RESTR I CTED Report No. PA-128a
Public Disclosure Authorized Tlis report is for officiaiuse only by the BankGsoup and specificallyauthorized orgmiZations or persons.It may not be published,quoted or ated withoutBank Group authorization.The BankGroup does not acceptresponsibllity for theaccwacy or completenessof the report.
INTERNATIONALBANK FOR RECONSTRUCTIONAND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION Public Disclosure Authorized
APPRAISAL REPORT
MORONDAVA IRRIGATION AND RURAL DEVELOPMENT PROJECT
MALAGASY REPUBLIC Public Disclosure Authorized
May 26, 1972 Public Disclosure Authorized
Agriculture Projects Department CURRENCYEQUIVALENTS
Currency Unit - Franc Malgache (FMC) US$1.00 - FMG 255 FMG 1.00 - US$0.0039 FMG 1 million = US$3,900
WEIGHTS AND MEASURES
1 hectare (ha) = 2.47 acres 1 kilometer (km) 2 - 0.62 mile 1 square kilometer (km ) = 0.3886 square mile 1 cubic meter (m3) 3 = 35.31 cubic feet 1 million cubic meters (Mm ) = 810.7 acre-feet 1 kilogram (kg) = 2.205 pounds 1 ton - 2,205 pounds 1 ton of paddy = 660 kg of rice 1 ton of seed cotton 370 kg of lint cotton
ABBREVIATIONS
AMVR - Aire de Mise en Valeur Rurale (Rural Development Area) BNM - Malagasy National DevelopmentBank CFDT - CompagnieFrancaise pour le Developpementdes Fibres Textiles IRAM - Institut de RechercheAgronomique Malgache GR - Rural Engineering Department SCMV - Service Central de Mise en Valeur of the Ministry of Agriculture SODEMO - Societe pour le DeveloppementEconomique de la Region de iMorandava
FISCAL YEAR
January 1 to December 31 MALAGASYREPUBLIC
APPRAISAL OF THE MORONDAVAIRRIGATION AND RURAL DEVELOPMENTPROJECT
TABLE OF CONTENTS
Page No.
SUMMARY AND CONCLUSIONS ...... i-ii
I. INTRODUCTION ...... 1
II. BACKGROUND ...... 1
III. THE PROJECT AREA ...... 2
General ...... 2 Climate ...... 3 Soils, Topography and Drainage ...... 3 Agriculture ...... 3 Transportation ...... 4 Present Status of Project Irrigation Facilities ...... 4
IV. TIE PROJECT ...... 5
Project Description ...... 5 Project Works ...... 6 Water Supply, Demand, and Quality ...... 7 Engineering Design ...... 7 Cost Estimates ...... 8 Financing ...... 8 Procurement ...... 9 Disbursement ...... 10 Accounts and Audit ...... 10
V. ORGANIZATION AND MANAGEMENT ...... 10
Project Authority ...... 10 Settlement and 11ealth Control ...... 12 Civil Works ...... 13 Agricultural Research ...... 13 Supporting Agricultural Services ...... 14 Operation and Maintenance ...... 14 Project Charges ...... 15
This report is based on the findings of an appraisal mission which consisted of Messrs. C.J.M. Le Moigne and C.G. Moret (IDA) and J. Marinet, G. Laques, and A. Degremont (consultants). -2 -
PaRe No.
VI. PRODUCTION,MARKETING, PRICES, AND FARM INCOME ...... 16
Production ...... 16 Marketing ...... 18 Prices ...... 18 Income of Rice Cultivators ...... 18 Income of State Farms ...... 19
VII. BENEFITS AND JUSTIFICATION ...... 20
VIII. AGREEMENTS REACHED AND RECOMMENDATIONS...... 21
ANNEXES
1 - ClimatologicalData at Morondava
2 - Soils
3 - Description of the Project
4 - Construction Schedule
5 - Water Supply, Demand, and Quality
6 - Cost Estimates
7 - Equipment
8 - Estimated Schedule of Expendituresand Disbursements
9 - Project Authority (SODEMO)
10 - Settlement and Health Control
11 - Research Station
12 - Productionwithout and with the Project
13 - Marketing
14 - Economic Analysis
*AP
Projected Land Use and Irrigation Network MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURAL DEVELOPMENTPROJECT
SUMMARYAND CONCLUSIONS
i. This report appraises a project for irrigationand rural develop- ment in the Morondava Region, for which an IDA credit of US$15.3 million is proposed. The project is part of the Government program to accelerateregion- al developmentand encourageland settlementon the west coast of the island. (It would also contribute toward the Government'smajor goals in the agriculturalsector, namely increasingrice production and diversificationof exports.1 Becausewater supply is vital for agriculturaldevelopment in this region, the Government'slong term plans for the Morondava Plain call for irrigationof some 30,000 ha.
ii. In 1970, the Associationextended a credit of US$5.0 million equivalent (Credit214-MAG) to assist Government in implementingthe Lake Alaotra IrrigationProject - located about 200 km north of Tananarive- for the productionof high quality rice. Progress on that project is satis- factoryand work is on schedule.
iii. The proposedMorondava Irrigationand Rural DevelopmentProject would provide irrigationto three operationallyindependent units totaling 9,300 ha. The first unit of 4,700 ha would be devoted to rice cultivation by some 2,300 farmersof which about 1,200 are already in the area; the second unit would be developedas a state farm specializingin tobacco and peanut production on 2,700 ha; and the third unit would be developedas a state farm for cotton production on 1,900 ha. About 1,000 familieswould be settled as permanent laborers on the two state farms. About 2,000 ha of the project area are presentlyproductive while the remainderi bush. The projectwould include constructionof a diversion dam, irrigationand drainage systems, farm roade, and on-farm developmentworks; constructionof 10 new villages and expansionof 10 existing ones, togetherwith all necessary public facilities;introduction of a health program to controlbilharzia; settlement of about 2,100 families and an increase in the holding size of the 1,200 families already in the area; purchase of equipment;establishment of a research station; and the creation of a project authority"Societe pour le DeveloppementEconomique de la Region de Morondava" (SODEMO).
iv. Estimatedtotal project cost ls US$27.0 million. The proposed IDA credit of US$15.3 million, or 57% of the total, would finance the foreign exchange costs. Project works would be constructedby contract following international competitivebidding, except for up to US$1.0 million worth of small and scatteredcontracts for constructionof settlementand health control facilitiesthat would be awarded on the basis of local competitivebidding. Equipmentmaterial and supplieswould also be procured through international competition;it is estimated that about US$3.8 million in foreign exchange would be required for these items and for the cost of foreign consultants. - ii - v. Overall responsibilityfor the project would rest with SODEMO, a corporationto be establishedby Governmentspecifically for project im- plementation. The day-to-day operationswould be directed by a General Manager, assisted by four deputies in charge of settlementand social affairs, administrationand finance, technicalmatters, and research. Headquarters would be in the town of Morondava, and three operationalunits would have offices in the field to manage rice farming and the two state farms, each functioningindependently of the other. The Rural EngineeringDepartment (GR) of the Ministry of Agriculturewould be responsiblefor construction of major civil works and drainage system; it is in charge of all similarworks throughout the country. The Service Central de Mise en Valeur of the Ministry of Agriculture (SCMV) would keep the Associationinformed of progress on the project and would be responsiblefor carrying out feasibilitystudies for a second phase irrigationproject in the Morondava Plain. Consultantswould assist SCMV, SODEMO, and GR in the implementationof the project. vi. At full agriculturaldevelopment in 1983, the net value of produc- tion is expected to be about US$3.1 million, compared with a level of US$0.1 million without the project. The economic rate of return would be about 16%. Net annual foreign exchange earnings would amount to about US$2 million by the end of the constructionperiod and about US$3 million at full develop- ment. A sensitivityanalysis indicates that, under a number of adverse conditions,the economic rate of return would still exceed 12%. Per capita income of the project beneficiarieswould increase from the present subsis- tence level of US$45 to US$100-140 at full development. The projectwould thuisassist a very poor section of Malagasy's rural population,but, even at full developmenttheir income would still be below per capita rural income, estimated to reach about US$140 by the mid-1980's. vii. The project is suitable for an IDA credit of US$15.0 million. The borrower would be the Government of the Malagasy Republic. MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURALDEVELOPMENT PROJECT
I. INTRODUCTION
1.01 The Government of the Malagasy Republic has requested an IDA credit of US$15.3 million to assist in financing the Morondava Irrigation and Rural DevelopmentProject, which is located in the Morondava Region on the west coast. Works would include constructionof a diversion dam on the Morondava River, irrigationand drainage systems for about 9,300 ha, farm roads, on-farm developmentworks, health control, housing and communal facilitiesfor project staff and about 3,300 families, and establishment of two large-scalestate farms. The project would constitute the first phase of Government'sgeneral developmentplan to eventuallyregulate the Morondava River in its upper basin and irrigate a total of some 30,000 ha.
1.02 This would be the second IDA credit to the Malagasy Republic for irrigation developmentand the third Bank Group operation in the agricultural sector. Credit 214-MAG (1970) for US$5.0 million financed the Lake Alaotra IrrigationProject for the production of high-qualityrice. Progress on that project is satisfactory,works are on schedule and completionis ex- pected by 1976. Loan 585-MAG (1969) for US$2.8 million financed livestock development. After a slow start the project is now proceeding satisfactorily.
1.03 This report is based on feasibilitystudies financed through a UNDP project and prepared by the consultingfirms of Agrar und Hydrotechnik of the Federal Republic of Germany and the Societe d'Aide Techniqueet de Cooperationof France (SATEC),with assistance from the FAO/IBRD Cooperative Programme. The project was appraised in October/November1971, by Messrs. G.J.M. Le Moigne and C.G. Moret (IDA) and J. Marinet, G. Laques, and A. Degremont (Consultants).
II. BAC GROUND
2.01 The island of Madagascar, since 1960 the independentMalagasy Republic, has a total land area of 592,000 km2 (the fourth largest island in the world) and a population of 6.9 million growing at an annual rate of 2.2%; over 85% of the populationis rural. The country's population density of less than 12 inhabitantsper km2 is very low, but the population is unevenly distributedover the island, with some regions, particularly in the center of the Island, soon to become overpopulated. Only 2.8 million ha, or less than 5% of the total area, is under cultivation. These lands lie in the more accessibleparts of the country, mostly in valleys along the east coast and on the central plateau; the other parts of the country are largely covered with forests, mountain ranges, and eroded hills. Internal migration to the less densely populated and potentiallyproductive areas, such as the western coastal plain where the Morondava project is located, is part of the Government's overall developmentstrategy.
2.02 The agriculturalsector i the most important one, providing a livelihoodfor more than 80% of the population,even though it accounts for -2-
le8s than one-third of GDP. Per capita income in 1969 was about US$80 in the rural areas comparedwith about US$120 for the country. During the 1960's, GDP growth at constant prices was about 4.5% per year; growth in the agricultural sector during the same period was lower, roughly estimated at 3.0% per year. Rice, which is the staple food in the country (per capita annual consumptionis 125 kg) and the main crop, is grown on more than 30% of the cultivated land. Agriculturalproducts account for over 80% of export earnings; the main crops, together with their share in total exports during the second half of the 1960's, are: coffee, 30%; vanilla, 9%; high- quality rice, 7%; and sugar 7%. Total earnings from food and agricultural exports during 1964-69 increasedonly moderately at 3% per year; food imports during the same period, mainly low-qualityrice, wheat flour and dairy products,amounted to about 23% of agriculturalexports. Local rice pro- duction varies greatly from year to year due to erratic climate condition and there are consequentlylarge variations in the level of rice imports in any given year; no rice importswere required in 1967 and 1968 while the level in 1965 and 1969 was US$9.6 million and US$5.8 million, respectively.
2.03 There are five major agriculturalproduction regions in the country: The "high plateau" in the central part of the island, accounting for most of the irrigated rice grown; the east coast, where the main products are rice, coffee, and bananas; the northern zone, which has a tropical climate, growingmainly cash crops such as sugar cane, cocoa, and spices; the middle west, where soil and climate conditionsare ideal for livestock development;and the west coast, where the population is scarce and food crops (rice, cassava) and livestock are the main traditionalactivities. The high fertilityof some of the alluvial flood plains in the latter region has led to the developmentof cotton and tobacco cultivationas well as production of high-quality rice for export.
2.04 In spite of the populationpressure on the high plateau and east coast, agricultural development In these regions has low priority because of the relatively limited potential of the former and unfavorabletopographic conditions in the latter. Increasingemphasis is thereforebeing given by Government to the developmentof the less populatedbut highly productive middle west and west coast regions. The proposed Morondava Irrigation Project would thus contribute to the Government'sregional development efforts by promoting settlementand agriculturaldevelopment on the west coaist. Through the production of rice, cotton, tobacco and peanuts, the project would also contribute toward the Government'smajor goals in the agriculturalsector, namely self-suffîciencyin rice and diversificationof exports.
III. THE PROJECT AREA
General
3.011 The project area is located in the central part of the west coast, in the north of Tulear province, within the Aire de Mise en Valeur Rurale - 3 - de Morondava (AMVR),a 120,000-haarea of mostly Government-ownedland ear- marked for land settlementand rural development. Total population ln the AMVR is about 33,000 and the annual growth rate is a low 1.3%, due to .1 hlgh infant mortality rate. Some 12,000 people live in Morondava, the largest town in the region,while the rest, representingabout 5,000 families,are rural. About 7,400 ha in the AMVR are presently under cultivation;some 6,500 ha are devoted to annual crops including 4,500 ha of irrigatedrice and 500 ha of rainfed cotton. About 900 ha of citrus are cultivatedunder sprinkler irrigationon a Government-ownedplantation operated under a technicalassistance agreement with Israel; the orchard is now being expanded to 2,000 ha.
3.02 The 9,300 ha to be irrigatedunder the project, including 2,000 ha already under cultivation (para 3.09), lie between the Morondava and AndranomenaRivers and can be divided into two zones: the Mahabo-Ankilivalo zone (easternzone), some 30 km east of Morondava, and the Analaiva zone. (western zone), halfway betweenMorondava and Mahabo (see map).
Climate
3.03 Climate is tropical,with monthly temperaturesranging between 210C and 27°C; annual rainfall averages about 800 mm, of which 90% occurs from December to March. Hours of sunshine exceed 3,500 per year, reaching a monthly maximum of 325 in October, and evaporationis high at more than 2 m per year. Wind velocity i moderate,with a monthly maximum below 3 m/sec, adequate for sprinkler irrigation. A summary of climatic data is presented ln Annex 1.
Soils, Topography,and Drainage
3.04 Project soils are of alluvial origin, either from the Andranomena or the Morondava Rivers. In the eastern zone, most of the soils are suitable for irrigationwithout restriction,but those of the Morondava,with fine textures,low permeability,and poor drainage,are good only for rice cultivation. In the western zone, the alluvial deposits of the Morondava constitute the so-called "red sands",which, due to their shallow depth and light texture, require sprinklerirrigation. Annex 2 gives further details on soils.
3.05 Only about 2,000 ha in the project area are currentlyunder cultiva- tion; bush-type vegetation covers the rest and land would require clearing before it could be used. Project lands are about 50 m above sea level in the Mahabo-Ankilivalozone and some 20 m lower ln Analaiva. Average slopes are gentle, between 0.1% and 0.3%, and provide generally good natural surface drainage,but the micro-reliefundulates and land leveling would be required in areas to be lrrigatedby gravity.
Agriculture
3.06 Under present land use, about 1,500 ha in the vicinity of Mahabo are devoted to rice, cultivated under irrigation during the dry season only since canals are silted up during the rainy season (para 3.09), and -4-
iome 500 ha near Ankilivalo are used for cotton, grown under rainfed ,conditions.Rice is a subsistencecrop cultivatedby some 1,200 familles on small farms (averagingabout 1.2 ha) using animal power. Yields are low, about 1.2 ton per ha, due to inadequatewater supply and drainage and lack of extension services and credit. Rainfed cotton i6 cultivatedon a pilot unit managed by the Centrale d'EquipementAgricole et de Modernisation du Paysannat (CEAMP),a Government agency under the Ministry of Agriculture, with technicalassistance from Compagnie Francaise pour le Developpement des Fibres Textiles (CFDT). The unit operates on a commercialbasis, using mechanical cultivationmethods and employing temporaryworkers. Current yields are about 1.5 ton per ha, which is quite reasonable for dry farming.
3.07 Without additionalvater, there is little opportunity for any intensificationof land use since the water resourcescurrently available are fully utilized and the soil quality prevents an economic extensionof .ainfedcultivation.
Transportation
:3.08 The project area has poor road connectionswith the rest of the country. The Morondava-Tananariveroad (700 km) is paved only for 300 km, and cannot be used during the rainy season. Constructionof a new road :Lsnow being consideredby the Bank Group; if approved,work would start :Ln1973 and be completedby 1976. The road from Morondava to Belo sur Tsiribihina,a harbor about 100 km to the north, is also unpaved but it can be used all year round. To the south, the Morondava-Tulear road is :Elooded during the rainy season. The Morondava airport can be used by DC-4-type planes and regularly scheduled daily flights go to Tananarive and other major cities. Although port facilitiesare in poor condition, about two-thirdsof the regional traffic, estimated at 30,000 tons per year, :Lscarried by small coastal ships. A UNDP project is presently studying possible improvementto the harbor. This improvementand constructionof the new Morondava-Tananariveroad, would enhance the present adequacy of the Itransportationnetwork to handle the project produce.
Present Status of Project IrrigationFacilities
:3.09 The existing irrigation network consists of the Dabara intake on itheMorondava River. After crossing the project area, the Dabara Canal conveys water to a rice-cultivatedarea (900 ha) and to the North Canal, which branches off the Dabara Canal to irrigate some of the Ankilivalo plain. Because of the heavy sediment load carried by the Morondava River, winter flows silt up both the intake and the upper reaches of the canal, preventing their use during the rainy season. Rehabilitationworks would be required to overcome these deficiencies. - 5 -
IV. THE PROJECT
Project Description
4.01 The Morondava Irrigationand Rural DevelopmentProject is the first phase of a region developmentplan that would ultimatelyinvolve the irrigationof 30,000 ha. The overall plan would include construction of diversiondams on the Morondava and AndranomenaRivers and a storage reservoir on a tributaryof the Morondava. The project presently under considerationwould provide irrigationto three operationallyindependent units, totaling 9,300 ha. The first unit of 4,700 ha would be devoted to rice cultivationby some 2,300 small farmers to be settled there; the second unit would be developed as a state farm specializingin tobacco and peanut productionon 2,700 ha; and the third unit would be developed as a state farm for cotton productionon 1,900 ha. Governmentwould establish the Societe pour le DeveloppementEconomique de la Region de Morondava (SODEMO) to manage the project and the Rural EngineeringDepart- ment (GR) of the Ministry of Agriculturewould be responsiblefor construc- tion of major civil works. The Service Central de Mise en Valeur (SCMV) of the Ministry of Agriculturewould keep the Association informed of progress on the project.
4.02 Project works, summarizedbelow and describedmore fully in Annex 3, would include:
(a) a diversion dam at Dabara on the Morondava River;
(b) rehabilitationof about 64 km of main canals;
(c) a gravity irrigationand drainage system on 6,600 ha for cotton and rice cultivation;
(d) a sprinkler irrigationsystem on 2,700 ha for tobacco and peanut cultivation;
(e) on-farm development,including tertiary and quarternary canals and drains;
(f) improvementand constructionof about 90 km of roads in the project area;
(g) constructionof project buildings;and
(h) constructionof 10 new villages and expansion of 10 existing ones.
About 2,100 families, in addition to the 1,200 already in the area, would be recruited from other parts of the country and settled on the project as rice farmers or laborers on the state farms. A health contral program would be implementedas part of the settlementscheme to prevent the spreading of water-borneschistosomiasis. In addition the project would provide for - 6 -
the preparationby SCMV of a feasibilitystudy for a second phase irrigation project in the Morandova Region. Consultantswould be engaged to assist in the preparationof this study as vell as with the design and supervisionof constructionof project works, the establishmentand agriculturaldevelopment of the three project units, the settlementof farmers, and the provision of in-servicetraining to project personnel. The project would also include procurementof farm machinery, vehicles, and operationand maintenance equip- ment and establishmentof a research station. Constructionwork would begin in 1973 and be completedby 1979. A detailed constructionschedule is pre- sented in Annex 4.
Project Works
4.03 Dabara Diversion Dam. The diversion dam would include an intake structure,two gate-controlledsluiceways, a concrete overflow weir, and an earth embankment. Constructionof the dam would be carried out in two stages - the intake structure and sluiceways in 1973/74 and the overflow weir and earth embankmentin 1977/78. A temporary embankmentwould be built across the river to direct water into the Dabara canal during the 1973 to 1976 dry seasons.
4.04 Canale and Drains. Both existing main canals, Dabara and North, would be rehabilitatedand equipped with new intakes for the secondary canals serving the cotton and tobacco farms. The North canal would also be extended by about 2 km. Both canals would be unlined except for short sections where soils are pervious. Twenty-threeunlined secondary canals, with a combined length of 102 km, would be excavated to carry water to the state farms and the rice area. Three existing natural main drains would be widened, deepened, and equipped with check structures,while two new main drains would be excavated in the Delta area. A secondary drainage system would be constructed throughoutthe area.
4.05 Roads. About 24 km of existing secondary rural roads would be improved and 7 km of new rural roads would be constructed. About 12.5 km of these roads would be paved. The existing service roads along the main canals would be rehabilitatedand a new feeder road network of about 83 km would be constructedto serve the entire area.
4.06 On-Farm Development Works. On-farm developmentworks for the 6,600 ha of the rice and cotton areas would include bush clearing, deep plowing, leveling, and constructionof the tertiary and quarternary gravity irrigationsysteme, conveyingwater to turnouts serving lots of 3 to 25 ha. In the 2,700 ha of the tobacco farm, works would include bush clearing and th,einstallation of a sprinkler irrigationsystem. The area would be divided into 31 irrigationunits, ranging from 30 to 150 ha each. Diesel- driven portable pumping units would dischargewater from the secondary canals into buried asbestos cement pipes from which aluminum portable pilpes,with the necessary risers, sprinkler heads, valves, and fittings, would branch off.
4.07 Buildings and Research Station. Eighteen farm buildings for agriculturaloperations, 26 houses for SODEMO staff, and 900 tobacco drying - 7- barns would be constructed. In addition, a new 15-ha research station would be establishedfor investigationson cotton, tobacco, peanuts, and forage crops.
4.08 Villages and Health Facilities. Ten existing villages in the area would be expanded and 10 new ones constructedto accommodatethe settlers. Each village would be provided with schools, marketing facilities, public buildings, and roads. A technical training center and three new dispensarieswould be constructedand an existing hospital in the area would be enlarged to accommodatethe new settlers.
Water Supply, Demand and Quality
4.09 Water Supply and Demand. The project water supply would be obtained from the unregulatedflows of the Morondava River at the Dabara dam intake. This intake would also supply two other existing users, the citrus plantation (2,000 ha) and rice growers in the delta area (900 ha). Monthly river flows were estimated using mathematicalsimulation models and 14 years of 3 recorded flow. Although more than 80% of the total annual flow of 1,500 Mm occurs during the rainy season (Decemberthrough March), recorded and simulated flow data indicate that, even during Auguet, when the flow is lowest relative to demand, the water requirementsof all three schemes amounting to 7.1 m3/sec, as well as an additional flow of 1.5 m3/sec to meet sanitary requirements,could be met in 66 out of 69 years. While the water supply is therefore adequate at present to meet anticipatedproject needs, it could be affected by future developmentsboth upstream and downstream of the project. Assurances were obtained that, except as the Association shall otherwise agree, Government would not permit the river flows to be depleted below the project'sminimum requirementsby other works.
4.10 Water Quality. The quality of water in the Morondava River is excellent for agriculturalpurposes. Sample tests show that salinity and sodium and boron content are within safe limits. Further details of project water supply, demand, and quality are presented in Annex 5.
EngineeringDes4tp
4.11 Preliminary designs and cost estimatesbased on field surveys have been completed for the diversion dam, the irrigation and drainage system, and on-farm developmentworks. The available data are adequate for cost estimate purposes and as a basis for final design. However, the final design of the diversion dam would require additional foundationand soils investigationsand the constructionof a hydraulic model to determine the best location of various structures: intake, sluiceways,weir, and embankment. Overall layout of the project and designationof irrigable areas have been completed on a 1:5,000-scalemap, with 0.5-meter contours. This map is adequate for preparing the final plan. Design of both the gravity and the sprinkler irrigation and drainage systems would be conven- tional, and the data and criteria used in the feasïbilityreport are adequate for final design. Planning and estimates for on-farm development works are based on standard layouts for various types of treatment. Detailed -8-
-eld surveys would be required to establish elevations for land leveling and alignment of canals, drains, and roads within the farming area.
Cos-t Estimates
4.12 The project cost estimates of US$27.0 million include provision for civil works, settlement, health control, equipment, consulting services, and SODEMOoperation and management costs during the construction period. Coslt estimates for civil works are based on detailed construction quantities and unit rates obtained in contracts for similar works in Madagascar during 1971. Since, for the purpose of this project, SCMV, GR, and SODEMOare exempt frorn paying import duties, estimates are net of all such duties. Overall contlingencies amount to 24% including physical contingencies ranging between 10% and 20% of the cost of individual items, and a contingency of 5% annually for price increases for both local and foreign costs. The physical contingen- cies reflect the advanced stage of investigation and design for the irrigation system and the need for further investigations on the dam. The price con- tingencies are based on experience in recent years with cost increases for labor, materials, and supplies in the country and for goods imported, mainly from France and the USA. The foreign exchange component of US$15.3 million is based on a detailed breakdown of cost estimates and actual experience on conitracts recently awarded for similar projects in the country.
4.1:3 A breakdown of project costs is presented in Annex 6 and summarize,~ in the table below:
(FMG Million) (US$ Million) For- For- Foreign Local eign Total Local ei_n Total Exchange Civil Works 769 2,035 2,804 3.0 8.0 11.0 73 Set tlement and Health Control 852 306 1,158 3.3 1.2 4.5 26 EquLpment 12 234 246 0.1 0.9 1.0 95 Management and Operating Costs 439 23 462 1.7 0.1 1.8 5 Consultants 86 485 571 0.3 1.9 2.2 85 Sub-total 2,158 3,083 5,241 8.4 12.1 20.5 59 Contingencies Plhysical 242 246 488 1.0 1.0 2.0 50 Price 584 572 1,156 2.3 2.2 4.5 50 Total Project Cost 2,984 3,901 6,885 11.7 15.3 27.0 57
Financing
4.14 IDA financing would cover the estimated foreign exchange cost of the project (US$15.3 million), which is about 57% of the project cost. The balance of costs would be provided by Government (FMG 2,044 million); loans (FMG 840 million) from the Malagasy National Development Bank (BNM); and other equity participationin SODEMO (FMG 100 million). The project's financing plan would be as follows:
(FMGMillion) (US$ Million) % of Local Foreign Total Local Foreign Total Total
IDA Credit - 3,901 3,901 - 15.3 15.3 57 Government Contribution 2,044 - 2,044 8.0 - 8.0 30
BNM Loans 840 - 840 3.3 - 3.3 12
Other Equity 100 - 100 0.4 - 0.4 1
Total 2,984 3,901 6,885 11.7 i15.3 27.0 100
4.15 Governmentwould make available to GR, through annual budgetary allocations,all funds necessary to cover the constructioncost of major civil works, and the cost of GR's consultants. The remaining investments would be carried out by SODEMO,which would receive its funds in the form of grants, loans and capital contribution(para 5.04).
4.16 In order to expedite the preparationof final designs, it is proposed that expendituresincurred for consulting services to GR and SODEMO on the project prior to signing of the credit agreement, but after May 1, 1972, would be reimbursableunder the credit. Total disbursementsfrom the pro- posed credit for these expenditureswould not exceed US$200,000.
Procurement
4.17 The total cost, including contingencies,of works and equipment to be put out to local and internationaltender would be about US$19.9 mil- lion. Scattered contracts for constructionof settlementand health control facilities and for other small works amounting individuallyto less than US$100,000 and up to a total cost of US$1.0 million, would be tendered locally. Similarly, contracts for the purchase of off-the-shelfitems for the settlement and health control and for miscellaneousequipment costing less than US$10,000 each and up to a total cost of US$0.4 million would also be tendered locally. Procedures for local bidding are satisfactoryand there is sufficientlocal competition. All other contracts for civil works (US$17.6 million) and equipment (US$1.3million), would be awarded on the basis of internationalcompetitive bidding. A 15% preferencemargin, or the prevailing customs duty if lower, would be extended to local manufacturersin the evaluationof bids for equipment. The balance of the project cost, amounting to US$6.7 million, corresponds to; consultants,US$2.8 million, and operating cost during project construction,US$3.9 million. GR, with the assistance of its consultants,would be responsiblefor the contracts for the Dabara diversion dam and intake, the primary and secondary systems of canals and drains, and rural roads. SODEMO, also with the assistance of its consultants, would handle the tendering for on-farm developmentworks, establishmentof the research station, buildings, and the purchase of equipment for operation and maintenance,farm machinery and its own transportationvehicles. SODEMO, - 10 - with assistance from the Ministries of Ilealthand Education,would also supervise the constructionof settlement and health facilities. A list of the equipment to be purchase/ under the project ls given in Annex 7.
Disbursements
4.18 Disbursementsfrom the Credit account would be made on the followingbasis: (a) c.i.f. cost of imported equipment or 75% of local expenditures(representing the estimated foreign exchange component); (b) foreign exchange cost of consultants'services or 82% of total expend- itures; (c) 73% of total expendituresof civil works for the main works, for on-farm development,and for buildings and Research Station; and (d) 30% of total expendituresfor constructionof facilities for settlement and health control. The estimated schedule of expendituresand of disburse- ments are shown in Annex 8. Undisbursed funds would be available for cancel- lation.
Accounts and Audit
4.19 Separate project accounts would be kept by SCMV, GR and SODEMO. In accordance with procedures applying to all Government Ministries, SCMV and GR, which are part of the Ministry of Agriculture,are subject to annual audit by the Office of the Accountant General, reporting directly to the President. SODEMO accounts would be audited annually by an independent auditing firm to be selected by its Board of Directors and approved by Government. Assurances were obtained that (a) SCMV, GR and SODEMO would maintain separate accounts for the project; (b) SODEMO, with the assistance of an independentaccounting firm whose selectionwould be approved by the Association,would establishan accounting system for all its project operations; (c) SODEMO's accounts would be audited annually by the accounting firm; and (d) a certified copy of such auditing would be sent to the Associationwithin four months after the close of each fiscal year.
V. ORGANIZATIONAND MANAGEMENT
Project Authority
5.01 Overall responsibility for the project would rest with the Societe pour le Developpement Economique de la Region de Morondava (SODEMO) a corporation to be established by Government. SODEMOis expected to be organized along the lines of SOMALAC,the authority that is implementing successfullythe Lake Alaotra project (214-MAG). It would be supervised by a Board of Directors, comprising representativesfrom various Ministries, includingAgriculture and Finance, as well as from other public and private agencies concernedwith the project. The board, which would be headed by a president to be appointed by Government,would provide SODEMO with overall policy guidance. Assurances were obtained that (a) the board of directorswould include representativesfrom all Ministries concernedwith the project and from BNM; (b) the board wculd establishbroad policy guideline-i for carrying out the project and would be responsiblefor overall coordination - il -
of project activities;and (c) meetings of the board would be held at least once every three months. A final Governmentapproval of the statutes in a form acceptableto the Associationwould be a conditionof effectiveness.
5.02 During project construction,SODEMO would be responsiblefor the allocationof land to rice farmers, on-farm works, constructionof project buildings,purchase of operation and maintenanceequipment, farm machinery, and its own transportationvehicles, settlementof farmers and laborers, provision of all necessary supportingagricultural services, initiationof a health control program, creation of two state farms, and establishmentand operation of a research station. After the constructionperiod, SODEMO would continue to operate the two state farms, provide all the necessary supporting agriculturalservices to the rice farmers, and assume responsibilityfor operationand maintenanceof project works. SODEMO's headquarterswould be in Morondava,with field offices at Mahabo, Ankilivalo,and Analaiva to operate the rice farms and the cotton and tobacco farms, respectively.The Service Central de Mise en Valeur (SCMV),a Departmentwithin the Ministry of Agriculture,wouldbe responsibleon behalf of the Ministry for supervising SODEMO's activities. In addition,SCMV would also be in charge of carrying out feasibilitystudies for a second phase irrigationproject in the Morondava region.
5.03 A General Manager, to be appointed by the Board of Directors in consultationwith the Association,would be in charge of SODEMO's daily operations. He would be assisted by four deputies in charge of technical operations, finance and administration,settlement and social affairs, and research. Three operationalunits, headed by directors reporting to the Deputy Manager for technical operations,would be establishedto manage the rice farming scheme and the two state farme. In addition, special units would be established for operation and maintenance,research, accounting and marketing. 5.04 Out of the total project cost of FMG 6,885 million, Government would provide through annual budgetary allocationabout FMG 1,910 million for major civil works to be carried out by GR and for feasibilitystudies to be carried out by SCMV for a second phase irrigationproject in the Morondava Plain. The remaining investmentswould be carried out by SODEMO with funds to be provided by Government,BNM, and other investors. Government's contributionwould be in the form of loans (FMG 1,685 million) for a period of 40 years, including 10 years of grace, and at an annual interest rate of 3.5%, the current on-lendingrate applied by Government to agriculturalprojects; equity participation(FMG 200 million); and grants to cover the cost of settlementand research (FMG 1,750 million). BNM's contribution(FMG 840 million) would be in the form of a 15-year loan including a 2-year grace period, and bearing an interest charge of 6.25%. Other investorswould contributeabout FMG 100 million in the form of equity capital. It would be a conditionof effectivenessthat SODEMO's financialplan, after being approved by the Association,would be finalized. Further details of SODEMO's organization,staffing, financialstructure, and sources and application of funds are presented in Annex 9. 5.05 A consultingfirm would be engaged by SODEMO to assist it in implementingthe project. Two deputies to the General Manager, the three directors in charge of the rice farming unit and the two state farms, as well - 12 -
as an expert to head the operation and maintenanceunit, would be provided by these firms. The consultantswould also be responsiblefor the preparation of final designs and tender documents,evaluation of bids, supervisionof coDnstruction,and certificationof payments to suppliers and contractors. The employmentof a consultingfirm acceptableto the Associationunder terms of reference approved by the Associationwould be a condition of loan effect- iveness. 5.06 Positions other than those assigned to the consultantswould be filled by Malagasy nationals. Malagasy nationals would also be appointed as counterpartsto the consultantsholding key positions and would replace tlnemafter variable periods of in-servicetraining, for which the consultants would be specificallyresponsible. It is estimated that all expatriates would be replaced by local staff within 10 years. To ensure that SODEMO could attract qualified local personnel,as in the case of SOMALAC, its statutes would permit it to offer higher salaries and more fringe benefits than those generallygranted by Government. During negotiations,assurances were obtained that (a) the Associationwould be consulted in appointmentof the General Manager; (b) expatriatepersonnel would be replaced with local experts when their performancejustified such action and in agreementwith tlheAssociation; and (c) SODEMO's salary scales and other related benefits would be adequate to attract the qualified personnel required in the project area. Settlement and Health Control 5.07 There is little experiencein Madagascarwith Government-induced settlementprojects and Government is presently reviewing the criteria for selecting and attractingsettlers. These are as follows: (a) first priority should be given to farm families already living in the Morondava region; (b) families would be given priority over part-timeworkers, who, after some time, would return to their areas of origin; (c) familieswould be chosen from ethnic groups that are already representedin the project area; (d) all familieswould be allocated sufficientland to satisfy their subsistenceneeds (ithelatter is of particularimportance for the workers on the cotton and tobacco farms) and (e) farmers would be offered a lease-purchase contract establishing terms for land acquisition. A detailed study to establish selection criteria and other aspects of the settlementprogram would be carried out under the project by SODEMO with assistance from the consultants. 5.08 SODEMO would establisha migration service unit to be in charge of selecting potential settlers and organizingtheir transportationto and their reception in the project area. The migration service unit, headed by the Deputy Manager for Settlementand Social Affairs, would consist of a team aitproject headquarters,with a network of promotionalagents. Apart from the Morondava region, most of the promotionalwork would probably be done in the southern and south-easternregions of Madagascarwith the Betsileo and Aitandroy ethnic groups. 5.09 Bilharzia of the urinary type is presently endemic in the project area, affectingbetween 10 and 20% of the inhabitants. Two factors would affect the incidenceof schistosomiasisafter completionof the project -- rehabilitationof the existing irrigationand drainage system would slow the spread of the disease and facilitateits control, but the increasingpopulation density of the area would raise the chances of - 13 -
infectionand thereforethe incidence. Current estimatesindicate that, unless additionalmeasures are undertakento curtail the disease, about half the inhabitantswill be infected by 1980.
5.10 A two-stage program to control urinary bilharzia would be introduced. A minimum program, aimed at preventing the spread of the disease in unaffected areas and holding the incidenceof the disease to present levels in areas already affected,would be carried out over a six-year period. The program would include the constructionof a clinic to combat endemic diseases, as well as the expansionof an existing hospital in Mahabo. At the same time, a more comprehensiveprogram for total control of bilharzia, to be implemented after the six-year period, would be studied. During negotiations,assurances were obtained that (a) Government would introduce the minimum six-year program as well as carry out the necessary studies for the long-term program; and (b) the results of the studies would be sent to the Association by 1976 and, after consultationwith the Association,the approved recommendations would be implemented.
5.11 Overall responsibilityfor the settlementand health control program would rest with SODEMO but its educationaland health aspects would be carried out by the appropriateMinistries. Further details of the settlementprogram and the proposed health control measures are presented in Annex 10.
Civil Works
5.12 Constructionof major civil works, includingroads, would be the responsibility of the Rural EngineeringDepartment (GR) of the Ministry of Agriculture in charge of all such works throughout the country. GR has only a few qualified Malagasy engineers on its staff and therefore employs ex- patriate engineers,financed in part by the French Aid and Cooperation Fund (FAC). Even so, design and supervisionof constructionon major projects is generally assigned to consultants. A similar procedurewould be adopted for the project, vith the consultantsbeing responsible for the preparation of final desîgns and tender documents,evaluation of bids, supervisionof constructionand certificationof payments to contractors. After consult- ation with the Association,GR lnvited four consultingfirms to submit proposals for consultingservices and expects to make a selectionby June 1972. The employmentof a consultingfirm by GR, under terms of reference to be approved by the Associationwould be a condition of effectiveness.
AgriculturalResearch
5.13 Two centers are currently carrying out experimentson cotton and the use of red sandy soils in the Morondava region. Although they operate satisfactorily,present facilitiesare too small to meet the project's needs and a new research station would be constructed. The station would deal with tobacco, cotton, forage crops, and peanuts as well as with the suit- ability of red sandy soils for other crops. Details of present and proposed research activitiesare presented in Annex 11. Responsibilityfor research would rest with SODEMO, but the work would be carried out by the Institut de la RechercheAgronomique Malgache (IRAM),which operates the existing centers - 14 -
in the area with assistance from other specialized research institutes. About US$250,000would be provided by SODEMO to IRAM under the proposed credit to help meet the cost of foreign experts to be engaged on the new research station. During negotiations,assurances were obtained from Government that, within six months after signing the credit, SODEMO and IRAM would conclude a contract for the research program to be carried out under the project.
SupportingAgricultural Services
5.14 A supervised credit program would be carried out by the rice farming unit, under which farmers would receive technical assistance,all the necessary inputs in kind, and a small cash advance for subsistence. Paddy to be produced by the farmers would be purchasedby the marketing unit, which would have a monopoly on all such purchases in the area, and sold to the mills. Farmers would receive the proceeds of these sales after appropriate deductionsfrom each farmer's account to cover SODEMO's manage- ment costs, the price of inputs, and project charges.
5.15 During the constructionperiod (1973-78),SODEMO would need a totialof about FMG 300 million to cover the working capital requirementsof the tobacco and cotton farms and to finance operating deficits. After 1978, the two farms would generate sufficientcash surpluses to eliminate the need for short-termborrowing. Credit requirementsof the supervised credit program at full developmentwould amount to FMG 70 million per year. This amount would be made available to SODEMO by BNM at its going rate of 6% per year and relent to the farmers at 12%; this arrangementhas been satisfactoryin the Lake Alaotra Project. Assuranceswere obtained during negotiationsfrom Government that it would ensure the availabilityof funds necessary to meet the project credit requirement.
5.16 About 2,500 tons of fertilizerswould be required annually by the pro;ject,and no difficultiesare anticipated in purchasingsuch a quantity through existing commercialchannels. For the processingof produce, SODIEMOwould rely on existing facilitiesin the region, which could be expanded readily to handle the increasedproduction from the project area. A recently completed rice mill near Mahabo, with a present capacity of 20,000 tons per year and a design capacity of 40,000 tons per year, could handileall the paddy production in the region. t lcotton ginning factory in the area, operated by CFDT, has a present capacity of 3,000 tons per year and could also be expanded to absorb the additionalproject production. Operation and Maintenance
5.17 At present, responsibilityfor operation and maintenance of the existing irrigationfacilities rests with GR. Annual expendituresare about FMC 3.0 million, which is far below requirements. After completionof the sysitem,responsibility for operation and maintenancewould be transferredto SODI)1M0(para 5.02), except however, for the Delta Rice area that would remain witlhGR. The estimated annual expendituresfor operation and maintenance at thaittime would amount to FMG 57 million to be borne by the various units as fol:Lows: SODEMO rice farmers, 20 million; Tobacco farm, 19 million; cotton - 15 -
farm, 8 million; citrus plantation,8 million; and Delta rice area, 2 million. The annual operationand maintenancecost would be US$17 per ha for rice and cotton cultivationand US$27 per ha on the tobacco farm. These costs are reasonable. Assuranceswere obtained during negotiationsthat GR would continue to operate and maintain irrigationand drainage facilitiesin the Delta rice area. Assurancesvere also obtained that the Bezezika citrus plantationwould pay to SODEMO an annual irrigationand drainage service charge equivalentto FMG 4,000 for each cultivatedand irrigatedha.
Project Charges
5.18 To determineproject charges, the followingcosts, in FMG million, have been considered:
- Civil Works, excludingresearch station ...... 2,667 - Settlementand Health Control, excludingstudies .. 1,111 - Equipuent ...... 246 - Msnagement...... 462 - Consultants,excluding Second phase studies and research...... 418 - Physical contingencies...... 488
Total 5.392
Gosts to be recovered from each of the three project units would include individual investmentsin the unit plus a share of the common work allocated on the basis of the net area to be irrigated. The followingamount would be chargeableto each unit:
Project Cost Subject to Recovery Unit Total Per ha (FMG Million) (US$ Million) (FMG) (US$)
Rice Farms 2,569 10 544,000 2,130 Cotton Fara 1,031 4 537,000 2,110 Tobacco Farm 1,792 7 660,000 2,590
Total 5 392 21 576 000 2 260
5.19 According to SODEMO's draft decree, project charges on rice farms would amount to 600 kg of paddy per croppedha per year. Collection of project chargeswould start in 1979, the first year after completionof project works, and, based on the proJected farm-gateprice for rice, would total FMG 64 million per year throughout the area. The charges would permit full recovery of annual operation and maintenance costs (FMG 20 million) and SODEMO's administrative costs for operating the settlement scheme (FMG 12 million), plus an annual contribution of FMG 32 million toward recovery of capital costS.
5.20 The rate of project cost recovery on the two state farms takes into considerationtheir net income and the need to pay dividendsto - 16 -
shareholders. On this basis, it is estimated that after payments of opera- tion and maintenancecosts and administrativeexpenses, about FMG 8,700 million could be recoveredover the life of the project from the tobacco farm and FMG 4,400 million from the cotton farm. Annual contributions toward capital recoverywould amount to FMG 66,000 per ha on the cotton farm and FMG 100,000per ha on the tobacco farm. By comparison,the annual level would be FMG 8,500 per crop per ha on the rice farms. When discountedover thlelife of the project (40 years) at 10%, the present value of project capital and operating costs is FMG 4,360 million, while that of revenues from project charges is FMG 2,160 million. The present value of the Governmentsubsidy to project beneficiariesis thereforeFMG 2,200 million (US$8.6million) over the life of the project. Revenues would cover about 50% of costs at a 10% interest rate or 100% of the cost at 5% interest rate. Based on the cost chargeable to each of the three units (para 5.18), recovery of capital costs at 10% interestwould amount to about 17% of the investmenton the rice farms, 94% on the cotton farm, and 91% on the tobacco farm.
5.21 The proposed level of project chargeswould be about 24% of the farimincome on the settlement scheme, and would leave farmers with a per capita income of between FMG 25,000 and FMG 36,000 (para 6.08). Although at full developmentthis would leave farmerswith a per capita income below the projectedaverage for the rural areas (para 7.05), it is a reason- able charge consideringthat farmers are earning only about FMG 11,000 now and that they would receive substantialsecondary benefits, such as improved education,health and social services. Assurances were obtained that project chargeswould be imposed and collectionsmade in the project area so as to collect over the life of the project the equivalentof 600 Kg of paddy per cropped ha per year from the rice farms; and on the cotton and tobacco farms, all cash revenues,after deducting operatingexpenses and loan repayments.
VI. PRODUCTION,MARKETING, PRICES, AND FARM INCOME
Production
6.01 The main crops to be grown under the project would be rice, cotton, tobacco, peanuts, and forage. Rice cultivationwould be carried out on about 4,700 ha, divided into 2.0-ha farms, about 40% of which would be single cropped and the remainderdouble cropped. Cultivationon double cropped farin would be carried out by traditionalmethods, relying on buffalo and family labor. On single crop farms, however, land preparationwould be done with machines belonging to the cotton farm so that farmers would be available for work on the state farm; labor requirements would amount to about 240 mandays per 2-ha farm and would be met entirely by the family. At full development, paddy yields are expected to reach 4.0 ton per ha per crop; this level is already being exceeded on a 350-ha pilot settlement scheme in the region where farmers have readily accepted new high yielding rice varieties introduced by IRAM.
6.02 Medium staple cotton (Alcala 1-3/32")would be produced on one staitefarm in rotationvith a forage crop that would maintain soil fertility. - 17 -
Cropping intensitywould be 100%. Expected yield levels five years after the introductionof irrigationwould be 3.0 tons per ha. Burley tobacco, to be produced on the other state farm, would be grown every third year in rotation with peanuts and a forage crop. The forage crop would be grown every third year exclusivelyto restore fertilityand prevent soil infection. Cropping intensitywould be 133%. Tobacco would be dried, graded, and packed and peanuts shelled, washed, and packed on the farm. At full development, five years after the introductionof irrigation,yields are estimatedat 1.5 tons per ha for tobacco and 1.9 tons per ha for peanuts. Experiments with burley tobacco currentlybeing conductedby IRAM on similar soils yield above 3 tons per ha. Yields currently obtained for peanuts under rainfed conditions and with little or no fertilizerapplication are about 1.2 tons per ha.
6.03 Details of present and proposed cropped area and agricultural production are presented in Annex 12 and summarizedbelow:
Cropped Area Production Crop Present Future Present Future Increment __---- (ha)- --- (ton)------
Rice (paddy) 1,500 7,600 1,800 30,400 28,600 Cotton (seed) 500 1,400 750 4,200 3,450 Tobacco (burley) - 900 - 1,350 1,350 Peanuts (unshelled) - 1,800 - 3,420 3,420 Forage (dry) - 1,400 - 17,000 17,000
Total 2 000 13,100
6.04 Farms with two crops of rice per year would utilize about 80% of the family labor force. Two peak periods would occur during the year (March- April and September-October), but no hired labor would be required. Farms growing a single crop of rice would utilize about 40% of the family labor force. Owners of these farms would also work on the state farms as casual labor to meet seasonal requirementsduring peak periods (May through September); in total, about 66% of the potential family labor force on these farms would be used throughout the year. The cotton state farm would permanently employ about 250 families, who would supply about 70% of the farm's total labor requirement. The rest would be met by engaging temporary labor from the surroundingrice farms. About 750 families would be employed on a full-timebasis by the tobacco farm and would provide nearly all of that farm's labor requirements. Additional labor would be hired during peak periods from among the permanent laborers on the cotton farm. On the average, about 75% of the labor force of the 3,300 families in the project area would be gainfully employed. Monthly labor requirementsare shown in Annex 12.
6.05 In both state farms, operations would be mechanized,except for harvesting. Replacementof farm machinery by labor would adversely affect the tlming and quality of agriculturaloperations. In addition, such a replacementwould require the settlementof about 300 families in the project area. Employment of this additional labor force would, however, - 18 - be highly seasonal and the workers' income would be inadequateto support thieirfamilies. In the absence of supplementaryemployment opportunities in the region, this would not be a practical solution.
Marketing
6.06 Tobacco, cotton, and peanuts to be produced on the project would be exported. They would be transportedby sea from Morondava to either Majunga or Tulear and from there to Europe. Exports of burley tobacco from Madagascar presently amount to about 1,200 tons per year, the bulk going to the EEC where it is exempted from the prevailing import duties levied on non-membercountries. The 1,600 tons of lint cotton to be produced on the projectwould be marketed in France by CFDT, which has a monopoly on the purchasing,ginning, and exporting of cotton throughoutthe country. CFDT's contract with Government runs through 1976, at which time it is expected to be renewed. Exports of unshelledpeanuts from Malagasy to France presently amount to 4,000 tons per year and project produce would be channeled through the existing commercialoutlets. All three products,whose productionwould be negligible in terms of quantitiestraded on the world market, would find a ready market in Europe and could be sold at competitiveprices.
6.07 Malagasy is presently importing low quality and exportinghigh- quality rice. Since all the rice to be produced on the project would be of low quality (42% broken), it would be consumed in the province of Tulear, where the projected annual deficit would be around 65,000 tons of rice by th early 1980's. Thus, there should be no difficultiesin,disposing of all adclitional rice production from the project within the country. Details on demand projections for projeci production are discussed in Annex 13. Prices
6.08 Rice and cotton prices are fixed by Governmentat the beginning of eac:hyear but there are no Governmentcontrols on the prices of tobacco and peanuts. At present, farm-gateprices in FMG per ton are as follows: rice, 14,000; seed cotton, 60,000; tobacco, 248,000; and peanuts, 45,000. These prices were used in the farm income analysis. Based on the Bank's Economics Department'sworld market price forecast for 1980, the same prices were used in the economic analysis for rice, tobacco, and peanuts; somewhat lower prices were adopted for cotton. No monetary value was attached to forage since its value as a fodder crop would be about equal to its productioncost. Incaomeof Rice Cultivators
6.()9 Net incomes from farming activitieson the 900 single cropped rice farms, after payment of all productioncosts and project charges, would amount to FMG 70,000 per farm per year. Earnings from additionalwork on the cotton farm (para 6.04) are expected to be around FMG 28,000 per family thus bringing the total annual famîly income to FMG 98,000 (US$400),or about FMG 25,000 (US$100)per capita. On the 1,400 farms on which two crops of rice would be grown each year, net incomes would be FMG 114,000 (US$560), or about FMG 36,000 (US$140)per capita. By comparison,present income levrelsof project beneficiariesare about FMG 45,000 (US$180)per family, - 19 - or about FMG 11,000 (US$45)per capita. A breakdown of annual farm produc- tion costs and earnings at full developmenton the two types of rice farms is as follows:
Single Cropped Farm Double Cropped Farm (2 ha) (4 ha) -______------(FMG)------
Gross Production Value 112,000 224,000 Production Costs 46,000 Incoinebefore Project Charges 87,000 178,000 Project Charges 17,000 34,000 Income from Non-farming Activities 28?°°° -
Net Family Income 98,000 144,000 Per Capita Income 25,000 36,000
Income of State Farms
6.10 Details of annual revenues and expendituresat full development for the two state farms are presented in Annex 9 and summarized below:
Cotton Farm Tobacco Farm ------(FMC Million)------
Gross ProductionValue 252 489
Production Costs: Inputs il 49 Pest and weed control 40 - Equipment 22 30 Labor 33 78 Staff and administration 12 27 Replacement of drying barns - 8 Operation and maintenance 8 31
Total Production Costs 126 223
Net Income 126 266
The net income to be generatedby the farms would be used by SODEMO to help repay project costs. Based on the share of total project costs charged to each of the farms, the net income would permit the recovery at 10% interest of about 94% of the cost on the cotton farm and 91% on the tobacco farm (see para 5.20). Both enterpriseswould thus be financiallyviable operations. Details of income to accrue to permanent laborers on the farms are presented in para 7.05. - 20 -
VII. BENEFITS AND JUSTIFICATION
7.01 The project would rehabilitateand expand an existing irrigation scheme for the productionof export crops such as tobacco, cotton and peanuts anidprovide for import substitutionof rice in the sparesely populatedyet productivewest coast region of the country. It would generate about 6,000 jolbsand create new villages, schools, hospitals, and other public facilitifs for settlers from the more densely populated parts of the country where opportunitiesfor agriculturaldevelopment are limited. The project would also permit a more efficient use of existing underutilizedprocessiag facilitiesin the area and make a substantial contributiontoward realization of the Government'sgoal of developing the western region of the country, increasingrice production,diversifying exports, creating new employnment opportunitiesand upgrading the quality of life in the rural areas.
7.02 In evaluatingproject benefits, all farm-gateprices were derived from the Bank's EconomicsDepartment's world market price projectionfor 1980. Because of the lack of alternativeemployment opportunities in the region, family labor on traditionalfarms has not been costed, while unskilled labor required by the state farms has been set at the estimatedsubsistence requirementof FMG 75 per day, or 50% of the prevailingwages in the region. FuLl agricultural production is assumed to be reached over a five-year per1o0 after the start of irrigation. On the cost side, the following investments were excluded from the evaluation: the settlementand health program since their benefits,which would be substantial,were also excluded; a share of 15% of the common works charged to non-projectbeneficiaries; price contingencies;and half the wages of unskilledlabor engaged in project construction.
7.03 At full agriculturaldevelopment, 11 years after commencementof construction, the net value of agriculturalproduction would be about US$3.1 million. The correspondingvalue without the project would have been about US$0.1 million. When discountingcosts and benefits over the 40-year life of the project, the economic rate of return would be about 16%. Net annual foreign exchange earnings would amount to about US$2 million by the end of the constructionperiod and about US$3 million at full development.
7.04 A sensitivityanalysis was carried out to examine the following adverse conditions: about 20% reduction in all crop yields: 20% increase in constructioncosts; two-year extension of the constructionperiod; and a iour-yearextension of the developmentperiod. In every case, the rate of return would still exceed 12%.
7.05 Farmers to be settled in the area are presently at a subsistence level, with an estimated per capita income of US$45. This is well below the average per capita income of the rural Malagasy population,which is about US$80. At full development,annual family income on rice farms would range from US$400 to US$560 (per capita US$100 to US$140), while that of permanent laborers at the two state farms would be about US$300 (per capita US$75). The latter would, however, receive free housing on the state farms. The project would thus assist a very poor section of Malagasy's - 21 - rural population,but, even at full development,their income would still be below per capita rural income estimated to reach about US$140 by 1985.
VIII. AGREEMENTS REACHED AND RECOMMENDATIONS
8.01 During negotiations,agreement was reached on the following principal points:
(a) Governmentwould not permit the river flows to be depleted below the project'sminimum requirementsas a result of other works either upstream or downstream from the project, except as the Association shall otherwise agree (para 4.09);
(b) SODEMO's Board of Directorswould:
(i) include representativesfrom all Ministries concerned with the project and from BNM; and
(ii) establishbroad policy guidelinesfor carrying out the project and would be responsiblefor overall coordination of project activities (para 5.01);
(c) SODEMO would undertake the following:
(-) consult the Associationin appointmentof a General Manager;
(ii) replace expatriate personnelwith local expertswhen their performancejustified such action and in agree- ment with the Association;
(iii) provide adequate salary scales and other related benefits to attract qualifiedpersonnel (para 5.06);
(iv) introducethe minimum six-year program as well as carry out the necessary studies for initiationof the long-termprogram against bilharzia, sending the studies to the Associationby 1976, and implementits approved recommendationsin the area (para 5.10);
(d) project charges would be imposed and collectionsmade in the project area so as to collect, over the life of the project, the equivalentof 600 kg of paddy per cropped ha per year from the rice farms, and on the cotton and tobacco farms, all cash revenues after deductingoperating expenses and loan repayments (para 5.21). - 22 -
8.02 In addition to the customary conditions,the followinghas been agreed upon as a conditionof effectivenessof the proposed credit:
(a) after approval by the Association,Government would finalize SODEMO's statutes (para 5.01);
(b) a financialplan of SODEMO acceptableto the Associationhad been finalized (para 5.04);
(c) a consultant firm acceptable to the Associationhad been employed by SODEMO under terms of reference approved by the Association (para 5.05); and
(d) a consulting firm had been employed by GR under terme of reference approved by the Association (para 5.12).
8.03 With the indicatedassurances, the proposed project constitutesa suitable basis for an IDA credit of US$15.3 million.
May 25, 1972 MAiAGASYRkPUBLIC
MORONDAVAIRRIGATION AND RURATLDEVELOPMENT PROJECT
Climatological Data at Morondava Average Average Temperatures(1959-1968) Rainfall (1901-1971) ltLivU Wind Mean Maximum Minimum Sunshir.e VelocitîEvaoration
-(Oç) ~ ~ ~ - - z (mrT (hours) (m/sec)
January 27.3 31.8 23.1 238 12 81.3 226 274 2.8
r`eî)ruary 27.4 32.3 23.0 215 il 81.5 204 267 2.3
27.0 32.3 22.1 104 7 80.1 20h 285 2.1
ÀpriÀ 25.7 31.7 19.8 13 2 78.6 165 293 2.0
22.9 30.2 16.2 9 O 76.8 l'O 304 2.0
.Juxie 20.9 28.8 13.8 4 0 76.0 105 286 1.8
j u1àl 21.0 28.7 13.8 1 0 7h.9 l'1 298 2.0
,\ugUl , 22.1 29.0 15.3 2 O 76.h 1h2 .0 2.4
I)ept,e'1er 23.6 29.9 17.2 4 0 77.4 J7( 2.8
(otobe] 25.3 30.1 19.9 9 0 76.8 2-16 325 2.8
flve l! ,e 26.4 31.5 21 .3 26 3 77.1 227 314 2.8
--fIf3erb'r 27.2 31.8 22.8 1142 9 8c.o 228 280 2.4
Total. 767 L; 2,14Li 3,539
ici1
ANNEX 2 Page 1
MALAGASY REPUBLIC
MORONDAVA IRRIGATIOeAND RURAL DEVELOPMENTPROJECT
SOILS
1. Classificationof project lands is based on a semi-detailed(scale 1:50,000)survey that covers the entire AMVR and on a detailed one (scale 1:20,000)covering certain zones. Soils in the three main areas have thus been identifiedas follows:
(a) The AnkilivaloPlain
(i) Two different types of recent alluvial deposits from the AndronomenaRiver - soils having a light to medium texture and good hydrodynamiccharacteristics, suitable for cotton cultivation,and soils with poor drainage, due to a pseudogleydeveloped by a hydromorphicprocess. Under present conditions,the latter are suitable only for rice, but if the deficiencyis correctedby an adequate drainage system, they could also be used for cotton.
(ii) Old alluvial deposits from the Morondava River on depressedareas - presence of hydromorphyand fine texture; these soils are restricted to rice cultivation.
(b) The Mahabo Area. Recent alluvial deposits from the Morondava River, with hydromorphy;these soils are also restrictedto rice cultivation.
(c) The Analaiva Area. Old alluvial deposits of the Morondava River, consistingof tropical ferrugioussoils called "red sands", which require sprinklerirrigation and are suitable for tobacco and peanuts.
2. Classificationof the net project area (in ha) is as follows: ANNEX 2 Page 2
Zone Land Use Class II Class III Class IV Total
Ankilivalo Cotton farm 600 1,300 - 1,900 Rice (single cropped) 300 500 1,000 1,800
Mahabo Rice (double cropped) 400 800 1,700 2,900
Analaiva Tobacco farm - 2,700 - 2,700
Total 1,300 5,300 2,700 9,300
Miay 24, 1972 ANNEX 3 Page 1
MALAGASY REPUBLIC
MORONDAVA IRRIGATIONAND RURAL DEVELOPMENTPROJECT
Descriptionof the Project
A. Selection and Formulationof the Project
1. One of the Government'sobjectives in its five-year plan is to develop irrigationschemes in the fertile but sparsely populatedwestern basins in order to increase the production of rice and high value crops and to provide jobs for unemployedpeople living in more densely populated parts of the country where opportunitiesfor developmentare limited. The Morondava IrrigationProject would be the first stage of a plan that envisages eventual developmentof about 30,000 irrigatedha, using the waters of the Morondava and Andranomena rivers. Implementationof 8tudies for the project were recommendedby the Bank in 1966. The studies, which were financed by the UNDP, were subsequentlyprepared from 1969 te 1971 by a group of German and French Consultants (AGRAR-SATEC),with the FAO serving as the Executing Agency. The overall plan would involve the constructionof a regulating reservoir on one of the tributariesof the Monrondava River, and two diver- sion dams, one on the Morondava River and the other on the Andranomena River.
2. The proposed project was selected after studies were made of various alternatives. These studies showed that the unstable course and the high silt load of the Morondava River would render pumping uneconomic and that the constructionof a diversion dam at Dabara would be required before any significant future developmentof the area could take place. The relativelyhigh cost of this dam (about US$2.2 million) made it necessary to select a large enough project (about 10,000 ha) to justify this type of investment. In determining the size of the project, it was also necessary to take into account:
(a) the existing irrigation facilities in the area, their present stage of development,and their water requirements;and
(b) the availabilityof water during the dry season. ANNEX 3 Page 2
B. Description of Proiect Works
Diversion Dam and Appurtenant Structures
3. A diversion dam would be built on the Monrondava River approximately 10-m downstream from the existing intake structure. It and its appurtenant structureswould include:
(a) an intake structurewith five openings, each, 1.70m x 1.15 m, and equipped with sliding gates on the right bank;
(b) two gate-controlledsluiceways, 3.00 m x 1.20 m, adjacent to the intake structure;
(c) a concrete overflow weir 250 m long; and
(d) an earth embankmentapproximately 60 m long on the left bank.
4. Constructionwould be carried out in two stages: the intake structure and sluicewayswould be built in 1973 and 1974 and the overflow weir and the earth embankmentin 1977 and 1978. This staged construction would require that a temporaryembankment be built across the river during the 1973 to 1976 dry seasons to direct water into the Dabara canal, but the additionalcost of about US$35,000 is justifiedby the postponementof approximatelyUS$2.0 million of the investmentsfor 4 years. Furthermore, the proposed developmentof the project does not require that the permanent overflow weir and earth embankmentbe completed before 1978 since, after the destructionof the temporary embankmentby floods, the water level in the river would be sufficientlyhigh to ensure diversion of the water required for the project at the Dabara intake.
5. - Final design of the dam would require additional foundationand soils investigationssince preliminary studies have indicated the presence of sandy alluvial materials up to 40 m in depth deposited in a valley excavated by the river in an eocene formation. A hydraulic model would also be built to determine the best location for the various structures,which would be desiqned to meet the following two criteria: (a) divert flows of up to 25 m /sec into the Dabara Canal; and (b) allow passage of a 100-year flood (approximately7,000 m3/sec) without raising the water level at the Dabara bridge (about 100 m upstream of dam) above elevation 85.00.
6. Estimated constructionquantities for the major items are summarizedbelow: ANNEX 3 Page 3
Sheet Piling Excavation Earth and Rock Concrete
(m2) (m3) Fill (m ) (mn) Intake Structure Sluiceways 1,600 14,000 30,000 1,300
Overflow Weir and Earth Embankment 6,600 31,000 21,000 13,000
Total 8,200 45,000 51,000 14,300
Main Canals
7. Dabara Canal. Rehabilitation works along this 52-km canal would be divided into three sections:
(a) From the Dabara intake to the settling basin (km 0 to km 5.0) Along the first 3 km of this section, the slope would be steepened to 0.5% and a new concrete lining installed to increase the silt load carrying capacity. The three drainage culverts would also be rebulit and an earth embankment,with gabions on the river side slope, would be constructedto protect the canal against the 50-year flood of the Morondava River. The remainingpart, includingthe settling basin struc- ture, would require only minor rehabilitation.
(b) From the settling basin to the Morondava siphon (km 5.0 to km 49.0). This section would remain unlined and require only minor rehabilitationsuch as cleaning and regrading. Two new intakes would be constructedfor the secondary canals of the tobacco farm near Analaiva and the wasteway structure towards Lake Tsivalaka vould be equipped with sliding gates. Three drainage culvertswould be built at 11.2 km (where the canal crosses the Mande River), 33.9 km and 43.8 km.
(c) From the siphon to the Delta distributor (km 49.0 to km 52.1). Although it is only about 3 km long, this section is badly damaged and would require major repairs. The first 1.5 km would be lined with a clay blanker to reduce losses, and a 500-m earth enbankment,with gabions on the river side, would be constructedon the left bank of the Morondava River upstream of the siphon to protect the canal against the floods.
8. North Canal. This canal has its intake on the Dabara Canal at 12.9 km. It would require cleaning and remodelingand would also be extended by 1.80 km after crossing the Tsivavy River. An intercepting drain would be constructedon the esst aide of the canal between km 0.5 and km 3.7 ane the water thus collectedwould be conveyed to Lake Tsivalaka by means of a culvert and a drain. Five new intakes would be built for secondary canals serving the cotton farm (Ankilivalo). ANNEX 3 Page 4
9. AnalamitsivalanaCanal. This new unlined canal, 11.7 km long, would be bullt to irrigate 1,900 ha (gross) east of the North Canal and would have its lntake on that canal. Three siphons would be constructed for crossing the Tandila, Tsivavy, and AndranomenaRivers. The water surface ln the canal would be regulatedby five automatic gates installed at concrete check structuresand there would be 11 intakes for secondary canals. A 3-m wide maintenance road would be built on the right bank.
10. ConstructionQuantities. Excavationand fill quantities for the main canals are estimated as follows:
Canal Excavation Fill
(m3) (m3) Dabara km O to km 5.0 40,000 42,000 km 5.0-to km 49.0 91,000 44,000 km 49.0 to km 52.1 31,000 21,000
Sub-total 162,000 107,000
North 68,000 63,000
Anamitsivalana 80,000 72,000
Total 310,000 242,000 Main Drains
i1. Runoff water is conveyed by natural drains in two directions-- west to the sea and south to the Morondava River. The ground slopes generally at 1.4% in an east-west direction,which is favorable. The projectu system would consist of three main drains -- the Tandila, Tsivavy, and Mande Rivers -- which would be deepened and widened where necessary. Check struc- tcures,made with gabions, would be lnstalledto limit erosion. Water level in Lake Tsivalakawould be controlledby an outlet drain connected with the Tandila River. In addition, two main drains (Kabatomenaand Androvakely), having a total length of 7 km, would be excavated in the rice-cultivatedDelta area.
12. Constructionquantities for the drains are estimated as follows: ANNEX 3 Page 5
Drain Length Excavation Check Structures
(m) (m ) (No)
Tandila 14,100 200,000 8 Tsivavy 8,000 72,000 8 Mande 11,800 70,000 3
Secondary Irrigationand Drainage Systems
13. Mahabo Rice Area. Five secondaryearth canals (MN1, MN2, MS1, MS2, and Bezezika),having a total length of about 27 km, would convey water to the Mahabo rice area, occupyingapproximately 1,800 ha (gross)both north and south of the Dabara Canal. Each of the sub-areasserved would have a secondarydrain conveyingwater to either the Morondava and Mande Rivers or to Lake Tsivalaka.
14. Ankilivalo (Cottonand Rice) Area. Sixteen secondary canals (five from the North Canal and 11 from the AnalamitsivalanaCanal), having a total length of about 60 km, would convey water to the Ankilivalo area, consistingof approximately6,200 ha (gross). Secondarydrains, having a total length of about 51 km, would be excavatedbetween them. Although it is not expected that the groundwaterwould rise to a level detrimental to the cultivationof cotton, a network of piezometerswould be installed in the cotton area to follow the ground level so that, if necessary, the drainage system could be amended.
15. Analaiva Area (TobaccoFarm). This area of about 2,700 ha (net) would be sprinklerirrigated. Two secondary canals (AnalaivaIl and III), having a total length of about 14.5 km, would feed 29 pumping stations,which would, in turn, deliver water to buried pipes (para 19). Two secondary drains would drain off water accumulatedin the imperviousdepressions (known as Ranvory).
Roads
16. Only two all-weatherroads exist in the project area: one from Morondava to Mahabo, a distance of 50 km, and the other from Morondava to Belo-sur-Tsiribihina,a harbor about 106 km to the north of Morondava. Developmentof the area would require improvingexisting rural roads and constructingnew cnes.
17. The road from Bevoay to Mahabo would be reconstructedand approxi- mately 12.5 km would be surfacedwith macadam. A new rural road of about 7 km would be constructedthrough the tobacco farm (Analaiva)to connect Betsinefoand Betsipotika. About 69 km of farm roads would be built along the secondary canals and 14 km of feeder roada would be built throughout the area. Also, all existing service roads along the main canals would be rehabilitated. ANNEX 3 Page 6
On-Farm DevelopmentWorks
18. Rice and Cotton Area. On-farm developmentworks for this 6,600- ha area would include bush-clearing,deep plowing, leveling, and construc- tion of the tertiary and quarternarygravity irrigationand drainage system. Spacing between tertiary canals would be from 200 to 300 m and lengths would vary from 400 to 800 m. A tertiary canal would thus feed irrigation units having areas between 8 and 25 ha. Quarternary canals would be installedat 100 m spacing where the ground is flat and convey water to lots of 2 to 3 ha. Drains would be associatedwith the canals and excavated halfway between them. Tertiary canals would have a design capacity of 6 i/sec/ha for rice and from 3.5 to 5.0 1/sec/ha for cotton, according to soil texture.
Tobacco Farm
19. On-farm developmentwork for this 2,700 ha area would include bush clearing and the constructionof a sprlnklerirrigation system. The area would be divided into 31 irrigationunits, ranging from 30 to 150 ha each. Diesel-drivenportable pumping unita would dischargevater from the secondary canals into buried asbestos cement pipes 1,600 to 2,400 m long, from which aluminium portable pipes, 6 m long, with the necessary risers, sprinklerheads, valves, and fittings,would branch off. The length of the sprinklerlaterals would vary from 150 to 250 m the portable pipes being connectedby couplers of the self-sealingtype. Sprinklerswould be spaced in 18-m squares; water dischargeswould be 2.75 m3/h, with operating pressuresof 2 kg/cm2. jBuildingsand Research Station
20. Housing for staff and buildings required for offices and for agriculturaloperations are listed in Table 1. In addition, a new 15 ha research station vould be establishedat the tobacco farm for investigations on tobacco, peanuts, cotton, and forage crops (Annex 10).
May 24, 1972 ANNEX3 Table 1
MALAGASYREPUBLIC
MORONDAVAIRRIGATION AID RURALDEVEIDPXRIT PROJECT Bailding5
No. Unit Cost Total Cost - - (PMGmillion) - -
Rice Area Warehouses 2 3.0 6.0 Housing (Superintendents) 5 2.0 1D Sub-Total 16.
CottonState Farm (Ankilivalo)
Farm buildings Officeand centralwarehouse 1 6.0 6.0 Centralworkshop (equipped) 1 10.0 10.0 Garagesand farm workshops 3 3.0 9.0 Housing Dlrector 1 6.0 6.0 Superintendenta 4 3.5 14.o Sub-Total 45.0 TobaccoState Farm (Analaiva)
Farm buildings Office and centralwarehouse 1 6.0 6.o Central and workshop (equipped) 1 10.0 10.0 Garages and farm workshop 6 2.0 12.0 Dryingbarns 900 0.03 27.0 Gradinghouse 4(,50 m2) 1 58.5 58.5 Packinghouse m 2400 1 5.0 .0 Storagehouse 350 m2 1 4.5 .5 Housing Director 1 6.0 6.o DeputyDirector 1 4.5 4.5 Superintendents 5 3.5 17.5 Sub-Total 151.0 SODEMOHeadguarters Housing General Manager 1 8.0 8.0 DeputyManagers 4 6.o 24.0 Superintendants 4 3.5 14.0 CentralOffice 1 4.0 4.0 Sub-Total 50.0
Total 262.0 May 2.5,1972
Annex 4 ':able i
M4ALA(IASYREPUBLIC
H)RMDAVAIRRIGATION AN1D RURAL DMEIDP)MNT PROJlT Completion Dates for Major Work Items
Issue of Award of Completion ol' Tender Docwnents Contracts Constructioii
1 . i )abara J >an
a) Intake and Sluiceways DeOember 1972 Mg' 1973 Povember 1974
b) Overflouweir ermbankment October 1976 April 1977 November 1978
2, Prirnary and iecondary Canals arn d loads
a) Virst Ph.2se Decmiber 1972 Hay 1973 November 1975
b) PhsePienond October 1975 April 1976 Noveynber1978
3. COr-farrn Development WJorks
;t) dicp aw(l Cotton areas Dee3uber 1972 MW 1973 Niovernber 1978
b) '-i'obaccO Farrri October 1973 April 1974 November 1978
MALACASYREPUBLIC
MORONDAVAIRRIGATION AND RURALDEVE:lPMENT PROJET
CONSTRUCTION SCHEDULE
Year (Calendar) 1973 1974 1975 1976 1977 1978 Total Item of Works-
Main Works Lntake and sluiceways overflow weir and embankment Dabara Dam - - 40 12 Dabara Canal (km) - 52 il 3 North Canal (km) 14 5 7 Anamitsivalana Canal (km) - - 12 5 412 3 15 4 4 Main Drains (km) 43 65 20 18 Roads (km) 103
Tobacco Farm (Analaiva) 13 12 Secondary Network (km) - 25 450 500 630 560 560 On-Farm Works (ha) 2,700
Buildin3s - - - - -
Cotton Farm (Ankilivalo) 6 6 13 13 6 Secondary Network (km) 44 250 250 530 530 200 140 On-Farm Works (ha) 1,900
Buildings
Rice Area 7 24 35 33 23 12 Secondary Network (kn) 134 1,1009 1,603 1,300 700 On-Farm Works (ha) - -,300 7 4,700 >
Buildings -,40 - -
Area to be Developed (ha) 250 700 2,130 2,760 2,060 1,400 9,300 ' v
ANNEX 5 Page 1
MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURALDEVELOPMENT PROJECT
Water Supply, Demand, and Quality
Supply
1. The project water supply would be obtained from the unregulated flow of the Morondava River. The Office de la Recherche Scientifiqueet Technique Outre-Mer (ORSTOM)began measuring the flow of the Mo ondava River at Dabara,where the watershed covers an area of 4,650 km , in September 1951, but because some years were missed, only 14 years of record are available (Table 1). Data indicate that the average annual flow of the river is 49 m3/sec (1,500 Mm3), with 81% taking place during the four months of the rainy season (Decemberthrough March). The water- shed has a small retention capacity and the dry season flow is generated from the aquifer located in the sandstonearea in the upstream part of the watershed. Vegetal cover is light and, as precipitationsare intense, erosion is significant (annualdepth of erosion is about 2 mm). As a consequence,the river, which also has steep slopes, carries a heavy sediment load (mostly sands) and does not have a stable regime.
2. Since the period of recorded flows is short, mathematicalsimulation models were developed using data-generatingtechniques for estimatingfloods and for studying the influence of potential reservoirs on the availability of water for irrigationduring the dry season. These models took into account all available hydro-meteorologicaland geomorphologicaldata, as well as data on the two adjacent rivers, the Mangoky River to the south and the TsiribihinaRiver to the north. The calibrationof models was success- ful and dry season flows were thus predicted for a period of 69 years.
3. The maximum recorded daily rainfall in the watershed was slightly above 200 m on January 17, 1970, which resulted in a recorded peak flood of 6,000 m3/sec at Dabara, whereas the estimated 100-year flood has a peak of 7,000 m3sec.
Demand
4. Net irrigation requirementshave been computed by using Penman's formula. Table 2 shows field requirements,which take into account irriga- tion losses estimated at 35% and 25% for gravity and sprinklermethods, respectively. The overall efficiencyhas been estimatedat 50%. ANNEX 5 Page 2
5. Irrigationachemes to be served by water available at Dabara intake are:
(a) the project area;
(b) Bezezika citrus plantation;and
(c) paddy fields in the Delta area.
Every monthly record of simulated flow shows that the corresponding irrigation Aemand would have been included. Moreover, an excesa of at least 1.5 m /sec, which is consideredan acceptablesanitary flow, would have occurred 66 out of 69 years. Table 3 presents supply and demand at Dabara intake. Maximum project demand is 6.1 m3/sec in June, when some 6,600 ha would be irrigated,the average demand being 2,400 m3/ha.
Quality
6. The quality of water resourcesis excellent for irrigation purposes. According to the classificationof the United States Salinity Laboratory,,the water of the Morondava River belongs to clase Cl-Sl, i.e., non-salineand free of alkaline hazard. The main characteristicsof this water are:
(a) Electric Conductivity: 200 micronhos/cm(at 25C)
(b) Sodium Absorption Ratio (SAR): 0.19 - 0.34
(c) Boron: 0.03 mg/l
May 24, 1972 MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURAL DEVEtOPMENTPROJECT Average Monthly Flow of Morondava River Measured at Dabara Station
(m3/ sec)
Monthly Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average
1952 141.0 67.6 76.0 21.8 12.7 11.6 10.5 9.6 8.7 7.9 7.9 68.9 37
1953 129.0 97.1 77.5 16.0 14.4 13.1 11.9 10.8 9.7 8.9 n.a n.a 39
1957 117.0 132.0 120.0 24.8 10.5 10.0 9.3 8.8 8.3 7.8 n.a n.a 45
1959 93.1 73.2 37.2 12.4 11.4 10.4 9.5 8.6 7.8 7.2 33.1 87.4 33
1960 105.0 170.0 64.6 10.9 10.0 9.0 8.2 7.4 6.8 6.2 8.0 125.0 44
1961 196.0 91.0 96.0 14.0 12.7 11.6 10.5 9.6 8.8 8.0 n.a n.a 46
1964 136.0 192.0 113-0 17.6 12.5 11.5 10.5 9.6 8.8 8.0 34.3 67.5 52
1965 268.0 98.0 103.0 12.6 11.5 10.4 9.5 8.6 7.8 7.2 15.0 102.0 54 34 1966 73.0 130-0 34.3 27.6 12.5 11.4 10.3 9.5 8.6 7.8 11.6 68.6
1967 146.0 45.5 286.0 23.6 12.5 11.4 10.3 9.5 8.6 7.8 15.9 68.2 54
1968 121.0 318.0 67.0 15.5 14.0 12.6 11.3 10.4 9.5 8.6 16.7 141.0 62
1969 167.0 237.0 50.4 39.4 20.5 17.3 14.5 12.6 10.6 11.9 15.1 114.0 59
1970 227,0 90.8 73.7 28.6 19.5 17.4 16.2 14.5 13.2 14.7 108.0 58.9 57
1971 102.0 192.0 123.0 27.3 21.5 18.6 16.8 15.4 13.1 12.3 n.a n.a 54
Average 144 138 94 21 14 13 il 10 9 9 26 90 49
: ebrwLary 172 MALAGASY REPUBLIC
MORONiDAVAIRRIGATION AND RURAL DEVELOPM4T PROJECT Irrigation Demand (Penman method)- (m-"/ha)
Month Evaporation Effective Rainfall Irrigation Demand ïisce All uther Rice (rainy Rice (dry Cotton Tobacco Peanuts Forage Crops season) season)
January 2,260 1,800 1,190 700 - - -
February 2,o040 1,400 1,080 1,000 - 200 _ 200 -
March 2,o40 700 520 2,100 - 1,400 - 700 700
April 1,650 - - - - 2,000 - - 1,100
May 1,300 - _ - 2,000-/ 1,600 - - 1,000 2/ June 1,050 _ - - 2,300- 1,300 1,100 - 800
July 1,110 - - - 1,700 700 1,200 - 1,000
August 1,420 - - - 2,200 - 1,500 - 1,300
September 1,760 - - - 2,700 - -
October 2,160 - - 1,700 - - -
November 2,270 140 130 4,100-/ - - _ 1,300 -
December 2,280 780 710 2,300 _ 1,000 - 900 -
Total 21,340 4,820 3,630 10,200 12,600 8,200 3,800 3,100 5,900
1/ Evapotranspirationcoefficients: rice - 1; other crops - 0.5-0.8.Irrigation efficiencies: gravity65%; sprinkler,75%. 3 ~~~~~~~~~~~~~~3 2/ Rice fie4d pre-irrigatedin November(2,500 m3/ha) for the rainy season crop and in May (2,000 m /ha) and June (1,500m /ha) for the dry seasoncrop.
February 1972 ANNEX5 Table 3
MALAGASYREPUBLIC
MORONDAVAIRRIG&TION AND RURAL DEVELOPMOET PROJEOT
Water Demand at Dabara Intake-
May June July August September October
ProjectArea
Rice (2,900ha) 3.3 4,0 2.6 3.4 4.3 2.6 Cotton Farm Cotton (1,400 ha) 1.2 1.0 0.5 - - - Forage (500 ha) 0.2 0.2 0.2 0.4 - - Sub-Total 1.4 1.2 0.7 0.4 - -
Tobacco Farm Tobacco(900 ha) - 0.5 0.6 0.7 - - Forage (900 ha) o.4 0.4 0.4 0.7 - - Sub-Total 0.4 0.9 1.0 1.4 - - Total ProjectArea 5.1 6.1 4.3 5.2 4.3 2.6
Delta Area
Rice (900 ha) 1.0 1.1 0.8 1.0 1.3 0.8
Bezezika Plantation
Citrus (2,000 ha) 0.8 0.7 0.7 0.9 1.1 1.3
Total Water Deznd 6.9 7.9 5.8 7.1 6.7 4.7 Available flow_/ 10.2 9.7 9.2 8.6 8.2 7.7 Exess 3.3 1.8 3.4 1.5 1.5 3.0
1/ Demand at Dabara intake has been computed assuming 30% conveyance losses.
2/ Corresponds to the flow that would have been exceeded for 66 out of 69 years of recorded and simulated flows.
February 1972
ANNEX6 MÀLAGASYREPUBLIC Table 1
MOR0NDAVAIRRIGATION AND RURALDEVELOPMENT PRWJECT
Cost Estimates ____ (FMG millions- -;------(US$ '000) ------% Local Foreign Total Local Foreign Total Foreign Exchange
Civil Works 769 2,035 2,804 3,015 7,976 10,991 73 A) Main Works Dabara Dam 138 412 550 541 1,617 2,158 75 Dabara Canal 61 183 244 239 718 957 75 North Canal il 34 45 43 133 176 75 Main Drains 26 80 106 102 314 416 75 Secondary Network 115 350 465 451 1,373 1,824 75 Roads 20 61 B1 79 239 318 75 B) On-Farm Development Tobacco Farm 85 490 575 333 1,923 2,256 85 Co-ton Farm 33 98 131 130 384 514 75 Rice Area 80 242 322 314 950 1,264 75 C) Buildings and Research Station 200 85 285 783 325 1,108 30
Settlementand Health Control 852 306 1,158 3,342 1,201 4,543 26 Studies 19 28 47 74 110 184 60 Construction of facilities 501 214 715 1,964 841 2,805 30 Equipment 21 64 35 84 250 334 75 operating Cost 311 - 311 1,220 - 1,220 -
Equipment 12 234 246 47 919 966 95 Operation and Maintenance 5 101 106 20 396 416 95 Farm 6 115 121 24 451 475 95 Transportation 1 18 19 3 72 75 95 Management 439 23 462 1,722 91 1,813 5
Local Personnel 233 - 233 914 - 914 _ OperatingCosts 206 23 229 808 91 899 10
Consultants 86 485 571 335 1,9D5 2,240 85 SCMV 14 76 90 53 300 353 85 RED 19 100 119 75 392 467 85 SODEMO 53 309 362 207 1,>213 1,420 85 Contingencies 826 818 1,644 3,239 3,208 6,447 50
nr>! cil 242 246 488 949 965 1,914 50 Price 584 572 1,156 2.29 2.243
TOTAL 2,984 3,901 6,885 11,700 15,300 27,000 57
1/ Civil 1torks:15% on Dabara Dam and 10% on other items; Settlement and Health Control: 20% on construction of facilitiesand 15% on equipment;Equipment: 10%; Consultants:10% on engineering.
May 17, 1972
ANNEX 7
MALAGASY REPJBIIC
MORONDAVAIRRIGATION AND RURAL DEVEIA)PfET PRDIJICT
Equipment
Unit Price Quantity CIF Morondava Total - - (FMGmillion) - -
A) Operation and Maintenance 106.0
Crawler excavator withdragline (0.5 m3) 1 13.7 13.7 Low loader 3 1 10.3 10.3 Rubber-tiredexcavator (0.3 m ) 1 7.0 7.0 Crawler tractorwith dozer (125 hp) 1 17.0 17.0 Crawler trac or 'ith dozer (90 hp) 1 7.5 7.5 Scraper (6 m) 1 2.5 2.5 Rubber-tiredtractor (70 hp) 1 1.2 1.2 Motorgrader 1 4.2 4.2 Flat-bed trucks (4-ton) 2 1.2 2.4 Dump trucks (h-ton) 3 `2.4 7.2 Trench digger 2 3.5 7.0 Sub-total _ _ Of.o Spare parts (20%) 16.0 Miscellaneous 10.0
B) Farm Machinery 121.0
i) Cotton Farn (Ankilivalo) 50.0
Rubber-tiredtractors (70 hp) 16 1.2 19.2 Reversibleplows (3-row) 16 0.3 4.8 Sowing and fertilizingmachines (4-row) 8 0.4 3.2 Trailers 16 o.5 8.0 Other implements - - Sub-total _ _ Spare parts (20%) - - 8.0 Miscellaneous - - 2.0
ii) Tobacco Farmn(Analaiva) 57.0
Rubber-tiredtractors (70 hp) 10 1.2 12.0 Rubber-tiredtractors (40 hp) 10 0.9 9.0 Reversibleplows (3-row) 10 0.3 3.0 Sowing and fertilizingmachines (4-row) 8 0.4 3.2 Trailers 10 0.5 5.0 Packing presses (for tobacco) 4 1.0 4.0 Shellerimachines(for peanuts) 7 0.4 2.8 Washing equipment (for peanuts) 1 5.0 5.0 Other implements - - 2.0 Sub-total _ - 46.o Spare parts (20%) - - 9.2 Miscellaneous - - 1.8 ANNEX7 Page a (omt 'd)
MALMSY REHJBLIC
NORONDAVAE X9IAXD MJURLDEVEOPMINT PROJECT Equlpment
Unit Price Quantity CIF Morondava Total -T--M m3llionY--- iii) Research Station i .o
Rubber-tiredtractor (40 hp) 1 0.9 0.9 Implements - - 0.5 Irrigation equipment - - 9.6 Sub-total - - 11.0 Spare parts (20%) - - 2.2 Miscellaneous - - 0.8
C) Vehicles 38 - 15.0
Total cost of Equipment 242.0
1VMarchJ972 ANNEX8 Table 1
MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURAL DEVEWL0PMENT PROJECT
Schedule of Expendiliures (»f millioa n
Calendar year 1973 1974 1975 1976 1977 1978 TOTAL
Civil Works 285 462 464 402 680 431 2,804
A) Main Works Dabara Dam 90 40 - - 230 190 550 Dabara Canal 55 100 46 - 43 - 244 North Canal - 37 8 - - - 45 Main Drains 5 4 46 8 36 7 106 Secondary Network 27 110 102 98 101 27 465
Roads - - - 51 16 14 81
B) On-Farm Development Tobacco Farm (Analaiva) - 96 107 134 119 119 575 Cotton Farm (Ankiliavalo) 17 17 37 37 14 9 131 Rice Area - - 75 110 89 48 322
C) Buildings and Research Station 91 58 43 44 32 17 285
Settlement and Health Control 235 422 221 160 60 60 1,158
Studies 20 27 - - - - 47 Construction 150 300 165 100 _ _ 715 Equipment 35 50 - - - - 85 Operating Costs 30 45 56 60 60 60 311
Equipment 28 59 69 58 24 8 246
Operation and Maintenance - 31 25 29 14 7 106 Farm Machinery 24 24 40 25 8 - 121 Transportation 4 4 4 4 2 1 19
Management 24 44 71 90 112 121 462
Local personnel 13 14 32 44 61 69 233 Operating Costs il 30 39 46 51 52 229
Consultants 90 92 120 97 97 75 571
SCMV 20 30 40 - - - 90 RED 26 15 15 26 26 il 119 SODEMO 44 47 65 71 71 64 362
Contingencies 1114 247 260 303 395 325 1,644
Physical 70 110 88 79 86 55 488 Price 44 137 172 224 309 270 1,156
Total Project Expenditures 776 1,326 1,205 1,190 1,368 1,020 6,885
A/An estimated US$200,000 for consulting services during 1972 are included in 1 973 expenditures MOR0NDAVÂIRRIGATION AND RURALDlE Â)F?4ET PROJECT Futimated S8heduls of Diabursenients
IDA Fiscal bear Oumulative Disbursement and Quarter at end of Quarter-US$ million 1 972/73
Decemnber31, 1972 0.2 March 31, 1973 0.6 June 30, 1973 1 .0
1 973/74
September 30, 1973 1.14 December 31, 1973 1 .9 March 31, 1974 2.5 June 30, 1974 3.1
1 974/75
Septeniber 30, 1974 3.8 December 31, 1974 4.4 March 31, 1975 5.0 June 30, 1975 5.6
1975/76
September 30, 1975 6.3 December 31, 1975 6.9 March 31, 1976 7.5 June 30, 1976 8.1
1 976/77
September 30, 1976 8.7 December 31, 1976 9.3 March 31, 1977 10.0 June 30, 1977 10.7
1 977/78
September 30, 1 977 11.4 December 31, 1977 12.1 March 31, 1978 12.8 June 30, 1978 13.4 1978/79 Septmber 30, 1978 14.0 December 31, 1978 14.6 March 31, 1979 15.0 June 30, 1979 15.3 ANNEX 9 Page 1
MALAGASY REPUBLIC
MORONDAVA IRRIGATION AND RURAL DEVELOPMENT PROJECT
Project Authority (SODEMO)
Organization and Ownership
1. SODEMO would be set up as a limited stock (share) company with a capital of FMG 300 million divided into 30,000 shares of FMG 10,000 each.
2. Shareholders and their participation would be:
Distribution of Capital
Shareholder £D No of shares (FMG million)
Malagasy Republic 56 16,800 168 Province of Tulear 10 3,000 30 BNM 10 3,000 30 Chamber of Commerce, Morondava 5 1,500 15 CEMIP 5 1,500 15 Syndicat des Communes 4 1,200 12 Cooperatives 2 600 6 SCET 2 600 6 CFDT 2 600 6 Agrar and Hydrotechnik 2 600 6 OFMATA 2 600 6
Total 100 30,000 300
3. The Board of Directors would be made up of representatives of:
(a) each of the Ministries concerned with the project;
(b) BNM;
(c) Province of Tulear;
(d) Chamber of Commerce, Morondava;
(e) Syndicate des Communes and Cooperatives; and
(f) The consulting firms owning shares of SODEMO (SCET, CFDT and Agrar).
The Board would establish broad policy guidelines for carrying out the project and would be responsible for coordination of project activities. Meetings of the Board would be held at least once every three months. ANNEX 9 Page 2
4. The objectivesof SODEMO would be set forth in the Statutes as follows:
(a) to cooperatewith other agencies responsiblefor agricultural developmentin the MorondavaRiver basin;
(b) to undertake studies and works to promote agricultural developmentin the region of Morondava;
(c) to develop livestock
(d) to settle farmers and laborers in the region;
(e) to promote agriculturalresearch;
(f) to ensure adequatewater supply to the irrigatedlands vithin the Morondavabasin and assess and collect charges from the beneficiaries;
(g) to market agriculturalproduce;
(h) to undertakeland consolidationand distributionand provide necessary supportingagricultural services to rice farmers; and
(i) to manage state farms for the productionsof high value crope.
Activities
5. (a) During project constructionSODEMO would be responsible for the land consolidationand distributionto rice farmers, on-farm works, constructionof project buildings, purchase of operationand maintenanceequipment, farm machinery and its own transportationvehicles, settlement of farmers and laborers,provision of all necessary support- ing agriculturalservices, initiation of a health control program, creation of two state farms, and establishmentand operationof a research station. The land consolidation and distributionto rice farmerswould be carried out followingthe method used by SOMALAC. Rice farmerswould be allocated two-ha plots per family. Permanent laborers at the cotton state farm would be allocated0.3 ha plot for irrigatedrice cultivation(single crop) while those at the tobacco farm would be given one-ha plot for dry farming. The research stationwould be operated by IRAM under contract to SODEMO.
(b) after the constructionperiod, SODEMO would continue to operate the two state farms, provide all the necessary supporting agriculturalservices to the rice farmers and assume responsibilityfor operationand maintenanceof ANNEX 9 Page 3
project works. The supporting agricultural services to rice farmers would be similar to those provided by SOMALACi.e., SODEMO would distributewater to each unit, assist farmers in obtainingshort term credit, supply them with needed inputs, and create farmers' cooperativesthat would eventually be able to take over the functionsof the extensionservice staff. On the state farms, SODEMO will train the laborers and farm leaders who would progressivelytake over the respon- sibilitiesof SODEMO techniciansand cropping superintendents.
6. To carry out its activitiesSODEMO would be organizedalong the lines indicated in chart I of this Annex. The General Manager would be appointedby the Board of Directors in consultationwith the Association. In order to attract qualifiedlocal personnel,SODEMO statutes would permit it to offer salariesand fringe benefits similar to those of SOMALAC. SODEMO would also engage consultantsto assist it in implementingthe project. As indicatedin Table 1 of this Annex, SODEMO would employ in its staff expatriateconsultants to fill key positions until they can be replaced by their Malagasy counterparts. The appointmentof these counter- parts would be made after consultationwith the Association. During the project constructionperiod, SODEMO's consultantswould also assist SODEMO in the settlementof families in the project area, prepare final designs and tender documents,evaluate bide, superviseconstruction and certify payments to suppliersand contractors.
FinancialStructure
7. SODEMO would receive its funds from Government,BNM and private investors. The terms on which the funds would be made availableare explainedin para 5.04 and shown In the attached Table 2. Based on the detailed cash flow presented in Table 2, it can be seen that after meeting the financialcommitment for constructing,operating and maintaining the project, SODEMO would be able to repay all loans, as well as to generate a surplus which would permit it to repay Government all project costs subject to recovery at 5% interest. Annual surplusesto be generatedby the cotton and tobacco farms are presented in Tables 3 and 4, respectively.
May 24, 1972
MALAGASY REP18LTC
MORONDAVA IRRIGATION AND RURAL DEVELOPMENT PROJECT
SODEMO : Staffing Recuire-nents end Salaries
Calendar Year Item Annual Salary 1980 1981 1982/84 1985/ Z012 mrlinM-a- 1973 1974 1975 1976 1977 1978 1979
1. Central Office
3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 General Manager (M) 3.0 3.0 3.0 3.0 8.0 8.0 8.0 8.0 8.0 - - Deputy Manager (Techrical) (F) 8.0 8.0 8.0 8.0 8.0 - - - 2.0 2.0 2.0 2.0 2.0 Deputy Manager (Technical) (M) 2.0 - - - 8.0 8.0 - - - - - Deputy Manager (Financial) (F) 8.0 8.0 8.0 8.0 8.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Deputy Manager (Financial) (M) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Deputy Manager (Settlement) (M) 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Assistart Financial Dir. (M) 1.0 - 1.0 1.0 1.0 70.0 13.0 - - - - -Engineering Services (F) - 14.0 14.0 20.0 20.0 6,0 6.0 - - - - O & M Esgineer (F) 6.0 - - - 6.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 O & M Engineer (M) 1.5 - _ 7(5 10.0 12.5 15.5 15,5 15.5 15.5 15.5 O & M Personnel - - - 5.0 5.5 6.0 6.0 6.0 6.0 6.0 6.0 Geoeral Services _ 3.0 3.0 4.0 5.5 67.0 63.0 41.0 41.0 41.0 33.0 33.0 Sub-Total 3/ 40.0 41.0 53.0 63.0 2. Rice Area (Extenoion Service)7
6.0 6.0 6.0 6.0 6.0 Director (F) 6.0 6.0 1.5 1.5 1.5 1.5 1.5 1.5 (M) 1.5 Director 1.0 1.0 1.0 Deputy Dtrector (M) 1.0 2.0 2.0 2.0 2.0 Zone Superintendent (T) 2.0 2.0 2.0 3.0 5.0 5.0 5.0 5.0 5.0 5.0 Zone Superintendent (M) 1.0 1.0 3.6 6.0 6.0 6.0 6.0 6.0 6.0 Monitor 0.12 1.2 1.5 2.0 2.0 2.5 2.5 2.5 2.5 General Services 1.0 16.1 22.5 22.5 23.0 24.0 16.0 16.0 Sub-Total 11.2
3. Cotton Farm (Ankilivalo)
6.0 6.0 Director (F) 6.0 6.0 6.0 6.0 6.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 Director (M) 1.5 1.5 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Cropping Ssperistendent (M) 1.0 1.0 1.0 2.0 3.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Workshop Superintendent (M) 1.0 1.0 1.0 1.0 1.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 General Services 0.8 0.8 1.0 1.2 12.7 13.0 13.0 7.0 7.0 7.0 7.0 7.0 Sob-Total 8.8 8.8 10.0
4. Tobacco Farm (Analaiva)
6.0 6.0 Director (F) 6.0 6.0 6.0 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Director (M) 1.8 1.5 1.5 1.5 1.5 1.5 1.5 Deputy Director (M) 1.5 2.0 4.0 4.0 4.0 4.0 4.0 2.0 Cropping Soperintendent (T) 2.0 2.0 1.2 2.4 2.4 3.6 3.6 4.8 4.8 Cropping Sup)rintendent (M) 12. 4.0 4.0 6.0 6.0 8.0 8.0 8.0 Technicien (M) 0.5 2.0 2.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 Workshop Superintendent (M) 1.0 1.0 1.0 1.2 1.5 1.5 1.5 1.5 1.5 1.5 General Services 0.8 1.0 19.2 22.2 18.2 19.4 21.4 20.6 18.6 Sub-Total 11.8 12.0
5. Research Station
6.0 6.0 Deputy Manager (F) 6.0 6.0 6.0 6.0 6.0 2.0 2.0 Depoty Manager (M) 2.0 2.0 2.0 2.0 2.0 5.0 5.0 5.0 Specialinto (F) 5.0 5.0 6.0 6.0 6.0 Assistants (M) 0.5 2.0 6.0 6.0 2.0 2.0 General Services 1.0 2.0 2.0 2.0 21.0 5,2e-Total , 11.0 21.0 21,0 21.0 21.0
142.7 141.7 89.2 91.4 85.4 76.6 58.6 Grand Total 59.8 70.8 107,0 124.6_
Notes: t/ rxpeodit.ros for foreign consultants exclude ohec-et of bousisg, offices and cars. Peson Service National Aotif Froncais2. 2/ (M) 14alagasy; (F) Foreign Export: (T) member of volu.tary aid program (Misereor. Corps, year 10. 3/ Extension Service specifically assigned to rice cropping would cease after NORt1 NAJAA 6072RAlN21 AN~Nl RAIKA I
1903 1971£914 1976 1977 1978 1~~~~~~~~~973-1978197 19 1 991 190 11983-1984 198§-1986a-9307 19o8 1900 1-0> 1991 1992 1993-1997 1998-27)02 2003-2007 2008-2012
1. Coanromont Crant~~~i1/ 302 587 341 266 124 130 1,2503 82 87 82 82 82 42 £2 82 82 82 82 82 82 82 82 2. OaaCapital 190 00 - - - - 300 ------3. Jasa 117 21453 480 790 685 56£ 2,823 ------3.1 Clavernn,stt2/ 8£ 186 352 423 350 28£ 1,685 ------3.2 3 N057 29 57 130 307 335 280 1,138 ------3.2.1. Onv---ots 3/ 29 57 130 188 212 225 840 3.2.2. Shor tor 4/- - - 121 122 50 298 ------
4. Opaoatiog Snoplla -IraiStto Paroi 5/ - il 8 3£ 36 158 293 2149 781 3227 360 392 392 3 92 392 39? 392 392 392 392 39 9 .1 Catt - il 8 22 36 76 153 101 116 121 125 126 126 126 126 126 726 126 126 126 126 126 42 Tabaro,-- 12 38 82 137 14£ 165 206 230 266 261, 266 266 266 266 266 266 266 266 286
5. rj,vîJa7. - - - - 133 133 133 137 10 130 130 130 130 13013 130 130 130 130 1.1 Partio£paots 125 125 125 122 122 122 122 122 122 122 122 122 122 122 122 5.1.1. Cotton stase fart 6/ ------21 21 21 20 20 20 20 20 20 20 30 2£ 20 20 20 5.1.2. lobtot store fart 8/ ------40 40 40 38 3£ 38 38 38 38 38 38 38 38 38 38 5.1.3. Site trafitiono.lfara 2 - - - 64 64 64 64 64 64 64 64 64 64 64 64 64 64 64 5.2 on..partinipaor. 8 - -t 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
TOTAL 569 991 829 1,035 883 856 5,163 464 496 542 5732 604 604 604 604 604 604 604 604 604 604 604
APPLICATIONO0F PUNDS
1. osttI-otio anf £o-alh Cootro1 289 548 300 223 78 82 1,520 ------2. RasaarL atius paratiog oasI 13 39 41 43 46 48 230 3. lilf ing 47 70 54 59 45 25 300 ------4. sfrsfvlottn ok 2£ 139 2584 383 317 266 1,409( 5. Eqaipti,et 32 34 57 40 13 1 1799 ------0.1 Pati s"iarilay 28 29 52 35 12 - 16 ' ------1.2 Trs..sporrsion 4 O O 5 3 1 23 ------
6. Nanago-ttn .sd aperstitg oasis 25 29 73 109 150 1722 5 7. Cans.oltants 40 41 66 77 81 74 379 ------8. sa boora-o 3 10 27 59 101 138 238 ------8.1 Goetet2 6 16 29 43 54 150 8.2 85!1 4 Il 30 58 84 18(8 ------8.2.1. I-vest-.ten 1 4 il 23 44 66 149 ------8.2.2. Obori,et- - - - 7 14 18 39 ------
9, Ansisoa empestes ai-reraontr-ols ------8.1 SOatrlesta aaf Hasltlx Contra1 - -- 82 82 82 82 82 82 82 82 82 82 82 82 82 82 82 9.2 0paeseafeqo1pe;n -tt-_ - - 5 5 5 73 73 3 S S 5 5 73 5 723 O 9.2.1 Ope-ai-n .sf iîtnise ------32 32 - - - - -32 - 32 - 9.2.2 Pat nahnr . ------36 36 - - - - -36 - 36- 9.2.3 Traspoetetiion - - - 5 S O S S 5 s s s s s 5 S 5 9.3 ila...gat-ttrand operatiof rors--t - - 122 125 116 135 103 80 80 80 80 80 8£ 8£ 80 80 88 8.4 Uebl Sav£e- - - - - 245 274 268 135 188 188 185 178 163 142 l18 92 92 92 92 9.4.1. Sosrneat (Inv-tternt) 59 59 59 39 92 92 92 92 92 92 '2 92 92 92 92 9.4.2.:B8)- - - 186 213 209 96 96 96 93 86 71 50 26 - - - - 9.5 Retors to o-Pîtal -lu-- - 10 10 l10 10 1£u 10 10 10 10) LUl 10 101£1 10
TOTAL 469 910 902 993 833 806 4,913 464 496 481 937 458 433 362 355 340 319 295 337 269 337 269 SURPLUS2/ 1. Carret 180 81 173> 42 50 50 250 - - 61I 215 146 171 282 249 264 285 309 267 335 26 3 2. Cnntlative 100 181 108 15£ 200 200 250 200 311 526 81s 1,331 1,813 1,862 2, 126 2,1.11 2,720 4,855 5,730 7,965 874
ES£TISIATEDWOR06IN0 CAPITAL RiQOIRIIOENTS 13 50 180 150 200 250 200 250 15£ 250 250 250 250 250 250 250 250 250 250 25 5
/io na toiso: (i) Sailtt-tr aof I)alth Contr-l, and (i0) Rasearoh Station opersing Cso 2/To oe. ntso: (1)80%Iof on-fart ,-klponob; (81Pr aaioyadtrnprilaorb*lt soif(1117 -onato-ts datIOf iLh.oirol oif Tb1s an -ool Or -epaif il,3 aona jstlîstnt_o-t alaia 1983 ot 3.5~ s 3/ To nana oasi oU: (i 20'. of on-fart fevelap-.t -oks1 ond (il) M.. oagr-tn, farina roitoiapoif is lot notî hr ropod 1 15 yas nlft o 2 y_a gran pariof or6.257/ P.o. 4/ To noeraokiag tapitol reqsiresat sad balan.o dffloit donisg tosroino67. pt. 5/ £n tbUn3 _oo4,of tAis Anses 67/ 1.oo rapanasion -d na -iooanoîa-d oportiog ao-ts ol 00DEMO allo-bla o. the stst farts 7/Cala1atad as 600 kg of pafdy pan aoppad Ia., ta toto apersaita -df naaoon Ot,0 70 stisa apert ing ti.a ji- Cara sod partialttvn I oersss 8/ To Saaoll. o Pro leriba orh-rd. Cal-lated at NOCG4,900 (0016)1 par 'la Ila a-o pl, ai îdasataacasa laaî a Iaonad 97/ Cîto1tarîttotoi-dof-ia 1991 o--ard nati ba tar-d av_ on tho Coer _- -ratr -otov, itrsoo tIl n mjo aloiS noi ,oqopeltr a arpota aa- tloonn -ad toula s roi_or ro RCED MALAGASYREPUBLIC
MORONDAVA.IRRIGATION AND RURAL DEVEPOMENT PROJECT
Operating Accounts of the Cotton Farm (?îG million)
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983-2012
IREVEiJUES- _ __ Cotton Sales 22 18 42 8h 150 186 222 240 246 250 252
EXPEJDITURES On-farm productioncosts Inputs 1 1 2 5 8 9 10 il i1 11 11 Pest and weed control 5 h 8 20 30 35 38 38 38 40 4o Equipment 3 3 5 il 18 22 26 27 28 28 28 Labor 3 3 6 14 22 27 31 32 33 33 33 Sub-total 12 il 21 50 78 93 105 108 110 112 112 Operating costs Staff and administration - - - - - 13 13 13 12 12 Operation and maintenance - - _ - - 8 8 8 8 8
Sub-total ------21 21 21 20 20 Total expenditure 12 il 21 50 78 93 126 129 131 132 132
'SURPLUS. Operating surplus 10 7 21 34 72 93 96 111 115 118 120
Depreciation (20% of equipmentl 1 1 1 2 4 4 5 5 6 6 6
î,tal Surplus il 8 22 36 76 97 lOi 116 121 124 126 T l !AL(4GA3.Yo£?EPU BIC
MORONDAVAIRRIGATION AND RURALDEVELOPMET PROJECT
0perat ing Accounts of the Tobacco Farra ( FIIG million)
1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983-2012
REVENUES Tobacco Sales - - 10 30 70 136 210 240 290 312 335 Peanuts Sales - - 22 47 82 111 135 136 138 ih6 154 Total - - 32 77 152 247 345 376 428 458 489
EXPENDITURES On-farm production costs Inputs - - 4 10 20 30 40 44 49 49 49 Equipment - - 6 13 21 29 36 38 38 38 38 Pumping - - 1 5 8 10 12 12 12 12 12 Replacement olZ drying barns ------8 8 8 8 8 Labor - - 5 14 25 42 59 68 74 78 78 Sub-total - - 16 42 74 111 155 170 181 185 185 Operating costs Staff and administration ------30 30 30 27 27
Operation and maintenance - - 19 19 19 19 19 Sub-total - - - - - 49 49 49 46 46 Total Expenditure - - 16 42 74 111 204 219 230 231 231
SURPLUS
Operating surplus - _ 16 35 78 136 141 157 198 227 258
Depreciation (20> of equipment) - - 1 3 4 6 7 8 8 8 8
Total Surplus - - 17 38 82 142 148 165 206 235 266
CD X tC7 "o MALAGASY REPUBLIC
MORONDAVA IRRIGATION AND RURAL DEVELOPMENT PROJECT SODEMO'S ORGANIZATION CHART
BOARD OF DIRECTORS
GENERAL MAAGR ""
DEPUTY MANAGER DEPUTY MANAGER (Administration & t DEPUTY MANAGER c guæmoinuDEPUTY MANAGER I Settlement & Finance) (Research) (Technical) Social Affairs
MARKETING ACCOUNTANCY; RESEARCH ONFAINRMWRKS RICE COTATE ST SECRETARIAT STATION OPERATION AND FARMS STATE STAa 6
Wor(d Bank- 6864
ANNEX 10 Page 1
MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURALDEVELOPMENT PROJECT
Settlement and Health Control
1. It is estimated that when all construction is completed,some 3,350 farm families vlll be needed to provide the labor required for efficientoperation of project facilities. At present, there are only about 1,300 farm families in the project area s0 that, assuming an average family size of four persons, slightly more than 8,000 people vould have to migrate to and permanentlysettle in the area over a six-year perlod.
2. A preliminarystudy vas carried out by the Governmentin 1971/72 to devise ways and means of attractingsettlers and providing the needed infrastructure,and to estimate the cost of necessary services. Settlement serviceswere categorizedin the study, under four headinge:
(a) migration service;
(b) village construction;
(c) educational facilities;and
(d) medical facilitiesand health control.
Migration Service
3. The activitiesof the migration service vould include selecting potentialsettlers in the villages of their origin, providing transport and subsistenceallowances to them, and receiving them in the project area. It is anticipatedthat most of the settlerswould come from the southern and southeasternareas of Madagascar, from tribes that are already representedin the Morondava region (Betsileo,Antandroy). The migration service would be set up as a central team at project headquarters,with a network of promotion- al agents in areas of recruitment.
Village Construction
4. Immigrantswould be settled in villages, each to comprise an average of 150 familles at firet but capable of expanding in subsequent stages. Works would include houses, roads and communal facilities,such as schools, a market place, a bath house, public buildings,and storage space. About 10 new villages would be constructed,while about 10 existlng villages would be expanded and their communal facilitiesimproved. The number and location of these villages would be more precisely establishedin a detailed settlementstudy to be completedby 1974. ANNEX 10 Page 2
EducationalFacilities
5. The number of elementary echool buildings needed has been estimated on the basis of four classes to a building, with some 40 to 50 children in each class, and on the assumption that each settler's family would have about two children of school age. The cost of school equipment and teachers' salaries during the initial six-year period have been included in cost estimates.
Medical Facilitiesand Health Control
6. The present health situation in the project area is poor. There is a high incidenceof malaria, intestinalparasitic infection,measles, and pulmonary infections,and infant mortality is high (30 to 40% in the f'irstfive years). Present medical infrastructureis scanty and almost entirely concentratedin the town of Morondava. Only Analaiva has a dis- pensary (one nurse) and Mahabo has one hospital staffed by one resident doctor, one nurse, and two midwives to handle 31 beds, including 17 maternity beds and 150 consultations per day. During the rainy season, no medical care is available at all to a large section of the population.
7. As part of the settlementprogram, an epidemiologicalcenter would be constructednext to the present Mahabo hospital, the capacity of which would be about doubled. In addition, three new dispensarieswould be constructedat Analaiva,Ankilivalo, and Bezezika. The project would provide hospital and dispensaryequipment, staffing at the various centers (including two doctors for the epidemiological center and another one for the hospital),and housing, and such items have been included in the cost estimates.
8. As a result of studies carried out by Dr. A. Degremont,a public health consultant,there can be no doubt that S. Haematobiumvesical schistosomiasisis endemic in the project area. During the appraisal mission, 300 parasitologicalexaminations were performed on the urine of school children of both sexes and the incidenceof infectionvas found to be 10%. While examinationof bodies of water at the time of appraisal revealed the presence of the intermediate hosto of S. haematobium (Bulinus o'btusispira) in only one pond, indications are that they are much more widespread in the rainy season. The salinity of the surfacewater, measured by conductimetryat more than 50 water localities,is low and therefore favorableto the multiplicationof these molluscB.
9. With or vithout development,the incidenceof vesical bilharziasis vill increase rapidly and spread in the area surroundingits existing foci (Mahabo,Analaiva, Bemanonga,suburbs of Morondava,Androvakely). The Morondava plain developmentproject, however,will have two effects:
(a) Positive. The restructuringof the irrigationsystem vill undoubtedlyslow the spread of the disease and, in any case, facilitateits control; and ANNEX 10 Page 3
(b) Negative. Bringing in labor from the outside and increasing density of the populationwill raise the chances of infection and thereforethe incidenceof the disease.
On the basis of a present incidenceof 10 to 20%, it can be estimated that 40 to 50% of the inhabitant8of the region would be infected with vesical schistosomiasisby 1980. The incidencein the Mahabo-Tsivalakaand Analaiva areas would probably be around 90% because of the unhealthy condi- tions resulting from the many channels and marshes. A campaign against bilharziasiswould prevent the introductionof schistosomiasisin unaffected regions, limit its spread in endemic areas, and finally, considerably reduce the incidenceof the disease.
IrrigationNetwork and Bodies of Water
10. Irrigationchannels, even those made of earth, do not necessarily provide a good habitat for B. obtusispira,but a carefulwatch would be kept for some time on zones where the current is slow. Growth of aquatic and semi-aquaticvegetation would be kept to a minimum by proper and regular maintenanceof the canals. Earth channels would have a barrier of sisal to protect the banks against erosion, to prevent zebus from damaging the channels, and to prevent bathing except at definite, readily controlled points. Unused water would be discharged into drains or rivers, and formation of artificial reservoirs of the feeding of temporarylakes would be avoided. River or stream beds make good drains because their sandy bottoms and the "flushing"by floods in the rainy season limit the growth of vegetation and make the biotope unfavorableto Bulinus. Some of the projected drains would be most hazardous because they would not discharge into a river but would create more or less permanent reservoirsin depressions. These reser- voirs, would be enclosed by an impenetrablebarrier of thorny vegetation. At present, Lake Tsivalaka probably harbors no Bulinus obtusispira,but it constitutesa hazard in regard to vesical bîlharziasis,since, if it ever became infected,it could not be treatedwith molluscicidesbecause of the Eschiorna crassipes (waterhyacinths). This lake will therefore require careful and systematicinspections.
11. The stagnant ponds or artificialborrow pits of the Mahabo- Tsivalaka and Analaiva regions are excellent habitats for Bulinus obtusispiraand constitutea dangerous source of infection. Because treating them with molluscicideswould always be difficult and uncertain, they would be filled in or drained if they could not be fenced off effec- tively. Artificialborrow pits will undoubtedlybe formed during contruc- tion work but their banks would be made as steep as possible and they would be placed a good distance from villages if they were not drained or effectivelyenclosed. Single-croprice fields generally form a reservoir of molluscs only if they are kept more or less permanentlyunder water by uncontrolledirrigation, but double-cropfields are a possible source of transmission for vesical bilharziasis. Their treatment with molluscicides, however, is extremely difficult and can be carried out effectivelyonly when they are re-submerged after temporary drainage for weeding or tillering ANNEX 10 Page 4
the rice. The danger they present can thereforebe reduced only by health education among the inhabitants.
12. The health control program, in addition to the expansion of existing facilities,would include a campaign to improve sanitary habits and hygiene, the acceptanceofewhich would be facilitatedby the better communal facilities to be constructedin the villages. In addition, the program would also include a preliminaryepidemiological study to perform the following tasks:
(a) prepare a map of all bodies of water in the region;
(b) conduct monthly malacologicalexaminations of all selectedbodies of water, noting distributionof molluscs, their types, and frequencyof infectionof intermediate hosts, and performing chemical measurementson the water;
(c) perform parasitologicalurine studies in all the main villages in the project area from random population samples; and
(d) train technicalpersonnel, 8uch as microscopistsand mollu8c control officers.
The objective of this minimum progran would be to control the disease only in the developed zones (Analaiva,Bezezika, Mahabo, and Ankilivalo),which would probably allow the unaffected areas (Ankilivalo) to be protected for a time and the incidence of the disease to be kept down to its present level in the affected areas. However, sooner or later, incidenceof the disease would increase in the surrounding areas and there would be a greater chance of the protected inhabitantsbecoming infected,even on brief stays outside their areas. Since the minimum programwould not suffice to prevent the spread of bilharziasisinto the developedareas, under such conditions, it would subsequentlybe expanded to include:
(a) - regular malacologicalexamination of bodies of water In the region;
(b) - molluscicidal treatment of all bodies of water harboring infected intermediate hosts; and
(c) - systematic examination and chemotherapeutic treatment of all inhabitants of the areas concerned who show symptons of vesical bilharziasis. 13. The cost of the epidemiologicalstudies as far as they will be carried out during the initial six years of the project, as well as the cost of the detailed settlement study have been included in the cost estimates. Responsibilityfor the epidemiologicalstudies would rest with the center at Mahabo, whereas the project authority (SODEMO)would be responsible for the settlement study.
May 24, 1972 ANNEX 1 1 Page 1
MALAGASY REPUBLIC
MORONDAVAIRRIGATION AND RURALDEVELOPMENT PROJECT
Research Station
1. Agriculturalresearch in the Morondava Plain started in 1968 at the Ankilivalo station to improve the yield of cotton grown on alluvial soils and at the Antevanema station to find the most suitable crops and irrigationmethod for red sandy soils.
Ankilivalo Station
2. This station concentrateson cotton research. The work is conductedby the Institut Recherche Coton et Textile (IRCT),with financial assistance from the French Aid and CooperationFund (FAC). Results obtained at the station have shown that both the Alcala and Stoneville varieties could be grown under irrigationwith good results. These varieties are already grown in the area under rainfed conditions by Compagnie Francaise pour le Developpement des Fibres Textiles (CFDT). A small irrigated coffee plantation (0.25 ha) was also established in 1970 by Institut Franciase du Cafe et du Cacao (IFCC) to ascertain the possibility of using small coffee orchards to encourage laborers to settle in the project area. Experimentationon both cotton and coffee would continue at the station, and an entomologistwould be added to the research team. The work to be carried out at the station would adequately serve the project needs.
Antevamena Station
3. Work at this station is conductedby the Institut de Recherche AgronomiqueMalgache (IRAM) and financed by the Government. Experiments deal mainly with tobacco, peanuts, cotton, forage crops, sunflower,wheat, soya beans, and safflower. Results obtained so far indicate that burley- type tobacco could be grown successfully in rotation with peanuts and forage crops. Experimentationwould continue but the area would have to be expanded. As there are no suitable soils in the vicinity to accommodate the type of research needed, a new 15-ha station would be establishedon red sandy soils at the tobacco farm. A deep well, with a capacity of 15 liters/sec,has already been drilled at the site and research work at the station would be set up as follows:
(a) Tobacco. Experimentswould be carried out, with technical assistance from IRAM and Office Malgache des Tabacs (OFMATA), on various irrigationmethods for burley and for black aircured tobacco varieties. The crops best adapted for one year rotationswith tobacco would be investigatedand experiments would be conducted to determine the techniques best suited ANNEX 1i1 Page 2
for protectingseedlings, particularly at the end of the wet season and after transplanting. Leaf harvestingwould be compared with plant harvesting, and studies would be made to determine the most suitable type of drying barn.
(b) Peanuts. The program would emphasize selection of varieties, fertilîzer application, and the use of pesticides.
(c) Cotton. The possibility of introducingcotton in rotation with tobaccowould be investigated, with particularattention directed at water requirementsand irrigationmethods.
(d) ForaRe Crops. Variousleguminosae and graminaewould be tried under irrigation,and methode of forage conservation and cattle fatteningvould be studied,with technicalassis- tance from Institutd'Elevage et de Medecine Veterinairedes Pays Tropicaux (IEMVT).
(e) Other Crops. Other crops, such as wheat, sunflower,and safflowerwould also be tested for best growing techniques.
May 24, 1972 MALAGASIREPUBLIC
MO.1ONDAVAIRRIGATION AND RURALDEVELOPMENT
PRODUCTIONWITHOUT AND WITH THE PROJECT
PRODUCTIONCOSTS Net Return Crop Area Yield Price Gross Value Inputs and Hired Total Net Value From Project (ha) (ton/ha) (FMG/ton) of Production Machinery Labor of Production Area ---- (FNG/ha)------(FMG mll1ron7 WITHOUTPROJECT
Riee (paddy 1,,00 1.2 14.000 16,800 6,000 - 6,000 10,800 16.2 Cotton (seed) 500 1.5 60,000 90,000 42,000 13,000 55,ooo 35,000 17.5 (50,000) (75,o00) (7,0O0) (49,0) (26,000) (13.0) TOTAL 2,000 33.7 (29.2)
WITH PROJECT
Traditional Rice Farms Rice (paddy) 7,600 4.0 14,000 56,000 11,500 - .1,500o 44,500 345.8 Cotton Farm Cotton (seed) 1,400 3.0 60,000 180,000 56,000 21,000 77,000 103,000 1.44.2 (50,000) (150,000) (11,000) (66,ooo) (84,000) (117.6) Forage 500 - - 7,500 6,oo0 1,500 7,500 - -
Sub-total 1,900 144.2 (117.6) Tobacco Farm
Tobacco (burley) 900 1.5 248,000 372,000 52,000 65,000 117,000 255,000 229.5 (32,000) (84,000)(288e000) (259.2) Peanuts 1,800 1.9 45,000 86,ooo 27,000 10,000 37,ooo 48,ooo 86.4 ( 5,000) (32,000) (53,000) (95.4) Forage 900 - - 5,000 3,000 2,000 5,000 - -
Sub-Total 3,600 315.9 (354.6) TOTAL 13,100 805,9 M ------~~~~~~~~~~~~~~~~~~~~~~(818.0) / Figures in parenthees indicate adjustaent made for the purpose of economic analysis (see Annex 14 for details). ANNEX12 Table 2
1LALAGASYREPUBLIC
MORONDA'VAIRRIGATION ANDRURAL DEV1WPLOT PROJECT Production Costs (FMG/ha)
'tem Rice Cotton-r
WithcuQ Project
Seeds 600 200 Herbi ;c - 3,000 Fertilizers - 4uOO Treshing 1,200 - Pest control 12o500 :arm 4fl5i'rh,1io l5,- 500 ..abor 12,000 13,200 echnica.l Assistance - 4,3 o
Z,i^117, 900 54,'7°° Item Rice Cotton Tobacco Peanut B ith Pro et
Seeds 600 200. 5,000 6,000 Herbicides 200 - - - esticid.es - - 7,000 - ê'ertnlizers 2,D00 9,100 17,800 6,300 Sacks 500 - 800 300 Weed corLtrol (by airplane) - 5, 9oc - -
Pest cortrol (by airplane) - 25,000 - - Treshing 4,000 - _ - ;armiMac4irer 2,400 15, 500 18,000 12,000 Powcr for rirk1^r rstc- - - 3,800 2,800 Labir 9 18,000 21,000 64,500 9,800
Total 28,500 /6,700 116,900 37,200
lj' .t current wage of FMG 150 per day ; for rice cultivatioon the cost aDppies «oI rnioy ebiraorà i28bu1ion.
?ebruary 28, 1972 ANNEX12 Table 3
MALAGASYREPUBLIC
MORONDAVAIRRGATION AND RURAL1DEVELPET PROJECT Project Labor Requnrmatu At FR1 Dovepmt (a-month)
Rice Area Cotton Farx Tobacco Fara Total (Double (Single cropped) cropped)
January 1,000 600 500 1,100 3,200
February 1,700 1,100 400 1,300 4,500
March 2, 90 1,500 300 1,200 5,900
April 3,200 1,1400 300 1,100 6,000
May 1,600 100 1,000 1,500 4,200
June 1,200 - 2,000 1,400 4,600
July 1,OOO 1,900 1,100 4,000
August 1,700 - 500 2,400 4,600
Septe aber 2,900 100 - 2,600 5,600
October 3,200 500 - 1,300 5,000
November 1,600 900 - 800 3,300
Deceeber 1,200 700 - 1,100 3,000
1/ Based on the following requiremnts in m-dayc per has rice, 120; cotton, 140;
tobacco, 430; peanuts, 65; forage after cotton, 20; and forage after peanuta, 11.
By couparison, present requirents are 80 and 90 ma-days per ha for rice and
cotton, reapectively.
ANNEX 13 Page 1
MALAGASY REPUBLIC
MORONDAVA IRRIGATIONAND RURAL DEVELOPMENTPROJECT
Marketing
Rice
1. Rice is Malagasy's main crop, accounting for 850,000 ha, or nearly 30% out of the total cultivatedarea of 2.8 million ha. Domestic productionhas been increasingsteadily in recent years, with a record crop of 1.7 million tons of rice recorded in 1970. High quality rice, which is produced mainly in the high plateau of the country, is being exported,while low quality rice (42% broken), which is preferredby the local population,is imported. In 1969, the latest year for which records are available, rice exports totalled about FMG 2.5 billion and imports FMG 1.5 billion.
2. Present production in the Morondava region is about 4,000 tons of rice per year. The region is self-sufficientin rice, and increased consumptiondue to population growth through the 1980's would be met from higher productivityin existing fields. The bulk of the project produce would, therefore,have to be marketed outside the region. The major outlet would be the province of Tulear where the present rice deficit exceeds 50,000 tons per year, met mostly through imports. By 1985, rice shortages in Tulear are expected to increase to around 60,000 tons per year. As rice to be produced on the project could be sold in Tulear at a price equal to or even lower than the projected 1985 import price, no difficultiesare anticipated in marketing all the project's rice production.
Cotton
3. The Malagasy cotton policy is based on an agreementbetween the CFDT, signed in 1967 and valid until 1976, which grants to the CFDT the monopoly of purchasing, ginning, and marketing the entire production throughout the country. Both farm-gateand ex-factory prices are fixed by the Government. The Caisse de Stabilisationdes Prix du Cotton - an entity grouping the Ministries of Finance and Agriculture,the Producers and the Exporters - acts as a regulator of the commercial policy.
4. Present production is about 17,000 tons of seed cotton, equivalent to some 6,300 tons of lint. Domestic consumptionis about 7,000 tons; it is met by 5,000 tons of domestic production and some 2,000 tons of imported cotton. About 1,000 tons of medium staple (1-3/32")lint are currently exported. The balance, about 300 tons, constitutesthe stock. ANNEX13 Page 2
5. The CFDT envisages to double the productionby 1975, when the domesticmarket is expected to absorb about 10,000 tons of textiles;some 1,000 tons - the qualities not produced in the country - would still be :Lmported.Therefore, the Malagasy exports are projectedat a level of about 3,000 tons by 1975. Even without extendingthe targets, it is in this contextwhere the project production,about 1,600 tons of lint, would fit.
erobacco
6. Productionof burley tobacco in Madagascarstarted in the early 1960'sand reached about 1,200 tons per year by 1970. Practically the entire production is being exported to France. Marketing is handled by t:he Societe Industrielle des Tabacs de Madagascar (SITAM), a private company consisting of the country's main producers, and the Office Malgache des Tabacs (OFMATA), a public authority under the supervision of the ministries of Finance and Agriculture. France and other EEC members would continue to be the main outlet for Malagasy's burley tobacco. Present burley imports by the EEC are about 30,000 tons per year and the demand is growing. Since Madagascar is exempted from EEC import duties on tobacco (these amount at present to FMG 78 per Kg, or about 25% of the CIF price), aLndthe country has establishedan efficientmarketing system, no difficultiesare expected in marketing the added production from the project.
'eanuts
7. Malagasy's peanut production has increasedfrom about 27,000 tons In 1961 to 40,000 tons in 1970. At the same time, exports declined from 12,000 tons in 1962 to 4,000 tons in 1970, largely as a result of the lo8s of the Algerian market, which, in the early 1960's, absorbed about half of Madagascar'sexports. Most exports at present are bought by France. The increase in peanut productionhas so far been readily absorbed by the local market in the form of vegetableoil.
8. Most of the peanuts Malagasy exports are unshelled, for which there is little demand on the world market compared to shelled peanuts. Consequently,all the project produce would be exported in the form of shelled peanuts. The quantitiesinvolved are relatively small and, consideringthe quality control measures to be introducedunder the project, there should be no difficultyin exportingall the project produce.
May 24, 1972 ANNEX14 Page 1
MALAGASYREPUBLIC
MORONDAVAIRRIGATION AND RURALDEVELOPMENT PROJECT
Economic Analysis
1. The project's estimated useful life is 40 years. When discounting the costs and benefits over this period, the economic rate of return would be about 16%. Assumptionsmade in carrying out the analysis are as follows:
(a) Prices. Farm-gate prices were derived from the 1980 workd market prices forecast,prepared by the Bank's Economic Department. The followingassumptions were made in converting them into farm-gateprices:
(i) Rice. The FOB Rangoon price per ton of standard quality (42% broken) rice is projected at US$82. When adding to it US$15 for freight and insurance,the CIF Malagasy port price is US$97 per ton (FMG 27,000) and, with inland transportand handling charges, the price at Morondava would be FMG 33,000 per ton; this would be equivalentto FMG 22,000 per ton of paddy (milling efficiency, 66%) and, after deducting milling and transport costs, the final farmgate price would be FMG 14,000 per ton of paddy.
(ii) Cotton. The projected CIF liverpoolprice of medium staple cotton (1-3/32")is t26 per pound, equivalent to FM 160,000 per ton of lint, which, after deduction of freight, insurance,loading and inland transport, comes to an ex-factoryMorondava price of FMG 148,000 per ton; with a net cost of FMG 4,800 per ton for ginning of seed cotton and a ginningyield of 37%, the farm-gateprice would be FMG 50,000 per ton of seed cotton.
(iii) Tobacco and Peanuts. The farm-gateprices were based on the FOB Malagasy average prices obtained during the period 1966-71,which amounted to US$1,150 (FMG 320,000) per ton for tobacco and US$287 (FMG 80,000) per ton for peanuts. After deducting processaingcosts, the farm-gate prices were FMG 248,000 per ton for tobacco and FMG 45,000 per ton for peanuts. All prices are expressed in terms of 1972 constant prices.
(b) Project Costs. The costs used in the analysis (FMG 3,610 million) and the timing of investmentsare based on data presented in Annex 8. The followingcosts were excluded from the evaluation: ANNEX14 Page 2
(M) settlementand health control (FMG 1,320 million), since these investmentswould have their own benefits which vere also excluded from the analysis;
(il) farm machinery and vehicles (FMG 150 million), which are included in the farm production costs and general annual expenses, respectively;
(iii) a share of the comn coste (FMG 270 million) charged to non-projectbeneficiaries (Bezezika orchard);
(iv) price contingencies(FMG 1,180 million);
(v) half the vages of unskilled labor engaged in the construction of project works (FMG 50 million); and
(c) Protect Production. The projected rice yields are expected to be reached in the fourth year after introductionof irrigation,and for other crops in the fifth year. Since physical implementationof the project would be completed in six years, full productionwould be achieved by year 11. In addition to the benefits generated in the project area, the project would also improve the water supply for about 900 ha of rice in the delta area where it has been estimated that yields would rise from the present level of 1.2 ton/ha (single cropping) to 3 ton/ha (double cropping); the corresponding incremental net value (FMG 42 million) is therefore included in project benefits. (d) ProJect Benefits. In estimating the benefits of the project, it has been assumed that annual increases of 3% (the overall growth rate expected for the agricultural sector), up to a maximum of 15%, would occur in the absence of the project. 2. The incremental net benefits and project cost streams used in t:he analysis are presented below: ANNEX 14 Page 3 Net Value of Production Year Costs Without Project Vith Proiect ------(FMG million)------1973 308 30 30 1974 566 31- 31 1975 565 32 36 1976 685 33 124 1977 897 34 271 1978 590 35 441 1979 95 35 662 1980 95 35 761 1981 95 35 819 1982 95 35 849 1983-2012 95 35 860 Rate of Return: 15.6% 3. To measure the project's sensitivityto deviations from the most probable assumptions,the following possibilitieswere tested: Rate of Return z (a) yields in ton/ha were reduced simultaneoualy to: rice, 3.5; cotton, 2.5; tobacco, 1.2; and peanuts, 1.6; 12.2 (b) construction costs increased by 20%; 13.6 (c) project constructionperiod extended to 8 years; and 14.3 (d) the time required for crops to reach the projectedyield level extended by 4 years. 12.1 MIay24, 1972 ``,\'-n, MALAGASYREPUBLIC MORONDAVAIRRIGATION AND RURAL DEVELOPMENT PROJECT _ LANDUSE AND IRRIGATIONNETWORK 040040 C UFt)/ antFoOF9mm%> <*_ > 09O-UFfiFPROJECTED 990 1,90R 1(0D l000,L0001O ) 1400 _ _ b,|19u _ _ 1t. lOooO,o1430-.5 _00 1A 5 03091 10,100 100 k.U'/ >%\->_ Tlob 9 30 0390 0400 1400 900 000 1400 400400430003001.040 - R- -d k, 100o % N ° v i ° ~ S O R1o,00< jii / 0.<\ 4Fd4AN AA/II55l0000N r ~ / ( / - CANAL \ lANANtlAV3 _ 2\ zAd);tj r _ t Ze L >2 * To444,|5, S N4sNIS + E4AK5_ _- AMV0090d3l544,5 4, Fr IWFTFSOo 1,d4 199D~I CO 000 \ ! 000554454 __~~~~~~~~~~,, Osoono A7R1L~~~~~~~~~Z 5,,,