Document of
The World Bank 'V
FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 4351-CY
STAFF APPRAISAL REPORT Public Disclosure Authorized CYPRUS
KHRYSOKHOU IRRIGATION PROJECT Public Disclosure Authorized
April 18, 1983
Public Disclosure Authorized Projects Department Europe, Middle East and North Africa Regional Office
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS.
Currency Unit = Cypriot Pound (CE) 1 C£ 1,000 Mils 1 C£ = 2.10 US Dollars (us$) 1 US$ = 0.476 C£ 1 Us$ = 476 Mils CE Million = US$2.1 Million
WEIGHTS AND MEASURES
1 oke = 1.28 kilograms (kg) 1 kilogram (kg) = 2.205 pounds 1 metric ton (m ton) = 2,205 pounds 1 liter (1) = 0.264 US gallon (gal) 1 cubic meter (m 3 ) = 35.3 cubic feet 1 cubic meter (m 3 ) = 264 US gallons 1 liter per second (l/s) = 0.035 cubic feet per second (cfs)
1 imperial gallon - 1.2 US gallons I hectare (ha) = 7.5 donums 1 hectare (ha)' 2.47 acres 1 square kilometer (sq km) = 0.3861 square miles 1 millimeter (mm) = 0.0394 inches 1 millimhos per centimeter = electrical conductivity (mmhos/cm) (EC) X 1,000 at 250 C 1 millimho (mmho) = 1,000 micromhos 1,000 micromhos per cm = approximately 700 ppm
ABBREVIATIONS
ARI - Agricultural Research Institute CCB - Cooperative Central Bank CCS - Cooperative Credit Society DA - Department of Agriculture EEC - European Economic Community FAO/CP - Food and Agriculture Organization of the United Nations/ IBRD Cooperative Program FEEAP - Fourth Emergency Economic Action Plan GD - Geological Survey Department HEDACC - Horticultural Export Development Advisory and Coordinating Committee IBRD - International Bank for the Reconstruction and Development ICB - International Competitive Bidding KIP - Khrysokhou Irrigation Project LCA - Land Consolidation Authority LC - Loan Commissioners LCB - Local Competitive Bidding LIT - Limited International Tendering MCI - Ministry of Commerce and Industry MIP3 - Million Cubic Meters MANR - Ministry of Agriculture and Natural Resources FOROFFICIAL UM ONLYi
ABBREVIATIONS(continued)
BUZbuMonitoring and Evaluation Unit PAG Project Advisory Committee PPCC - Project Policy Coordinating Committee UNDP United Natio-ns Development Programme USBR - United States Bureau of Reclamation WDD - Water Development Department
GOVERNMENT OF CYPRUS FISCAL YEAR
January 1 - December 31
This document has a restricted distribution ar,d may be used by recipients only in the performance of their official duties. Its contents may rot otherwise be disclosed without World Bank authorization.
CYPRUS
KHRYSOKHOUIRRIGATION PROJECT
STAFF APPRAISAL REPORT
Table of Contents
Chapter Page No.
1. INTRODUCTION ...... 1
II. THE AGRICULTURAL SECTOR AND WATER DEVELOPMENT IN CYPRUS . . 2
A. The Agricultural Sector ...... 2 - General ...... 2 - Agricultural Production ...... 2 - Land Resources, Use and Tenure ...... 3 - Water Resources ...... 3 - Irrigation Development ...... 4 - Horticultural Exports and Marketing Organization . . 4 B. Agricultural Policies and Programs ...... 5 C. Bank Involvement in the Agricultural Sector ...... 6
III. THE PROJECT AREA ...... 7
A. Project Location ...... 7 B. Climate . .a.a ...... 7 C. Topography, Soils and Geology ...... 7 D. Land Resources, Use and Tenure ...... 8 E. Existing Infrastructure ...... 9 F. Supporting Services ...... 9 - Agricultural Research ...... 9 - Agricultural Extension ...... 9 - Credit ...... 10
IV. THE PROJECT ...... 11
A. Project Objectives and Brief Description ...... 11 B. Detailed Features ...... 13 - Evretou Dam ...... 13 - Conveyor System .. 13 - Irrigation Distribution System ...... 14 - Groundwater Development ...... 14 - On-farm Systems .. 14 - Staffing ...... 15
This report is based on the findings of an appraisal mission in November- December 1982, consisting of Messrs. H. Eisa (Horticulturist), P. van der C-oot (Economist), S. Rana (Irrigation Engineer) and C. Langer (Marketing Consultant). Chapter Page No.
IV. C. Status of Design and Engineering . Q ...... 16 D. Water Demands Supply and Quality ...... 17
E. Cost Estimates . Q aQ. a a a.. . .a ...... 19
F. Financing . a a Q e o4 ...... a 21
G. Procurement a a Q .a. . I a ...... a 23 H. Disbursements . a . . a a . a a ...... 24 I. The Role of Women . a ...... 25 J. Environmental Tmpact . . a . a . a .a . .a . . . .. 26
V. PROJECT IMPLEMENTATION . .a . .. .a ...... a . . . 26
A. Implementation Schedule . . . . . a...... 26
B. Project Organization and Management . . . . . a a .a . 26 - Coordination and Advisory Committees ...... 27 - Project Works. . a .Qa a a . a ...... 28 - On-farm Systems .a . . .a ...... 28 - AgriculturalResearch ...... a . . . . 29 - Agricultural Extension a a ...... e. 29 - Credit . . . = . a ...... a .a ...... 29 C. Operationt and Maintenance . a . . . . . e ...... 30 D. Accounting and Auditing ...... a a . . a . . . 30 E. Monitoring, Evaluation arnd Reporting Procedures . a . . 30 F. International Commodity Agreements .a ...... 31
VI. PROJECT BENEFITS AND JUSTIFICATION a ...... 31
A. Agricultural Production a a a =.a .a .a . 31
B. Prices . a . . a a a...... a . . . . O. . .a . 33
C. Marketing ...... a a .a . . . . . 34 D. Beneficiaries . a a a a . . .a . . . a...... 35 E. Producer Incomes, Cost, Rent Recovery and Financial Impact . . a a a a ...... 36 F. Economic Rate of Return ...... 37 G. Project Risks aa a a a a a a a a a a . . a. . . 39
ViI. AGREEMENTS AND RECOMMENDATIONS a . . . .a...... 39
TEXT TABLES 3.1 Farm Sizes and Their Distribution . . a...... 8 4.1 Total Project Costs .a . . a ...... 20 4.2 Project Financing Plan . . . . . a a a ...... 22 4.3 Summary of Proposed Procurement P'lans ...... a . . 24 4.4 Estimated Disbursements ...... a 25 6.1 Crop Areas, Yields and Production ...... 32 6.2 Producer and Export Prices .a ...... 33 6.3 Agricultural Income Distribution a ...... 36
ANNEXES I Detailed Cost Estima-es . . . . .a.a a . . a a .a a .a a 40 2 Schedule of Annual Expenditures ...... 42 3 Schedule of Disbursements ...... 45 4 Farm Income and Expenditure Flows . a . a...... a. . 46 Page No.
ANNEXES 5 Rent and Cost Recovery Indices...... 47 6 EconomicAnalysis(ERR) ...... 48 7 Selected Documents and Data Available in the Project File. 49
CHARTS 1 System Diagram (World Bank No. 24569) ...... 52 2 Implementation Schedule (World Bank No. 24570) ...... 53 3 Project Organization (World Bank No. 24589) ...... 54 4 Fruit Production Calendar in the Project Area (World Bank No. 24590) ...... 55 5 Vegetable Production Calendar in the Project Area (World Bank No. 24591) . . . .o...... 56
MAPS Project Area (IBRD No. 16930)
CYPRUS
KHRYSOKHOU IRRIGATION PROJECT
STAFF APPRAISAL REPORT
I. INTRODUCTION
1.01 The Government of Cyprus has requested a Bank loan to assist in financing the development of water resources and agriculture in the Khrysokhou region which is considered one of the least developed in Cyprus. The proposed project would support the Government's continued efforts to develop scarce water resources of the island, increase agricultural productivity and farm incomes, and expand agricultural exports, particularly of high-quality fruits and vegetables, thereby increasing foreign exchange earnings.
1.02 Preparation of the project was initiated in April 1979 with the United Nations Development Programme's (UNDP) financial assistance and executed jointly by the Food and Agriculture Organization of the United Nations (FAO) and the Water Development Department (WDD) of the Ministry of Agriculture and Natural Resources (MANR). The feasibility study leading to the proposed project was prepared in 1981 with FAO/CP assistance in finalizing the main report in March 1982 to assure the project's suitability for Bank appraisal. The Government, with FAO/CP assistance, engaged the services of consultants to design the dam component and prepare tender documents based on final design. The consultant's report was submitted to the Government on November 28, 1982 during the appraisal mission's visit.
1.03 Bank lending for agriculture to Cyprus began in 1974 with the Paphos Irrigation Project, Loan 960-CY (US$14 million); and was followed by the Pitsilia Integrated Rural Development Project in 1977, Loan 1483-CY (US$10 million); the Vasilikos-Pendaskinos Project in 1979, Loan 1658-CY (US$ll million); and the Fruit and Vegetable Export Project in 1981, Loan 1988-CY (US$14 million). The Paphos Irrigation Project was completed in August 1982, and the Borrower's draft completion report, forwarded to the Bank for review in October 1982, is now being finalized by the Government. Implementation of these projects has been satisfactory, and lessons learned during their implementation were considered in the formulation and design of the proposed project.
1.04 This report is based on the feasibility study of 1981 and its updated main report of March 1982, the tender documents of the Evretou Dam and irrigation system final design, and the findings of an appraisal mission which visited Cyprus in November-December 1982. - 2 -
II. THE AGRICULTURAL SECTOR AND WATER DEVELOPMENT IN CYPRUS
A. The Aricultural Sector
General
2.01 Although overall economic growth during the period 1979-81was somewhat less than in the preceding three-year period (1977-79), the average annual rate oLfgrowth of 5.4% was respectableand exceeded the 1979-81 plan target. The services sector achieved the highest growth rate (8.5% p.a.) reflecting primarily the rapid growth of the tourist industry, whereas the manufacturing sector registered an average annual growth rate of 7.5%. Agriculture, on the other hand, grew only at an average rate of 2.5% p.a. and fell short of its 1979-81 plan target of 3.2%. As a consequence of such differential sector growth rates, the share of agriculture in overall GDP considered over a prolonged period declined steadily and stands presently at about 11% (1981). The sector continues to be important, for it employs about 25% of the economically active population and directly or indirectly accounts for about 25% of commodity exports.
Agricultural Production
2.02 In 1981, about 70% of sector value added was generated by the crop subsector, 20% by livestock act4 vities and the balance by fisheries, forestry and hunting. Though irrigated crops occupy only about 10% of the total agricultural land area, these generate nearly 80% of value added in crop production, the balance coming from rainfed, mainly cereal production on 90% of the area. These productivity differentials clearly indicate that, on the physical resources side, development of Cypriot agriculture is severely constrained by available irrigation water supplies. During the period 1979-81, value added for irrigated crops increased at about 3.5% p.a., for rainfed crops at about 1.5% p.a., whereas value added in livestock production remained virtually unchanged.
2.03 Long-term sector growth prospects mainly depend on the Government's social economic policy objectives. It would appear, however, that, even under very favorable external conditions and government policies, long-term sector growth, for three primary reasons, is not likely to exceed 2-3% per year. First, growth of crop production will depend mainly on expansion of the irrigated area. This is expected to increase by an average 10,000 ha over the next 10 years, or by about 2.5% per years Such increase is not likely to result in a corresponding gain in value added because the real cost of inputs in modern irrigated agriculture is likely to increase considerably. Second, though there is still scope for yield increases, both in irrigated as in rainfed crop production, corresponding value-added increments will be modest for the same reason as stated above. Third, livestock production depends largely on imported and subsidized feed. It appears to be undesirable to continue to increase such feed grain imports and subsidies, and hence it is unlikely that the performance of this subsector can be maintained, - 3 -
2.04 Agricultural exports play an important role in Cyprus' foreign exchange earnings; in 1980, they accounted directly and indirectly for nearly 25% of all commodity export earnings. The most important commodities in value terms are potatoes, citrus, grapes and wines while in recent years the value of vegetable exports has been increasing steadily. The above commodities accounted for 36%, 24%, 13%, 11% and 8% respectively of the total agricultural export earnings in 1981.
Land Resources, Use and Tenure
2.05 Of the total land area in Cyprus of 925,000 ha, only 424,000 ha are available for agriculture. Dryland fie'ldcrops (mainly barley) occupy some 380,000 ha, and only 44,000 ha (about 10%) are under controlled irrigation (excluding spate irrigated areas). Horticultural crops, e.g., citrus, vegetables, potatoes, deciduous fruits and table grapes, are the principal crops grown on irrigated lands.
2,06 Private ownership, in the area under government control, accounts for 93% of the agricultural land,./ the balance comprising government, church and communal lands. Eighty percent of private Land is farmed by the owners while rental contracts account for about one-qu&rter of the total farm area, The total number of holdings is about 44,500, with an average farm size of 4.5 ha. Eighty-six percent of the total number of farms is less than 8 ha and covers about 46% of the farm area; on average, eac; olaldingconsists of about six parcels and increasing fragmentation poses development problems. In order to reverse this trend, a Land Consolidation Law was enacted in 1969, and a Land Consolidation Authority (LCA) was created in the Ministry of Agriculture and Natural Resources (MANR) in 1972. As a result of its successful programs, progress in halting the extreme fragmentation of land in Cyprus has been significant. LCA does not normally undertake land consolidation activities unless sufficient interest is generated to initiate a consolidation program in a particular area and 75% of the landowners have voted in favor of consolidating their land.
Water Resources
2.07 The average annual precipitation in Cyprus ranges from 290 mm in the Western Messaoria area to 1,190 mm on the Troodos mountains for a total of about 4,500 Mm3 of water p.a. on the entire island. Surface evaporation and evapotranspiration from forests and pastures account for about 2,520 Mm3 of water p.a. and from cultivated and irrigated crops about 1,030 Mm3 p.a. An estimated 350 Mm3 enter the groundwater thus resulting in about 600 Mm3 p.a. as the net amount of surface runoff.
2.08 Most of the groundwater resources comprising sandstone, gypsum and alluvial aquifers have already been developed, and the prospect of further development of minor aquifers is limited because of quantity as well as because of water quality. Therefore, surface water is assuming more importance as the predominant source of water for development. Presently, it
1/ 1977 Agricultural Census. -4 is estimated that, annually, about 175 Mm.. of surface water are utilized for agricultural and domestic uses, and the remaining 425 Mm3 are wasted to the sea during floods.
Irrigation Development
2.09 The total storage capacity of reservoirs in Cyprus, mostly for irrigation, including the recently completed Asprokremmos Dam near Paphos, is 116 Mm3 . These provide an average annual water yield of 86.7 Mm3 . The groundwater schemes provide about 360 Mm3 annually for irrigation. The Vasilikos-Pendaskinos Project, which is presently under implementation, would add about 32 Mm3 of storage capacity and, on completion, would be the irrigation source for about 1,600 ha. The proposed Khrysokhou Irrigation Project would provide 23 Mm3 of storage capacity at the Evretou Dam to serve 2,000 ha of irrigation area.
Horticultural Exports and Marketing Organization
2.10 Wnereas total commodity export earnings in the period 1977-80 rose by about 50% in current terms, horticultural and related export receipts rose by only 10%; and as a consequence, the share of the latter in total commodity export receipts fell from about 37% in 1977 to about 25% in 1980. Export prices of most horticultural commodities, citrus, grapes and potatoes, rose only moderately in current terms and stagnated in real value; only unit export values of vegetables registered a substantial increase (20%) in real terms. Significant increases in future sector export earnings will mainly depend on Cyprus' ability to shift exports to high-value vegetables and exotic fruits (e.g., avocados and kiwis) and to increase exportable volumes of traditional items such as potatoes, citrus fruit and table grapes. Such changes require continued investment in water development projects, on-farm irrigation systems and commensurate attention to applied research and extension coupled with effective export marketing mechanisms.
2.11 Part of Cyprus' agriculture was developed to produce specific fruits and vegetables for the UK market. The realignment of UK trade policies, following UK entry into the European Economic Community (EEC), resulted in Cyprus' loss of preferential entry into that market. Interim policies were replaced in 1978 by the Special Commonwealth Preference for Cyprus which stipulated preferential tariffs for a variety of horticultural products. The UK continues to be the main market for Cyprus' horticultural products (e.g., 85% of potatoes, 50-60% of citrus), though modest diversification to other European countries and the Middle East is in process.
2.12 The main problems facing Cypriot exports of horticultural products are (i) concentration in one particular market, (ii) lack of coordination among exporters on one hand and between exporters and producers on the other, and (iii) absence of a long-term export marketing strategy.
2.13 These problems are recognized by the Government, and their resolution is considered essential to attaining the envisaged benefits from present and future irrigation projects including the proposed project. The - 5 -
Fruit and Vegetable Export Proiect (Loan 1988-CY) was designed to resolve the foremost fruit and vegetable marketing problems. Under this project, which became effective on August 26, 1981. a Fruit and Vegetable Export Marketing Advisor was selected to assist the Horticultural Export Development Advisory and Coordinating Committee (HEDACC) in restructuring the export trade, market intelligence, coordination of marketing services and export promotion.
2.14 Organization of Exports. Cyprus' fruit and vegetable exports are channeled through four distinct types of export marketing organizations. The first and most important is the Potato Marketing Board which was established in 1964 as a regulatory agency fully responsible for production planning and marketing of potatoes. The Carrot Marketing Board has been established along similar lines but with a smaller size of operations. The second type is that of the Agricultural Products Cooperative Marketing Union (SEDIGEP Ltd.) which exports about 30% of citrus, table grapes and deciduous fruits. SEDIGEP also exports about 20% of the total vegetable exports and recently has been involved in exporting avocados. The third type, mainly for citrus and table grapes, is that of vertically integrated firms who own both production and marketing facilities and ship their production mainly to the UK through their own representatives or offices in London. The fourth and last main marketing type is that of independently operating export marketing firms for a wide variety of other fruits and fresh vegetables and is characterized by a relatively large number of independent exporters with small-scale operations.
B. Agricultural Policies and Programs
2.15 The Government continues to consider agriculture as one of its priority areas. Within an overall framework of actions to maximize production, of improving income levels and of balancing regional growth, the sector objectives of the Fourth Emergency Economic Action Plan (FEEAP), 1982-86, are (i) to expand irrigation; (ii) to modernize the sector; (iii) to improve the marketing system; and (iv) to restructure price and subsidy controls.
2.16 Because of the high unit cost of irvestment in irrigation, the FEEAP allocates nearly two-thirds of the total sector investment budget of CE150 million (US$315 million) to water development programs.]/ In addition, the FEEAP includes the provision of about CE25 million (US$52.5 million) in loans to farmers to facilitate, in conjunction with extension, further modernization of the sector. The Government's strategy of promoting exports is a sensible one considering the contraints imposed by a small domestic market and the various comparative advantages of Cypriot agriculture. Improvement of present export marketing, coordination of producers' and exporters' efforts, and elaboration of a long-term export strategy is a prerequisite for further large increases in agricultural exports.
2.17 The Plan recognizes that the financial and economic cost of a set of price controls and subsidies in the sector has grown substantially, and, as a
1/ Cyprus - Current Economic Positions and Prospects for Growth during the Five-Year Plan, 1982-86. IBRD Report No. 4069-CY (January 19, 1983). - 6 -
result, the FEEAP includes, am.ongagricultural policy objectives, "the restructuring of controlled prices and subsidies with a view to increasing the efficiency of the agricultural sector." In 1981, these subsidies corresponded to about 28% of agricultural GDP. By far the most important subsidy was the grain subsidy, caused by government purchases of grain (wheat and barley) at comparatively high prices from farms, coupled with additional imports of grain which are sold at less thaniimport prices to food-processing industries and feed-mixing firms, hence distorting the monetary value of feed and food in relation to their real value. The wine subsidy is of much lesser importance in aggregate terms. Preliminary work on irrigation subsidies suggests that, in the aggregate, these represent only a modest transfer payment; a more detailed study, however, could well lead to the conclusion that, as projects are coming to fruition (e.g., Paphos), irrigation water subsidies become substantial and may lead, in instances, to an uneconomical use of water. This will be the subject of a forthcoming economic sector mission.
C. Bank Involvement in the Agricultural Sector
2.18 The Bank has, so far, focused its lending to agriculture primarily on the development of new and the more efficient use of existing water resources, the sector's most limiting physical factor. Second in priority has been the increase of the sector's low labor productivity to promote productive eraployment and to achieve a more equal distribution of economic growth among sectors. The Bank's participation in the sector has also served as a catalyst to attract development financing from other sources.
2.19 The Paphos Irrigation Project, started in 1974 and completed in 1982, provided essential irrigation infrastructure mainly for export production and assisted in financing on-farm investments. The ongoing Pitsilia Integrated Rural Development Project, started in early 1977 and expected to be completed by the end of 1983, emphasizes productive and social infrastructure investments directed towards the poorest parts of government- controlled Cyprus. The third ongoing project undertaken in the agricultural sector, the Vasilikos-Pendaskinos Project, started in 1979, is intended to develop water resources for irrigation and to reduce the shortages of potable water in the cities of Nicosia, Limassol and Larnaca. The latest project undertaken so far, the Fruit and Vegetable Export Project of 1981, complements previous Bank investments in the sector by initiating a set of institutional and organizational changes in the fruit and vegetable export trade and improving the utilization of scarce water resources, creating further employment opportunities and improving productivity. Although the marketing components of this project which are coordinated by the Ministry of Industry and Commerce (MCI) have been slow to start, others, particularly those implemented by the MANR, have shown satisfactory progress. The export marketing adviser has been selected, and implementation of the marketing components is expected to proceed as envisaged.
2.20 Feasibility work is scheduled to be completed in early 1983 for the Southern Conveyor project, a project which will integrate available water resources of southern parts of Cyprus by developing 70 Mm3 of water p.a. for agricultural, industrial and domestic use. The project is designed to - 7 - transfer surplus water from the southwest to the southeast areas which suffer from water shortages, part of which is threatened by sea water intrusion in its aquifer. At the request of the Government, the Bank is assisting in the review of feasibility work which is expected to materialize into a lending operation in FY84.
III. THE PROJECT AREA
A. ProjectLoc ation
3.01 The Khrysokhou project area is located in the northwestern part of Cyprus around the town of Polis (IBRD Map No. 16930). The irrigation service boundaries encompass 2,000 ha net area in the Khrysokhou River valley and the coastal plain wnich is bordered by the Khrysokhou Bay on the north. The Evretou Dam, to be constructed on the Stavros tis Psokas River, is located about 2 km upstream from its confluence with the Khrysokhou River, which is about 5 km inland from the estuary. The catchment area of the Khrysokhou River above diversion is 22 km2 and that of the Stavros tis Psokas River above the Evretou Dam is 91 km 2 .
B. Climate
3.02 The project area has a typical Mediterranean climate with hot, dry summers and mild winters. Average rainfall is about 600 mm annually but varies from 450 mm in the coastal plain to 650 nun in the upper watersheds. Eighty-five percent of the total rainfall occurs in the winter season (November to March). Inter-annual variations of rainfall are very high; the annual extremes as recorded are 200 mm and 800 mm. Average monthly relative humidity in the project area varies between a minimum of 50% in the summ,erand more than 80% during the winter. The climatic conditions are particularly favorable for growing eariy varieties of vegetableE, lemons, grapes and deciduous fruits.
C. Topography, Soils and Gelog
3.03 1pr2h The irrigation service area is located on the coastal plain and along the river valley rising gently from the sea to altitudes of up to 100 ra. Slopes are generally smooth on the coastal plain and along the valley (1-4%) but are somewhat steeper across the valley.
3.04 Soils. Soil surveys and land suitability classification studies (at scale 1:25,000) were carried out by the Department of Agriculture (DA) on the 2,000 ha which comprise the project area. Major soil types are either alluvial or colluvial, and the classification suitability for irrigation is based on a local system which is generally in line with that of the US Bureau of Reclamation (USBR). According to this classification, about 95% of the soils in the project area are considered suitable for irrigation and falls in classes I-III according to criteria of the USBR. Except where terraces have to be made on the steep slopes on a smlall section of the area, only a little leveling or smoothing of farm lands would be required for the proposed sprinkler and drip irrigation applications.
3.05 The soils are mostly deep to medium with light-to-medium texture. Spatial variation of the amount of CaCO in the soils would determine the cropping pattern in the area with citrus and avocados growing only in areas where calcium carbonate content is low. The soils in general are favorable for the production of almost all fruits and vegetables,
3.06 Geology. The geology of western Cyprus is dominated by the Troodos Igneous Complex. In the upper watershed, layers of clays, chalks and marls ranging in age from late Cretaceous to Pliocene overlie the igneous rocks. Pleistocene and Holocene sands and gravels form fans and terraces along the coast and in the river valleys.
3.07 At the dam site, the strata of ridges comprise an alternating succession of limestone, chalk, chalky marl and siltstone underlain by bentonic clays. The bed rock does not contain bentonic clays. In the river bed, about 30 m deep, buried channel comprising coarse sand and gravel with volcanic and chalk cobbles exists under the invert.
D. Land Resources, Use and Tenure
3.08 Presently, about 230 ha in the proposed project area are under irrigation from wells and boreholes, the most important crops being young citrus (about 160 ha) and vegetables (abouit35 ha). Smaller irrigated areas are planted to deciduous fruits, table grapes and bananas. About 1,770 ha are presently under rainfed crops, mainly cereals (more than 800 ha) and, to a lesser extent, fodder crops, legumes and almonds.
3.09 Agricultural land within the project area is almost entirely privately owned. Landownership is characterized by the preponderance of small holdings and their high degree of fragmentation. The average plot size is about 0.7 ha with 50% of the farmers having four or more plots per farm. A summary of farm-size data for the project area is given below:
Table 3.1. Farm Sizes and Their Distribution
Farm Size Number Average Farm Class of Farms % of Total Area Farmed % of Total Size -- (ha)------ha)------(ha)----
0-1.3 230 36 160 8 0.68 1.3-5.3 295 46 760 38 2.68 5.3-13.3 100 16 760 38 7.74 > 13.3 15 2 320 16 19.68
Total 640 100 2,000 100 3.14
Source. Khrysokhou Irrigation Project, Feasibility Report, Main Report. - -
E. Existing Infrastructure
3.10 The town of Polis lies in the middle of the project area and is under the administrative jurisdiction of the Paphos district. Polis is connected by asphalt roads with Paphos and the major villages in the project area. Earth roads provide access to the existing farmlands. Power from the national grid is available in all villages, and these can easily be connected to the proposed pumping stations. The main source for domestic water supply is groundwater which is pumped and piped to all major villages. Telegraph, telephone and postal services are available at Polis. The area is presently served by the international airport at Larnaca. A new airport is being constructed at Paphos which is scheduled for completion in 1983/84 and will have facilities for international airlines and wide-body jets to operate. All administrative departments of the Government have offices at Paphos which are coordinated and administered by the District Officer. The Department of Agriculture (DA) and the Water Development Department (WDD) of the Ministry of Agriculture and Natural Resources (MANR) have suboffices in the town of Polis.
3.11 The existing irrigation system in the project area comprises spate diversions to lands along the river banks and groundwater pumping units which are scattered in the area. One main groundwater irrigation scheme recently constructed by the Government has a battery of five wells from where water is pumped to four elevated concrete tanks for distribution to about 200 ha of farmlands (240 ha gross area) within the boundaries of the project area.
F. Supporting Services
Agricultural Research
3.12 The MANR is the main public institution dealing with agriculture in Cyprus and the Agricultural Research Institute (ARI) is the main agency for agricultural research. The ARI has its headquarters in Nicosia with several experiment stations distributed in the country according to major agricultural zones. Two of these stations are located at Akhelia in the Paphos district in the southwest part of the country and about 40 km from the project area. Both stations are conducting applied horticultural research geared to solving production problems in the Paphos district and on the same crops grown in the project area, thus precluding the need to establish a special research station under the project. Research programs undertaken at ARI and the Akhelia research stations include introduction of new fruit crops with commercial potential as passion fruit, kiwi, mango and guava. Experimentation with energy and water saving techniques constitutes an integral part of the country's research program, particularly with production of off-season vegetables under controlled environmental conditions.
Agricultural Extension
3.13 The DA of the MANR is responsible for undertaking extension activities in the country. The extension service is comprised of five District Agricultural Offices at Nicosia, Limassol, Paphos, Larnaca and Famagusta. Within these districts, 10 Agricultural Centers serve groups of - 10 - villages of which four are in the Nicosia district, three in Paphos, two in Limassol and one in Famagusta, Each Agricultural Center usually has one to three assistant agricultural officers and several agricultural assistants who deal with specialized topics of agricultural production. Towns and villages are subdivided into 30 Agricultural Beats. The number of villages in each beat ranges from four to 24 depending on the number of farmers and type of agriculture (rainfed or irrigated). Each beat officer, who is a college graduate, serves about 1,500 farmers (including part-time farmers). The project area is a part of the Paphos district and presently has one beat officer.
3.14 Farmers' training in the Paphos district is carried out at the Paphos Training Center located near the Paphos Irrigation Project. Specialists at the Akhelia Research Station, extension personnel, MANR staff and ARI research workers are in close contact with farmers and are involved in the training programs at the Paphos Training Center as well as other centers in the country. During the 1981-82 season, the Paphos Training Center offered 40 short-term courses (1-14 days) in a variety of topics including crop production, plant protection and irrigation. The application of energy and water saving techniques is awarded special attention. In addition, several courses in farm mechanization, use of machinery and their maintenance have been offered. The number of participants varies according to the topic with an average of about 30 participants per course.
Credit
3.15 Agricultural,Credit Institutional credit for agriculture is mainly provided by the Government through the Loan Commissioners (LC) and the cooperative system, the latter mostly consisting of village-based Cooperative Credit Societies (CCS) and the Cooperative Central Bank (CCB).
3.16 The LC consist of the Minister of Finance (Chairman) and six members including the Directors-General.of the Ministries of Agriculture and Natural Resources, Communication and Works, and Interior and three independent persons. LC funds are mostly derived from annual budgetary allocations, certain revolving funds and borrowings from government-provided funds, the Social Insurance Fund, etc. It lends money, among other purposes, for government-sponsored agricultural development projects and programs. The facilities of the CCB are used by LC for their agricultural lending operations. Other funds are provided to the CCB for financing development programs under its own responsibility or the CCB is used as a fiscal agent for distribution to and recover) of loans from farmers. In the latter case, the loan requests are received and technically assessed by the staff of the DA while the financial evaluation is done by the CCB. For its services the CCB receives a comnmissionof 2,0%. Individual loans are approved by the LC directly. All loans issued with LC funds are secured by irrnovableproperty or, in the case of displaced persons, by government guarantee and carry interest at 7% p.a., which is slightly negative considering the present inflation rate of 8%.
3.17 Short-term credit recuirements are generally provided by the CCS system. Of these, there are four in the project area. The system in general - 11 - has substantial liquidity, for deposits have been increasing faster than lending. Deposits are presently earning interest between 5.5% and 6.5% depending on maturity.
3.18 The CCB is basically an apex financing bank for its shareholders which are marketing, supply and credit cooperatives. Its capitalization excludes government funding and CCB's lending comes mostly from deposits, as well as LC funds for specific government-sponsored programs. The nearest CCB branch office is located in Paphos.
IV. THE PROJECT
A. Project Objectives and Brief Description
4.01 The proposed project is in line with the central elements of the Government's agricultural policy, and its main objectives are (1) to expand the irrigated area; (ii) intensify agricultural production; and (iii) increase agricultural exports and foreign exchange earnings. The proposed project would comprise an area of 2,000 ha located in a relatively isolated and underdeveloped part of the island. Employment opportunities in the project area are presently limited, and nearly half of the farming population needs to supplement farm income by engaging in employment elsewhere. The proposed project will be a direct benefit to about 3,500 persons and generate additional benefits in the fruit and vegetable marketing infrastructure.
4.02 The proposed project will comprise the following components:
(A) IrriLation
(i) Evretou Dam: The proposed Evretou Dam will be of the zoned embankment type with rockfill shells, earth core, graded filters and a diaphragm wall. The crest length of the dam will be 250 m and the maximum height of the embankment 71.0 m. The catchment area above the dam is 90.8 km2 which will generate an average annual flow volume of 13.0 Mm 3. The live storage capacity of this reservoir is 23 Mm3 which will carry over surplus water of wet years in storage for irrigation in the dry years.
(ii) Conveyor System: The main conveyor system comprises about 16.5 km of ductile iron pipelines ranging in diameters from 900 mm to 200 mm, three storage ponds and two break pressure tanks. In addition, a diversion structure will be provided to divert and regulate flows from the upper Khrysokhou River for supplementing irrigation supplies from the Evretou reservoir.
(iii) Irrigation Distribution System: This comprises a network of asbestos cement and PVC buried pipes designed to deliver - 12 -
under gravity flow 7,100 m3/ha/year with a peak demand of 1,470 m3 /ha during the month of July. The system includes necessary valves, hydrants and meters to deliver water on demand at each hydrant outlet appropriately sized to deliver the aforementioned peak demand. Adequate provision has been made in the project for construction of farm roads.
(iv) Groundwater Development: In addition to five tubewells already installed in the Khrysokhou gravel aquifer under the existing government irrigation scheme of 200 ha (para 3.11), eight tubewells ranging in depths of 80-100 m with an average capacity of 15 I/s each will be installed to meet shortages of surface water for irrigation during dry years. Total groundwater abstraction capacity in the system will be about 2 Mm3 p.a.
(v) On-farm System: The application of water to the fields will be accomplished by mini sprinklers (45% of the area) and drip irrigation (55% of the area) for the proposed cropping pattern of fruits and vegetables. An application efficiency of 80% was assumed in the design of the system. Credit will be provided to the farmers by the Government for on-farm irrigation systems and investment in planting of orchards.
(B) Management and Administration
(i) Staffing: The project's management staff will consist of:
- Project Manager - Deputy Project MIanager for Engineering - Deputy Project Manager for Agriculture
In addition, adequate numbers of engineering and agricultural support staff are available in the Ministry of Agriculture and Natural Resources (MANR) and will be appointed to project implementation positions as required.
(ii) Monitoring and Evaluation Unit: A Monitoring and Evaluation Unit (MEU) for all major agricultural investment projects including irrigation will be established and attached to MANR's headquarters. Funds for such a unit have been included in the Government's 1983 budget, and the unit will consist of an Engineer, Agriculturist and Agricultural Economist. This unit will also be responsible for monitoring and evaluation of the Khrysokhou Irrigation Project (KIP).
(iii) Facilities:
(a) Buildings: Instead of constructing a new building, it was decided that an existing government building at Polis should be refurbished for use as the project - 13 -
office during construction and for the agricultural services during subsequent operation. The contractors' field office at the Evretou dam site will be retained for use by the engineering section for operation and maintenance (O&M) of the project after completion of the dam.
(b) Transportation: Provision has been made in the cost estimate for two sedans and six 4-wheel-drive Land Rover/Land Cruiser-type vehicles for use by the project management and the support staff. The cGntractor will provide transport for the consultants on the supervision of the dam under Bill No. 1 (General and Preliminary Item) of the proposed construction contract.
B. Detailed Features
4.03 The project is designed to store surface water, abstract groundwater divert and deliver the available supplies for irrigation on demand. The system is shown schematically on World Bank Chart No. 24569.
Evretou Dam
4.04 The dam will be of the embankment type with a vertical earthen core in the center flanked by filter zones and rockfill shells. A vertical diaphragm wall at the bottom of the core and extending down to the bed rock will provide a barrier against subsoil flow through gravel strata beneath the dam. The embankment slopes on the upstream and the downstream will be 1.9 horizontal to 1 vertical. The maximum height of the dam at the lowest spot will be about 71 m, and the reservoir with a freeboard of 4.5 m will have a gross storage capacity of 25 Mm3 (live capacity = 23 Mm3 ). The spillway will be an open chute/flip bucket-type structure and designed to safely pass 300 m3 /s during a Probable Maximum Flood event peaked to 690 m3 /s which will generate a total volume of 13.7 Mm3 of flow.
4.05 A straight concrete-lined tunnel through the left abutment will be used for diversion during the construction stage and subsequently the same conduit will carry the bottom outlet and irrigation pipeline as part of the outlet works. The designs of the dam and the appurtenant structures have been reviewed by a panel of experts who have found that the geological conditions at the dam site are safe under the prevailing seismic conditions for the proposed structures and that availability of materials required for construction will not be a problem.
Conveyor System
4.06 Upper Khrysokhou River Diversion. A diversion structure will be constructed on the Khrysokhou River near Yiolou at about 197 m average sea level from where a 500 mm diameter pipe will convey water to the main conveyor at Skoulli. The total length of the pipeline will be about 7.5 km. The average annual water yield of the river at the diversion site from 22 km2 - 14
catchment area is 5 Mm3. The structure and the conveyor will be sized to divert up to 2.5 Mm3 annually for irrigation.
4.07 Main Conveyor and B c The system to be constructed for the conveyance of water will include 6.82 km of 900 mm diameter MaLin pipeline; 1.60 km of 600 mm diameter West Branch pipeline; and 0.72 km of 600 mm and 200 mm diameter East Branch pipeline. All pipelines will be buried conduits of ductile iron and will deliver water from the Evretou Dam and Upper Khrysokhou River diversion to three storage ponds (KEL, KWL and KWU) and two break pressure tanks (KR and KEU) for distribution to the irrigation service area. The storage capacities of the Khrysokhou East Lower Pond (KEL), Khrysokhou West Lower Pond (KWL) and the Khrysokhou West Upper Pond (KWU) will be 9,450 m 3, 113400 m 3 and 11,400 m 3 respectively. The ponds will be lined with cement concrete and a buried membrane to prevent seepage losses.
4.08 The sizes of the ponds are such that the peak irrigation water demand of the irrigation service area to be supplied from each pond from 6 a.m. to 10 p.m. will be met from continuous supply from the reservoir and up to 22-hour pumping from the groundwater. Necessary filters will be installed at the outlets from the tanks and the ponds to prevent clogging of the distribution pipelines.
Irrigation Distribution System
4.09 Irrig N . From the storage ponds, water will be distributed to hydrants, each serving one or several farms in about a 3-ha irrigation unit, through a network of distribution pipelines. The network will consist of buried Class 15 asbestos cement pipes sized to deliver a pressure regulated discharge of 2 1/s/ha on demand at each hydrant. Water meters will be installed at each farm inlet except where one hydrant serves only one farm in which case the meter will be provided at the hydrant outlet. The distribution sector from the hydrant outlet to the metered farm inlet will mostly be buried plastic (PVC) pipes.
Groundwater Development
4.10 To supplement surface water resources and the existing groundwater schemes, deep groundwater resources will be developed to extract annually up to 1.5 Mm3 from the limestone aquifer in the region between Neokhor-ion and Skoulli. For that purpose eight tubewells ranging in depth between 80 m and 100 m and delivering about 15 l/s discharge each will be installed. Water from tubewells will be delivered to storage tanks from where it will be used in conjunction with the surface water. The existing five tubewells of the government scheme (para 3.11), which are pumping water from the Khrysokhou River gravel aquifer, will also be integrated into the overall water supply system of the project totaling an annual abstraction of about 2 Mm3 from groundwater.
On-farm Systems
4.11 On-farm Works. These include (a) pipelines for conveyance within the farm; (b) installation of mini sprinklers and drip irrigation; (c) land - 15 - smoothing, and vegetable and orchard planting; and (d) farm roads. Implementation of these works will be done on about 1,800 ha of the service area. On the remaining 200 ha of the existing Government scheme (para 3.11), the works will be upgraded to the criteria established for the whole project area.
4.12 In line with farmers' preference and existing agricultural practices which are successful in Cyprus, mini sprinklers are expected to be installed for some of the fruit trees on about 45% of the area. On the remaining 55% of the area, drip irrigation will be provided for vegetables, avocados and some citrus crops. The mini sprinkler irrigation system will be designed to deliver 120-150 1/hour under an operating pressure of two atmospheres. The drip irrigation system will be designed to operate under one atmosphere pressure and emit a discharge of 2-7 1/hour. Polyethylene pipes (heavy duty) will be used for both the main and secondary lines of the irrigation systems. Screen filters and fertilizer tanks will be installed at the farm inlets.
4.13 Smoothing and Planting. Since all irrigation in the area will be either by sprinklers or by drip, special land leveling or grading of farms will not be required. However, in certain areas slopes will be cut to terrace the farmland. Also, major surface irregularities will be evened out for proper installation and operation of the irrigation works and drainage of surface water. The establishment cost of fruit trees and vegetables has also been included in the project costs for on-farm works; these crops will cover about 75% and 25% respectively of the total irrigation area. Adequate quantities of high-quality fruit seedlings are available at reasonable prices from government nurseries in Paphos and other nearby areas.
Staffing
4.14 The Project Manager will be a suitably qualified graduate civil engineer with substantial experience in design, construction and operation of irrigation development projects, There will be two Deputy Project Managers, one in charge of engineering and the other responsible for the agricultural aspects of the project, each having considerable experience in his respective discipline. Assurances were obtained during negotiations that: (a) a qualified and experienced Project Manager acceptable to the Bank will be employed; and (b) two qualified and experienced Deputies will be employed; and the appointment of all thrLe will be a condition for effectiveness of the loan (para 7.01). There will be two teams of civil engineers, technicians, surveyors and draftsmen, one for design and one for construction supervision of engineering works in the project other than dam construction (paras 4.15 and 4.21), Agricultural staff will consist of agricultural officers and assistants for the design and implementation of on-farm irrigation works and for the agricultural extension service.
4.15 DeLailed design and contract documents for the construction of the Evretou Dam have already been completed (para 4.17). For its construction supervision, the British consulting firm of Sir William Halerow and Partners, in association with the Cypriot firm of A. Parastitis and Associates, has been appointed and will assign a Construction Manager and a Design Engineer for a - 16 -
total of 84 man-months at about US$8,000 per man-month inclusive of salaries, fees, overhead, international travel and subsistence. Terms and conditions of their appointment were reviewed during negotiations and found acceptable. The consultants will be supported by a team of Cypriot technicians for a total of 312 man-months. The dam construction unit will function under the direct control of the Project Manager. Project management and the dam construction unit will be supported by sufficient administrative, accounting and secretarial staff. Assurances were obtained during negotiations that competent staff in adequate numbers will be appointed to implement the project (para 7.01).
C. Status of Design and Engineering
4.16 The site for the Evretou Dam, which is the major component of the project, was identified in 1969, and an engineering report was prepared by the UNDP in 1974 in which alternative regimes for water storage at that site were drawn. A feasibility study, funded by the UNDP, was carried out during the period April 1979 - July 1981 jointly by the FAO and the WDD for the KIP covering an area of 3,100 ha of the lowlands including the Evretou Dam. Tne FAO/CP assisted in preparation of the final project report based on the feasibility study. The project scope was reduced during appraisal by limiting it to the Khrysokhou River basin only. Simulation studies to determine the adequacy of the available water resources for 2,000 ha have been done and the results incorporated in the project design.
4.17 Evretou Dam. A working paper was prepared by the FAO in July 1980 on the proposed dam and main conveyors in the Polis-Khrysokhou area discussing alternative dam sites, locations of structures and detailed geology of the area. Based on this study and the subsequently completed feasibility study, the Government, assisted by the FAO/CP, with the help of the British consulting firm of Sir William Halcrow and Partners, has completed final designs and tender documents for the construction of the Evretou Dam. A design report was prepared by the consultants in November 1982. The designs were reviewed by a panel of experts during preparation and then on completion.
4.18 Other Engineering Works. The preparation of detailed designs and tender documents for the irrigated infrastructure of 800 ha in the Khrysokhou valley was carried out by WDD staff with the assistance of a senior consultant from Rendel, Palmer and Tritton of the UK between July 1981 and March 1982. As for the detailed design of the first 9 km of the conveyor system, connecting branches, storage ponds and tanks, it was carried out by WDD staff and an engineer from Sir Malcolm MacDonald's Consulting Engineers (UK based). The designs of the main conveyors and the irrigation network for Section IA comprising 818 ha were updated by the WDD using consultants' studies, and the final report and a bill of quantities were prepared in March 1982. The designs for the Upper Khrysokhou River diversion, and the tubewell schemes and irrigation network for the remaining project area which were prepared during the feasibility study will be updated in April 1984 well ahead of the scheduled construction of these components. Provision for an adequate design team for that work has been made in the project (paras 4.14 and 4.15). The designs of on-farm works have been standardized for the different types of installations and the sizes of the plots. These will be adopted for - 17 - implementation by the farmers under the guidance of the staff of the MANR provided in the project (para 4.14).
4.19 The layouts for various engineering works for designs were made on orthophoto maps at a scale of 1:2,500 with contours and 50 m level grids from 1:10,000 aerial photography controlled on the ground by 1:5,000 topographic maps. For design of the dam, detailed topographic maps were prepared for the locations of structures on 1:500 scale. The design documents were reviewed during appraisal, and it was found that sufficient details and data are available for tendering of contracts and completion of major civil works.
4.20 Safety of Dam. The Panel of Experts, which was designated by the Government to review the plans and designs and provide guidance during the construction of the Vasilikos-Pendaskinos dams (Loan 1658-CY), was also assigned to review the designs of the Evretou Dam during preparation and on finalization. The Government has appointed the same panel to the supervision of the Evretou Dam construction. Assurances were obtained from the Government during negotiations that a Panel of Experts acceptable to the Bank will be formally designated for the Evretou Dam to inspect the dam at least twice a year during construction; once on the completion of the dam; annually for the next five years; and, thereafter, every five years (para 7.01).
4.21 Consultants. Final designs and tender documents for the Evretou Dam, the main conveyor system and the irrigation network were prepared by the Government with the help of international consultants (paras 4.17-4.19). The Government has well-qualified and experienced engineers and supervisors in the MANR for the implementation of works without need for international experts except construction of the Evretou Dam. The Government has appointed the engineering consultants (para 4.15) to head the dam construction supervision team drawn out of competent and well-trained WDD staff of the MANR.
D. Water Demand, Supply and Quality
4.22 Water Demand. The irrigation water demand was based on consumptive use estimated by the Blaney-Criddle method, the crop coefficients for the main crops proposed for the project area, and effective rainfall. The climatic data required for computing the water demand were obtained from the recording station at Polis. The crop coefficients were obtained from the Department of Agriculture and the Agricultural Research Institute of the MANR. The effective rainfall was based on criteria recommended by the US Department of Agriculture. An overall irrigation efficiency, including conveyance and field application, was assumed as 72%.
4.23 The net irrigation water requirement of crops obtained from 20 stochastically generated series of data each of 49-year duration for the proposed cropping pattern on average annual basis is 5,120 m3 /ha. The corresponding total requirement at the source of water supply is 7,100 m3 /ha or 14.2 Mm3 /year. These do not include water for leaching of salts for which surplus water from rainfall will be retained on the fields. The non-irrigation demand for municipal and industrial water supply for the project area is about 1.0 Mm3 . - 18 -
4.24 Water Supply. 'Themain sources of water supply in the system are (a) the Evretou Reservoir with an average annual yield of 12.8 Mm3 ; (b) diversion from the Upper Khrysokhou River of up to 2.5 Mm3 /year; and (c) 13 tubewells including five tubewells of an existing government scheme for abstractions from the Khrysokhou valley gravel aquifer and limestone aquifer (average yield = 2 Mm3). All of these resources will be integrated within the water storage and conveyance systems and will be available for irrigation supply in the distribution system. The system operation to study the adequacy of water supply for the project was done on a computer-based simulation model shown schematically on World Bank Chart No. 24569.
4.25 Results of two most representative series studied on the simulation model are given in the Project File. Those results for 98 years of two 49-year series of the project simulation study show that on an annual basis (a) irrigation water demands would be met fully during 80% of the years and (b) the deficits by volume during the remaining 20% of the years would be 10-60% of the total irrigation demand, In such years irrigation priority will be given to perennial crops, and the area under annual crops will be adjusted accordingly.
4.26 Water Quality. Studies conducted by the WDD revealed that water quality of the main sources is as follows:
(a) Surface water: The maximum conductivity of water of the Stavros tis Psokas River at Evretou has been recorded between 0.6 nmh-os/cmand 1.0 mmhos/cm over a wide range of discharges. The conductivity of the Upper Khrysokhou River water is somewhat higher but within the range acceptable for irrigation.
(b) Groundwater: The maximum electrical conductivity values of groundwater in the Khrysokhou River gravel aquifer and in the limestone aquifer from where abstractions are proposed to be made vary between 1.0 mmhos/cm and 3.0 mmhos/cm. This water is to be used in conjunction with surface water which is generally of excellent quality. Therefore, there will be, normally, no limitation on its use for irrigation of the proposed cropping pattern. However, the draw down and the salinity levels of the aquifer should be regularly monitored to permit taking suitable measures in time to preclude intrusion of seawater in the coastal plain.
(c) Drainage: The topography of the project area allows gravity drainage of the surplus surface water through natural depressions to the sea. In project development, water will be metered in a closed system and applied for irrigation by drip and sprinkler metiods. Therefore, no wastage and surface water disposal problems are foreseen. The surplus capacity in the irrigation system in the non-peak seasons and the rainfall are expected to provide any leaching which may become essential due to the continuous use of sprinkler or drip irrigation systems. Monitoring of the need to take such measures would also be undertaken. - 19 -
E. Cost Estimates
4.27 Cost estimates are based on the quantities of work for each component computed by the consultants and the WDD and reviewed during appraisal. The unit costs were based on detailed cost analysis and information obtained of similar works recently tendered in Cyprus as of December 1982 adjusted to April 1983 prices. A factor of 10-15% was used for the physical contingencies for various civil works components depending upon the level of design. The price contingencies, both for the local and foreign components, were computed by applying annual rates of 7.5% for 1984 and 6.0% each for 1985, 1986 and 1987. Total costs thus estimated are C£ 22,036,000 (US$46.28 million) including physical and price contingencies. The foreign exchange component is CZ 12,640,000 (US$26.54 million) or 57.4% of the total costs. The project costs are free of taxes and duties as these are not levied on goods and services destined for public projects. The cost estimates are summarized below and shown in detail in Annex 1. A proposed schedule of expenditures and phasing is given in Annex 2. Table 4.1; Total Project Costs /1
Foreign Local Foreign Total Local Foreign Total Exchane ------…(C Million) ------(US$ Million)…------
Evretou Dam 3.191 4.664 7.855 6.701 9.794 16.495 59.3
Upper Khrysokhou Diversion 0.187 0.313 0.500 0.393 0.657 1.050 62.5
Conveyor & Branches 0.617 1.082 1.699 1.294 2.272 3.566 63.6
Irrigation Network 0.722 1.505 2.227 1.516 3.161 4.677 67.5
Groundwater Development Schemes 0.086 0.167 0.253 0.181 0.351 0.532 65.6
On-farm Works 1.444 1.671 3.115 3.033 3.509 6.542 53.6 1 Land Acquisition 0.170 - 0.170 0.357 - 0.357 - 0
Project Management 0.702 0.242 0.944 1.474 0.508 1.982 25.7
Evretou Dam Construction Supervision 0.295 0.290 0.585 0.620 0.609 1.229 49.6
Subtotal 7.413 9.934 17.347 15.569 20.861 36.430 57.2
Physical Contingencies 0.636 0.901 1.537 1.336 1.892 3.228 58.6
Price Contingencies 1.347 1.788 3.135 2.829 3.755 6.584 57.0
Front End Fee (0.25%) - 0.017 0.017 - 0.035 0.035 100.0
Total Project Costs 9.396 12.640 22.036 19.734 26.543 46.277 57.4
/1 Discrepancies due to rounding. - 21 -
F. Financing
4.28 The proposed Bank loan of US$16.0 million equivalentwould be repayable over 15 years with 3 years of grace at the standard variable interest rate and will finance 60% of foreign exchange costs or 34% of the total costs of the project. The Republic of Cyprus as the Borrowerwill contribute US$27.14 million equivalent or 59% of the total project costs including the remaining40% of foreign exchange costs. The beneficiaries will) by providing labor for establishmentof on-farm irrigationworks and 25% of the investmentof on-farm irrigation systems, contribute 7% of the total project costs. The project financing plan will thus be as follows: - 22 -
Table 4.2: Project Financing Plan /1
Beneficiaries Government IBRD Total Project Component Amount % Amount % Amount % Amount ------US$Million)------
Evretou Dam - - 10.59 51 10.10 49 20.69
Upper Khrysokhou Diversion - - 1.02 67 0.50 33 1.52
Conveyor & Branches - - 2.45 57 1.85 43 4.30
Irrigation Network - - 4.14 66 2.10 34 6.24
Groundwater Development Scheme - - 0.56 74 0.20 26 0.76
On-tarm Works: Investment 1.84 25 5.50 /2 75 - - 7.34 Incremental production costs 1.30 100 - - _ _ 1.30
Land Acquisition - - 0.43 100 - - 0.43
Project Management - - 1.79 78 0.50 22 2.29
Evretou Dam Construction Supervision - - 0.62 45 0.75 55 1.37
Front End Fee - - 0.04 100 - - 0.04
Total 3.14 7 27.14 59 16.00 34 46.28
/1 Physical and price contingencies included in each component; discrepancies due to rounding. /2 Investment credit of US$5.5 million will be supported by beneficiaries in the form of credit financed initially by Government. - 23 -
G. Procurement
4.29 The constructionof the Evretou Dam and appurtenantworks (US$20.69million), Upper Khrysokhoudiversion (US$1.52million), the conveyor system (US$4.3 million) and the groundwater schemes (US$0.76 million) will be done by contracts awarded through internationalcompetitive bidding (ICB). The materials for constructionof the irrigationnetwork (US$2.66million) will be procured in accordance with procedures acceptableto the Bank on the basis of evaluationand comparisonof quotations solicited from at least three qualified supplierseligible under Bank Guidelines (LIT). Agreement on the above procedureswas reached during negotiations. The vehicles (US$0.20 million) and office equipment for the project would be procured through ICB. Consultantsfor supervisionof dam constructionwere selected in accordance with Bank Guidelines.
4.30 The constructionof the irrigationnetwork (US$3.58million) and refurbishingof the existing governmentbuilding for the project office (US$0.13million) will be done by local competitivebidding (LCB) or carried out by the appropriategovernment department. The installationof on-farm works (US$8.64million) will be done by the farmers under supervisionof the WrDD. Since this component is to be financed by the Government through credits to the farmers, the procurementof the required materials (US$5.39million) will be done by LCB.
4.31 The allocationsproposed above show that, out of the total investmentcost (excludingland acquisitionand consultants)of US$42.37 million, procurementthrough ICB will account for US$29.93 million, through LIT US$0.20 million, and through LCB US$12.35 million. The financing by the Bank of these procurement items will be US$14.75 million under !CB, US$0.2 million under LIT, and no Bank funds would finance LCB. The bidding documents, including technicalspecifications for all works and supplies to be financed by the Bank and exceedingUS$250,000, will be approved by the Bank before issuance of tenders and awarding the contracts. Assurances to that effect were obtained during negotiations (para 7.01).
4.32 The Governmentwill make these procurementsthrough ICB and LIT in accordancewith the current Guidelines for Procurementunder World Bank loans. Domestic preferencewould apply to goods manufactured locally. The procurementprocedures applied by the Government in Cyprus for LCB were reviewed during appraisaland found satisfactory. The proposed procurement plans are summarizedas follows: - 24 -
Table 4.3: Summary of Proposed Procurement Plans
Procurement Method Total Project Component ICB LIT LCB Other N.A. /1 Cost …(us$------(US Million)------
Evretou Dam 20.69 - - - - 20.69 (10.10) - - - - (10.10) Upper Khrysokhou Diversion 1.52 - - - - 1.52 (0.50) - - - - (0.50) Conveyor & Branches 4.30 - - - - 4.30 (1.85) - - - - (1.85) Irrigation Network: - Materials 2.66 - - - - 2.66 (2.10) - - - - (2.10) - Civil Works - - 3.58 - - 3.58 _ _- ( ) (-) Groundwater Development Schemes 0.76 - - - - 0.76 (0.20) - - - - (0.20) On-farm Works - - 8.64 - - 8.64
-= - ( -) -(-) Land Acquisition - - - - 0.43 0.43
- * _ (-) (-) Consultants - - - 3.33 - 3.33 - - - (1.05) - (1.05) Project Office: - Building - - 0.13 - - 0.13
- C-~() - ( -) - Supplies - 0.20 - - - 0.20 - (0.20) - - - (0.20)
Total 29.93 0.20 12.35 3.33 0.43 46.24 /2 (14.75) (0.20) (-) (1.05) (-) (16.00)
Note; Figures in parentheses are the respective amounts financed by the Bank. /1 "n.a" means not applicable. 75 Excluding front end fee.
H. Disbursements
4.33 The proposed Bank loan of US$16.00 million would be disbursed for project costs, exclusive of all import duties and taxes, as follows:
(a) Construction of the Evretou Dam
- 85% of foreign expenditure.
(b) Construction of the Upper Khrysokhou Diversion
- 50% of foreign expenditure. - 25 -
(c) Construction of the Conveyor and Branches
- 75% of foreign expenditure.
(d) Irrigation Network
- 100% of foreign expenditure on purchase of materials and 100% of local expenditures (ex-factory cost).
(e) Groundwater Development Schemes
- 40% of foreign expenditure.
(f) Project Office Supplies
- 100% of foreign expenliture on purchase of vehicles and office equipment
(g) Consultants
- 30% of expenditures for consultant services for Evretou Dam construction supervision.
4.34 Assuming effectiveness of the proposed loan is August 31, 1983, the estimated annual disbursement would be as follows:
Table 4.4: Estimated Disbursements /1
Bank FY FY84 FY85 FY86 FY87 FY88 FY89 ------(US$ Million) ------
Annual 3.00 5.00 5.00 1.50 1.00 0.50 Cumulative 3.00 8.00 13.00 14.50 15.50 16.00
/1 It is expected that disbursements will be completed by June 30, 1989, and the closing date of the loan will be December 31, 1989.
A tentative disbursement schedule is shown in Annex 3. The Bank's historical disbursement profiles for Cyprus, covering the period FY71-81, were considered in formulating the aforementioned estimates. Disbursements for the proposed project are expected to be faster than the historical ones because the project's cost estimates and implementation schedule were based on tender documents and final designs of major works.
I. The Role of Women
4.35 The family farm is characteristic of the agricultural farming system in Cyprus with the average farmholding consisting of several small and often widely dispersed plots. Part-time farming is predominant due to the low income from farming, especially under rainfed conditions prevailing in the - 26 - project area. Ihis also results in underemployment thus forcing the male population to seek employment opportunities in the nearby Paphos area (40 km) and other urban centers. In those cases the woman often makes important decisions affecting farm operations while in others the woman commutes for employment. However, in both cases where farming is the main family occupation, almost all women significantly contribute to farming, particularly with fruit and vegetable production. The Government is paying increased attention to the role of women in agriculture particularly in greenhouse crop production and is including them in horticultural training programs.
J. Environmental Impact
4.36 The relatively closed irrigation system to be constructed under the project is not conducive to increasing the mosquito population in the project area. However, in case of any malaria outbreak in the project area, the Health Department of Cyprus is adequately equipped to handle it effectively. The improved irrigation system will help in stabilizing the aquifer and provide a more assured supply of groundwater. The use of plant protection chemicals and fertilizers is based on proven applied research and extension recommendations. Qualified extension staff train farmers and work closely with them in the safe handling of pesticides and other chemicals according to labeled recommendations.
V. PROJECT IMPLEMENTATION
A. Implementation Schedule
5.01 The project is proposed to be implemented over a five-year period starting in August 1983 and ending June 1988 (World Bank Chart No. 24570). Construction of the Evretou Dam which is the major project component would be completed by the end of 1986. However, the dam would be completed by September 1985 to a level that the runoff during the rainy season (September 1985 - March 1986) would be impounded in the reservoir and used for irrigation in 1986. In order to meet that objective, the Government in consultation with, but without commitment of financing by, the Bank has initiated prequalification of contractors for the construction of the dam on which work is scheduled to start in January 1984. The final phase of project implementation would comprise completion of on-farm works installations and construction of groundwater schemes.
B. Project Organization and Management
5.02 The Water Development Department of the Ministry of Agriculture and Natural Resources is the principal department responsible for planning, design and execution of government wcter projects although the overall responsibility for determining water policy rests with the Council of Ministers. The Ministry of Interior has legal control over national water resources and also administers water laws. - 97
Coordinationand Advsor_ Comi
5.03 To integrate government policies as they pertain to the project policies, a Project Policy and Coordination Committee (PPCC) will be established and chaired by the Director General of the Ministry of Agriculture and Natural Resources with the membership of the Directors-General (or their representatives) of the Ministries of Interior, Commerce and Industry, Planning Bureau, and the Directors of the WDD and DA. A secretary to the committee will be appointed by the WDD. The PPCC will be responsible for laying policies that will ensure timely implementation of the project and will meet, as and when necessary, but not less than once a year.
5.04 At the district level, the overall responsibility for management of water projects, whether for irrigation or domestic supply, lies with the District Administrative Officer (District Officer) who reports to the Ministry of Interior. Each government irrigation project is administered and managed by a Water Committee composed of the District Officer as Chairman, representatives of the WDD, DA and two to three members elected from the project beneficiaries. The Water Committee;
(a) makes recommendationson the development,conservation, management and efficient use of water resources;
(b) is responsible for overall management, operation and administration of the project;
(c) ensures proper regulation and use of water;
(d) sells water at rates decided by the Government and collects water charges;
(e) prepares the annual budget for the project works showing revenues and expenditures for operation of the project; and
(f) ensures efficient operation of the project according to sound agricultural practices.
5.05 Under the project, responsibilities undertaken by the Water Committee as indicated in para 5.04 above will be assumed by the Project Advisory Committee (PAC) which will advise the Project Manager in local affairs and ensure project implementation as envisaged. The PAC will be chaired by the Paphos District Officer and will include the Project Manager, WDD,DA District Officers and two farmers' representatives. The Project Manager will act as secretary of the PAC which will be the focalpoint for beneficiaries to address their views on matters such as operation and maintenance of completed works, water charges and cost recovery.
5.06 The aforementioned proposed organization structure is illustrated in World Bank Chart No. 24589 and is similar to the effective ones established under the recently completed Paphos Irrigation Project (Loan 960-CY) and the ongoing Vasilikos-Pendaskinos Project (Loan 1658-CY). 'rhe establishment of - 28 - the PPCC and the PAC, with the membership indicated in paras 5.03-5.05, would be no later than September 30, 1983 or such other date as the Bank may agree (para 7 01)
PrF2 Lct Works
5.97 1'heWDD has be n r4sponsible for tle planniig and iiesign of the project and would continue to be responsible for completion of designs, preparation of tender documents, and construction management and supervision during the implementation stage. Project implementation will be supervised by a Project Manager assisted by two Deputies, one for engineering and the other for agricultural aspects. An engineering section comprising a design unit and a construction unit will be established within the project. The Project Manager will report directly to the Director of the WDD. The appointment of the Project Manager and his Deputies will be a condition of loan effectiveness (para 4.14). The implementation of all major components of the project is discussed in the following paras 5.08-5.18.
5.08 Evretou Dam. The final designs and tender documents for the dam were prepared by Sir William Halcrow engineering consultants of the UK, in association with the Cypriot firm of A. Prastitis and Associates under the overall responsibility of the MANR. The same firm has been appointed, in consultation with the Bank, to supervise the dam construction (paras 4.15 and 4.21). The terms of reference for the consultants have been agreed upon during negotiations. The consultant will assist and advise the Government on bid evaluations and contracts' awards actions and be responsible for execution and construction supervision of all components of the dam.
5.09 Conveyor System, Groundwater Schemes and Irrigation Network. The designs and tender documents for the conveyor system and Sector 1A (818 ha) of irrigation network have already been prepared by the Government (paras 4.16- 4.19). Finalization of designs and preparation of tender documents for the groundwater schemes, the Upper Khrysokhou River diversion and Sectors lB and IC (970 ha) of irrigation network and upgrading of the existing government scheme will be done by the design unit to be establishied under the project. The administration of cont:-actsunder 1CB for the groundwater schemes, the conveyor system, the Upper Khrysokhou River diversion and the supply of materials, and under LCB for the construction of the irrigation network will be done by the Project Manager. The supervision of construction will be done by the construction unit of the project. The Geological Survey Department of the MANR will assist the WDD in the design of the groundwater schemes.
On-farm Systems
5.10 The standard designs for on-farn irrigation works have been prepared by the Government. The detailed designs for each farm will be prepared under the guidance of the Deputy Project Manager (Agriculture), who will also supervise construction of the systems by the farmers as well as land preparation and the establishment of fruit orchards and vegetables. The Government will provide medium-term credit to the farmers for purchase of equipment and materials for the on-farm works (paras 4.28 and 5.13). _ 29 -
Agricultural Research
5.11 Applied agricultural research programs in the project area will be implemented under the responsibility of the Agricultural Research Institute (ARI) and its stations in Paphos. Close cooperation betweern the ARI and the project's extension staff will be maintained, and feedback from farmers on production problems will be monitored by project management.
Agricultural Extension
5.12 The successful implementation of the envisaged cropping pattern in the project area will require timely and effective introduction of intensive horticultural production techniques. Farmers' response to market conditions and timely adjustment of production planning will depend mainly on information flow and recommendations by the extension staff. Therefore, the present extension staff in the project area of one beat officer and two agricultural assistants will be augmented by an additional beat officer, one specialist in plant protection and four agricultural assistants. The new staff will be selected from highly qualified personnel and will be in post no later than three months before the expected availability of irrigation water from the project. Assurances were obtained to this effect during negotiations that the additional extension staff will be appointed no later than January 1, 1986 or such other date as the Bank may agree (para 7.01).
Credit
5.13 The 640 farmers participating in the project will require medium-term credit to finance purchase of on-farm irrigation equipment, the smoothing of their lands and the establishment of orchards. As some of the farmers have adequate means of their own, as ascertained by a recent survey, it has been assumed that not more than 75% of these investments will be financed through medium-term loans, the balance being met through equity financing. Because of the slow increase in production costs and the expected profile of net cash flows to the participants, it is considered most unlikely that incremental production credit will be required during project implementation (1983-88). The credit requirements during project implementation are estimated at CZ 2.62 million (US$5.50 million) and will be supplied entirely from the Government's own resources (paras 4.02, 4.28 and 7.01). It has been assumed that medium-term lending to project participants will follow existing practices; i.e., loans for the above-mentioned purposes will be for eight years at 7% interest, with one-year grace for the principal. All loans will be secured by real estate mortgages except in the case of displaced persons; the Government guarantees such loans. During negotiations, assurances were obtained from the Government that it will make available to the LC, as and when needed, such amounts as are required to assure full development of orchards and vegetable farms established under the project (para 7.01), and that onlending to farmers will be made on terms and conditions and under arrangements satisfactory to the Bank. The availability of annual sums will be in accordance with the projected detailed project cost tables. - 30 -
5.14 Loan applicaticns by the participants will be made to the District Agricultural Officer (DAO) generally through artAgricultural Beat Officer (ABO) who is the local representative of the DA of thneMANR. Loan applications are forwarded to the DA in Nicosia for approval of their feasibility. Approved applications are recommended by the Director of the DA to a loan committee consisting of representatives from DA, the Planning Bureau, Ministry of Finance, the LC and the Cooperative Central.Bank (CCB) for final approval.
C. perat_ionand Maintenance
5.15 The project works including the dam, diversion and conveyance structures, groundwater schemes and the irrigation distribution systems will be operated and maintained by the Government through the WDD. The Government will recover full O&M costs from the beneficiaries along with about 50% of the initial investment cost over a period of 40 years (para 6.17). O&M of on-farm irrigation installations will be carried out by the farms under the guidance of the DA of the MANR. The annual O&M cost at full development is estimated at about CZ 355,000 or 25 mils/m 3 of water delivered for irrigation.
5.16 An O&M section for the project will be created within the WDD which will be responsible for O&M of all project works. This section will be headed by a qualified senior engineer and will have an adequate number of engineers, technicians, and supporting staff and equipment to perform the job. During negotiations, assurances were obtained that before December 31, 1986 (the fourth year of project implementation) the Government will prepare detailed O&M manuals for all project works and send those for the Bank's comments; establish the O&M section; and vest it with necessary executive, administrative and legal powers to perform its functions (para 7.01).
5.17 The O&M section will be headquartered at the Evretou Dam in the buildings vacated by the contractor and the supervisory staff on the completion of construction. The workshops and other facilities constructed by the contractor at the Evretou Dam will also be retained for O&M. The project office building at Polis will be used by DA staff for agricultural extension and operation of the on-farm works.
D. Accounting and Auditing
5.18 Separate accounts for the project will be kept by the WDD and other agencies involved in project implementation. Such accounts will be audited annually by the office of the Auditor General of the Ministry of Finance whose accounting and auditing procedures were proven to be effective under other Bank-financed projects. Audit reports will be submitted to the Bank not later than six months after the closing date of the Cypriot fiscal year, and assurances to this effect were obtained during negotiations (para 7.01).
E. Monitoring, Evaluation and Reporting Procedures
5.19 Independent follow-up of project implementation will be ensured by the Monitoring and Evaluation Unit (MEU) for all agricultural investments including irrigation projects in Cyprus which has been established recently - 31 - under the MANR and for which operating funds have been included in the 1983 government budget. The MEU will report to the Director General of the MANR and is composed of an agricultural economist, irrigation engineer and agriculturist. The MEU will depend primarily on the Project Manager and his staff for supplying all needed information to perform its functions under the project. Routine records will be kept on all project actions, programs, budgets and expenditures by the project's staff. MEU and project's staff will collect, analyze technical and financial data to evaluate the effects of the project, and follow up on its progress in comparison with the envisaged implementation schedule.
5.20 To ensure timely Bank action on project implementation problems during the construction period, the Project Manager will submit quarterly progress reports to the Bank through the WDD. In addition, a summary of other activities and project accounts will be submitted by the WDD on a semester basis within six months from the end of the reporting period and combined with the quarterly progress report. The project's draft completion report will be prepared by the Project Manager and submitted to the Bank through the WDD within three months of the project's closing date. This report will include an ex-post economic and technical evaluation of the project using the project information including reports prepared by the MEU. Assurances were obtained during negotiations on the proposed aforementioned monitoring, evaluation and reporting procedures (para 7.01).
F. International Commodit g m
5.21 None of the commodities to be produced under the proposed project is governed by international commodity agreements, and hence the Bank's Economic Analysis and Projects Department has advised that consultation with international commodity organizations is not required. It should also be noted that the increments are relatively small and, especially for tree crops, will take a long time to reach the expected full development levels, Consequently, the project's output of commodities is not likely to affect international prlces.
VI. PROJECT BENEFITS AND JUSTIFICATION
6.01 The primary purpose of the project is to develop presently underutilized water resources in a rather isolated and relatively underdeveloped part of the country. It will substantially alleviate present underemployment in the proposed project area, greatly increase participants' income, and augment Cyprus' horticultural exports.
A. Agricultural Production
6.02 The project is expected to generate substantial increases in agricultural production on account of:
(i) an expansion of the irrigated area following the increased availability of irrigation water (from about 230 ha to 2,000 ha); and - 32
(ii) a marked shift towards high-value crops following the introduction of advanced on-farm irrigation systems in conjunction with intensified extension efforts.
Without the project, the prospects for significant increases in cropping intensity and aggregate output would be severely constrained because of natural limitations to rainfed agriculture in a low rainfall zone.
6.03 In the case of annual crops, full development yields (Table 6.1) are expected to be reached three years after irrigation water becomes available to farmers. For most perennial crops, these yield levels are expected to be reached, in any given area, from 5-13 years after completion of physical works, corresponding to a 16-year gestation period for most perennials at the overall project level (year 2000). Expected without- and with-project performance estimates are tabulated below:
Table 6.1: Crop Areas, Yiel6s and Production
Area Yield Production Area Yield Production (ha) (t/ha) --- (ton) (ha) (t/ha) ---(ton)-- Without Project With Project …
Irrigated Crops
Citrus 162 32-45 6,960 600 32-45 23,400 Bananas 7 22 155 80 22 1,750 Deciduous Fruits 15 22-24 345 120 22-24 2,880 Table 3rapes 12 18 215 160 18 2,880 Vegetables 36 30 1,080 500 24-39 16,700 Avocados - - - 160 11 1,760 Table Olives - - 140 15 2,100 Almonds - - 80 8 640 Pistachios - - - 40 8 320
Pecans - _ 120 15 1,800
Subtotal 232 n.a, /1 8,755 2,000 n.a. 54,230
Rainfed Crops
Cereals 826 2 1,650 - - - Fodder 186 8 1,490 - - - Legumes 158 1 160 - - - Others 598 n.a. n.a. - - -
Subtotal 1,768 n.a. - - -
Total 2,000 n.a. 12,055 2,000 n.a. 54,230
/1 "n.a." means not applicable. - 33 -
6.04 The above with-project cropping pattern is indicative of the wide variety of irrigated crops that can be grown in the various parts of the project area. It should be noted that the cropping pattern includes composite groups, e.g., citrus, deciduous fruits, vegetables, the latter including some 30 different cacegories, and hence the variety of the cropping pattern is even larger than is at first apparent. The above crop mix is considered a probable initial development, given the most important agronomic, social, economic and market constraints. With many alternative options available in the face of changing constraints and with new introductions being made available regularly by the extension service, farmers' decisions until the year 2000 and beyond can, evidently, not be predicted with any precision. The above cropping pattern and yield levels are based on successful crop production methods already practiced by Cypriot farmers and constitute a realistic basis for making economic and financial projections.
B. Prices
6.05 As approximately three-quarters of project incremental output is expected to be exported, both farmgate as well as export prices (FOB) have been used; they are tabulated below. Both sets are expressed in 1983 values, and the producer pric- s shown below are identical to those applied in the project financial analyses. Different margins between the two price sets reflect unequal export marketing costs as well as differing shares of produce destined for export compared to its total production.
Table 6.2: Producer and Export Prices /1
Producer Price Export Price (FOB) (US$/ton) (C£/ton) (US$/ton) (CE/ton)
Lemons 200 95 335 160 Mandarins 250 120 345 165 Oranges 135 65 240 115 Avocados 840 400 1,415 675 Bananas 260 125 n.a. /2 n.a. Table Grapes 365 175 840 400 Table Olives 365 175 945 450 Pistachio Nuts (Unshelled) 2,500 1,190 3,675 1,750 Pecan Nuts (Unshelled) 1,020 485 1,575 750 Almonds (Shelled) 1,575 750 3,150 1,500 Apricots 420 200 630 300 Plums 315 150 630 300 Peaches 420 200 630 300 Vegetables, Early 365 175 660 315 Vegetables, Summer 200 95 355 170 Vegetables, Late & Winter 250 120 505 240
/1 Discrepancies due to rounding. /2 "n.a." means not applicable. - 34 -
6.06 In a number of instances, the above prices are based on historical Cypriot price series, adjusted upward or downward to reflect anticipated changes in export prices or seasonal specifics of project output (all citrus, all vegetables, olives and grapes). In other cases (avocados and deciduous fruits), expected European Economic Community (EEC) import prices were converted to export and producer prices by application of freight costs and import duties. Export prices of nuts (almonds, pistachios and pecans) are based on the US Department of Agriculture (USDA) import and export unit price statistics. It should be noted that the price adopted for each of the three vegetable categories represents the weighted average export price of about 10 different vegetables. In all instances, it was assumed that Cyprus' position regarding EEC import tariffs would remain the same,
6.07 It is considered that the above price sets are conservative and, in general, reflect the price outlook for the commodities concerned.
C. Marketing
6.08 Approximately 75X of expected overall incremental project output is expected to be exported, the balance being destined for domestic consumption. A considerable number of fruit and vegetable market studies are available, some of which were prepared for the Fruit and Vegetable Export Project (Loan 1988-CY), and deal primarily with the EEC markets. Although Cyprus' agricultural exports are mainly shipped to EEC nations, recently, markets in the Eastern European and Middle Eastern countries have been receiving increased quantities of Cypriot horticultural products,
6.09 All studies are cautious about future growth prospects in the aggregate for EEC fruit and vegetable imports from non-member countries. There is equal agreement that, wherever feasible, export oroduction should be shifted towards higher priced seasons. Although emphasis may differ, there is a consensus that avocados, table grapes and early vegetables appear to have better than average prospects. The findings of these studies were taken into account when formulating the proposed project. Tne studies mentioned above analyze import and export prospects on an individual commodity basis. Since the proposed project is expected to generate exports of more than 20 different commodities, it is clearly not possible to even summarize here the main findings for each commodity. Moreover, full production would be achieved by the year 2000, for which no demand estimates are available, and cropping patterns are expected to change according to market demand. Hence, any elaboration on market forecasts for the year 2000 is not realistic.
6.10 At full development, the project's estimated incremental export volume will be about 20,000 tons of fruits and 10,000 tons of vegetables. Measured against present or projected imDorts into the European and Middle Eastern markets, these quantities are exceedingly small. he proposed project's total future vegetable export increment by the year 1990, for instance, will be less than aubergine (eggplant) and courgette (Zucchini or summer squash) imports into West Germany alone in 1978. With respect to citrus (for which export opportunities seem less promising than for most other proposed crops), present Cyprus' exports of about 40,000 tons/year are about - 35 -
1.3% of EEC citrus imports. Citrus exports from the proposed project are estimated to reach 15,000 tons by the year 2000 which is well below the volume needed to maintain Cyprus' present market share. In summary, no market absorption problems are expected to arise from the project's production because of the relative insignificance of expected incremental export volumes as well as because of its earliness.
6.11 Main marketing problems could arise from the fragmented structure of the Cyprus fruit and vegetable export market, lack of coordination and the absence of a long-term marketing strategy. Exporters continue to act in a pronounced individualistic manner, foregoing the potential benefits of consolidating their efforts as they play into the hands of European importers. Equally unfortunate is Cyprus' exporters' traditonal orientation towards the UK market.
6.12 These problems are being addressed by the Fruit and Vegetable Export Project (Loan 1988-CY) through (i) the reorganization and consolidation of the fruit and vegetable trade in the form of a fruit and vegetable exporters' association that would effectively represent the industry vis-a-vis government and outside agencies; (ii) establishment of a Horticultural Export Development Advisory and Coordinating Committee (HEDACC) representing producers, exporters and government and which will be the delivery base for the new marketing concepts; and (iii) formulation and implementation of an export promotion strategy. Key aspects of such strategy will be the shifting away of export deliveries from the UK market to a central clearing firm on the continent (Rotterdam for fruits and Frankfurt for air-freighted vegetables) to gradually establish a permanent presence in the EEC market. The adoption of a common brand name for all Cyprus' produce marketed overseas is considered an important element of the overall market penetration strategy. Coordination of effort will not be limited to the export side only, but will have to include the integration of growers' activities with the quality, quantity and timing requirements of the market. Thus it is clear that the marketing of the production generated under the proposed project is closely linked to a successful marketing organization as envisaged under the Fruit and Vegetable Export Project (Loan 1988-CY). In this context, progress in implementing the marketing aspects envisaged under the project would be reviewed by December 31, 1985. Assurances were obtained during negotiations that, following the above review, such steps as agreed with the Bank would be taken to ensure adequate organization of horticultural marketing channels (para 7.01).
D. Beneficiaries
6.13 Employment opportunities in the proposed project area are presently limited, and many farmers seek employment elsewhere to augment their present farm incomes. Approximately 640 families or 3,500 persons are expected to benefit directly from the project and will be fully employed therein. The project is also expected to generate, at full development, additional on-farm part-time employment corresponding to about 502000 man-days/year and a similar volume of part-time employment in packinghouses and associated activities. - 36 -
E. Producer Incomes, Cost, Rent Recovery and Financial Impact
6.14 Without- and with-project income and expenditure flows for three major farm-size groups were prepared (Annex 4). On the basis of these projections, it is expected that farmers in each group, while receiving very substantial increases in disposable family incomes, will also be able to repay, with interest, medium-term loans as well as to pay the proposed water charges (para 6.18).
6.15 Producer Incomes. Net average farm incomes at full development (year 2000) for each of the project area's three main farm-size groups are expected to increase from three to 10 times their present levels respectively. The disparities between these anticipated growth rates are mainly caused by the fact that the smaller farms are currently more intensively cropped than the larger ones, making for smaller increments in the case of the former. Differences in cropping patterns and long-term profitability among farm-size groups are additional causes of differential growth rates. The estimated distribution of agricultural incomes, without the project and with it, is tabulated below:
Table 6.3: Agricultural Income Distribution
Average Farm Size Number of Farmers Farm Income Total Area Income Class (ha) No. % Without With Without % With x (C£) …(C '000)…------
0-1.3 230 36 450 1,965 103 14 452 8 1.3-5.3 295 46 1,400 8,780 413 56 2,590 46 5.3-13.3 100 16 1,700 20,262 170 23 2,026 36 > 13.3 15 2 3,100 38,060 46 7 570 10
Total 640 100 732 100 5,638 100
Sources: Agricultural Census and Mission Es-imates.
6.16 Cost Recovery. Approximately CE 17.95 million in current prices (US$37.70 million) or about 81% of total project costs would be for public irrigation development. Discounted in constant 1983 values at 9% over the lifetime of the project, it was computed that the average capital cost of water would be about C£ 0.135/m3 (US$0.28/m3 ), whereas the average operating and maintenance cost would be about CE 0.020/m3 (US$0.04/m3), hence making for a total cost of CE 0.160/m3 (US$0.32/m3).
6.17 In most irrigation areas in government-controlled Cyprus, water charges per cubic meter are presently (1983) CE 0.020-0.025, after having been increased in 1982 by as much as 100%. As for the proposed project, in view of the expected development over time of cash earnings in the various farm types, and especially in the smallest one which is relevant to 37% of the beneficiaries, it is recommended to limit water charges in the initial three years of operation of the irrigation system constructed under the project to a - 37 - level slightly above the average cost of O&M which is presently estimated at CE 0.025/m3 (US$0.05/m3). Thereafter, these would be increased gradually to recover, besides the full O&M cost, 85% of the capital costs by the fifth year of the sNstemls operation and be maintained at this level of CE 0.135/ m3 (US$0.28/rn) in real terms. As all farms will be equipped with water meters, this will be technically feasible. At a discount rate of 9%, the Net Present Values of the capital costs and of the stream of water charges indicate that over 40 years about 53% of the capital costs would be recovered. The overall water cost recovery, including capital as well as O&M costs, would be about 60% (Annex 5).
6.18 Assurances were obtained duiringnegotiations that (i) the Government would undertake the appropriate studies to determine the proposed water charges for the 1986 season (first year of irrigation in a part of the project area) and communicate these for the Bank's comments no later than December 31, 1985 (para 7.01); and (ii) upon the availability of irrigation water an irrigation water charge would be collected from project beneficiaries and be reviewed thereafter annually during the month of March as decreed by the Council of Ministers (Decree No. 232/82 of February 25, 1982) so as to recover the full O&M costs and at least 50% of the capital costs for the purpose of irrigation in the project areas at an interest rate of at least 9% p.a. over a period of 40 years.
6.19 Farmers are expected to require CE 2.62 million (US$5.50 million), or about 12% of total project cost, in medium-term credit for the purpose of financing 75% of the cost of establishing the on-farm irrigation works, smoothing their fields, and establishing orchards. Cash flow tables prepared for the three major farm types in the area indicate that farmers in all categories will, in principle, be able to repay these loans fully, including interest charges of 7% p.a., over a period of eight years.
6.20 Rent Recovery. The initial water charge of CE 0.025/m3 is about the maximum that can be charged under the assumptions of the most vulnerable farm model (farm model 1 of 0.85 ha), which represents the bulk of the small and part-time farmers in the project area. The proposed long-term water charge of CE 0.135/m3 (para 6.17) would recover practically all of their rent (95%; see Annex 5); nevertheless, adequate incentives are present as imputations have been made to all quantifiable factors of production. Under the proposed water charge structure, farmers of various farm sizes would pay to the Government between 42% and 95% of their expected discounted project rent (Annex 4).
6.21 Estimated Financial Impact. The incremental external debt service of the proposed project being about US$5.6 million/year, the annual equivalent of government financing amounting to US$2.7 million and an annual O&M cost of about US$0.7 million, total outflow will be about US$9.0 million/year. By the fifth year of project operation, the total receipts from water charges will amount to US$3.6 million/year.
F. Economic Rate of Return
6.22 The principal benefits at full development (2000, year 18) will arise from the expected incremental crop production (US$11.8 million/year in - 38 -
1983 prices), more than three-quarters of which are from perennial crops (US$9.4 million/year) and the balance (US$2.4 million/year) from annual crops, mainly vegetables.
6.23 The rate of return to the economy (ERR) has been calculated on the basis of the anticipated crop areas, cropping patterns, yields and farmers' costs of production per hectare under improved cultivation practices. No investment costs or incremental operating costs were excluded from the ERR computation. The following assumptions underlie the rate of return computations:
(a) All benefits and costs were calculated in constant mid-1983 values and adjusted for future changes in real prices wherever appropriate or feasible. Benefits and costs, where applicable, were adjusted for all apparent transfer payments such as taxes and subsidies;
(b) Border prices of tradable outputs were derived from the Bank's commodity price data (citrus and bananas), from Cyprus' export data or EEC import prices (avocados, grapes, olives, deciduous fruits and vegetables) and from US trade data (pistachios, almonds and pecans). Where possible and appropriate, these prices were adjusted for earliness, grade differentials, handling and transportation costs.
(c) All imported inputs such as fertilizer, chemicals and fuel were valued at their estimated 1983 border prices. The shadow wage rate was made to correspond to the actual wage-rate structure for male and female labor in the project area and which is very close to national averages. The proposed project's peak labor demands are well below supply.
(d) All incremental production and farm input utilization were phased in accordance with the anticipated buildup of the areas cultivated and the projected yield developments. It has been assumed that, for annual crops, final yield levels would be attained after fours years; for perennial crops, final yields have been assumed to be reached after 15 years for the entire project area.
(e) The analysis was based on a project life of 25 years. Specific investments (on-farm irrigation equipment) were assumed to be replaced when necessary at the end of their useful life; no salvage values were imputed. The without-project situation was estimated to generate net benefits about 20% over present levels, for many perennial crop stands are still young and their yields would increase significantly without additional investment.
6.24 Based on these criteria and the data shown in Annex 6, the basic ERR of the project is estimated to be 13.9%. The sensitivity analysis shows the following ERR values for deviations from baseline project performance: - 39 -
1) Base value 13.9 2) Benefits down 20% 9.9 3) Costs up 20% 10.6 4) Benefits lagging 1 year 11.6 5) Benefits lagging 2 years 9.7 6) Costs up 20% and benefits lagging 2 years 7.0
6.25 In addition, the switching values of key variables have been calculated. For example, benefits can decrease by about 20%o or investment costs can increase by about 25% before the overall rate of return would become equal to 10.0%.
Other Benefits
6.26 The large, though slowly developing, exportable surpluses will give rise to a substantial increase in the activities of fruit and vegetable packing industries and in industrial branches which supply the packing materials for these industries. Similarly, the project will lead to measurable increases in port and airport activities (Limassol and Paphos, respectively).
G. Project Risks
6.27 The project has been well prepared and the availability of detailed designs makes it possible to proceed early with project execution. There are no unusual technical risks associated with the project, and those which are normally associated with the project benefits, costs and development period have been evaluated in the sensitivity analysis. The probability of water supply deficits occurring in the project area is discussed in para 4.25.
6.28 The greatest risk threatening the successful outcome of the project would be the absence of improvement in existing export marketing systems and procedures and in devising a long-term fruit and vegetable export strategy. Minimizing this risk is, in general terms, the principal institutional objective of the ongoing Bank-assisted Fruit and Vegetable Export Project; hence, close supervision of that project will be essential not only for the sake of that project, but also for the successful outcome of the presently proposed one. Whereas, in the first year of operation of the export project, little was achieved in institution-building, the project is now proceeding satisfactorily.
VII. AGREEMENTSAND RECObMENDATIONS
7.01 During negotiations, agreements were reached and assurances obtained on the principal issues referred to in Chapters IV, V and VI (paras 4.14, 4.15, 4.20, 4.29, 4.31, 5.06, 5.12, 5.13, 5.16, 5.18, 5.20, 6.12 and 6.18). Subject to the conditions of effectiveness described in para 4.14, the project is suitable for a Bank loan of US$16.0 million to the Government of Cyprus on the usual terms. CYPRUS
KHRYSOKHOU IRRIGATION PROJECT
Detailed Cost Estimates /1
% of % of Foreign Total Base Local Foreign Total Local Foreign Total Exchange Cost T …'()W) ------
1. Evretou Dam General 179 179 358 376 376 752 50 Diversion Works; - Coffer Dam 57 86 143 120 180 300 60 - Tunnel 200 300 500 420 630 1,050 60 Grouting: - Alluvial 199 349 548 418 733 1,151 64 - Curtain and Dam Foundation 732 1,089 1,821 1,537 2,287 3,824 60 Eb,bankment 1,250 1,903 3,153 2,625 3,996 6,621 60 Spillway 237 281 518 498 590 1,088 54 Outlet Works 191 330 521 401 693 1,094 63 Access Roads 78 79 157 164 166 330 50 Budiaings 18 17 35 38 36 74 49 Day Works 50 51 101 105 107 212 51 a Base Cost Stubtotal 3,191 4,664 7,855 6,701 9,794 16,495 59 45 °
2. Upper Khrysokhou Diversion Civil Works 82 68 150 172 143 315 45 Conveyance Pipelines 105 245 350 221 514 735 70 Base Cost Subtotal 187 313 500 393 657 1,050 63 3
3. Conveyor and Branches General 32 18 50 67 38 105 36 Main Pipeline 366 656 1,022 767 1,378 2,145 64 Knrysokhou East Branch Pipeline 29 48 77 61 101 162 62 Khrysokhou West Bra^,ch Pipeline 54 93 147 114 195 309 63 Khrysokhou South Branch Pipeline 8 12 20 17 25 42 60 Khrysokhou West Lower Pond 31 64 95 65 135 200 68 Khrysoklhou West Upper Pond 41 80 121 86 168 254 66 Khrysokhou East Lower Pond 34 66 100 71 139 210 66 Break Pressure Tanks 22 45 67 46 95 141 67 Base Cost Subtotal 617 1,082 1,699 1,294 2,272 3,566 64 10
4. Irrigation Network Sector 1A (818 ha) 322 669 991 676 1.405 2,081 68 Sector IB (758 ha) 298 619 917 626 1,300 1,926 68 Sector lC (212 ha) 102 217 319 214 456 670 68 Existing Scheme (200 ha) ------Base Cost Subtotal 722 1,505 2,227 1,516 3,161 4,677 68 13 % of % of Foreign Total Base Local For Total Local F,,,ign Total Exchange Cost -----… ((CE '000)-- … -(USg'oo000)…_=
5. Groundwater Development Schemes Construction of Boreholes 26 38 64 55 80 135 59 Construction of Pumphouses 20 20 40 42 42 84 50 Supply and Install Pumps 7 18 25 15 38 53 72 Well Development 4 4 8 8 8 16 50 Supply of Electricity 19 29 48 40 61 101 60 Pipelines 10 58 68 21 122 143 85 Base Cost Subtotal 86 167 253 181 351 532 66 1
6. On-Farm Works Including Smoothing and Planting On-Farm Installations: - Area IA (818 na) 266 617 883 559 1,296 1,855 70 - Area 1B (758 ha) 247 572 819 519 1,201 1,720 70 - Area IC (212 ha) 97 244 341 204 512 716 72 - Government Scheme (200 ha) 10 10 20 21 21 42 50 smoothing of Land 100 100 200 210 210 420 50 Planting Orchards 341 60 401 716 126 842 15 Production Inputs Orchards 142 25 167 298 53 351 15 Planting Vegetables 241 43 284 506 90 596 15 Base Cost Subtotal 1,444 1,671 3,115 3,033 3,509 6,542 54 18
7. Land Acquisition for Project Facilities Evretou Dam and Reservoir 60 60 126 126 Diversion and Conveyors 60 60 126 126 Distribution System 50 50 105 105 Base Cost Subtotal 170 170 357 357 1
8. Project Management Management and Engineering 304 120 424 638 252 890 28 Administrative 129 - 129 271 - 271 - Facilities 66 122 188 139 256 395 65 On-farm Irrigation System 122 - 122 256 - 256 - Agriculture Extension 81 - 81 170 - 170 - Base Cost Subtotal 702 242 944 1,474 508 1,982 26 5
9. Evretou Dam Construction Supervision Staff: - Expatriate 63 252 315 132 529 661 80 - Local 225 - 225 473 - 473 - Panel of Experts 7 38 45 15 80 95 84 Base Cost Subtotal 295 290 585 620 609 50 3
Total Baseline Costs 7,413 9,934 17347 15,567 20,861 36,428 57 100
10. Contingencies Physical t36 901 1,537 1,336 1,892 3,228 59 Price 1,347 1,788 3,135 2,829 3,755 6,584 57 27
Total Project Costs 9,396 12,623 22,019 19,732 26,508 46,240 /2 57 127
/1 Discrepancies due to rounding.
72 EKxcluding front end fee. - - 42- 204EIC02 Page 1
(CT.)
B-s Cots Puce~Curt, on, F-s.uo 8.,rr-
it W,ts Cost N.. if IsIs 1919 1919 1985 1944 1947 TsO,. Q13 091 1uI d-to
4. a04984 3517298 I 49,42-0 d9,425.3D 89.42811 89.42,1 - 251704. O 329.11,1 21.1 173,851.1 894.2 5,209.0 12,161.4 19,84t.5 3733.01, -511 8,o.
.- %sLsl14C.1274 MV8r'NGENCC8S 92,311.2 94,64140 231,484.4 108.590,5 - 15,030.1 8297.85354.1 517.5:1.i Fore- 6E,uru - 45,159.4 41,111.1 50,140.2 54,295.1 177215.1 - 0.4 1.1
i. COF' DAM ~~~1.1-1,50990.000 144339.0 542,590.0 - - - .42,144.2 1.4Z3,W47.43.1 S335.24.C tiss., 1on5,.onrc,es - 4.~~~~~~~~~~~~~~6000.871,1.1l, 77,111.1 - 1.1 Iu,l4. - 594.0 38,440.4 - - 9,220.4 - 4.0 23.5317,
442,, Lo ik3.Ls14 £41841091108 54.54910 7021361.3 751921.4 1,413,531.141.1~ 4,5,5-.15 ,4o4i4,,ruru on 00~~~~~~~~~~~~~~~~~~~~3,936.1,401,414.8 - - - 481,152.8 -1. 11
is-, 21408I18W0.3540. 5114. 641,594.1 1,423,547.041.1181.4,52.1 ~~~~~~511~ ~ ~ ~ ~ ~ ~ ,090 1ril0 -77,110.1 -63.1 44,21.1 P,i'n ,3984!094s14 189,0~~~~~~~~~~~~------38------.8------~1 S- i7. 01 001,.IK414,184091213 54,543,0 112,361.4 - -- 158,21.4 i4Z43,531.14.1 4-05,32. , 0-4' .94 - 21936,0 421,496.3 -4-5 1.523-
i. hL2.4 25-121 .,25301,0. 010591 - - 541,500.1 1,291,133.163.1 241,~.
9,1.4140044.AerA,es ~ ~--- ~~~~~~~~~----- 9.17 41,8 2------. - ---- ,4.------7 44----- 10-41214C111I1G 11.4T180941E 144,121'.3 53111,2 - 71-1,414.4 1,281,,93.1 61.7 1c,e,or1,436414 ~~~~~~~~~~~~~~~~~~~106,241.3301,220.48 4,6, 2.0441 441'1DM 034714111 4-5 1551 - 455,25. 910,190.1 355,5.1 -1,021,30,1. 4,334,211111.1 1.361 7,.so,4,u,. - - 44,031,5 121,515.1 10,2~~~~ ~ ~~~~~~~~~~~- 11151.1 ~ ~~~8;.7.5- 91 . - 3,49e.4 141,22u.. 122,13. - 3,426.0 -13.6 1~7761 7 S,-fAs10 141003443CO11411808181 554,121.61.1611,21.9 435,741,5 -73 ,1, 4,344,313,129.4 i.i> 1..u 44 ~~~~~~~~~~~~~,,36,oe- 2~~~~~~~~~~~~~~11,42. 711,305.6 33,1.0 ,2.9. .1 . 2 4 1Tt.ak.2 0 5S.-19,251.31,321,OO0.1 455,213, - 340.500.1 , .l. 61.7 1.411.254. F,i 4Co,ts,uucz- - 80.3 15 198814 43281.5 - 5,215.1 -0 - 19,71 114204192i11,224.0 316,717,5 -.1. 2i,14.24.
4 4 -X4C 11.14GEN01 '21,741,37.7.4.d49,1 4365,741.5 -23,0.55.5 6.2,4504.; 9,-4,4 -- 437.413,71.054.028.4 340.0i1.5 -1,941,321.7 - i ,,- "N'RE 1%~~~~~~1-217.511.427,671 532,119119118.0 -,6.24.1518,9.O 3.152,940.0 7-519-.31. ,1.1 ,110, 'i,4.'1w.4i-94su. - ~~~~~~~~~~~~~~~~~~~~~~~~-61461.8236.149,1 80,1?4,0 - 7.845.6 0 F4.I CL4I st-,,4 -31,641 .4 39178.09, 138,281.5 414.951,0 6D4.1-137,~443. 1 3 isoT k,,Li,Ni ,,9T18G04718t AZ! 74.7 21,53C967.3 79132SB.1 - ,997,419.6 7.140.SS17.361.173 31. ri,,,or. 8 ,,o,4- - - ~~~~~~~~~~~~~~~~~~41109.14,1.521.145.5 415,527.7T -2409,712.4 1.0 1.1 'FILLVW~ ~ ~ ~ 195621 172,015 - 12.757.0 194.106,1 11,244.0 SIB51.04. .1918,2271.54.3 231.190.,1 ?Insi ulr54u,,.- 16 .140.6 1.124.0 - 56.763.6 -,. '059538 4,4.4 lot,,uu,.c,o. 2,738o8~~~~~~~~~~~~~~~~~~~~~~034.4 2,44,9 7,8. ii
414*L44IiN147841 7>7143482191S 19,52 14.24,31. 51 . . - 066,351.1',107,227, 5!'4' .~ - 90, 70.. 144.97 7,536.9 341,5s1,1 9044.6.116900 .onA44n 521214 1-5224.263421.0K~ 44I4 CLI-4,4..i - 773234 :4 .9 1. 4 3 is-7441. 74116110C74128E0C1E8 K0.6 .0 650,949.4 . 34413.4..4 4 '4-io-0,u,4 4 .2,7-4 412,447,4 C
9..c11C1, ,4u,.0 i 2o50 -15,725.0 5.
- - ~~ ~ ~ ~ ~ ~ ~~~~~~~------5------i,O4Tt 14.711 1 ',71.,~2; -CIS -139. 345.90,1 354,5 ',Oi. 1-a3.4 97.1MIK 1i 34,? - -441 1 7902S.0 1, U
4 t,1,.9 lb 48385I11 -O61 - 4201'A.2 7'591- 5420 '05 1.
111.600 I 412,271, 37,292.1 .003.6200 23,21.9. 3c0. 10,3394 L i- 1797 3,7219.2 44.116 A 0 ,0L ~~~~~~ 4~~~~~402,4 4,716.21,581.3 14.4,2-95. ~
71 181N74 918 129714G8N7lE3 41,141.4 41.100,5 - '>25, 4 42894.850.3132. K,.4.2 444 72~~~~~~~~~~~~~~~~~~~~:3S.3'V,39. 77SC.51076.200 1 :51.17 :- 45,2.1 .. 301 ,419454 3 4.0 750, 4,~~~~~~~,41l 1.444.,,44 - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2,532.0ll50.il. .92.0
4 ,,,.,.r4. ,4uLJN ON1GECE l14.15.9 730,414.4 ?,5.0 10,
4.71971738910024 51 4,01,191.4 350,l30.0 9213.73310. 2.56I0Ol .lns,i Oo4Cuez 35.880,2C 35,304.2 70.0 2,0. 1,,co14o4,44e.,444, - 2~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~15,213.7115,2382 7. .44,,7.
S,c:-Ic. 191042140-71N14E0921S 500,73.1 510,120S.7 921's.431 .01 752 " 1.444444 353,167.6 151,147,1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'1715~1 i-.11E144 114171 71.l< 1 .1, 1,561, - 0111 141,43c 267,C
74,.i,o1~ ~2u,,.nie,s,,i ~ ~ ~ ~ ~ ~ ~ 4,11,. ~ ------9 ------~~w'A. .5 14,63".1 1. v C~~~~~~~~~~~6,215
rPu,e,i,,4,.,43,,44e ~;4~ 11,9,1 C! 3 I1.0
F-, -o,,-c,- 93, 31 21470,4 il6 .1,157 11-Tha 1471.41153I1147181497111 Ur,A90.3 "<5,D 77.217.742 344,95 , 137 .9.51.1
30141 6182021'94420',57 2 7 . c.7243,92,1 . -. 2 . I.k88.183 431 70292V992 7278.1. 8E,.49 '4' 24' 4.2 41 .6
17,- 1o-t4s- -e -1 .7471.9 12,338.7 6,903. 17.543,1 40.3 3,41
F-,,4 ic8r - 44,73.4 47V.9,1 5-045-1 - 43,917.9 - 0.-I 30 -4 3- 03NNFX26
F. 6449040 0322 am 99l4 333.3 .4 - 5942 2,4. .1. - 33K1,334.7 43,222.9 MS, 22,43.2
P"3. C2,44o.9W-34. 1223 2.3 - 2524,42. ,2.
346-249, I63229263 23673633F3 6,952. 14,422 ,346 - 3,532,9 26424 93 4,422.4 4199463 64444 - - ~~~~~~~~~~~~~~~~~~~~~~,46.0327.3 2,034.5 23.443,4 D. 3639940 633 SFd PM44 24,34641,342 34:4,3 94W,44, ,3,24, 222,449. 6422 sa2.O 69.34~.4433 -1944400,3 3544.3 233.2 92. 3,4.c 9 C,t2 .- 2,149789.6 9,225.4 ,2,343. I 3: 712.E.272
49,,,,.2 2324433494,4, 54,2 2,494,2~ ~~~~~~~~~~~~~~~~~~~~~-444. .2O49.O.
29.,4,2C. U -4,4 - .247." 4,9.~ .443244423,42 ~ ~ ~~~~~~~~~~~~~~~~~~------24-4224 -2,24 4 ------3------7.20,2I 42426 24262232 4,934 2, 4 432.,994 4z .92,.33 '-743.32. E1942,49 .2 . - 2 47.222 3 .4232 1~5.
2.1.2,,~ ~ .292,2499,093 ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~5,1 r,92, . 4, 26.2
2.2,24pW Wo41C.v.100:3 2204,,4,,994O -4,442 9. -,2 . ,i,o04,2,244214244 ~ ~ ~~~~~~~~~~2,5,632...... ~~~~~~..9. ... ------9--
3 2 4.22222122 3.2 235-.4430 2,2209,2 ,4o ,0 2 .2.41114249.9.9.992,11 117 2 0,742 - ,4, 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~90
.224930 ------.-3------023.331., 1,~~~~~~~~~~---
22 449 14lIE 461, 1,. 422232 , -4225 .~~~~~~~~~~~~~949 203.4 223,4,2~~~~~~~~~:0.O,: .;,!.
- 2,22----2 2,2- 2.------S,B , 'ig IDW141 2,21. 22,21 49t 3.-36 499922 -. 2212 9322
p92m1,2.422,,11E IS4.. 4 .5 VAL
~~~2,14,0.2490I2.449.2l4.~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~J8-46~ ", .
A19E14 2,Ml923,440 i.. . 4 49,22C1 .9
4.42326 334104 44649CIE2353244 24 4
4. 24244263434-294 934 - 2 14 3
2. -- 26 24 .2 1,3 , 4.1,o.~3~v ..- ,2 2 CIE9. IN91224,42,4 2, 232, 10,122. l,O41. C, 3
F.9.3C7234 2I9T.2 ORD"93 2,334-42,560 ;3. 2 ol- o:lo
Fz2-4342422c24 249224634241 A .42 C.04 2 E, 9-4'6 463462 252-F2 124i < :. 841.2,4.
24-,122*,6332423032 21-914 221.
9. 2-622363446 CM4123 425 .20 2.1., 012 .. 7.2a2.2, 2:3- v.
9,6-49240466 23T220I323 3 34. 62
4. 44457433T24144 0420. 25 43 4.922 2 o1 - 2422 3
944.,4j 294399UMC23 9 44214 99099 2oooo 22 .44 1 3 2 4,4- 4a2264.226 26972963242224 -0 x .
2 300926442 363246363 L 3493462332 9 4 ,2 222~ I, 9094044 20.44,442-O,, o I ,7333
4919.09922490194940144 . - . - 2-9-02---
99919 4943,4. 22.349,2 22,325.2. 4,0 O.
9,09. 44444049090114 ------2-434,4 2,629.2 ------45.2 2,29-----2.2-
999-9,63649234 . ,5142.29,2'45 - 4.3 3.2 -44- ANNEX2 Page 3
N. SUPPLYDF ELECTRICITY 6,000 8 - 48,000.0 48,000.0 131,024.060.0 28,800.0 PhMsicalCor.tinter.cies - - - - 4,800.0 4,000.0 - 60.0 2,880.0 Price Cof.tLor,eecies - - - - - 158042 iS,804.2 - 60S0 9,482.5
T Sub-otui 1NCLUGiNGCONTINGENCIES - - - - 60.604.2 63,604.2 131,024.060.0 41i162.5 Foreinr Exchange - - - - - 41,162,5 41,162.5 - 0.0 0.0 N. TIPELiNES 2-15 8,000 - - - - 606000.0 60,000.1 185,617.384.7 57,600.0 PhosicalCor,tinsercles - - - - - 10,200.0 10,200.0 - 14.7 8,640.0 Price Continser,cies - 23,406.9 23,406.7 - 84.7 19,827.0
Sub-TotalINCLUDING CONTIN1ENCiES - - - - 101,606.9 101,606.9 185,617.384.7 86,067.0 Forelgr,Excharnse - - - - - a64067.0 16,067.0 - 0.1 0.0 0. NANAGENENTAN ENGINEERING 2,500-50,OOO 50 35,000.0 111,000.0 111,000.0 96,000.0 71,000,. 424,000.0 1,024,398.328.3 120,000.0 Ftict Cor,tir•,roies - 350.0 6,465.8 14t971.4 20,574.6 21,251.8 63,613.6 - 19.2 12,211.S
Sub-utai INCLUDINGCONTINGENCIES 35.350.0117,465.0 125,971.4 116,574.6 92i251,. 487,613.6 1,024,398.327.i 132,211.5 Fuleiae, ucfhorise - 20,204.0 42,330.0 45,395.1 24,286.4 - 132,211.5 - 0.0 F. 6D0NIS 1T10VE 2,,00-6,000 40 13000.0 29,00G.0 29,000.0 29,000.0 29,000.0 129,00,0 314,340.9 0.0 0.0 PFice Cor,tir,iencies - 130.0 1,689.3 3,911.4 6,215.2 8,6503 20,626.3 - 0.0 G.G
Si4>-TotaliNCLUDING CONTINGENCiES 13,130.0 30,689.3 32,911.4 35,215.2 37.680.3 149,626.3 314,340. 0.0 0.0 C. FAL:LITIES 506-75,000 39 89.900.0 59,100.0 13,000.0 13.000,0 13,00O.0 188,000.0 421,790.664.9 122,100.0 PhssucalCortir,sencies - 5,450.0 3,650.0 1,100.0 1,1000. 1,100.0 12,400.0 - 55.3 7,350.0 Price Coritirger,cies - 953.5 3,655.2 1,901.8 3,021.9 4,220.4 13,752.0 - 63.5 8,733.3
Sob-TotaiiNCWflING CONTINGENCIES 76,303.5 66,405,2 164001.8 17,121.9 10,320.4 214,152.8 421,790.664.5 130,183.3 Frrei s•r Enchanse - 62,311,9 43,774,5 9,90.9 10,686.0 11,434.0 130,183.3 - 04 . h. ON-FARMiRRIGATION SYSTEM 2,500-7,000 36 10,000.0 22,500.0 22,550.0 27,500.0 37,000.0 121,500.0 301,140,0 0.1 0.0 Price Conctnrerncieo - 100.0 1,310,6 3,034.7 6,322.4 ,1,074.9 21,342.7 -0.0 0.0
Sob-TotalINL0 2II0GCONTINENCE10 10,100.0 O23,110.6 25,534.7 35,822.4 48,074.9 143,342.7 301,140.0 0.1 A 1bR7CULTURi EXTENSION ,500-10,000 20 6,000.0 12,000.0 12,000.0 I2,000.0 39,000.0 S1,0000. 205,090,1 0.0 0.0 FriceOoJr,toar,sncies - 60.0 699,0 1,610,.5 ,571.0 11,673.5 16,622.7 - v.v ou.
Sub-TotalINCLUDIN CGNTINGENCIES 6,060.1 12,099.0 13,61?5 14,571.0 50,673.5 97,622.9 205,090.1 0.1 1.0 STAFF 400-50,000 64 77,200.0 154,400.0 154,4000 154,000.0 - 540,000.0 1,268,050.846., 252,000.0 Price Continsen,cies - 772.0 8,993.8 20,825.1 33,005.1 - 63,596.0 - 46.7 29,696.1
Sjb-Tiotl iNCLUDINGCONTINGENCIES 77,972.0 163,373.8 175,225.1 187,00G,. - 603I,.56.0 ,260,050.846,. 281,696.1 ForeisnEx.chaole - 36,360.0 76,194.0 81,711.2 07,431.0 - 280,696.1 - 0.0 0.0 U. uISTS bo PANELOF EXPERTS 7,500 6 7,500.0 15,000.0 15,000.0 7,300.0 - 45,000.0 104,150.265.v 30,250.0 ice Cutrlin•ercas - 75,1 073.8 2,023.2 1,607.4 - 4,579,3 - 05,0 3,892.4
Sub-TotalINCLUDINC CONTINGENCIES 7,575.0 15,073.0 17,023.2 9,107.4 - 49,579,3 004,158.235.0 42,142.4 Foreigr,E.rchare - 6,430.0 13,492.7 14,469.7 7,741.3 - 42,142.4 - 0.0 3.0
Total INVESTlENTCOSTS 405,799.03,334,129.9 6,36,8008.8 3,944,064.9 3,291,213.0 17.347,015.6 42,509,965.357.2 9,924,839.6 Phbs;cal Co,,tir,oer,c5ie - 24,527.4 314,437.0 643,136.9 317,713.4 247,057.3 1,536,S72,0 - 5.6 900,970.5 Price Contir,ercie; - 4,233.3 212,529.0 945,753.i 913,379.7 1,059,079.5 3,134.975.2 - 57.0 1,708,31u.3
Total INCLUDINGCONTiNEENCIES 427,559.7 3,861,095,9 7,957,699.45,175,158.1 4,597,349.8 22,018,062., 42,509,965.0 57.3 12,614,120.5
Forelsr, E,chnar,e - 221,491.2 2,233,407.4 47704,473,32,831,209.5 2,62S,539.1 12,614,120.5 - 0.0 0.0
Totai B4SELINECOSTS 400,799.0 3,334,129.96-36,808.8 3,944,064.9 3,291,213,0 17,347,015,642,509,965.0 57,2 9,924,039,6 PhOs:cal Cor.t:i4eocie0 :4yJ27.4 314,437.0 643,136.9 317,713.4 247,1057.3 1,536,072.0 - 50.6 900,970.5 F-ice Cuntinoerncies - 4,.33.3 .i1,529,0 745,753,7 913,379,7 1,059,07S.5 3,134,975,2 - 57.0 1,780,310.3
TotalPROJECT COSTS 427,559.7 3,OsI,35,9',97,i699.4 5,175,158.14,597,349., 22,018,862.0 42,509,965.0 57,3 12,614,120.5
Foreign Exchanse - 221,491.22,233,407.4 4,704,473.3 2,831f209.5 2,623,539,1 12,614,020.5 - 0.0 0.0
Januarsr24, 1013 11:47 - 45 -
ANNEX 3
CYPRUS
KHRYSOKHOU IRRIGATION PROJECT
Schedule of Disbursements
EMENA Cyprus Cumulative Agricultural Agricultural IBRD FY Disbursements Cumulative Projects Projects (USg Million Equivalent) ---- (%) (Cumulative% Diabursed)- 1983/84 December 31, 1983 1.25 7.81 0.7 0.1 June 30, 1984 3.00 18.75 2.2 1.6
1984/85 December 31, 1984 5.00 31.25 5.0 5.9 June 30, 1985 8.00 50.00 9.2 12.8
1985/86 December 31, 1985 10.50 65.62 14.8 21.8 June 30, 1986 13.00 81.25 21.6 32.2
1986/87 December 31, 1986 13.50 84.37 29.2 43.0 June 30, 1987 14.00 87.50 37.4 53.3
1987/88 December 31, 1987 14.50 90.62 45.8 62.6 June 30, 1988 15.50 96.87 54.1 70.4
1988/89 December 31, 1988 15.75 98.43 62.1 77.1 June 30, 1988 16.00 100.00 69.7 82.7 CYPRUS
KHRYSOKHOUIRRIGATION PROJECT
Farm Income and Expenditure Flows (Cf.)
Wltt1,o.ut Proiect Wit, Project 12 3 4 5 6 8 9 10 11 12 13 14 15-40
A. Farm Model 1 (0.85 ha) Int low Gross Val-e oi Profuctio1/1 J9) 800 950 975 1,075 1,137 1,382 1,690 1,997 2,305 2,612 2,765 2,858 2,950 3,042 3,073 nrrbut-t Farmers' / - 330 ------Meoi,u-te-m t.re,lt _ _ 99) - Total lnflow 595. 2,125 950 975 ,075 1,137 1,382 1,690 1,997 2,305 2,612 2,765 2,858 2,950 3,042 3,073 Ourflow investment - 1,325 ------_ _ _ - Product,i on Costs /1 14S 185 205 230 260 270 280 290 300 310 320 330 340 345 345 345 Lrrcf)tc)u charges- 56 71 85 160 177 362 570 763 763 763 763 763 763 763 763 Mledium-ters, Loan; InLutest - 70 70 62 53 44 34 23 12 - - - - Mcu,ua-term Lon,; Pri,cupckl - - 115 123 132 141 151 162 173 'otai Outflow 145 1,636 461 500 605 632 827 1,045 1,248 1,073 1,083 1,093 1,103 1,108 1,108 1,108
Net lnrlow 4jotlIuw,450 4d9 489 475 470 505 555 645 749 1,232 1,529 1,672 1,755 1,842 1,934 1,965
b n.1ors-'toO Z (3.0 La) I, rtow GrOs- Value ur Procuction/i 2,100 u,37/ 3,867 4,147 4,535 4,795 5,831 7,125 8,420 9,718 10,375 11,070 11,760 12,450 12,700 12,958 Frn,ers' Contrib,tioi /2 - 1,170 ------Mcut-um-lirl,rnrcct _-L Jj~Q ~ - . ------a'- loLal Inflow 2,100 8,050 3,887 4,147 4,535 4,795 5,83] 7,125 8,420 9,718 10,375 11,070 11,760 12,450 12,700 12,958 t
Uo.t flow Inesrmet- - 4-680 - - - - Production Costs j 700 905 1,115 1,075 1,i20 1,160 1,204 1,247 1,290 1,335 1,376 1,419 1 462 1,484 1,500 1,517 Irrl gat-l chaorges - 200 254 304 573 634 1,296 2,040 2,731 2,731 2,731 2,731 2,731 2,731 2,731 2,731 Medium-term Loan; Interest - 246 246 217 187 154 119 82 40 ------lOeScorn-terLoanos; Prio.ipal - - 407 436 466 499 534 571 600 - 'oral Outflow 70() 6,031 2,022 2,032 2,346 2,447 3,153 3,185 4,661 4,066 4,107 4,150 4,193 4,215 4,231 4,248
Net Isnlow (Oattlow) 1,04()0 2,019 1,865 2,115 2,189 2,348 2,678 3,138 3,759 5,652 6,Z68 6,920 7,567 8,235 8,469 8,710
kaso mlodel 3 (u.5 ,a) Tlr' low Gross Value of Production/I ,20 6 ,2b8 8,6350 10,176 .1,095 11,729 14,265, 17,435 20,605 23,775 26,945 28,530 29,481 30,115 31,383 31,794 Farmers' OontribLtitol /2 - 2,925 ------Mcuio,c-terw Credit _5- 8 775 _- - - _ -- _ -- Total Inflow 2,750 17,968 8,650 10,176 11,095 11,729 14,265 17,435 20,605 23,77 76,94 28,530 29Th71 30,155 17iS3 31,794
u t flow lwves L,scn - 11,700 ------Produoctic,,i ostS .1 1,050 2,17() 2,465 2,782 3,212 3,562 3,891 4,160 4,,285 4,410 4,536 4,659 4,820 4,910 5,120 5,284 lrrrgation Gharges - 438 580 696 1,310 1,449 2,964 4,668 6,74S 6,248 6,248 6,248 6,248 6,248 6,248 6,248 (4edium-Eerm Loa In;uterest - 614 614 543 467 385 298 225 105 ------MNu-i-ter,s.,oa,, Pr,,,cip.l _i ,0168 I589 1,165 1 247 1,33, 1,427 1 500 ------Total Outflow 1,1050 14,942 4,677 5,110 6,574 8,47 10,460 1, 136 10,658 , T=7 T fl7Ti 1I,368
Net lnflow (Outtlowi 1,701, 3,026 3,973 5,060, 4,941 5,086 5,778 S,975 8,467 13,117 16,191 17,623 18,413 18,957 20,015 20,262
Note: Year 1 is eithcr 1986 or 1987. /I From date in Project File /2 252 of total investment is oo-farm works.
Source: Mission estimates. - 47 -
ANNEX 5
CYPRUS
KHRYSOKHOUIRRIGATION PROJECT
Rent and Cost Recovery IndicesL!.
Farm Model 2 3
Net Incremental Farm Income 15,185 66,930 143,250 Depreciation 1,415 5,620 11,300 - Family labor 5,100 6,800 6,800 - Management /2 3,035 15,200 28,600 - Return on own capital /3 755 2,850 5,600
Rent 4,880 36,460 90,950
Rent As Percentage of Income 32 54 65
Water Charges 4,635 16,595 37,965
Rent Recovery Index 95 46 42
Cost of Water /4 7,650 27,650 63,275
Cost Recovery Index 60 60 60
/1 All items are incremental and discounted over 40 years at 9%. 72 At 20% of net incremental income (1). 73 10% of market value. /4 About 87% capital cost, 13% O&M Cost; adjusted for 3-year lag.
Source: Mission Estimates CYPRUS
KURYSOKHOUIRRIGATION PROJECT
Economic Analysis (C£ '000)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18-25
A. Incremental Investment /I
Evretoni Dam 190.2 2,621.8 4,646.1 1,329.4 ------Upper Khrysokhou Diversion - - - - 557.5 ------Conveyor and Brancbes - 605.7 955.1 191.5 68.4 ------' -- Irrigation Network - - 784.4 809.2 802.7 ------On-farm Works - 21.3 125.4 1,402.1 1,566.9 ------Land Acquisition - 3.0 128.1 47.2 ------_ - - - Groundwater Development - - - - 279.6 ------Project Management 155,9 236.6 189.9 181.8 191.5 ------_ _ _ _ Dam Construction Supervision 84.7 169.4 169.4 161.5 ------_ _ _ _
B. Incremental 06M Costs /2 - 56.5 62.5 65.0 84.0 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9 354.9
C. Incremental Production Costs /2
Annual Crops - 26.0 60.0 284.0 488.4 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 740.0 Perennial Crops - - - 125.7 188.6 314.4 440.0 565.5 691.7 817.5 943.2 1,006.1 1,043.8 1,081.5 1,119.3 1,157.0 1,216.0 1,257.6
D. Incremental Gross Benefits L2
Annual Crops 60.0 132.0 723.7 1,247.4 1,890.2 1,890.2 1,890.2 1,890.2 1,890.2 1,890.2 1,890.2 i,890.2 1,890.2 1,890.2 1,890.2 1,890.2 1,890.2 Perennial Crops - - - - 180.0 858.1 1,430.2 2,002.3 2,574.5 3,146.5 3,718.6 4,290.8 4,862.8 5,148.9 5 320.5 5,434.9 5,605.o 5,721.0
fkR: 13.92
/1 Based on project cost tables, exaluding price contingencies. /2 Background data in Project File; Incremental Costs include replacements of small items. - 49 -
ANNEX 7
CYPRUS
KHRYSOKHOU IRRIGATION PROJECT
Selected Documents and Data Available in the Project File
A. Selected Reports and Studies on the Sector
A-1 IBRD, Cyprus - Current Econemic Positions and Prospects for Growth During the Five-Year Plan 1982-86, Report No. 4069-CY, January 19, 1983.
A-2 IBRD, Price Prospects for Major Primary Commodities (in five volumes), Report No. 814/82, July 1982.
A-3 IBRD, Cyprus - Fruit and Vegetable Export Project, Report No. 3367-CY, April 20, 1981.
A-4 IBRD, Cyprus - Vasilikos-Pendaskinos Project, Report No. 2254-CY, January 10, 1979.
A-5 IBRD, Improving Irrigated Agriculture, Institutional Reform and the Small Farmer, Staff Working Paper No. 531, 1982.
A-6 Tropical Products Institute (TPI), Report to the Government of Cyprus on the Markets in Various West European and Middle Eastern Countries for Selected Fresh and Processed Horticultural Commodities (nine volumes), TPI, London, U.K.
B. Selected Reports and Studies Relating to the Project
B-1 Cyprus - Khrysokhou Watershed Irrigation Project, Hdyro-Agricultural Development, Khrysokhou Area, Feasibility Study (Main Report, 1982 and 10 annexes, 1981), UNDP-FAO, Rome, Italy.
B-2 Cyprus - Agricultural Research Institute, Annual Report for 1981, Nicosia, Cyprus, March 1982.
B-3 Agro-Epso - Pilot Study on the Off-Season Market for Fresh Fruits and Vegetables in EEC Countries (Final Report, 2 volumes), December 1982, Tel Aviv, Israel.
B-4 IBRD, Fruit and Vegetable Exports from the Mediterranean Area to the EEC, Staff Working Paper No. 321 (1979).
B-5 Landell-Mills Assoc. Ltd., The Market for Cyprus Table Grapes in Four European Countries, 1980-81, London, U.K. - 50 -
ANNEX 7 Page 2
B-6 Sir William Halcrow & Partners in Association with A. Parastitis & Associates, Khrysokhou Watershed Irrigation Report, Design Report (Interim) on Hydrology and Hydraulics, February 1982.
B-7 Sir William Halcrow & Partners in Association with A. Parastitis & Associates, Khrysokhou Watershed Irrigation Project, Evretou Dam, Design Report, November 1982.
B-8 Sir William Halcrow & Partners in Association with A. Parastitis and Associates, Khrysokhou Irrigation Project, Tender Documents for Evretou Dam, Civil Works, Volume 1, Instructions to Tenderers, Conditions of Contract, Specification and Appendices, October 1982.
B-9 Sir William Halcrow & Partners in Association with A. Parastitis and Associates, Khrysokhou Irrigation Project, Tender Documents for Evretou Dam, Civil Works, Volume 2, Form of Tender and Appendix Bills of Quantities Schedules, October 1982.
B-lO Sir William Halcrow & Partners in Association with A. Parastitis and Associates, Khrysokhou Trrigation Project, Tender Documents for Evretou Dam, Supply and Supervision of Erection of Water Control Equipment, October 1982.
B-li Department of Water Development, Khrysokhou Irrigation Project, Design Note and Cost Estimate, Lowlands Main Conveyor, Nicosia, Cyprus.
B-12 Department of Water Development, Khrysokhou Irrigation Project, Design Note and Cost Estimate, Irrigation Network, Sector lA, March 1982, Nicosia, Cyprus.
B-13 Department of Water Development, Khrysokhou Irrigation Project, Tender Documents for Irrigation Network, Sector 1, Part C, Tender Drawings, March 1982, Nicosia, Cyprus.
B-14 Department of Water Development, Khrysokhou Irrigation Project, Tender Documents for Lowlands Main Conveyor, Sector 1, Volumes 1J 2 & 3, March 1982, Nicosia, Cyprus.
B-15 Department of Water Development, Khrysokhou Irrigation Project, Tender Documents for Installation of Irrigation Network, Sector 1, Part A, General Documents; Part B, Specific Documents, March 1982- Nicosia, Cyprus.
B-16 Department of Water Development, Khrysokhou Irrigation Project, Tender Documents for Supplies for Irrigation Network, Sector 1; (Lot S1) Pipes and Fittings, (Lot S2) Valves, (Lot S3) Hydrants and Meters; Part A, General Documents; Part B, Specific Documents, March 1982, Nicosia, Cyprus. - 51 -
ANNEX 7 Page 3
B-17 Geomorphological Services Limited, Evretou Dam Project - Cyprus, Sedimentation Study, April 14, 1982.
B-18 UNDP/FAO, Khrysokhou Watershed Irrigation Project, KWIP Working Paper DE/l, Preliminary Study of Proposed Dams and Main Conveyors in the Polis-Khrysokhou Area, July 1980, Nicosia, Cyprus.
B-19 UNDP/FAO, CYP/177/006, Khrysokhou Watershed Irrigation Project, Evaluation of the Groundwater Resources in the KWIP Region, Project Working Paper No. WR/8, October 1981, Nicosia, Cyprus.
B-20 Department of Water Development, Irrigation in Cyprus, No. 1/31, March 1981, Nicosia, Cyprus.
B-21 IBRD, Appraisal of Paphos Irrigation Project, Report No. 252a-CY, December 18, 1973.
C. Selected Working Papers
C-I Terms of Reference - Project Manager - Consultants for the Evretou Dam Construction Supervision - Panel of Experts for the Evretou Dam C-2 Engineering and Civil Works C-3 Commodity Prices C-4 Farm Models C-5 Overall value of Production; without and with Project C-6 Crop Models C-7 Farm Size Analysis c-8 Production and Exports of Fruits and Vegetables CYPRUS KHRYSOKHOUIRRIGATION PROJECT SystemDiagram
ELEVATIONABOVE MEAN SEA LEVEL 200 _ / UPPERKHRYSOKHOU RIVERDIVERSION
EVRETOU KR W //
KEU 21U
100 L GW GW Ln KIL~~~~~~~~~~~~~~~~~~~~~~~w
600 w~~~~~~~~00
50 600
CONNECTIONFOR FUTURE POSSIBLEEXTENSION
KEU KhrysokhauEast Upper Reservoirwith Maximum 600 Pipe wlth Directlon 3 of KR KhrysokhouRIght Storage Capacity (million m ) Flow & Diameter KEL KhrysokhouEast Lower KWU Khrsokhau West Upper 0 Elevation Heodworks(m) o.m.s.l. V Intake Welr
537 Commrand Area (ha) 9,400 Storage CapadtyHecdworks _____- -- rigation Pipe
\~' Overnight Storoge Ponid
] Break PressureTank
GW Flow from Goundwater Schemes 53 -
CYPRUS KHRYSOKHOUIRRIGATION PROJECT Implementatlon Schedule
IBRDFSCAL 1983 1984 1986 19807 1988 YEAR__ __ ITEMS CALENDARYEAR S91J3 1954 19SS ' |t 1937
Contract Award Actions
Contractors Mobilization Construction
DivetsionWortks l 11_i Embankment PhraseI z O -. Phrase11 sofllv< I r v r n _ Outlet Workls l gum
Access Crest
IJPPERKHRYSOKHOU DONERS|ON |Degns& Drawi| gs
Contract Awaor Actions Construction
MAIN CONVEYOR& PONDS Procurementot Equipnrent & Matenals
Controct Aword Actions 1 NEW Construction CMIWormI
IRRIGATIONNETWORK Designs & brrQs ot I I 1111110111111111111i Sector 1-8(1.200 ha) Procurement of Equipment | - 0 & Matercias Contract Award Actions Sector I-A(800 ha) Sector I-B(1.200 ha) l Construction Sector A |-A= 0 5 +1 sector I-B (200 ha) (10ha) ON-FARMWORKS
PLANTING& SMOOTHING <
GROUNDWATERPJMPWEttS Procurerrent
Instatltion ------
BUIlDNGS& ECUIPMENT FORPROJECT MANAGEMENT
Wora Bank-24570 CYPRUS KHRYSOKHOUIRRIGATION PROJECT ProjectOrganization
PROJECTPOLiCY & COORDINATIONCOMMITTEE
Director General Ministry ot Agriculture & Natural Resources Chairman MINISTERIALCOMMITrEE Director General PFonning Bureau Member Director General Ministry ot Interior Member Minister ot Finance Choirmnn Directo, General Ministrv ot Commerce & MAIister et Minister of Agrculture Member IndustrY Member AgrIculture & Minister of Commerce Member Director ot Agriculture Member Natural Resources Minister ot Justice Member Director Warer Development Deportment Secretary
Directol Generol Agricrirturn&- Vnrrn& Natural Resources vlution r ------
Di,ector TDDErectorDWaterGelogical Oeologscalrnector TENDPRBOAJ?D Develpm Errt & DirectorAgriculture [DirecorAgiricultural SurreyDepolrtmnenec to epatmewt Researchinstitue AccountantGeneral PoetDrco Rep Min ot Finance Rep.Planning Eureau DirectorStores Rep.Min otComrmerce PROJECTAD\ISORYCOMMITTEE I Drectar WD D _ _ COI ue
KHRVSO)KHOL DLstrictOfticer Chairman IRRIGATIONPROJECT WD. DistrictOtticer Member L------ProjectManger DA Disttct Otticer Member i ProJectManager Membe FarmersRepresentatives 2 Members
r 1 -JIi7IK-- r~ DeputyProtect D y e a IK Mancgrr I Administration Deputy ProjectManagrr L Arre,aReseach Engineerinq I Agricultural Development [ Station
r Llnit Grou te, Develol - ~~Contract bern esig u"nit Graduae -eeomn Accounts (hVittrtram Assistance 'ro n'tCon,e=r Entension vVore,1,5e On-I-armWorks ConsultingConstruction Eirrnj Unit inigotion WaterSales ______L.______-ChargesRecovery L
World Bank--24585 CYPRUS KHRYSOKHOUIRRIGATION PROJECT FruitProduction Calendar In the ProjectArea'
Januov Febrary March Apsl May Juo July Aug Septemb OCtobEr November Decembe
FRUITS ORANGES
Novels - Valencia Sharnouti LEMONS? - - - 3 MANDARINES _ GRAPEFRUITS - -
BANANAS _ _ _ _ _ AVOCADOES, - - 5 TABLEGRAPES 7 """ TABLEOLIVESr - Ut_ ALMONDS - m PISTACHIONUTS PECANNUTS I i AMR:COTS .
rtACHES _
|PUMS ______-______
Legend Harvesting iStt
I Datesof furming operations varywith location, cultivars,crop pattern,rotation & application of fesearch & extensionrecommendations. I Twoprincipal early cultivars.local Lapithiotikiwith production trom beginning ot September - end ot December & intertonadowith production from Sept3rmber- November. 3Ortanioues & Mineolasare oranges that look like mondarines & wthichproduce from end ot December -the beginning of Februaryfor the fir' antdfrom March to the beginning of April for the toter. Clementinesare harvestedin November & December. I Thecultivar Fuertestarts production trom October - end of December & the culti.ar Hassproduces from January - March. 5Early culivars ot Perlette& Cardinal are recommended. t I Green cul ivars ore harvested earlythen tollowed by black cultivars World Bank-24590 -g 56 -
CYPRUS KHRYSOKHOUIRRIGATION PROJECT VegetableProductin Calendar In the ProjectAreal
2 ~~~~34 CROPS _ -- _ _ -_ - JAN IeFEB M AP MAY t lJL AUG SEP OCT NO DEC
EARLYVKETABLES _ . FReshBoons ......
FreshBlock-Eve Peas .. L ..
Courgettes ......
~~~~_Sweet. N.elons ...... _I...... t Z Cuoumersvb ..... I... I .....
Tomatoes_ _ _ _ _ ...... ___
2 ~~~~~~34 CROPST | = , I JAN FF5 I AAR APR MAY JUN JLJL AUG SEP oa NOV DEC
SUMMERVEGEtABLES FreshBeans . .... FreshBlock-Eye Peas ...... Courgertes -
Cucumbers SwAeetMelo0ns......
Water Melons ...... Aubergines ......
Peppers |.|._...._.i | I -.
Tomatoes I. I I .. r._,o____r
I [ ~~~ 3 ~~2 4 CROPS JAN FEB -MAR APR MAY JUN JUL AUG SEP OCT | NOV DEC
LATE& WINTERVEGETABLES |
Courgottes ...... Aubergines ..... l.
PePpers ......
Tomoatoes ; ......
Haricot Bears Peas Green ......
Onions Dry= OnionsFresh
Caboages ...... }i _1'! FresnBroad Beans | _.
Legend: Sowing Period - - - Growing Penod ...... Harvesting Penod .
'Dates of torming operations vary w ith location. culhvars. crop pattern, rotation & application of research & exsensior i recommencations. Worlo Bank-24591 I I - - - . -1- I . -71 1-1 .- .11.11-11...... C Y P R US Df /IR/½NC ,
K HRYSO KHOU IRRIGATION PROJECT okk,.r
7 Irrigation Development Area
PROPOSED: Intake K - t Conveyor Reservoir Roads D CAPE ARNACUrI Contours in meters
'- Rivers
0 < > / < ~~~~~~~~~~~~~~~~~A,g.k.Mago.,d. _ X((J
Neokho , Pr dh\rrI
-35 foAndroCkaltOO C,rternonrenot1 of tho 35- -oad- and S / toosIcOfr thO,,, G. dhl "It-If I- bf ThI, W111d B-k~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~rrrnfrSothoVniBn an,d the tntprraof ,dr
KkolD- thh Orndrnb-d.,- O1,,-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~uSdad w
Part of The WoHtdtOank -d thO
Dh~~~~~~~~~~~ha tafrne1,dqb,-t innetoprorr- th,, 1,g,,1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O an yrdtont. on th , g tn
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2-1 \, -ato .. .Ss>
a (S>~~~~~~~rdhes SMou% PXI _ MF/J/I5RAIVEA /V S E A<
< 0 = < ArsdbeX t u vt [)brt-9}2_ CAPE DREPANUM _ \ A- \Peprao