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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 may be 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 rain- fall. 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 improve- ment 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 consolida- tion, improving supporting services and providingbasic village infrastruc- ture 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 proj- ects 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 as- sistance of other Goverament agencies would be responsible for project imple- mentation. 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 mil- lion) 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 con- tingencies,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
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