UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON, D.C. 20523 PROJECT PAPER THAILAND Northeast Rainfed Agricultural Development (493-0308) September 1981 UNCLASSIFIED THAILAND NORTHEAST RAINFED AGRICULTURAL DEVELOPMENT PROJECT PAPER TABLE OF CONTENTS Title Page Abbreviations iii Project Design Credits vi Map of N.E. Thailand ix Project Authorization x Facesheet xiii Addendum to Project Paper xiv I. Summary and Recommendations 1 A. Recommendations 1 B. Summary Description 1 C. Issues 2 D. Findings 5 II. Project Background and Description 5 A. Background 5 B. Detailed Description 11 III. Project Analyses Summaries 39 A. Economic Analysis 39 B. Social Soundness Analysis 43 C. Technical Analysis 45 D. Financial Plan and Arrangements 67 IV. Implementation Plan and Arrangements 75 A. Administrative Arrangements 75 B. Implementation Plan 83 C. Evaluation Plan and Monitoring Arrangements 90 D. Negotiation Status, Conditions Precedent, Covenants 93 Annexes I PID Approval Cable II Analytical Methodology III Logical Framework IV Description of Project Areas Title V Technical Feasibility Analyses for Agricultural Technology (See Supplemental Analyses for analyses listed below) VI Economic Analysis (Contained in Supple­ mental Analyses) VII Social Soundness Analysis (Contained in Supplemental Analyses) VIII Administrative Analysis (Contained in Supplemental Analyses) IX Detailed Financial Data X Statutory Checklist XI Borrower Grantee Application for Assistance (Reserved) The Annex V Supplemental Analyses contains the following sections: A. Extension Support B. Social Support C. Cropping Systems D. Other Farming Systems E. Soi and Land F. Water Resources G. Demonstrations and Research H. Resources Inventory I. Economic Studies (Marketing, Credit) J. Engineering Feasibility Abbreviations, Terms and Equivalents AIT - Asian Institute of Technology AID - Agency for International Development ALRO = Office of Land Reform for Agriculture ARD = Office of Accelerated Rural Development "Aw" = Tropical Sawana Climate BAAC = Bank for Agriculture and Agricultural Cooperatives CDD = Community Development Department CD Community Development (Worker) CDSS = Country Development Strategy Statement CoF = Contact Farmer (Farmers' representatives who have been selected in each village and on whom the extension agents will concentrate their effort in transferring practical agro-technology.) CDP = Changwat Development Program CP = Conditions Precedent DCP = Department of Cooperatives Promotion DLD = Department of Land Development DOA Department of Agriculture DOAE = Department of Agricultural Extension DOF = Department of Fisheries DOLD = Department of Livestock Development DTEC = Department of Technical and Economic Cooperation DAE = Division of Agricultural Economics (Now OAE) DEO = Amphoe or District Extension Office EEC = European Economic Community EC = Electrical Conductivity FAO = Food and Agriculture Organization of the United Nations FY = Fiscal Year FX = Foreign Exchange Cost -iV- HH = Household IBRD = International Bank for Reconstruction and Development IRR = Internal Rate of Return KKU = Khon Kaen University LSD = Land Settlements Division LC = Local Cost MOAC Ministry of Agriculture and Cooperatives MOF = Marketing Organization for Farmers MT = Metric Ton NE Northeast NERAD = Northeast Rainfed Agricultural Development Project NEROA = Northeast Regional Office of Agriculture NESDB = National Economic and Social Development Board NIDA = National Institute of Development Administration NVD = New Village Development Program OAE = Office of Agricultural Economics PWD = Public Welfare Department PD = Projects Division PID = Project Identification Document POL = Petroleum, Oil and Lubricants RID = Royal Irrigation Department RFD = Royal Forest Department ROA = Regional Office of Agriculture RTG = Royal Thai Government REGP = Rural Employment Generation Program RD = Rice Division SMS = Subject Matter Specialists SpF = Specialist Farmer TEA = Tambon Extension Agent UK University of Kentucky UNDP = United Nations Development Program USAID = United States Agency for International Development Terms Changwat = Province Amphoe = District Tambon = Sub-District (the level above village and below Amphoe) Muban = Village Currency Equivalents U.S.$ 1 = Baht ($) 20 Baht ($) 1 = U.S.$ 0.05 Area Equivalents (1,600 m ) 1 rai = 0.16 hectares I hectare = 6.25 rai vi Project Design Credits I. Design Team Dr. Herb Massey, UK Dr. Terd Charoenwatana, KKU Dr. Aran Patanothai, KKU Dr. Viriya Limpinuntana, KKU Dr. Vein Finkner, UK Mr. Damrong Thandee, Ramkhamhaeng University Dr. Bill Schneider, UK Mr. Chakrit Manotham, DLD Dr. Lloyd Murdock, UK Dr. Eldon Smith, UK Dr. Chakrit Noranitlphadungkarn, NIDA Dr. Prawit Nilsuvannakul, NIDA II. NERAD Pro3ect Design Committee (MOAC): The following MOAC personnel participated in numerous project development activities and furnished support for the Project Design Team. 1. Mr. Somchai Dhummanoonragsa Director of NEROA 2. Dr. Utai Pisone Chief of Research Divi­ sion, NEROA 3. Mr. Thana Thongton Director of Projects Division 4. Dr. Plodprasop Suraswadee NIFI 5. Mr. Prateep Premayothin Division of Veterinary Biologies, DOLD 6. Mr. Komchark Pichaironarong- Division of Animal songkhram Husbandry, DOLD 7. Dr. Vises Prasort Division of Veterinary Research, DOLD 8. Mr. Praphad Neramitrmansuk Division of Veterinary Research, DOLD 9. Mr. Kitti Jatanilapan Northeast Regional Office of Livestock Develop­ ment, DOLD 10. Mr. Sawad Dulyapat Watershed Conservation Division, RFD 11. Mr. Thongchai Wetchasat Watershed Conservation Division, RFD 12. Mr. Chaleo Changprai Soil Survey Division, DLD 13. Dr. Wanee Samphantharak Land Policy & Planning, DLD 14. Mr. Aut Somrang Land Policy & Planning, DLD vii 15. Mr. Rungroj Puengpan Khon Kaen Land Develop­ ment Center, DLD 16. Mr. Anek Sutharoj Northeast Regional Office of Agricultural Extension, Khon Kaen, DOAE 17. Mr. Pramuan Setarat Rice Section, Crop Pro­ motion Division, DOAE 18. Mr. Prawat Supaprawat Agricultural Coopera­ tives Division, CPD 19. Mrs. Wannee Ratanawaraha Agricultural Coopera­ tives Division, CPD 20. Dr. Prasoot Sithisruang Rice Division, DOA 21. Dr. Vi3ai Nopharmornbodi Field Crop Division, DOA 22. Mr, Wichit Himmakorn Foreign Loan Section, ALRO 23. Mr. Porn Tanvanich Research & Planning Division, ALRO 24. Mr. Surathep Kowangoon Land Reform Management Division, ALRO 25. Dr. Supote Dechates Agricultural Economics Research Division, OAE III. The development and design of this project has been greatly facilitated by the consistent support offered by Mr. Kangwan Deva­ hastin, Deputy Undersecretary of State, Ministry of Agriculture & Cooperatives. IV. Publications Background publications developed in prepara­ tion for NERAD Project Design. - Northeast. Rainfed Agricultural Development Project: an Opportunity Framework, by University of Wisconsin Team and Staff Committee of the RTG (1979) - Survey Report on Rainfed Agricultural Projects in Northeast Thailand, 4 volumes) by NEROA, MOAC (1980) Volume I : The Main Report Volume 2 : Compilation of Research and Develop­ ment Project on Rainfed Agriculture in the Northeast Voiume 3 : Statistics; Data Related to Agricul­ ture in the Northeast Voiume 4 : Northeast Water Resource Development Projects - Northeas: Ra:nfed A ricultural Development Project Site Survey Report by MOAC Technical Specialists, vii-, NEROA, MOAC (1981) Village Level Study of Northeast Rainfed Agricultural Development Project, by Damrong Thandee, Department of Sociology & Anthropology, Faculty of Humanities, Ramkhamhaeng University (1981) 0 1004 101 1020 IA3* 1040 050 10IOW I r r " i )I U'NO, A - - Ii]-' SION NAIKHON 'I %-­ ' ,,.I -- "" H"-W.. ' - ' .I,. .) KHaN KA.0 KALASIN CHAI "-.APHUM-"@. , , "S. -VA . - ­ ' ' " ' I.7 "// ",+ L' l"" '.UONRAT4HATANI - N" .RA.ChIMA ' Sts ,--. c . ,'u / •sSISAI,_ T1.__ - "/ 81 RIRUM! 0 SUAINI. " .'i I . CAM ODIA Sub District District Province No (Tombon) (Ampre) (Chongwot) I Lahon Cheftura Choiyophum CONVENTIONAL SYMBOLS 2 Kwong Chon Phu Khleo Chaiyophum Tombon 3 Nong Khaew Muong Roi Et * Chongwot 4 No Muang Solophum Roi El e .e ntenolion boundary 5 No Thom Bon Phoong Nakhon Phonom Region boundary 6 No Nguo No We Nokhon Phonom Chongwat boundary 7 Too Utumphonphisol SI Saket 8 Taker UumpNplnsaoi SI Soket Figure I. Location of Project sites in the North East Thailand UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION AGENCY AGENCY FOR INTERNATIONAL DEVELOPMENT WASHINGTON DC 2O23 PROJECT AUTHORIZATION THAILAND Northeast Rainfed Agricultural Development Project No. 493-0308 Pursuant to Section 103 of the Foreign Assistance Act of 1961, as amended (the "FAA"), I hereby authorize the Northeast Rainfed Agricultural Development Project (the "Project") for Thailand (the "Cooperating Country"), involving planned obligations of not to exceed Six Million Three Hundred Thousand United States Dollars ($6,300,000) in loan funds (the "Loan") and Three Million Seven Hundred Thousand United States Dollars ($3,700,000) in grant funds (the "Grant") over a five-year period from date of authorization, subject to the availability of funds in accordance with the A.I.D. OYB/ allotment process, to help in financing foreign exchange and local currency costs for the Project. The Project will establish in representative tambons of Northeast Thailand a replicable agricultural development program for increasing farm pro­ ductivity and farm income, particularly among lower income farmers in the rainfed agricultural zones.