,which is responsiblefor operation of Tavera dam. INDPJII'sstaffing in the project area would be strengthenedto cope with the increasedworkload. A consultantwould be employed to assist with all operation and maintenanceactivities, to establish and help in implementing a water delivery schedule and to prepare an operation and maintenancemanual settin, out the procedures and regulationsfor management of the project (para 5.11). With the provisionof additionaloperation and maintenance equipment,buildings and facilitiesunder the project, INDRHI would be able to function adequately. Annual operationand maintenancecosts of the irrigation systems are estimated to reach RD$ 450,000 at full development, or RD$ 17 per irrigatedha. These costs include all personnelrequirements, operationand depreciationof equipment and use of power to supply the pumped area. Details are given in Annex 8.

Recovery of Costs

5.15 Project investmentcosts subject to recovery amount to RD$ 34.7 million. This includes the acquisitionof undevelopedlands and settlement (RD$ 3.2 million) but does not cover (a) operation and maintenance equipment (RD$ 0.6 million), which is included as a depreciationcost in annual operation and maintenance,and (b) price contingencies(RD$ 3.7 million) as provisionswould be made to increase charges in line with inflation. Operation and maintenancecosts also would be subject to recovery over the 50-year life of the project.

5.16 Presently,'no legal basis exists to recover investmentcosts in irrigationprojects except when the project is linked to the expropriation of lands: under DominicanLaw No. 5852 the value of expropriatedland is considered to be the beneficiaries'contribution to investmentcost recovery (para 5.09). This would, however, enable recovery of only a fraction of investment costs, as the latter would far exceed the value of expropriatedlands.

5.17 Water charges to recover operation and maintenance costs are collectedby INDRHI in all its irrigation districts. The rates are set by law at RD$ 2.50 per ha for the first 10 ha of irrigatedland and at RD$ 5.50 for each additional ha. For rice cultivation,these rates are doubled. IiNDRHIis not allowed to modify these rates to keep them in line with variations in annual operation and maintenancecosts and, at present, they are too low to permit adequate maintenanceof the irrigation system, even after accounting for the Government subsidy that INDRHI receives for its operationand maintenance activities.

5.18 Assuranceswere obtained during negotiationsthat Government would approve legislation,as a conditionof effectiveness,which would permit INDRHI to impose and collect annually the full amount of operationand main- tenance costs on the project and a reasonableproportion of investment costs, taking into account the recovery of costs through land expropriations. As- surances were also obtained that, during the first two years of the project, Government would undertake a study in the project area to (a) determine the - 16 - level of water charges required for full recovery of operation and maintenance costs; (b) determine the proportion of investment costs that could reasonably be recovered from the farmers taking into account different farm sizes, cropping possibilities,taxes, farm income, water consumptionand the need to maintain farmers' incentives;and (c) to prepare rate schedules, regulations for allocation and delivery of water and administrativeprocedures for the collectionof project charges. Furthermore,assurances were obtained that the findings of the study would be reveiwed with the Association and that the agreed level of water chargeswould be imposed and collected in the project area.

5.19 It is expected that operation and maintenance charges of RD$ 17 per irrigatedha per annum would be fully recovered. The level of capital recovery would be determinedby the study; however, in view of the large number of smallholdersin the area with low income levels (para 6.06), the overall recovery level would probably be low.

VI. PRODUCTION,MARKET PROSPECTS, PRICES Aa1DFARM INCOME

Production

6.01 Implementationof the project would more than double the cropped area under irrigationand lead to a more intensivecropping pattern and higher yields. At full developmentin 1985, agriculturalproduction would be concentratedmostly on crops already being produced in the area such as tobacco, rice and sugarcane,but would also have expanded into new crops, as illustratedbelow:

Cropped Area Production Present Future Present Future Increment ------(ha)------('000 ton)------Tobacco 2,100 9,300 2.0 11.8 9.8 Paddy 7,400 10,400 12.4 36.4 24.0 Sugarcane 2,200 2,200 220.0 264.0 44.0 Plantains 2,300 2,300 34.5 50.0 15.5 Peanuts - 1,500 - 2.7 2.7 Soybeans - 2,200 - 3.4 3.4 Red and Black beans 200 2,500 0.2 3.6 3.4 Others 800 5,000 - - - 15,000 35,900

6.02 Some improvementsin yields as well as a shift to increased tobacco growing could be expected even without the project, but these changes would be more than compensatedby the decline in sugarcane yields due to progressive salinization. The main benefit of the project for the sugarcaneplantation would be the reduction of salinity in its soils. Expected yield levels in ton/ha for the main crops are as follows: 1/ rice, 3.5 (1.7); olor tobacco,

* Figures in parenthesisrepresent current yields. As shown in Annex 9, future yield levels on the left bank would be somewhat lower as no on-farm works are planned in this area. - 17 -

1.2 (0.85);criollo tobacco, 1.4 (1.0); sugarcane, 120 (100); plantains, 25 (15); red and black beans, 1.5 (0.9); tomatoes, 30 (20) and soybeans, 1.6. These yield levels would be reached gradually over an eight-year period following the start of irrigation. Details of yields, production,production costs and net returns are presented in Annex 9.

Market Prospects

6.03 Crops included in the cropping pattern were selected after a detailed review of market opportunities. Crops for the export market, mainly tobacco, but also sugar and certain vegetables,would constitute more than 50% of the project's total value of production. For each of these crops, export markets are already well established. Export possibili- ties of tobacco are presently limited only by the country'sability to supply them, as the traditionalvarieties are strongly in demand mostly as filler material for cigars in the U.S. and Western Europe. New market possibilitieshave also been created by the introductionof Virginia and Cuban varieties,which have a low nicotine content and command prices that are about 60% higher than those for the traditionalvarieties. Tobacco exports have increased from RD$ 6.6 million to RD$ 20.7 million in the 1965-71 period. Sugar is the country'smain export commodity and over 90% of the total exported goes to the U.S. preferentialmarket, although it has not been enough to fill its U.S. quota. As incrementalsugar production from the projectwould not exceed 1% of the country's total sugar output, no marketing difficultiesare foreseen.

6.04 Other crops, such as rice, plantains, groundnuts,soybeans, corn and sorghum would be produced mainly for the local market, and no market constraintsare anticipated. Rice and plantainsare already being grown in the area and increased production has been estimated to be in line with the projected population growth rate of 2.5% per year and an overall increase in food consumptionof about 4% per year. Vegetable oil crops would substi- tute for imports,which have increased threefoldas a result of a rapidly rising demand over the last decade, while similar increaseshave been experiencedwith processed feeds such as soybean meal. Additional market informationis given in Annex 10.

Prices

6.04 Expected farm-gateprices at full development,used in the financialanalysis to value crop production,are presented in Annex 9. These prices reflect average farm-gateprices over the last two years, as no single crop would be produced in quantities sufficient to affect domestic supply and demand conditions. Farm-gateprices used in the economic analysis were derived from expected 1980-S5 world market prices as forecast by the Bank's Economic Department. These prices are lower than those used in the financialanalysis in the case of rice, groundnutsand soybeans for which the Governmentmaintains floor prices through import levies, and in the case of sugar, where free-marketrather than quota-marketprices were assumed. The differencesrange from 5% to 35% for individual crops. - 18 -

Farm Income

6.06 Following the acquisition and redistribution of lands in the project area, it is expected that about 80% of all farms would range in size between 3.7 ha and 10 ha, and cover about 50% of the area while the remainder would be in larger holdings, mainly in the 20 to 50 ha range. At the same time, the total number of farms would increase from 900 to about 3,000. Farm incomes at full development have been presented after deducting irrigation operation and maintenance costs but before making any allowance for recovery of investment costs. They would vary widely, depending on farm size, soil productivity and future crop rotations as presented in Annex 11 and summarized below:

Farm Farm Incomes Size Without Project With Project (ha) ------RD$------

3.75 400 - 2,000 1,200 - 2,300 7.50 700 - 2,900 1,800 - 4,600 10 1,000 - 3,800 2,000 - 6,100 20 1,800 - 4,600 3,500 - 9,500 50 2,000 - 6,000 6,500 -15,000

6.07 As indicated above, farm incomes would vary from RD$ 1,200 per annum on smallholdings to RD$ 15,000 per annum on large farms; with an average of seven persons per family, per capita incomes would correspondingly range from RD$ 170 to RD$ 2,140 per annum at full development which compares favorably with an average per capita income of about RD$ 90 at present. Taking into account the expected average rural income per capita in 1985 (RD$ 250) and the projected national per capita income (RD$ 500), there seems to be substantial room for investment cost recovery on the larger farms but only limited possibilities on smallholdings. The magnitude and level of project charges would be investigated and determined by the proposed water charge study (para 5.18 and 5.19).

VII. BENEFITS AND JUSTIFICATION

7.01 The project would rehabilitate and expand an existing irrigation scheme for the production of export crops, mainly tobacco but also sugarcane, and, to a minor extent vegetables, and for import substitution of rice, peanuts, and soybeans in an area which is well suited for these crops. Through implementation of the agrarian reform the project would also create some 2,000 new smallholder farms in the area, thereby establishing new employment opportunities and improving the distribution of income among the population.

7.02 The economic rate of return on the project would be 14%, assuming a 50-year project life and taking into consideration expected world market prices for the crops produced. A sensitivity analysis was undertaken to examine the effect of the following adverse conditions: 20% reduction in the area planted to tobacco; extension of the development period by five - 19 - years; a 10% overall !.ncreasein constructioncosts; and a 10% reduction in yields on all crops. in addition,hired labor was costed at the legal minimum wage rate (para 7.03). Tn each case the rate of return would still exceed 10%o Details of the economicanalysis are presented in Annex 12.

7.03 With about 3,500 families in the area engaged in agriculture,either as owners or farm laborers, the availablelabor force is about 9,000 man-years. Annual labor requirementsin the area are presentlyaround 4,000 man-years and are expected to reach about 8,500 man-yearsas full development,after taking into account that the larger farms would progressivelymechanize their operationsas cropping intensityincreases. Most of the increase in labor demand is expected to be met by the existing labor force in the area as more members of the family would be employedduring peak periods for such work as rice transplanting and harvesting and tobacco harvesting. The project would thus utilize more fully the available labor force, which has no alternativeemployment opportunities. In carrying out the economic analysis, all family labor contributionwas thereforenot costed,while hired labor was costed at a subsistencerate equivalentto 75% of the legal minimum wage rate of RD$ 2.0 per ctay.

7.04 Full agriculturalproduction is assumed to be reached over an eight- year period after the start of irrigation. Net incrementalforeign exchange earningsat the end of the constructionperiod would amount to RD$ 1.3 million per year and reach RD$ 8.5 million per year at full development,as project producewould increase exports and replace present imports, thus assisting the country'sbalance of payment position.

VIIIe RECOMMENDATIONS

8.01 During negotiations, assurances were obtained from the Government that:

(a) the operating criteria for Tavera dam and hydroplantwould provide sufficientflow in the Rio Yaque del Norte, together with the normal flow of the Rio Bao, to meet project diversion demands at the Santiago intake at all times (para 4.13);

(b) the required adjustmentsin land and water titleswould be made during implementation of the project (para 4.18);

(c) separate project accounts would be kept and maintained by INDRHI; independent auditors, satisfactory to IDA, would be employed by INDRHI to audit the project accounts; and the audited project and INDRHI accounts, together with the auditor's reports would be sent to IDA within four months of the close of each financial year (para 4.25);

(d) IDA would be consultedbefore replacementof the Project Coordinator (para 5.03); - 20 -

(e) a plan for the extension service unit would be presented to IDA within one year after signature of the credit agreement (para 5.05);

(f) all necessary personnel would be assigned to the extension unit and operating funds would be made available each year to the unit through a special allocationwithin the budget (para 5.05);

(g) sufficientfunds would be allocated to the supervised credit program of the Ministry of Agriculture to meet the needs of the project farmers and these funds would be supervised by the extension service unit (para 5.07);

(h) a detailed plan for land acquisitionand settlementof farmers would be prepared and submitted to IDA within 18 months after signature of the credit agreement for its review and approval and that this plan would be carried out simultaneouslywith the layout and constructionof civil works in order to correlate the changes in farm size and boundaries (para 5.10);

(i) a study would be undertaken to determine the level of water charges for recovery of operation and maintenance and invest- ment costs and to prepare rate schedules,regulations for allocationand delivery of water and administrativeprocedures for the collectionof such charges (para 5.18); and

(j) the findings of the water charges study would be reviewed with IDA and the agreed level of water charges would be imposed and collected in the project area (para 5.18).

8.02 Conditionsof credit effectivenesswould be:

(a) the execution of an agreement satisfactoryto IDA between the Government and INDRHI for a transfer of the proceeds of the credit to INDRHI to finance the constructionand operation and maintenance componentsof the project (paragraph4.22).

(b) the employmentof a consultingfirm, acceptableto and under terms of referenceapproved by IDA, to assist with engineeringand supervisionof construction(para 5.02);

(c) the establishmentof a Central Policy Committeeand a Project CoordinatingCommittee and appointment,in con- sultationwith IDA, of a Project Coordinator (para 5.03);

(d) the employmentof a consultingfirm, acceptable to and under terms of reference approved by IDA, to assist with the agriculturaldevelopment phase of the project including operation and maintenance (para 5.11); and

(e) the approval of suitable legislationwhich would permit INDRHI to impose and collect annually the full amount of - 21 -

operation and maintenancecosts on the project and a reasonable proportionof investmentcosts (para 5.18).

8.03 With the indicatedassurances, the proposed project would be suitable for an IDA credit of US$13.0 million.

December 12, 1972

ANNEX 1 Page 1

Dno19NICANPEPUELJ.C

YAQUEDEL NORTE IRRIGATION PROJECT

Soils

Soil Survey and Land Classification

1. A somi-detailedsoil utrvey,on a scale of 1:20,000,covering 26,COO ha was carried out by a SOGREAH, a French Consultant firm, in 1966-68. This survey covers the entire project area ezcept for those lands between the Navarrete canal, including the Jlicome extension, and the proposed main canal. It was carried out according to USBR standards and is adequate for irrigation plannirng purposes. The lands surveyed were classified according to irriga- bility as follows:

Percent of Class Irrigability Area (ha) Total Area

1 Excellent 4,325 16 2 Good 7,835 30 3 Fair 7,135 27 4 Poor 3,110 12 5 Limited potential with improvement 160 1 6 Non-irrigable 3,755 14

Total 26,320 100

2. Most of the upper part of the project area occupies an area of coarse- textured soils derived from calcareoussediments deposited under marine con- ditions. These residual soils are generally underlain by finer-textured material. The remainder of the project area, the lower part, consists of alluvium following the course of the Yaque del Norte river and its tributaries, and both alluvial and colluvial fans that spread out from tertiary hills bordering the basin. In general the soils of the basin are deep and of medium to coarse texture. Alluvial soils have loam or clay loam at the surface, grading into coraser-texturematerial with depth. They are occasionally stratified by layers of fine gravel or coarse sand.

Soil Conditions Related to Irrigation

3. The SOGREAH survey and classificationindicates that roughly 75% of the irrigable area, Classes 1, 2, and 3, would be suitable for agricultural production. The constrainton Class 4 lands is due mainly to excess salinity and this would be corrected with drainage and an irrigationsupply of fresh water. The Class 5 and 6 lands are topographicallyunsuitable for development and these include primarily the plateau area north and east of Esperanza, ANNEX 1 Page 2 together with the rough hilly areas under the lateral Penuela and some sections of the Navarrete canal in the vicinity of Villa Bisono. During preparation of a final plan for the project, the feasibility of developing these areas under the Penuela and Navarrete canals would be reviewed with the possibility of excluding them in favor of more suitable lands in the lower part of the project area. Due to existing rights, it would be necessary to deliver water by means of existing systems but their reconstructionand on-farm development would not be justified. An equal area of better land could be developed at much lower cost by extending the proposed project on down the valley from Jaibon. This extension would make it possible to maintain the net area of the project at 27,500 ha, with mainly Class 1, 2, and 3 lands.

4. Approximately8,000 ha in the lower project area are saline, the salts being derived partly from saline parent materials but also from the applied irrigationwater under conditionsof inadequatedrainage and/or blocked natural drains. By definition, some of the soils are saline-alkaliand, there- fore, theoreticallydifficult to drain. However, none of the soils classified as saline-alkalihave the undersirablephysical characteristicsassociated with an alkali problem. Accordingly, amendmentswould not be required for reclamation,and moderate leaching would correct the deleterious soil conditions.

5. Prior to inception of irrigation, natural drainage apparentlyWas adequate except in the flatter areas adjacent to the river. However, blockage of natural drains by using them as canals and excessive application of water has resulted in much of the area being waterlogged, and, as a consequence, salinity is on the increase. The proposed drainage system would provide a network of deep main drains spaced about 500 m apart and shalllower secondary drains to serve each block of 40 ha. Soils of coarse texture and/or moderate slope probably would not require farm drains. The saline soils generally are fine textures and occur in the flatter portions of the project; most of these would require farm drainage to carry off the saline leachate during reclamation and for control of the groundwater level.

6. Experiments in the area show little or no crop response to potassium fertilizer;a limited response to phosphorusby some crops on some soils; and a significant response by all crops to nitrogen. The soil reaction is very alkaline (pH+) but no evidence of leaf chlorosis was observed in the field regardlessof the high lime content of the soil. Organic matter is rather high (to 52) in residual soils. ANNEX2 Page 1

DOMINICANREPUBLIC

YAQUEDEL NORTE IRRIGATION PROJECT

Existing Irrigaticn Development

1. Irrigation has been practiced in the valley below Santiago for many years, beginning with constructionof the Bogaert system on the left bank in 1925. The main Navarrete system was constructed in 1944 and the Caneo main canal in 1960. The Navarrete main canal is the source of supply to the Esperanza, Penuela, and Jicome laterals. In total, these systems command about 24,000 ha but it has never been possible to effectively irrigate more than about 15,000 ha; today, these systems, on average, irrigate about 12,000 ha.

2. While constructionof the main canals represented a considerable undertaking,the projects were never really completed and have some serious defects. In the first place the diversion dams on the river are loose rock structures,which are normally washed out and there is no control on the flow diverted into the canals. The diversion is therefore entirely dependent on the river flow with the result that low flow limits the amount diverted into the canals which usually occurs during a period of maximum irrigation demand. In most years the lands under the lowest part of the system do not receive any water. Another serious defect is the lack of a desilting works at any of the diversions. This permits silt, sand and heavy gravel to enter the intakes and be deposited in the canals, which further restricts the flow and the ultimate supply to the land. Furthermore,the distributionsystems from the main canals have never been completed and are inadequate to serve the irrigable area even if the water supply were suffi- cient. These systems are almost completely lacking in control or measuring structures, with the result that lands at the head of the system are over irrigated to the detriment of those lands farther downstream. An additional serious defect is that drainage systems were not provided so that large areas of potentially productive land have become waterlogged and salinized.

3. The conditions described above are more critical under the systems on the right bank than under the system on the left bank, which under present conditons can effectively irrigate about 2,800 ha. This could increase how- ever to about 4,500 ha with the improved water supply to be provided by the proposed project. For this reason, it was decided to defer rehabilitation and extension of this system to a later stage.

ANNEX 3 Page 1

DOMINICANREPUBLIC

YAQUEDEL NORTE IRRIGATIONPROJECT

Selection and Formulation of the Project and Project Works

A. Selectionand Formulation

1. In 1953, the Governmentbegan to seriously consider constructionof a dam at the Tavera site on the Yaque del Norte river for power production and regulationof the river flow for irrigationin the valley downstream from Santiago. The Tavera site is about 17 km upstream from Santiago and above the confluenceof the Bao and Yaque del Norte Rivers, which are the two main tributariesin the upper watershed.

2. The first serious effort on surveys, studies and planning for the projectbegan in 1962 with the assistanceof IDB and in 1966 the Government signed a contractwith Lahmeyer Internationalof Germany for feasibility studies and final design on the dam and hydroplant. A loan agreementof about US$30 million for constructionof these works was signed with IDB and USAID in April 1968. Both agencies have subsequentlyprovided about US$10 million in additional funds to cover cost increases. Constructionproceeded under contract with Morrison-Knudson, with Lahmeyer continuing as engineering consultants,and the project will be completed in 1972.

3. Constructionof Tavera dam is the first stage of developing the basin's land and water resources,with rehabilitationof existing irrigation systems and extension into rain-fed areas being the second stage. With this in mind, Government had already undertaken surveys and studies in 1965 for developmentof irrigationin both the Yaque del Norte and Yaque del Sur river basins. Investigationswere carried out by SOGREAH, a French consultingfirm, under a UNDP Project, with the Bank acting as the ExecutingAgency. Due to politicaldisturbances and other difficulties,SOGREAH, however, was never able to fulfill the original objectivesof the project and it was necessary to reduce and redefine the scope. The revised terms of reference included preparationof a plan and feasibilitystudy for an initial stage of irrigation developmenton the Yaque del Norte river.

4. The SOGREAH report recommendedrehabilitation and extension of the existing systems under the Bogaert and Almacigos canals on the left bank of the river and under the Naverrete, Esperanza, Penuela, Jicome and Caneo canals on the right bank. It was based on using the normal flow of the river, without storage,which limited the area for which a water supply could be assured to about 26,000 ha. The area effectivelyirrigated under these systems is about 15,000 ha, with roughly 5,000 ha on the left bank and 10,000 ha on the right bank. The proposed project would have included improvementof the of the existing diversiondams and main canals; extensionof the distributing ANNEX 3 Page 2 systems; constructionof special structuressuch as desiltingworks and measuringweirs; improved drainage, particularlyin the Laguna Salada area; and improved roads. The cost was estimatedat US$15 million and the Bank appraisedthe project in May 1968. At the same time, Government decided to go ahead with constructionof Tavera dam and it was necessary to undertake a new study that would take into account the influenceof Tavera dam on the availablewater supply for irrigation.

5. The loan agreemnt for Tavera dam with IDB included a commitment to formulatea new plan for agriculturaldevelopment in the valley and provided funds for this purpose. In 1969, the Government contracted CIEPS, a Mexican consulting firm, to carry out the surveys, studies, and preparationof a plan and feasibility report for a project that took into consideration Tavera dam and reservoir, as well as a re-regulating reservoir below the confluence of the Bao and Yaque del Norte rivers. This latter was considered necessary since it is planned that Tavera will be used for peak power and the releases will not conform to the irrigation demands. With these conditions,CIEPS proposed to expand the overall area served to 40,000 ha, with an entirely new irrigationand drainage system on the right bank to replace existing systems, togetherwith considerablerehabilitation and reconstructionof the Bogaert system. A new headworks and desiltingworks at Santiago would pro- vide a water supply to the entire project area by means of a new main canal on the right bank and improve the supply to the left bank system.

6. A review of the CIEPS feasibilitystudy indicatedthat the overall plan was basically sound but too ambitious and an IBRD pre-appraisalmission in January 1972 recommended that the project be developed in two phases.

7. The first phase, which is the subject of this report, would include 27,500 ha, consisting of the 4,500 ha under the left bank system and 23,000 ha under a new system on the right bank. The second phase for extension of the project to 40,000 ha or more would be undertaken following construction of a dam on the Rio Bao and the resulting increase in the available water supply.

B. Project Works

Headworks

8. The diversion dam, located on the west limit of the city of Santiago, would be a concrete and masonry structure with a crest length of 138.0 m at elevation 148.5 a, which is sufficient to command a major part of all lands in the valley downstream. Since this location could create a flooding problem for lower sections in the city, a protection wall along the right bank has already been completed. The diversion intake would be on the left bank and dischargedirectly into the desiltingstructure. Though, this arrangement, construction of the canal through the dense urban development on the right bank would be avoided and advantage could also be taken of a large bend in the river that would provide sufficient grade for discharging the desilting basin. The foundation for the dam would be on a stable and dense shalre formation, which would be adequate and safe. ANNEX 3 Page 3

Main Canal

9. The main canal would have an intake at the lower end of the desiltingbasin and continue on the left bank for 3.5 km to intersect the river on the opposite side of -he loop or bend in the river. At this point, it would croas the river to the right bank by means of a siphon. The intake to the existing Bogaert canal would ba on the left bank at a point just before the canal entered the siphion Beyond the siphon, the canal would pass through 600i-mtunnel built through a low range nf hills and continue down the valley, after crossing the Autopista Duarte. Total distance would be 72.8 km. The pumring plant for the area to be irrigated above the canal would be located near the tunnel outlet and a main canal and distribution system would be provided for the 1,600 ha involved. Beyond this point the canal would replace ttheexisting main canals and serve an area of about 21,500 ha.

10. The design capacity of the main canal at the intake would be 40 m3/ to provide for future expansion of thye project. The added cost of constructing the canal to full capacity in the first stage would be more than justified by the cost and inconvenienceof enlarging the canal at a later date. The plan provides for concrete lining of the main canal, as well as secondary and tertiary laterals.

Distributionand Drainage Systems

11. The secondary canal systems for irrigationwould be designed and laid out to serve 40-ha blocks. Only a small part of the existing systems would be used, since the new systems would be located and aligned so as to achieve greater uniformityand efficiency. These systems would bye provided with modern concrete control and measuring structures and concrete lined throughout. Approximately270 km of new secondarycanals and lateralswould be provided under the new system on the right bank.

12. The main drainage system is based on a spacing of 500 m for the principal drains, with secondarv collectorsto serve the 40-ha blocks. Many of the principal drains, roughly 325 km out of a total of 625 kmi,would be provided by reconditioningnatural drains. This would particularlybe the case in the upper part of the project where the land has an established drainage pattern. In the lower part, however, the Laguna Salada for example, where the land is more uniform and slopes are 1% or less, the intensity of the drains would need to be greater, especially as treatment for those lands affected by salinity. The plan would provide for open excavated drains for the removal of excess rainfall and to maintain groundwater levels at 1 to 2 m below the surface. Due to the permeable soils and relative free movement of groundwater,subsurface drains would not be required. The drainage and salinity problems in parts of the project area at present have been created by a lack of relief outlets and reclamationof these lands could be accomplished easily with an adequate drainage system. ANNEX3 Page 4

On-Farm Development

13. The project would include on-farm developmentas required within the 40-ha blocks. This would consist of the tertiary irrigation canals and farm inlet structures, on-farm drainage canals and outlets, and land levelling. The need for on-farm drainage would be negligible over most of the project area as the principle and secondary drains would be ample. However, certain specific areas would require individual farm drains. For land leveling, a similar situation exists, as the amount of leveling required would vary from area to area. A large part of the area has already been leveled, while other parts only need smoothing or grading to obtain a uniform surface. In some areas, the grade is too steep or the soil too shallow to permit leveling, and, finally, some areas would require cut and fill levelling. Determinationof the best method would be made on the basis of the results of the detailed surveys and at the time of actual implementationof the project.

Operation and Maintenance Facilities

14. The project would include construction of 10 combination offices and dwellings for watermastersand gate tenders and a telephone system between the headquarters in Santiago and key points throughout the project area. The feasibility report divided the project area into units that represent natural sub-divisions, proposed as operational units for project management. For the sake of consistency, this report uses the same units, as follows:

Net Irrigated Area

Unit 1 (Gravity): land on the left bank served by the Bogaert and Almacigos canals 4,500 ha

Unit 2 (Gravity): Area downstream from Santiago on the right bank that would be commanded by the proposed highline canal to the Arroyo Jicome 12,700 ha

Unit 2 (pumping): area to be served by proposed pump scheme above highline canal on right bank 1,600 ha

Unit 3 (Gravity): area on the right bank commandedby the proposed highline canal and downstream from Unit 2 to the vicinity of Jaibon 8,700 ha ANNEX 4 Page 1

DOMINICANREPUBLIC

YAQUEDEL NORTE IRRIGATION PROJECT

Water Supply, Demand, Quality and Rights

Adequacy of Rainfall

1. Data on rainfall and other climaic conditions have been recorded at several stations in the project area and the upper watersheds of the Yaque del Norte and Bao rivers since 1921. Many of these records, however, are incompleteor inaccurate and for this reason the calculationsare based on the period 1958-70, a period of reliable record and long enough to reflect the extremes of climatic change.

2. The total annual rainfall in the project area tends to be fairly uniform from year to year, without extremelywet or dry years. At Santiago, for example, the wettest year during the 12 year period was 150% of the annual average and the dryest year was 73% of this average. Seven of the 12 years were very close to the average. In the project area, the annual average varies from 978 mm at Santiago, the upper end of the project area at elevation of 175 m; to 733 am at Valverde, which is near the center of the project at elevation 100 m; to 622 mm at Villa Vasquez, which is several kilometers inland from the coast and just below the project area at elevation 50 m. This tendency for the climate to become dryer and warmer from Santiago down the valley to the coast has a strong relation to the character of agricultural production and the need for irrigation in different parts of the project area. A study completed in 1969 for the Valle Occidental del Cibao, which includes the valley of the Rio Yaque del Norte and the upper part of the Rio Yuna Valley, derived the relationship at several stations between average annual and monthly precipitationand evapotranspirationas calculated for typical cultivated crops. The follow- ing table shows the deficienciesin availablemoisture at the three stations in the project area. ANNEX 4 Page 2

Comparisonof Average Precipitation and Evapotranspiration

Unit-mm Santiago Valverde Villa Vasquez Evapo- Evapo- Evapo- Precipi- trans- Defi- Precipi- trans- Defi- Precipi- trans- Defi- Month tation piration ency tation piration ency tation piration ency

January 55.5 84.2 28.7 21.5 92.7 71.2 26.4 87.8 61.4 February 54.1 85.9 31.8 28.8 98.1 69.3 26.2 99.5 73.3 March 58.6 116.9 58.3 39.7 132.9 93.2 35.7 135.0 99.3 April 75.5 138.9 63.4 73.3 159.3 86.0 57.7 150.7 93.0 May 175.8 153.5 0 126.6 184.1 57.5 89.1 185.1 96.0 June 67.3 165.5 98.2 87.3 193.8 106.5 81.5 203.7 122.2 July 52.5 177.0 124.5 27.4 210.8 183.4 37.4 215.1 177.7 August 59.4 186.0 126.6 39.2 221.4 182.2 32.0 212.5 180.5 September 101.5 164.9 63.4 83.2 194.2 111.0 55.3 195.2 139.9 October 101.7 143.7 42.0 97.1 175.3 78.2 74.9 183.5 108.6 November 101.3 110.4 9.1 58.7 131.6 72.9 81.1 131.5 50.4 December 74.8 89.9 15.1 50.8 102.7 51.9 65.0 99.0 34.0

Total 978.0 1,616.8 661.1 733.6 1,896.9 1,163.3 662.3 1,898.6 1,236.3

This table shows the monthly pattern of rainfall distributionwhich typicallyconsists of two rainy seasons, one in April-May-Juneand another from September through December. January through March and July-Augustare normally very dry. May is always the wettest month, but this season is short and, even at Santiago, there is a deficiency for rainfed cropping. Almost all the rainfed cultivationin the project area is carried on during the period September-Decemberbut it is only in the upper part of the valley that moisture is more or less adequate to achieve reasonable production levels. The table clearly demonstratesthat supplementalirrigation is re- quired throughoutthe project area, less in the upper valley and more in the lower part, to achieve satisfactoryyields. The requirementis even greater for a second crop during the spring and summer months and for certain crops such as rice and sugarcane.

Water Supply

4. The projectwater supply would be obtained by diversion from the Rio Yaque del Norte at Santiago. The flow at this point represents the combined flow of the Rio Yaque del Norte and the Rio Bao, the two main tributariesof about equal size that have catchment areas in the upper regions of the CordilleraCentral. These areas extend to elevationsof 1,000 m and annual rainfall ranges from 1,500 to 2,500 mm. This ensures a high average annual flow in excess of 1,200 Mm3 at Santiago. During the period 1961-70, the lowest annual flow was about 800 Mm3 in 1967 and the highest 1,800 Mm3 in 1970. In addition, several large tributaries,which also receive their supply from catchmentareas in the Cordillera Central, ANNEX 4 Page 3 join Yaque del Norte downstream from Santiago. The diversionof a total annual demand of about 500 Mm3 for the project would not prejudice present rights and uses below the project area.

5. The CIEPS proposal for a 40,000-ha project was based on operation of a 40 MW hydroplant at Tavera as a peaking plant for an average of about five hours each day. This pattern of operationwould drasticallyreduce the flow that could be diverted to irrigationsince more than 80% of the releases from Tavera would pass the diversionpoint within a very few hours. It was proposed that a reregulatingreservoir be constructedbelow the confluenceof the Yaque del Norte and Bao rivers to regulate releases on a daily basis. However, subsequentstudies have indicatedthat the heavy sediment discharge of the Rio Bao would make a reregulatingreservoir limited to a capacity of 4 Mm3 , impractical unless a dam is also constructed on the Rio Bao.

6. Feasibility studies for a dam on the Rio Bao will be completed within the next few months and a provisional request from the Government has been submitted to IDB for financial assistance to construct it. The two reservoirswould be interconnectedby a channel to be excavated through a natural valley. The additional storage in Bao reservoir would then make it possible to utilize the total installed capacity of 80 MW in the Tavera plant for both base load and peaking power. With regulation on both rivers, the present studies indicate that it would be possible to generate on base load at about one third of plant capacity for 20 hours each day and to meet peaking requirementsduring the remaining four hours. With this type of operation, the flow available at Santiago would be regulated to a minimum of 32 m3 /s, providing water sufficient for an irrigation project of 35,000 to 40,000 ha without the regulatingreservoir. Under these conditions,it would be feasible to extend the project into a second phase by including additional lands immediatelybelow the project or to undertake extension and improvementof lands in the lower part of the valley.

7. A reservoiroperation study based on the criteria of operating Tavera powerplantwith one unit (40 MW) for peaking, utilizing the unregu- lated flow of the Rio Bao to the maximum extent possible, and meeting de- ficienciesin diversion demand by additional releases from Tavera storage, demonstratedthat both the power and irrigationdemands could be met with only a minor deficiency in meeting the irrigationdemand, during four months in one out of 10 years. The study indicatesalso that more than 80% of the irrigationdemand would be met by normal flow of the Bao and that the balance would come from both power and irrigationreleases at Tavera. While the study confirms that the supply available to the project would be more than adequate, it also demonstratesthat Tavera dam and powerplant, when operated for peaking and without a reregulatingreservoir, would actually contribute a minor part of the supply to the project. It would provide limited benefit from using storage to supplement the low flows of the Bao and maintain a constant discharge at the diversion intake. It is ANNEX 4 Page 4 clear, however, that Tavera would provide even less benefit to a project larger than the one proposed unless, as noted above, a dam is built on the Bao and the powerplant is operated primarily for base load.

8. A summary of the reservoiroperation study on an annual basis is presented in Table 1.

Water Demand

9. The consumptive use requirements for all crops included in the proposed cropping pattern for the project (Annex 9) were estimated by the Blaney-Criddlemethod, modified for the clinatic conditions in the project area. The calculationson a monthly basis for each crop took into account double cropping and effective rainfall in the upper and lower zones of the project area. Effective rainfall was taken as one-half of the monthly averages for the period 1958-70. January and February were excepted since rainfall during those months is too low to have any appreciableeffect. Table 2 shows the estimated annual and monthly requirementsfor each crop according to the cropping calendar and the area in each crop, which, with double cropping, totals 33,250 ha. The monthly and annual diversion de- mands at the diversion headworks were calculated on thiebasis of an overall efficiency of 60%.

Water Quality

10. One of the most important benefits of the project would be the supply of good quality water to all lands in the project area. This would be possible with the excellent quality of the river flow at the diversion works, lined canals throughout the project, and an adequate drainage system. Tests of the flow at Santiago indicate a very low content of soluble salts, with a maximum of less than 200 ppm, composed primarily of calcium and magnesium bicarbonates,with minor amounts of sodium, chlorides, and sul- phates. Boron is not present and there are no excesses in any of the other minor elements. The sodium adsorption ratio is also low. The lined canals would minimize contaminationin transit and an adequate drainage system would convey the effluent out of the project area without remixingwith the irri- gation supply.

11. At the present time, the Bogaert and Navarrete system benefit from this water but downstream the soluble salt content progressively increases. This is mainly due to a high groundwatertable that dissolves salts from the saline marine sediments, from which the soils are derived, and brings them to the surface. In addition to creating a saline condition on a given area, a certain amount of these salts are picked up and returned to the river by the effluent from irrigationor subsurface flow of groundwater. This return flow increases the salt content of the river and when this water is reused downstream the process is repeated, thereby increasing the salt ANNEX 4 Page 5 content still more. For example, the Caneo canal shows a ppm of 500 while the Jicome has 1,250. This latter canal is the main supply to the Laguna Salada area where the salizinationof about 8,000 ha has seriously affected agriculturalproduction. The situation in this area is also worsened by a lack of proper drainage,which results in a saline groundwatertable near the surface. Water samples from the Laguna Salada run more than 2,000 ppm.

12. With an adequate drainage system to lower the groundwaterlevel and eliminate this source of salts, all of the saline lands in the project can be reclaimed easily and simply with a moderate supply of fresh water. Under these conditions, the salts would be flushed downward from the surface and carried off in the drainage system.

13. This reclamationphase, particularlyin the Laguna Salada, could increase the salt content of the river below the project area since the drainage system must ultimatelydischarge into the river. This, however, when mixed with the heavy dischargesof fresh water during peaking operations at Tavera dam which will flow downstreamwithout being deminishedby diver- sions, should not appreciably increase the salt content of the total flow or create a problem for projects in the lower valley that use this water. In the future this effect would diminish once the surface soils were fully leached and the dissolving cf salts in the marine sediments reduced by lowering the groundwaterlevel.

14. Another problem with water quality is the heavy sediment discharge of the Rio Bao during periods of high or flood flows. As noted in the section on ecology in the main report, the Bao watershed is subject to serious erosion during heavy rainfall and this produces sediments, ranging from silt to sand to gravel, which are deposited in the existing canal systems. Constant cleaning therefore is required, especially on Bogaert and Navarrete, but this problem will be eliminated on the proposed project by the desilting works.

Water Rights

15. In the Dominican Republic, the developmentand use of water re- sources, defined as part of the public domain, are subject to Law 5852, "Ley del Dominio de las Aguas Terrestres." This law covers virtually every aspect of water development,from both underground and surfaces sources, and for domestic, industrial,and agriculturaluses. It provides, among other things, for the creation of irrigation districts and the granting of titles for the use of water for irrigation.

16. In the law, the InstitutoNacional de Recursos Hidraulicos (INDRHI) is vested with authority to grant water titles based on an appraisal of the adequacy of works, existing or planned, to use the water effectively. This agency also has the responsibilityof supervisinguse of the water and en- suring that all conditionsof the law are fulfilled,including measurement of the amount of water used and establishingpriority of use between groups of farmers supplied from a common source. ANNEX4 Page 6

17. Under the law, a water title is inherent to the land and not to the individual who owns or farms the land. The title may be canceled or transferred to other land, subject to the judgment of INDRHI, and uses in the public interest have priority over private uses. Water users are obligated to request a specific amount of water each year that can be used effectivelyfor the purposes indicated in the title and this request is either granted or modified by INDRHI, depending on the water supply and facilities available to satisfy such requests.

18. In considerationof the existing irrigationsystems and water titles, in force in the project area, togetherwith the non-irrigatedland that would be brought under the new system, a great deal of work would be required by INDRHI to reorder existing titles and grant new titles. This would be particularlytrue with implementationof a land reform program whereby land ownership, farm size, and boundaries would be subject to con- siderable change. Furthermore,if water charges or land taxes would be assessed on a fixed cost per hectare basis, water titles would provide a minimum annual entitlementsufficient for two field crops each year (Annex 8). DOMINICAI REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Suzuary of Reservoir 0peration Study

I Annual Flow DiversionDe dDiversion - Su ~Tavera Diverio Dan }_ _ _ _ Rio Bao . From Power & Irrigationl Percent of Total Rio Bao at From Normal Percent Yaque Del Rio Yaque Del Norte Percent of Releases at Tavera Dam Percent of Flow of Saptiago Total at Santiago Flow of a of at3 Tavera Dam Total Demand Niorte m3 mitlior. Total Demand Normal Flow mj mlllier. Year m million m-; million mJ mi-llion 3 19 499.9 97 71 16.8 1961 858.2 699.5 516.7 7 6 480.0 93 91 36.7 1962 634.0 532.2 516.7 11 7 462.2 89 64 54.5 1963 829.8 717.7 516.7 24 30 393.2 76 92 123.5 1964 405.0 429.1 516.7 17 16 430.9 83 86 85.8 1965 550.6 500.5 516.7 9 7 471.9 91 81 44.8 1966 604.8 586.2 516.7 30 37 361.5 70 96 155.2 1967 425.o 377.5 516.7 20 82 78 91.1 18 1968 443.5 545.4 516.7 425.6 21 2 505.9 98 65 10.8 1969 658.8 789.9 516.7 5 3 490.9 95 58 25.8 1970 969.8 840.1 516.7 July, 1972 !(I DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Crop Water Requirements and Division Demand

Total Area Annual Requirement CroDR Cropped in Meters J F M A _ J J A S 0 N D

Rice 10,400 1.67 21.8 21.8 21.8 21.8 21.8 21.8 21.8 21.8 Plantains 2,300 0.63 0.69 1.15 1.61 1.84 1.61 2.30 3.00 2.30 1.38 0.69 0.46 0.23 Manioc 300 0.43 0.05 0.09 0.12 0.14 0.12 0.18 0.21 0.18 0.11 0.05 0.04 0.02 Sugarcane 2,200 1.29 1.54 1.76 2.42 2.64 2.20 3.08 3.74 3.52 2.64 1.50 1.10 0.80 Tobacco Criollo 1,300 0.32 1.37 1.37 0.38 0.70 Tobacco Olor 8,500 0.32 9.35 9.35 6.80 5.10 Beans 2,470 0.22 1.23 1.97 2.71 2.22 0.98 1.97 2.22 1.23 Vegetables 800 0.47 0.72 0.80 0.80 0.80 0.40 0.24 Peanuts 1,500 0.36 0.90 1.50 1.50 1.50 Corn 1,400 0.28 0.56 1.12 1.82 0.70 0.56 1.00 1.18 0.50 Sorghum 1,300 0.28 0.65 1.56 1.30 0.65 Soybean 2,160 0.39 1.00 1.94 3.02 0.61 1.00 2.60 2.16 1.29 Pepper 400 0.36 0.44 0.44 0.25 0.12 0.16 Tomatoe 820 0.36 0.98 0.98 0.60 0.24 0.41

Total 35,850 Monthly Crop Water Requirement 15.1 16.0 13.0 30.9 32.7 36.4 33.8 6.6 30.0 30.9 30.0 32.5 Monthly Diversion Demand 36.2 40.0 21.5 38.7 68.7 81.2 53.0 17.0 28.2 47.5 47.2 37.5

Total Irrigation Requirement 307.9 Mm

Total Diversion Demand 516.7 Mm

December, 1972 ANNEX 5 Table 1

DCMINICANREPUBLIC

YAQUEDEL NORTE IRRIGATIONPROJECT

Cost Estimates

US Million Item L Foreign Total

Headworks 0.7 1.0 1.7 Main canal to km 3.5 0.2 0.4 0.6 Unit 2 (Gravity) Main canal to km 36.5 1.9 2.9 4.8 Distribution system 1.9 2.8 4.7 Drainage system 0.5 0.8 1.3 on-farm development 0.8 1.1 1.9

Unit 2 (Pimping) Pumping plant 0.1 0.2 0.3 Distribution system 0.4 0.6 1.0 Drainage system 0.1 0.2 0.3 on-farm development 0.1 0.2 0.3 Unit 3 (Gravity) Main canal to km 72.8 1.4 2.1 3.5 Distribution system 1.0 1.4 2.4 Drainage system 0.6 0.8 1.4 On-farm development 0.5 0.7 1.2

Total Civil Works 10.2 15.2 25.4

Land Acquisitionand Resettlement 3.2 - 3.2 Equipment - 0.6 0.6

Buildings 0.2 - 0.2

ConsultantServices 0.7 2.4 3.1 Sub-total 14.3 2 Contingencie s Physical 1.1 1.7 2.8 Price 0.6 3.1 3.7

Grand Total 16.0 23.0 39.0

December,1972

ANNEX 6 Table 1

DOMINICANREPUBLIC

YAQUEDEL NORTEIRRIGATION PROJECT

Estimated Schedule of Expenditures

Total Calendar Year Item Cost 1973 1974 1975 1976 1977 1278 1979 ------US million------

Feadworks and Desilting Works 1.7 - 0.3 0.7 0.7 - - - M:ainCanal to km 3.5 0.6 - - 0.3 0.3 - - -

U;nit2 (Gravity) Main Canal to km 36.5 4.8 - - 1.6 1.8 1.4 - - Distributionsystef 4.7 - - 0.9 1.8 2.0 - - Drainage system 1.3 - - - 0.6 0.7 - - On-farm development 1.9 - - - 0.5 0.6 0.8 -

Unit 2 (Pumping) Pumping plant 0.3 - - - 0.1 0.2 - - Distributionsysten 1.0 - - - 0.3 0.5 0.2 - Drainage system 0.3 - - - 0.1 0.1 0.1 - On-farm development 0.3 - - - - 0.1 0.2 -

Unit 3 (Gravity) Main Canal to km 72.8 3.5 - - - 1.0 2.0 0.5 - Distribution system 2.4 - - - 0.4 1.0 1.0 - Drainage systen 1.4 - - - 0.3 o.6 0.5 - On-farm development 1.2 - - - - 0.6 0.6 -

Total Civil Works 25.4 - 0.3 3.5 7.9 9.8 3.9 -

Land Acquisitionand Settlement. 3.2 - 0.3 0.6 1.0 0.8 0.5 - Equipment 0.6 0.1 0.1 - 0.2 0.2 - - Buildings 0.2 - - - 0.1 0.1 - -

ConsultantServices 3.1 o.4 0.5 0.6 0.5 0.5 0.5 0.1

Sub-Total 32.5 0.5 1.2 4.7 9.7 11.4 4.9 0.1

Contingencies Physical 2.8 - 0.1 o.5 1.0 1.0 0.2 - Price 3.7 - 0.1 0.5 1.o 1.4 0.7 -

Total 39.0 0.5 1.4 5.7 11.7 13.8 5.8 0.1

November, 1972 ANNEX 6 Table 2 DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Estimated Schedule of Disbursements

IBRD/IDA Fiscal Cumulative Disbursements1/ Year and Quarter End of Quarter - US$'000 1973/74 March 31, 1974 200 June 30, 1974 400

1974/75 September 30, 1974 500 December 31, 1974 600 March 31, 1975 800 June 30, 1975 1,020

1975/76 September 30, 1975 1,330 December 31, 1975 1,630 March 31, 1976 1,930 June 30, 1976 2,300

1976/77 September 30, 1976 3,120 December 31, 1976 3,940 March 31, 1977 4,760 June 30, 1977 5,570

1977/78 September 30, 1977 6,590 December 31, 1977 7,610 March 31, 1978 8,680 June 30, 1978 9,840

1978/79 September 30, 1978 10,580 December 31, 1978 11,320 March 31, 1979 12,000 June 30, 1979 12,400

1979/80 September 30, 1979 12,800 December 31, 1979 12,900 March 31, 1980 13,000

1/ Quarterly disbursements follow expenditures with an estimated lag of 6 months. ANNEX 7 Page 1

DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

ConsultantServices

1. Consultantservices would be provided for the followingtwo main purposes:

(a) for detailed surveys, final design, and supervisionof constructionof the civil works, includingon-farm devel- opment; and

(b) for coordinationand assistanceon agrarian reform, credit, research,operation and maintenance,and extensionduring the agriculturaldevelopment phase of the project. Negotia- tions are already underway with a firm experiencedin en- gineering and construction and the agricultural development phase of the project will require the services of a firm with specialized experience in this field.

2. It is envisaged that these consultant services would be provided by two separate firms, one specialized in engineering and the other in agri- cultural development.

3. The Instituto Nacional de Recursos Hidraulicos (INDRKI) would assign full responsibility to a consulting firm for surveys, design, con- tracting, and supervisionof construction,as the present staff of INDRHI is not adequate to undertake additionalresponsibility for the project. The consultingfirm would also be required to recruit local staff to complement the expatriatestaff. INDRHI would retain general responsibilityfor contract administrationon both the consultantand constructioncontracts, and to approve plans and specifications,select prospectivecontractors and issue tender documents,negotiate and sign contracts,approve estimates and make payments for work accomplished,and manage the financialaspects with respect to both local currency and foreign exchange.

4. The consultant firm for the engineeringand constructionphase would be responsiblefor the followingactivities;

a) Review the proposed plan for the project and perform additional studies as required;

b) perform detailed surveys as required for design and layout of the project, including topographicsurveys for land leveling;

c) prepare final designs, specifications, and cost estimates; ANNEX7 Page 2

d) prepare mass diagrams, quantity estimates and elevations for land leveling;

e) provide layout stakes for the contractor and make final inspections for compliancewith specifications;

f) prepare tender documents and contracts and assist in evaluationof bids;

g) supervise construction,perform final inspections,certify payments to contractorsand for withdrawals from the credit;

h) prepare specificationsand assist with inspection and acceptanceof equipment and materials purchased directly by INDRHI for the project;

j) prepare progress reports as required; and

k) provide in-service training to local staff employed on the project.

5. The compositionof the engineeringconsultant team would include surveyors,topographers, draftsmen, design engineers, constructionengineers, inspectorsand administrativestaff. In the proposed constructionschedule, the work of the consultantswould begin in January 1973, or before if possible, and extend through the estimated five year construction period. The lapse of one year before constructionactually begins is due to the large amount of survey and design work to be performed at the beginning of the project.

6. The consultants team for the agriculturaldevelopment phase would be responsible for:

(a) assistancein the preparationand timing of a detailed plan for acquisition and redistributionof project lands;

(b) assistance in the implementation of this plan over the project period, including the settlement of farm families;

(c) coordination and strengthening of the extension services under the project, to assist the farmers in the adoption of a more intensive cropping pattern;

(d) assistance to the credit and marketing services under the project, in order to coordinateand supervise the channeling of credit to project farmers; ANNEX7 Page 3

(e) assistanceto the operation and maintenance services under the project in order to prepare and implement a water delivery schedule, prepare an operation and maintenance manual and organise the collectionof water charges, and

(f) provision of in-servicetraining to local staff employed on the project.

7. The agriculturalconsultant team would be employed over a 5-year period (1974-78);it would be headed by a senior extension specialistand include experts on agronomy, irrigationpractices, operation and maintenance, credit and marketing, and agrarian reform. It is presently estimated that two of the five experts would be provided by UNDP/FAOand ICO.

8. An important function of the consultants for the engineering, constructionand agriculturaldevelopment phases of the project would be to provide in-service training to local staff assigned or employed on the project. This training would be provided on a number of technical activities related to engineering and construction, on operation and maintenance of the completed works and on the extension, credit and land reform aspects of the agricultural development phase. One of the main objectives would be to improve the organizationand develop procedures for operation and main- tenance and the extension and credit programs which would continue to serve the project in the future. The local staff which would benefit from this training is estimated as follows:

Type of Staff Number

a) engineeringand technicalstaff on surveys, design and construction; 30

b) agronomists on research and crop production; 6

c) extension agents providing assistanceto farmers; 10

d) extension agents on credit and marketing; 6

e) land reform specialists; 4

f) technicaland operating staff on operation and maintenanceof the project and improvementof irrigationpractices. 30

ANNEX 8 Page 1

DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Operation and Maintenance

1. Law No. 5852 of June 1966 puts the responsibilityfor operation and maintenance of all irrigation systems constructed by Government in the hands of INDRHI. This also includes the granting of titles for use of water, the approval of annual water allotments on request, the scheduling of water deliveries and the collectionof water charges. The law also establishesa basic charge of RD$ 2.50 per ha for all irrigated farms up to 10 ha and RD$ 5.50 for each additional ha. These rates are still in force even though it was planned to increase them progressively over the years. Furthermore,collection of these charges is not always enforced due to the malfunctioningof the system under present conditions, and to the fact that large water users such as the sugarcane plantation have been exempted from paying water charges. It is evident, therefore, that revenues from water charges have never been adequate and, although collections have improved in recent years, they still representonly 15% of INDRHI's operating budget.

2. Under the project, field staff would be increased and additional equipment purchased for operation and maintenance (Table 1). An important part of the increase in staff would be additional water masters and gate tenders so that the delivery and measurements of water supplied could be controlledmore accurately than at present. Annual operation and maintenance costs for the 27,500 ha project at full development are estimated as shown in the table below:

Item Estimated Annual Cost RD$ Personnel 242,000 Equipment operation (including depreciation) 160,000 Electric energy for pumping 32,000 Materials and supplies 16,000

Total 450,000

On this basis, annual operation and maintenance costs would be recovered if a fixed annual charge of RD$ 17 per na were imposed on all lands commanded by the system. In addition, it is presently estimated that an additional charge would be imposed to recover a portion of the investment costs; tle ANNEX8 Page 2

mount of such levy and its allocation between the various categories of water users would be determined by the water charges study. In any case, however, the level of charges would substantiallyincrease as a result of the project and no exemptions would be allowed in the future. ANNEX 8 Table 1

DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

List of Equipment

Estimated Number Cost CIF 1. Operation and Maintenance US$ '000 Draglines,-3/4 cu yd,40 ft boom 2 90 Tractor, 180 hp, track type, with angle dozer 1 45 Motorgraders, 125 hp, 12 foot blade 2 60 Excavator, mobile, gradall type 1 30 Truck, heavy duty with trailer, 10 ton 1 26 Trucks, dump, 5 cu yd 4 40 Trucks, stake, 2 ton 2 12 Trucks, pickup, 3/4 ton 2 8 Mobile servicing unit 1 10 Vehicles, utility, 4-wheel drive 4 12 Motorcycles 15 5 Vehicles, station wagon 4 12 -Miscellaneous (concrete mixer, welding machine, shop equipment and tools) lot 20 Telephone equipment lot 50 Sub-total 420

2. Engineering-and Supervision Vehicles, station wagon, 4-wheel drive 6 20 Vehicles, pickup, 1 ton 2 9 Vehicles, station wagon, standard 6 18 Laboratory, engineering and office equipment lot 18

Sub-total 65

3. Extension Service Vehicles, utility, 4-wheel drive 10 30 Vehicles, station wagon 10 30 Miscellaneous equipment lot 15

Sub-total 75

Contingencies and spare parts 40

Total 600 July, 1972

i,OMINICAN REPUBLIC

YAQOTEDEL NORTE IRRIGATION PROJECI

t'uture Croppinig Paetern Without the Project-/

Crops ('ropped Gross Value of Production Area Yield Price Production Cost Net Value of Production (iia) ron/ha) (RDS/ton) (ROB/ha) (RD$ /ha) (RDiS/ha) (RDS '000)

1ighlt Bank Area 11.500 2,039.5

irrigated 9,500 1,322.0

S-uga.'rane_z 2.''00 85.00 7.50 637.50 356 281.50 619.3 4 lire '5,600 1.67 1210.00 200.40 '06 94.40 528.6 Plantain.s 4! 1,400 15.00 13.00 195.00, 9S 98.00 137.2 loriatoes 300 20.00 30.50 610.00 487 123.00 36.'

N,--lrrigartd ',400' 717.5

lo.acco Cri,llo 1,300 1.00 500.00 500.00 240 260.00 338.0 Tobac5e Olor 500 0.85 87C.00 739.50 357 382.50 2'9.5 OiLer- 500 - - - - - 150.0

L.eftBank Are.a 3,100 368.5

lrrigat,d 2,80 270.4

ice -/ 1.800 1.67 120.00 200.40 106 94.40 169.9 l'lautainsis 900 15.00 13.00 195.00 97 98.00 88.2 IOMMols 100 20.00 30.50 610.00 487 123.00 12.3

Nou-trrigate 300 98.1

tobtaccoCriolto 150 1.0 500.00 500.00 240. 260.00 39.0 lobacco Oior 50 0.85 870.00 739.50 357 382.50 19.1 00,- r_ 1100 - - - - - 40.0 'OI'Al 1S,000 2,408.0

Income fr,'n I sv-tock 358.7

C IAN" "O!'A' 2,766.7

I ' PreselnL :rod.cr:n dilffers trom fulture production without the projec: to t"he extent that 'a) sugarcane xtelds are -plectod to' decline from 105 rons to 85 tons per ha due to increas-no sllilt. decli-e n net nroduction vjale of TDS330,0l); 5b) the tobacco area is expected to increase 5: '00 'a ith a sh.ft from .riollo (-200 ha) co the more profitable .lor varietes (+400 ha) with a resulting net increase in production vala- .of "SIh3,000, and kc) v-,ild increases of I per annum ' ave been assu:ed during the development period for all crops other thar rice and sugarcane witi a corresponding increase n production costs of 0,7' per annum; resiLting in a net increase in production value of about ROS160,000.

2.' rN, rrice of s,drcane 'an Seen calculated on the basis of a sugar price of RDSO.06 per lb with extraction rate if .S and oO' of the value going to cane production.

3' .he old of nadd. is 1.3 ton per ',a on first crop and 0.7 ton per ha ratooct crop, the latter being harvested .n Sos 50 of tlie otail rice acreage.

-'.y eld and rrice of plantain, is calculated in stems of 1,000.

5/ Includ-s small acrea-es of 'ica, sorhunm. corn. neanuts, onions, beans, chickpeas and fodder crops.

.ni , 1)7' DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Future Cropping Pattern With the Project

Crops Cropped Gross Value of Production Net Value of Production Area Yield Pric', Production Cost before W7ater Charges (ha) (ton/ha) (RD$/ton) (RD$/ha) (RD$/ha) (RD$/ha) (RD$'000)

Right Bank Area 29,650 9,593,7

Sugarcanel/ 2,200 120 7.50 900 465 435 957.0 Rice 7,450 3.5 120.00 420 218 202 1,505.0 Plantains 2/ 1,550 25 13.00 325 121 204 316.2 Tobacco Criollo 1,200 1.4 500.00 700 277 423 507.6 Tobacco Olor 8,000 1.2 870.00 1,044 515 529 4,232.0 Sorghum 800 3.5 60.00 210 65 145 116.0 Corn 900 4.0 65.00 260 75 185 166.5 Manioc 300 11 44.00 484 69 415 124.5 Peanuts 1,500 1.8 185.00 333 159 174 261.0 Soybeans 1,900 1.6 130.00 208 105 103 195.7 Tomatoes 700 30 30.50 915 520 395 276.5 Peppers 400 18 43.50 783 340 443 177.2 Red and Black Beans 1,950 1.5 220.00 330 119 211 411.5 Other Vegetables 800 ------347.0

Left Bank Area 6,200 834.1

Rice 2,950 2.0 120.00 240 130 110 324.5 Plantains2/ 750 15 13.00 195 121 74 55.5 Tobacco Criollo 100 1.1 500.00 550 262 288 28.8 Tobacco Olor 500 0.9 870.00 783 470 313 156.5 Sorghum 500 3.0 60.00 180 65 115 57.5 Corn 500 3.4 65.00 221 75 146 73.0 Soybeans 260 1.2 130.00 156 98 58 15.1 Red and Black Beans 520 1.3 220.00 286 113 173 90.0 Tomatoes 120 25 30.50 762 486 276 33.2

TOTAL 35,850 10,427.8

Income from Livestock 834.9

GRAND TOTAL 11,262.7

Cropping Intensity 130%

1/ See footnote (2) table 1 of this annex. ! 2/ See footnote (4) table I of this annex.

July, 1962 DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Analysis of Production Costs with the Project

Rice Plantains Tobacco Tobacco Peanuts Soybeans Corn Sorghum Beans Tomatoes Criollo Olor ------RD$/ha------______

Seeds 11.0 8.0 16.0 16.0 9.6 4.0 3.8 1.6 7.2 64.0 Fertilizer 40.0 40.0 48.0 57.6 14.4 6.4 6.2 2.4 6.4 44.8 Pesticides 18.4 24.0 20.8 20.8 5.6 2.4 2.4 - 2.4 28.8 Other 1/ 8.0 4.0 24.0 24.0 - - - - - 24.0 Power 2/ 80.0 9.6 9.6 44.0 48.0 48.0 48.0 48.0 48.0 72.0 Interest 3/ 6.4 12.0 22.0 30.6 15.2 4.0 1.8 1.8 2.4 19.2 Hauling 4.0 20.0 13.2 13.2 24.3 5.3 6.7 8.0 8.0 - Equipment maintenance 3.0 3.2 3.2 3.2 3.2 3.2 1.6 3.2 3.2 3.2 Hired labor4 47.2 - 120.4 305.0 38.4 32.0 4.6 - 41.4 264.0

Total 218.0 120.8 277.2 514.4 158.7 105.3 75.1 65.0 119.0 520.0

------Man-days/ha/year------Estimated total labor requirement (including family labor) 175 106 114 226 98 69 47 24 63 214

1/ Fences, maintenance of irrigation and drainage ditches, weed control. 2/ Use of draft animal power or depreciation and interest on machinery. It has been assumed that 50% of 3.75 ha farms would be partly mechanized and 50% would use draft animals; all farms under 3.75 ha would not be mechanized and all farms of 7.5 ha and more would be mechanized at least for land preparation and to the extent that corn, sorghum, peanuts and soybeans would be grown, for harvesting. 3/ Interest on short term credit (calculated at annual rate of 8%). 4! Costed at current wage rates of RD$2.00 per day. The hired labor component has been calculated for an average farm size of 7 ha at full development; on a per ha basis, it would in practice be lower on small > farms and higher on large farms.

August 14, 1972 w c

ANNEX 10 Page 1

DOMINICANREPUBLIC

YAQUEDEL NORTEIRRIGATION PROJECT

Marketing

Rice

1. Rice is one of the basic foodcrops, with an average per capita consumptionof about 25 kg per year. Production in the country has increased from 110,000 tons in 1961 to about 200,000 tons in 1970, or about 7% per year, which is more than double the increase in population. As a result, rice imports have been all but eliminated and with a relatively slow increase in total consumption(4% per year), the country is rapidly heading for rice production in excess of its requirements. This trend could even become more pronounced as the use of higher yielding varieties, developed by the National Rice Research Institute, increases.

2. The increase in productionhas been mainly the result of high support prices; the Governmentsets floor-pricesby means of import levies, which establishesthe rice price at wholesale level. In addition, it guaran- tees the farm-gateprice for paddy, thereby fixing milling-industrymargins within a certain range. This support program is backed up by Government purchases through the Price Stabilisation Institute (INSPRE), in order to reduce seasonal price fluctuations. At present, farm-gate prices for paddy average around RD$ 120 per ton and wholesale prices for rice (20% broken) reach some $230 per ton, or 55% above world market prices CIF Santo-Domingo.

3. It is Government policy to avoid subsidized exports to the extent possible. It would, however, be politicallydifficult to lower support prices significantlyas the majority of farms with rice fields are small; in addition,once law no. 290 on expropriationof rice lands has been applied, no farms will remain with rice fields in excess of about 31 ha. Although it is too early to judge the law's effect on rice production,there is a widespreadfeeling in the country that - at least initially- production would drop off. In the long run, however, an increase in water charges and, more particularly,a better enforced collectionof such charges,would help to balance rice production in accordance with domestic requirements.

4. With a projected increase in rice consumptionof about 4% per year, which is based on an annual populationgrowth of between 2.5 and 3.0% and an increase in per capita consumptionof rice between 1.0 and 1.5%, overall demand for rice in the country by 1985, when the project is expected to reach full development,would be about 390,000 tons per year. The project's share in this total would be about 9%, which is slightly above its present contributionof 7%. With the Yaque del Norte expected to be one of the ANNEX 10 Page 2

country's major undertakingin the field of irrigationin the coming years, the project's share in the national rice productionwould not represent any marketing difficulties.

Tobacco

5. Tobacco productionhas increasedsharply over the last six years mainly as a result of favorableprices and the introductionof new varieties with low nicotine content, which are strongly in demand. About 85% of domestic production is exported every year; exports have gone up from US$6.6 million in 1966 to US$20.7 million in 1971, and are directed mainly towards Western Europe, where Dominican tobacco is used as filler material for cigars. Most of the increase in exports in the last two years, however, is due to the successfulintroduction of Cuban-typetobacco, which is in strong demand in the United States and Puerto Rico markets, and, at the same time, commands prices which are about 50% to 60% higher than those for the traditional "criollo"and "olor" varieties.

6. While the prospects for export are extremely favorable,the dom- estic market also has good potential for development. At present, consumers' taste is changing from the "criollo",or "black tobacco", cigarette to the higher priced burley and Virginia types, for which the tobacco is mostly imported from the United States. Virginia and burley tobacco, however, have been successfullyintroduced in the tobacco-growingareas, and, with the present trend, a strong increase in domestic productionis expected,which in time could substitutefor existing imports.

7. The marketing structure for tobacco in the project area is also fairly well developed;16 export firms are represented in Santiago and buy or contract the harvest directly with the producers. In addition, the Tobacco Institute,an autonomousGovernment agency, as well as the Cooperative Union of Tobacco Producers buy and sell tobacco both on the domestic market and on the export market, and have a supervisedcredit program for short term credit to the farmer. Although most of the tobacco is presently grown under rain-fed conditions, the possibilitiesfor increasingyields under irrigation,as well as improvementin quality through the combat of diseases, have been demonstratedon the experimentalfields of the Tobacco Institute, located in the project area.

8. It is thereforeexpected that, with the project, productionwould increase eight-fold, with a major shift from the "criollo" to the higher priced Virginia and Cuban varieties. The increase would be due both to an extension in acreage and from yield increases. This would be equivalent to a production increase of 25% to 30% per year during the development period; increases in dry-land tobacco during the last three years have averaged around 15% to 20% per annum. ANNEX 10 Page 3

Sugar

9. A Government-ownedsugarcane plantationof about 2,000 ha is lo- cated in the project area and it presently receives all its water require- ments from the existing irrigation system. The only benefits it would realize from the project would be improved drainage and a consequentreduc- tion in salinity,which is beginning to affect sugarcaneyields. Only a marginal increase in sugar production is expected under the project.

Oil Seeds and Feed Grains

10. Groundnuts, the only sizeable vegetable-oilcrop produced in the country, are also grown on a small scale in the project area. Yields are low, but, with prices supported at about 25% over present world market price levels, productionhas expanded to about 75,000 tons in 1971, covering some 50% of domestic demand. Peanuts are mostly bought up by the principal vegetable oil producer, La Manicera, and processed, together with soybeans into oil and feed concentrates. Demand for vegetable oil has been rising at 15% per year during the last decade and similar increases are experienced with processed feed.

11. Soybeans are not commerciallyproduced in the country but have produced excellent yields under field trials in the project area. Although the crop is slightly less profitable than peanuts, demand for it would be strong, mainly for animal feed processing. In addition, the marketing system is quite favorable for the promotion of peanuts and soybeans, as La Manicera has establishedpurchase points throughoutthe country, operated by its own personnel or commissionedagents; considerablemargins between producer prices and factory purchase prices are thereby avoided.

12. Corn and Sorghum are both produced in the project area at present, although in small and declining quantitiesbecause of poor cultivation practices and variety deterioration. Experimentaltrials in the project area have however, demonstratedthe high yield possibilitiesof improved varieties. Increased demand, mainly as pork and poultry feed, is apparent in the 30% rise in imports over the 1967-1971period. Production of corn and sorghum in the project area would benefit both local production of poultry and hogs and establish a dependable supply of feed for areas adjacent to the project area, where poultry and hogs are already commerciallyproduced.

Plantains

13. Plantains are a primary food crop in the country and are extensively produced in the project area for local consumptionand, to some extent, for supplying the city of Santiago. Annual per capita consumption averages around 95 kg and is not expected to increase significantlyin the future. The annual increase in production resulting from the project would only be marginal: no expansionof acreage is foreseen,while yields would increase ANNEX 10 Page 4 about 2.5% annually up to 1985 mainly because of better drainage, more use of fertilizer and better root stock treatment,which is within the expected increase in demand.

14. Plantain exports to Puerto Rico and, to a minor extent, to mainland USA, have increased from 46 tons to 4,000 tons per year over the 1968-1971 period; the latter still representingonly 1% of domestic production. Most plantains for export come from areas near Santo Domingo, such as the Azua plain, and have the advantage of lower transportationcost. The project area is not expected to become a significant producer for the export market.

Vegetables

15. Vegetable production in the project area is limited at present to tomatoes for processing under contract to two tomato processing plants in the area, and to onions, beans and sweet potatoes on small acreages. Green vegetables are not grown, even for the family food supply in the farmers' home gardens. Such vegetables, at present, have only a limited market in the urban centers, as they are regarded as a luxury item and not normally a part of the Dominican diet. Moreover, domestic demand is presently satis- fied by other producing areas closer to city markets and where rainfall is adequate.

16. Vegetable export possibilities,notably the export of winter vegetables to Puerto Rico (where production is declining) and mainland US, are promising; however, the conditions for success in these markets, espe- cially in regard to demands for quality, dependabilityof supply, grading, packaging and transportation,are so high that they can only be satisfied by a fairly large-scalecommercial operationwith good know-how and an inte- grated supply-marketing chain. Even so, experimentation and research would have to precede any commercial operation, as demonstrated elsewhere in the country. In addition, Dominican produce has to bear fairly high costs be- cause of inefficienthandling and transportationand has difficulty in com- peting with other foreign suppliers of the US winter vegetable market; it can only do so if efficiency in production and marketing is achieved from the outset.

17. It is expected that vegetable production in the project area would graduallydevelop and cover about 800 ha at the end of the developmentperiod. Most of the produce would come from tomatoes, black beans, both fresh and for processing, and other miscellaneous vegetables such as peppers, onions, garlic, chickpeas and sweet potatoes. This forecast is based on the experi- mentation, research and marketing carried out by the two processing plants, one of which is co-owned by an experienced US firm. DOMINICAN REPUBLIC

YAQUE DEL NORTE IRRIGATION PROJECT

Farm Budgets

Rice Farms

Farm Size 3.75 ha 7.5 ha 10 ha 20 ha

Present Future Present Future Present Future Present Future

Cropped area under rice (ha) 3.75 6.50 7.5 13.1 10 16.5 20 27.8 Production (tons) 6.3 22.9 12.5 45.9 16.7 57.8 33.4 97.5 Farmgate price (RD$) 120 120 120 120 120 120 120 120 Gross value of production (RD$) 756 2,748 1,500 5,508 2,004 6,936 4,008 11,700 Production costs (RD$) 398 1,431 795 2,856 1,020 3,597 2,040 6,060

Net value of production before water charges (RD$) 358 1,317 705 2,652 984 3,339 1,968 5,640 Water charges (RD$) / - 64 - 128 - 170 - 340

Net farm income 358 1,253 705 2,524 984 3,169 1,968 5,300 Off-farm income 60 124 ------

Total farm income (RD$) 418 1,377 705 2,524 984 3,169 1,968 5,300 of which: accruing to family labor 2/ - 718 - 1,120 - 1,200 - 1,200

1/ Only operation and maintenance are fully covered under water charges;, the investment cost recovery is to be determined by the water charges study. 2/ Based on a maximum family labor availability of 600 man/days per year (two adult workers at 25 days/ month each) valued at RD$2. per day. wjrui LL.JW nxLruflL.L

laugdeN orte Poect

Farm Budgets

Tobacco Farls (Olor Tobacco)

Farm size 3.75 ha 7.5 ha 10 ha

Present Future Present Future Present Fature

Cropped area (ha)

- tobacco 3.75 3.75 7.5 7.5 10 10 - other crops - 1.5 - 3.8 - 5

Gross value of production (RD$)

- tobacco 2,789 3,915 5,600 7,830 7,395 10,440 - other crops - 586 - 1,167 - 2,820

Total 2,789 4,501 5,600 8,997 7,395 13,260

Production costs (RD$) 1,338 2,156 2,678 4,319 3,570 6,975

Net value of production before water charges (RD$) 1,451 2,345 2,922 4,678 3,825 6,285

Water charges (RD$) - 64 - 128 - 170

Net farm income (RD$) 1,451 2,281 2,922 4,550 3,825 6,115

Off-farm income (RD$) 173 - - - -

Total farm income (RD$) 1,278 2,281 2,922 4,550 3,825 6,115 of which: accruing to family labor 2/ - 375 - 750 - 1,000

1/ It is not expected that farms larger than 10 ha would cultivate olor-tobacco as a main crop i/ See footnote 1, table 1 of this anmex. 21- 2/ See footnote 2, table 1 of this annex. Family labor on tobacco farms is not fully employed because of the heavy concentration of seasonal work. DOMICAN REF;tBLIC

Ya _uedel Norte Project

Farm Butts

gbrbean - Tomatoes - Vegetable Farms Corn - Beans - Vegetable Farms

Farm size 7.5 ha 10 ha 20 ha 50 ha 7.5 ha 10 ha 20 ha 50 ha

Cropped area (ha)

- soybeans 3.1 4.1 8.2 20.5 1.6 2.1 4.2 10.5 - corn 0.2 0.3 o.6 1.5 2.6 3.5 7.0 17.5 - tatoes 2.0 2.7 5.4 13.5 - - - - - vegetables 3.0 4.0 8.0 20.0 2.2 2.9 5.8 14.5 - beans _ _ _ _ 2.2 2.) 5.8 14.5 - other crops . 2.9 3.9 7.8 19.5 2.7 3.6 7.2 18.0

Gross value of production (RD$) 6,090 8,150 16,240 40,620 3,660 4,890 9,780 24,450

Production costs (RD$) 3,510 4,780 9,760 24,800 1,706 2,280 4,560 11,700

Net value of production (RD$) 2,580 3,370 6,480 15,820 1,954 2,610 5,220 12,750 2/ Water charges (RD$) 128 170 340 850 128 170 340 850

Farm Income 2,452 3,200 6,140 14,970 1,826 2,440 4,880 11,900 of which: accruing to family labor / 1,120 i,200 1,200 1,200 1,040 1,200 1,200 1,200 1/ Farms with these rotations do not exist under present conditions

2/ See footnote 1, table 1 of tlis annex.

2/ See footnote 2, table 1 of this armex.

&1S CDw1

ANNEX12 Page 1

DOMINICANREPUBLIC

YAQUEDEL NORTE IRRIGATION PROJECT

Economic Analysis

1. The following assumptions were made in evaluating the project's economic rate of return:

(a) Prices. Commodity prices used in the economic calculations are based on Bank's Economic Department forecastsof world market prices for the early 1980's. They are lower than the projected prices used in the financialanalysis for rice, sugar, groundnutsand soybeans. In the case of rice, groundnuts and soybeans, projected CIF-SantoDomingo prices were used for the economic analysis, from which transportationcharges, and -- in the case of rice -- milling costs, were deducted in order to arrive at the farm-level price. In the case of sugar, a projected FOB price of US$0.055 per lb for non-quota exports was used to determine the ex-factory price. Farmgate prices differ between the financial and economic analysis as follows:

Farmgate Prices Financial Analysis Economic Analysis ------RD$ per ton------

Paddy 120 70 Sugar 1/ 132 121 Groundnuts 185 120 Soybeans 130 105

(b) Extension Services. All extension services (RD$0.1 million per year) have been included as a project cost; during the first five years they are included under consultantservices.

(c) Investment Costs. All investmentcosts have been included except RD$2.6 million for land acquisition,which is regarded as a transfer of ownership and thereforenot a cost to the economy; RD$0.5 million for the purchase of operation and maintenance equipment, the depreciationof which is included under operation and maintenance costs; and RD$3.7 million for price contingencies. As project benefits from construction of Tavera-Dam would be marginal, no related costs have been

/ Current f.o.b. prices formed the basis for calculating the ex-factory price for financial purposes. ANNEX12 Page 2

included. The cost of over designing the capacity of the main canal in order to allow for future extensions of the irrigated area has been estimatedat about RD$2 million. These costs have not been deducted in the economic analysis, as the timing of such an extension (which is related to construction of an additional dam) is still uncertain, and the effect on the rate of return would in any case be less than 1%.

(d) Labor Costs. In view of the high unemploymentrate in the region and the considerableunderemployment of the agri- cultural labor force, family labor has not been costed, while unskilled hired labor has been costed at a subsistence level equivalent to 75% of the legal minimum wage rate.

(e) DevelopmentPeriod. It has been assumed, that it would take eight years from the start of irrigation to achieve full project production. The rate at which project lands were assumed to be provided with a completed irrigation system and an assured water supply is as follows:

Calendar Year Area 1976 1977 1978 --- ha- Left bank 4,500 - - Right bank 5,000 10,000 8,000 Cumulative total 9,500 19,500 27,500

Annual benefits were assumed to increase over the eight-year period at the following cumulative rates: 5, 15, 30, 50, 70, 85, 95 and 100%.

2. Cost and benefit streams, reflecting the above assumptions,are presented in Table 1 of this Annex. The internal rate of return to the economy would be 14%.

3. To measure the impact of changes in the project's parameter, sen- sitivity tests were carried out with the followingresults: ANNEX12 Page 3

Rate of Return a) 20% reductionin the area plantedwith olor-tobacco 12.7% b) 10% overall increase in investmentcosts 13.1% c) 10% reductionin yields 12.1% d) five-year extension of the development period 13.0% e) use of minimum legal-wage rates for hired labor (equivalentto 9% reduction on in- crementalproduction value) 12.9%

DUAINICA i REPUBLIC

YAQUE DEL IORTE IRRIGATIOUTPROJECT'

Econimic Analysis

,ivii. ,o-rks, Operation and Net 7ncreTriental onsult,-nt Services, .aintenance, Value ofil et Benefit :ez.mical Zontin_encies 3ctension Services Total Costs Production Streai ------RD3 million-----______1973 , 0.6 -0.60

174' 2.2 0.1 2.3 - -2.30

1975 7.4 0.2 7.6 - -7.60

1976 11.2 0.3 11.5 0.11 -11.39

1977 9.3 0.4 9.7 0.48 -9.22

1978 0.3 0.5 0.8 1.25 +0.45

1979 - 0.55 0.55 2.41 +1.86

1980 0.55 0.55 3.87 +3.32 1981 - 0.55 0.55 5.36 +4.81

1982 - 0.55 0.55 6.8i +6.26

1983 - 0.55 0.55 7.39 +6.84

1981 _ 0.55 0.55 7.81 +7.26

1985 - 0.55 0.55 7.95 +7.40

2028 0.55 0.55 7.95 +7.40

Rate of Return: 14_

DOMINICAN REPUBLIC YAQUE DEL NORTE IRRIGATION PROJECT CONSTRUCTION SCHEDULE

Item of CALENDAR YEAR work 1973 1974 1975 1976 1977 1978 1979

Engineering and Supervision for Construction

Headworksand DesiltingWorks - Main Canalto Km 3.5 _ Unit 2 (Gravity) Main Canal to km 36.5 Distribution System [ DrainageSystem Onfarm Development . Unit 2 (Pumping) PumpingPlant Distribution System DrainageSystem Onfarm Development Unit 3 (Gravity) Main Cana!to Km 72.8 - Distribution System -_ DrainageSystem Onfarm Development Land Acquisition and Settlement Equipment Buildings

Technical Assistance for Agricultural Development

World Bank - 7217

DOMINICAN REPUBLIC YAQUE DEL NORTE IRRIGATION PROJECT

PROPOSED ORGANIZATION FOR AGRICULTURAL DEVELOPMENT

L 3 CL J MINISTRY OF AGRICULTURE AGRICULTURAL BANK D

- l CENTRAL POLICY COMMITTEE

CONSULTANTS | PROJECTCOORDINATOR | _ Senior Agricultural Advisor Extension Officer (Agriculture COMM ITTEE~ Extension Officer (Credit) Land Reform Specialist PROJECT COORDINATING COMMITTEEIrrigation Engineer

IADl MINISTRY OF AGRICULTURAL TOBACCO RICE RESEARCH INDRHI IAD I AGRICULTURE BANK INSTITUTE INSTITUTE CDE

RESEARCH RESEARCH LAND CREDIT CREDIT CREDIT RSARCH OPEATIONTEANDE

REFORM ~~EXTENSION EXTENSION ______

LAND REFORM Extension Officer (Agriculture) Extension Officer IRRIGATION SPECIALIST Extension Officer (Credit) (Credit) ENGINEER

World Bank-6892

DOMINICAN REPUBLIC YAQUEDEL NORTEIRRIGATION PROJECT Existing c-nals Proposed ma1-in a Proposeds-.cedary canals Proposed irrigable area j Propo..ed P-mping plant Moin roads V

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