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World Bank Document Document of The World Bank FOR OFFICIALUSE ONLY Public Disclosure Authorized Report No. 7576 PROJECT COMPLETION REPORT Public Disclosure Authorized TUNISIA SOUTHERN IRRIGATION PROJECT (LOAN 1796-TUN) DECEMBER30, 1988 Public Disclosure Authorized Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS CurrencyUnit = TunisianDinars (D) USS1.00 Da 0.82 D 1.00 - USS1.21 WEIGHTSAND MEASURES The metric system is used throughoutthis report GLOSSARYOF ABBREVIATIONS CI - Continental Intercalaire CT - Complex Terminal CNEA - NationalCenter for AgriculturalStudies ORE - Water ResourcesDepartment ORES - Water and Soil ResourcesOepartment GR - Rural DevelopmentOepartment INRAT - National Instituteof AgriculturalResearch of Tunisia IRA - Institutde Recherchedes Zones Arides MOA - Ministry of Agriculture (Mv - AgriculturalDevelopment Authority OMYPI - AgriculturalDevelopment Authority for Irrigated Perimeters OMVPIGJ - AgriculturalDevelopment Authority for Irrigated Perimetersof Gafsa Djerid OMVPIGM - AgriculturalDevelopment Agency for Irrigation Perimetersof Gabes and Medenine PCR - ProjectCompletion Report SAR - Staff Appraisal Report STEG - TunisianCompany for Electricityand Gas FISCALYEAR January1 - Oecember31 FOROICIA USEOY THEWORLD BANK Washington.U C. 20433 U.S.A. OVketd O ,.ctw.cewai Opuatwetvalaata#n December 30, 1988 EMORANDUETO THE EXECUTIVEDIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Tunisia Southern Irrigation Proiect (Loan 1796-TUN) Attached, for information, is a copy of the report entitled "Project Completion Report: Tunliia Southern Irrigation Project (Loan 1796-TUN)" prepared by a FAO/CP Cooperative Program mission in colla- boration with Government Officials. No further evaluation of this project by the OpperationsEvaluation Department has been made. Attachment This documenl hs a restrtaeddisthibufon and maY be used bY r.oUwtsonb b the prfomnnce| of theu offlicia duties. Its contents may not otherwise be disclosedwitbout World Bank autborition.| FOR OFFICIL USE ONLY TUNISIA SOUTHERNIRRIGATION PROJECT (Loan 1796-TUN) PROJECTCOMPLETION REPORT Table of Contents PaRe No. PREFACE ... )................................................ KEY PROJECT DATA . ..............................................(ii) EVALUATIONSUHHLIRY . ............... (iv) PROJECT COMPLETIONREPORT I. BACCGROUND .. 1 II. PROJECT FORMULATION .. 2 Identificationand Preparation . 2 Project Objectives . 2 Project Description . 2 III. IMPLEMENTATION.. 4 Effectiveness. 4 Revision. 4 ImplementationSchedule . 4 Reporting . 8 Procurement . 9 Cost.. 9 Disbursements. ... .......... 10 Compliancewith Loan Covenants . 12 IV. PROJECT IMPACT.... 12 General . .12 Irrigation . .12 Area, Yields and Production . .13 Beneficiaries . .15 Markets and Prices . .15 V. ECONOMIC REEVALUATION .. 16 SensitivityAnalysis . .18 VI. PERFORMANCE .. 19 Project Executionand Management . .19 Supplies and Contractors . .19 Consultants . .20 The Bank . 20 Cost Recovery . .20 This document has a restricted distrbution and may be used by fecipkents only in the performiance of their offcial duties. Its contents may not otherwise be disclosed without World Bank: authorization. Table of Contents (cont'd) Page No. VII. SPECIAL ISSUES AND LESSONS LEARNED................... 22 General..... .... .. *..q....**.. ... **. .. .. .22 Infrastructure* .............. 22 The Pilot Role of the Project ...................... 23 Monitoring and Evaluation ........... ................ 23 Sustainability ............................................. 23 CHARTS 1. Implementation Schedule 2. Irrigation Implementation Schedule ANNEXES 1. IrrigationInfrastructures - Key Indicators 2. IrrigationSchemes - Key Indicators 3. Actual Project Cost and Schedule of Expenditure 4. Project Cost 5. Actual Base InfrastructureCosts 6. Buildings - Actual Investm;ntCost 7. Summary of Actual AgriculturalDevelopment and OperatingCost 8. Financial and EconomicAnalysis ATTACHMENT I: Borrower Comments MAP: IBRD 14435 - 1. - TUNISIA SOUTHERN IRRIGATIONPROJECT (Loan 1796-TUN) PROJECT COMPLETIONREPORT PREFACE This is a Project Completion Report (PCR) of the Southern Irrigation Project, for which Loan 1796-TUN,in the sum of US$25.0 million was approved in February 1980. The loan was closed on June 30, 1987, one year later than estimatedat appraisal. The account was kept open till December 31, 1987. Final Loan disbursementis US$18.6 million and the unused balance is can- celled. The PCR was prepared in collaborationwith the Government Officials by a FAOICP Cooperative Program mission which visited Tunisia from 7th of Septemberto 18th of September 1987. No completionreport was prepared by the Borrower but all the required information was provided by project officials. The PCR is based on a review of the President'sReport (-. 2681-TUN)dated December 26, 1979, the Staff Appraisal Report (2681-TUN)dated December 19, 1979, the Loan Agreementand internal Bank memoranda and reports on project implementationand issues as containedin relevant files. In accordancewith the revised procedures for project performance reporting,this PCR was read by the OperationsEvaluation Department (OLD) but the project was not audited by OED staff. A copy of the draft report was sent to the Government of Tunisia for comments on September 15, 1988. Those commentshave been appended (see Attachment 1) and Incorporatedinto the final report. - ii - TUNLSIA SOUTHERN IRRIGATION PROJECT (Loan 1796-TUN) PROJECT COMPLETIONREPORT Key Project Data Appraisal Actual as Estimate Actual of SAR estimate t ojectcost (US$million) 72.5 47.5 65.5 "vanAmount (US$ million) 25.0 18.6 74.0 Loan Amount Cancelled - 6.4 - Date Board Approval 01/22/80 01/22/80 Date Effectiveness 09/30/80 09/30/80 Date Physical Components Completed 12/31/85 06/30/86 ClosingDate 06/30/86 06/30/87 EconomicRate of Return (2) 13 19 InstitutionalPerformance satisfactory AgronomicPerformance satisfactory CUMULATIVEDISBURSEMENTS Fiscal Year 1980 1981 1982 1983 1984 1985 1986 1987 1988 AppraisalEstimate (US$ m) 0.2 4.5 11.4 19.9 22.8 23.7 25.0 25.0 25.0 Actual (US$ million) - 0.1 1.0 3.8 6.4 11.0 15.3 17.9 18.6 Actual as 2 of Estimate - 2.2 8.8 19.1 18.1 46.4 61.2 71.6 74.4 Date of Final Disburs. January 27, 1988 - ili - TUNISA SOUTHERN IRRIGATION PROJECT (Loan 1796-TUN) PROJECT COMPLETIONREPORT KeyvProject Data (continued) MISSIONDATA Supervision Month/ Staff Man-Days Specializ. Performance Trend Type of Year a/ Rating b/ c/ Problem d/ 1 07/80 1 3 E 1 2 - 2 04/81 2 12 I/F 1 2 3 3 12/81 2 20 I/H 1 2 - 4 06/82 1 7 I 1 1 - 5 12/82 1 10 I 1 1 - 6 04/83 3 24 I/A/F 1 1 M 7 10/83 3 24 I/A/P 2 2 F/M 8 04/84 3 24 I/A/F 2 1 M 9 10/84 2 14 I/A 1 1 0 10 03/85 2 14 I/A 1 1 - 11 03/86 1 7 I 1 1 - a/ A - Agriculturalist; E - Economist; I - Engineer; H - Hydrologeologist; F - Financial Analysis b/ 1 = Problem-freeor minor problems;2 = Moderate problems; 3 = Major problems. c/ 1 = Improving; 2 = Stationary; 3 = Deteriorating. d/ F Financial;M = Managerial;P = Political;T = Technical;0 = Other. OTHER PROJECT DATA Borrower Governmentof Republic of Tunisia ExecutingAgencies GR-OMVPI Djerid and Gafsa OMVPI Gabes/Medenine Fiscal year of Borrower January 1 to December 31 Name of Currency (abbreviation) Tunisian Dinar (D) CurrencyExchange Rate Appraisalyear average US$ 1.00 = 0.408 D Completionyear average US$ 1.00 = 0.82 D Follow-upProject Gabes Irrigation(Loan 2605-TUN) - iv - TUNISIA SOUTHERN IRRIGATION PROJECT (Low 1796-TUN) PROJECT COMPLETIONREPORT Evaluation Summary 1. Objectives. The project supports the Government'sinvestment p ..gram of the Master Plan for Water Resourc-sDevelopment in SouthernTunisia. Its objectiveswere to develop groundwaterresources in the southern region, increaseproduction of dates and vegetablesand raise living conditionsof smallholdersin the existing oases. 2. ImplementationExperience and Pesuilts.After experiencinglengthy delays due to the late creationof the AgriculturalDevelopment Agencies (OMV) for two projectareas, Djerid/Tozeurand Kebili/Gabes,project implementation progressedaccording to the approved scheduleof implementationlaid down by differentBank supervisionmissions. Consequentlyat the official closing date almost all civil works were completed. Infrastructureis now operational while agriculturalobjectives will soon reach the expected development,and as a consequence,it may be concludedthat project objectiveshave been met and an importantimpact on regionaland local developmenthas been achieved. 3. In general, rehabilitatedoases and new plantationsare almost fully in operation: farmersare dynamic, fully participatingin the project and satisfied. 4. Land protectionagainst sand intrusionhas been carried out; water is adequatelydistributed up to the tertiarycanals and farmers participatein water management. 5. Project ccst, in dinar terms, is now D 36.1 million comparedwith D 29.6 million estimatedat appraisal,implying an overrun in Dinars of about 212. In Dollar terms the cost amounted to only US$47.5 million, 34S below the appraisalestimate of US$72.5 million. 6. Increasedcosts, in Dinar terms, above those projectedat appraisal caused by the combinedeffect of higher costs of irrigationinfrastructure, buildingconstruction, establishment of new perimetersand strengtheningof the technicalassistance, were largelyoffset by the effect of the rise of the US$ vis-a-visthe TunisianDinar. In spite of
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