Appraisal Of

ReportNo. 915a-MOR Appraisalof the Fl C DoukkalaIrrigation Project LE OPY Public Disclosure Authorized Kingdomof Morocco

january9, 1976 Irrigation Division ProjectsDepartment Europe,Middle Eastand North Africa Region Not for PublicUse Public Disclosure Authorized Public Disclosure Authorized

Document of the World Bank Public Disclosure Authorized

Thisdocument has a restricted distribution and maybe used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosedwithout Worid Bankauthorization. CUPRENCY EQUIVALENTS

Currency Unit = Dirham (DH)

DH 1 = us$0.258

DH 1,000 = US$258

DH 1,000,000 = US$257,732

WEIGHTS AND MEASURES

1 millimeter (mm) = 0.039 inches (in)

1 meter (m) = 39 inches (in)

1 kilometer (km) = 0.62 miles (mi)

1 hectare (ha) = 2.47 acres (ac)

1 square meter (m2) = 10.76 square feet (ft2)

1 cubic meter (mJ) = 35.31 cubic feet (ft3)

1 liter (1) = 0.264 US gallons (gai)

1 hectoliter (hl) = 26.4 US gallons (gai)

1 kilogram (kg) = 2.205 pounds (lb)

1 metric ton (ton) = 2,205.00 pounds (lb)

1 bar = 14.666 pounds/squareinch (psi)

GOVERIMENT OF THE KINGDOM OF MOROCCO

FISCAL YEAR JANUARY 1 - DECEMBER 31 FOR OFFICIALUSE ONLY

ABIREVIATIONS

ENDE - National Development Bank (Banque Nationale du Développementde l'Economie)

CFDT - French Company for Development of Textile Fibers (CompagnieFrançaise pour le Developpementdes Fibres Testiles)

CLCA - Local AgriculturalCredit Bank (Caisse Locale de Crédit Agricole)

CIMYT - International Center for Improvement of Maize and Wheat (Centro Internacional para El Mejoramiehto del Mais y del Trigo)

CMV- Development Center (Centre de Mise en Valeur)

CNCA - National Agricultural Credit Bank (Caisse Nationale de Crédit Agricole)

COMAGRI- Moroccan AgriculturalCompany (CompagnieMarocaine d'Agriculture)

COMAPRA - Moroccan Company for Marketing of AgriculturalProduce (Compagnie Marocaine de Commercialisation de Produits Agricoles)

CP - FAO/IBRD Cooperative Program

CRCA - Regional AgriculturalCredit Bank (Caisse Régionale de Crédit Agricole)

DRA - Directorateof AgriculturalResearch (Directionde la Recherche Agronomique)

DRE - Water Resources Division (Divisiondes Ressources en Eau)

EAPDI - Economic Analysis and Projection Department - IERD

IRCT - Research Institute for Cotton and Textiles (Institut de Recherches pour le Coton et Textiles)

MARA- Ministry of Agriculture and Agrarian Reform (Ministère de l'Agriculture et de la Réforme Agraire)

This document hasa restricteddistribution and may be used by recipientsonly in the performance of their official duties. Its contents may not otherwisebe disclosedwithout Worid Bank authorization. ABBREVIATIONS - Continued

MTPC - Ministry of Public Works and Communications (Ministèredes Travaux Publics et Communications)

OCE - Export Trade Company (Office de Commercialisationet Exportation)

ONE - National Electricity Office (OfficeNational de ltElectricité)

ORSTOM - Overseas Research Institute (Office de Recherches Scientifiqueset Techniques d'Outre-Mer)

ORMVAD- Regional Agricultural Development Office Doukkala (OfficeRégional de Mise en Valeur Agricole des Doukkala)

ORMVASM - Regional Agricultural Development Office Souss-Massa (OfficeRégional de Mise en Valeur Agricole du Souss-Massa)

SCAM - Moroccan AgriculturalMarketing Society (Société de CommercialisationAgricole Marocaine)

SCET International- Consulting Company (SociètéCentrale pour l'Equipeinitntdu Territoire (International)

USAID - United States Agency for International Development APPRAISAL OF

DOUKKALA IRRIGATIONPROJECT

KINGDOM OF MOROCCO

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ...... i - ii

I. INTRODUCTION......

II. THE AGRICULTURALSECTOR. 2

A. Description. 2 B. Previous Bank Projects in the Agricultural Sector. 2

III. PROJECT AREA AND NATIONAL INSTITUTIONS. 4

A. The Area. 4 B. Natural Resources ...... 5 C. Land Tenure. 5 D. Land Use, Agricultural Production and Yields . 6 E. Marketing and Cooperatives. 6 F. Development and Credit Institutions. 6

IV. TUEPROJECT ...... 8

A. General ...... 8 -B. Description ...... ; ` .`. 8 C. Detailed Features. .. 9 D. Water Demand, Supply, Quality and Rights il E. ConstructionSchedule and Status of Engineering il F. Cost Estimates ...... 12 G. Financing...... 14 H. Procurement. . 14 I. Disbursement ... 15 J. Retroactive Financing . .. 15 K. EnvironmentalImpact ... 15

V. PROJECT IMPLEMENTATION.. 16

A. Organizationand Management.16 B. Operation and Maintenance.18 C. Services...... , ..... 18 D. Land Consolidation...... 19 E. Recoverv of Project Costs.20 F. Monitoring.22 G. Accounts and Audit .23 TABLE OF CONTENTS (Continued) Pag No.

VI. BENEFITS AND JUSTIFICATION ...... 23

A. Production ...... 23 B. Markets ...... 24 C. Prices ...... 25 D. Farmers' Income ...... 25 E. Main Benefit and Beneficiaries ...... 26

VII. AGREEMENTS REACHED AND RECOMMENDATIONS ...... 26

ANNEXES

1 Climatic Data _2 Crop Production 3 Estimated Water Requirements 4 Land Tenure 5 Animal Production 6 Agricultural Credit 7 Project Description 8 Construction and Activity Schedule Chart 15243 (R) 9 Cost Estimate 10 Schedule of Expenditures i1 Procurement 12 Disbursements of Bank Loan 13 Terms of Reference Consultants 14 Marketing 15 Farm Budgets 16 Economic Analysis 17 Employment and Migration

CHARTS

15200 (R)

MAPS

11853 (R) 11855 (R) APPRAISALOF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

SUMMARY AND CONCLUSIONS

i. Morocco has an area of 506,000 km and a populationof 16 million which is increasingat a rate of 2.6% per vear. Its agricultureaccounts for about 30% of GDP and is the largest sector in the economy, providing about one-half of the exports and employment (55% of the labor force). Agriculture products, mainly sugar, cereals, dairy products, tea, coffee and tobacco, valued at US$580 million, were imported in 1974 to meet the nation's need. Exports of agricultureproducts amounted to only US$520 million in 1974. The average agriculturaltrade surplus over the years 1970-1974 averaged US$190 million.

hi. Irrigationis important to increase agriculturalproduction partic- ularly in view of the limited available land with adequate and reliable rainfall. Out of 7.7 million ha of arable land about 840,000 ha are irrigated but only 500,000 ha are equipped with modern facilities. The Third Development Plan (1973-1977) emphasizes improvement of the trade balance of agricultural products, increasedfarm output and farm income through irrigationand improvement in the distributionof growth benefits. The proposed Doukkala Irrigation Project would contribute to the realization of these objectives by producing export products and import substituteproducts, implementingland consolidation, improving supporting services and providingbasic village infrastructure and bilharzia control. The Governmentof the Kingdom of Morocco has requesteda Bank loan to help finance the project.

iii. Bank Group lending to Morocco for agriculturestarted in 1965 and consista of five loans and two cree.itstotalling US$175 million. Except for the SousasGroundwater and Meknes AgricultureDevelopment Projects, on which it is too early to report, upcoming problems in the implementationof projects and disbursementshave been resolved satisfactorily. Working relations with the borrower have been cordial.

iv. The project would provide sprinklerirrigation for 15,400 ha in the Doukkala perimeter. It would benefit a farmingpopulation of 19,000 persons. Water would be obtained from the Oum Er R'Bia river. To improve quality of life and create an improved rural environnent,the project would also provide village infrastructureand support a bilharzia control program. The project would provide for a feaslbilftystudy of the Dechra El Oued dam and for a feasibilitystudy for productionand marketing of vegetablesin the Massa region. - ii -

v. The Ministry of Agriculture and Agrarian Reform (MARA)with the assistance of other Goverament agencies would be responsible for project implementation. MARA's Regional AgriculturalDevelopment Office in Doukkala (ORMVAD)would be charged with planning, design, construction,operation and maintenance,and agriculturalservices. The Ministry of Public Health would be responsible for the implementation of the bilharzia control program.

vi. Total project costs are estimated at US$94 million with a foreign exchange component of US$42.0 million. The proposed Bank loan (US$30 million) would finance part of the foreign exchange costs, and loans from the United States Agency for International Development (USAID) the remaining foreign exchange requirements (US$12 million), plus part of local costs (US$1 million). Goverument and project farmers would finance the remaining local costs (US$51.4 million). Construction started in 1975 and would be completed in 1980. Total value of the works and equipment, including contingencies,that would be procured under internationalcompetitive bidding amount to US$48.0 million. Goode and services financed through the proposed Bank Loan would be procured in accordancewith Bank Guidelines.

vii. At full development,the project would increase annual production of main crops as follows: wheat 9,500 tons, maize 8,700 tons, sugar beet 130,500 tons, tomatoes 54,400 tons, cotton 2,000 tons, milk 15,500 tons and beef 1,300 tons. Incremental production would be for export or for import substitution. At full development the annual net incremental production value would amount to US$11.1 million. The average anual per capita income would increase from the present low level of US$110 to US$485. The project would assist the poor sections of Morocco's rural population, but even at full development their income would still be below the average national per capita income, estimated to reach about US$700 in 1991. The rate of return excluding village infrastructureis estimated at 11.5%. viii. Subject to agreements on the issues set forth in this report the project would be suitable for a Bank loan to the Kingdom of Morocco. The loan would be repaid over a period of 20 years including 5 years of grace. APPRAISAL OF

DOUKKRALAIRRIGATION PROJECT

KINGDOM OF MOROCCO

I. INTRODUCTION

1.01 The Government of the Kingdom of Morocco has requested a Bank loan of US$30 million and loans of US$13 million from USAID, to finance the foreign exchange component and part of local costs of the US$94.4 million Doukkala Irrigation Project. The proposed project would provide for development of intensive irrigation on 15,400 ha in the Doukkala perimeter, and would improve living conditions through provision of basic village infrastructure and bilharzia control. It would also provide for a feasibility study of the Dechra El Oued dam in Tadla and a feasibility study for production and marketing of vegetables in the Massa region.

1.02 Development of land and water resources of the Oum Er R'Bia Basin has been studied on various occasions since 1926. At present some 130,000 ha are irrigated in the basin and the Beni Amir scheme (Map 11853R) bullt in the 1930's is the oldest irrigation network. Scarcity of water resources prompted Government to prepare a "Water Resources Masterplan t " for the basin with a view to optimize the water allocation to the three main consumers: agriculture, potable and industrial water supply, and power. The latest plan was prepared in 1973-74 by consultants (SCET International) with the assistance of the FAO/IBRD Cooperative Program (CP). The plan indicated that the proposed project together with rehabilitationof the Beni Amir (para 1.03), is the least cost development alternative to meet the Goveru- ment's Third Plan (1973-77)objectives of achieving (i) a balanced regional development; (ii) an increase in agriculturalproduction of basic food (sugar, wheat, dairy products, etc); (iii) a reduction of the rural under employment; and (iv) an improvementof the living conditions of the rural population. The proposed project and the rehabilitationof the Beni Amir would fully utilize all available water resources and existing irrigation infrastructures before additional storage reservoirs are built on the main river at Sidi Cheho and Dechra Oued sites. Government has already requested Bank assistance for financing constructionof the Sidi Cheho Dam and for studying additional developments in the Tadla (Map 11853R) which would be possible by construction of the Dechra Oued Dam. The appraisal of the Sidi Cheho Project is under way, while the feasibility study of additional irrigation in the Tadla would be included in the proposed project.

1.03 The project was appraised [n May 1975 by a Bank mission. comprising Messrs. M. Raczynski, H. Laeyendecker,M. Sulieman and C. Ardalan, all of whom participatedin preparing this report. The mission's findings were discussed at Governnent'srequest with staff of USAID in Rabat. The mission also appraised a project for rehabilitationof 14,000 ha in the Beni Amir area in the Tadla perimeter (map 11853R). This project was prepared for the Government by the FAO/IBRD CooperativeProgram and is to be financed by the Arab Fund for Economic and Social Development. - 2 -

II. THE AGRICULTURALSECTOR

A. Description

2.01 Morocco has a land area of 506,000 km2 and a population of about 16 million with an average annual growth rate of 2.6%. Nearly 10 million people or 65% live in rural communities. About 35% of the land is used for agriculture,roughly equally divided between crop production and grazing. In 1974, agricultureaccounted for about 28% of CDP and employed about 55% of the labor force. About 30% of the agriculturaloutput is exported,mainly to Europe, with France accounting for more than one half the value of exports. The annual average agriculturaltrade surplus over the years 1970-1974amounted to about DH 750 million (US$190million).

2.02 The long term historic growth trend of agriculturein Morocco was estimatedby the Bank's Economic Mission (1973) to be about 3% per annum. However, growth of the value of agriculturalproduction averaged nearly 6% during the period of the Second DevelopmentPlan (1968-1972),mainly due to expansion of irrigation, increased use of fertilizerand other inputs, increased production of high value crops and favorableclimatic conditions. The main objectivesof the Second Plan vere the extension of large scale irrigation,expansion of credit to large and medium farmers and export pro- motion. Although the sector was stimulated during the Plan period, there appears to have been a widening income differentiation vithin rural areas as well as between rural and urban areas. The Bank Economic Mission estimated that in real terme average consumption declined slowly for about one third of the rural population, implying that benefits accrued mainly to medium and large farmers.

2.03 During the period of the Second Plan, DH 2.5 billion, equivalent to 45% of total investments,vas invested by the public sector in agriculture, of which 64% was for irrigation, 6% for rainfed agriculture and 4% for livestockproduction, with the remainder in a miscellaneouscategory. Under the Third Plan (1973-1977)agriculture continues to receive the highest priority with emphasis tovards more productive investmentsin irrigated and rainfed agriculture,and livestock improvements. The main objectives of the Third Plan are to: (a) improve the trade balance of agriculturalproducts; (b) increase the contributionof the agriculturalsector to economic growth through an increase in farm output; (c) raise farm income through irrigation and measures to increase the productivity of rainfed agriculture; and (d) improve distributionof the growth of wealth in the rural areas through land reform, and a better balance of government support to farmers. The proposed project would contribute to these objectivesin the Oum Er R'Bia Valley by producing import substitutes and products for exports, increasing the income of small farnmers, and providing village infrastructure.

B. Previous Bank Projects in the Agricultural Sector

2.04 Bank Group lending for agriculture in Morocco began in 1965 and to date five projects representingUS$24 million in IDA credits and US$148 million in Bank loans have been financed. The first loan, made in 1965, was US$17.5 million for the Sidi Slimane IrrigationProject. The project increased the storage capacity of El Kansara reservoir and provided for extension of an existing irrigatedarea served from the dam. Though performance under the project was satisfactoryas far as civil works and agricultural developmentwere concerned,delays arose due to a series of reorganization within the agriculturaland irrigationservices. By mid 1967 these problems had been overcome and the project was completed in 1970. In 1966 a loan of US$10 million for an AgriculturalCredit Project (Loan 433 MOR) vas made to the National AgriculturalCredit Bank (CNCA). The loan helped finance a three year lending program for on-farm developmentand purchase of agricultural equipment. Initial progress vas disappointinguntil a mutually satisfactory agreement was reached between the Bank and the Government on reorganization of the local credit agencies involved in the project. The loan vas fully disbursed by September 1969.

2.05 A second Agricultural Credit Project under which CNCAwill borrow US$10 million from IDA (Credit 338 MOR) over a three year period and a further US$24 million from IBRD (Loan 861 MOR) commenced in 1972. The project will help finance farm equipment for rainfed grain production,on-farm improvements for citrus and winter vegetableproduction, livestockdevelopment and marketing facilitiesfor export produce. The project is progressing satisfactorily and the loan amount it expected to be fully committedby the end of 1975.

2.06 The Sebou I (US$46 million) project vas financed in 1969 (Loan 643 MOR) followedby the Sebou II (US$32 million) project in 1974 (Loan 1018 MOR). The Sebou I project provides for the constructionof a dam for irrigationin the Sebou River Basin and for the equipmentof some 38,000 ha for irrigation, while the Sebou II project provides for complementaryinfrastructure (sugar factory, roads, flood control) in the Sebou I project area. Numerous problems, including a lack of continuityin senior management and difficultieswith land consolidationand reallocationprograms, beset the Sebou I project at the start, but these problems are now resolved and progress is satisfactory. The Sebou II project is progressingsatisfactorily and its main component,a sugar cane factory, started operation in June 1975 as originallyscheduled.

2.07 To finance the Soues GroundwaterProject a US$18.5 million loan was approved in May 1975 to develop irrigationon 7,300 ha of which 1,000 ha are presently irrigatedby traditionalmethods. The currentlynon-irrigated area of 6,300 ha would be provided with sprinklerirrigation. Water would be pumped from wells. The project also includes land consolidationand distribution, farm access roads, buildings, equipment for extension, training and operation and maintenance, and village infrastructure to benefit a population of about 13,000 persons. Project execution is in its early stages.

2.08 In June 1975 the Bank approved an IDA credit of US$14 million to help finance the US$32 million Meknes AgriculturalDevelopment Project. The project extends over 170,000 ha and aims at increasingagricultural production and improvingincome distributionmainly through introductionof improved cropping patterns and practices,land consolidationand distributionand land tenure reorganization. About 8,500 familieswould benefit. Project execution is in its early stages. -4-

III. PROJECT AREA AND NATIONALINSTITUTIONS

A. The Area

3.01 Area. The Oum Er R'Bia is Morocco' s second largest river. It originates in the high and middle Atlas and reaches the sea about 80 km south- west of Casablanca. The project is located outside its river basin (Map 11853R), and forms part of the Doukkala perimeter. It covers the Zemaura subdivision, which extends from Sidi Smail towards Zemaira along the main road to Safi (RP 8). It is presently dry farmed.

3.02 Population. The population, including the towns of Zemamra (8,000 inhabitants)and Sidi Smail (5,000 inhabitants)amounts to 32,000 people (Map 11855R). About 71% of the active population is directly employed in agriculture,4% in retail merchandisingand marketing of agriculturalproducts, and the remaining 25% in the industrial and service sector. Farers live scattered over the countryside.

3.03 About 47% of the population is below 15 years old, which is close to the average of Morocco, and an average household has 5.7 persons with a labor potential of about 60 man-days per month. Most of the population is underemployed. The average annual per capita income is about US$110, which compares with a national per capita income of US$320 per year.

3.04 Electricityand Water Supply. The existing 22 kV network is in- sufficient and any further developmentwould require additionalpover supply. The towns of Zemamra and Sidi Smail, and some of the Development Centers (CMV) and project villages have domestic water supply from vells.

3.05 Transportationand Communication. The road system is adequate to meet present production levels but would need reinforcementand expansion if agriculturalproduction would be increased. The telephone network is inadequate and only serves part of the major towns.

3.06 Health. A one doctor hospital in Zemamra and a 200 bed provincial hospital in El Jadida serve the project area. The Government is successfully completing a malaria eradication program. Bilharzia exists in the Oum Er R'bia Basin and affects mainly the Tadla Perimeter (Map 11853R). Governmentplans call for a control program in Tadla under the proposed Beni Amir Rehabilita- tion Project financed by the Arab Fund for Economic and Social Development. No reliable data on bilharzia exists for the project area. Hovever the adjacent and recently completed gravity irrigation system around Sidi Bennour is heavily populated by several snail species, including some sinestral pulmonates, which may be bilharzia vectors.

3.07 Education. Educational facilitiescomprise 25 classrooms in the project area, which is insufficientto meet the needs of the farming population of about 19,000 persons. - 5 -

B. Natural Resources

3.08 Climate. The climate is characterizedby hot and dry summers and relatively short and cool winters. Dry periods extend over six months and rainfall averages 360 um and shows great variations from year to year. The area is under maritime influence. Average monthly temperatures vary from 12'C in December to 25.6°C in August. Annual evaporation amounts to about 1,800 mm. Further climatic data is tabulated in Annex 1.

3.09 Soils. ORMVAD has carried out a soil survey (scale 1:10,000). A land classificationclassified 47% of the lands in the subproject area as Class I, 16% as Class II, 33% as Class III and 4% as Class IV lands. Part of Class III lands vould require subsoiling. Class IV lands are light textured soils of limited depth and underlainby an indurated calcareous layer. On technical grounds irrigation developmentof the Class IV lands would have a low priority. However, small holdings are located in this area and land consolidation has been completed, thus creating expectations for further development. ORMVADproposes to break the crust and destone this area for better root penetration. Before project execution, pedologicalmaps covering this problem area (about 3,200 ha north of route CT 1307) would be revised in order to define the exact scope of land preparationvork. A number of 15 m high gentle rising mounds, covering about 15% of the area, rise out of the sur- rounding flat terrain.

3.10 The project area, because of its topographic and pedologic condition, should only be sprinkler irrigated. The relatively shallow soils do not permit necessary land levelling for installation of a gravity system. Purther details on soils are given in Annex 2.

3.11 Water Resources. The Oum Er R'Bia river originates in the high and middle Atlas Mountains and has a drainage area above Im Fout (diversionpoint for Doukkala) of 30,600 km2. Highest annual discharges occur in March and lowest in August. Dams constructedon the two main tributaries regulate its flow. Salt springs upstream of Khenifra contribute to a relatively high salinity content of the water which is gradually diluted in a downstream direction. Water availabilityduring the summer months, especially in July and August (Annex 3), is the limiting factor for extension of irrigation schemes. Constructionof storage reservoirs at Dechra el Oued and Sidi Cheho nov envisaged by Governnent,would allow extension of the irrigated area in the Oum Er R'bia basin. Groundwater resources in the project area are of limited potential and poor quality.

C. Land Tenure

3.12 All lands are private freehold. About 77% of the holdings are of less than 5 ha. Land consolidationto be implementedunder the project is governed by the Land ConsolidationLaw of 1962 and the Agriculture Invest- ment Code of 1969. The main objectives of the existing legislationare to - 6 -

(a) stabilize ownership patternby providing title security; and (b) establish viable family holdings by eliminating fragmentation and future subdivision (Annex 4).

D. Land Use, Agricultural Production and Yields

3.13 The project area (15,400 ha) is presently dry farmed with wheat occupying 63%, maize 10%, and beans 10% of the area. The remainder is fallowed. Sheep, goats and cattle subsist in fallowed land, supplemented by crop residues and stubble (Annex 5). Yields depend on rainfall. Present average crop production amounts to about 9,600 tons wheat, 1,200 tons maize, 1,300 tons beans, 2,500 tons of milk and 700 tons of beef (para. 6.04). The low level of incomes makes it difficult to introduceimproved agricultural techniquesand additional inputs which in any case could only be of compara- tively limited benefit without additional and more reliable vater resources.

E. Marketing and Cooperatives

3.14 With the exception of cereals and industrial crops, all produce is sold through local markets (souks). Cereals may also be advantageouslymar- keted through the souks but the Government supportedMoroccan Agricultural Marketing Society (SCAM) provides a guaranteed outlet at specified floor prices. Sugar beets are sold to the processing plants on a contract basis and cotton is bought by the Moroccan Company for Marketing of Agricultural Produce (COMAPRA). Home consumptionand marketing through peddlers absorb part of milk production. Livestock is sold by individual farmers in the souks. Buyers are mainly independent butchers or agents acting on commission basis for larger institutional outlets.

3.15 With the exception of milk collection cooperatives, no other cooperatives exist in the project area but experience in already rehabilitated areas and in other newly irrigated areas show a rapid increase of cooperatives as agricultural development is intensified. This is the result of (a) incentive programa implementedthroughout Morocco since enactment in 1969 of the Agricultural Investment Code and (b) support and guidance given by Government agencies (para. 5.06).

F. Developmentand Credit Institutions

3.16 Developmentof Moroccan agricultureis the responsibilityof the Ministry of Agriculture and Agrarian Reform (MARA) primarily through its five major Directorates: AgriculturalDevelopment, Engineering and Construction, Animal Production,Agricultural Research, and Forestry. In designated irrigation developmentzones the Ministry carries out its task through eight Region- al AgriculturalDevelopment Offices. Elsewhere, the Ministry operates 22 - 7 - provincial offices and about 100 district extension centers. The project area falls within the Regional AgriculturalDevelopment Office of Doukkala (ORMVAD). ORMVAD is organized lnto 6 services: Administration,Agriculture, Livestock, Operation and Maintenance,Design and Construction,and Equipment and Buildings (ChartNo. 15,200). The main responsibilitiesof ORMVAD are to (a) design, supervise construction,operate and maintain irrigation projects in the region; (b) consolidateland; (c) supply inputs; (d) assist in disse- minating informationto and management of cooperatives;and (e) train farmers.

3.17 ORMVAD operates field research stations which concentratetheir work on water requirementsand irrigationmanagement. Through Development Centers (CMV) ORMVADprovides extension services, supplies inputs and coordinates activities with the processing companies, marketing institutions and credit sources. ORMVADstaff would require strengthening to meet future project needs.

3.18 The Agricultural Research Department (DRA) is responsible for agricultural research in Morocco and operates three experimental stations in Doukkala. One is located in the project area, but needs additional buildings, staff and research equipment to become functional. DRA, supported by USAID and the International Center for Improvement of Maize and Wheat in Mexico (CIMYT), successfully introduced and adapted high yielding cereal varieties, and with the assistance of the French Institute for Research in Cotton and Textiles (IRCT) and the French Company for Development of Textile Fibers (CFDT), has produced cotton varieties like Tadla 16 and Tadla 27 (34.5 mm) which, because of theîr strength, are highly appreciatedin European markets.

3.19 Government also provides artificial insemination for cattle at no direct cost to farmers. The service is provided through MARA's Department of Agricultural Production but lacks equipment and staff.

3.20 Agricultural credit in the project area is provided through the "NationalAgricultural Credit Bank" (CNCA)which maintains Regional Banks (CRCA) in El Jadida and in Sidi Bennour, and a "Local Bank" CLCA in Zemamra and Sidi Bennour. The credit system is well established (Annex 6). Other credit sources are commercial banks, input suppliers and equipment dealers. The non-institutional market provides also seasonal credit but its magnitude is unknown.

3.21 Other ministries concernedwith the developmentin the project area include the: (a) Ministry of Public Works and Communications (MTPC) which is responsiblethrough its (i) National ElectricityOffice (ONE) for pover supply and generation, (ii) Division of Water Resources (DRE) for water re- cordings and hydrology, and (iii) Road Directorate for constructionof roads; (b) Ministry of Education for constructionand operation of schools; and (c) Ministry of Public Health for health programs and bilharzia control. - 8 -

IV. THE PROJECT

A. General

4.01 The project would provide irrigation for production of wheat, sugar beet, cotton and tomatoes and for productionof forage for livestock. It would reduce underemploymentand improve rural incomes. Project beneficiaries would include a large number of small farmers who would also benefit from land consolidationand from constructionof new village centers.

4.02 The project would provide sprinkler irrigation to 15,400 ha presently dry farmed (Zemamra subdivision)inside the Doukkala perimeter. The selection of sprinkler irrigationwas dictated by topographicaland pedological conditions (para. 3.10). An added advantage of sprinkler irrigationwould be the increased speed of full utilizationof irrigation infrastructuredevelopment as compared with gravity irrigation. The project area would consist of four sectors, each served by its individualpumping station and underground distributionnetwork (Map 11855R).

B. Description

4.03 The project would provide:

(a) land preparation, surface drainage, farm roads and windbreaks;

(b) enlargement of the main supply canal (29 km), constructionof a feeder canal for Zo sector (6 km), and installationof automatic flow regulators;

(c) constructionof 4 electric pumping stations with a total installed capacity of about 8,300 kW, each with one high equalizing reservoir;

(d) constructionof a 416 km undergroundvater distributionsystem, includinghydrants, and mobile sprinkler equipment;

(e) constructionof 50 km of 60 kV and 50 km of 22 kV lines and one substation;

(f) constructionof main drainage channels (520,000 m3 of excavation);

(g) constructionof 21 km of new asphalt roads and 64 km of gravel roads, and enlargement and reinforcementof 108 km of asphalt roads; (h) provision of village infrastructure;

(i) bilharzia control;

(j) feasibilitystudy for the Dechra El Oued dam; and

(k) feasibilitystudy for marketing of vegetables in the Massa region.

4.04 The project would also provide land consolidation,buildings and equipment for extension, operation and maintenance, artificial insemination and agricultural research services, agricultural credit, milk collecting centers, and telephone facilities for the CMVs. Consulting engineering services would also be provided. The major executing agency for the project works would be ORMVAD. Major features of the project are described below and in more detail in Annex 7.

C. Detailed Features

4.05 Land Preparation. Soil and land classificationmaps for the area north of route CT 1307 would be revised (para. 3.09) to define the exact scope of subsoiling and possible exclusion of part or all of Class IV lands (600 ha). Land preparation would include subsoiling and destoning on about 4,000 ha. Farm roads would be 4 m vide. Ditches would collect storm water and excess irrigation runoff. Windbreaks would be planted around the parcels with a density of 106 m/ha. Wind data from Casablanca located at 100 km from the project area and on the coast, indicate vind velocities in excess of 4 m/sec during 15% of the time. Wind velocities in the project area are expected to be lover and the windbr.ak layout is similar to that of the successful nearby Boulaouane sprinkler project.

4.06 Main Canal. Between Km 77 and 105 the project would provide automatic gates with downstream control. Between Km 89.3 and Km 105 civil works would include canal rehabilitationand widening and minor structures. Six kilometers of feeder canal would be constructedto supply the sector Zo (Map 11855R).

4.07 Pumping Stations. Four pumping stations with gated concrete inlet structures and a total of 25 pumps would pump canal water through rotating filter screens into the four pipe networks; 60 m high elevated storage tanks would regulate pressure and, through automated controls, activate pumps to meet demand fluctuations.

4.08 Pipe DistributionSystem. Buried distributionsystems would consist of 1,400 mm to 60 cm diameter pipes (concreteand asbestos cement) with a density of 27 m/ha distributingwater to hydrants. Hydrants serving 15.6 ha units would be equipped with two constant discharge outlets, and would be spaced at 294 m intervals along the buried pipeline. Mobile sprinklerequip- ment per unit would consist of two central feeder pipes, and of four moving - 10 - laterals of 153 m. The sprinkler pattern would be 18 x 18 m and the intensity 6 mm/hour, operating in two lateral positions of 10 hours each per 24 hours during peak demand. Operating pressure would be 3.0 bar.

4.09 Power Supply. Power supply would be provided by constructing50 km of 60 kV line from the present terminal near Sidi Bennour to a substation in Zemamra from where 50 km of 22 kV lines would serve the pumping stations. Agreement was reached during negotiations that ONE would complete construction of the power lines necessary to supply the project so that power would be made available to the project as and when required.

4.10 Drainage. No natural surface drainage exists in the project area which is cut off from the ocean by a 50 km wide strip of fossil dunes. Main drains (total excavationabout 520,000 m3) would dischargewater into two large karst depressionsfrom where the water would flow underground towards the ocean (Map 11855R).

4.11 Roads and Telephones. 108 km of existing asphalt roads would be widened to 6 m and reinforced and 21 km of new asphalt roads and 64 km of 4 m vide gravel roads would be constructed. About 50 km of telephone lines would be constructedto connect pumping stations and CMV's with the new subdivision headquartersin Zemamra.

4.12 Village Infrastructure. The project would provide seven village centers, all vith treated water supply, paved roads, public lighting and schools.

4.13 Bilharzia Control. The control program would be oriented towards (1) surveillanceof irrigated areas in El Jadida Province to detect and destroy any colonies of vector snails and (2) diagnostic surveys and treatment of cases of bilharzia among the human population. The project would provide staff, equipment and chemicals.

4.14 FeasibilityStudy. The project would provide for a feasibility study by consultantsof the proposed Dechra El Oued dam (paras 1.02, 3.11, and 5.04).

4.15 FeasibilityStudy for Marketing of Vegetables. In view of the potential for increased vegetable production in the Massa region in southern Morocco, where irrigation is just beginning, the project would provide a feasibilitystudy to be carried out by consultants on production,marketing and processing investments for vegetables (para 5.05).

4.16 Buildings. The project would provide headquarters for the Zemamra subdivisionof ORMVAD and for three new CMV's. Six milk collecting centers vould be constructed.

4.17 Equipment. The project would provide equipment and vehicles for operation and maintenance,extension service, artificial insemination,milk collecting centers and the agriculturalresearch station. - 11 -

4.18 AgriculturalCredit. Agriculturalcredit for purchase of animals, construction of stables and for seasonal inputs would be available through existing channels (para 5.14). Incremental credit requirements amount to about DH 9.7 million.

D. Water Demand, Supply, Quality and Rights

4.19 Water Demand. Allowing for effective rainfall, types of crops to be grown gnd a cropping in;ensity of 133%, the gross water demand iould amount to 1;3 Mm /year or 9,900 m /ha/year. Peak water demand of 21.3 Mm /month or 8.0 m /sec occurs in August, month with lowest river flow. Efficiency at farm level was assumed at 75% and canal conveyance losses at 15% givinR an overall efficiency of about 65%. The main canal also supplies the recently completed Z6,000 ha Sidi Bennour gravity scheme and the 1,100 ha sprinkler scheme at Boulaouane. Peak demand for these two schemes occurs also in August and would amount to 15.7 m3/sec at full development. Therefore the total irrigation demand would be 23.7 m3/sec. In addition to serving these irrigation needs, the main canal would also supply 2 m3/sec for industrial and domestic needs in Safi. At full development,the total demand at Im Fout headworks would thus amount to 25.7 m3/sec.

4.20 Wae Suply. The Oum Er R'Bia river supplies the main canal via a 17 km pressure tunnel from headworks upstream of the lm Fout dam. Construc- tion of large dams at Bin El Ouidane and Ait Aadel have changed the regime of the river. The lm Fout reservoir is largely silted up (75%) and has no storage capacitv for irrigation. River flows vere analyzed in the Oum Er R'Bia -asterpian (para. 1.02). In 8 ou5 of 10 years the flow would fullv meet the for downstream reservations dema9 d at Im Fout headworks (26 m /sec) and allow (8 m /sec). Deficits of up to 16% would occur in 2 out of 10 years in the critical month of August.

4.21 Water Quality. The saline upstream river water is diluted by twO malor tributariesbut the average conductivityat lm Fout is still 1,260 mmhos/ cm and water would still be classified as C3S1 (United States Salinity Lab- oratory, Riverside). No negative effects may be expected as long as drainage is adequate and relatively salt tolerant crops are cultivated. The same waters have been used successfullyover a period of time for crops similar to those proposed at full development.

4.22 Water Rights. No problems are expected as waters belong to the public domain and are administeredby the MTPC which has transferred its powers in this respect to ORMVAD.

E. Construction Schedule and Status of Engneerinf

4.23 ConstructionSchedule. Constructionof project works would begin in 1975 and be completed by December 1979. The proposed constructionand activity schedule is presented in Annex 8 Table 1. - 12 -

4.24 Status of Engineering. Preliminarydesign for the irrigationand drainage network for the Zemamra subdivision has been completed and is satisfactory. Final design for the Zl perimeter is completed. The Road Directorate of MTPC has completed a study on the need for extension and improvement of the road system. The location of CMV's and village centers has been selected and detailed plans for buildings and village infrastructure would be prepared by ORMVAD. A decision on location of schools to serve seven village centers and of the milk collecting centers is still outstanding. DRA has prepared preliminary designs for the research buildings. Final design and supervision of construction would be carried out by ORMVAD. Selection of consultants has been completed in accordance with Bank guidelines. Enlargement of the main canal is in progress. ONE started preparation of power supply construction work.

4.25 Consulting Services. ORMVADhas engaged a firm of consulting engineers to support its engineering staff in the final design, preparationof tender documents,evaluation of bids, supervisionof constructionand start up of the scheme (Annex 13).

F. Cost Estimates

4.26 Total project cost amounts to US$94.4 million (DH 366.4 million) including taxes, duties and physical and price contingencies. The foreign exchange component is estimated at US$42.0 million (45%). Taxes and duties amount to about US$18.5 million (DR 71.5 million). Cost estimates for civil works and major equipment are based on unit rates obtained in contracts for similarworks in Morocco during 1975. Prices have been updated to January 1976 equivalent. Physical contingenciesrange from 15% for civil works to 10% for equipment. For all civil works, price contingencieswere compounded at annual rates of 14% (1976) and 12% (1977-1979). For equipment, price contingencieswere compounded at annual rates of 10% (1976) and 8% (1977-1979). Overall contingenciesamount to 45% of basic costs. The cost estimates are summarized in the followingtable and shown in detail in Annex 9 Table 1. /1 /1 ID million US million Foreign Total Exchange Item Local Foreign Total Local Foreign

Irrigation Network 1.3 3.6 35 Canals 9.0 4.8 13.8 2.3 1.0 2.8 35 Pumping Stations 7.2 3.8 11.0 1.8 19.6 35 UndergroundPipes 49.5 26.6 76.1 12.7 6.9 4.1 41 Preparation, Farm&bads,eix-.8.6 7.0 15.6 2.4 1.7 Land 3.0 50 DrainageNetwork 6.0 6.0 12.0 1.5 1.5 4.0 70 Electro-MechanicalEquipment 4.6 10.7 15.3 1.2 2.8 8.3 70 Mobile Sprinklers and Hydrants 9.7 22.7 32.4 2.5 5.8 2.7 60 Power Network 4.2 6.3 10.5 1.1 1.6

1.1 2.1 52 AgriculturalManagement 4.0 4.3 8.3 1.0

Infrastructure 6.8 50 Roads, TelephoneNetwork, etc. 13.1 13.2 26.3 3.4 3.4 2.0 41 Village Infrastructure 4.7 3.3 8.0 1.2 0.8 2.5 o AgriculturalCredit 9.7 o 9.7 2.5 o

4.4 47 Administrationand Consultants 2 7-9 17.0 2. 2.1

65.9 46 Subtotal 139.4 116.6 256.0 35.9 30.0 4.0 9.6 42 Physical Contingencies 21.8 15.3 37.1 5.6 8.0 18.9 42 Price Contingencies 42.1 31.2 73.3 10.9 94.4 44 TOTAL 203.3 163.1 366.4 52.4 42.0

/1 Discrepanciesdue to rounding - 14 -

G. FinancinR

4.27 US$30.0 million of the proposed Bank loan together with parallel loans totallingUS$13.0 million from USAID would finance the estimated foreign exchange component of US$42.0 million and US$1.0 million of local costs. The financing plan would be as follows:

DH million US$ million % of Cost

Bank Loan 116.4 30.0 31.8 USAID 50.4 13.0 13.8 GovernmentContribution 198.0 51.0 54.0 Farmers Contribution 1.6 0.4 0.4

Total 366.4 94.4 100.0 = = ____

The overall Bank loan of US$30 million would be for a period of 20 years including a 5-year grace period. The loan period was selected by taking into account the life of the project and project elements and the grace period approximates to the period before significant project benefits are generated. Interest and commitment charges on the Bank loan during the grace period, estimated to be about US$5.4 million, would be paid by the Government.

H. Procurement

4.28 Contracts for civil works and goods financed under the proposed Bank loan vould be grouped to the extent practicable into 12 contracts as indicated in Annex 11. These contractswould be tendered on the basis of internationalcompetitive bidding in accordancewith Bank Guidelines for Procurement. A 15% preferencemargin, or prevailing custom duty, if lower, would be extended to local manufacturers in the evaluationof bids for equipment.

4.29 Procurement in accordanceto local governmentprocedures is appro- priate for constructionof village infrastructure,miscellaneous buildings, telephone lines and windbreaks totaling US$3.6 million because, either the character of the goods and works, or the amounts involved are such that foreign firmaswould not be interested (e.g. works are scattered through the project area). Individualpurchases of equipment not exceeding US$80,000 and which would be financed from the proposed Bank loan would also be procured in accordancewith applicable local proceduresup to an aggregate of US$700,000. Bank staff have reviewed the local procedures and found them acceptable. There iL adequate competition. - 15 -

4.30 The contracts financed by USAID (Annex 11) would be tendered in accordance with USAID procurement regulations. Government agreed that procurement procedures outlined in paras 4.28 and 4.29 would be followed.

I. Disbursement

4.31 The proposed Bank loan would finance:

(a) 60% of the power transmissionlines and related equipment;

(b) 41% of all civil works, except civil works for four pumping stations and for village water supply financed by USAID;

(c) 100% of the foreign cost of imported goods or of the ex- factory cost of locally produced goods procured through international competitive bidding, and 75% of other locally procured goods; and

(d) 74% of the total cost of foreign consultants.

Savings on the proposed Bank loan, if any, vould be cancelled. The estimated disbursement schedule is presented in Annex 12.

J. Retroactive Financing

4.32 Contracts involving up to a total of US$1.5 million of Bank financing awarded according to Bank guidelines after May 31, 1975 would qualify for retroactivefinancing. Contracts likely to fall into this category would be for power supply, electro-mechanicalequipment for one pumping station, enlargement of main canal, underground pipe network for one sector, four water tovers and foreign consultants. Timely completion of these project elements would assure early project benefits.

K. Enviroumental Impact

4.33 The project would improve the enviroument by providing bilharzia control and village infrastructure in the form of village roads, water supply to community tape, public lighting, schools, etc. - 16 -

V. PROJECT IMPLEMENTATION

A. Organization and Management

5.01 ORMVAD would be the primary executing agency and would be responsible for the construction, operation and maintenance of the irrigation and drainage works, and for agricultural development. ORMVADwould also be responsible for construction of treated water supply facilities, project buildings, and farm roads, and in addition would supervise constructionof the village centers. The Department of Animal Production of MARAwould advise ORMVAD in implementationof the cross-breedingprogram to maintain a proper balance between production potentials and disease and parasite resistance. ONE would be the executing agency for constructionof connecting power lines in the project area (para 4.09) and the Road Directorate of MTPC would be the executing agency for constructionand improvementof the road network (para. 4.11). The Ministry of Education would be the executing agency for construction and operation of schools; and the Ministry of Public Health would be responsible for elaboration and implementationof the bilharzia control program. ONE, the Road Directorate of MTCP and the Ministries of Education and Health would carry out their responsibilitiesthrough their local offices in El Jadida. The Directorateof Equipment of MARA, in coordination with the National Electricity and Water Supply Offices, would be responsible for supervising execution of the Dechra El Oued feasibilitystudy (para 5.05). ORMVASM and the Export Trade Office (OCE) would be involved in supervising execution of the vegetable study (para 4.15).

5.02 A project CoordinationCommittee, with local representationof all governmentagencies involved in project implementation,would be responsible for the coordinationof the different agencies involved. Government agreed that the Project CoordinationCommittee would meet not less than once every three months to approve quarterly progress reports, review past achievements and future work program for each of the participating organizations and make recommendations to take action as necessary to ensure coordination between participants. The establishment of the Project Coordination Committee with terms of reference satisfactory to the Bank, would be a condition of effectiveness of the proposed loan.

5.03 ORMVAD. The existing set-up of ORMVAD was discussed in Chapter III. The present organizationwould be restructuredand strengthenedfor the implementationof the project, in view of the heavy workload presently being undertakenby ORMVAD, noticeably the developmentof the 27,100 ha already equipped for irrigation. Because of the distance from the project area to ORMVADheadquarters in El Jadida, subdivisional offices for (a) construction, (b) operation and maintenance, and (c) agriculturaldevelopment would be establishedin Zemamra (Chart 15,200). The "Subdivisionfor Construction" directly responsible to the Design and ConstructionService in El Jadida has already been created and its chief appointed. This subdivision coordinates ORMVADconstruction activities in the project area. Upon completion of project works the "Subdivision for Operation and Maintenance", responsible to - 17 -

the Operation and Maintenance Service in El Jadida, would assume primary responsibility for operating the irrigation system and for major maintenance and repair works. In addition Government agreed to create prior to 1979 the "Subdivisionfor AgriculturalDevelopment", responsible to the Agricultural Service in El Jadida. This subdivisionwould coordinate and supervise all CMV activities. The Governmentagreed that the posts of chief of the latter two subdivisionswould at all times be filled by persons with such qualifica- tion and experience as are required to ensure the successful implementation of the project.

5.04 Consultants. Present Design and ConstructionServices of ORMVAD are understaffedto meet project needs. In addition to the proposed perma- nent reinforcementof the Design and ConstructionService (Annex 2 Table 4), the size and complexityof the project works would require assistance from a consulting engineering firm for design work, preparation of contract documents, evaluation of bids, supervision of constructionand start-up of facilities (Annex 13). ORMVAD has already selected consultants in agreement with the Bank. Agreement was reached that their employment would be on terms and conditions acceptable to the Bank.

5.05 The Directorate of AgriculturalDevelopment of MARA would employ consultants to carry out a feasibilitystudy of the planned multi-purpose Dechra El Oued dam. Outline of Terms of Reference are given in Annex 13. The Government agreed to appoint consultantsagreeable to the Bank on terme and conditions acceptable to the Bank. In addition Government agreed to employ before July 1, 1976 consultants to assist the Government in a feasibility study for production, marketing and processing investments for vegetables in the Region of Massa.

5.06 Organizationof Farmers and Cooperatives. Farmers are expected to join in groups when their land becomes more productive following the trend observed in areas already irrigated in the Doukkala. With assistance of ORMVADthey would establish independent service cooperatives to meet their needs for medium and short term credits, bulk marketing, and coownership of equipment (mobile sprinkler equipment). ORMVADhas previous experience in the establishment of cooperatives and has also an ongoing training program for cooperative managers to meet future needs in their perimeter. ORMVAD has been effective in establishing milk collection cooperatives over the last three years.

5.07 Following the experience in other irrigation projects In Morocco farmers would group into "Water Users' Associations" to organize water allocation among themselves. The minimum size would be farmers served by one hydrant. Farmers' water users' associationswould select among themn- selves a "common irrigator" responsible for equitable allocation of water and to serve as contact between the farmers and government watermen. - 18 -

B. Operation and Maintenance

5.08 The CMV's would organize water allocation and record hours of usage for billing purposes. Also, farmers'water users' associationswould select among themselvesa "common irrigator", (para. 5.07). Major repairs and maintenance of the irrigation system and of all equipment and vehicles would be the responsibilityof the Subdivisionfor Operation and Maintenance in Zemamra, which, in addition to its central workshop, would be equipped with mobile repair units. Minor maintenanceand repairs of the irrigation system would be carried out at the local CMVlevel. Farmers operating 4 ha or more would own their own mobile sprinkler equipment. Farmers owning less than 4 ha would join into cooperatives for ownership of the equipment. Operation and maintenance of mobile sprinkler equipment would be the responsibility of the farmers or cooperatives who would obtain assistance from the CMV's.

5.09 Operation and maintenance of schools would be the responsibility of the Ministry of Education. No firm program has yet been established for staffing and operation of the schools as their constructionprogram would start within the frameworkof the next national 5-year plan. Agreement was reachedwith the Government that the Ministry of Educationwould provide the staff and facilitiesneeded to operate and maintain the schools as and when required.

5.10 Maintenanceof power facilitieswould be the responsibilityof ONE, and the Roads Directorateof the Ministry of Public Works would be responsible for all classified roads. Farm access roads would be maintained by ORMVAD. DRA would operate and maintain the research facilitiesprovided under the project. Maintenance of water supply facilities would be performed by ORMVADuntil sufficient populationhas settled in the village centers and a village council formed to take over this responsibility. The Government agreed to cause ONE, MTPC, DRA, and ORMVAD to operate and maintain the facilitiesas outlined above.

C. Services

5.11 Supply of Inputs. Under the project land preparation,bulk sowing and cereal harvesting would continue to be mechanized. Farmers would use their animals for cultivation of rowerops and transport within the farm. Agricultural machinery is available through ORMVADat subsidized interest rates and through private entrepeneurs. Agricultural inputs required for the project area are listed in Annex 2. Inputs would be supplied to farmers through local merchants and through CMV's. Extension agents would assist individual farmers and cooperatives in selecting type and quantity of inputs and in obtaining necessary credit. For sugar beet, cotton and maize, farmers would participate in a package program. This integrated cropping operation is organized and managed by ORMVADand includes supervised credit in form of materials, e.g. seeds, fertilizer, services, and cash payment (Annex 6). - 19 -

5.12 Extension. The extension service would be improved by (a) appoint- ing agriculturiststo head the CMV's; (b) increasing the number of agents to 10 per CMV; and (c) providingnecessary vehicles. The number of agents would correspond to one per 65 farmers or about 300 ha and could be reduced once full development is achieved in about six years after project implementation. Government agreed to cause ORMVADto employ necessary staff for agricultural extension in the project area. Subject matter apecialists of the Agriculture and Livestock Service vould assist the agents. The artificial insemination service would be strengthened by providing staff and vehicles. Annex 2 Table 4 gives incremental staff requirements.

5.13 Research. Research facilities would be strengthened. The DRA station at Jeuie Sahim would be developed under the project and become the main station for applied research and seed production. The station has basic agricultural equipment and the project would provide buildings, vehicles, research equipment, animals and incremental staff (Annex II Table 3).

5.14 Credit. At full development incremental annual requirements for seasonal credit would total DH 5.9 million and for medium term credit about DH 3.8 million. Medium term credit would be requîred in the initial stages mainly for livestock development and stables. Present credit practices are satisfactory and the Goverîment has sufficient funds to meet project needs. CNCAalso finances loans to farmers participating in integrated cropping operations (supervised credit) organized and managed by ORMVAD. Crops included are sugarbeet, cotton and hybrid maize. Government would make available at all times sufficient funds to meet credit needs. Credit would be provided to farmers, groups of farmers and cooperatives (Annex 6).

D. Land Consolidation

5.15 All lands benefitting from the project are private freehold and vould be consolidated as the first step in project implementation. Land tenure changes to be implemented by the project are governed by the Land Consolidation Law of 1962 and the Agricultural Investment Code of 1969 (Annex 4). The main objectives of the existing legislation are to (a) stabilize ownership patterns, and (b) establish viable family holdings by eliminating fragmentation and future subdivision.

5.16 Based on results obtained on already consolidated land (60% of the project area) farm size distribution after land consolidation which would be completed in time for project implementation is expected to be as follows: - 20 -

Farm Size Farm Units Area

__(ha) Number % Ha

0 - 2 1,370 43 1,960 13 2 - 5 1,130 35 4,850 31 5 -10 440 14 3,850 25 10-20 124 4 1,490 10 Above 20 136 4 3,250 21

Total 3,200 100 15,400 100

E. Recovery of Project Costs

5.17 The Agricultural InvestmentCode of 1969 provides for the recovery from project beneficiaries,over the life of the project of full operation and maintenance costs and up to a maximum of 40% of the investment costs. Costs are recovered through (a) a fixed betterment levy on a per ha basis, (b) a basic water charge on a volumetric basis, and (c) a supplementary water charge to cover energy costs for pumping. The betterment levy amounts to DH 1,500 per ha; however the first 5 ha of holdings up to 20 ha are exempted from pavment of the betterment levy. In addition, farmers can choose to pay the levy through annual installmentsover 20 years. Over the first five years of irrigated cultivation,the amount of the basic water charge is increased linearly to the full base rate.

5.18 For the Bank financed Sebou II Development Project (Loan 1018 MOR) the Government agreed to a periodic review of the levels of the basic water charge to take into account actual operation and maintenance and investment costs. Later under the Bank financed Souss Groundwater Project (Loan 1123 MOR) Government agreed to collect water charges from the start of irrigation and review them thereafter at its own initiative or at the request of the Bank, with the objective to recover throughout the life of the project actual operation and maintenance costs and up to 40% of the actual capital costs, taking into account beneficiariesincentives and capacity to pay. For the proposed project, Governmenthas agreed to recover, beginning in the fifth year of irrigation,all actual operating and maintenance costs and, taking into account the beneficiaries'incentives and capacity to pay, to recover over the life of the project a reasonable proportion of the actual capital costs through the water charges and betterment levy provisions of the AgriculturalInvestment Code. Furthermore,an understandingwas reached at negotiations that the proportion of capital caste, discounted at the social discount rate, to be so recovered would, subject to the beneficiaries'capacity to pay, be 40%, less that amount represented by the exemptions from the betterment levy provided for under the Investment Code. - 21 -

5.19 The energy cost for pumping for the Doukkala subprojectwould be passed directly to consumers through the supplementarywatercharge (para 5.17). The present bulk tariff, which ORMVAD is likely to pay for electricity,DH 0.128 per kilowatt hour, is close to the estimated marginal cost of provïding power. In addition Governmentin accordancewith the AgriculturalInvestment Code is preparing an index to adjust the basic water charge (para 5.17) in accordancewith certain parameters (constructioncosts, prices of agricultural inputs and commodities)to compensatefor the effect of inflation. The Gov- ernment indicated its intention to institute a system for indexing before the end of 1977. The Government has also informed the Bank that it is at present undertakinga review of water charges for irrigation throughoutMorocco, and that the new structure of water charges, which would be implementedas a result of this review will retain the element of progressivity with incomes, which ls a feature of the present structure, resulting from the exemption of small farmers from the betterment levy.

5.20 For the proposed project using (a) the method of calculation agreed upon during negotiations,(b) a discount rate of 10%, and (c) 1975 prices, results in a charge of DH 147 per thousand cubic meters (US$37.9). The charge consists of DH 115 as a basic charge and DH 32 as a supplementary pumping charge. This would correspond to an annual operation and maintenance charge of US$203 per hectare and an annual investment recovery charge of US$118 per hectare.

5.21 The proposed water charges would together be about 400% higher than the basic water charge of DH 29 per thousand cubic meters imposed on beneficiaries of other new irrigation schemes in Morocco. Proposed recovery charges would correspond to the following percentages of net incremental value of production on different farm types (para 6.12):

Recovery Charges plus Incremental Recovery Charges Expressed as Benefit Taxes Expressed as Z of Z of Incremental Z of Z of Incremental Net Value Net Value Net Value Net Value of Production of Production of Production of Production Farm Type

2 ha Farm 32 39 34 42 5 ha Farm 32 39 34 42 25 ha Farm 43 47 45 50

Although at full developmentthis would leave the majority of farmerswith a per capita income below the projected national average, the charge ls considered reasonable considering low projected incomes of the farming population in adjacent areas which do not benefit from the project. Project farm families operating less than 5 ha farms would have extra income from part time paid labor on larger farms. Proposed charges leave sufficientincentives to farmers to participatein the agriculturaldevelopment. The table below indicates by income classes number of farm families and benefit recovery indexes. The figures compare with an absolute poverty level for Morocco estimatedat US$79 per capita. - 22 -

Average per /t Representative Farm Families Benefit Capita Income- Farm Size No. % Recovery Index

US$304/2 2 ha 1,300 40 43 US$540 5 ha 1,640 52 43 US$1,800 25 ha 260 8 53

/1 At full developmentnet of all taxes and water charges. /2 Includes US$90 for income as laborer.

5.22 To measure the subsidy element direct project cost and project revenues (based on assumptionsoutlined in para 5.20) were discountedat a rate of 10% over project life. The present value of costs is DH 230 million and the present value of revenues is DH 115 million, which correspondsto 50% deficiency in recovery of costs. The Government however would also benefit from (a) incremental benefit taxes, and (b) differences in prices paid to farmersand world market prices for agriculturalcommodities (para 6.11). For sugar beet the price differenceis about 30% and for cotton 17% (Annex 14). These additionalbenefits, discountedover project life at 10% interest would amount to about DH 39 million. The Cost Recovery Index would therefore be 67%.

5.23 Because of the relative poverty of the populationno direct participation of beneficiaries in investments for village infrastructure has been considered. However, in accordance with Moroccan legislation beneficiaries would pay municipal taxes and thus would indirectly contribute to recovery of these investments. Investments,operation and maintenanceof classified roads are financed through taxes on gasoline.

F. Monitoring

5.24 During project implementationcontinuous collection of data would be necessary as a basis for decision-makingby project management. An important function of the reports would be to provide early warning on develop- ing problems which, unless corrected,would prejudice the success of the project.

5.25 Success of the project in the long run vould be expressed in incrementalproduction and incremental farm income. ORMVAD is presently monitoring production of different areas at the market outlets (processing industries, milk collection centers, cooperatives). Government agreed that ORMVADwould continue to monitor production and that in addition to normal reporting requirements a sample survey on production and incomes of representative farms and a correspondinganalysis be carried out in 1980 in order to facilitateevaluation of actual project benefits. In addition, Government agreed to cause the Ministry of Public Health to monitor the incidence of bilharzia in both subprojectareas and take immediate action if the incidence of the disease increases in either subprojectarea throughoutthe life of the project. The Ministry of Public Health would submit annual reports on the subject to the Bank. - 23 -

G. Accounts and Audit

5.26 The government agencies maintain budgets and accounts which are satisfactorily audited by the Auditor General. Goverument agreed that each government agency that is responsible for any part of the project would maintain separate accounts for the project work with which it is associated and that satisfactorily certified audited annual financial statements of these project accounts will be forwarded to the Bank within four months of the end of each fiscal year. In addition, in order to facilitate ORMVAD'scontrol of water charges, Government agreed to cause ORMVADto maintain separate accounts, reflecting revenues from recovery charges and investment, operation, maintenance and replacement costs of the irrigation system.

VI. BENEFITS AND JUSTIFICATION

A. Production

6.01 At full development in 1989 the main crops grown in order of de- creasing tonnage would be alfalfa, sugar beet, tomatoes, berseem, wheat, maize, barley fodder and cotton. The main livestock products would be 18,000 tons of milk, 2,000 tons of beef (liveweight)and 1,500 crossbred heifers (Friesian).

6.02 Only minor increases are expected without the project. Low crop and livestockproductivity is partially explained by low cropping intensity, poor yields and low carrying capacity of pastures, which are direct results of low rainfall and lack of irrigation.

6.03 After the project the production of crops and livestock would increase appreciably as shown in the following table. Incremental production would result from adequate and timely irrigation,a change in cropping pattern, intensive cultivation, greater and efficient use of fertilizer and effective pest and disease control. Greater use of this technology would be achieved through improved agricultural supporting services.

6.04 The proposed crops and crop rotation takes into account soils, climate, water availability, labor requirements, and marketing facilities. Different rotations for typical farms include a heavy proportionof industrial crops (Annex 2 Table 2). Yields are expected to increase significantly because of irrigation, increased inputs and strengthened supporting services. Projected yields take into account possible water shortages in 2 out of 10 years (para. 4.20). Adequate feeding plus an effective cross-breedingprogram by means of artificialinsemination and health controlwould raise the lacta- tion significantly. Full agriculturaldevelopment would be reached 10 years after project completion. At full development,the cropping pattern, incremental production and cropping intensitywould be as follows: - 24 -

Crops Without Project With Project Incremental Area Production Area Production Production (ha) (tons) (ha) (tons) (tons)

Wheat 9,600 9,600 6,360 19,080 9,480 Maize 1,500 1,200 3,970 9,925 8,725 Sugar Beet - - 2,900 130,500 130,500 Cotton - - 1,360 2,040 2,040 Beans 1,600 1,280 - - (1,280) Tomatoes - - 1,360 54,400 54,400 Alfalfa - - 3,430 205,800 205,800 Barley Fodder - - 320 6,400 6,400 Berseem - - 830 20,750 20,750 Milk - 2,500 - 18,000 15,500 Beef - 700 - 2,000 1,300

Total 12,700 20 530

Cropping Intensity 82.5% 133%

B. Markets

6.05 The pattern of production and marketing at full developmentwould shift towards industrial crops. The proposed increase in cereals production appears well justified as it would reduce the projected increase in deficit for the country. No marketing problems for these products are therefore foreseen.

6.06 Morocco imports increasingly larger amounts of sugar to meet domestic needs. Projected future production of sugar beet would exceed existing processing facilities. However the existing capacity is presently being ex- panded to 4,000 tons/day. Additional capacity would therefore only be required in 1982 to process sugar beets from the area already under irrigation and the project area (Annex 14). Government plans call for a new factory in 1982. Governmentagreed to provide adequate processing capacity at all times to meet project needs.

6.07 No marketing problems are foreseen for cotton. The 34.5 mm fiber, because of its strength, is highly appreciated in European markets. Ginning capacitiesin project area are adequate to meet project needs.

6.08 Tomato productionwould mainly be transformed into paste and export prospects are good. Private entrepreneurshave expressed interest in setting up processing facilitiesin Doukkala. Credits for establishingnew plants are available through the National Development Bank (BNDE). - 25 -

6.09 An important element in the country'sdependence on milk imports is the inability to offer the producer a reliable outlet for his production throughoutthe year. The proposed constructionof milk collectioncenters (para 4.16) would reduce this problem. Future milk productionwould be absorbed by the Central Milk Plant in Casablanca and a plant under construction in Sidi Bennour.

6.10 Additional informationon marketing are given in Annex 14. No marketing difficultiesare foreseen for project produce.

C. Prices

6.11 Two sets of output prices have been used for project appraisal, one for economic analysis and the other for financial analysis of farmer's income and farm budgets. For economic analysis, tradeable commodities have been valued at international prices as described by the Bank's Economic Analysis and Projection Department (EAPDI) for 1980, in 1975 constant US dollars adjusted to a farmgate basis. Other products which are not covered in EAPDI list of commodities have been based on the mission's estimate of projected border prices. For financialanalysis all commoditieshave been valued at 1975 current farmgate prices including subsidies. The two sets of prices are given in Annex 14. With exception of tomatoes and milk financial prices are equal or below the economic price levels. In case of sugar beet the differenceis about 30%.

D. Farmers' Income

6.12 At full developmentaverage farm income of farm families operating different farm types (Annex 15) would be as follows:

Net Cash Income (after tax) Farm Type Area With Project Without Project (ha) (DH) (US$) (DH) (US$)

I 2 4,970 1,280 1,330 342 II 5 12,630 3,255 2,680 690 III 5 11,226 2,890 2,680 696 IV 25 41,600 10,720 6,780 1,747

The average per capita income of the farming population would increase from US$110 to US$485 which would compare with a projected average national per capita income of US$700 in 1992. - 26 -

E. Main Benefit and Beneficiaries

6.13 Economic rates of return, costing hired labor at the market rate of DH 10 per day and family labor at DH 8 per day and excluding village infrastructure,are summarizedbelow:

Doukkala Project

1. Basic Rate of Return 11.4 2. Increasingall costs 20% 9.3 3. Decrease Benefits 20% 8.8 4. Increase Power Costs 50% and all other costs 20% 8.9

Details in other sensitivity tests are presented in Annex 16.

6.14 The major quantifiable benefit from the project would be the substantial increase in agricultural output which would raise farmers' incomes and employment opportunities. The project would benefit mostly farmers operating farms of less than 5 ha. Among the intangible benefits would be the creation of better living conditions as a result of investments in the social infrastructure which would enhance quality of life. The bilharzia control program would improve the health standards and prevent any deter- ioration in the Jadida Province. The project would leave an important ben- eficial effect on the rural employmentmarket. Labor requirementswould increase at full development,increasing employment by 4,100 man years of labor. In addition, the project would provide the greatest additionalem- ployment during periods wheu employmenthas been traditionallythe lowest and thereforewould reduce seasonalityof employment. Further use of existing processing capacitiesas well as establishmentof additional processing plants vill create varied employment opportunities (Annex 17).

VII. AGREEMENTSREACHED AND RECOMMENDATIONS

7.01 Agreements reached during negotiations included:

(a) A Project CoordinationCommittee with composition,powers, and terms of reference satisfactoryto the Bank would be formed and would meet at least quarterly (para 5.02);

(b) The post of chief for the subdivisions of (a) Construction and (b) Agricultural Development in Zemamra would at all times be filled by persons with such qualifications and experience as are required to ensure successful implementation of the project (para 5.03);

(c) The Government would cause ONE, MTPC, DRA, and ORMVADto operate and maintain facilities (powerlines, roads and research facilities)provided under the project (para. 5.10); - 27 -

(d) ORMVAD would continue to monitor production in the project area and carry out a sample survey on production and incomes of representativefarms in 1980 in order to facilitate evaluation of actual project benefits. The Ministry of Health will continue to monitor the incidence of bilharzia and will take immediate action if bilharzia incidence increases throughout the life of the project (para. 5.25).

7.02 The establishment of the Project Coordination Committee with Terms of Reference satisfactory to the Bank (para. 5.02) would be a condition of effectiveness of the proposed loan.

7.03 With the agreesents reached and fulfillment of conditions of effectiveness the proposed project would be suitable for a Bank loan of US$30 million, repayable over 20 years with a 5-year grace period. The borrower would be the Kingdom of Morocco.

January 9, 1976

ANNEX1

KINGDOMOF MOROCCO

DOUKKARLAIRRIGATION PROJECT

Climatic Data

Month Temperature (OC) Relative Evap- Sunshine Maxiumi Minimum Average Rainfall Uumidity oration Hours (Dmm) (7) (mm) (h)

January 18.2 7.3 12.1 43 )

February 19.0 7.7 12.9 59 ) 82 246 590

March 20.8 8.6 14.3 38 )

April 22.2 10.2 15.7 24 )

May 25.4 13.1 19.2 8 ) 74 520 792

.June 28.9 16.1 21.8 4 )

July 32.9 18.9 24.9 0 )

August 33.3 19.4 25.6 0 ) 70 711 997

September 31.3 17.1 23.3 8 )

October 27.7 14.2 19.9 45 )

November 21.4 10.8 15.3 74 ) 78 319 650

December 16.9 6.7 12.0 57 -

Annual Total 360 1.796 3.029

Annual Average 24.8 12.5 18.1 76

December 1975 ANNEX 2 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

Crop Production

General

1. Out of 7.7 million ha of land suitable for cultivation in Morocco about 6 million ha (80%) are cultivated. Nearly one million ha have irrigation systems, but one-third of these receive water only in winter by flooding and less than 400,000 ha have modern and efficient perennial irrigation. Although grain crops mainly wheat and barley, comprise 75% of the cropped area and about 40% of the irrigated area the wheat deficit in Morocco for 1975 is estimated at 1.5 million tons. Production could be significantly increased by irrigation of dry lands and by giving full water supply on present partially irrigated land. In Morocco and in the Oum R'bia Basin where water is a limiting factor, agriculturaldevelopment should envisage efficient use of this resource. The Doukkala Irrigation Project aims at efficient use of water for productionof sugar beat, cereals, and milk for import substitution, and industrialtomatoes and long staple cotton for export. It would provide sprinkler irrigation for 15,400 ha presently dry farmed in Doukkala.

Climate

2. The climate is under maritime influence. Annual rainfall averages 360 mm. Dry periods may extend over six months, and supplementaryir- rigation is required for most crops in the project area. The rainfall pattern shows strong variation from year to year. Average monthly temperaturesvary from 12.0°C in December to 25.0°C in August. Average minimum and maximum temperaturesvary from 6.7°C in December to 33.3°C in August respectively. The relative humidity average is 76%. Evaporation amounts to 1,800 mm.

Soils and Topography

3. The project area extends from Sidi Smail towards Zemamra along the main road to Safi (R.P.8). The total net area covers 15,400 ha. The average elevation is about 150 m above sea level and the general slope two to three percent in northwestern direction. The microrelief is irregular. A number of gentle sloping 10 to 20 m high mounds rise up from the flat terrain. They cover approximately 15% of the area and would have to be excluded in case of surface irrigation.

4. ORMVADcarried out a soil survey scale 1:10,000 (final maps 1:20,000) covering the entire subprojectarea recognizing light alluvial soils along old riverbeds and bordering the "Sahel", brown calcareoussoils underlain by calcareousmaterials, subtropicalisohumic soils of limited depth underlain by calcareouscrusts, and deep vertisols. ORMVAD also completed a land capability classification(scale 1:10,000) recognizing 4 classes: ANNEX 2 Page 2

Class I. Lands suitable for irrigation farming, capable of producing sustained and relatively high yields of a wide variety of climaticallyadapted crops at a reasonable cost. 7300 ha

Class II. Soils of medium depth underlain by a light calcareous layer. Suitable for a variety of climatically adapted crops, not recommended for fruit trees. 2400 ha

Class III. Shallow medium to light textured soils limited by a hard calcareous layer. Suitable for cereals, forage crops and most vegetables, not recommended for cotton and fruit trees. 5200 ha

Class IV. Very shallow soils underlain by a hard calcareous layer generally considered not irrigable. 600 ha

5. Poorer lands which includes all class IV and part of class III lands are mainly located in the Zo section North of road LT 1307 (Map 11855R). Class IV lands are mostly light textured of limited depth (less than 50 cm) and underlain by an indurated calcareous layer. On technical grounds irrigation development of these soils would have low priority. However small hold7- are located in this area and land consolidation has been completed thus creating expectations for further development among the local population. The Government is reluctant to exclude these lands. ORMVADbased on experimental results during 5 years in Sidi Bennour (para 17) proposes to break the crust by subsoiling and destoning to achieve better root penetration and crop development. Part of class three lands also require subsoiling. ORMVAD vould, before project execution and based on existing aerial photography topographic maps and field checks revise the existing pedological maps in the problem area (about 3200 ha all located north of road CT 1307) in order to define the scope of land preparationworks and to decide on possible exclusion of all or part of class IV land.

6. The project area because of pedologic and topographic conditions should be sprinkler irrigated. The relatively shallow soils do not permit necessary land leveling for installation of a gravity system. Experimental results obtained at ORMVAD'sfield station in Sidi Bennour show slightly higher yields under sprinkler irrigation.

Present and Future Land Use and Yields

7. The subproject area (15,400 ha net) is presently dry farmed with wheat (63%), maize (10%), and beans (10%). The remainder is fallowed. Sheep, goats, and cattle subsist on fallowed land, supplemented by crop residues and stubble. Because of the scanty and irregular rainfall (360 mm), yields are low varying from almost nothing in dry years to 2 tons per ha for wheat, 1 ton/ha for maize and 1.2 ton/ha for beans in wet years. Average yields and revenues do not allow improved agriculturaltechniques and additional inputs. Present average annual crop production amounts to about 9,600 tons of wheat, 1,200 tons of maize, and 1,280 tons of beans (Table 1). No significant production increases are assumed under prevailing conditions. ANNEX 2 Page 3

8. With the project the total area would be irrigated with sprinklers and the availablewater supply would permit an intensive cropping pattern. High value and labor intensivecrops like sugar beet, cotton and industrial tomatoes would partly replace wheat and beans. Alfalfa and fodder would be grown for milk and meat production.

9. Choice of crops and crop rotations take into account soil conditions. To improve and maintain the fertility,mixed farming (crop/livestock) would be implementedand the rotation would include a high percentage of leguminous crops. At full developmentthe cropping intensitywould be 133% and the pattern as follows:

Cereals Wheat 6,360 ha Maize 3,970 ha

IndustrialCrops:

Sugar beets 2,900 ha Cotton 1,360 ha Tomatoes 1,360 ha

Fodder Crops:

Alfalfa 3,430 ha Barley 320 ha Berseem 830 ha

Rotations followed by different farm types are shown in Table 2.

10. Yields are expected to increase significantlybecause of irrigation, increased inputs and strengthenedsupporting services. (Wheat 3.0 tons/ ha, maize 2.5 tons/ha, sugar beets 45.0 tons/ha, cotton 1.5 tons/ha, industrial tomatoes 40.0 tons/ha). Projectionstake into account possible water deficienciesin certain years (once in 10 years 16%). Because of the author- itan approach adopted by ORMVAD for the main crops (sugar beet, cotton, and cereals) farmers are expected to achieve projected average yields within 6 years after receivingwater. Projected yields are based on results obtained in the already irrigated area in Sidi Bennour, on a sprinkler irrigated area of about 80 ha within the Zemamra subdivision and experimental results and take into account limiting soil conditions. The projections are significantly below the currently obtained yields in DRA demonstration plots or research centers. Future yields, and production are summarized in Table 1. Inputs

11. Labor and Mechanization. Under the project land preparation, bulk sowing and cereal harvesting would continue to be mechanized: (a) because land preparation and harvesting periods create peak labor demands; (b) in order to insure that a second crop can be grown on time; and (c) because there are not sufficient animals within the project area. Animal power would mainly be used for cultivationof row crops and transportwithin ANNEX 2 Page 4

the farm. Tractors are available for sugar beet, cotton, and cereal operations through ORMVADat a subsidized rate and through private entrepreneurs. ORMVADarranges aerial sprayings for cotton when necessary, but to the extent possible sprayings vould be done by the farmer himself. All other operations would be done manually. Householde farming 5 ha or more would require to hire additional labor during peak seasons. This demand would be met by smaller farmers which othervise would continue to be underemployed. Details on the employment situation in the project area are given in Annex 17.

12. Seeds. Improvedseeds are availableand would be used in the projectarea. Researchhas been carriedout with high yieldingwheat varietiesand hard wheat currentlygrown in the area would be progressively replacedby Mexicantype soft wheat (SieteCerros) and the Moroccanvarieties 149/70/7and 150/70/7. Tadla 16 is a cottonvariety well adaptedin already irrigatedareas of the Doukkala. The fiber is shorter(34.5 mm) if compared vith Pima varieties(38 mm), but stronger and appreciated on European markets. DRA producedsufficient improved cotton and cerealseeds to meet project needs. These seeds are distributedto the farmer through ORMVAD.In a similar way ORMVADhas an agreementwith COMAGRI,for sugar beet seeds. The main sugarbeet variety cultivated ia Zwaan Poli and to a lesser extent varieties like Maribo, Polibel, Tribel, KWS, Megapoly, and Delitsch Poly 24. Alfalfa seeds are provided by ORMVADand vegetable seeds (beans, tomatoes, etc) are mainly distributed through private merchants. No difficulties are foreseen for future seed distribution.

13. Fertilizers. Present consumption of fertilizer is low (140 tons N, 110 tons P205, 100 tons K20) but would vith the projectincrease to 1,700 tons of N, 1,700 tons of P205 and 1,100 tons of K20. Recommendeddosis assumeuse of animalmanure for main crops. A summaryof estimatedfuture fertilizer demand is presentedbelow: NUTRIENTCONSUMPTION

N P205 K20 -- Kg/ha/year------Crops

Wheat 100 80 60 Maize 100 80 60 Sugarbeet 150 120 50 Cotton 60 70 40 Tomatoes 80 120 80 Alfalfa 20 80 60 14. Fertilizersare distributedby ORMVADand privatemerchants and are availableon creditto farmers,groupe of farmersand cooperatives. ANNEX 2 Page 5

15. Plant Protection. ORMVAD would organize and implement pest and disease control. Pest and disease control materials are available for distribution to farmers through ORMVAD. The main pests of the cotton crop are the pink bollworm (Platyedagossypiella), spiny bollworm (Earias insulana), American bollworm (Heliothis armigera), and white fly (Bemisia tabaci). About 6 routine spray applicationsare needed to maintain control. Sugar beets are sprayed at least twice, mainly against aphids (vectors of virus diseases) and dry heart rot (Boron deficiency). Metasystox, Endrin, DDT, Dicarbam, Sevin, Borax, Ziram, Captan, and Copper sprays are the main chemicals used. SupportiiL__ervi ces

16. DRA is responsible for agricultural research in Morocco and has, supported by USAID and the InternationalCenter for Improvementof Maize and Wheat in Mexico (CIMYT), successfully introduced and adapted high yielding cereal varieties. Cotton research and seed multiplication is supported by the "Institut de Recherche pour le Coton et les Textiles" (IRCT) and "Compagnie Francaise pour le Developpement des Fibres Textiles" (CFDT) through bilateral technical assistance. DRA operates 3 experimental stations in Doukkala: (1) Boulaouane is the oldest station in the area but because of pedological conditions not representative for the region; (2) Sidi Bennour is mainly dedicated to fruit production; and (3) Jemie Sahim located within the project area, would benefit from the project irrigation network and is representative for both the Zemamra and Tnine Rharbia subdivisions. It would be developed under the project to become the main station for applied research and seed production. Table 3 gives a complete list of buildings and equipment to be provided under the project.

17. The sugar factory in coordination with DRA and ORMVADgives technical assistance to farmers and carries out field experimentswith sugar beets. ORMVAD operates one field station in Faregh and one near Sidi Bennour. Their work concentrates on measurements of evapotranspiration and management of typical soils under irrigation. Experimental data collected in 7 years of experience show slightly higher yields for wheat, alfalfa, and sugar beets under sprinkler irrigation as compared to gravity irrigation in the prevailing soils. Four years of experiments also show yield increases of about 10% (sugar beet, maize, cotton, alfalfa) as a result of deep subsoiling and destoning.

18. The CMV's would be staffed (Table 4 and equipped (Annex 11)) to meet roject needs. The CMV's because of their distance to ORMVAD headquarters in El Jadida would depend directly from the Zemamra Office for Agricultural Development.

Januarv 9, 1976 ANNEX 2 Table 1

KINGDOM OF MOROCCO

DOUKKALAIRRIGATION PROJECT

Land Use, Yields and Production

Item Without Pro,lect With Project Area Yield Production Area Yield Production (T) (ha) (ton/ha) (tons) % (ton/ha) (tons)

Wheat 62.5 9,600 1.0 9,600 41.3 6,360 3.0 19,080

Maize 10.0 1,500 0.8 1,200 25.8 3,970 2.5 9,925

Sugar beet - - - - 18.8 2,900 45.0 130,500

Cotton - - - - 8.8 1,360 1.5 2,040

Beans 10.0 1,600 0.8 1,280 - -

Tomatoes - - - - 8.8 1,360 40.0 54,400

Alfalfa - - - 22.3 3,430 12.J 41,160

Barley Fodder& - - - - 2.0 320 20.0 6,400

Berseenm -l - - - 5.4 830 25.0 20,750

Total 82.5 12,700 133.2 0O 0

/1 Green matter.

December 1975 KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Crop Rotations

Item Area Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 (h7a Crops -ha Crops ha crops ha Crops ha crops ha Cropa ha

Doukkala Subproject

. Type I 0.505 TomatoTmt 0.5 2 ha Farm 2,100 AlfalfaL 0.5 Cotton 0.5 Wheat Maize 0.4 Barley (Fodder) 0.5

Type II AlfalfaL 1.25 Wheat 1.25 Sugar beet 1.25 Wheat 1.25 5 ha Farm 5,200 Maize 0.85 Maize 0.90

Type III Wheat 0.85 Tomato 00.30.83 Sugar beet 0.83 Cotton 0.83 Wheat 0.8 Maize 0.32 Berseem 0.83 Maize 0.3

Type IV 3,100 AlfalfaL 6.25 Wheat 6.25 Sugar beet 6.25 Wheat 6.25 25 ha Farre 3,100 aa Maize 4.25 Maize 0.45

crops. /L Each year 25% of the Alfalfa would be ploughed and enter the rotation of annual

December 1975 ANNEX 2 Table 3

KINGDOM OF MOROCCO

DOUKKALAIRRIGATION PROJECT

Agricultural Experimental Station Zemamrc

Buildinz~s DH

Office and Work Rooms (250m ) 162,500 StorageFarm Machineryand W5rk Shop (500 m2 ) 200,000 StorageFarm groducts (500 m) 250,000 Stable (500 m ) 250,000 Silos 6,000 3 Houses 240,000 8 Apartnents 280,000 Collective(Laborers) 195,000 Water Supply and Treatment 150,000 Diverse 66,500

Subtotal 1,800,000

Transport

3 VehiclesType "R 4" 36,000 1 VehicleType Jeep 50,000 1 VehicleType "R l6" 20,OOO l Truck 6 tons 60,000

Subtotal 166,000

ResearchEquipment 200,000

Animals 60,000

IncrementalStaff

1 A_riculturist(DH 32,000)A) 16,000 1 ResearchAssistant (DH 40,000)') 20,000 1 IrrigationController (DH 12,000)½) 6,000 i Mechanic (DH 12,000)!) 6,000 1 Field Officer (DH 12,000)1½) 6,000 1 Accountant(DH 12,000)l) 6,000

Subtotal 60,000

GitAND'2OTAL

December 1975 ANNEX 2 Table a

KINGDOM 0F MOROCCO

DOUKXALA IRRIGATIONPROJECT

ORMVADIncremental Staff Requirement

Individual Item Number Salary IE7year

Central Office ProfessionalEngineers 2 40,000 Junior Engineers 2 32,000 Technicians 3 25,000

CMV (3 New Centers)

Technicians 3 25,000 Extension Agents 12 20,000 Mechanics 3 20,000 Storekeepers 3 15,000 Secretaries 3 15,000 Bookkeepers 3 20,000

Artificial Insemination

Inseminators 3 20,000

Milk Collecting Centers

Directors 3 20,000

Subdivision (Zemamra)

Junior Engineer 1 32,000 Technician 1 25,000 Mechanic 1 20,000 Watermen 20 10,000

December 1975 KINGDO

DOUKKALAIRRIGATION PROJECT

Estimated Water Require ents

Itefla Area Units Net IrrigationRequirement- at Parcel (ha) Jan Feb Mar Aur hav June July Sep Oct Nov Dec Aknual

Wheat 6,360 ) 1,781 2,035 3,244 3,498 ------445 11,003 Cotton 1,360 ) - - - 340 666 1,224 2,339 2,298 1,741 - - Sugar beet - 8,608 2,900 ) 667 725 1,392 2,117 3,364 3,480 1,856 - - 116 174 290 14,181 Maize 3,970 ) ------1,509 4,923 6,709 5,637 - _ 18,778 Tomato 1,360 ) 10 - - 190 381 1,346. 2,026 2,217 - - - - - 6,160 Alfalfa 3,430 ) mth 617 652 1,338 2,504 4,390 4,871 5,900 6,105 4,871 2,675 1,063 549 35,535 Fodder Barley 320 ) 125 102 ------32 58 317 Bersee, 830 ) 324 266 - 266 946 739 374 266 3.181 Total Net at Parcel 3.514 3.780 69164 8.8O 9.766 11.601 13.821 13.592 14.2 9.167 1.643 1608 97.763 Net Demand /3 m3/ha 228 245 400 574 634 753 899 882 926 595 107 104 6,347

Gross Demand /3 m /ha 304 327 533 765 845 1,004 1,199 1,176 1,235 793 143 139 8,463

Gross Deand /4 l/s/ha .136 .162 .239 .354 .379 .465 .537 .527 .572 .355 .066 .062 Gross Demand at Headworks /5 l/s/ha .160 .191 .281 .416 .446 .547 .632 .620 .673 .418 .078 .073 For 15,400 ha Grogs Dmid at Headvorks 56Mm3/ onth 5.5 5.9 9.7 13.9 15.3 18.2 21.7 21.3 22.3 14.4 2.6 2.5 153.3

L1 Net IrrigationRequireent - Net Vater Requirement - Effective Rainfall.

12- - No crop during this » nth.

13 AJssUes a field efficiency of 75%.

L4 Assumas irrigation during 20 hours per day.

/ Assumes 15% conveyance loases and inatantaneoua d*nd baaed on 20 houri per day pi iig. j6 Assumes Im Fout reaervoir provideu storage during 4 hours of no-puaping par day.

December 1975 ANNEX 4 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

Land Tenure

1. All lands benefitting from the Project are private freehold and would be consolidated before construction of the irrigation and drainage networks. Land tenure changes to be implemented under the project are governed by the Land ConsolidationLaw of 1962 and the Agricultural Investment Code of 1969. The Land ConsolidationLaw provides a procedure for land registra- tion and consolidationof existing fragnentedholdings in areas delineated by MinisterialOrder, and subjects future subdivision of holdings created by consolidationto approval by a local commission. The Agricultural Invest- ment Code applies to areas decreed as "Zones of Development'within which the State may intervene to reorganizeland tenure through land consolidation,en- larging small non-viableholdings and changing of boundaries to ensure effective use of capital improvementssuch as irrigation facilitiesand drainage. In these "Zones of Development",division of land into units of legs than 5 ha is forbidden and tenure in collectives is limited to those individualswho held rights to land at the date of publicationof the law (July 25, 1969). Within a decreed Zone of Development,further transactionsare prohibited until reorganizationwithin the zone is completed. The code defines the degree to which the farmers within a "Zone of Development"shall participate in the investmentfor improvementof agriculture through a land betterment levy and charges for irrigationwater.

2. Land consolidationhas been completed on about 60% of the project area. Before land consolidationabout 60% of the plots were of less than 1 ha, 27% ranged between 1 and 5 ha and 4% between 5 and 10 ha, Only 3% of the plots were above 10 ha. A holding or plot corresponds to a unit of land and does not coincide with the concept of a farm unit. One farmer on average owns 1.4 holdings._ Land consolidationwould ioin scattered land and consequentlyreduce the number of holdings. Taking into account the results of land consolidationon 8,500 ha, future farm size distributionis expected to be as follows: ANNEX 4 Page 2

Farm Size Farm Units Area (ha) No. x ha %

0 - 2 1,370 43 1,960 13 2 - 5 1,130 35 4,850 31 5 - 10 440 14 3,850 25 10 - 20 124 4 1,490 10 Above 20 136 4 3,250 21

Total 3 200 100 15,400 100

ORMVAD has the technîcal staff and experience to complete the land consolidation program in the Zemamra Subdivision.

January 9, 1976 ANNEX5 Page 1

APPRAISAL OF

DOUKKALA IRRIGATIONPROJECT

KINGDOM OF MOROCCO

Animal Production

General

1. Livestockproduction in Morocco accounts for one third of the total value of agriculturalproduction. Total animal production includes about 3.4 million cattle, 16.0 million sheep, 7.0 million goats and 0.2 million camels. 0f the 3.4 million cattle, about 3.0 million consist of the local breed Brown Atlas; 0.05 million are cross-bredbetween Brown Atlas and Friesian; while European pure breeds, mainly Friesian cattle, account for about 57,000 heads, or about 1.5% of the total cattle production.

2. Three systems of livestock production can be identifiedin Morocco. The majority of productionoriginates from extensive grazing on 12.4 million ha of marginal land which is either collectivelyowned or state forest land. In addition, these animalsmay have access to supplementarygrazing on 3 to 4 million ha of crop stubble following the harvest of rainfed grains. The second system of livestockproduction is intensive dairy productionwhich depends almost completelyon purchased feed. It has developed around the outskirts of large urban centers. The third system exists on irrigatedperimeters and areas of adequate rainfall where both livestockand forage productionare carried out on the same farm. This system is envisaged for the livestockcompo- nent of the project.

3. At present, cattle productivity in the project area is low because of the following constraints: (a) low level of nutrition caused by inadequate supply of feedstuffsat reasonableprices; (b) low production potentialof local cows at a reasonable level of nutrition; and (c) low capacity and thin distributionof existing milk collection centers. The constraint imposed on production by the prevailingmanagerial skills is of less significanceand the measures proposed to solve the major problems of productionwould enhance better quality of farmers. Animal health is not a major problem and the control measures and practices are satisfactory.

4. The project would increase livestockproduction in the project area through the followingmeasures: (a) introducinggrain and fodder crops in the rotation and thus providing the basis for balanced rations; (b) improving local dairy cattle productivitythrough cross-breedingwith Friesian breed which are the most popular cattle breed in Morocco; and (c) increasing the capacity of ANNEX5 Page 2 existing milk collection centers and installing additional units within the project area. Cattle breeding would be accomplished through artificial insemination. The project would provide additional inseminators,which would be stationed in the project area and train selected farmers in insemination practices. Specialists of the Departmentof Animal Production of MARA would supervise the cross breeding program in order to maintain equilibrium between production potential and disease and parasite resistance.

5. Animal health is also the responsibilityof the Ministry of Agricul- ture and Agrarian Reform. This responsibilityis discharged through 10 regional offices in the major areas of production. The project area is adequately served through offices. The main diseases of cattle are brucellosis, septicemia, fasciola hepatica and piroplasmosis. Diseases of less incidence are tuberculosis, anthrax and blackleg. Free vaccinationis available against septicemia and blackleg.

Present and Future Livestock Production in the Project Area

6. The project area corresponds to the Zemamra subdivision. Beef fattening and milk production are traditional enterprises among farmers. Through provision of irrigation water and supporting services such as artificial insemination, veterinary services, marketing facilities and improved extension, the project would increase livestock production from the current low of about 2,500 tons of milk, 700 tons of beef (liveweight)and 800 heads of breeding heifers to about 18,000 tons of milk, 2,000 tons of beef (liveweight)and 1,500 heads of heifers with high milk production potential at full development. The dairy herd in the project area would increase to about 11,000 head.

7. Four different farm types have been analyzed (Annex 15). Feed availability on type I-2ha, type 2-5ha (4 crop rotation), and type 3-5ha (6 crop rotation) are shown in Table 2. Herd size and feed availabilitywas assumed five fold of type II on type IV (25 ha) farms. Herd developmentand production coefficientsfor representative2 ha farms and 5 ha farms are tabulated in Tables 1 and 3.

8. About 15% of farmers participatingin dairy production would receive medium term credit towards the purchase of cattle and constructionof stables (Annex 6). Labor would be supplied by the farm family. One man would be able to care for 8 animal units.

9. The project would provide 6 additional milk collection centers by 1978 to complement existing ones in the area and meet project needs. MARA manages a well staffed and equipped artificial inseminationlaboratory which would adequately serve the area. To make its services more accessible to farmers in the project area, the project would provide additional 3 inseminators and 5 vehicles. Slaughteringcapacity is adequate with two municipal slaughterhousesin El Jadida and Ezmour and 3 large rural slaughterhouses in Sidi Smail, Sidi Bennour, Zemamra. The central slaughterhousein Casablanca traditionallyreceives about 40% of its cattle from El Jadida Province. In addition excess capacity of the municipal slaughterhousein Rabat is estimated at about 25%. Details on marketing of livestockproduce are given in Annex 14.

January 9, 1976 KINGDOM OF MOROCCO

DOUKKALA IRRIGATION PRnJECT

Dairy Cattle - Herd Projection. Production Coefficients and Sales

(10 Farms-5 ha)

Before Project Years Followïng First Irrigation 0 1 2 3 4 5 6 7 8 9 10

Herd Composition

Breeding Cows 20 23 24 27 30 32 35 35 35 35 35 Calves 0-1 yr 12 14 16 18 21 22 25 25 25 25 25 Heifers 1-2 yrs 6 6 7 8 9 9 il il 12 12 13 Steers 1-2 yrs 6 5 7 8 8 8 10 12 12 13 12 /1 Total Animal Units 32 34 38 43 47 52 54 58 59 60 60

Sales

Culled Cows 0 2 2 4 5 5 7 7 7 7 7 Steers 1-2 yrs 6 4 7 8 8 10 9 12 12 12 12 Breeding Heifers 2 3 2 0 0 2 3 3 3 4 5 Milk (kg) 8,400 10,500 12,800 15,300 23,100 30,800 40,000 47,500 52,500 55,000 55,000

Mortality

Breeding Cows 1 0 0 1 1 1 1 1 1 1 1 In-calf Heifers O O O 0 1 0 0 0 1 0 0 Steers 1-2 yrs 0 1 0 0 0 0 1 0 0 1 0

Production Coefficients

Weaning Rate % 60 60 65 65 70 70 70 70 70 70 70 Adult Mortality 3 2 2 2 2 2 2 2 2 2 2 Cow Culling % O 10 10 15 15 17 20 20 20 20 20 Net Milk Production (kg) 700 800 800 850 1,100 1,400 1,600 1,900 2,100 2,200 2,200

/1 Excludes calves.

Decernber 197S MdwE 5£ Table 2

KINGDOMOF MO,ROCCO mOUKKALA:RIGAT ION PROJECT

Feed Availability

Without With Proiect Project Year

O 1 2 3 4 5 6 Feed Source…tons- ______------tons ------

FarynType I 2 ha

Whec,t Straw 1.' 2.0 2.0 1.9 1.8 1.7 1.5

Maize Straw 0.2 - - - 0.3 o.8 1.2

Bean Straw 0.2 - - - - -

Alfalfa /5 - 4.5 12.0 13.3 15.0 28.0 30.0

Fodder (Barley) /1 - - 1.6 3.4 5-4 5.7 6.o

Maize (Grain) 0.2 - - - 0.2 0,? 1.0

Farr Type II 5 ha

Sugar beet Tops - 5.3 11.1 14.6 15.4 16.3 16.9

Wheat Straw 3.C 4.0 4.4 4.8 5.2 7.0 7.,

lMaize Straw 0.r 4.5 4.7 4.6 4.6 4.1 5.3

"lfalfa /1 - 7.3 2C.0 22.5 40.0 68.8 75.0

Bean Straw 0.4 ------

Maize (Grain) 0.4 3.8 3.9 3.8 3.9 3.' 4.3

Farm Type III 5 ha 4

Sugar beet Tops - 5.3 5.6 11.7 12.3 10.7 11.2

Wheat Straw 3.0 6.0 6.6 4.8 5.2 4.7 5.0

Maize Straw 0.' 0.9 1.0 1.1 1.3 1.7 2.0

Alfalfa 5. - 7.5 20.0 22.5 25.0 45.7 49.8

Bean Straw 0.4 - - - -

Berseem /1 - - - - 10.5 19.1 20.8

Maize (Grain) 0.4 0.8 0.9 1.0 1.1 1.5 1.6

/1 Green matter December 1975 KINGDONOF MOROCCO

DOtUKALAIHRIGATION PROJErT

Dairv Cattle - Herd Projection, Production Coefficients and Sales

(00 Farms-2 ha)

B fore Item Prolect Years Folloviog First Irrization O 2 3 4 6 7 9 10

Herd Composition

Breeding Cows 10 10 10 11 12 14 16 17 18 19 20 Calves 0-l yr 6 6 6 7 8 9 il 12 13 13 14 Helfers 1-2 yrs 3 3 3 2 4 4 5 5 6 7 6 Steers 1-2 yrs 3 3 3 3 3 4 4 6 5 6 7

Total Animal Units /1 16 16 16 16 19 22 25 28 29 32 33

Sales

Culled Covs O 1 * 1 2 2 3 3 4 4 4 Steers 1-2 yrs 3 3 3 3 3 4 4 6 4 6 7 Breeding Heifers 3 1 1 0 0 0 0 1 1 1 2 M1lk (kg) 4,200 4,500 4,800 5,720 8,580 12,740 17,920 22,610 26,460 29,260 30,800

Mortality

Breeding Covs O I O O O O 1 O O I ° In-calf Heifers O O O 1 0 0 0 0 0 0 ° Steers 1-2 yrs O O 0 O O O O 0 1 0

Production Coefficients

Weaning Rate Z 60 60 60 65 65 65 70 70 70 70 70 Adult Mortality % 3 2 2 2 2 2 2 2 2 2 2 Cov Culling % O 10 10 10 15 15 17 20 20 20 20 Net Milk Production (kg) 700 750 800 850 1,100 1,400 1,600 1,900 2,100 2,200 2,200

/1 Excludes calves.

December 1975 ANNEX 6 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

AgriculturalCredit

1. The most important source of organized credit to the agricultural sector is the National AgriculturalCredit Bank (CNCA) established in 1961. Loans through CNCA are disbursed either directly through the various Regional Banks (CRCA) and Local Banks (CLCA), or indirectly through the_intermediation of the various DevelopmentOffices of the MARA (ORMVA). Other sources of credit are loans from commercialbanks and suppliers' credits, but access to such credit tends to be easier to larger farmers. Their amount is unknown. Equally important means of financing are credit from merchants and landowners, but again amounts and conditions are unknown.

2. Farmers with fiscal incomes exceeding DH 3,000 per annum are eligible for credit through CRCA. The CLCA finances the needs of small farmers with incomes of at least DH 100 per annum but not exceeding DR 3,000 per annum. Credit through DevelopmentOffices is limited, regardless of fiscal income, to farmers participatingin the integratedcropping operationsorganized and managed by ORMVA. Such credit is therefore limited to crop loans for the cultivationof sugar beet, cotton and hybrid maize.

3. The yardstick used to divide farmers into those eligible for CLCA credit and those for CRCA is based on fiscal income.1/ In line with current practice, credit requirements have been calculated on the basis of fiscal rather than actual farm incomes. Credit needs thus calculatedwould be adequate to meet project needs, taking into account special arrangementsfor industrial crops (para 2).

4. Incremental income requirements of CLCA and CRCA have been calculated on the basis of the DH 3,000 per annum fiscal income dividing line. Land distribution data has been combined with the fiscal income norms in the initial and terminal years of the project, furnishing a basis for dividing the-land area into that proportion that will be served by CLCAand the balance that will be served by CRCA.

A. Caisse Regional de Credit Agricole

5. CRCA advances short and medium credit to individualfarmers, groups of farmers, collectivesand agriculturalenterprises. Credit facilitiesare

1/ Fiscal income norme in the project area are DH 300/ha for land under traditionalirrigation, DH 450/ha for land under modern irrigation, DH 80-130/ha for dry land. Olives and industrial tomatoes command a much higher fiscal income, DH 500/ha and DH 1,000/ha respectively. ANNEX 6 Page 2

available for productivepurposes, processing, stocks and marketing. The terms and norms for loans are revised annually and published by the CNCAin the "Regime des Prets des Caisses Regionales de Credit Agricole".

6. The main features of the current regulationsare as follows:

(i) Loan requests are prepared, often with the assistance of CRCA staff and submitted by the applicant, together with supporting documentationto the CRCA.

(ii) Short and medium term loans not exceeding DH 5,000 individually and less than DH 15,000 in total can be extended without a survey of the farmer and his holdings.

(iii) Loans not exceeding DH 60,000 (DH 30,000 in the case of credit for land improvement)are generally handled by the regional credit committee;requests for larger loans are forwarded to the CNCA Board of Directors.

(iv) The type and amount of security required by the CRCA is at the discretionof the Director. Generally, chattel mortgages and the signature of guarantorsare consideredadequate, but in certain cases land titles must be deposited.

(v) All loans are subject to (i) an annual commissionof 4% (exceptfor loans to harvest 2%); and (ii) a guarantee comission of 2% in the amount of paid at the time of disbursements,which i8 paid to a Guarantee Fund.

(vi) Short term credit is limited to a maximum of one year at a rate of 6% for cereals, 8Z for sugar beet, cotton and 8.5% for fatteningoperations (Table 1). Norms indicating the maximum amounts that can be extended for various purposes are set out in Table 2.

(vii) Medium term credit is available for a maximum of 10 years. Interest rates vary between 7% and 8.5% per annum depending on the type of loan and beneficiary (Table 1). Maximum norms for various purposes are outlined in Table 2.

7. The project is adequately served through CRCAin El Jadida which i the oldest and largest of the CRCA's in Morocco and a recently established CRCA in Sidi Bennour. The Jadida branch has been experiencinga very rapid rate of growth in terms of the volume of loans and its clientele. Due to dynamic management, the activities of the CRCAhave been extended into sectors which had traditionallyrelied on private sources of credit, e.g. market gardening.

8. Incrementalshort term credit needs would amount to DH 1.6 million at full development. The increase is mainly due to a shift of clientele from CLCA to CRCA as land is brought under irrigation and fiscal incomes increase. ANNEX 6 Page 3

Currently 85% of area qualify for credit through CLCA; at full development this would fall to around 45%. Medium term credit needs will increase by DH 2.6 million at full development. The CRCA in Jadida is too far to serve the project area.

B. Caisse Locale de Credit Agricole

9. The minimum fiscal income for eligibility for CLCA credit is between DH 100-3,000p.a. Short-term credit is available for up to a maximum of one year at 4% per annum. Medium term credit is limited to farmers with fiscal income exceeding DH 300 and is extended for up to a maximum of five years at 6.5% per annum. Depending on the fiscal income of the farmer a maximum of 3 loans can be extended in one year, with annual disbursementof loans limited to a maximum of 35% of the borrower's fiscal income. The maximum norms for each purpose are outlined in Table 1.

10. Security is generally in the form of the signature of a guarantor combined with a survey of the farmer's holding. All loans are subject to a 2% tax on the amount of the loans which become part of an insurance fund for the CLCA.

11. There are two CLCA in Sidi Bennour and Zemamra. Both have been very active, notably the branch at Zemamra. Recovery rates have been very high (99% in Zemamra).

12. Incremental short term requirements would be small because (a) de- creased area in wheat, (b) increased area of industrial crops participating in the integrated cropping operations of ORMVAD, and (c) shift of CLCA's clientele to CRCA as fiscal incomes exceed DH 3,000 (para 9). Medium credit needs will, however, increase substantially as farmers expand their livestock activities and would amount to DH 1.3 million.

C. Office de Mise en Valeur

13. Loans to farmers participatingin the integrated cropping operations organized and managed by ORMVAD are advanced through the respective Office. Such advances are generally in the form of materials, e.g. fertilizerand seeds, services (e.g. tractors),and fixed cash payments. Crops included in this program are sugar beet, cotton and hybrid maize. Loans for sugar beet and cotton are recovered at the processing factories; farmers being paid for their produce after ORMVAD fhasdeducted the farmers' outstanding debts. Recovery rates are very high for sugar beet since farmers have no option but to sell their crop to the local processing plants. In the case of cotton, difficultieshave ex- isted. Farmers have had the opportunity and found it convenient to avoid selling to the local ginning companies because of long delays in receiving payments. The procedure has been revised and recovery rates have improved. Recovery rates for maize are poor; however, credit extended through the Office for this purpose is expected to be a temporary measure aimed at en- couraging farmers to become familiarizedwith production of maize. ANNEX 6 Page 4

14. In the project area a growing proportionof credit requirementswould be financed through ORMVAD, reflectingthe growing importanceof sugar beet and cotton. AdditionalDH 4.3 million in credit would be required. This is a substantial increase (49%) over ORMVAD's current level of lending.

D. Conclusion

15. The changes in cropping patterns at full developmentresult in a large shift towards credit provision through ORMVAD. Short term incremental credit needs would be relatively small for CLCA and CRCA. Credit requirements through CLCA and CRCA would increase mostly because of increased need for medium term credit resulting from the increased importanceof livestock activities in both projects.

16. Incrementalcredit requirementswould be important. There would be an important shift of clientele from the CLCA to the CRCA. However, since the activitiesof the CRCA are already very extensive, the incrementalincrease would be fairly small in relation to the size of its operation. Inspite of this shift, incrementalneeds of credit through CLCA would be important. How- ever, this should pose no special difficulties. ORMVAD would double its scale of operations. Incrementalcredit requirementsin relation to total CNCA operations would be very small (4%) and CNCA has sufficient funds to meet project needs.

17. Table 4 summarizes future incrementalcredit needs with the project and indicates their importancein relation to 1973/74 lending.

January 9, 1976 ANNEX D Table 1

KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Rates of Interest on Agricultural Credit

Source Interest Maximum Rate /1 Duration

CRCA: Fiscal Income DH 3,000 per annum

Short Term Cereals 6.0% 1 year Sugar beet, Cotton 8.0% 1 year Fattening Operations 8.5% 1 year

Medium Term Agrarian Reform Groups and Cooperatives 7.0% 10 years Standard Rate 8.5% 10 years

CLCA: Fiscal Income DR 100-3,000 per annum

Short Term 4.0% 1 year

ORMVA: (Integrated Cropping Operations)

Short Term Cereals 6.o% 1 year Sugar beet, Cotton 8.0% 1 year

Commercial Banks

Short Term 8.0-10.0%

Medium Term 12.0%

/1 Nominal

December 1975 ANNEX 6 Table 2

KINGDOM OF MOROCCO

DOUKKALAIRRIGATION PROJECT

Credit Availability Norms 1974/75

(DH/ha)

Item CRCA CLCA ORMVAD

Small Term Credit

Sugar beet 900 Cotton - - 800 Wheat: Traditional Varieties 250 35(0 High Yielding Varieties 350 35( Maize: Local Varieties 350 35() Hybrids 500 350 Industrial Tomatoes 1,300 90( Vegetables 1,100 900) Berseem 250 30( Lucerne - A 900 Beans 300 300

CRCA CLCA Norm Years Norm Years

Medium Term Credit

Lucerne DH 1,300 3-4 - A

Agricultural Equipment 70% 3-6 80% 2

Irrigation and Drainage 70% 6 80% 5

Construction DH 50-150/m 2 7-10 DH 50/m 2 5

Cattle: Imported 70% 4-5 80% 3-5 (DH 3,000 max.)

Local 70% 4-5 b0% 3-5 (DH 2,200 max.)

L Only available on medium term.

December 1975 ANNEXb Table 3

KINGDOMOF MOROCCO

DOUEKALAIRRIGATION PROJECT

Loans Advanced by CRCA and CLCA

% of total Item 1972/73 j973/7J~ CRCA, CLCA otAt Amount Loans ------DH Million ------

CRCA: (El Jadida)

Short 9,700 16,100 Medium 7,800 11,200

Total 17,500 27,300 13%

CLCA: (Sidi Bennour/Zemamra)

Short 78 322 Medium i,ih6 3,530

Total 1,224 3,852 5%

Grand Total Doukkala 18,724 31,152 11%

Deceaber, 1975 ANNEX6 Table 4

KINGDONOF HOROCCO

DOUKKALAIRRIGATION PROJECT

Incremental Credit Requirements

Increase over 1973/7X Region Short Term Medium Term Total Lending ------(DH'OOO) ------

CLCA 24.o 1,263.0 1,287.0 33%

CRCA 1,603.0 2,587.0 4,19o.o 17%

ORMVAD 4,26o.o - 4,26o.o 49%

Total 5 887 0 3,850.0 9,737.0

December 1975 ANNEX 7 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

Project Description

A. Selection and Formulation of the Project

1. Development of Land and Water Resources of the Oum Er R'bia Basin has been studied on various occasions sin'ce 1926. Major irrigation schemes in the basin are carried out in the Tadla and Doukkala regions. About 100,000 ha are now irrigated in the Tadla (31,000 ha in the Beni Amir and 69,000 ha in the Beni Moussa) and 26,000 ha in the lower Doukkala (see Map 11853 R). The oldest scheme in the basin is the Beni Amir Perimeter, which was built in the 1930s and now needs to be rehabilitated. Construction of the other two peri- meters (Beni Moussa and Lower Doukkala) started in the 1950s and irrigation and drainage works are generally in a satisfactory condition. Scarcity of water resources prompted government to prepare a "Water Resources Masterplan" for the basin with a view to optimize the water allocation to the three major consumers: agriculture, industrial and domestic water supply, and power. The latest plan was prepared in 1973/74 by consultants (Scet International) with the assistance of the FAO/IBRD Cooperative Program CP. The plan indicated that the proposed project is the least cost development alternative to meet the GoverLments Third Plan (1973-77) objectives of achieving (i) a balanced regional development; (ii) an increase in production of basic food (sugar, wheat, dairy products, etc); (iii) a reduction of the rural underemployment; and (iv) an improvement of the living conditions of the rural population. The proposed project would fully utilize all available water resources and existing infrastructures before additional storage reservoirs are built on the main stem of the river at Sidi Cheho and Dechra el Oued Sites (Map 11853R). Govern- ment has already requested Bank assistance fianncing construction of the Sidi Cheho dam and for studying additional development in the Tadla area, which would be possible by construction of the Dechra el Oued dam. The Bank intends to appraise the Sidi Cheho Project in the near future, while the feasibility study of the Dechra el Oued dam would be included under the proposed project.

2. The Lower Doukkala scheme adequately serves 26,000 ha. The Govern- ment requested Bank participation in financing the development of additional 32,000 ha. However the intensive irrigation development of the entire area would require additional water supply from the projected multipurpose Sidi Cheho reservoir. An analysis based on giving less water over the entire area and using less intensive cropping pattern showed a marginal economic rate of return. The project was therefore reduced to the Zemamra subdivision (15.400 ha) which can be irrigated with the available water supply and where land ANNEX 7 Page 2

consolidationhas been completedin 60% of the area. Future extension of the Lower Doukkala area bringing the total to 32,000 ha would be possible if additional water from Sidi Cheho becomes available. The possibilitywould also exist of irrigatingland in the upper Doukkala after completion of the Sidi Cheho dam. However, this would require feasibilitystudies including in particularan assessmentof the impact of such a project on the Sidi Cheho operations and benefits.

B. Descptionofthe Projec

3. The project would irrigate the four sectors of Zemamra subdivision. totalling 15,400 ha. Each sector would be served by its own pumping station. Distributionof sectors and implementationschedule would be as follows:

Perimeter Net Area (ha) First Water

zi 4,150 November 1977 Zo 5,900 November 1978 Z2 2,900 November 1979 Z3 2,460 November 1979

4. Crops to be grown would be sugar beet, cotton, industrialtomatoes. wheat and fodder for milk and beef production.

5. Land consolidationhas been completed in 8,500 ha and is well advanced in the remainingarea. Land improvementwould consist of subsoiling about 4,000 ha to rip induratedlayers of calcareousmaterial.

6. The main canal vould be enlarged over 29 km to accommodateproject demand. Automaticgates in the main canal would regulatewater levels in the differentcanal sections. A new feeder canal would supply the Zo pumping station (Map 11855R). Four pumping stations with a combined installed capaclty of 8,320 kW would suppiy water from the main canal into an undergroundnetwork and hydrants, each covering 16 ha served by mobile equipment. Power for the pumping station would be supplied through extension (50 km) of a 60 kV line, which presently terminates in Sidi Bennour. A 60 kV/22 kV substation would be constructed at the new terminal near Zemamra and about 50 km of 22 kV lines would serve the four pumping stations.

7. Existing hard surface roads would be reinforced to accommodatethe expected increase in heavy traffic during the sugar beet harvest season. About 21 km of new hard top road and 64 km of gravel roads would be constructedin addition to farm roads. About 50 km of telephone lines would be constructed. connectingpumping stations and CMV's with the subdivisionoffices in Zemamra. Buildings and other facilities for the project authority include the subdivision offices, workshop and housings in Zemamra, and three DevelopmentCenters (CMV's). The existing agriculturalresearch facilitiesat Jemie Sahim would be improved through provisionof buildings, animals and equipment. Six new milk collection centerswould improve bulk marketingof milk. Supporting services,extension, and credit would be reinforced. ANNEX 7 Page 3

8. The rural environmentwould be promoted by provision of basic village infrastructure. A total of 7 new centers would receive roads, public lighting, domestic water supply and schools (Table 1).

9. ORMVAD would be responsible for the irrigation development of the subproject. Other institutionsinvolved would be the Ministry of Public Works through its Road Division and ONE, the Ministry of Education and the Ministry of Public Health.

Descriptionof Proiect Works

10. IrrigationNetwork

(a) Land Consolidationand Preparation. Land consolidationhas been completedon 8,500 ha and is presently underway in the remaining area. Land preparationwould include subsoiling to break hard calcareous crusts and destoning on about 4,000 ha mostly located in Zo sector. Farm roads (76 m/ha) with storm water collector ditehes and vind breaks (106 m/ha) would complete land preparation works.

(b) Canals. The existing main canal, constructedin 1959, has earth embankmentsover most of its length and lining over 5.8 km where it passes through permeable strata. The main canal starts at Km 17 at the outlet of the pressure tunnel connecting it to the headworks. Widening and repair of the canal is completed up to Km 77. For works on next 12.3 km, contracts for civil works have been let and the project would only include supply and placing of automatic gates for regulation with downstream control. The project would further provide civil works including gates for the remaining 16.4 km serving the Zemamra subdivision and the 6 km feeder canal supplying the Zo pumping station.

No. of Q l/s H kW Sector Punps per Pump m per Pump

Zo 8 470 55 355 Zi 6 470 60 400 Z2 6 340 56 286 Z3 5 340 54 280

Water would be pumped through a rotating filter to avoid floating debris from entering the system. On-line elevated storage tanks would regulate fluctuationsin pressure and demand. Automated controls would activate pumps according to fluctuationsin demand. ANNEX7 Page 4

(d) Pipe DistributionSystem. A buried distributionnetwork would consist of 1,400 mm to 60 mm diameter pipes, concrete for the larger diameters and asbestos cement for the smaller. The average length of the pipe would be 27 m/ha. Each sector would have its individualdistribution system. Pipes would run parallel to farm roads permitting easy access to hydrants. Typical layout would be as follows: 4 m wide farm roads would divide into two blocks a 15.6 ha irrigationunit to be served by one hydrant. This hydrant, equipped with two fixed discharge outlets, would therefore serve two separate blocks of 7.8 ha on each side of the road. Each outlet would serve a continuous block with a width along the road of 294 m and since hydrants would be placed in the middle of a block the distance between hydrants would also be 294 m. The distance between hydrants measured perpen- dicular to the road would be 556 m.

(e) Mobile Equipment. An 18 x 18 m sprinkler pattern was selected as being the most economic. The net area of one irrigation parcel (1/2 block) of 144 x 270 m was derived on the basis of allowable pressure losses and standard pipe lengths of 6 m. The mobile equipment would consist of a 252 m central 4" feeder line connected to a hydrant outiet, with take-offs at 54 m intervals. Three-inch moving laterals of 153 m would operate simultaneouslyon each aide of the feeder line. Each lateral would carry 8 sprinklerswith an individual discharge of 0.54 1/sec and nozzle pressure of 3 atmos- pheres. During the peak month, irrigationwould take place during 20 hours per day (2 positions at 10 hours) with an intensity of 6 mm/hour selected because of the low infiltrationcapacity of the heavier soils. The irrigationinterval would be 7.5 days.

(f) Power Supply. Power supply would be provided by about 50 km of 60 kV line connecting the present terminal at Sidi Bennour with a new substationnear Zemamra. From the substation, about 50 km of 22 kV lines would connect to the pumping stations.

(g) Drainage. No natural surface drainage exists in the project area because the Doukkala Plain is separated from the ocean by a 30-50 km wide band of fossil dunes superimposed on karstic jurassic and cretaceous layers. Storm water collects in karstic sinkholes called "dayaa" in which surface vater is observed for a couple of days if 90 to 100 mm of rainfall occur in a 15-day period. This happens about once every 12 years. The storm water flows underground towards the ocean in the direction of Safi. Since it is impossible to cross the dune zone, drainage would be provided by guiding large open collector drains (520,000m 3 excavation) towards two very large "dayas" behind the first row of dunes (see Map 11855). Storm discharge cominR from the south would be passed underneath the canal into the main drains. Design criteria for storm run-off correspond to probable peak flows once in 10 years. For the irrigation area drains were designed for a specific drainage of 0.62 1/sec/ha. ANNEX 7 Page 5

11., Infrastructure

(a) Roads. A major national highway, RP8, from Casablanca to Agadir via Safi passes through the area. About 108 km of asphalt roads in the project area would have to be reinforced and widened to 6 m to accommodate the increase in heavy traffic during the sugar beet harvest period; 21 km of new asphalt road and 64 km of 4 m wide gravel roads would be provided (Table 2). Criteria 1/ for the establishment of different types of roads would be:

Estimated Aricultural Traffic Type of Road

More than 20,000 tons/year 6 m asphalt Between 6,000 and 20,000 tons/year 4 m gravel Less than 6,000 tons/year 4 m dirt

(b) Telephones. About 50 km of telephone lines would be provided to link the pumping stations and CMV's with the subdivision headquartersin Zemamra.

(c) Buidings for thePrject Authority. New subdivisional headquarters would be constructed in Zemamra. Three CMV's and six milk collection centers would be constructed of a type described in Table 1. The existing facilities of the agricultural experi- ment station would be extended through provision of additional buildings and equipment.

(d) Village Centers. The presently scattered population could only be provided with some amenities if they could be grouped into village centers. The project would provide for the creation of seven such centers with paved roads, electricity,treated public water supply and schools as indicated in Table 1.

January 9, 1976

1/ These criteria have heen established after a detailed study under the Sebou II Project (Loan 1018). ANNEX7 Table 1

KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Typical Cost of CMV, Milk Collecting Center and Village Center

Item Cost (DH)

CMV

Office 200 m2 80,000 Warehouse 400 m2 14o,ooo Four Houses 100 m2 320,000 Asphalt PavementYL 1i,000m2 55,000 Water Connectionto Existing Supply 30,000 Electric Cormectionto Existing Power Line 25,000

Total for 1 CMV 650o.ooo

Milk CollectingCenter

Building 24 m2 19,000 Two Milk Tanks @ 1,000 Liters 4ho,ooo Transformer(22 kV/220 V) and Wiring 14,000 Piping, Heating and Cooling 17,000 Water Connection 5,000

Total 1 Center 95,000

Village Center (UREF)

Water Supply includingTreatment and Elevated Storage 300,000 ElectricitySupply Including 2 km of 22 kV line 174,000 Pavement 2,400 m2 100,000 School (5 Classes) 45o,ooo

Total 1 Village Center 1i02h.o00

/1 To protect against damage from concentratedmovement of trucks, tractors and cattle and to prevent inconveniencefrom excessive dust.

December 1975 ANNEX 7 Table 2

KINGDOMOF MOROCCO DOUXKALAIRRIGATION PROJECT

Road ImprovementProgram

Reinforcement Enlargement of Existing Road Number Length (New Pavement) Pavement km m m

RP 8 29 1 6 RS 123 15 1 -

RS 123 13 3 3

RS 126 7 3 3

CT 1305 10 3 3 CT 1351-1307 25 3 3

CT 1334 4 3 3

CT 1352 5 3 3

New Asphalt Road 21 6

New Gravel Roads 64 4

December 1975 AM'FX 8 KINGDOM OF MOROCCO DOUKKALA IRRIGATION PROJECT Constructionand Activity Schedule

1975 1976 1977 1978 1979

Land Consolidationr

Main Canal _

PumpingStations l

Power Supply __=

LandPreparation - DistributionNetwork -

DrainageNetwork

MobileEquipment - -

ProjectBuildings -

AsphaltRoads -

Village Infrastructure _

BilharziaProgram

TadlaExtension Study

VagetableStudy

Consultants Mi

Accumulatedhectares underirrigation 4,150 10,050 15,410 SectorNo. Z1 zo Z2 + Z3

WorId Bank-15243(R) KINCD011 Or O NOMC9C

00UXELA IIlUliCT10N 6803607

Ceat Estimas t

tec local o83m Total Local Forer i Total e_ ------oo------o O------N.t-k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Civil -ork.

Cnal. 8,982 4,835 13,817 2,315 1,246 3,561 35 p.P i.g StatIons Civil O_rk £2 1,921 1,035 2,956 495 267 762 35 Wat r Toer 5,200 2,800, 8,000 1,340 722 2,062 35 Und-rgrouod Pipe. 49,495 26,652 76,147 12,756 6,869 19,625 35 Lard Preparatior 3,220 3,220 6,440 830 830 1,660 50 Fani Ronds 1,967 1,9b6 3,935 507 507 1,014 50 Widbre.ks 2,054 0 2,054 529 0 529 0 -r.iele N0etrk 5,990 5,990 11,980 1,544 1,544 3,088 50 Projeot Ovildiege 469 253 722 121 65 186 35

Subtotal 79,298 46,753 126,051 20,437 12,050 32,487 Frite Centin8ency 22.383 13.549 35,932 5.769 3.492 9.261

Total 101,681 60,302 161,983 26,206 15,542 41,748 37

Eouip enrt

Eleriro-aechaeîool /3 4,604 10,742 15,346 1,187 2,769 3,956 70 Morbile £2prkîer. 7,314 17,066 24,380 1,885 4,398 6,283 70 Hydr-ees I 2,431 5,673 8,104 627 1,462 2,089 70 Operarioo ard EqinieereinEquipeent3i 740 1.728 2.468 191 445 636 70

Sobtotel 15,089 35,209 50,298 3,890 9,074 12,964 Prire Contir.enîy 2.970 6.929 9.899 765 1.786 2.551

Total 18.059 42,138 60,197 4,655 10,660 15,515 70

Poyr Nseteerk 4,168 6,252 10,420 1,074 1,611 2,685 60 Prire Coetingency 187 279 466 48 72 120

Trial 4,355 6,531 10,886 1,122 1.683 2,805 60

Slbtotl Irrigotire Net-erk 98,555 88,214 186,769 25,401 22,735 48.136 Prire Cecig .ge..y 25.540 20,757 46.297 6,582 5.350 11.932

T-ol Nrrigai1oSeierrkt 124,095 108,971 233,066 31,983 28,085 60,068 45

Aariorltoral HMe«raeni

CHV ard Re.earch Stetior Buildigs 2,705 1,458 4,163 697 376 1,073 35 ilk Crllertig Carter- 222 411 633 57 106 163 65

Sobtiral 2,927 1,869 4,796 754 482 1,236 Prire Cortiige..y 491 370 861 127 95 222

Total 3,418 2,239 5,657 881 577 1,458 40

E,îiepelnt aed Teirlea L3 1,022 2,386 3,408 263 615 878 70 Frire Centing-ncy 205 478 683 53 123 176

Trtal 1,227 2,864 4,091 316 738 1,054 70

Aerirolt.r.l Credit 9,749 0 9,749 2,513 O 2,513 0 Prire Contingency 3.339 0 3.339 861 0 861

Total 13,088 0 13,088 3,374 0 3,374 0 infrastrcture

Ronde 13,072 13,073 26,145 3,369 3,369 6,738 50 Teler r, enireioe 67 100 167 17 26 43 60

Subtotal 13,139 13,173 26,312 3,386 3,395 6,781 Prire Cortigenry 3.062 3,062 6.124 789 789 1,578

Total 16,201 16,235 32,436 4,175 4,184 8,359 50

Tillase irfraairoriore

Citer Supply £2 1,515 816 2,331 390 210 600 35 tl-t.ririîy 540 811 1,351 139 209 348 60 Pave,e-t 388 389 777 100 100 200 50 Sîhoole 2,275 1,225 3,500 586 316 902 35

SObtita1 4,718 3,241 7,959 1,215 835 2,050 Prire Coriiogerîy 1J747 1,208 2.955 450 309 _759

To-1î 6.465 4,449 10,914 1,665 1,144 2,809 41

Ad.ii.t-rati.o

irveroreni Engineering 5,082 0 5,082 1,310 0 1,310 0 trial1 Cor anes 798 O 798 206 O 206 0 Eegi-eerirg C ea.ltota 1,712 4,873 6,585 441 1.256 1,697 74 Tadla eea.ibility Study 416 1,184 1,600 107 305 412 74 Bilhereio Control Prograg 806 1,104 1,910 202 285 492 73 Trgte.ble M.keneirg Sitdy 277 788 1.065 71 203 274 74

sobttal 9,091 7,949 17,040 2,342 2,049 4,391 PriCeeiirgeoi 0 2,059 1,785 3,844 531 460 991 Total 11,150 9,734 20.884 2,873 2.509 5,382 47

Total In-1dia PFrite Cortieaenîiea 175,644 144,492 320,136 45,267 37,237 82,504 45

PFvalîrlCerrineeeeie 21,780 15,332 37.112 5,613 3.952 9,565 41 Frite Contiener 5,657 3,505 9.162 1,458 903 2,361

Tot-l Phycial Centinge..ilee 27,437 18,837 46,274 7,071 4,855 11,926 41

GRAN0 TOTAL 203,081 163.329 366 410 52.338 45

Trtai Coviinoeriroe 63,880 46,497 110,377 16,464 11,581 28,445 42

trialPrire Cooiîîg-nciie 42,100 31,165 73.265 10,851 8,029 18,880 43

/I Tiice aniiies due to rrording. 77 Fion nirg7 by USAIT 3 PFort fitoriog by EISAID, Decenbet 1975 UINDO OP N771050 ANNEX10

DO8XIALAIORIGATION PR8JECT

lobadolo o2 Exfondttorns

Total 1973 1976 1977 1978 1979 Foaeig. Iton Fboriso TOta oso1 n Total Foralmn Total Forsion Total For-lso Total Fortion Total. Eoho s ------Da O(O ------7.

rrilastioo nùtoonk

Civil Worko

Canais 4 835 13,817 1,275 3,644 2,285 6,529 1,275 3,644 * - - - 35 Purotinslattiono Civil Wo-ks L 1,035 2,956 - - 305 870 365 1,043 365 1,043 - - 35 brrr Tog rs 2,800 8,000 - - 1,400 4,000 1,400 4,000 - - - -35 Todornoood Pipe. 26,652 76,147 - - 3,589 10,253 5,997 17,134 9,737 27,820 7,329 20,940 35 Ltnd Prep-ootioo 3,220 6,440 - - 644 1,288 2,174 4,347 402 805 - - 50 Pati Roodo 1,968 3,935 - - 530 1,060 903 1,806 535 1,069 - - 50 windbr-aks 0 2,054 - - O 554 0 786 0 714 - - O oroinaoo Neiwonk 5,990 11,980 ------2,271 4.541 3,719 7,439 50 trojootOoiîdiags 253 722 - - 253 722 - - - . - - - 35

Sobootal 46,753 126,051 1.275 3,644 9,006 25,276 12,114 32,760 13,310 35,992 11,048 25,379 trios Cootingooty 13.849 35.932 0 0 630 1.769 2.520 6.814 4.693 12.705 5.701 14,644

Total 60,302 161,983 1,275 3,644 9,636 27,045 14,634 39,574 10,000 48,697 16,749 43,023 37

Eîltro-,-oohsoiaol L 10,742 15 346 - - 2,995 4,278 3,787 5,410 2,160 3,086 IbOO 2,572 70 Mobil Sp;iniklor LÀ 17,066 24,30 - - - 4,784 6,720 6 689 9,556 5,673 8,104 70 Hydroats /2 5 673 8,104 - - 1,528 2,183 2,172 3,103 1,973 2,818 - - 70 oporati.o ood Hainonos Eqoipqtni L 1.728 2.468 - - 1.398 1.997 330 471 - - - - 70

Sobtotal 35,209 50,298 - - 5,921 8,458 10,993 15,704 10,022 15,460 7,473 10,676 Prioe Contingrrny 6.929 9.899 - - 296 423 1.583 2,261 2.354 3.649 2.496 5.566

Total 42,138 60,197 - - 6,217 8,881 12,576 17,965 13,376 19,109 9,969 14,242 70

Po-r NOorork 6,252 10,420 1,810 3,016 3,828 6,380 614 1.024 - - - - 60 Ptioo Cootiogeocy 279 466 0 0 191 319 88 147

Total 6,531 10,866 1,810 3,016 4,019 6,699 702 1,171 - - - - 60

Sobtotal Irrigation etùvork 88,214 186,769 3,085 6,660 18,755 40,114 23,721 49,6U8 24,132 51,452 18,521 39,055 Prioo Coooîogo..y 20.757 46,297 0 O 1.117 2.511 4,191 9,222 7.232 16.354 8,197 10.210

Total Irriatioo Netrk 158,971 233,066 3,085 6,660 19,872 42,625 27,912 58,710 31,384 67,806 26,718 57,265 45 AOOlooltoOoI 0900.aooo

CttV sod Roaoroh Statioo Ooilditgo 1,458 4,163 - - 855 2,442 350 999 253 722 - - 35 M1ik Collsting Crotors 411 633 -- - _ 137 211 137 211 137 211 65

Sobtotal 1,869 4,796 - - 855 2,442 487 1,210 390 933 137 211 Price Cootiogoooy 370 861 . - 60 171 101 252 138 329 71 109

Totol 2,239 5,657 - - 915 2,613 588 1,462 528 1,262 208 320 40

tqulp=ent soi Vohiolos LZ 2,386 3,408 - - - 923 1,318 1,463 2,090 - - 70 Prioe Cootoogooop 478 683 - - - - 133 190 345 493

Total 2,864 4.091 - - _ _ 1,056 1,5O8 1,808 2,583 - - 70

Aarîoolîonal tondit O 9,749 - _ 8 557 0 3,064 0 3,064 0 3,064 0 Prre- Continge=qy o 3,339 - - O 39 O 637 0 1,082 0 I.501

Total 0 13,088 - - O 596 0 3,701 0 4,146 0 4,645 0 ofrastrvqturs

Roodo 13,073 26,145 - - 2,773 5,550 5,330 10,660 3,330 6,660 1 638 3,275 50 Tslecooooolnotloo 100 167 - - 100 167 - - _- - - 60 Soltotol 13,173 26,312 - - 2,875 5,717 5,330 10,660 3.330 6,660 1,636 3,275 Polos Contingenoy 3.062 6.124 - - 201 400 1.L08 2.217 1.175 2.351 578 L.156

Total 16,235 32,436 . . 3,076 6,117 6,438 12,877 4,505 9,011 2,216 4,431 VillîsoIotoootoootoro

Wat-r SOoply 816 2.331 -- - 233 666 233 666 550 1,000 35 Electrioity 811 1,351 - - - 232 386 232 386 347 579 60 Pa nent 389 777 - - - - 111 222 111 222 167 333 50 Sohoola 1.225 3.500 - - - - 350 1.000 525 1.0 350 1,000 35 Sb-total 3,241 7,959 - - _ 9926 2,274 1,101 2,774 1,214 2,912 Polar Cootingrooy 1.208 2,955 _ - _ _ 193 473 389 979 626 1,503

Total 4,449 10,914 - - - - 1,119 2,747 1,490 3,753 1,80 4,415 41 Ad.nnisorattoo

Govr,nt En0ias5riog O 3,082 - 974 0 1,027 0 1,027 0 1,027 0 1,027 0 Looat Coosltants O 798 - - O 266 0 266 0 266 - - Engin oriag Conoiîtsnts 4,873 6,585 273 369 1,150 1,554 1,150 1,554 1,150 1,554 1,150 1,554 74 Toila toaibili ty Stody 1,184 1,6800 - 592 888 392 880 - -- -7 bilISsoia tontrol trgo_ 1,184 1.910 - 522 920 194 338 194 330 73 Vostahbls Makhtiog Stody 788 1.065 - - 7bS 1,065 * - - - - - 74

Sobt-ral 7,949 17,040 273 1,343 3,052 5,632 1,936 3,977 1,344 3,177 1,344 2,911 Pniît Cootiogsnoy 1.785 3.844 0 0 214 394 403 827 474 1.121 694 1.502

Totol 9,734 20,884 273 1,343 3,266 6,026 2,339 4,804 1,818 4,298 2,038 4,413 47

Total Includtng Prios Contina nci- 144,492 320,136 3.358 8,003 27.129 57,977 39,452 85.809 41,533 92,859 33.020 75,489 45

tlyviaal Cootinosoioo 15,332 37,112 413 1,050 3,343 7,428 4,372 11,840 4,150 9,613 3,054 7,181 trias Costtoasnoy 3.505 9,162 0 0 215 520 829 1.943 1.321 3,188 1,140 3,511

Total Phystoal Conting.n_ijs 18,837 46,274 413 1,0» 3,538 7,948 5,201 13,783 5,471 12,801 4,194 10,692

GRAN0TOTAL 163.329 366,410 3,771 903 3687 65_ 44653 9992 47.04 105,660 3214 45

Total Ooaoiogsooioo 46,497 113,377 413 1,050 5,150 11,463 11,330 27,601 15,244 35,510 14,360 34,753 Total Prios contiog-snios 31,165 73,265 0 0 1,807 4,035 6,958 15,761 11,094 25,897 11,306 27,572 tl FiPtoniog by USAID 72 Poro Fin-in8 b USA0D

Drorob.r 1975 ANNEX11 Table 1

KINGDOMOF MOROCCO

DOUKKALAIRRDGATION PROJECT

Procurement: Civil Works and Equipnent (Procured through ICB)

Item US$ million

First Phase Enlargement Main Canal 2.5

Second Phase EnlargementMain Canal 0 5 Construction Feeder Canal 0.8

First Phase Buried Pipe Network 7.9

Second Phase Buried Pipe Network 12.8

Collector Drains and Farm Roads 5.7

Land Preparation 3.1

Electro-MechanicalEquipment for One Pumping Station 0.8

Transformer for One Pumping Station 0.4

Four High Storage Reservoirs 2.3

Power Lines and One Substation 2.8 Rehabilitationand Construction of Classified Roads 8.4

4E.0

December 1975 ANNEX 11 Table 2

KINGDOM OF MOROCCO

DOUKKALA IRRIGATION PROJECT

Machinery and Vehicles to be Procured

Type Number Unit Cost Total Cost (DH) (DH'OO)

0peration and Maintenance (Subdivision and Headguarters)

Graders /1 2 50(),000 1,000 Hydraulic Excavator/L 1 500,000 500 Telescopic Crane (Truck Mlounted)L! 1 300,000 300 Tractor with Tank Wagon.t-' 2 60,000 120 4-Wheel Drive Vehicles 5 50,000 250 Small Cars 5 12,000 60 Car 1 15,000 1S Light Motorcycles 20 1,400 28 Workshop Equipment 100,000 100

Total Operation and Maintenance Equipment 2,373

CMV's

Light Crawler Tractors/L 6 200,000 1,200 Small Cars 9 12,000 108 4-Wheel Drive Vebicle 3 50,000 150 Wheel TractorsLL 18 45,000 dlO Light Motorcycles 30 1,400 42 Agricultural Equipment 24 15,000 560

Total Equipment for 3 CMV's 2,670

Artificial Insemination

Small Cars 5 12,000 f e

Total Artificial Insemination 60

Research Station

Truck, 6 tons 1 60,000 60 4-Wheel Drive Vehicle 1 50,000 50 Small Cars 3 12,000 36 Car 1 15,000 15 Experimental Equipment 386,0oo 386

Total Research Station 547

GRAND TOTAL 52650

,'1 Financed by USAID.

December 1975 ANNEX ll Table 3

KINGDOM OF HOROCCO

DOUKKALAIRRIGATION PROJECT

Items Financed by USAID

USAID USAID Item Total Cost Financing Financing (DH'OOO) %S million)

Electro-mechanicalEquipment for 3 Pumping Stations 11i,o68 70 2.0

Mobile Sprinkler Equipment 24,380 70 4.4

Hydrants 8,1o4 70 1.5

Operation and Maintenance Equipment 1,997 70 0.3

CMV Equipment 2,090 70 0.4

Civil Works for 4 Pumping Stations 2,956 75 o.6

Village Water Supply 2,331 75 0.4

Total Basic Cost 52,926 9.6

Physical Contingencies 5,558 1.0

Price Contingencies 13 ,074 2.4

TOTAL USAID FINANCING 71,558 13.0

December 1975 ANNEX 12

INGIDCMOF MOROCCO

DOUKKALAIRRI3ATION PROJECT

Disbursements of Bank Loan

IBRD Fiscal Year Cumulative Disbursements -andQuarter at End of Quarter (US$ million)

1976

September30, 1975 o December31, 1975 0 March 31, 1976 0 June 30, 1976 0.5

1977 September 30, 1976 1.0 December31, 1976 2.0 March 31, 1977 3.0 June 30, 1977 4.0

1978 September30, 1977 5.0 December31, 1977 6.0 March 31, 1978 7.0 June 30, 1978 8.0

1979

September 30, 1978 9.0 December31, 1978 11.0 March 31, 1979 13.0 June 30, 1979 15.(

1980

September 30,1979 17.() December31, 1979 19.0 March 31, 1980 21.0 June 30, 1980 23.0

1981

September30, 1980 26.0 December31, 1980 29.0 March 31, 1981 30.0

December 1975 ANNEX13 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOM OF MOROCCO

Terms of Reference Consultants

A. Dechra el Oued Feasibility PjfLZ

1. Government considers to construct a multipurpose dam on the Oum Er R'Bia at Dechra el Oued. Preliminary investigations of foundations and hydrology have been conductedby the Water Resources Division of MTPC.

2. Terms of Reference for the consultantswould be:

General

(a) Determine feasibility of constructing a dam at Dechra el Oued for any combination of the following purposes:

(i) generation of electric power; (ii) supply of domestic and industrial water; (iii) supply of irrigationwater; (iv) flood control.

(b) Compare costs and benefits of alternative solutions to each of the functions of the dam and determine whether the dam provides the least cost solution.

(c) In case the Dechra el Oued dam provides the optimum combination of net benefits, provide an equitable allocation of costs to its various purposes and optimal timing of construction.

Specific Terms

(a) Review geotechnical reports on foundation conditions.

(b) Prepare a preliminary design of the dam accurate enough for cost estimating purposes.

(d) Draft reservoir operating guidelines after establishing prior- ities among possible conflicting requirements between the various purposes. ANNEX13 Page 2

(e) Estimate the rate of siltation and useful life of the proposed reservoir, including data obtained through actual measurement of siltation in other reservoirs in the Oum Er R'Bia catchment.

(f) Consider benefits from the Dechra el Oued dam in the frame- work of the Oum Er R'Bia masterplan and of the major infrastructure schemes established and under construction.

(g) Evaluate quantitative and qualitative data obtained from new test wells and pumping tests and the recently completed Beni Amir groundwater model, to conclude groundwater potential for irrigation.

(h) Evaluate costs of conveying irrigation water in view of limited capacity of the siphon in the Beni Amir main canal.

(i) Review medium and long term national power requirements and determine whether seasonal fluctuations in available power from the Dechra el Oued dam will fit these requirements.

(j) Review medium and long term industrial and domestic vater demands taking into account planned industrial expansion along the coast south of Casablanca.

B. Design and Supervision of Construction

3. To reinforce ORMVAD's engineering staff, a firm of consulting engineers would be charged with overall technical responsibilityfor project design and supervisionof construction. The consultantswould be present throughout the entire constructionperiod. Starting their work in October 1975, a total of 21.25 man years would be involved. The following type of personnel would be required:

1 Irrigation engineer 1 Electrical engineer 1 Chief constructionengineer 1 Senior technician pipe installation 1 Senior technical and civil construction

Terms of Reference for the engineering consultants would be to:

(a) prepare final design;

(b) prepare technical specificationsand contract documents;

(d) prepare constructiondrawings; ANNEX 13 Page 3

(e) check layout of works, approve contractor'swork schedule, verify work performed each month and certify payments due;

(f) prepare final design of electro-mechanical equipment, high storage reservoirs, pressure activated switchgear, overload protection; testing, adjustment and start-up of installed equipment; specification of manufacturers' warranty and suppliers' after sales service;

(g) assist in procurement procedures under international competitive bidding for relevant equipment such as mobile sprinkler equipment; and

(h) assist ORMVAD in start-up of the central workshop and training of maintenance personnel; prepare regular maintenance schedules.

January 9, 1976 ANNEX 13 Table 1

KINGDOIMOF MOROCCO

DOUKKALA IRRIGATIONPROJECT

Foreign Consultants and Studies

Man/months Unit Rate Total (US$/month) (US$)

Foreign EngineeringConsultants in Project Headguarters

Irrigation Engineer 51 7,300 371,000 Chief Construction Engineer 51 7,000 357,000 ElectricalEngineer 51 7,000 357,000 Senior TechnicianPipe Installation 51 6,000 306,000 Senior TechnicianCivil Construction 51 6,000 306,000 1,697,000

Dechra el Oued Study Civil Engineer 14 7,400 104,000 Geohydrologist 10 7,000 70,000 Electrical Engineer 10 7,000 70,000 Agronomist 12 7,000 84,000 Economist 12 7,000 84,000 412,000 VegetableMarketing Study

Marketing Specialist 8 8,000 64,000 Horticulturist 6 7,000 42,000 Processing Specialist 6 7,000 42,000 Extension Specialist 6 7,000 42,000 Economist 6 7,000 42,000 Agronomist 6 7,000 42,000 274,000

December 1975 ANNEX 14 Page 1

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOM OF MOROCCO

Marketing

General

1. Commoditiesproduced under the project offer no marketing difficulties. The pattern of productionand marketing at full developmentwould of fer two importantchanges: (a) a shift towards increasedproduction of industrial crops and vegetables,and (b) increasedproduction of milk. The increased productionof cereals, sugar beet and milk would be almed at reducing the country's current dependenceon imported produce, while productionof industrial tomatoes and cotton vill be primarily aimed at the export market.

Cereals

2. Moroccan trade statisticsreflect importantannual fluctuationsdue to climatic factors and a growing cereal deficit resulting from a rapid growth cf population and a relatively slow growing agricultural sector. The trend is quite marked and shown below:

All Cereals 1947/8-1956/7 1957/8-1966/7 1966/7-1969/70 (tons/annum)

Exports 514,000 181,000 79,000 Imports 60,000 317,000 561,000

Imports as % of Exports 12% 175% 1145%

3. Morocco is self sufficientin hard wheat but imported 968,000 tons of soft wheat in 1973/74 to supplementthe domestic consumptionof 2.8 million tons (Table 1). In recent years maize deficit has been increasing;in 1973/74, 32,000 tons out of a domestic consumptionof 420,000 tons was imported. Projectionsmade by Cereals Trade Office (ONICL)anticipate a wheat deficit of more than 1 million tons with self sufficiency in maize production for 1980. The incrementalproduction of wheat and maize at full development is summarizedin Table 2. Total increaseswould be small in relation to total domestic consumptionand would contributeto a reduced reliance on imported cereals.

4. The state sets support prices for wheat and maize. The minimum price for soft wheat is currently DU/ton 600, for hard wheat, DH/ton 630, and for maize DH/ton 450. Farmers are free to sell to the local market. During harvestingtime prices drop below interventionlevels, and farmers ANNEX14 Page 2

prefer to sell to the Government'ssupported cereals agency (SCAM). A survey conducted by ORMVAD shows last agriculturalcampaign free market prices up to 50% above the interventionlevel. Therefore a financial price of DHIton 700 for wheat (weightedaverage of hard and soft wheat) and DH/ton 550 for maize have been used. Economic prices have been calculatedon the bas4s of IBRD projected prices for wheat and maize in 1980, expressed in constant 1975 dollars and amount to DH/ton 700 and DH/ton 524 for wheat and maize respectively.

Sget

5. Despite recent increases in domestic productionof sugar beet, Morocco imports increasinglylarger amounts of sugar to meet domestic needs. In 1973/74 about 50% of the domestic consumptionof processed sugar were imported (Table 1). Government'sprojections based on expected per capita consumptionof 32 kgs per annum, indicate a national consumption of about 800,000-850,000tons of sugar by 1990. The increase in production in both perimeterswould account for about 6% of the 1974 consumption level and lesa than 3% of the expected consumptionlevel in 1990. No marketing difficulties are anticipated on the national level.

6. The existing sugar factory in Sidi Bennour is currently expanding its capacity of 2,700 ton/day to 4,000 ton/day by 1977 (Table 3). Additional capacity would be required by 1982 (Table 4). Government'splans include a factory in the area and plant would be justified as part of the second phase project in the Thnine Rharbia perimeter.

7. Farmgate prices are fixed bv the governmentand vary with suzar content of the beet: DH/t 57 for a sugar content of 11% and D1/t 150 for 24%. The price for an average 17% concentrationis DH/t 99.6. Since farmers have no alternativebut to sell to local sugar plants government prices have been used for the financial analysis.

8. Economic prices have been calculatedon the basis of IBRD projections, allowine for transport and processing costs. The resulting economic price for sugar beet would be DH/t 140.

Cotton

9. Cotton productionwill consist exclusivelvof long staDle cotton for export.

10. After a record harvest of 29,936 tons in 1965 total Moroccan cotton production declined in the late 1960's and gradually recovered in recent vears. This decline was due to growing competition from sugar beet. irreg- ularity in pavments and inadequateparasite control. It is forecastedthat for the current vear some 25,000 to 28,000 tons of seed cotton would be produced. It is estimated that programs for irrigationinfrastructure (Tadla, Gharb, noukkala), increased government incentives (higher prices and better pavment systeirs)and inclusionof cotton in the rotation as part of the sugar developmentplan. would rise seed cotton production to a total of 55,000 tons in 1985. Of this about 60% would be for the domestic industrv. ANNEX14 Page 3 il. Cotton is exclusivelymarketed by the Moroccan Marketing Company for AgriculturalProducts (COMAPRA). COMAPRA was establishedin 1962 as a limited liability corporationwith the state as a majoritv stockholder. It has responsibilityfor the purchasing, transportation,warehousing, ginninR and processing of raw cotton. Raw cotton is delivered to COMAPRA managed mills, where loans outstandingto the farmer as part of ORMVAD's integrated cropping scheme are deducted (Annex 6). Late paynent often forced the farmer to sell on the local market at a lower price. The Governmenthas improved procedures,producers are paid upon delivery to the factorywith debts deducted.

12. The GovernmentExport Office (OOE) has monopoly over export of cotton. Total productionof seed cotton in 1973 was estimated at 18,800 tons of which only 7% in the Doukkala (Table 5). Exports in 1973 were 7,800 tons of cotton lint (Table 5).

13. Prices for long staple cotton are more stable than for short staple. With the rapid decline in world prices for short staple cotton, the premium on long staple has increased from a historic level of around 70% to over 140%. Price of long staple are dependent on decisions of the two main producer coun- tries, Egypt and Sudan. It is expected the historic relationshipbetween short and long staple will be restored. Economic prices used in project analysis are based on IBRD projections for Mexican short and adjusted for a 70% premium.

14. Actual farmgate prices are fixed bv the governmentdepending on quality and varv from US$387 per ton to US$493 per ton of seed cotton.

15. The increase in production is substantial. However existing processing facilitiesof 5,000 tons per year are adequate. Cotton production in the already irrigatedareas would increase from 1,300 tons to 2,500 tons in 1985, and incrementalproduction in the project area would be 2.000 tons of seed cotton.

Industrial Tomatoes

16. In 1974 the equivalentof approximatelv110,000 tons of fresh tomatoes were processed in Morocco of which 17,000 tons equivalentwas consumed locally (Table 6). The project would increase productionof industrialtomatoes by 54,400 tons. Currently only a small and outdated processingplant exists in El Jadida, and a further plant with a 20,000 tons fresh tomatoes capacity is under constructionin Azemour. Private entrepreneurshave expressed interest to the Governmentand the Bank in setting up a tomato processingplant. Credit for establishingprocessing industriesare available from BNDE. Project production would be transformed into tomato paste and exported. Current Moroccan exports represent about 2 and 3 percent of the total Western European and North American consurmption respectively and a neg- ligiblepercentage of the estimatedworld production of over 1.5 million tons. Market prospects are good. Italv has traditionally been the biggest supplier of tomato paste in the Euronean market, followed bv Portugal. There are inherent weaknesses in the industrv in botlh cotintries Italv is facing, ANNEX 14 Page 4

difficultieswith rising costs of labor and raw material while Portugal has been forced to curtail the area devoted to tomato productionbecause of over- cultivationand increasinglabor problems. SimilarlyUSA has reduced the area cultivatedfor industrialtomatoes. Demand for tomato paste has been growing. Given the proximity to the European market and its ties with France, Morocco would be in a position to take advantage of the expected growth and structural change in the world market. Given the fairly small market share of Morocco and its already developed export trade, no difficultiesin marketing of paste are foreseen.

17. Tomato paste prices increased from about US$350 per ton in 1972 to US$700 per ton in the current year. Financial and economic prices are assumed to be equal and have been calculated on the basis of current market prices for tomato paste adjusted for transportationand processing costs.

Livestock Produce

18. In 1973 Morocco produced about 540 million liters of cow milk (Table 7). Of these onlv 12% reached the processing factories, a further 8% was marketed in the traditionalway, either through the souk or street milk vendors, and the remainderconsumed at the source of production. In the same year Morocco imported 190 million liters of milk equivalent in dairy products. Projections,for the rural and urban sectors (Table 7) indicate a growing deficit in dairy produce unless the annual growth in production reaches 8% for the period 1973-1980 and 5% for 1973-85. This is substantialIn comparison to past performanceof the sector.

19. An importantelement in the country's dependence on milk imports has been the inability to offer the producer a reliable outlet for his production throughoutthe year. Only recently and under Government'sguidance farmers grouped into cooperativeto operate milk collecting centers. Such milk collecting centers have been extremely successful in the Doukkala where large quantities of milk previously consumed locally are now marketed.

20. The number, capacity, and degree of utilization of the major dairy factories show that inspite of relatively low levels of overall utilization skimmed milk was thrown away during the period of maximum production at a rate of several thousand liters a day. Currently the bulk of milk received by dairies is sold pasteurized. There is a need to shift towards products with a long shelf life. The establishmentof a plant in Sidi Bennour special- izing in the production of milk powder will be helpful (para 23).

21. The price of milk to the producer is about DH/0.95 ranging from a low of DH/1 0.8 in periods of high production to DH/1 1.05 in the period of lowest production. This price includes a variable governmentsubsidy, the non-subsidizedprice being DH/1 0.67. ANNEX 14 Page 5

22. In Doukkalaproduction of presentlyirrigated areas was 14,000l/d in 1974, and is expectedto increaseby 7-8% p.a. An averageof 13,000l/d was collectedthrough 12 existingmilk collectingcenters. With a totalcapa- city of 37,000l/d. (Table8) Further8 centerswould becomeoperational in the currentyear increasingtotal capacityto 60,0001/d. In addition12 centerswould be provided,through the project,for the Zemamrasector. The projectwould increaseproduction by 49,000l/d at full development.Thus totalproduction in the Doukkalaregion is expectedto reach about 145,000 l/d by the year 2,000 1/.

23. In the past all milk has been transported to Casablanca for processing. A decision has been taken to construct a dairv plant at Sidi Bennour wtth a capacityof 70,0001/d. Contractshave been awarded. With the expansion of the CentraleLaitiere Casablanca and the constructionof the plant at Sidi Bennourmarketing facilities would be adequate.

24. Productionof meat is expectedto increaseby 2,700 tons (live weight)in Doukkalarepresenting lesa than one percentof domesticsupply of beef. Marketchannels are throughtraditional souks as well as wholesaleand retailbutchers. Municipalslaughterhouses in Casablancaand in the project area are sufficientfor projectneeds. Economicprices have been calculated by adjusting IBRD projected 1980 prices for beef. Financial and economic prices are assumed to be equal.

Other

25. Productionof beans is expectedto declinewith the increasedarea devotedto the cultivationof more profitablecrops. Beans have been consumed locally. The declinein productionwill not pose difficultiessince it is likelyto be a naturalshift in consumption from beans towardsmore expensive and nutritious food as incomes rise in the area.

26. Table 10 summarizes economic and financial prices used in prolect analysis.

January9, 1976

1/ Existingirrigated area, projectarea, and adjacentrainfed area. KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

National Production and Consumption of Major Crops 1971 -1974

Crop 1971-1972 1972-1973 1973-1974 Production Imports Exports Production Import Exports Production Imports Exports ------______'000O tons) --______

Wheat 2,161 574 - 1,57h 469 _ 1,853 968

Ma ze 368 10 - 217 20 - 390 33

Suvar beet '1 1 ,677 210 1 ,293 231 - 1 ,944 269

/1 Sugar

Decemnber 1975 ANNEX14 Table 2

KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Incremental Crop Production

% of National Crop Production Consumption tons

.Wheat 9,480 1%

Maize 8,725 2%

Sugar beet 130,500 4%

Cotton 2,040 11%

Milk 17,890 2% meat (liveweight) 2,680 3%

Olives _ _ ,/ Tomatoes 54,400 49%

Beans

/1 Domestic production.

December 1975 KINGDOM OF PlOd.OCCO

DOUKKALA IRRIGATION PRO

ProcessingCapacity and Utilization

Without Project With Project No. of Processing No. of Processing Plants Capacity Production Plants Capacity Production ------tons------tons------

Doukkala

Cotton 1 5,000 1,240 1 5,000 4,500

Sugar beet 1 243,000 243,000 2 700,000 418,000

Milk _ _ - 1 70,000 1/d

Industrial Tomatoes - _ 3 90,000 87,700

cr1

Dec ember 197$ ANNA 14 Table h

KINGDOMOF MOROCCO

DOUKKAMIRRIGATION PROJECT

Sugar Beet Production and Processing Capacity in Doukkala

Existing Year Project Area Irrigated Area 'Total …------tons ------__------

Production 1975 261,000 261,000

1976 279,000 279,000 1977 288,000 288,000

1978 5,500 288,000 293,500

1979 20,900 288,000 308,900

1980 28,700 288,000 316,700

1981 58,440 288,000 346,44o 1982 78,800 288,000 366,800

1983 98,400 288,000 386,400

1984 116,100 288,000 404,100 1985 124,600 288,000 412,600

1986 126,000 288,000 414,000

1987 130,000 288,000 418,000 1988 130,500 288,000 418,500

Existing Capacity 243,000

Excpansion in Process 117,000

Total Future Capacity 360:000

December 1975 KINGDOM OF MOiIOCCO

fLOUALA. IRiIGATIONPROJECT

Moroccan Production of Seed Cotton and Exports of Lint Cotton 1971-1974

Production World (seed) orts Production- Year Tadla Doukkala Other Total (Lint) (Lint) ------tons ------~------

1971 19,155 1,544 3,421 24,120 4,525 155,214

1972 21,826 1,290 3,242 26,358 7,710 181,878

1973 14,362 988 2,468 17,818 7,818 182,312

1974 13,500 1,242 4,101 18,843 n.a.

/1 Extra long staple 1-3/8t" and over, cotton advisory board.

December 1975 Ig ANIEX14 Table 6

KINGDOMOF MOROCCO

DOUKKALkIRRIGATION PROJECT

Production and Exports of Tomato Products 1974

Tomato Tons US$/ton Esuivalent

Exports

Tomato Juice 448 137 750 Preserve 1,4;8 376 1,750 Concentrate 8,378 756 52,800

Powder 2,013 2,916 38,000 Total of Exports 12,267 93,300

Total DomesticConsumption 5,233 17,000

GRANDTOTAL PRODUCTION 17.500 110,300

December 1975 DOUKKALA IRRIGATION PROJECT

Pro.iected National ConSumption and Production of Dairy Produce 1973-1985

1973 1980 1985 Item Rural Urban Total i Rural Urban Total Rural Urban Total -('------=-7t000 tonsof Freshi-Mla Equiv-IEnt) ------

Population 10.3 6.0 16.3 11.6 8.6 20.2 12.6 10.9 23.5 Milk Fresh 256.o 42.4 298.4 290.0 290.0 283.0 - 283.0 Pasteurized 66.0 66.0 - 125.0 125.0 - 201.0 201.0 Concentrate _ 38.4 38.4 - - _ - - Powder - 12.2 12.2 61.o 152.0 216.0 160.0 206.0 366.0 Cheese 24.7 24.0 48.7 34.0 42.0 76.0 43.0 61.o 104.0 Butter 179.5 126.0 305.5 2h7.0 220-0 467.0 310.0 322-0 632.0

Total Demand 460.2 309.0 769.2 635.-0 539.0 1,174.0 796.0 790.0 1,586.0'

Total Supply 53B.0 -

Imports 190.0

% Imported 25.0

/1 Figuresfor total demandhave been calculatedon the basis of consumptionnorms and do not correspond exactlywith actualdemardin 1973, which equalled528 millionliters. /2 Calculatedon the basis of the followingnorms: kg/year/head Rural Urban H Milk Per F4.9capita consumption growth - 2.9%p.a. CD Cheese 2.4 4.0 Growthin milk production = 3.9% p.a. Butter 0.0 1.0

December1975 KINGDQMOF MOROCCO

DOUKKALAIRRItQTION PROJECT

Cooperative Milk Collection Centers in the Doukkala Perimeter 1970-1974

Total Collection Peak Collection/ No. of Capacity Year Cooperatives '000/lit lit/day lit/day lit/day

1970 6 2,200,000 6,027 9,300 21,300

1971 7 2,100,000 5,753 8,900 25,700

1972 10 3,o4o,696 8,331 12,900 31,900

1973 10 4,111,864 11,265 17,500 31,900

1974 12 4,703,857 12,887 20,000 37,300 1975/2

/1 Estimates.

/2 Not available.

December 1975

CD b œCt ANNEX1à Tabl-e

KINGDOQOF MOROCCO

DOUKIALAIRRIGATION PROJECT

Economicand FinancialPrices

Item Financial Economic -(H/ton)------Wheat Hardl 630 ) 675 Soft 600)

Sugar beet/2 96 iho

Cotton (Seed) 2,100 2,460

Maize 450 497

Lucerne 350 350

IndustrialTomatoes 120 116

Miilk 950 810

Meat (Liveweight) 3,500 4,454

Vegetables Niora 300 300

Beans 900 900

Olives i,o44 1,044 TransportCosts

Zemamra/Casablanca 32.2 DH/ton

NOTE: Conversionsare made at a rate of DH 3.88 US$1.

/1 Based on IBRD ConmodityForecasts.

/2 17% Sugar content.

December1975 ANNEX 15

KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Farm Budgets

1. Four models of farm budgets are analyzed in Table 1. Tables 2 to 5 give detailed informationon different farm types. Farm types 1, 2, 3, and 4 represent 15%, 35%, 30% and 20% respectively of the project area. Net farm income at full developmentwould increase by about 275%, 371%, 322%, and 513% in type 1, 2, 3, and 4 farms. Average per capita income would raise from $109 to $485. Average yields and production costs are shown in Table 6.

2. The functional life of the first sprinkler equipment is estimated at 7 years, replacementas necessary and maintenanceof the equipment is estimated at about DH 130 per hectare, of which about DH 95 would be depre- ciation and the remainder routine repair.

3. Interest or working capital has been calculated under the current credit regulationswhich require each borrower to contribute from his own resources 30% to 70% towards the total working capital. A typical farmer is assumed to contribute from his own resources 50% of his working capital. There- fore, interest has been computed at 6% for one year for 50% of the estimated working capital for each model and situation (with and without project).

4. Hired labor is valued at DH 10 per day, tax deductions are made on the basis of the existing regulations. The first DH 1,400 are exempted. A tax of 8% is applied to the fiscal income within income bracket DH 1,401-6000, 12% to the fiscal income in the DH 12,000-24,000bracket (and 15% if the fiscal income is between DH 2,400 and 48,000.

5. Water charges where computed a5cording to prevailing legislation. (paras 5.21 and 5.22) and amount to DH/m 0.147. In addition 25 ha farms would pay a betterment levv of DHf/ha1,5no, over a period of 20 years (first 3 years grace) at 4% interest.

January 9, 1976 ANIX 15 KINGDOMOF MOROCCO Table 1

DOUlhLA IRRIGATION TROJECT

Su*.1ry Fara Budgets

Item Doukkabl Tye - 2 ha TyeI-ha III - 5 ha TYDeIV -25ha With Without With Without ith Without With Without Project Project Projet ProJect Project Project ProJect Project ------DR------

Gross Value of Production

Crop Production

Wheat 1,050 1,050 5,250 2,100 3,570 2,100 26,2s0 lo,6oo Maize 1 - 88 - 220 - 220 - 1,000 Maize 2 525 - 2,409 - 897 - 12,031 - Sugar beet - - 5,400 - 3,586 - 27,000 Cctton 1,575 - - - 2,625 - -- Tomatoes 2,320 - - - 3,851 - Beans - 180 - 360 - 360 - 1,800 Vegetables (Niora) Alfalfa - - L - _ _f Berseem - -- Barley Fodder

Subtotal 5,470 1,318 13,059 2,680 14,529 2,680 65,281 13,400

Livestock Production

Milk 2,926 6,604 4,400 33,020 Culled Cows 539 1,239 980 6,195 Heifer 616 2,022 1,600 10,010 Steers 673 2,654 2,100 13,270

Subtotal ,4,754 778 12,519 1,353 9,080 1,353 62,49s 6,76s

Total Gross Value of Production 10 224 2L096 258 2 609 4.033 127776 20165

Variable Cost of Production

Physical Inputs 1,774 307 3,850 648 4,044 648 19,253 4,246 Mechanical Operations 367 3114 979 650 944 6so 4,892 3,241 Hired Labor - - 498 - 1,022 - 20,925 4,188 Interest on Working Capital 66 10 160 -- 180 39 1.352 350

Total Variable Cost of Production 2,207 631 5s487 1 6,190 1.337 46 422 12,025

Fixed Costs and Replacement

Maintenance anc Replacement Mobile Sprinkler Equipsment 260 - 6so 650 3,250 Maintenance Livestock Building 20 10 30 15 30 15 120 60 Water Charge 2,499 6,248 - 4,998 3,305

Total Fixed Costs and Replacemsent 2,779 10 6,928 15 5,678 15 60

Farm Income Before Tax 5,236 1,455 13,163 2,937 11,741 2,937 44,974 8,080

Taxes on Fars Income 264 128 538 2s6 515 2s6 3,373 1,298

FarmIncome After Tax 4,972 1.327 12 625 2681 6 2,681 41,60 6,7ff2

Increase in Farm Income After Tax 275% 371% 322% 513%

/l Fed to animal.

December 1975 KINGDOM OF MOROCCO

DOUKKALAIRRIGATION PROJECT

Farm Budget - Farm Type I - 2 ha

Gross Production Net Item Area Production Production Value Cost Production Value (ha) (ton) (DH) (DH)Ll (DH)

Without Project

Wheat 1.5 1.5 1,050 510 Maize 1 0.2 0.16 88 56 Beans 0.2 0.16 180 55 Livestock - - 778 -

Total 1.9 2,096 621 1,475

With Project

Wheat 0.5 1.5 1,050 345 Maize 2 0.4 1.0 525 200 Cotton 0.5 0.75 1,575 428 Tomatoes 0.5 20.0 2,320 625 Alfalfa 0.5 30.0 12 /3 250 Barley Fodder 0.3 6.0 /2 3 48 Milk - 3.08 2,926 - Culled Cows - - /4 539 - Heifers - - 7 616 - Steers (1-2 years) - -/6 673 - Breeding fees - - - 67 Minerals - 50 Veterinarv - 100

Total 2.7 10.22 2,113 7,741

/l Including hired labor only. c Z /2 Green matter. -Z LI Fed to livestock. j One cow every 2-3 years. b 15 One every 5 years. /6 One every 3 years.

December 1975 KINGDOM OF MOROCCO

DOUKKALAIRRIGATION PROJECT

Farm Budget - Farm Type II- 5 ha

Gross Production Net Item Area Production ProductionValue Cost Production Value (ha) (ton) (DH) (DH) /1 (DR)

Without Pro1ect

Wheat 3.0 3.0 2,100 1,020 Maize 1 0.5 0.4 220 140 Beans 0.5 0.4 360 138 Livestock -- 1.353 -

Total 4.0 4 033 1 298 2,735

With Project

Wheat 2.5 7.5 5,250 1,800 Maize 2 1.75 4.38 2,409 998 Sugar beet 1.25 56,2 5,400 1,275 Alfalfa /2 1.25 75.0 _ - /3 775 Milk 6.952 6,604 - Culled Cows - ,4 1,239 _ Heifers - /5 2,022 - Steers - /6 2,654 - BreedingFees _ 148 Minerals 110 Veterinary 221

Total 6.75 25,578 5.327 20,251

/l Includinghired labor only. /2 Green matter. 75 Fed to livestock. /4 0.8 cows per year. /5 0.6 heifers per year. /6 1.5 steers per year.

December 1975 KINGDQOMO MORQDCO

DOUNKALAIRRIGATION PROJECT

Farm Budget- Farm Type III - 5 ha

Net Item Gross Production Area Production Production Value Cost Production Value (ha) (ton) (DH) (DH) /L (Dit)

Without Project

Wheat 3.0 3.0 2,100 1,020 Maize 1 0.5 0.4 220 140 Beans 0.5 0.4 360 138 Livestock - - 1,353 2,735 Total 4.0 4,033 1,298

With Pro iect

Wheat 1.70 5.10 3,570 1,275 Maize 2 0.65 1.63 897 390 Sugar beet 0.83 37.35 3,586 946 Cotton 0.83 1.25 2,625 843 Tomatoes 0.83 33.20 3,851 1,286 Alfalfa 0.83 49.80 /2 - ]3 606 Berseem 0.83 20.75 72 - /3 282 Milk - 4.63 A 4,400 - Culled Cows - - 980 Heifers - - L. 1,600 Steers - /6 2,100 Breeding Fees - - - 118 Minerals - - 88 Veterinary - - - 176

17,599 Total 6.50 23,609 6,010

/1 Including hired labor. /2 Green matter. /3 Fed to livestock. 4 0.7 coWs per year. /5 Oneheifer every two years. /6 1.7 steers every year.

December 1975 KINGDOMOF MOROCCO

DOUKKALAIRRIGATION PROJECT

Farm Budget - Farm Type IV - 25 ha

Item Gross Production Net Area Ptoductiou Production Value Cost Production Value (ha) (ton) (DU) (DH) /1

Without Prolect

Wheat 15.0 .0 10,500 8,550 Maize 1 2.5 2.0 1,100 1,000 Beans 2.5 2.0 1,800 1,125 Livestock - - 6,765 -

Total 20.0 20,165 10,675 9,490

With Proiect

Whast 12.50 37.50 26,250 12,750 Maise 2 8.75 21.90 12,031 8,925 Sugar beet 6.25 281.00 27,000 12,625 Alfalfa 6.25 375.00 /2 - /3 8,375 Milk - 34.76 33,020 - Culled Cov - - 4 6,195 - Heifer - - P5 10,010 - Steers - - /6 13,270 - Breeding Fees - - - 740 Minerals - - 550 Veterinary - - 1,105

Total 33.75 127,776 45,070 82,706

L Including hired labor. /2 Green matter. /3 Fed to livestock. x 4 Four cows per year. o Three heifers per year. cn Seven steers per year.

December 1975 KINGDOMOP MOROCCO

DnUKKALA IRRIGATION PHOJECT

Variable Production Costs With and Without Project

Yield Physical Mechanical Type I-2 ha Farm Type II-5 ha Farm Type III-5 ha Parm Type IV-25 ha Farm Item per ha Input Operation Hired Labor Total Hired Labor Total Hired Labor Total Hired Labor Total tons ------DH/ha ------

Without Project

Wheat 1.0 159 181 - 340 - 340 - 340 230 570 Maize 0.8 169 111 - 280 - 280 - 280 120 400 Beans 0.8 176 99 - 275 - 275 - 275 175 450

With Project

Wheat 3-0 S09 181 - 690 30 720 60 750 330 1,020 Maize 2.5 377 123 - 500 70 570 100 600 520 1,020 Sugar beet 45.0 731 169 - - 120 1,020 240 1,140 1,120 2,020 Cotton 1.5 722 134 - 856 - - 160 1,016 - Tomatoes 40.0 1,073 177 - 1,250 - - 300 1,550 Alf!lf'a 60.0 420 230 - 500 120 620 230 730 840 1,34o Berseem 25.0 129 111 - - - - 100 340 Fodder BarleyLi 20.0 55 105 - 160 -

/1 Green matter

December 1975 ANNEX16 Page 1

APPRAISAL OF

DOUKKALA IRRIGATION PROJECT

KINGDOM OF MOROCCO

Economic Analysis

1. The economic rate of return costing family labor at DH 8 per day and hired labor at the market rate of DH 10 per day would be 11.5%. A breakdown of investment costs including operation, maintenance and replacement costs but excluding village infrastructureover the project life are presented in Table 1. Processing industries have been excluded from the cost stream because (a) they would be self-sustainingand (b) benefits have been evaluated at the farmgate.

2. The Table also shows the incremental net benefits and net cash flows. For the economic analysis, tradeable commodities have been priced at internationalprices as derived from commodity forecasts by IBRD Economic Analysis and Projections Department for 1980, in 1975 constant US dollars. Major assumption made for calculatingthe basic rate of return include:

(a) The economic life for drains, electromechanicalequip- ment and mobile sprinkler equipment of 25, 15, 15 and 10 years respectively,and for main adduction canals 40 years, buried pipes and other major civil work structures of 50 years.

(b) Project investment costs, production inputs and project benefits valued at in 1975 constant prices, net of taxes, subsidies and price contingencies.

(c) Exclusion froeiinvestment costs of credit cost for annual production since these are included in the cost of production.

(d) Treatment as sunk costs of the existing diversion and adduction structures.

(e) Electricity cost of 0.128 Kwh which corresponds to present average tariffs to large consumers.

(f) Full development period for (a) crops of 6 years in Doukkala, and (b) livestock 10 years. ANNEX16 Page 2

2. The results of the sensitivitytests are su1marized below:

Assumptions Percent

Basic Rate of Return 11.4 20% increase in project costs 9.3 20% decrease ln power costs 14.3 50% increase ln pover costs 10.8 50% increase ln power costs, 20% in all other 8.9 20% increase in benefits 13.7 20% decrease in benefits 8.8 Advancing project benefits by one year 12.9 20% increase in project costs and 20% decrease in benefits 6.8

January 9, 1976 DOUKKALAIRRIGATION PROJECT Economie Costs and Benefits

Incremental Cost. 1 Operation & Incremental Incremental Year Investment(- Maintenance Power Replacement Total Benefits Cash Flow

…------…-- - -- DH million…______

1975 3.7 o o o 3 1976 26.1 0.7 o O 2 1977 54.o 2.4 1.0 0 57. 0 (56.5) 1978 6o.5 4.1 o.6 o 65.2 2.2 (63.0) 1979 27.1 5.2 1.4 o 33.7 7.4 (26.3) 1980 o 5.3 2.2 o 7.5 13.7 6.2 1981 o 5.3 2.5 0 7.8 16.6 8.8 1982 o 5.3 2.9 o 8.2 22.5 14.3 1983 o 5.3 3.3 o 8.6 28.8 20.2 198M o 5.3 3.5 o 8.8 35.2 26.4 1985 o 5.3 3.7 o 9.0 38.1 29.1 1986 o 5.3 3.7 o 9.0 40.6 31.6 1987 o 5.3 3.7 o 9.0 41.9 32.9 1988 o 5.3 3.7 o 9.0 42.6 33.6 1989-1991 o 5.3 3.7 o 9.0 43.1 34.1 1992 o 5.3 3.7 23.3 32.3 43.1 10.8 1993-1996 o 5.3 3.7 0 9.0 43.1 34.1 1997 o 5.3 3.7 11.8 20.8 43.1 22.3 1998-2006 o 5.3 3.7 0 9.0 43.1 34.1 2007 ° 5.3 3.7 32.3 41.3 43.1 1.8 2008-2017 o 5.3 3.7 ° 9.0 43.1 34.1 2018 o 5.3 3.7 11.8 20.8 43.1 22.3 1019-2021 o 5.3 3.7 o 9.0 43.1 34.1 2022 o 5.3 3.7 23.3 32.3 43.1 10.8 2023-2024 o 5.3 3.7 o 9.0 43.1 34.1

1IJ /J Excludes cost of credit, roada, and village infrastructure. Costs are net of tixes And price contingencies.

December 1975 ANNEX17

APPRAISAL OF

DOUKKALAIRRIGATION PROJECT

KINGDOMOF MOROCCO

Employment and Migration

1. In the province of Jadida migration is towards Casablanca. This tendency is most pronounced in the Doukkala where migration was about 1.5% per annum between 1961 and 1971 (Table 1). The project would increase employmentby 270% (4,100 man years), and the seasonality of labor would be reduced' Labor supply in the project area is estimated to be 190,000 man days and the rate of underemployment would be reduced from 75% to 10% and would occur in about 5 months in the year. Some additional labor would be required during harvesting periods. Migrant workers are available to fill this need. Table 2 summarizes labor requirementsin the project area.

2. Indirectly the project would provide employment because of use of increased processing and marketing of produce, and ancillary services related to farm inputs. Migration out of the rural areas and into the urban areas would fall. The Doukkala is close to the main urban center of Casablanca and has suffered from a migration rate to the city at 1.5% per year. The irrigation project would create a growth pole in the rural area, stemming migration into larger cities with extremely high unemploymentrates (Casablanca1971 about 16%).

January 9, 1976 ANNLX Tabl,.

KINGDOM OF MOROCCO

DOUXKALA IRRIGATIONPROJECT

Population,Age Distributionand Employment in the El Jadida Province

1961 1971 7.per annum Migration Number 7. Number % _rowth Rate /

Population

Rural 430,760 88 498,710 84 L.3 -1.5 Urban 58,800 12 92,100 16 4.1 +1.3

Total 489,560 100 590.810 100 1.9 - .9

Of which in Project Area 108,254 124,796 1.3 -1.5

Age Distribution(1961) Number oof Total

0-14 225,198 46 14-24 73,434 15 25-64 161,555 33 65 29,373 6

Total 489,560 100

Populationby Activity Number % of Total (1971)

Agriculture 121,020 71 Commerce 7,020 4 Other 43,360 25

Subtotal (Active) 171,400 100

Students 41,020 Inactive 378,390

Total Population 590,810

/1 Based on an average populationgrowth rate of 2.8% in Morocco between 1960-1971.

December 1975 ANNEX 17 Table 2

KINGDOM OF MOROCCO

DOUKKALA IRRIGATIONPROJECT

Labor Requirements

Man Day/Month Without Incremental Project With Project Requirement X Increase

January 64,100 105,900 41,800 65

February 94,500 149,600 55,100 58

March 6a,400 162,700 102,400 168

April 65,100 169,800 104,700 161

May 136,200 188,000 51,800 38

June 20,000 227,200 207,200 1,036

July 38,000 233,100 195,100 513

August 6,300 187,200 180,700 2,780

Sep,tember 6,500 145,200 138,700 2,134

October 11,300 227,800 216,500 1,915

November 33,700 172,300 138,700 412

December 25,700 102,300 76,600 298

Total 561,800 2,071,100 1,509,300 269

December 1975

KINGDOM OF MOROCCO DOUKKALA IRRIGATION PROJECT Organization of ORMVAD

DIRECTORATE

Secretariat

Operationand Designand Equipment Administrative Lîvestock Agricultural Maintenance Construction andBuilding Service Service Service Service Service Service

Personnel Extension Extension Operatiunand Engineering Maintenance Accounting AnimalHealth Supplytif Inputs Maintenanceof Topography Inventory Legal Milk Collection CropProduction Distribution LandConsolidation Purcha.e Contracts AI. ExperimentStations S stem SoilsLaboratory Vehicles Milk & MeatInspec- Inspectionotf CMV's Y Construction Spares SocialAffairs tion Supervision SmallAnimais

Subdivisionfor Agricultural f Subdivisionfor Subdivisionfor Development ...... O & M Construction ZEMAMRA ZEMAMRA ZEMAMRA_

5CMVVs

Line of Command Worid Bank-15200(R) ...... Supportirn Activities

IBRD 11853R

9' 3 .- 5Mohammedla 15' JANUARY 1976 (;Cosoblan KINGDOM OF MOROCCO

T i N I C A DOUKKALA IRRIGATIONPROJECT A L Af hç rT S c .---' Developmentaf the OumE R'BiaBasin

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O C Fr; A4 N g r . DêMAAOH0U r +Future extensions

/5> O,/4P

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\/ ZEMAMYAWS r,- L g i k>IISI~FOUTX- -' Main irrigation canaIs

7' Ai. Ž' uSiDIBENItSHENNOURAMIR < 0 oj-< DECOHRAEL OUED Rivers 'TS/Dl BENNOUR KZîDANIA KonbnTadîa

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IBRD 11855R Te El Jadido b El J.dido TEl Jd~d To Settat JANUARY1976 KINGDOM OFMOROCCO

a 0Fes DOUKKALAIRRIGATION PROJECT ~ 0 Cosoblorsco M.knes 4 Sidi Smai1

,n + t °Meknés B 34 0 Sidi S , W Prosect area y Perimeter boundory S /:: t oo Sector boundaries `3rOJFC , c vMOROCCO f ~ 32, SebIlSais Mainrcanail Mor-akech D. el Hamormam Feeder ccndl (1-\- CollectorP T drains4 ;8gadirALGERIA2 DciS2~flya(karst depression) Roads Surfaced roddsth s tomç dobe reinforcednor < X \ Brin Alèlry ., i ,fvI zmPI;enddkill ~*o° J,- New surfaced roads Subregional headquarters Ci Village centers X / ,<, t Zionaa/ Pumpinrgstations

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T.ElJadida f § ^r a/ X|

ot / > V i a \ Sidi ~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bnnn ~;

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