Document of The World Bank FOR OFFICIAL USE ONLYF Report No. 4 2 6 9 -MAU STAFF APPRAISAL REPORT ISLAMIC REPUBLIC OF MAURITANIA SMALL-SCALE IRRIGATION PROJECT March 4, 1985 Western Africa Projects Department Agriculture C This document has a restricted distribution and may be used by recipients only in the performance of their officiai duties. Its contents may not otherwise be disclosed without Worid Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document of
The World Bank
FOR OFFICIAL USE ONLYF
Report No. 4 2 6 9 -MAU
STAFF APPRAISAL REPORT
ISLAMIC REPUBLIC OF MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
March 4, 1985
Western Africa Projects DepartmentAgriculture C
This document has a restricted distribution and may be used by recipients only in the performance oftheir officiai duties. Its contents may not otherwise be disclosed without Worid Bank authorization.
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CURRENCY EQUIVALENTS
Currency Unit: Ouguiya (UM)US$ 1.00: UM 80.00l'm 1,000: US$ 12.50
WEIGHTS AND MEASURES
1 kilogram (kg) 2.20 pounds1 metric ton (t) 0.98 long tons1 hectare (ha) : 2.47 acres1 kilometer (km) : 0.62 mile1 millimeter (mm) 0.04 inches1 ton/hectare (t/ha) : 890 pounds/acre
ABBREVIATIONS
CSA Commissariat à la Securité Alimentaire (Food Aid Commission)CCCE Caisse Centrale de Coopération Economique (French aid loan
agencc y)CCL Critical Consumption LevelFAC Fonds d'Aide et de Coopération (French aid grant agency)FAO/CP Food and Agriculture Organization/Bank Cooperative ProgramFED Fonds Européen de Développement (EEC aid grant agency)IFAD International Fund for Agricultural DevelopmentKfW Kreditanstalt fUr Wiederaufbau (German aid loan agency)MDR Ministre du Developpement Rural (Ministry of Rural Development)OMVS Organisation pour la Mise en Valeur du Fleuve Sénegal
(Senegal Valley Development Authority)PPV Petit Périmètre Villageois (Small Irrigated Perimeter)SONADER Société Nationale pour le Développement Rural (National
Rural Development Authority)SONIMEX Société Nationale d'Import-Export (State trading company)
FISCAL YEAR
January 1 to December 31
FOR OFFICIAL USE ONLY
ISLAMIC REPUBLIC OF MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
TABLE OF CONTENTS
Page
DOCUMENTS CONTAINED IN PROJECT FILE ............................. iii
CREDIT AND PROJECT SUMMARY ..................... iv-v
I. BACKGROUND ................................................. 1
A. Project Background ..................................... 1B. The Rural Sector ....................................... 1C. Sector Strategy and Issues ............................. 2
II. SMALL-SCALE IRRIGATION .. 4
A. Village Perimeters ..................................... 4B. Past Developments and Present Situation ................ 5C. SONADER ................................................ 6
III. THE PROJECT AREA ........................................... 10
A. Physical Features ...................................... 10B. Socio-Economic Features ................................ ilC. Institutions, Infrastructure and Services .............. 12D. Land Use and Farm Income ............................... 13
IV. THE PROJECT................................................ 13
A. Objectives and Summary Description ..................... 13B. Detailed Features ...................................... 15C. Preparation of Final Designs ........................... 18D. Execution of Project Works ............................. 18E. Agricultural Development ............................... 19F. Operation and Maintenance of Pumping Sets .............. 20G. Organization and Management ............................ 21H. Cost Estimates ......................................... 21I. Financing .............................................. 22J. Procurement ............................................ 23K. Disbursement ........................................... 24L. Monitoring and Evaluation .............................. 25M. Accounts and Audit ..................................... 26
This report is based on the findings of an appraisal mission toMauritania in April/May 1982. Mission members included Carlos G. Moret(Leader), Thomas Bredero, Jean-Claude Fayd'Herbe and David Steeds (Bank)and Charles Tribèche (Consultant). Figures were checked by Jann Masterson.The report was typed by H.G. Tran and edited by Michèle Moriarty.
This document has a restricted distribution and may be used by recipients only in the performanceof their officiai duties. Its contents may not otherwise be disclosed without World Bank authorization.
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Page
V. MARKETS, PRICES AND FINANCIAL ANALYSIS ..................... 26
A. Markets ................................................ 26B. Prices ................................................. 27C. Financial Implications for Beneficiaries and Cost
Recovery ............................................ 28D. Financial Implications for the Public Sector ........... 30
VI. BENEFITS AND JUSTIFICATION .31
A. Project Benefits .31B. Economic Analysis .32C. Risks.33
VII. ASSURANCES AND RECO COENDATION .. 34
ANNEXES
2-1 Data for the 1980/81 Season2-2 SONADER Organization Chart2-3 SONADER: Summary Financial Statement
3-1 Key Climatic Data3-2 Irrigation and Pumping Requirements: Rainy Season3-3 Irrigation and Pumping Requirements: Dry Season
4-1 Proposed Perimeters: Gourave Sector4-2 Proposed Perimeters: Kaedi Sector4-3 Vehicles and Equipment4-4 Earthworks: Preliminary Quantities Estimate - Gouraye Sector4-5 Earthworks: Preliminary Quantities Estimate - Kaedi Sector4-6 Agricultural Inputs, Outputs and Pumping Requirements4-7 Staff Requirements4-8 Irrigation Development: Detailed Cost Estimates4-9 Farming Inputs: Detailed Cost Estimates4-10 Supporting Services: Detailed Cost Estimates4-11 Projected Schedule of Expenditures4-12 Projected Schedule of Disbursements of IDA Credit
5-1 Farm Budget Financial Data: By Crop5-2 Farm Budget Financial Data: By Cropping Pattern5-3 Farm Family Budgets5-4 Rent and Cost Recovery Data and Indices
6 Summary of Economic Results
MAP
IBRD No. 16569: Location of Perimeters.
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ISLAMIC REPUBLIC OF MiAURITANIA
SMALL-SCALE IRRIGATION PROJECT
Documents Contained in the Project File
A. Selected Reports and Studies on the Sector Code
Ministère de l'Economie et des Finances: AIQuatrième Plan de Développement Economique et Social1981-1985, Partie III, Chapitre VII, DéveloppementRural (72 pages).
Situation Alimentaire 1981/82, Rapport multi-donateurs, A2décembre 1981.
B. Selected Reports and Studies Related to the Project
Projet de Périmètres Irrigués Villageois, Rapport de B1Préparation, FAO/Bank Cooperative Program,Report No. 41/81 MAU.5 of December 3, 1983.
Rapport d'Activité de la Direction de la Mise en Valeur B2et de la Production 1980-1981, SONADER, janvier 1982.
Réponse à l'aide-mémoire de la mission de préparation, B3SONADER, mars 1982.
Règlement Intérieur du Croupement Coopératif. B4
C. Working Papers
Etude du système de pompage. Ci
Project Costs: Detailed Tables. C2
Farm Budgets and Incomes, and Project Economics. C3
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ISLAMIC REPUBLIC OF MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
CREDIT AND PROJECT SUMMARY
Borrower: Islamic Republic of Mauritania
Beneficiary: SONADER, the National Rural Development Agency
Amount: SDR 7.7 million (US$7.5 million equivalent)
Terms: Standard
On-Lending Proceeds of the credit would be passed on toTerms: SONADER as a government grant.
Project The project would provide for the construction and initialDescription: operation of 75 small irrigation perimeters of 20-25 ha,
totalling 1,600 ha, in the upstreamn zone of the Mauritanianbank of the Senegal River. It would provide: (a) pumpingsets; (b) farming inputs; (c) services of eight Mauritanianprofessionals to provide agricultural extension, and pumpmaintenance and repair service; (d) housing and workingfacilities for these professionals; (e) service of twoexpatriate technical assistants to assist SONADER insupervising construction of the perimeters; and (f) vehiclesand topographic/office equipment to strengthen SONADER'sregional offices responsible for these perimeters. Aspecial account would be established under the project toexpedite disbursement.
Benefits Annual incremental production of edible grain at fulland Risks: development would be about 10,000 tons, double the country's
present level of irrigated grain input. The project wouldsignificantly increase the income of 2,900 farm families.The measures designed to increase rent and cost recoverywould eventually permit all existing and future perimetersto be financially independent. The risks are small:peasants are highly motivated and have proven their capacityto construct and manage their perimeters under the effectivesupervision of SONADER. Moreover, since each perimeterwould be an independent unit, problems that might develop inone perimeter would not affect the project as a whole.
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Estimated Costs: a/ Local Foreign Total…------ US$ million -----------
Chart: SONADER ORGANIZATION CHART, World Bank 24028
a/ Net of taxes which would be waived.
b/ Includes US$0.4 million of IFAD's contribution to SONADER'srehabilitation plan.
ISLAMIC REPUBLIC OF MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
I. BACKGROUND
A. Introduction
1.01 In mid-1980, two studies on the irrigation potential of theMauritanian, or right, bank of the Senegal River became available. One ofthe studies was a long-term regional plan and the other was a moreoperational feasibility study of the scope for expanding the small scaleirrigation operations being carried out, partly with IDA support, by theSociété Nationale pour le Développement Rural (SONADER). Following reviewof these studies by Government and IDA, an FAO/CP mission visitedMauritania in January 1981 and identified a small-scale irrigation projectcovering 2,000 ha. A follow-up FAO/CP preparation mission visited thecountry in July 1981 and the report became available in December. Thereport proposed a project consisting of 1,500 ha of small-scale irrigationworks and 500 ha of medium-scale perimeters and included a list ofquestions to which Government was to replv as a condition for appraisal.Satisfactory responses were received in March 1982, and the project wasappraised in May. The project now proposed foeusses exclusively onsmall-scale irrigation and would, together with similar projects beingfinanced by CCCE/FAC, the Dutch Government and FED, exhaust the 5,000 hapotential for small-scale irrigation in the near future. The proposedproject would be the Bank Group's second free-standing irrigation projectin Mauritania and the seventh operation dealing with the irrigationsubsector. Although with one exception these operations have been verysmall, they signify a deepening partnership between Mauritania and the BankGroup that would be further fostered by the proposed project.
B. The Rural Sector
1.02 Mauritania has a population of about 1.6 million of which aboutone-third are urban dwellers, perhaps one-half nomadic herders, and theremaining one-sixth sedentary farmers. The country covers 1.2 millionsquare kilometers, of which about 75% is desert; 20% is suitable only forextensive pastoralism. Sedentary farming can be sustained only along theSenegal River and in the extreme south-east, but even there rainfall doesnot exceed 600 mm/year. Apart from this sedentary farming area, the onlycenters of concentrated population and domestic markets for agriculturalproducts are Nouakchott, the capital city, of about 400,000 inhabitants,located 250 km north of the mouth of the Senegal river; Nouadibhou port, afurther 400 km north; and the mining center of Zouerate, 800 km north-eastof the capital.
1.03 The rural sector contributes only 25% to GDP even though itengages two-thirds of the population. In contrast to an estimated GNP percapita of US$465 in 1982, rural sector value added per capita is onlyUS$170. These numbers reflect the dualism of the economy as well as theacute poverty of the natural resource endowment of the rural areas. Withinthe rural sector, livestock accounts for 80% of value added and crops for
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only 10%, again reflecting the resource endowment. Other than oceanfishing, the sector makes no contribution to recorded exports, whilefoodstuffs account for 30% of recorded merchandise imports, of whichcereals make up 45% (120,000 tons), sugar 25% and tea 15%.
1.04 Irrigation did not start until the 1960s and by the end of 1982about 4,000 ha had been equipped, half of which were small perimeters ofabout 20 ha each and half in the two large projects of Mpourie (1,400 ha)and Kaedi (700 ha). Of the small perimeters, about 1,700 ha have beensponsored by Government, with external assistance from FED, FAC, IDA andthe Netherlands, and the remaining few hundred hectares are either entirelyprivate or sponsored by non-governmental organizations. The record hasbeen mixed, but small perimeters have clearly performed far better thanlarge. During the Fourth Development Plan period (1981-1985), a further10,000 ha were to be irrigated: 3,300 ha in small perimeters and theremaining 6,700 ha larger projects. The largest of those, the Gorgol Noir,cofinanced by nine external sources,has been scaled down from an initiallyprojected area of 3,600 ha to about 2,000 ha due to major cost overruns.Progress on the Boghé project (1,000 ha); financed by KfW, F.R. Germany'sdevelopment agency, is also slower than anticipated. Thus, with thelarge-scale targets revised downwards, it seems more realistic to estimatethat, by 1990, the additional irrigated area will be about 6,500 ha, a goalthat already presents a formidable challenge to the implementation andmanagement capacity of Mauritanian institutions. Large-scale irrigationmay eventually be possible from the two major dams on the Senegal river(Manantali and Diama) that are being constructed by the Senegal RiverDevelopment Office (OMVS), a trinational (Mali, Mauritania and Senegal)entity supported by several bilateral and multilateral agencies. Althoughthe eventual irrigation potential in Mauritania from the reservoirs may beas much as 100,000 ha, there are present major technical, institutional,economic, financial and sociological problems with many unansweredquestions, which require a prudent approach to further expansion oflarge-scale schemes.
1.05 While OMVS is in charge of planning and supervising theregulation of the river and associated power and transport investments,the development of irrigated perimeters remains in the hands of theindividual member states. In Mauritania, the Ministry of Rural Development(MDR) is in charge of water resources development. Under the Ministry, theNational Rural Development Authority (SONADER) is responsible for carryingout rural development projects, particularly irrigation projects. SONADERis a public institution with some administrative and financial autonomyvis-a-vis Government departments. Its board of directors is chaired by theSecretary General of the Ministry of Rural Development. SONADER is furtherdiscussed in (paras. 2.06 - 2.13).
C. Sector Strategy and Issues
1.06 Government's main objectives for the rural sector, as stated inthe 1981-1985 Plan, are threefold: to increase food production, both ofcereals and animal products; to protect and rehabilitate the environment;and to reverse the steep increase in urban migration of the 1970s. These
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objectives are reasonable, as is the proposed strategy of investing inprojects with the lowest possible recurrent costs and substantialbeneficiary participation. Government recognizes that little can be doneto increase rainfed crop production and that attempting over-ambitiousirrigation projects would lead to serious technical and financial problems.With its tight fiscal situation and debt service problems, Government isprudently evaluating the agricultural investment program within theframework of its economic recovery plan now under preparation with theassistance of the IMF and IDA.
1.07 The Bank Group has participated in six operations in the ruralsector: US$4.2 million for livestock development in FY72; US$2.5 millionfor the Drought Relief Fund Project in FY73; US$1.1 million for the GorgolEngineering Project in FY74; US$3.5 million for the Technical AssistanceProject to SONADER in FY77; US$8.0 million for an Urban and RuralDevelopment Fund which included small irrigation perimeters in FY79; SDR11.4 million for the Gorgol Irrigation Project in FY81. A Second RuralSector Technical Assistance Project for SDR 7.4 million was approved inOctober 1983. Preparation of a second livestock project is well underway.Bank involvement has foeussed on the two key subsectors of irrigation andlivestock, and on technical assistance in accordance with thecross-sectoral strategy of helping to improve national economic managementand the country's absorptive capacity. Future lending strategies will beadjusted according to lessons learned from on-going projects. In theagricultural subsector particularly, the Bank maintains a constructivedialogue with Government aiming at: (a) setting up practical arrangementsto reduce the risk of deficient maintenance in irrigation projects; (b)making the best use of the potential for flood recession cropping, sincethe element of uncertainty of the erratic Senegal River flow will bepractically eliminated by the Manantali regulating dam; and (c)establishing realistic producer prices to encourage domestic production.
1.08 Project Performance Audit Reports have been issued for the firstfour operations listed at para. 1.07. Common problems have included: (a)slow implementation due to administrative inefficiencies within Government,although there was a notable improvement in SONADER under the TechnicalAssistance Project; (b) cost overruns partly due to slow implementation andexacerbated by the exceptional political situation that prevailed up to1979; (c) acute shortages of trained local staff at all levels; and (d)difficulties in obtaining Government counterpart funding. Despite theseproblems, the four projects have achieved an acceptable degree of success.These problems have again arisen during the execution of the Gorgolproject, the first large irrigation scheme to be developed in Mauritania.In this case, however, the main causes were probably related to theproject's design, which proved inadequate for the conditions of thecountry, especially regarding operation and maintenance requirements duringthe production phase. To overcome these problems, the project wasreformulated by focussing on its settlement component and, at the sametime, by simplifying design. The revised design involves projectbenefeciaries in the construction of on-farm works and introduces manualfarming practices instead of the heavy mechanization initially foreseen.With these changes, a first farming season with first-time farmers, was
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completed in December 1984, with a yield of about 4 t/ha of paddy over a60-ha area. These results, albeit modest, are encouraging. By the end of1985, about 1,000 ha are expected under cultivation.
1.09 There are three main issues in the rural sector:(a) institutions are weak due to the acute shortage of trained personnel.This means that projects should be of an appropriate scale, and keptsimple. Government has not hesitated to obtain technical assistance fromseveral external sources, both to train staff and to fill line positions,and such technical assistance will be required for a long time to come.But precisely because the institutions are weak, Government has fewillusions about the capability of the public sector. More than in manyother countries, Government appreciates the limits to public sectorcompetence and hence has not set up a plethora of institutions that wouldbe difficult to dismantle, and seems determined to avoid the kinds ofmistakes that have been made elsewhere; (b) investment costs are very high,due mainly to the difficult physical conditions and the use of high-costmnanpower. This reinforces the point that projects should be kept simple;(c) policies on prices and subsidies are urban-biased thus reducingproduction incentives. There have, however, been several recentimprovements in pricing policy on food aid sales (para 5.03) and importedrice (para 5.04), so that upcountry producer prices are now at borderprices. The proposed project would, moreover, include specific measures toreduce subsidies (paras 5.06 and 5.11)
II. SMALL-SCALE IRRIGATION
A. Village Perimeters
2.01 The primary aim of small-scale irrigation is the creation ofperimeters built and managed by village communities. Small perimeterscomprise about 20 ha each, are located on the levees close to the river,and are irrigated by a diesel-driven pump set. The pump set is moved upand down the river bank depending on the height of the river, althoughfloating pumps are also used; pumped water discharges into a cementstilling basin and is then conveyed in earth canals. Field application ismostly in small basins, except in the Gouraye sector, where farmers in someperimeters are already practising ridge and furrow irrigation. Until now,small perimeters have been constructed exclusively by manual labor providedby the beneficiary village. This "sweat equity" participation of about4,500 man-days per perimeter is now an acknowledged precondition forperimeter construction. Organization of the labor for construction andsubsequent maintenance is the responsibility of the existing villagecooperative groups. Similarly, land allocation, irrigation scheduling, andall charges are managed by the cooperative groups. SONADER's role duringthe investment phase is limited to perimeter layout, supervision ofconstruction, execution of cement works, and installation of the pump setand accessories. During operations, SONADER's role is to supply inputs,repair pumps, provide advice on cropping and water management, and collectthe aggregate payments due from coooperative groups. These reciprocal
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responsibilities are spelled out in a contract established between SONADERand each cooperative group prior to SONADER's intervention in anyperimeter.
B. Past Developments and Present Situation
2.02 Public sector involvement in irrigation started in the mid 1960swhen Government sponsored two small perimeters. A FED-financed program of20 perimeters started in 1972, and a further 10 perimeters were developedin 1976-1977under the IDA Drought Relief Fund Project. These works wereundertaken by the Ministry's Rural Engineering Department. Results weremixed, partly because there was no uniform set of terms and conditions offinancing at the farm level. The one common element, the provision of pumpsets free of charge provided that a sinking fund was set up, did notpromote good maintenance of pump sets or adequate payments into the sinkingfunds. Moreover, the Rural Engineering Department concentrated onengineering rather than on farming aspects, and the private sector did notrespond to the new opportunities in input supply. Following its creationin 1975, SONADER implemented a FAC-financed program of 10 perimetersbeginning in 1977 and, in early 1979, it was entrusted with theresponsibility of maintaining all existing perimeters, and of developingall new perimeters, including the 30 perimeter program of the Urban andRural Development Fund Project financed by IDA. This program, originallyscheduled over three years, was in fact completed in two years. Followingthe spirit of the Credit Agreement, SONADER abandoned the sinking fundapproach to pump replacement and introduced instead provision of pump sets,with ownership transferred to cooperative groups, on credit repayable overfour years at 8.5% on 50% of the initial cost. Payments previously madeinto sinking funds were credited to the medium-term credit accounts. Thischange, together with uniform terms and conditions of financing of cropinputs, pump inputs and spare parts, removed all the previous ambiguities,and pump maintenance improved once the Groups became responsible forettheir" pump sets. The few perimeters sponsored by non-governmentalorganizations as well as the Dutch Government program, which is beingimplemented by a special unit within SONADER, have all adopted theSONADER's set of terms and conditions for financing at the farm level.
2.03 By the end of the 1981 dry season, the total area in smallperimeters was 1,700 ha, of which 550 ha are in the Rosso sector, 400 inBoghe, 370 ha in Kaedi and 380 ha in Gouraye. There were a total of about100 perimeters and in the latter two sectors - the area of the proposedproject - there were 19 and 23 perimeters, respectively, ranging from 13 to25 ha. The smaller perimeters, which have to bear similar pump and othercosts, could not be increased to 20 ha because the topography required theexecution of earthworks beyond the capability of manual labor, and theprojects had not been provided with earthmoving capability. The proposedproject would finance the execution of earthworks by contractors on thosesites that cannot be fully developed by manual labor so that the 20 haperimeter size can be attained in all new perimeters.
2.04 During 1981, the cropping intensity was 123% in the Kaedi sectorand 175% in the Gouraye sector. Average paddy yields were 6 tons/ha in
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Kaedi and 5.7 tons/ha in Gouraye; average maize yields were 3.6 tons/ha inKaedi and 6.4 tons/ha in Gouraye; and average yield of sorghum in Gourayewas 2 tons/ha. In the Kaedi sector, nine of the 19 perimeters date frombefore 1979, and their performance was below average. In the Gourayesector, only two of the 23 perimeters predate 1979 and their performancewas also below average. Most of the older perimeters are in the downstreamBoghe and Rosso sectors and there, too, performance was poor and the sectoraverages were lower than in the upstream sectors. On some of the olderperimeters, there is still some reluctance to abide by SONADER's uniformterms and conditions of financing and, in the struggle to obtainconcessions, some villages opt not to farm, or to farm without fertilizers.Overall performance as a function of perimeter age and origin shows up mostclearly in credit repayments: in 1981, the overall repayment rate was 68%,but it was only 55% on the old perimeters constructed by the RuralEngineering Department, and 69% in perimeters constructed by SONADER in1977 and 1978. The repayment rate rose to 94%, however, in SONADERperimeters constructed in 1979 and 1980. Although the older perimeterspose a continuing problem for SONADER, performance in the more recentperimeters, as regards rapidity of construction, productivity, and creditrepayments, augurs well for performance in new perimeters. In the last twoyears, however, the difficult situation of SONADER has had an adverseeffect on the performance of small-scale perimeters. Thus, compared to1981, cultivated area and output decreased by 7% and 25%, respectively, in1983, and by 20% and 48%, respectively, in 1984. Annex 2-1 summarizes theresults of the 1980/81 campaign.
2.05 In selecting sites for small perimeters, two main criteria mustbe met: (a) sites should be within 5 km of an existing village where atleast 100 adult workers are interested in irrigated farming; (b) sitesshould be within 1 km of the river and have physical characteristics thatpermit the development of a 20 ha perimeter without any major earthworks.The potential for these small perimeters on the Mauritanian bank of theSenegal River is about 5,000 ha. With the existing 1,700 ha, the ongoingDutch project in the Rosso sector, the new FED project in the Kaedi sector(400 ha), the proposed project (1,600), and the proposed CCCE/FAC projectin the Boghe sector (1,200 ha), the potential for small perimeters thatmeet the two above criteria would be exhausted by 1990. In the meantime,more experience will have been acquired with three large perimeters alongthe valley, namely, the existing mechanized scheme at Mpourie in the Rossosector (1,400 ha), the Gorgol Pilot Project at Kaedi (700 ha) and the Bogheproject that is under construction (1,000 ha). The latter two projectsinclude an attempt to capture some of the advantages of small perimeters ina large-project context, by means of water associations organized by 20 haunits entrusted with responsibility for all farming operations. Furtherirrigation investments in the valley will be designed in the light of theseexperiences.
C. SONADER
2.06 On the advice of several donors, the Government of Mauritaniacreated SONADER in 1975 to fill the institutional vacuum in the rural
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sector. SONADER was entrusted with excessive responsibilities, includingthe planning and design of rural development projects, execution of worksby force account, the operation and maintenance of projects, and theprovision of support services (farming equipment, extension, credit, inputdistribution, and marketing). Government and donors initially thought thatSONADER's lack of institutional know-how could be overcome by a series oftechnical assistance programs financed by different donors that were notalways well coordinated. In fact, SONADER's mandate proved over-ambitious.
2.07 Following donors' recommendations, Mauritanian authorities agreedto undertake an in-depth revision of the tasks and structure of SONADER. Adraft plan was agreed upon between SONADER and its donors in October 1983and finalized in April 1984. In the future, SONADER will be in charge ofsupervising project development, but will no longer be responsible fordirect project implementation. Maintenance of pumps, supply of inputs,agricultural credit and marketing activities will be transferred to theprivate sector or existing banks, which will deal directly with thecooperative groups concerned within each project. Government and SONADERhave committed themselves to completing these steps throughout 1985,'86and'87. It should be noted, however, that the transfer of these activitieswill be a difficult process requiring an appropriate degree of flexibility.
2.08 According to the revised plan, SONADER has endeavored to reduceits highly centralized structure, as shown by the compression ofheadquarters personnel expenditures, which in four years will be decreasedby 62 percent (from UM 78 million in 1982 to UM 36 million in 1984, andfurther to about UM 30 million in 1986). This compression is the result ofeliminating unnecessary positions and of allocating staff to headquartersand projects, which will henceforth have a high degree of autonomy.Headquarters staff has been reorganized into two departments: a TechnicalDepartment divided into three Divisions (Studies, Construction andAgricultural Development); and an Administration and Finance Department,with two Divisions (Administration and Finance). A Management ControlUnit, headed by a specialist in the management of agricultural developmententities will complete the SONADER structure. This Unit was created underCredit 1414-MAU, although due to delayed effectiveness, the Unit is not yetoperational. The manager of this Unit will report directly to the DirectorGeneral, who will delegate full management responsibilities to him. TheDirector General will devote himself to the activities inherent to hisposition (relationship with Government, institutions and externalfinanciers). Annex 2-2 summarizes SONADER headquarters' structure.
2.09 The financial problems of SONADER (summary financial statementsof SONADER for the years 1980 and 1981 are shown in Annex 2-3) were anotherinevitable consequence of its over-ambitious mandate; budgeting provisionsfor current expenditures have been consistently lower than actual costs,thus resulting in a growing gap far exceeding the Government's financialcapability. Without any other income, SONADER incurred heavy debts(currently UM 108 million, equivalent to about two years of headquarters'budget), which nearly caused the institution to collapse. The Bank, IFADand other donors agree with Government that SONADER's rehabilitation iscrucial to Mauritania's irrigation development. Thus, through a continuous
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two-year dialogue, Government and donors, with the Bank taking the leadingrole, have agreed on a major overhaul of SONADER.
2.10 As an essential complement to the reduction of SONADER functions,Government has agreed, effective immediately, to eliminate the practice ofsupplying free inputs for the first irrigation season (para. 5.11), and thefertilizer subsidy not later than January 1, 1986(para. 5.06). In view ofprogress made by Government, and on the basis of a draft plan discussed inApril 1984, a final agreement between Government and donors was reached inNovember 1984, under which SONADER's financial requirements for the period1984-86 would be fully assured. These requirements are as follows:
Financial Requirements of SONADER and Expected Resources during 1984-86(UM million)
Requirements
Headquarters Budgets 1984-1985-1986 190Non-incremental costs of projects 89Debt to third parties a/ 108
387
Resources b/
Government 148SONADER 12IDA (US$2 million) 160IFAD (US$0.4 million) 32Abu Dhabi Fund 15Islamic Development Bank 10Netherlands 6France 4
387
a/ Verified by external auditors in the course of the annual auditingrequired by IDA and financial under Credit 1414-MAU.
b/ In addition to the resources shown here, the Federal Republic ofGermany has committed UM 20 million, directly allocated to solve thefinancial problems of the Boghe project.
The following table summarizes the financial plan for SONADERrehabilitation:
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Sources and Application of Funds for SONADER Rehabilitation(UM million)
Sources offunds Application of Funds
Hdqtr. Non-incr'tl Debt toBudgets Projects' Third1984-1986 Costs Parties Total
2.11 IDA's contribution (US$2 million equivalent) comes from theproceeds of credit 1414-MAU (US$7.4 equivalent) of which 80 percent (aboutUS$6 million equivalent) was originally intended to improve SONADERperformance. Due to the scaling down of SONADER, the revised technicalassistance program requires about US$2 million less than the initialestimate. These savings have been reallocated to support SONADER budgetsover the 1984-86 period. Credit 1414-MAU has been amended accordingly.
2.12 The IFAD contribution (US$0.4 million) would be added to itsshare in the financing of this proposed Small-Scale Irrigation Project; itwould be used to finance non-incremental fertilizer requirements, withinthe project or elsewhere, thus freeing up an equivalent amount ofGovernment funds. Goods would be procured under ICB procedures.
2.13 Government already contributed UM 38 million in 1984; itsoutstanding commitment (UM 110 million) will be made available to SONADERin four installments (two in 1985 for a total of UM 50 million and two in1986 for a total of UM 60 million). Assurances were obtained duringnegotiations that SONADER would establish a Rehabilitation Account whereGovernment will deposit its contribution. IDA funds will be disbursed paripassu with Government's. IFAD disbursements for non-incremental inputswill be subject to Government's having deposited into the RehabilitationAccount an equivalent aggregate amount.
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III. THE PROJECT AREA
A. Physical Features
3.01 The project area would include the Kaedi and Gouraye sectors ofthe Mauritanian bank of the Senegal River, stretching over 400 km by riveror 340 km by road (see map). Annual rainfall at the north- western(downstream) limit is about 400 mm, over 90 days, but increases to 600 mmover 120 days at the southeastern (upstream) limit. Annual rainfall andits seasonal distribution are subject to wide variation and thus complicatedecision-making for rainfed cropping and livestock herding. Temperatureand sunlight hours, which peak in May and October, are similar throughoutthe project area, but evapotranspiration is noticeably higher in thenorth-west (2,300 mm/year) than in the south-east (1,700 mm/year). Solarradiation values are very high, indicating high yield potentials,particularly for cereals. The somewhat lower radiation values observedduring the cool season are offset by optimal day and cool nighttemperatures, which favor high net photosynthesis rates for cold-tolerantsuch crops as maize and sorghum. By contrast, the dry scorching wind inthe hot dry season impedes pollinization of crops like rice and maize,resulting in high sterility and reduced grain yields. Key climatic dataare detailed at Annex 3-1.
3.02 The Senegal River is the only perennial water course in theproject area. The main tributary, the Gorgol Noir, flows only from June toOctober. The Senegal River begins to rise in June and crests in October,when it floods extensive bottomlands and old branches of the river. As theriver recedes, flood recession cropping is practiced, with higher and morereliable yields than under rainfed cropping. The floodable lands are moreextensive in the Kaedi sector than in Gouraye. The use of the water of theSenegal River by the three riparian countries - Mali, Senegal andMauritania - is regulated by the OMVS agreements and no problem ofinternational waters is posed. The two dams currently under constructionwill provide an irrigation potential of about 400,000 ha, far in excess oflikely irrigation water demand over the next 20 years.
3.03 Water requirements have been calculated from the data availablefor Kaedi meteorological station, which includes measured evaporation dataon Pan-A class tank at Kaedi. These data, multiplied by the "K" values(crop coefficients) obtained by direct observation at Gud from actual waterconsumption data, yielded the actual monthly evapotranspiration of eachcrop. These values, adjusted for the soil saturation requirements andeffective rainfall, resulted in the crops' net irrigation requirementswhich were in turn adjusted to take into account distribution and fieldefficiency which, according to observed practices in similar perimeters,have been estimated at 75% each. Annexes 3-2 and 3-3 give full details onthe above calculations.
3.04 The floodable lands contain heavy clayey soils that are alsowell-suited to rice. The levees are loamy clays, with clay content lessthan 40% and low permeability (2 cm/hour) well suited to rice and, with
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adequate water management, to most annual or perennial irrigated crops.The plateau soils are generally sandy. The existing small perimeters areconstructed on the levees and this practice would continue under theproject. The few soil fertility analyses carried out so far indicate thiatinitial organic matter contents (between one and two percent) are good andcould be sustained, even at high yield levels, by application of farmyardmanure. In spite of low phosphorous content, responses to phosphateapplication have been variable and inconsistent, probably due to highfree-iron content leading to a strong fixation of applied phosphates.Potassium levels are adequate. The cation exchange capacity is high andindicates high efficiencies of ammonium-based nitrogenous fertilizer.Risks of alkalinity are low given the economy in water application dictatedby the pumping costs. The vegetation is typical of the Sahelian woodedsavannah. The tree cover varies with topography, being most dense in thefloodable areas, thinning out on the slopes (but with acacias stillpredominating), and becoming sparser on the plateau with shrubs moreprevalent. Land clearing for irrigation, even in the floodable areas, isnot a major job .
B. Socio-Economic Features
3.05 The total population of the project area is about 80,000, ofwhich the town of Kaedi accounts for 30,000. The remaining ruralpopulation lives in 64 villages, with an average population of 800. TheKaedi sector includes 30,000 people in 37 villages and the Gouraye sector20,000 in 27 villages. In both sectors, migration is important: the 1977census, conducted in January, showed that the ratio of adult women to adultmen was 1.4:1 in Kaedi, and 1.5:1 in Gouraye, i.e., about 30% of the menwere not present in the early part of the dry season. Most of theseabsences were probably seasonal, but long-term migration is far fromnegligible, particularly in the Gouraye sector. Farm models have thereforebeen designed to reflect the observed family structures, and to measurenon-farm income (para 5.07). Average family size is 5.7 in Kaedi, (1.2 menand 1.8 women), and 8.0 in Gouraye (1.6 men and 2.4 women); in both cases,non-farm income represents 40% of total family income. The Toucouleurpeople are predominant in the Kaedi sector and the Soninke people in theGouraye sector. Both societies are hierarchically organized; although thisentails conflicts of interest, local procedures are firmly established toresolve them and villages are particularly cohesive, functional units.
3.06 Land tenure in the Senegal Valley is fairly complex. One keydistinction is made between floodable and non-floodable lands. Floodableland (oualo) is more productive, and risk-free in the sense that crops areplanted as the flood recedes. The area flooded does, however, varyconsiderably from year to year. These floodable lands are generallyappropriated by village notables whose individual holdings vary from a fewto tens of hectares. The larger holdings are exploited by share-cropping.The non-floodable lands (dieri or fond) are generally held under the socalled communal land tenure system whereby village chiefs are thecustodians in their areas of jurisdiction, and are empowered to grantusufructory rights to heads of families. Theoretically, any land could berepossessed by the community acting through the chief and the elders but in
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practice communal ownership is exercised only over vacant or virgin land.An individual or family, once granted a piece of land, enjoys effectivesecurity of tenure. Small irrigation perimeters, by virtue of theirtopographical requirements, are constructed on non-floodable,communally-held land. Although such sites could pose questions ofcompensation to current usufruct holders, such questions have not impededperimeter construction in the past; the villages have apparently foundappropriate solutions.
C. Institutions, Infrastructure and Services
3.07 The Kaedi sector is part of the Gorgol Province of which theadministrative capital is the town of Kaedi. The Gouraye sector is partof Guidimaka Province of which the capital is Selibaby, a town of 15,000located 50 km inland from the river. Provincial governors and districtsub-governors have a broad administrative mandate. The Agriculture andLivestock Departments of the Ministry of Rural Development have limitedstaff in the districts. The Agricultural Research Institute is based atKaedi where it undertakes most of its work, principally on rice, coarsegrains, fruit and vegetables. The National Agricultural Technicians Schoolis also located at Kaedi. SONADER has a well-equipped regional office atKaedi and a more rudimentary base at Gouraye, which would be strengthenedunder the project.
3.08 The road network on the Mauritanian side of the Senegal river isrudimentary. It consists of a poorly maintained laterite road to Kaedi andthen an earth track further upcountry. Earth tracks are the only link tothe east-west highway, 100 km or more to the north, but a tarred link willshortly be built between Aleg and Bogh (100 km downstream from Kaedi).There are no feeder roads other than earth tracks but they suffice in thedry season. In the wet season, river transport assumes greater importanceand, by 1990, all-year river transport will be practicable. Other thanSONADER's radio network, there are no telecommunication facilities in theproject area except in the provincial capital, where there are also bankingand postal facilities.
3.09 Kaedi is a lively market town as are Selibaby and, on the Senegalside, Bakel (across the river from Gouraye), and Matam. Privatetransporters operate throughout the area, by truck, barge, and camel,although none are based at Gouraye. The only public agencies are the FoodSecurity Commission (CSA), which started buying cereals in late 1981 whenit took over the Kaedi rice mill (capacity 5,000 tons/year) from SONADER,and the state trading company (SONIMEX), which wholesales rice. Livestockmarketing is managed through a traditional private system in whichlivestock owners sell stock either directly or through professionalcollection agents to large traders. Animals are moved on the hoof eitheracross the river or up to the east-west highway where they are trucked, asreturn loads, to Nouakchott.
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D. Land Use and Farm Income
3.10 Farming includes rainfed and flood recession cropping and, morerecently, irrigated farming. Rainfed grains and pulses are planted in Julyand harvested in October, while flood recession sorghum is planted inDecember and harvested in April. In general, a good rainfall year willresult in a high flood so that there is little complementarity between thetwo production seasons. In the Kaedi sector, where rainfall is less than400 mm/year and the topography is favorable to flood recession cropping,the typical farm family cultivates 1.25 ha under rainfed conditions (wetseason) and 1.9 ha during the flood recession period (dry season). In theGouraye sector, where rainfall reaches 600 mm/year, but the topography doesnot permit so much flooding, the typical farm family cultivates 2.2 ha inthe wet season and 1.3 ha in the dry season. Between the two sectors, cropincomes are nonetheless similar whether expressed per man-day (UM 200), perhectare (UM 7,000), or per capita (UM 3,500). Crop incomes per family areUM 20,000 in Kaedi and UM 26,000 in Gouraye.
3.11 By the end of 1981, 1,450 ha were equipped for irrigation in theproject area. The large scheme at Kaedi, also known as the Gorgol PilotProject, includes 700 ha on formerly floodable land now protected byextensive dikes. This perimeter is cultivated by people in the town ofKaedi. It experienced prolonged compensation disputes, and has twicesuffered from breaks in the dikes and flooding of standing crops. Theother 750 irrigable hectares in the project area are in small perimeters,equally divided between the Kaedi and Gouraye sectors. In most villages,demand far exceeds the 20 ha available per perimeter and individualholdings are generally of only 0.05 ha per adult worker. On holdings of0.15 ha at Kaedi and 0.20 ha at Gouraye, families are realizing annual netincomes of UM 10,000 and UM 18,000 respectively, or 50% and 70% ofnon-irrigated crop income, and returns per man-day of UM 250 and UM 320respectively. It is this success that has prompted the demand for moresmall perimeters whereby land holdings could be brought up to about 0.20 haper adult worker.
IV. THE PROJECT
A. Objectives and Summary Description
4.01 The proposed project would be the next step in the Bank'scontinuing program of support for irrigation in Mauritania. The projectwould be part of SONADER's ongoing program of development of small-scaleirrigation, to which the Bank has already contributed twice. The keyfeatures of small-scale irrigation are the participation of thebeneficiaries in the construction, operation and maintenance of theirperimeters, and low investment cost. The proposed project would containtwo innovations: all new perimeters would be of at least 20 ha, andchanges in current practices would ensure increased rent and cost recovery.The project would include:
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a) development of 75 small perimeters (20-25 ha)totalling 1,600 ha;
b) provision of 75 pumping sets for these perimetersplus 20 additional stand-by sets;
c) provision of farm inputs;
d) provision of vehicles, topographic and office equipment;
e) construction of housing and work facilities at Gouraye;
f) provision of technical assistance to SONADER forsupervision of construction of small perimeters (two experiencedirrigation engineers);
g) provision of technical assistance to projectbeneficiaries in the form of agricultural extension (twoMauritanian professionals), organization and management ofcooperatives (two Mauritanian professionals) and pump maintenanceand repair service (four Mauritanian mechanics); and
h) financing of operating costs related to the above activities.
Project works would be completed in three years and supporting services tofarmers would be provided for two years after construction; thus, fullproject development would take five years.
4.02 To ensure effective beneficiary participation, a cooperativegroup will be constituted for each small perimeter along the same lines asthe groups that are already operating effectively in the project area. Theformation of the group and the commitment of its members to contribute upto 4,500 man-days to perimeter construction will continue to beprerequisites for starting construction of each small perimeter.Specialized extension agents of SONADER will assist farmers in groupformation. The number of farmers admitted to a group will be determined bythe members themselves; the number of participants is in practice limitedby the minimum parcel allotted to each individual. Any adult worker over15 years of age is eligible. The rights and the responsibilities of eachparticipant regarding the operation and maintenance of the irrigationscheme are spelled out in the group's internal rules, adherence to which isa condition for joining the group. The governing body of a group is itsGeneral Assembly, which includes all the individual members. Theirrigation system is managed on a day-to-day basis by the group's SteeringCommittee, consisting of seven members appointed by the General Assembly.The group is assisted and monitored by SONADER's Extension Service, underwhose guidance the group finances and collectively carries out theexecution, operation and maintenance of on-farm development works andpumping equipment. Each member of the group farms individually the parcelhe cultivates under usufructory rights. Members are subject to the group'sdiscipline and collective commitments to (a) perform maintenance works atthe beginning of each agricultural season, (b) farm according to the
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cropping and water use calendar agreed upon by the group, and (c) paycharges for pump operation and for group purchase of inputs. Charges areassessed by the Steering Committee with the assistance of the extensionagents and approved by simple majority by the General Assembly. A copy ofthe standard internal rules of a cooperative group is in the project file(item B4). These arrangements have proven workable in the existing smallperimeters in the project area and are expected to continue to worksatisfactorily.
B. Detailed Features
1. Construction of Perimeters
4.03 The project would finance the construction of two types ofperimeters. Each perimeter would be an independent of 20 ha unit served bya pumping set. Type A perimeters would be constructed entirely by thebeneficiaries themselves, who would contribute 4,500 days of sweat equityper perimeter. SONADER's role would be to design the perimeter layout,supervise the construction, do the minor cement works at the stillingbasin, and install the pump set and accessories. These perimeters would bebuilt wherever the site conditions permit, but there are only about 25 suchsites in the project area that meet the two criteria at para 2.05. Type Bperimeters would be built on more difficult sites, where the terrainrequires earth-moving beyond the capability of the beneficiaries (4,500days per dry season). Such works would be undertaken by contractors, underthe supervision of SONADER, but perimeter construction would otherwise beidentical to Type A perimeters. After excluding those sites that do notmeet the two criteria at para 2.05, there are about 50 appropriate sitesfor Type B perimeters in the project area. Current practice suggests thatland use will vary between the Kaedi and Gouraye sectors, with highercropping intensities in Gouraye and much more paddy in Kaedi where soilsare generally heavier. Annexes 4-1 and 4-2 present a list of the 75perimeters grouped by sector (Gouraye, Kaedi) and type of works (A,B), withan indication of the area and number of beneficiaries of each perimeter.The main characteristics of each type of perimeter and expected land usemay be summarized as follows:
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Main Characteristics of the two Project Perimeters and Expected Land Use
Perimeter Gouraye Kaedi Total Project
Area Area Area
per per per
No. Area Users User No. Area Users User No. Area Users User
(ha) (no.) (ha) (ha) (no.) (ha) (ha) (no.) (ha)
A type 12 270 1,100 0.25 13 270 1,190 0.23 25 540 2,290 0.24
B type 25 520 2,540 0.20 25 510 2,340 0.22 50 1,030 4,880 0.21
4.04 Given the fluctuations in the f low of the river throughout theyear, the hydraulic conditions for the pumping sets are verv difficult,with variations up to 10 m in the water level and up to 60 m in thedistance from the river to the discharge basin. In the existingperimeters, one response to these conditions has been a mobile pumping set,which is moved by the users according to the fluctuation of the river so asto keep the set within its working capacity. However, due to theinadequacy of pumping sets presently used (the engines work under severeoverload during the low water season thus causing the pumps to performpoorly), breakdowns are frequent and repair costs are unreasonably high.For the Kaedi sector, the proposed solution is still based on mobilediesel-driven pumps, but with more carefully prescribed specifications.For the Gouraye sector, where the river banks are quite steep, the pumpingsets would be installed on floating platforms, a solution that is used withno special problems for small-scale irrigation across the river. To avoidthe problems so far encountered, the pumping sets would be selected so as
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to ensure a satisfactory combined yield of motor and pump under thephysical conditions prevailing in the area. Manometrie heads during thedry season would vary between 16.5 m and 13.5 m for the most upstream anddownstream perimeters; for the rainy season the range would be 5.5 m to 3.5m. The most efficient set to meet the wide range of project conditionswould consist of: (a) an engine with a working regime between 1,200 and1,600 rpm, the optimum at about 1,500 rpm at which the effective poweroutput would be about 17 kW (23 hp); and (b) a pump with optimum yield(270-300 m3/hr) at about 1,500 rpm while still maintaining an acceptableefficiency (over 75%) between 200 and 330 m3/hr. These characteristicswould meet the maximum irrigation demand which would occur in July (rice,14 ha; maize, 6 ha) at 5,900 m3/ha (14 hours/day at 270 m3/hr or 12hours/day at 315 m3/hr). A comprehensive and detailed analysis of thepumping aspects of the project (the most critical among the physicalcomponents of the project), is in the project file (item CI), including adraft (in French) of the technical specifications for the pumping sets.During negotiations, assurances were obtained that these technicalspecifications would be included in the bidding documents for theprocurement of the pumping sets.
3. Irrigation Works
4.05 After land-clearing by the beneficiaries, SONADER would preparedetailed topographic maps at 1:2,000 with contours at 25 cm. The layout ofthe hydraulic network would be quite simple, a pattern consisting of aconcrete stilling basin to receive the pump's discharge from which aconveyance canal heads off to feed, through a concrete distributing box,two primary canals serving the secondary canals which will in turn directlyflood the fields. The head section of the conveyance canal would be lined;it would be provided with a simple control structure with the doublepurpose of monitoring the working conditions of the pump and the volume ofwater delivered to meet the irrigation requirements. The rest of theirrigation network would be unlined, which is acceptable given thecharacteristics of the soils. Secondary canals would be 100 m apart; thetwo parcels adjacent to a section of a secondary would be irrigatedsimultaneously and would constitute an irrigation unit; each parcel wouldbe about 50 m x 50 m and would be formed by three 40 cm high dikes and thesecondary canal itself. Water distribution through the canals and on tothe fields would be regulated by PVC pipes, which have proven resistant,efficient and easy to operate and maintain. With these characteristics,the overall irrigation efficiency (conveyance and field operation) actuallyobtained in perimeters under exploitation varies between 50% and 60%.Design criteria used by SONADER are based on experience gained through theconstruction and operation of existing perimeters and are adequate.
4. Buildings
4.06 Existing facilities at Kaedi are satisfactory and no furtherinstallations are considered necessary. At Gouraye, however, presentfacilities are inadequate and the project would provide for housing,offices, workshop and warehouse; in addition, a gas station would beinstalled to service the vehicles of the sector. Given the simplicity of
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the buildings, the most efficient arrangement would be that the potentialcontractors be invited to include final designs in their offers.
5. Vehicles and Equipment
4.07 In addition to the pumping sets, the project would providevehicles for the staff and equipment for the workshops and operation andmaintenance teams. A detailed list is at Annex 4-3.
C. Preparation of Final Designs
4.08 With the sites of all perimeters identified and the designcriteria for pumping equipment and irrigation works defined, it is expectedthat all the 75 perimeters will be developed; the next step (currentlyunderway) is to prepare final designs for each perimeter. Through thesupport provided by several donors, including IDA, SONADER has thetechnical capability to complete those final designs. Preparation of finaldesigns has begun with Type A perimeters, which are to be executed in the1985/86 season. The Association has reviewed and approved final designscovering about 20% of the area to be developed under Type A perimeterswhich, given the simplicity and repetitive nature of the project works, isconsidered sufficient to submit the project to Board consideration. Type Bperimeters would be executed in 86/87 and in 87/88.Assurances were obtainedat negotiations that, begining in 1986, SONADER would present to IDA forapproval, an annual work program, containing, for each perimeter, finalengineering designs, cost estimates, and the participation agreement of thecooperative group as well as, for all Type B perimeters together, thetender documents for the mechanical earthworks to be carried out bycontract. Only perimeters approved by IDA would be eligible for financingunder the proposed credit.
D. Execution of Project Works
4.09 Works requiring mechanical equipment are limited to earth moving(compacted fill for canal construction and land leveling) for which thereare capable local contractors. The possibility of executing the works byforce account was examined and ruled out.
4.10 Preliminary estimates of the quantities involved in each of the50 Type B perimeters are at Annexes 4-4 and 4-5. Mechanical works could becompleted in one construction campaign (1986-87) of some 180 days. Otherworks, including land clearing, leveling and construction of irrigationnetworks would be carried out by the beneficiaries themselves under theparticipation agreement with SONADER, which would provide the materials andtools for the construction of minor works. While it is important, inorder to keep costs down, that all mechanical construction be undertaken inone dry season, it is virtually impossible for SONADER to manage the fullimplementation of 50 perimeters (about 1,000 ha) in one campaign. But thislack of synchronism is not a major problem since, given the nature of themechanical works, Type B perimeters, in which manual works are carried outone year after the mechanical works, would not require maintenance beyondthe capabilities of the beneficiaries. To assist and supervise the
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construction of the works, SONADER would set up two brigades, eachconsisting of a senior irrigation engineer as chief and three constructionsuperintendents. During negotiations, assurances were obtained thatSONADER would employ two consultant engineers with qualifications andexperience, and terms and conditions of employment, satisfactory to IDA.Previous experience indicates that a cooperative group of beneficiariesunder the supervision of a superintendent can build a perimeter in aboutsix weeks. Thus, during a working season of 36 weeks (October - May) asuperintendent could supervise the manual works of up to 6 perimeters. Thefollowing construction schedule is envisaged:
Construction Schedule for Type A/B Perimeters(in weeks)
Type A Type B Total
1985-86Manual works 25 - 25
1986-87Mechanical works - (50) (50)Manual works - 25 25
1987-88Manual works - 25 25
Total 25 50 75
E. Agricultural Development
1. Agronomic Aspects
4.11 Maize and rice would be the principal crops of the project. Inspite of the short history of small-scale irrigation schemes, thetechnology of crop production has been well established, with yields of 4to 6 t/ha for maize and 5 to 6 t/ha for rice. The maize variety generallygrown is a local population called Maka which, so far, has out-yielded allhybrid varieties tested in the area. With respect to rice, modernhigh-yielding varieties are already known in the area, such as IR 8, IR 20,IR 1561 and TN 1. New short cycle varieties similar to TN 1 are beingtested in Kaedi, where promising yields up to Il t/ha have been obtained.Cowpeas could become a third major crop in the area. While present yieldsare low when inter-cropped with maize (about 500 kg/ha), yields of about 3t/ha are being obtained with new varieties developed by two institutionswith which the Bank is associated: the Institut séngalais de rechercheagricole at Bambey (Sénégal) and the International Institute of TropicalAgriculture at Ibadan (Nigeria). A concerted effort in seed production andextension could increase yields up to 2 t/ha. Further funding for anexisting irrigated seed farm at Kaedi is being sought from externalsources, so the project would include no specific provision for seed
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production. Instead, the project would further encourage a recentdevelopment whereby some farmers are beginning to specialize in seedproduction, within the small perimeters. Seeds, fertilizers, pumpinginputs and labor requirements are shown at Annex 4-6.
2. Agricultural Extension
4.12 To assist the beneficiaries with the initial operation of the newperimeters, SONADER would make available two extension teams (one persector), each headed by a Mauritanian agronomist assisted by a specialistin cooperatives, a credit agent and a number of extension agents asdetailed at Annex 4-7. The extension teams would advise on watermanagement, credit and farm and cooperative management. The number ofagents has been determined as a function of the actual distance between theperimeters under the responsibility of each agent, who would be serving amaximum of 5 villages within a distance of 25 km. The extension teamswould vary in number annually, according to the project development.
3. Supply of Inputs
4.13 Seed production to meet project demand would be undertaken byselected farmers on existing perimeters. Following procedures presentlyused, fertilizers would be acquired through ICB and would be distributed tothe cooperative groups by SONADER regional offices in coordination with itscentral credit and marketing officer. SONADER will attempt, however, totransfer this operation, as well as the supply of diesel fuel, to privatetrucking contractors.
F. Operation and Maintenance of Pumping Sets
4.14 Adequate operation and maintenance of the pumping equipment is ofthe utmost importance for project success. Based on the projected pace ofdevelopment, from the fourth year onwards the project would require some 40check-ups annually per sector (20 of the 1,500-hr. type and 20 of the3,000-hr. type).Two service teams (a mechanic and an assistant) would beprovided by the project in each sector. In addition to these systematiccheck-ups and in-workshop repairs, the service teams will visit eachperimeter at least once a week; the service teams would also be in chargeof training the pump operators and monitoring the supply of gas/oil andlubricants. Formal training of the mechanics will be provided by thesuppliers of the pumping sets; the obligations of the supplier to thiseffect would be spelled out in detail in the tender documents.
4.15 At present, provision of spare parts is deficient. In theprivate sector, mark-ups are high and stocks are practically nil; SONADERprocurement procedures are not well suïted to the tiimely acquisition ofitems on short notice. To overcome these difficulties, bide for theprocurement of pumping sets would also include the spare parts to beacquired throughout the normal life (about 6,000 hours or 4 years) of theset, according to an indicative list provided by the manufacturer. Aformula for price adjustment would be included in the final tenderdocuments; actual purchasing orders would be prepared annually by SONADER.
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After the development period, maintenance and replacement of pumping setsand provision of spare parts are expected to be arranged directly betweencooperative groups and private suppliers, who are likely to be attractedinto the area by the 3,000 ha to be developed in the next few years.
G. Organization and Management
4.16 SONADER would be responsible for the execution of the project.The beneficiaries, under the participation agreement with SONADER, wouldcontribute labor during construction and be responsible for the operationof their perimeters. While preparation of final designs, procurement andsupervision of project works would be the responsibility of SONADER centralservices, the two sector offices at Gouraye and Kaedi would be responsiblefor agricultural extension, distribution of inputs, maintenance of pumpingequipment, and assisting cooperative groups in managing their accounts andcollecting their payments. A list of the proposed project staff is atAnnex 4-7; senior staff would include two sector chiefs of whom the Kaedichief would be the project coordinator, two agronomists, two cooperativeexperts, two credit agents, four mechanics and one accountant who would beattached to the Kaedi office.
H. Cost Estimates
4.17 Total project costs, net of taxes and import duties, which wouldbe waived, but including contingencies, are estimated at UM 866.7 million,equivalent to US$10.8 million, of which 58% would be foreign exchange. Inaddition, project beneficiaries would provide US$0.6 million equivalentthrough their "sweat equity" contribution. Base costs have been set atJanuary 1985; they have been determined by adjusting prices obtained fromcontracts let in December 1984 for similar projects (Lake R'Kiz) to the newparity of the Ouguiya and further applying increase rates to local andforeign costs (10% and 5% respectively) up to the expected starting date(October 1985). Physical contingencies to allow for variations inquantities have been estimated as follows: earthworks, 25%; constructionmaterials, 15%; pumping equipment, 15%; farming inputs, 20%; and operatingcosts of vehicles, 25%. Price contingencies have been calculated at thefollowing annual percentage rates:
Although project design is fairly simple and no major difficulties areexpected, experience demonstrates that IDA-financed irrigation projects inWest Africa have a disbursement period of eight-and-one-half years afterBoard presentation (average of 15 projects). To allow for cost overrunsderived from a delay in project execution, cost estimates have been revised
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assuming an implementation period of eight years. Under this hypothesis,project cost, including physical and price contingencies, would beUS$ 2 million higher than the cost corresponding to a five-yearimplementation period. This difference is added to project cost as acontingency for implementation delay. A summary of the project's costestimate is presented below. The average unit cost of development works is$2,800 per ha, including physical contingencies, but excluding price andimplementation delay contingencies, which is very reasonable forMauritanian conditions. Annexes 4-8, 4-9 and 4-10 present detailed costsestimates and Annex 4-11 presents the projected schedule of expendituresunder the two implementation hypotheses (5 and 8 years).
Summary Project Cost Estimate
Local currency Foreign currency % Foreign % Base
Local Foreign Total Local Foreign Total exchange cost
4.18 The project would be financed almost fully by IDA and IFAD.Including IFAD's contribution to SONADER's rehabilitation plan (US$0.4million, para. 2.12), total financial requirements would be US$11.2 millionequivalent, of which IDA's share would be US$7.5 million (67%), IFAD'sUS$3.4 million (30%) and Government's US$0.3 million (3%), according to thefinancing plan shown below:
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Financing Plan(US$ million)
Gov't IDA IFAD Total----------- US$ million ----------
a/ Includes US$0.4 million of IFAD's contribution to SONADER'srehabilitation plan.
The IFAD Loan of SDR 3.5 million equivalent would be repayable over 50years, including a 10-year grace period, with a service charge of 1%annually. To facilitate the financing of project operations, the Borrowerwould open and maintain a Special Account to which, at the Borrower'srequest, an authorized allocation of US$500,000 equivalent would be madeout of the proceeds of the IDA credit and IFAD loan. This amount isestimated to be the maximum required to cover about four months ofoperating expenditures. The IDA credit and the IFAD loan would be subjectto cross-effectiveness conditions. In addition, the following would alsobe conditions of credit effectiveness: (a) the Special Account has beenopened; and (b) IDA has been appointed by IFAD as the cooperatinginstitution. Procedures for the operation of the Special Account aredetailed below (para 4.22). Proceeds of the IDA credit, the IFAD loan andthe Government contribution would be passed on to SONADER at no cost, sinceit is a non-revenue earning institution.
J. Procurement
4.19 Two contracts for civil works totalling US$1.6 million would beawarded by Limited International Tender (LIT). Goods totalling aboutUS$4.1 million would be procured through some 15 contracts, including:(i) pumping sets and fertilizers, to be procured through ICB according toBank guidelines, and (ii) other goods, which would be grouped inappropriate bidding packages which, for values above US$50,000 would beprocured through LIT and, for values below US$50,000 (not expected toexceed US$250,000 in the aggregate) could be procured by other proceduresacceptable to the Association. Consultant Services totalling US$1.5million would be procured according to Bank guidelines. Procurement
- 24 -
arrangements are summarized below; IDA would finance 70% of all items;figures in parentheses show the total amounts financed by IDA under eachprocurement method.
Amounts and Methods of Procurement(US$ million)
Items to be Procured Procurement Method Total CostICB LIT Other
Amount to be financed by IDA (1.3) (2.0) (4.2) (7.5)
a/ Does not include the US$0.4 million worth of fertilizers, to be usedoff-project, which would be also procured through ICB and financed100% by IFAD.
4.20 All bidding documents for civil works contracts would be subjectto prior review. Bidding packages for goods over US$100,000 would also besubject to prior review, which would result in a coverage above 80% of thenumber of contracts and about 90% of the total amount.
K. Disbursements
4.21 IDA would finance all categories (except non-incrementalfertilizers) jointly with IFAD, in a 70:30 ratio. Disbursements of the IDAcredit would be against the categories of expenditures and within thelimits shown below:
- 25 -
Disbursement Schedule for the IDA Credit
Item Amount % of Total(US$ million) Expenditures
Civil Works Contracts 1.0 70%
Delivered costs of construction materials,pumping sets, vehicles, topographic andoffice equipment, and tools for mechanicteams and work shops. 2.0 70%
Delivered costs of non-incremental farminginputs 0.3 70%
Running costs of vehicles 0.4 56%
Local personnel salaries 1.0 63%
Authorized allocation under the SpecialAccount (para. 4.25) 0.4
Consultants' services 1.0 70%
Unallocated 1.4
Total 7.5
4.22 Withdrawal applications would be fully documented, except forcategories (d) and (e) above and for expenditures under contracts belowUS$10,000 equivalent, for which Statements of Expenditures would suffice,Supporting documentation of SOEs would be made available to IDA supervisionmissions and would also be reviewed in the course of the audit of accounts(para. 4.26). Disbursements for the replenishment of the Special Accountwould be made against Borrower's requests, with which the Borrower wouldfurnish to the Association satisfactory justification that funds from theSpecial Account were used only to finance eligible project expenditures.Expenditures for the acquisition of agricultural inputs would not beeligible for financing out of the Special Account. Assurances have beenobtained during negotiations that the Borrower would operate the SpecialAccount according to these provisions.
4.23 Given the nature of the project, the disbursement profile of theIDA-financed irrigation and drainage projects for West Africa (average of15 projects) is adopted for the project's profile of disbursements, whichis at Annex 4-12.
L. Monitoring and Evaluation
4.24 SONADER, through the Monitoring Section of its AgriculturalDevelopment Division, has been following up efficiently on the progress of
- 26 -
small-scale irrigation development. The proposed project would bemonitored through these existing arrangements. Assurances were obtained atnegotiations that SONADER would furnish promptly to IDA, not later thanSeptember 30 each year, a project implementation report to cover physicaland financial progress of the project, with the first such report due in1986. Regarding the project s agricultural development, SONADER and IDAwould agree during the course of project implementation on a representativesample of perimeters to monitor and evaluate the impact of the project.Assurances were obtained during negotiations that SONADER would furnishpromptly to IDA, not later than December 31 each year, an agriculturaldevelopment report on the agreed perimeters, to cover the preceeding dryand rainy cropping seasons, the first such report also due in 1986. Afurther assurance was obtained that SONADER would prepare a ProjectCompletion Report within six months of the closing date.
M. Accounts and Audit
4.25 SONADER will establish and maintain separate project accounts inaccordance with sound and generally accepted financial practices.Government would establish and maintain a Special Account, to be operatedas described in para. 4.22. SONADER would open a Rehabilitation Accountwhere Government would deposit its contribution to the financialrehabilitation of SONADER (para. 2.13).
4.26 Audits of project accounts, the Special Account, theRehabilitation Account and SONADER accounts would be carried out annuallyby independent auditors acceptable to IDA. The audit report, of such scopeand detail as IDA may reasonably request, would be submitted to IDA withinsix months after the end of each financial year. The auditor's report willinclude a statement on the adequacy of the accounting system and internalcontrols and as to whether IDA funds have been used for their intendedpurposes. The report would also confirm that Summary Statements ofExpenditures (para. 4.22) correctly reflect detailed records kept bySONADER. Assurances on the above were obtained at negotiations.
V. MARKETS, PRICES AND FINANCIAL ANALYSIS
A. Markets
5.01 Even in good years, Mauritania produces a far smaller volurne ofcereals than is required to feed its population. Over the four-year period1981-84, commercial imports of rice averaged 70,000 tons and concessionaryfood aid, mainly wheat and sorghum, averaged 100,000 tons. Total domestiecereals production in 1983/84, a drought year, was estimated at 20,000tons, of which about 10,000 tons came from irrigated perimeters. Totaldomestic consumption of cereals is about 280,000 tons, with the deficitbeing met by frontier trade in millet, sorghum and some rice. Averageannual per capita cereals consumption is about 145 kg, which is low incomparison to neighboring countries, but comprehensible in view of thestill large proportion of nomads in the total population.
- 27 -
5.02 Domestic production of cereals will increase substantially ifongoing irrigation development programs are successful. Counting theMpourie, Boghe, Kaedi and Gorgol projects, as well as small-scaleirrigation along the Senegal River, the area equipped for full watercontrol irrigation would be about 10,000 ha by 1990 as against 4,000 ha atpresent. With an average cropping intensity of 150% and an edible grainyield of 3.5 tons/ha, incremental production by the mid-1990s would beabout 42,000 tons of cereals per year. The import gap would nonethelessstill exceed 200,000 tons. Nor will the OMVS two-dam scheme substantiallychange the market outlook in the medium term. Although the dams willcreate a double-cropped irrigation potential of about of 400,000 ha (about100,000 ha in Mauriania), prudent estimates of the pace of implementationand land productivity suggest that Senegal, which presently imports 300,000tons of rice per year, will not have a surplus for export in theforeseeable future. By the mid 1990s, however, there could be a surplus ofgrain in the middle and upper Senegal Valley that would result in shipmentstoward the coast. Besides paddy and maize, the project would also producecowpeas (500 tons per year). In the farm budget analysis, cowpeas are usedas a proxy for any non-grain crops; such crops would only be produced iflocal upcountry markets develop, and there are already several encouragingexamples of local initiatives to satisfy such demands.
B. Prices
5.03 Market prices for cereals are primarily determined by Governmentpolicy on the selling prices of concessionary food aid and commercial riceimports. Government food aid policy has recently changed, due in part tothe advice of the main food donors, and the net result is a significantimprovement in the incentives offered to domestic cereal production. InFebruary 1985, the Government raised wholesale prices for food aid cerealsfrom UM 15/kg to UM 22.5/kg in Nouakchott and from UM 14/kg to UM 21.5 inthe interior. One of the objectives of the recent price increase was toeliminate the distortions caused by low consumer prices for food aidcereals. The increase in consumer prices was accompanied by increases inofficial producer prices for cereals, which for sorghum, millet and maizewere raised from UM 15/kg to UM 21/kg and paddy from UM 12.5/kg to UM14/kg. The producer price increases are to more than offset higherproduction costs due in part to Government's decision to reduce fertilizersubsidies by 50 percent in 1985. The higher consumer and producer pricesshould stimulate domestic production.
5.04 Rice imports are managed by the parastatal monopoly, SONIMEX,which also imports tea and sugar. In the past rice prices (for brokenrice) were subsidized from profits realized on tea and sugar. Morerecently, however, the Government has raised rice prices to border levels.In February 1985, following an exchange rate adjustment, the officialwholesale price for broken rice sold in Nouakchott was raised from UM 20/kgto UM 26/kg.
5.05 The net effect of these changes in food aid and rice pricepolicies is that current cereal producer prices for the 1985/86 season areabout equal to border prices. The trend in recent government policy
- 28 -
changes, together with the sustained advice of the main food aid donors,suggests that market displacement effects of food aid will be held down andthat, in general, producer prices will continue to be close to borderprices.
5.06 Until February 1985, input prices were at full cost and weretax-free with the sole exception of fertilizer for which a subsidy of about50% was provided in relation to the border price. All fertilizer was soldat UM 12/kg regardless of composition and location. In February 1985,Government reduced the subsidy on fertilizers by 50%, and will totallyeliminate the remaining subsidy on January 1, 1986. Assurances thatGovernment would implement this measure were obtained at negotiations.
C. Financial Implications for Beneficiaries and Cost Recovery
5.07 The project's impact on farmers' income has been examined throughthe study of three specific perimeters: Diovol in the north-east, Fimbo inthe middle, and Diogontourou in the southwest. Surveys in the project areahave yielded reliable data on farm types and income but little informationon non-farm income, even though it is known to be significant. Accordingly,non-farm income has been estimated, both "with" and "without" project, atthe observed market wage rate (UM 100/man-day equivalent) for the number ofdays not devoted to farm work. This approach provides a clear estimate ofincremental incomes arising from the project. Farm budget financial dataare shown by crop in Annex 5-1 and by cropping patterns and composition ofcosts in Annex 5-2. Detailed farm family budgets are shown at Annex 5-3and are summarized below:
- 29 -
Summarized Farm Family Budgets(in 1985 UM '000 per year)
Specifie Case Diovol Fimbo DiogontourouLocation in project area north-west middle south-eastNo. family members 5.7 8.0 8.0No. adult workers 3.0 4.0 4.0
Without project
Net farm income 38.0 51.0 51.0Other income 27.0 38.0 38.0Total
per family 65.0 89.0 89.0per capita 11.5 11.2 11.1
With project
Net farm income 64.0 100.0 99.0Other income 15.0 23.0 23.0Total
per family 79.0 123.0 122.0per capita 14.0 15.4 15.2
Incremental income
per family 14.0 34.0 33.0per capita 2.5 4.2 4.1
5.08 Without-project incomes would show no increase over pre-projectincomes, with little variation throughout the project area (UM11,000/capita/year). Incomes are derived from rainfed and flood recessioncropping (30%), livestock (15%), existing irrigation, estimated at 0.05 haper adult worker, (15%), and other non-farm income (40%). Without-projectincomes would be about 50% of GNP/capita or about 85% of the criticalconsumption level, with the latter taken at 60% of GNP/capita. Evenallowing for income inequalities within villages, an overwhelming majorityof project beneficiaries would continue to have incomes below the criticalconsumption level, without the project.
5.09 With-project incomes are calculated on the basis of a plot size of0.20 irrigable hectare per adult worker, or an increment of 0.15 ha. (thiswould not apply to those project beneficiaries who do not presently haveaccess to irrigable land, whose increment would be 0.20 ha, whosewith-project incomes would be identical but whose incremental incomes wouldbe higher). With-project incomes would increase to UM 14,000/capita/year inthe north-west, and to over UM 15,000/capita/year upstream; respectiveincremental incomes would be UM 2,500/capita/year (22%) and UM4,200/capita/year (37%). The composition of income would change, with othernon-farm income falling from 40% without project to 20% with project,
- 30 -
throughout the area. Of the balance, irrigation income would account for45% in the north-west, or nearly double non-irrigated crop income whereasupstream the share of irrigated income would be 52% or two and a half timesnon-irrigated crop income. In both zones, moreover, irrigation would makea significant improvement in the assurance of income and food supplies.
5.10 In assessing irrigation costs to be charged to farmers, the maincriterion is the ability to pay as reflected in rents and relative incomelevels. Other criteria important in the project area include theacceptability of the charges to village communities that would haveinvested considerable "sweat equity" in perimeter construction, and thecompatibility of charges practiced on either bank of the river. Under 1982practice in Mauritania, cooperative groups are to repay one-half of thefirst pumping set and two-thirds of the replacement set at 8.5% over afour-year period. Auxiliary materials and installation are provided bySONADER at no charge for the farmers. Except in the first season, when allinputs are supplied at no charge, users pay fuel, lubricants, spare partsand the salary of the pump operator, but labor and other maintenance andrepair costs are borne by SONADER. These arrangements represented rentrecovery indices of 37% in the north-west and 22% upstream; thecorresponding cost recovery indices were 22% and 25%.
5.11 Review of acquired experience, includîng credit repayment ascompared to perimeter income, suggesteci that the rent recovery îndeçSiupstream could be set at at least 33% and that this could be attained raosteffectively by (a) eliminating the practice of supplying all inputs free ofcharge for the first season (nearly all project beneficiaries will have hadprior experience in irrigation, albeit on very small plots);(b) introducing full-cost charges for mechanical services required forpumping equipment repair, in addition to the current practice of chargingfull cost of spare parts (this would have the incidental advantage ofproviding an incentive for private mechanics to enter the pump repairbusiness), and (c) eliminating the subsidy on the first replacement pumpset. Assurances were obtained at negotiations that SONADER would implementin the 1985/86 season, and would present to the Association: (i) beforeDecember 31, 1986, a report on the feasibility of (b) above; and (ii)before December 31, 1988 a report on the feasibility of (c) above. On thisbasis, the rent recovery indices would be 34% in the south-east, 55% in thenorth-west, and 38% overall; the corresponding cost recovery indices wouldbe 41%, 37% and 39%. The 55% index in the north-west, where with-projectincomes only exceed the critical consumption level by 5%, may be a littlehigh. It would on the other hand be a further incentive toward highercropping intensity and greater substitution of maize for paddy. Rentswould thereby lncrease, irrigation costs would undergo a less thanproportional increase, and the rent recovery index would fall toward thesame level as the upstream index. Annex 5-4 presents full details on rentand cost recovery data and indices.
D. Financial Implications for the Public Sector
5.12 Under the proposed arrangements, Government's direct contributionwvoutd be 3% of project costs, or about UM 24 million, which would be
- 31 -
financed by a budgetary allocation to SONADER. At full development,SONADER would withdraw all extension agents, contract out or disband itspump repair services, and its only unremunerated services would be forinput logistics, farm management advice and perhaps credit recovery. Thecost of these services would be about UM 6 million per year, at constantbase costs, or a little more than Government's annual contribution toproject costs. Government would therefore have to continue its budgetaryallocation to SONADER after project completion. Project beneficiarieswould at full development be making an aggregate incremental income of UM65 million/year. An unknown part of this income would be spent on taxablegoods from which Government would derive revenue, and Government'sbreakeven share would be 10% of beneficiaries' aggregate income.Plausibly, this would be realized by beneficiaries spending 50% of theirincremental incomes on goods bearing an average tax rate of 20%. The netburden of the project on the public sector is therefore likely to benegligible.
VI. BENEFITS AND JUSTIFICATION
A. Project Benefits
6.01 The project would be part of the final phase in the ongoingprogram of development of small-scale irrigation (para. 2.05), and it wouldexhaust the potential for cheap, easily constructed small perimeters closeto existing villages in the Kaedi and Gouraye sectors. The project wouldinclude two types of perimeters, each of 20 ha: those (Type A) which canbe built entirely by manual labor with an input of 4,500 man-days perperimeter in the form of sweat equity, and those (Type B) where, inaddition to a similar manual labor input, the terrain also requires somemechanical earthworks. The Type B perimeters would be an innovation, inorder to ensure that the 20 ha perimeter size is attained. The projectwould also entail some changes in current practices, notably increased rentrecovery. The project would include 25 Type A perimeters, for which aspecific case in the middle of the project area has been examined in theeconomic analysis, and 50 Type B perimeters, for which two specific caseshave also been examined at the northwestern and southeastern extremities ofthe project area.
6.02 Incremental annual irrigated production would be about 3,500 tonsof paddy, 6,000 tons of maize, 500 tons of cowpeas and 10,000 tons of hayand straw. In contrast to traditional rainfed and flood recession croppingpracticed in the project area, irrigated output would be assured. Despitethis assurance, the economic valuation of project output does not include apremium to reflect the food security benefit of irrigation. Outputs arevalued at border prices for paddy and maize and observed market prices forcowpeas. Full production on each small perimeter would be reached in thefirst year of exploitation. The build-up to full production would thereforebe at the same rate as the schedule of construction of small perimeters(para 4.10).
- 32 -
6.03 About 2,900 families (20,000 people) would directly benefit fromthe 1,600 irrigable hectares on the 75 new perimeters. Averagewithout-project incomes are about 15% below the critical consumption level(CCL), estimated at 60% of per capita GNP, while with-project incomes wouldbe about 10% above the CCL. Since society in the project area is quitehierarchical with widespread landlord/tenant relationships, includingsharecropping, average incomes may conceal sharp differences. Theperimeters would, however, be located on sloping land close to the river,not in the prized depressions where flood recession cropping is presentlypracticed, land rights clearly established and sharecropping mostwidespread. It is therefore anticipated that, as previous experience hasshown, prior land rïghts will not pose a major problem for the constructionof the new perimeters, nor will they be a disincentive to beneficiaryparticipation. The rent recovery index is 38%, well within thebeneficiaries' ability to pay, and the residual cost recovery index is 39%(para 5.11).
B. Economic Analysis
6.04 In calculating rates of return, the following major assumptionsare used:
a) project life of 20 years with no residual values;
b) standard conversion factor of 0.86;
c) opportunity cost for all labor of UM 100/man-day equivalent,being the observed market wage-rate that varies little throughoutthe year;
d) costs other than perimeter-specific costs are uniform for allperimeters.
Economic analysis is based on current border prices. Calculations aredetailed in Working Paper 3, results are summarized at Annex 6, andeconomic rates of return would be, at least, as follows:
Economic Rates of Return
A: All manual construction (Fimbo perimeter) 39%
BI: Mechanical earthworks (Diovol perimeter,northwest of project area) 19%
B2: Mechanical earthworks (Diogontourou perimeter,southeast of project area) 26%
Aggregate (assuming 25 perimeters of each type) 25%
Social rates of return would be larger than economic rates of return sincethe distributional impact of the project would benefit small farmers.Such farmers would experience a 30% increase in their incomes, bringing
- 33 -
them about 10% above the critical consumption level but still about 30%below national per capita income.
6.05 Sensitivity analysis was performed on the three specificperimeters and on the aggregate streams. In all cases, rates of return aremore sensitive to benefits than to costs. Accordingly, crossover valueswere explored for benefits, with the following yields for an economic rateof return of 10%:
Appraisal and Cross-Over Yields(in tons/ha)
Appraisal Cross over % Change
Paddy Maize Cowpeas Paddy Maize Cowpeas
A: Fimbo 4.5 4.0 2.2 2.9 2.6 1.4 -35
BI: Diovol 4.5 3.5 2.2 3.8 3.0 1.9 -15
B2: Diogontourou 4.5 4.0 2.2 3.3 2.9 1.6 -27
Aggregate 4.5 3.8 2.2 3.4 2.9 1.7 -25
The least safe case is Diovol, which has a different cropping pattern, withmore paddy than the two more southeasterly sites. It can be expected,however, that if productivity declines there will be a switch to maize.If the cropping pattern at Diovol were the same as at the two other sites,the permissible percentage change between appraisal and crossover benefitswould be 29%. The magnitude of the difference between appraisal andcross-over values is such that the risk of lower than anticipated benefitsis safely covered. Further, given the nature of the project, whereby costsare incurred only when a perimeter is carried out, a time lag betweeninvestment costs and project output is unlikely. A possible implementationdelay would therefore have no significant adverse effect on the economicrate of return of the project.
C. Risks
6.06 Given the nature of the project, its risks are minimal, since theexecution of each perimeter would be undertaken only after thoroughpreparation and IDA approval. In addition, the fact that the projectconsists of a series of independent perimeters is in itself a safetymechanism, since particular problems that might develop in one perimeterwould not affect the project as a whole. Thus, the only foreseeable riskwould be related to the support services, notably major failures in theoperation and maintenance of the pumping equipment or in the distributionof inputs. To reduce such risks, it is essential that operation andmaintenance charges borne by beneficiaries fully cover the actual costs ofgoods and services received and that these be promptly paid so as to allowthat the support services to perform their tasks properly. This willrequire discipline and rigorous enforcement.
- 34 -
VII. ASSURANCES AND RECOMMENDATION
7.01 During negotiations, assurances were obtained on the followingpoints:
a) technical specifications in the bidding documents for pumpingequipment will be in accordance with the "Projet de Dossierd'Appel d'Offres" (Draft Technical Specifications for BiddingDocuments) (para. 4.04);
b) beginning in 1986, SONADER would present for IDA approval anannual work program containing, for each perimeter, finalengineering designs, cost estimates, and the participationagreement of the cooperative groups as well as, for all type Bperimeters together, the tender documents to be carried out bycontract; only those perimeters approved by IDA would be eligiblefor financing under the proposed credit (para. 4.08);
c) SONADER would employ two consultant engineers with qualificationsand experience, and terms and conditions of employment,satisfactory to IDA (para. 4.10);
d) starting in 1986, SONADER would promptly furnish to IDA each yearnot later than: (i) September 30, an implementation report tocover physical and financial progress of the project; and (ii)December 31, an agricultural development report on the agreedperimeters to cover the preceeding dry and rainy seasons; SONADERwould further furnish to the Association a Project CompletionReport not later than six months after the closing date (para.4.24);
e) SONADER would establish and maintain: (i) separate projectaccounts in accordance with sound and generally acceptedfinancial practices; and (ii) a Rehabilitation Account whereGovernment would deposit its contribution to the financialrehabilitation of SONADER. In addition, Government wouldestablish and maintain a Special Account for the purposesindicated in para. 4.18, to be operated as described in para.4.22 (para, 4.25);
f) SONADER accounts, including the project accounts and theRehabilitation Account would be audited annually by independentauditors acceptable to IDA; the audited accounts, together withthe auditors' report would be submitted to IDA not later than sixmonths after the closing of each fiscal year (para. 4.26);
g) Government would totally eliminate the subsidy from the price offertilizers not later than January 1, 1986 (para. 5.06); and
h) for the 1985-1986 season, SONADER will eliminate the practice ofsupplying all inputs free of charge for the first season; in
- 35 -
addition, SONADER will present to the Association: (i) beforeDecember 31, 1986, a report on the feasibility of charging thefull cost of mechanical services required for pumping equipmentrepair; and (ii) before December 31, 1988 a report on thefeasibility of eliminating the subsidy on the first replacementpumping set (para. 5.11).
7.02 The IDA credit and the IFAD loan would be subject tocross-effectiveness conditions; in addition, the following would beconditions of credit effectiveness: (a) the Special Account has beenopened; and (b) IDA has been appointed by IFAD as Cooperating Institution(para. 4.18).
7.04 With the above assurances, the proposed project constitutes asuitable basis for an IDA development credit of US$7.5 million to theIslamic Republic of Mauritania.
WAPA CMarch 1985
MAURITAMIA
SHALL-SCALE IRRIGATION PrOJECT
DATA FOR TUE 1980/81 SE&SON
Ceneral Data Production Data
Sector Project Area Crops Dry Season 8b-8I Rainy Season 81 Total 80-81
Rosso FED 31.5 Area Prod. Yiold Area Prod. Yield Area Prod. Yield
a/ Monthly evapotransporation values are calculated by multiplying the crop development coefficients with the open pan evaporation values; evapotranspiration values plus
quantities required for the field operation give monthly gross water requirements from which the monthly rainfall values are deducted in order to arrive at net water
requirements; pumping requirements are calculated by applying an overall efficiency of 56% (75% at field level and 75% for conveyance) to the net water requirements.
b/ See Table 1.
c/ Two-year lysimeter observations at Kaedi and Guede.
d/ Water retention capacity assumei at 15% volume; two irrigations wetting the soil down to about 25 cm. t
e/ Estimated water requirements for 1/20 of 1 ha for a period of four weeks in the months of May and June.
f/ Saturating a pore volume of about 20% to a depth of 40 cm.
First inundation of 30 cm. N
h/ Second inundation of about 5 cm after superficial drainage of plots to permit weeding and top dressing of second urea application.
WAPACFeb. 1985
MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
Irrigation and Pumping Requirements: Dry Season a!
1/ Km markers from St. Louis; total river distance: Kaedi sector 210 km, Gouraye sector 192 km; total:402 km.
2/ Approximate road distances; Kaedi sector 190 km, Gouraye sector 130 km; total 340 km.3/ 120 kg/ha to be applied per year, either on paddy or maize.4/ HCH, or a smaller quantity of a more effective insecticide, if available, against grasshoppers.5/ Endosulphan or similar product against thrips.6/ Man-day equivalents for yields of the order indicated under Outputs.7/ 3.5 tons/ha in the Kaedi sector; there is no inherent reason why output in Kaedi sector should be
less than Gouraye, but, in practice, there is a difference.8/ By value of grains/beans.9/ Wet season.10/ Dry season; maize is planted in the early or "cold" dry season.fi/ Dry season; sole cropped cowpeas would be planted in the late or "hot" dry season.
WAPAC
Feb. 1985
- 48 - ANNEX 4-7
MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
Staff Reguirements
1989 &1984 1985 1986 1987 1988 onwards
----------- (No. of posts)…--------
Sector Chiefs 2 2 2 2 2 2
Agric. Advisers 2 2 2 2 2 2
Coop. Advisers 2 2 2 2 2 -
Credit Agents 2 2 2 2 2 2
Accountant 1 1 1 1 1 1
Promotors 2 2 2 - - -
Extension Agents 3 10 15 12 5 -
Mechanics 1 3 4 4 4 4
Assist. Mechanies 1 3 4 4 4 4
Warehouse keeper 2 2 2 2 2 2
Drivers 8 8 8 8 8 4
Secretaries 2 2 2 2 2 -
Support Staff 4 4 4 4 4
WAPACFeb. 1985
- 49 - ANNE4 4-8
o,0.,l900000 ~ ~ ~~~~~~~~~~~~~~~~~~r~3 l, o'
12144 o Totl bol.------------------- - ---------- - -- -- ----
1/ Actual cost: 1UM15/kg, from output price of UM 12.5/kg, plus seed treatment and allowance forstorage. Full cost: assumes elite seed purchased et UM50/kg, multiplied out on PPVs, and
theu used for three years before renewal; this system ts not yet operating.2/ Actual cost: UM12/kg. Pull cost: UM23.5/kg at Kaedi, then UMO.2/kg/km derived from UM100/10-ton
truck/kg payable both ways.3/ Actual cost: UM24/liter. Full cost: UM22.5/liter at Kaedi, transport as at 2/.4/ Actual cost: UM120/liter. Full cost: the same, transport ignored.5/ UM38/hour, being the average cost at 6,000 hours life. Actual costs are full costs but for the
parts only; cost of workshop mechanical services is treated as a non-crop-specific cost at Table 3.6/ UM12.5/kg paddy; UM15/kg maize; UM23/kg cowpeas.7/ Net revenue per man-day equivalent.8/ Actual cost the same as full cost: UM18/kg, from output price of UM15/kg, plus seed treatment and
allowance for storage.9/ UM40/kg, actual cost the same as full cost.10/ Seed, urea and insecticide as for wet season maize.11/ Actual cost the same as full cost: Um30/kg, from output price of UM25/kg plus seed treatment and
allowance for storage.12/ UM300/kg, actual cost the same as full cost; sprayer cost UM 10,000 over five years per 4 ha;
UM500/ha.
WAPACFeb. 1985
- 55 - ANNEX 5-2
MAURITANIA
SMALL SCALE IRRIGATION PROJECT
Farm Budget Financial Data: By Cropping Pattern and Composition of Costs
Perimeters Diovol Fimbo DiogontourouCosts Actual Full Actual F1ll Actual Fill
Sub-total: Water 12,499 17,208 13,003 18,351 12,901 18,859
Total Costs 18,495 27,366 19,965 31,109 19,863 32,629
1/ Kaedi Sector (Diovol): wet season 70% paddy, 30% naize; dry season 37.5% maize, 12.5% cowpeas; cropping intensity150%; Gouraye sector (Fimbo and Diogontourou): wet season 30% paddy, 70% maize; dry season 60% maize, 20%cowpeas; cropping intensity 180%.
2 N bon-crop-specific, and excluded from the above at Table 2.3/ Actual costs: LM 12/kg. Full cost 1M 18.5/kg at Kaedi; then tM 0.2/kg/kn derived from I 100/10-ton truck/km
payable both ways.4/ Cost of working mechanical services and site visits; actual charge to PPY zero. Full cost: inferred from anrual
costs of Gcuraye workshop of LM 3.32 million for 37 perimeters.5/ Actual cost: initial cost of 1M 454,000, subsidized at 50%, repayable over 4 years at 8.5%. Rull cost: breakdown
tM 454,000 between motor (lM 240,000), repayable over 4 years at 8.5% and pump and base (UM 214,000) repayableover 8 years.
6/ Weighted average man-day equivalents: Kaedi sector cropping patter 269; Gouraye sector cropping pattern 248.7/ The differences between actual and full costs represent the subsidy payable by SONADER.8/ Differences are not subsidies, but represent the additional cost of a rice seed service once operational.9/ Because SCNADER operates a single price for fuel oil throughout the valley, "profits" are made on the downstream
perineters that broadly offset the subsidies in the Gourave sector.
WAPACFeb. 1985
- 56 -
MAURITANIA ANNEX 5-3
SMALL-SCALE IRRIGATION PROJEC1
Farm Family Budgets
Diovol Fimbo Diogontourou
WITHOUT PROJECINon-irrigated farmingRainfed 8,000 a/ 17,740 b/ 17,740Flood Recession 12,120 c/ 8,290 -/ 8,290Total net income 20,120 26,010 26,010Man-day input e/ 107 129 129Net income/man-day (NI/md) 188 202 202
Total farm net income 69,760 64,451 108,589 99,674 108,671 98,458Man-day input 268 268 327 327 327 327NI/md 260 240 332 305 332 301
Other incomeBalance of man-days k/ 152 152 233 233 233 233Valued at opportunity cost 15,200 15,200 23,300 23,300 23,200 23,300
Total farm family income 84,960 79,651 131,889 122,974 131,971 121,758Per man-day 202 190 236 220 236 217Per head 14,906 13,974 16,486 15,371 16,496 15,219
INCREMENTSFarm net income 30,480 26,498 55,184 48,498 55,246 47,586Per head 5,347 4,649 6,898 6,062 6,906 5,948
Other income (12,100) (12,100) (14,800) (14,800) (14,800) (14,800)Per head (2,123) (2,123) (1,850) (1,850) (1,850) (1,850)
Total farm family income 18,380 14,398 40,384 33,698 40,446 32,786Per head 3,224 2,525 5,048 4,212 5,056 4,098
a/ 1.25 ha millet/cowpeas at 250/150 kg/ha at UM 15/20/kg plus 12% by value for cowpea hay and net/grossrevenue factor of 0.9.
b/ 0.40 ha millet/cowpeas as at a/; 1.6 ha sorghum/cowpeas at 400/150 kg/ha at UM 15/20 kg plus 12% by valuefor cowpea hay and net/gross G.9; 0.2 ha groundnuts at 405 kg/ha at UM 20/kg plus 5% by bvalue for hay andnet/gross 0.9.
c/ 1.9 ha sorghum at 450 kg/ha at UM 15/kg plus 5% by value for straw and net/gros. 0.9.i 1.3 ha sorghum as at cl.
e/ Millet/cowpeas and sorghum/cowpeas 40 md/ha; groundnuta 50 md/ha; flood recession sorghum 30 md/ha.1/ 20 amallatock at 30% offtakn at UM 1,500/hoad.8/ 0.15 ha/family in Kaedi sector <Diovol), 0.2 ha/family in ¢ouraye sactor.P 200 working daya/yaar; Kaedi familiesi 5,7 people 1.2 mon, 1,8 women, woman-days valued Lt 50% of a
min-day; balance is 420 - 147; Gouraye families: à people, 1.6 men, 2.4 women, woman-dayi valued at 50%;balance is 560 - 179.
i/ Total net farm income above.8/ 0.2 ha/adult family member x 3 in Kaedi sector (0.6 ha/family) of which 0.45 additional ha/family; x 4 inGouraye sector.
k/ Kaedi: 420 - 268; Gouraye: 560 - 327.
WAPAC
Feb. 1985
- 57 - ANNEX 5-4
MAURITANIA
SMALL-SCALE IRRIGATION PROJECT
Rent and Cost Recovery Data and Indices
Perimeter Diovol Fimba Doiagontourou ProjectCoste Actual Full Actual Full Actual Full Full Costs
Noetl (armers' inrnme/hsad 1987without the praojct 12/ 11.5 11.2 11.1
1/ Klssdi ectoar (Dioval) I 0.45 incrûmrntal irrigâted hâ/ismilyt Gourapy sectorl 0.6 ha.
2/ 5% on piping: Diovol UM 91,000/perimeter or UM 2,048/family; Fimbo and DiogontoutouUM 68,000/perimeter or UM 2,040/family.
3/ Man-day equivalents at opportunity co-t of UM 100/day.
4/ 5% of Net Cash Income.
5/ 10% return on sweat equity of 4,500 mandays/perimeter at opportunity cost of UN 100/day;Diovol own capital UM 10,125/family; Fimbo and Diogontourou own capital UM 13,500/family.
6/ 10% of Net Cash Income, as a premium to cover protracted pumnp breakdwons.
7/ At full-cost prices, discounted at the Gorgol rate of 7% and 10%, 20 years. First year, wetseason only (Table 7).
8/ Sum of depreciation, etc.
9/ Full cost, except that the first pump set continues to be subsidized at 50%. Repairs notcharged until Year 6.
10/ Investment costs - plus support services plus fuel, oil, spares and repairs as at Table 8.
11/ Table 4
12/ By valuing labor input to incremental irrigation at opportunity cost (UM 100/day) instead ofat net irrigation income. The effect of the project at all three perimeters is to bringfarmers from about 15% below the CCL ta about 10% above it.
WAPAC
Feb. 1985
-8 - ANNEX 6
MAURITANLA
S1ALL-SCALE IRBIGAIION PROJECT
Summary of Economic Results
Fimbo Diovol Diogontourou Total
- (En, 20 years)Base Cases 38.7 18.5 26.4 25.0
A11 vith Kaedi cropping.pattera 24.6 18.5 16.4
A11 vith Gouraye cropping pattern 38.7 30.2 26.4
Without SCF factor 36.7 15.9 24.2 23.0
Kaedi cropping pattern 21.4 15.9 14.1
Gouraye cropping pattern 36.7 27.9 24.2
Earthworks test ( O '000)
investent cost (excl labor) 3,.374 4,382 4,853
Earthworks included 1,283 1,380
Maxîmtm permissible earthtorks
for ERR 10Z 7,424 3,841 7,042
for ERR 15% 4,684 2,062 4,372
Sensit±vity Indicators (ERR, 20 years)
Costs up 10% 32.4 13.3 20.9 19.6
Decline in points 6.3 5.2 5.5 5.4
Benefits down 10% 31.3 12.8 20.2 19.1
Decline in points 7.4 5.7 6.2 6.0
Crossover Points for E O 10% -- (2 change>)
Benefits 35 15 27 25
Costs 54 13 37 33
WAPACFe-b. 1985
IBRD 165691< 1V- 15-
N0 ISLAMIC REPUBLIC 0F MAURITANIA
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fl,IGATION PERME-TES AT CEE SITE
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11MATT REC[SIL CAPITAL
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