Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 4218-SU

STAFF APPRAISAL REPORT

SUDAN

GEZIRA REHABILITATION PROJECT

May 15, 1983

Eastern Africa Project DepartmentNorthern Agriculture Division

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY AND EQUIVALENT UNITS

Sudanese Pound = 100 piastreLSd 1.00 = US$2.0 (official 1980/81)LSd 1.00 = US$1.25 (parallel) 1980/81LSd 1.00 - USi$1.1 (Nov. 1981-Nov. 1982)LSd 1.00 = US$0.77 (since Nov. 1982)

WEIGHTS AND MEASURES

Feddan (fd) = 0.42 hectare (ha)Kantar (seed cotton) 143 kilogram(kg)

Kilowatt ('w) = 1.36 horsepower (hp)

ABBREVIATIONS

ABS Agricultural Bank of SudanARC Agriculture Research CorporationARP Agricultural Rehabilitation Prog:ramAWP Anlnual Work ProgramBNHP Blue Nile Health ProjectCPC Cotton Public CorporationEAP Expcrt Action Program:EC European Economic ColmmunityELS Extra Long Staple CottonEMC Earth Mioving CorporationFOP Field Outlet PipeGLPR Gezira Light RailwayGOS Gcvernment of SudanIBRD Irternational Bank for Reconstruction & Develop.IDA International DevelopiMent AssociationM40FEP Hinistry of Finance and Economic PlanningMOAI Ministry of Agriculture & Irrigation

I>IA I() MCAI Irrigation DepartmentMoil Ministry of HealthMS Medium Staple CottonO&M Operation and MaintenancePMC Project Management CommitteePPC Project Procurement CommitteePPF Project Preparation FacilityRPMU Rehabilitation Project Management UnitRWA Rural Water AdministrationSCPO Sudan Company for Processing of OilseedsSGB Sudan Gezira BoardSOC Sudan Oilseeds CorporationSOE Stateiaent of ExpendituresSPTC Sudan Public Telecommiunications CorporationWHO World Health Organization

GOVERNMENT OF SUDAN

FISCAL YEAR

July 1 to June 30

-i- FOR OFFICIAL USE ONLY

SUDAN

GEZIRA REHABILIATION PROJECT

Staff Appraisal Report

Table of Contents

PageI. BACKGROUND

A. General ......... ............................. 1B. The Agricultural Sector ....................... 1C. Recovery Strategy and Project Rationale ....... 3D. Bank Group Role ............................... 5

II. THE PROJECT AREA

A. General Description ........................... 6B. Agriculture ................................... 8C. Irrigation and Drainage ....................... 11D. Infrastructure ................................ 13

III. THE PROJECT

A. Project Description ........................... 15B., Project Components ............................ 16C. Status of Engineering ......................... 22D. Cost Estimates ................................ 23E. Financing Plan ................................ 25F. Procurement ............. 27G Disbursement .................................. 28H. Information Systems, Accounts and Audit ....... 29I,, Water Demand and Availability ................. 30J. Environmental Impact .......................... 32K. Mid-Term Review ............................... 32

IV. IMPLEMENTATION

A. General ....................................... 33B. Project Execution ............................. 33C. Annual Work Program ........................... 34D. Sudan Gezira Board ............................ 36E. Ministry of Agriculture & Irrigation (Irrig.). 37F. Agricultural Research Corporation ............. 38G. Blue Nile Health Project ...................... 38H. Rural Water Administration .................... 38I. Sudan Public Telecommunications Corporation ... 38J. Private Sector Machinery Operations ........... 38K. Monitoring, Evaluation and Reporting .... ..... 39

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

Page

V. AGRICULTURAL PRODUCTION, MARKETING AND PRICES

A. Agricultural Production ........................ 39B. Marketing and Pricing .. 41

VI. FINANCIAL ANALYSIS AND TENANTS' INCOME

A. SGB's Cost Recovery System ..... ............... 43B. SGB's Financial ResuLts .45C. Other Project Entities' Financial Results. 45D. Government Cash Flow .46

VII. PROJECT BENEFITS, JUST:tFICATION AND RISKS

A. Production Benefits.. 46B. Other Benefits ..................... 46C. Economic Analysis .47D. Project Risks ...................... 48

VIII. SUMMARY OF AGREEMENTS REACHED .49

LIST OF TEXT TABLES

Table 1: Gezira: Project Cost Summary

Table 2: Gezira: Financing Plan

Table 3: Gezira: Financing for Different Categories of Goods andServices

Table 4: Gezira: Area, Yield and Productioii

Table 5: Gezira: Input Application Rates with and without the Project

- iii -

ANNEXES TO STAFF APPRAISAL REPORT

ANNEXES1 Project Components by Time

2 Current Financial Prices

3 Financial Analysis - Supplementary Tables1. Estimated Price Contingency and Foreign Exchange Rates2. Gezira Board Income and Expenditure Account3. Gezira Board - Projected Cash Flows4. Gezira Farmers' Incomes5. MOAI(I) - Projected Cash Flows6. Government Incremental Cash Flows Under the Project7. Government Incremental Foreign Exchange Earnings under

Project

4 Disbursement Tables1. Estimated Schedule of Disbursements2. Categories of Expenditure

5 Agricultural Data - Supplementary Tables1. Area, Yield and Production 1972-822. Area, Yield and Production With and Without Project3. Meteorological Data4. Monthly Water Requirements at Sennar Dam

6 Research Program Objectives

7 Annual Work Program

8 Technical Assistance and Consultancy Services

9 Studies

10 Training

11 Data Available in Project File

CHARTSI. Gezira Rehabilitation Project: Project ManagementII. Gezira Rehabilitation Project - Simplified OrganigramIII. Sudan Gezira BoardIV. Ministry of Agriculture and Irrigation (Irrigation Department)V. Crop RotationsVI. Implementation Schedule

MAP SMap of Sudan with Project Location (IBRD No. 16493)Map of Project Area - Irrigation and Drainage Systems (IBRDNo. 16494)

. E

SUDAN

GEZIRA REHABILITATION PROJECT

CHAPTER I

1. BACKGROUND

A. General

1.01 The Government of Sudan has requested Bank Group assistance forfinancing the rehabilitation of the Gezira Irrigation Scheme, whereproduction has fallen sharply during the last decade. The Project area,covering 2.1 million feddans (fd) equivalent to 0.9 million hectares, liesbetween the Blue and White Nile in Central Sudan and is managed by theSudan Gezira Board (SGB), a public corporation. Production responsi-bilities are divided between SGB, the Central Government IrrigationMinistry and the 102,000 tenants on the scheme. The main crops are cotton(Sudan's major export), sorghum, wheat and groundnuts. The proposedProject would aim to increase production and productivity of the principalcrops grown on the scheme. Measures would include rehabilitation of theirrigation and drainage systems and infrastructure, better land preparationand improved input delivery systems, strengthened management andappropriate producer incentives. The financial solvency of SGB would berestored through adoption and enforcement of suitable price and costrecovery policies and there would be a substantial increase in theGovernxtent's foreign exchange earnings and revenues, principally fromexpanded cotton exports. During the Project period, studies and trialswould be undertaken for upgrading technology and restructuringinstitutional arrangements, setting the stage for further modernization ofthe sch,eme. The Project was prepared by Euroconsult (the Netherlands) inassociation with Sir Alexander Gibb and Partners (UK) and TCS (Sudan). Thepreparation was financed jointly by the Kuwait Fund and IDA and supervisedby a Project Steering Committee established by Government. This report isbased on findings of an IDA appraisal mission to Sudan in May/June 1982 anda follow-up mission in October 1982. The missions included J. Shivakumar,S. Barghouti, M. Bromhead, G.A.V. Buttex, G. Clarkson, I. Foik, A.Hartmarn, R. Masthagan, A. Raza, C. Smith and B. Woods (IDA) and P. Sell,O.A. Ballal, N. Prescott and B. Shawki (consultants).

B. The Agricultural Sector

1.02 The agricultural sector dominates the Sudanese economy. Itprovides for the livelihood of 80% of the population and contributes about40% of GDP and 95% of exports. The Bank published a survey of theAgricu:Ltural Sector in May 1979 (Report No. 1836a-SU) and a review of thesector is included in the Bank economic report "Sudan-Investing forEconomic Stabilization and Structural Change" issued in February 1982(Report No. 3551a-SU).

-2-

The Irrigation Subsector

1.03 The first large-scale gravity irrigated project in Sudan wasstarted in the 1920's at Gezira, initially for the cultivation of cotton asan export crop. There are now five major irrigation schemes: Gezira-Managil (2 millIon feddans), New Halfa (0.4 million feddans), Rahad (0.3million feddans), and the Blue and White Nile Pump schemes covering 0.7million feddans. About 50% of agriculturaLl export earnings were derivedfrom cotton in the 1970-80 decade, mostly from the irrigation schemes.The most striking feature of agricultural export patterns in the seventieswas the sharp decline in the volume of exports of Sudan,'s traditional cashcrops, long staple (ELS) cottorn, sesame and groundnuts. The annual exportvolume of these three crops averaged only 81,000 tons, 41,000 tons and43,000 tons, respectively during the 1979-81 periDd, compared to 168,000tons, 70,000 tons and 99,000 tons in 1972-74. Only because the terms oftrade were in Sudan's favor during the period, bo:h for cotton and foroilseeds, was the decline in value not more dramatic. Nevertheless, thereduction in agricultural exports has played a major part in Sudan'scurrent economic difficulties.

1.04 There are many causes for this decline. The maintenance ofexisting irrigation schemes has been neglected in favor of new expansion.Crop diversification and intensification in the early seventies placed astrain on delivery of inputs and management. The flight of skilledmanpower to neighboring oil-prcducing countries compounded the problem.Perhaps most important, the Governments its weak i-iscal base strained forcash to finance new investments, held the producer price for cotton low soas to maximize short-term budgetary revenues. Cotton ceased to be anattractive crop for tenants, who increasingly devoted more attention toother crops and off-farm activities, while producing corporations wereunable to cover maintenance costs and replace equipment. Declining exportsalso led to shortages of the foreign exchange needed to buy spare parts andinputs. These inputs were delivered late, cultivation techniquesdeteriorated, and yields of all crops fell.

1.05 The pattern of production relations developed at Gezira, theoldest and largest scheme, has served as a model for the others. Afterattempts to use wage labor and a rental system failed, a partnership wasdeveloped based on the traditional allocation of crop shares on landsadjacent to the scheme. Profits were divided betwreen the Government,responsible for developing and providing irrigaticn to the land, acorporation responsible for agricultural services, and itenants, responsiblefor supplying labor, seed, tools and farm animals. Under this system, mostof the items of expenditure incurred by agricultural corporations for thedifferent crops grown on the tenancies were deducted from the totalrevenues received from cotton sqles by the corporation concerned. The net

revenues from cotton were then distributed in Gezira (and along a similarpattern in other schemes) as follows: 36% to the Government for land use,dam and canal maintenance and provision of water; 10% to the corporationsfor meeting overhead costs; and 47% to the tenants. A further 2% was setaside for a local government tax, 3% for a Social Services Fund and 2% fora Tenants' Reserve Fund. The tenants' share was then divided by totalscheme production of seed cotton to arrive at a price per kantar of seedcotton payable to each tenant. The Joint Account created a strong bias inthe minds of tenants against cotton. Input costs were recovered per kantarof cotton produced rather than per feddan of area planted. This penalizedthe more productive cotton growers, whose actual per kantar costs werelower. Over the years the tenants' share increased from 40% to 47%although increasing responsibilities, for instance sowing and fertilizerapplication, had been transferred to the corporations. Consequently, thecorporations increasingly lacked revenue to discharge theirresponsibilities effectively. The most serious consequences of the JointAccount System, however, were felt when cotton yields fell at the same timeas other crops became increasingly important. These crops are privatelymarketed and input costs cannot be recovered at sale. Therefore, land andwater costs for these crops were recovered from cotton revenues. Cotton,bearing the burden of these other charges, therefore became less and lessattractive to tenants.

C. Recovery Strategy and Project Rationale

1.06 Recognizing the severity of the problem, the Government, with theBank, drew up the Export Action Program (EAP) in 1980 designed to restoreproduction to the levels of the early 1970s. The EAP contains provisionfor: (i) urgently needed investments aimed at satisfying requirements forspare parts, machinery and equipment in order to arrest decapitalizationwhich has plagued the subsector; (ii) allocation of foreign exchange tofinance larger imports of current inputs of which there has been a seriousshortage; (iii) a series of rehabilitation projects, with IDA support, tobe carried out in the 1980s, principally in the major agricultural schemeswhere cotton is grown; and (iv) policy reforms and other actions such asinstitutional reforms and revision of the incentive systems intended tostimulate greater production. In line with the strategy embodied in theEAP, IDA also financed projects for the rehabilitation of the New Halfa(Credit 1022-SU), Blue Nile Pump (Credit 1118-SU), and White Nile Pump(Credit 1119-SU) schemes. All rehabilitation projects include measures toimprove management capabilities, such as the design of regular workprograms and improved financial management, technical assistance andtraining.

1.07 The Agricultural Rehabilitation Program of US$76 million (IDACredit 1000-SU of US$65 million and EEC Special Action Program of US$11million) financed urgently needed requirements for spare parts, machineryand equipment in order to arrest the decapitalization of the 1970s. Thiscredit was disbursed over a two-year period. Three reports of particularimportance to irrigated production have resulted from ARP financed

studies . They are. (i) "Study' of Cost Recovery in the IrrigatedAgricultural Sector"; (ii) "Study of Cotton Markel:ing"; and (iii)"Administrative Review of the Irrigation Sector". These studies drew uprecommendations for policy reform which may be grouped under four mainheadings: (i) Improvement of cost recovery and reform of accountingsystems; (ii) Reform of cotton pricing mechanisms; (iii) Improvement ofcotton processing and marketing systems; and (iv) Improvement of Governmentsupport and supervision of parastatals. Progress towards implementingthese reforms is described in the following paragraphs.

lo08 In June 1980, the Government announced that the Joint AccountSystem would be abolished and replaced by an individual accounting system.Tenants would be charged for each input for each sindividual crop. Accountswould be kept separately for each tenant, and debts would be recorded forcash advances, inputs, services and land and water charges primarily on aper feddan basis. On this basis, farmers would receive a much. larger shareof their marginal increases in production, thus increasing the incentive toproduce. With effect from 1981/82, the individual account system has beenintroduced on all schemes.

D309 Also in June 1980, the Government announced two other reforms.The first was to announce publicly, each year before harvest, a producerp-rice for cotton. The second was to pay tenants l-heir cotton incomespromptly on delivery of seed cotton on the basis of the new individualaccount system. As a result, tenants were, for the first time in over halfa century, able to estimate incomes from cotton reliably since distortionscaused by uncertainty over prices, unpredictable cashflows, and adjustmentsof non-cotton charges against cotton sale proceeds were eliminated. Thisgave them the opportunity to make rational decisions on allocation ofefforts between tending the cotton crop and other competing claims on theirtime and has contributed to the remarkable improvement in productivityachieved in the last two years. Cotton prices for the 1980/81, 1981/82 and1982/83 seasons were announced in early December each year and providedadequate incentives for growers.

1.10 Cotton is exported by the Sudan Cotton Public Corporation (CPC)-which generally obtains favorable prices for cotton exports. However,tecthnical and institutional improvements are needed so that it can operateon more commercial lines. These issues are being addressed during thepreparation of a Cotton Marketing Project currently under way.

1.11 An important decision taken by Government in November 1981 was toamalgamate the ministries of agriculture and irrig;ation into a singleMinistry for Agriculture and Irrigation (MOAI). Another notableaccomplishment was the establishment, through the ARP, of a strongprocurement capability within the Ministry of Finance and Economic Planningwith the establishment of a Program Procurement Committee (PPC). Plans arenow under way to establish a unit in the MOAI, staffed with competentspecialists, to review and revise ministry accounting, to monitor andevaluate performance of all parastatals, and to extend technical assistance

and evaluate the impact of governmental policies on them. This unit willbe supported under the Blue Nile Rehabilitation Project.

1.12 On the whole, available evidence indicates that physicalrehabilitation efforts and policy reforms have reversed the downward slidein production and productivity. After a further decline in 1980/81,irrigated cotton production increased 59% in 1981/82 compared to theprevious year, and another 21% in 1982/83 compared to 1981/82. Yields havedoubled in the past two years but it should be remembered that yields in1980/81 were at an all time low. Other irrigated crops also have madeimpressive gains in the past two years.

1.13 Gezira makes a major contribution to the national economy and itsrehabilitation would be a significant element of Sudan's program foreconomiLc recovery. During the 1970's it produced about 60% of the nation'scotton,, 35% of its groundnuts, 75% of its wheat and 10% of its sorghum. In1979, its total share in export earnings, largely from cotton, was 47%.Although production has declined on Gezira for the reasons alreadydescribed (para. 1.04), it still has the strongest management of any of theirrigation schemes, and has been less affected than other Governmentinstitutions by the flight of manpower to the Gulf. The reforms summarizedabove have provided the necessary policy conditions for investment of thescale needed to rehabilitate the scheme.

D. Bank Group Role

1.14 Agricultural Credits form a large proportion of total Banklending to Sudan, averaging half the lending through the 1970's, includingsix irrigation projects, three rainfed mechanized farming projects, threesmallholder development projects (two in the south and one in the west), alivestock marketing project, an agricultural research project and theAgricultural Rehabilitation Program. The Bank was involved with thefinancing of the Roseires Dam (Loan 258-SU and Credit 2-SU) completed in1960. A Project Performance Report was completed on the Roseires projectand circulated on July 10, 1974. This was followed up by an ImpactEvaluation Report on the Roseires Irrigation Project (No. 3051 dated June30, 1980). This report conlcuded that the economic rate of return of theProject was 14% and that the net socio-economic impact of the project, forthe country as a whole and for most of the population directly affected,was positive. The use of Roseires storage in the Managil extension of theGezira scheme and in new irrigation under the Rahad Project was alsosupported by the Bank (Loan 258-SU and Credits 364-SU and 364-2-SU).

1.15 Project implementation in Sudan, for agriculture as for mostother sectors, has faced bottlenecks. There has been difficulty gettingkey materials such as cement, fuel and imported farm inputs on time and insufficient quantities because of foreign exchange shortages and transportdifficulties. Disbursements have been slower than scheduled, closing dateshave .Erequently been extended, and gestation periods have been longer thanexpected, leading to a lag in benefits.

- 6 -

CHAPTER II

IHE PROJECT AREA

A. General Description

Climate, Topography and Soils

2.01 The Sudan Gezira is a vast plain lying between the White and BlueNiles, sloping gently from south to north-west; the Project area (Map IBRDNo. 16493) would be the wrhole of the Gezira Irrigation scheme lying in thisplain. The climate is semi-arid with a short rainy season from July toSeptember in which 85% of the annual rain falls. There is a cool drywinter from November to February and a hot summer from April to June. Meanmaximum temperatures are 330C in January and 410C in May, while mean minimaare 140C in January and 250C in June. The average annual rainfall variesfrom around 400 mm in the south to about 200 mm in the extreme north of thearea and varies widely from year to year.

2.02 The soils are fairly uniform, cracking, self-mulching clays whichhave a loose granular surface structure. Although the organic content islow, the physical properties and behavior of these fertile impermeableclays under irrigation make them well suited to good yields. Despite 60years of irrigation, salinity is not a problem.

Production Relations

2.03 Production responsibiLities on the scheme are dividedl betweenSGB, the Central Government and the farmers. SGB determines croprotations and prepares the land. For cotton, SGB is responsible forapplication of fertilizer and pesticides, seed propagation and distributionand ginning. It has 13 ginneries with a daily production capacity of over900 tons of lint. It is responsible for the maintenance of theinfrastructure, which includes a railway network (1,055 km) known as theGezira Light Railway (GLR) used mainly for transporting cotton. SGB isalso responsible for field level water management including the operationof field outlet pipes (FOP) from minor canals. SGB is thus a Large,centrally managed corporation. The Central Government, through theirrigation department of the Ministry of Agriculture and Irrigation(MOAI[I]) is responsible for water delivery, and the operation andmaintenance of headworks and the canal systems.

2.04 Farmers do not own their land but are tenants. The area isdivided into 102,000 tenancies with an average area of about 20 fd. Thesize of a regular tenancy in Gezira was originally 40 fd, but a number oftenancies have been converted to half-tenancies over the years. The areaof the Managil tenancy is 15 fd. In total, about 1.5 million people(nearly 10% of Sudan's population) are dependent on the Scheme for theirlivelihood. Tenants supply or hire the labor, tend the crops, pick seedcotton and transport it to ginnery collection centers. After ginning, it

- 7 -

is handed over to the Cotton Public Corporation (CPC) for export. Othercrops are marketed privately, and tenants have more latitude in theircultivation than for cotton.

2.05 The Joint Account System was in vogue until 1980, and the recentreforms to replace it with an individual account have been described inparagraphs 1.05 and 1.08. A Bank Report issued in June 1982 entitled"Sudan: Incentives for Irrigated Cotton - Progress Towards Reform" (ReportNo. 3810-SU) describes in some detail past and present productionrelationships.

The Tenant System

2.06 The tenant system, designed in the 1920's, has becomeincreasingly unsatisfactory as social and economic changes have evolved.Given the institutional constraints, present average tenancy sizes of 20 fdare generally too small to allow economies of scale through use of capitalintens:ive technology and too large for efficient application of laborintens[ve technology. Enlargement of tenancies is prevented by a legalceiling of 40 fd per tenancy while scope for formal sub-division intosmaller units is limited because tenants cannot legally mortgage, sell orsub-divide their holdings, but must pass them on to their heirs. Tenantscontinue to have little say in what they grow or how they grow it.Inadequate land preparation by SGB and difficulties with irrigation watersupply may have an adverse effect on yields however diligently the tenantdischarges his own responsibilities. Thus for the tenants, the linkbetween effort and output is weakened, while the limited control they haveover production may now be less than their experience and skills warrant.

2.07 Tenancies were originally designed to be worked by the tenant andhis family; but hired labor has always been important on the Scheme.Currently, about 15% of labor requirements are met by family labor, 29% byresident hired labor, and 56% by migrant labor. Sharecropping arrangementsare comnmon for the groundnut crop. Tenant participation in agriculture hasfallen over two generations of rising living standards and bettereducation, and it is estimated that over half of all tenants are now nolonger directly involved in farming. There is need for major structuralreforms in the nature, size and pattern of holding of tenancies. However,this is a sensitive area and considerable study and analysis would beneeded before revision can be proposed.

Service Institutions

2.08 The production responsibilities of SGB and MOAI(I) have beendescribed in para. 2.03. In addition, SGB is responsible for procurementof inputs and preparation of annual budgets which are submitted to theMinister (not the Ministry) of Agriculture, to whom it is directlyresponsible. Desilting and other earthworks are contracted out by MOAI(I)to the Earth Moving Corporation (EMC), a commercially run parastatalattached to MOAI(I). The Agricultural Research Corporation (ARC), a

- 8 -

national body, is responsible for all research conducted on the Gezirascheme and has a research station at Wad Medani. The CPC (para. 2.04),established in 1970, is responsible for cotton marketing and exports. TheRural Water Administration (RWA), under the Regional Ministry of Housing,Construction and Public Utilities, is responsible for rural wratersupplies. The Blue Nile Health Project (BNHP), established under theMinistry of Health (MOH) with World Health Organizatioa (WHO) assistance in1979, coordinates efforts to control the major water related diseases onthe Gezira and Rahad schemes. The Sudan Public TelecommunicationsCorporation (SPTC) is responsible for the telephone network throughout thecountry.

2.09 A number of factors have combined to place heavy stress ontrained manpower employed on the scheme. These include the country-wideskilled manpower shortages; the declining pre-eminence of SGB as a firstchoice employer; a backlog for foreign training resulting from thecountry's increasing foreign exchange difficulties; an unusual age profileof SGB staff in which a large number of staff would reach pensionable ageduring the proposed Project period; the change tc the system of individualaccounts; and new skills needed for new equipment and practices beingintroduced. Training expertise and training mechanisms within SGB areInadequate to handle the large volume and wide range of training requiredat all levels.

B. Agriculture

Production and Yields

2.10 The main crops are cotton, wheat, groundnuts and sorghum. In1981/82, the total cropped area was 1.3 million fd, of which 435,000were devoted to cotton, 247,000 to wheat, 344,OOC to sorghum and 262,000to groundnuts. Annex 5.1 illustrates changes in production, yields andarea during the period 1972-82. The total area under cotton declinedsubstantially because of increasing management, physical and financialconstraints. Sorghum and groundlnut areas, depending less on SGBinterventions and being crops for which tenants could obtain attractiveprices, increased substantially. The wheat area also increased as part ofthe Government's import substitution drive. Yield declines were dramaticfor cotton, less so for the other crops. The recent improvem,ents in yieldsare worth notice and reflect the impact of policy reforms and investmentunder the ARP (paras. 1.06 to L.1l).

Farming Systems

2.11 Cotton, groundnuts, wheat and sorghum are cultivated in afour-course rotation including a fallow in Gezira and a three-courserotation without fallow in Managil. Vegetables are grown on 40,000fd. Though fodder is not included in the rotation, substantial areas(40,000 fd) are grown through summer irrigation. For operational purposes,

- 9 -

the scheme is divided into 107 blocks, under 14 groups. Crops are grown on90 fd fields, known as "numbers", each divided into five feddan fieldsknown as "hawashas". SGB provides land preparation services, fertilizersand treated seed for cotton and wheat. Tenants are responsible for landpreparation for the other crops.

2.12 Current input application rates are low for wheat, groundnuts andsorghum (para. 5.03). Herbicides were introduced on a commercial scale in1979/80, mainly for cotton, and more than 0.5 million fd were treated in1981/82. Private contractors carry out pesticide application by aerialspraying. Government has generally regarded allocation of foreign exchangefor these imported inputs as a high priority, though delays and shortageshave hampered field operations on occasions.

Farm Machinery

2.13 For cotton, mechanization is limited to land preparation. Forwheat, land preparation, planting and harvesting are all done mechanically,with the private sector providing most of the services. Sorghum andgroundnuts are cultivated manually, except for land preparation which ismechanized and usually carried out by the private sector. Harvesting andthreshing of sorghum is done manually. Attempts are being made tomechanize planting for cotton and harvesting for cotton and groundnuts, butinvestments in these areas have so far been small.

2.14 The Agricultural Engineering Department of SGB has a fleet of 80crawlers of 125-150 kw, 100 wheel tractors of 110 kw, and 280 tractors inthe 50-60 kw range, together with associated implements. This fleetincludes 25 crawlers, 188 tractors and associated implements procured underthe ARP. Estimates on the number of private sector tractors vary.Tractors owned by scheme inhabitants may be as many as 1,000; however, theyare frequently sent to the rainfed areas where tractor hire rates are moreattractive than on the scheme. Lack of fuel has hampered efficientoperations, and shortage of private sector tractors has seriously delayedfield operations. It is estimated that only 350 tractors may actually beavailable on Gezira at present. However, the private sector fleet strengthis being augmented by 225 tractors supplied to tenants by the AgriculturalBank of Sudan. The credit arrangement restricts the use of these tractorsto the scheme area and has been extended with the help of Frenchassistance. While there are 350 to 400 combined harvesters available, fuelshortages and high hire rates resulted in some of the wheat crop not beingharvested in 1982.

Research and Extension

2.15 ARC is responsible for the development and testing of newvarieties related to Gezira. SGB has a small extension department whichhandles advisory services, demonstration plots, "contact" farmers, and thepreparation of literature. However, there are only 11 extensionofficers working at group level. Field and block inspectors are not

- 10 -

trained in extension, and the link between applied research and thedevelopment of new farming systems and cultivation techniques is weak.This has seriously affected yield improvement at farm level. ;For instance,cotton yields (1,300 kg/fd of seed cotton on experimental stations) average400 kg/fd on tenants' fields. Likewise, wheat yields (1,500 kg/fd onexperimental stations) average 340 kg/fd in Gezira, while groundnut yields(2,200 kg!fd on research stations) average 700 kg/fd on the scheme. Again,sorghum yields under field conditions average 500 kg/fd, though thepotential under irrigation is as high as 2,000 kg/fd. There has beenlittle work done on development of improved varieties for non-cottoncrops.

2.16 Low yields for cotton are caused by uneven seeding rates andtardy introduction of new varieties. For wheat, they arise from lateplanting, irregular stands, weed and pest infestat:ion, and the fact thatheat-tolerant varieties adapted to the short growing season are not used onthe scheme. For groundnuts the main problems are poor land preparation,too wide spacing, inadequate watering, shortage of fertilizers, weedinfestation and lack of development of new varieties. For sorghum, grownextensively with few inputs and little attention, land preparation is poor,irrigation neglected, weeds are abundant and the crop lacks nitrogen,resulting in yields which are very low for an irrigated crop. All theseproblems need to be addressed through an improved applied research andextension program.

Livestock

2.17 The livestock in the scheme are owned by tenants and seasonallabor. While some herds remain on the scheme, others move in and out fromthe rangelands outside the scheme, which have deteriorated due to over-grazing. Livestock owned by the nomads cause considerable damage,particularly during the dry season. The level of animal husbandry isgenerally low. On the average, scheme tenants own eight livestock unitsbut data for livestock on the scheme are unreliable. Unofficial figuresestimate the total heads crossing the scheme on an annual basis at half amillion units. Despite the large number of livestock units (1.2 million)dependent on the scheme, the problem of better integration of livestockinto the farming system has yet t1o be addressed. The animals feed on cropresidues, stubble and weeds grown on canal banks. Fallow lands are usuallyirrigated to encourage the growth of weeds for grazing purposes. The valueof livestock as an agricultural enterprise increases in blocks close tomain towns where it is easy to market milk, meat and poultry. There isgood potential for improving livestock production through betterintegration within the cropping system, and upgrading the veterjinaryservices. SGB has recently recognized the importance of livestock and hasestablished an Animal Production Department. The information base for thissub-sector has not yet been adequately developed.

- 11 -

Credit

2.18 SGB provides practically all services and inputs for cotton.The cost of these items is recovered after harvest and credit is thusextended for them. SGB also provides cash advances for labor operationsperformed through tenants, which again is adjusted when crop proceeds arepaid to tenants. For other crops, tenants rely on the "sheil" or privatemoney lending system, which provides timely credit albeit at high rates ofinterest. Medium term credit is extended to tenants for purchase ofagricultural machinery by the Agricultural Bank of Sudan (ABS) which has abranch in Wad Medani. No comprehensive review of credit operations on thescheme h-ias ever been carried out.

C. Irrigation and Drainage

Diversion and Storage

2.19 Water for the Scheme is diverted mostly by gravity from the BlueNile at Sennar (Map IBRD No. 16494). Because the flow of the Blue Nileduring the months of December to May is insufficient, storage capacity isrequired to meet the irrigation demands of Gezira and other schemes(920,000 fd) on the Blue Nile. Storage is provided on the Blue Nile atSennar (net capacity 0.57 milliard m3) and at Roseires (net capacity 2.58milliard m3) some 200 km upstream; this is adequate for present needs.While the live storage capacity at Sennar has now attained equilibrium,that for the Roseires dam is being reduced at the rate of 20 millionm3/year. Hydropower is generated at both dams but the reservoirs areoperated strictly to irrigation requirements. Both dams were inspected in1982 by their original designers and certain recommended remedialmaintenance is to be carried out.

Pumping Stations

2.20 Four pumping stations draw water directly from the Blue Nile tocommand 87,000 fd and nine stations divert water from the gravity canals toserve high lift areas totalling 105,000 fd. Most stations requirerehabilitation. The pumping station at Mezagila would need replacement.

Irrigation System

2.21 Water, conveyed by two main canals with a total nominal capacityof 31.05 million m3/day (347m3/sec), is distributed through a system ofbranch, major and minor canals and water courses known as Abu Ishreen (AbuXX) and Abu Sitta (Abu VI)1/. The Abu VI are maintained and operated by

1/ Arabic: literally "father of 20" and "father of six" respectively forcourses governing 20 or 6 field channels. The Abu XX conveys water tothe "numbers" while the Abu VI caters to the "hawashas" (para. 2.11).

- 12 -

the tenants. Flow from minor canal to Abu XX is regulated by field outletpipe (FOP). Minor canals and Abu XX are operated by SGB whith also carriesout the maintenance of Abu XX, Maintenance of the minor canals andoperation as well as maintenance of the rest of the system is theresponsibility of MOAI(I).

2.22 The design of the system is based on night storage in minorcanals and day field application using angaya (basin) system with handconstructed bunds. It is a well designed system allowing precise controland measured supply to minor canals. In recent years, mainly as a resultof financial constraints, the maintenance of the system and timelyreplacement of physical resources declined leading to a reduced efficiencyof the system. The main problems are. (i) a completely broken downtelecommunications system witlhout which water indenting and control hasbecome extremely difficult; (iLi) deterioratiorn of canal regulators andstructures which need repairs and in some cases complete replacement (thevalves and gates of most of the FOPs are missing and have to be replaced bysuitably designed gates); (ii:i) accumulation of a backlog of silt in canalsdue to inadequate provision oi- maintenance funds by the Government; (iv)serious weed problems in cana:Ls and reluctance of laborers to weed thecanal because of implicit heaLth hazards;; and, (v) inefficiency caused bythe split in responsibility on minor canals, i.e. operations by SGB andmaintenance by MOAI(I). However, if restored to its original condition andoperated and maintained adequately, the system could be experted to workweii, as it did in the past.

On-Farm Water MIanagement

2.23 The field irrigation system is well designed; the topography andsoils are well suited to efficient irrigation and there is no pressing needfor sub-surface drainage. Howqever, poor on-farm water management is therule throughout the scheme. This is caused mainly by: (i) breach ofirrigation regulations includiing widespread night irrigation (contrary todesign) as a result of weak control over minor canals; (ii) inadequateattention by farmers to ~.ield irrigation, particularly to surface drainageduring heavy rains; and (iii) poor upkeep of both Abu XX and Abu VI. Thepresent situation results from lack of capability X thin SGB to fosterirrigation ,Uiscipline and to educate the farmers in efficient watermanagement techniques. Measures to remedy this are called for.

Drainage

2.24 The drainage system maintained by MOAI(I) se:.-ves only to removethe surface runoff or irrigatiLon wastes. The original drainage systemproved to be reasonably effective but the whole system has decayed becauseof inadequate raaintenance. This has resulted in an increase in thefrequency, duration and seriousness of flooding in the fniumbers." As aresult, cultivation operations and planting schedules are disrupted in therainy seasons causing a fall in yields. Poor drainage also creates serioushealth hazards

- 13 -

2.25 Most of the inverted syphons which convey drainage waterunderneath a canal are structurally sound but heavily silted. Severalhundred road crossings on major drains and check weirs at the outfall ofevery minor drain need to be renewed or reconstructed. At five locationswithin ithe Gezira scheme, drains discharged into large local depressionsfrom which water was pumped into nearby canals by means of permanentpumping stations. All five stations have broken down and mobile pumps arebeing used temporarily.

D. Infrastructure

Roads

2.26 The road system within the Gezira scheme is extensive; itcomprises some 18,000 km of roads along the canal system and 30,000 km offarm access tracks. However, all roads are unsurfaced dirt roads and arealmost impassable when wet. Lack of adequate maintenance of drains anddeterioration of roads which run alongside these drains have been mutuallyreinforcing. Increasing population and use of motor vehicles have resultedin much heavier traffic than the road system was designed for. There is aneed for intensive maintenance of roads between major population centers,and for upgrading the heavily trafficked road between Gezira and Managilinto an all-weather road.

Gezira Light Railway (GLR)

2.27 Transport of goods to and from Khartoum and Port Sudan is bySudan Railways or by road. Within the scheme they are moved by the GLR,whose network covers about 75% of the scheme area. It is operated by SGBand conprises 900 km of narrow gauge track serving 119 sidings and cottoncollection centers. Between 1976/77 and 1980/81 the GLR transported anaverage of 126,000 tons of inputs, 50 million litres of fuel, 237,000 tonsof seed cotton and 555,000 tons of foodcrops annually. In fact, itpresently carries half the volume of goods carried by the main SudanRailway network.

2.28 However, of a total stock of 101 locomotives, only 51 areserviceable. There are 1,844 wagons of which over 400 are out of servicelargely because of a shortage of wheels and axles. New locomotives andtyres for 160 wagons are expected to be provided under the ARP (para.1.08). There are some weaknesses in the track, and certain branch lineshave rails of less than the standard 17.4 kg/m; this increases the wear onwagon wheels.

Telecommunications

2.29 The original telephone system, the essential means ofcommunication on the Gezira scheme, has broken down, except for a fewplaces along the main railway line. As a consequence, for the control of

- 14 -

irrigation water supplies, management of field operations andadministrative affairs, messages are conveyed by motor vehicle: this iscostly and inefficient. Private radio networks have been established bySGB and MOAI(I) but sound quality is poor, operators are lacking and thereis no link between networks.

Ginneries

2.30 There are 13 roller ginneries under the control of SGB, with adaily capacity of 19,400 kantars of ELS cotton. Four factories aremechanized and nine labor-intensive. Recently there have been frequentfactory stoppages from equipment breakdowns and power cuts. Labor has beenin short supply and productivity has been low in the labor-intensivefactories. Lack of pre-cleaning and humidification equipment has loweredcotton quality. With the introduction of MS cotton on the scheme priorityshould be given to establishing saw-gins.

Handling and Storage

2.31 There are handling problems with seed cotton both at fieldcollecting centers and in the ginning factory yards. The storage areaswithin the ginning sites and access routes from these areas to the ginningfactories are not surfaced; the seed cotton sacks pick up sand and dirtand this lowers the quality of the cotton lint. The manual stacking andstorage of cotton lint bales, cotton seed and fertilizer in the open is notefficiently organized. Fertilizer and insecticide storage facilities arebeing extended under the AR:P and would be adequate; however, fuel storagefacilities remain insufficient.

Vehicles

2.32 SGB maintains more than 1,000 vehicles, including pick-ups,cars, buses, lorries and tankers. The economic life of a vehicle underGezira conditions is five years, and half the Gezira fleet is overaged.MOAI(I) operates a fleet of 150 vehicles, of which only one-third areoperational. Vehicles have been procured under the ARP forboth these fleets, but in the absence of a satisfactory public transportsystem, some further augmentation of fleet strength is essential forefficient operation of the scheme.

Workshops and Maintenance Facilities

2.33 The SGB workshops are situated in seven different locations. Inaddition there are facilities at all Group headquarters. The MOAI(I)maintains scheme workshops at Wad Medani and Gorashi which carry outmaintenance and repair work on vehicles, pumps and plant and where certainspare parts are manufactured. Field maintenance is carried out by mobilecrews at the main irrigatiorL pumping stations.

- i5 -

2.34 Workshop buildings of both MOAI(I) and SGB have insufficientworkspace or standing room area. Many machines are obsolete. Tools arelacking and in the absence of standby generators, machines cannot be usedduring the frequent power cuts.

Housing and Utilities

2.35 Housing is provided for SGB and MOAI(I) staff since many arestationed in areas where rented accommodation is not available. Utilitiesare satisfactory at Managil but less so at Gezira, particularly for lowergrade staff and many homes lack water, electricity and sanitation. Housingfor GLR maintenance gangs is insufficient but is in good condition. Thereis also a shortage of suitable housing for water "gaffirs" (canal gatemen).

Health and Water Supply

2.36 The development of irrigation has adversely affected the healthof the population on the scheme. Malaria was confined to the rainy seasonbefore irrigation was introduced; now it is endemic throughout the year.Schistosomiasis, previously absent, has become a serious health menace.Its prevalence has risen from 9% in the late 1940's to present levels ofover 50%. While the prevalence of schistosomiasis continues to climb, theincidence of malaria is under control and is presently low.

2.37 Schistosomiasis is a parasitic worm infection of humans requiringan intermediate snail host for spread of the disease to other humans.Transmission of the disease occurs through the shedding of the eggs of theparasite through feces and urine from infected persons who use canals aslatrines. The canals, particularly when overgrown with weeds, provide anideal breeding ground for snails. Poor drainage compounds the problem.The disease is transferred to those who come in contact with the watercourses. Safe water supply is provided to 75% of the villages in theschem,e area; however, there are still 800 smaller villages without safedrinking water and dependent on the canals for drinking and washing. Inthe absence of sanitation facilities, defecation into canals is common.Lack of clean water supply is also partly responsible for the highincidence of diarrheal diseases. Manual weeding of canals exposes laborersto particularly serious risks of schistosomiasis infection.

CHAPTER III

THE PROJECT

A. Project Description

3.01 Over a five year period the Project would be expected to raisecrop yields and production and thereby increase foreign exchange earnings.The P'roject would also be expected to broaden the existing information base

- 16 -

in preparation for restructuring of production relations and forinstitutional change on the scheme. The expected phasing of implementationis shown in Annex 1 and Chart VI. The components are described below.

B. Project Components 2/

Irrigation System (US$21.6 million)

3.02 Canal Regulators arLd Structures (US$14.3 million). As most ofthe canal regulators are still in working condition, the proposed Projectwould focus mainly on repair of damaged and worn out structures and gatesin addition to overdue maintenance. However, replacements are also neededand would include 16 roller sluice gates on main canal cross and headregulators and 66 on branch a,nd major canals; and 680 steel pipes and 475regulator doors for the night storage weirs and pipe regulators on theminor canals, the most widespread control structures on the schemes. Fundswould be provided to install vertical slide gates at all 24,000 FOPs. TheProject activities would include installation of 2,000 water level gaugesand repairs to masonry, bridge parapets, stone pitching and earthworks forbridge ramps.

3.03 Canal Maintenance (US$7.3 million). The present program of siltclearance in the irrigation canals carried out by EMC under contract withMOAI(I) is satisfactory and would continue to be financed by Governmentindependently of the proposed. Project. To facilitate annual maintenance ofcanal banks and drains by MOAI(I), six loaders, 18 tipper lorries and 12elevating graders would be provided under the Project (US$3.6 million).Manual weeding of canals entails health hazards and alternative systemswould have to be devised. Mechanical weed clearance by weecl cuttingmachines is currently being undertaken on two pilot areas of: 50,000 fd eachunder a Netherlands Government Technical Assistance Program Initialresults appear promising but the costs are yet to be evaluated. TheProject would support research (US$2.2 million) into chemical andbiological weeding methods, using herbicides and Chinese grasscarp. Theresults would be evaluated during the Project mid-term review (para. 3.60)and the most appropriate method introduced. In the meantime, the presentmanual system would continue to operate. The Project would providetechnical assistance for upgrading the irrigation operation and maintenanceorganization and overseas training for MOAI(I) staff (US$0.4 million).Incremental maintenance costs would amount to US$1.1 million.

Drainage System (US$23.0 million)

3.04 The proposed Project is expected to restore the drainage systemsto original design standards. The drainage worlks would consist of

2/ All amounts in this secticn are shown at baseline cost in March 1983prices. Incremental operatirg costs are given for the five year period.

- 17 -

excavation of silt (3.0 million m 3) in 1,480 km of major drains, excavationof 190 km: (1.2 million m3) of new main drains to complete the system andreconstruction of 4,000 km of completely silted-up minor drains to standarddesign sections. Five new drainage pumping stations would be constructedto replace the existing derelict stations and mobile pumps would beprovided to serve areas where installation of gravity drainage isimpossible or uneconomic. Two new syphons would be constructed, and sixhundred road crossings along major drains would be installed. Incrementalmaintenance costs (US$2.7 million) are included in Project costs.

Pumping Stations (US$6.5 Million)

3.05 In order to improve water supplies to areas dependent uponpumping stations, provision would be made for: (i) the rehabilitation ofpumps (total capacity 51.2 m3/sec) at Wad Haddad East and West, Tambul, HagAbdulla, Shawl 1 and 2, Rabaa, Gundal and Guneid pump stations; and (ii)replacement of the existing Mezagila pumping station by a new electricallydriven pumping station (12.4 m3/sec).

Sennar Dam (US$4.2 Million)

3.06 The repair and maintenance works (US$4.2 million) at the Sennardam would be financed as part of Project activities. This work includesrepair of gates, overhauling of cranes, and upgrading of mechanicalequipment and workshop facilities. Assurances were obtained from GOSduring negotiations that an action program would be prepared no later thanDecember 31, 1983, satisfactory to IDA, for the inspection and maintenanceof Sennar dam.

Agricultural Machinery (US$12.3 million)

3.07 The Project would provide required farm machinery for SGB toenable it to carry out prescribed farm operations for cotton and clearingof Abu VI and Abu XX on the scheme. The Project would provide the servicesof an internationally recruited agricultural machinery specialist (US$0.3million) to improve performance in this area. Experimentation on improvedcultivation techniques would also be carried out, including gradualreplacement of disc and root ploughs and ridges by chisel ploughs.

3.08 A total of 150 tractors (55kw) would be provided to SGB (inaddition to the 98 tractors provided under ARP) at a cost of US$2.5million. Farm implements, mainly disc ploughs, ridgers, levellers andstrippers would also be provided (US$7.2 million). Incremental machineryoperating costs of SGB would amount to US$2.3 million.

Extension, Farmer Training and Research (US$5.6 million)

3. 09 Project staff would assist SGB and ARC to develop and introduceimproved production technology. Adaptive research would concentrate onimproving local cultivation practices and the introduction, where possible,

- 18 -

of high yielding varieties suitable to the main production zones. Inaddition, ARC would develop agronomic research programs for the improvementof the above crops (Annex 6). This would be supported by two pilot schemesin which on-farm trials would be carried out on selected crops (US$1.6million). The pilot schemes would cover two blocks, Al Gadid and AbdulRahman, in the Musallamya and Almunsi groups. Equipment and expenses forARC and local research stations would be provided together with eight 55 kwand four 100 kw tractors, implemtents and laboratory equipment (US$2.2million). Incremental operating, costs of ARC would amount to US$1.3million.

3.10 A training and visit extension system would be introd[uced on aphased basis in two groups of the Gezira Scheme through restructuring theexisting inspectorate system. The field inspectors would assume most ofthe extension responsibilities tnder the supervision of an Exte!nsionCoordinator (para. 4.12). Provision would be made for overseas training ofeight field inspectors besides the Extension Coordinator, a training centerwith office for the extension department of SGB and for training of fieldstaff through 30 training courses conducted over the five yearimplementation period. Project activities would include regular trainingof field staff, establishment of stronger links wit:h local researchstations, and a continuous flow of relevant messages and fielddemonstrations. Farming communities would be reached through samads (localleaders) and "contact" farmers. Again, the Project would strengthen andimprove farmer education and training services by supplying the ExtensionDepartment with new audio-visual and printing equipment, strengthening itsagricultural information and education staff, and improving the transfer ofagricultural knowledge to both tenants and field workers through revampingthe community television network operating from Wad Medani.

3.11 Project activities are expected to strengthen the SeedPropagation Department of SGB. The seed quality of cotton, wheat, sorghumand groundnuts would be improved through provision of equipment andstrengthening of the role of ARC in field operations. Technical assistancewould be provided and overseas training would also be available for fourseed specialists (US$0.5 million).

Workshops and Fuel Supply (US$16.3 million)

3.12 Project activities would include upgrading and extending thefacilities of SGB and MOAI(I) workshops located throughout the scheme.Group tractor service centers would be established and group servicecenters extended. Financing would be provided for extension andhardstanding to existing workshops (US$2.8 million), equipment and sparesfor all workshops (US$10.7 million), standby generators and fuel storage(US$2.3 million).

3.13 Assistance in the form of overseas training, an applied researchunit and an internationally recruited workshop management adviser wouldalso be provided (US$0.3 million). Incremental operating costs wouldamount to US$0.2 million.

- 19 -

Motor Vehicles (US$19.0 million)

3.14 Motor vehicles would be provided to ensure mobility of fieldstaff and supervision and delivery of services to farmers. Estimates ofrequirements for SGB comprise 211 light and four-wheel drive vehicles, 61two-wheel drive vehicles, seven lorries (7 ton), 15 fuel tankers and ninefire lorries. Motor vehicle requirements for MOAI(I) would be 75 light andfour-wheel drive vehicles and 26 lorries (7 ton). Six lorries (7 ton) andfour light mobile maintenance (1/2 ton) units would be provided for RWA.

Roads (US$4.6 million)

3.15 Spot repairs and deferred and annual maintenance on 6,000 km ofroads which are used frequently by lorries (US$3.2 million) would becarried out. Most of these roads lie along canals or drains. US$1.4million would be provided for procurement of road graders.

Telecommunications (US$11.8 million)

3.16 An independent network consisting of three telephone exchangesand a multi access rural system would be installed for the use ofSGB/MOAI:(I). The network would have a capacity of 1,500 lines. Theexisting exchange at Barakat would be expanded to 1,000 lines and switchingcenters installed at El Gorashi and Abu Usher. The network would be linkedto the public system at Wad Medani through Barakat, and would be integratedwith it as the SPTC masterplan is implemented. Funds (US$0.1 million)would be provided under a PPF for the detailed survey necessary todetermine final design and sources of power for each subscriber. Thenetwork would be owned, operated and maintained by SPTC and the cost ofservices paid for by SGB and MOAI(I).

Gezira Light Railway (US$5.0 million)

3.17 Within the Scheme, GLR would remain the prime transporter ofcotton and inputs. The Project would provide for:(i) three motorized andthree hand pump trolleys, two elevating motor graders and hand tools forcorrective maintenance of tracks (US$0.7 million); (ii) replacement of 38km of 12.4 kg/m track by 17.4 kg/m rails(US$0.9 million); (iii)rehabilitation of the wagon fleet by replacing worn-out wagon running partsand providing 20 new tanker wagons (US$2.2 million); (iv) re-engining of10 Hunslet McLaren locomotives (US$0.6 million); and (v) technicalassistance for GLR to improve operations, track maintenance and workshopcapabilities (US$0.6 million).

Ginneries, Cotton Handling and Storage (US$21.3 million)

3.18 Three (Nos 4,5,6) of the nine labor intensive factories would befully mechanized (US$6.7 million). This would increase total ginningcapacity of these factories by 106 bales per day. These three and theexisting mechanized factories (Nos.10,12,14) would be fitted with

- 20 -

pre-cleaning and humidification equipment to raise lint grades (US$1.6million). Factory workshops and factory and yard infrastructure would beimproved (US$1.9 million). Two new saw-gins would be installed to handlethe increased output of medium-staple cotton on the scheme as well as aseed dressing plant (US$7.5 million). Funds would be provided under a PPFfor preparing specifications and engineering requirements for ginneriesworks to be implemented in Project year 1 (US$0.1 million).

3.19 Improved storage and handling facilities would also be providedfor cotton awaiting ginning. Hard surfaces would be constructed (US$1.3million), equipment would be provided for mechanical handling (US$1.8million) and provision made for incremental operating costs of US$0.3million.

Schistosomiasis Program (US$6.0 million)

3.20 The Project would include measures to reduce the prevalence andintensity of schistosomiasis infestation. Better water managementpractices would be introduced (paras. 3.02 and 3.03) and safe domesticwater supplies installed (para. 3.21). Major health education measureswould be launched. BNHP (para. 2.08) would mount a program to kill snailsthrough the repeated application of chemicals (focal mollusciciding) atsites in canals and Abu XX's where people frequently come in contact withwater. Concurrently, the population would be given mass treatment(praziquental) tablets with a clare rate of about 90%. The program willstart in one area of the scheme initially, but would be extended during theProject period to cover approximately 70% of the scheme. Mass chemotherapywould be followed by active scresening annually and treatment of childrenamong whom prevalence is high. Passive case detection and treatment wouldbe extended to approximately 70% of the population on an ongoing basis.These measures should reduce the prevalence and transmission of thedisease. The praziquental tableats would cost US$3.5 million, chemicalsUS$1.9 million and vehicles US$0.2 million. Incremental operating costswould amount to US$0.4 million.

Rural Water Supply and Sanitation (US$15.3 million)

3.21 The Project would provide improvements and extensions to ruralwater supply systems in the scheme area under the jurisdiction of the RWA(para. 2.08). Sixty already drilled and capped wells would be providedwith pumps and storage tanks. One hundred slow sand filter treatmentplants in the Managil Area would be rehabilitated through improvement inplant operating controls, expansion of filtration capacity and constructionof larger sedimentation basins. One hundred and forty five borewellsequipped with handpumps would be provided to unregistered villages. Fourregional maintenance workshops wzould be constructed and equipped, andlorries andsmall mobile maintenance units provided.Incremental maintenancecosts would amount to US$0.8 million. Project staff would ass:ist theactivities of BNHP in community participation and sanitation byestablishing four slab manufactuiring units at regional maintenanceworkshops of the RWA. These would provide 50,000 latrine slabs forfamilies in the Project area.

- 21 -

Staff Housing and Utilities (US$9.3 million)

3.22 Funds would be provided for essential additional housing.Priority would be given to field staff. A total of 24 T-I houses, 54 T-2houses and 21 T-3 houses would be provided for SGB staff (US$3.4 million).New MOAIVI) housing would comprise two T-I houses, three T-2 houses, 15 T-3houses and 50 canal gatemen houses (US$1.4 million). These wouldaccommodate staff at the new MOAI(I) sub-division of Wadel Ber and somewater "gaffirs." Other improvements would be made through provision ofelectricity, water supply and sanitation to existing staff housing (US$4.3million), while incremental maintenance costs would amount to US$0.2million.

Rehabilitation Project Management Unit (US$4.4 million)

3.23 Under the Project, a Rehabilitation Project Management Unit(RPMU) would be set up in MOAI (paras. 4.02 to 4.04) and a ProjectProcurement Committee under MOFEP. The Project would fund the technicalassistance positions in the Unit and supporting staff and services. Theoffice would be established on September 1, 1983 using a PPF (US$0.1million).

SGB Management Information System (US$3.9 million)

3.24 The Project would provide data processing equipment andfacilities and vehicles (US$1.7 million) for SGB's Management InformationSystem to be strengthened under the Project. The incremental operatingcosts including technical assistance consisting of three specialiststotalling US$2.2 million would be provided. Technical assistance costswould be initially met by a PPF advance (US$0.1 million) and assuranceswere obtained from GOS at negotiations that an action program, acceptableto the Akssociation, to strengthen existing systems would be finalized nolater thaan September 30, 1983.

Training and Other Technical Assistance (US$6.0 million)

3.25 The Project would strengthen training capability within SGB andMOAI(I) and provide training for most levels of SGB and MOAI(I) employeeson the scheme. The Project would fund the services of an internationallyrecruited training specialist to assist SGB management in implementingtraining programs described in Annex 10. Most training of lower levelpersonnel, including the 2,000 workshop staff, 1,800 water gaffirs, 1,200agricultural machinery operations, 700 clerks, and 750 stores andaccounting staff would be through in-house training programs. There wouldbe a special focus on supervisory and management training to take accountof the unusually high age profile of existing SGB senior staff. Wheretraining cannot be provided through suppliers contracts and Sudanesetraining facilities are not available, training and study tours would beprovided abroad, especially in engineering (electrical, mechanical,irrigation, telecommunications and railway), water management, agriculture

- 22 -

and accounting. Additional training facilities would be provided toaccommodate Project needs. Funds would be provided under a PPF forengagement of a training speciLalist for three months to draw up a detailedtraining program based on an analysis of job definitions and tasksnecessary to achieve Project objectives. Assurances were obtained duringnegotiations that the detailecd program would be submitted to IDA for reviewno later than September 30, 1983.

3.26 The Project would strengthen SGB's media production capability tosupport information and training programs, and would help local traininginstitutions through their involvement in project training activities. TheProject would also provide for carrying out of on-farm water managementtests and through a PPF fund l:he continuation of the on-farm watermanagement consultancy carried out at present at Rahad under the RahadIrrigation Project 3/ (US$0.2 million). The latter consultancy hasrelevance for the Gezira because of the similar geo-climatic conditions andtenancy arrangements in both areas.

Studies (US$2.4 million)

3.27 The aim of the studies component (Annex 9) would be to providethe information base and condtuct the policy analysis necessary to considerlong term structural changes in the existing tenurial and production systemof the Gezira scheme. After a desk study on existing information (financedby a PPF), an initial survey covering about 750 households aid an intensivesurvey covering about 200 households would be carried out over a cropyear. This would provide the farm level data base necessary for additionalspecialized studies on the tenancy system, credit, marketing, livestock andagricultural machinery use. Policy analysis wouLd be completed by projectmid-term review (para. 3.60), planned for end 1986. The project would alsoprovide funds for preparation of a modernization program for the Gezirascheme. The studies would be coordinated by an :internationally recruitedagricultural economist in the RPMU and would be carried out in accordancewith terms of reference and contractual arrangements with individuals andinstitutions acceptable to IDA.

C. Status of Engineering

3.28 Basic maps and photographs of the Project area are available atthe Sudan Survey Department. The whole irrigated area is mapped at a scaleof 1:10,000 with 0.5 m contour interval and spot height accuracy of 0.1 m.Detailed drawings of dams, headworks, pumping stations and all majorstructures are also available. The needs and design requirements forrehabilitation work for canal regulators and structures have been preparedby the Consultants. Provision has been made under the Project to carry outthe final designs and tender documents for the proposed drainage

3/ Credit 364-SU and 364-2SU, closed on December 31, 1982.

- 23 -

improvement. Consultants (Coode and Partners, UK) carried out a detailedinspection of the Sennar dam before preparing the requirements for theremedial works of the dam.

3.29 The specifications for office buildings and houses are based onstandard GOS designs. The proposals for renovation of existing ginnerieswere prepared by the Consultants in adequate detail. Funds would beprovided under a PPF for preparing specifications and engineeringrequirements for the new saw gins and works to be implemented in Projectyear 1 (para. 3.18).

3.30 The design for the telecommunication and rural water supplysystems, prepared by consultants, were modified by IDA specialists duringappraisa:L. Further design of the telecommunication system would befinanced by a PPF.

3.31 The general specifications for agricultural equipment, machineryand motor vehicles, prepared by consultants, were reviewed and modifiedduring appraisal. Detailed specifications are being prepared by SGB andMOAI(I) and would be reviewed by the Project Procurement Committee (para.4.04) before inviting bids. This task has been facilitated by theexperience gained during the recent ARP procurement operations.

D. Cost Estimates 4/

3.32 Total Project cost is estimated at US$263 million (LSd 399million) with a foreign exchange component of US$150 million (LSd 227million) or 57%. Taxes and duties amounting to US$37 million (LSd 56million) or 14% are included. Project investment cost would be US$216million (LSd 328 million) while incremental operating costs would amount toUS$47 million (LSd 71 million). Baseline Project costs (excluding physicaland price contingencies) are US$199 million (LSd 258 million). Estimatedcosts are summarized in Table 1.

3.33 The cost estimates are based on June 1982 prices updated to endMarch 1983 estimated baseline price levels and are derived from recentquotations and appraisal estimates. Physical contingency rates on Projectcomponents are 10% on all items, except for weed research (part of theirrigation system component), earthworks for the drainage system, roadupgrading, and certain engineering work to be carried out for the GLR. Thephysical contingency rate in these cases is estimated to be 15%.

4/ Current cost estimates reflect anticipated adjustments in the value ofthe Sudanese pound against the United States dollar (Annex 3.1).

- 24 -

Table 1

SUDANBEZIRA REHABILITATION PROJECT

PRI3ECT COST SUMMARY

(LSDI Million) 'USS Million)

% of ; ofForeign Z of Total Foreign X of Tot2l

Local F3areisn Total Exchange Base Costs Local Foreign Total Exchange Base Cos5t

A, IfRRIGATION 13.9 14.2 2861 50.6 10.° 10.7 10.9 21.6 50.6 10.9P. DRAINAGE SYSTEM 15.3 14.6 29.9 48.8 11.6 11.8 11.2 23.0 48.8 11.6C. PU5HFING STATIONS 2.6 5.9 8.5 69.1 3.3 2.0 4,5 6.5 69.1 3,3D. SENNAR DAM 2.2 3.3 5.5 59.4 2.1 1,7 2.5 4.2 59,4 2,1E, SEB AGRICULTURAL MACHINERY AND ERUIPHENT 2.9 13,1 16.0 82,0 6.2 2.2 10.1 12.3 82.0 6.2F, EXTENSION,FARMER TRAININO? AND RESEARCH 2.7 4,5 7,2 62.B 2,6 2.1 3.5 5.6 62.8 2.),Gl WOR'KSHOPS AND FUEL SUPPLY

SGE 3,9 8.7 12.6 69.2 4.9 3.0 6.7 9.7 69,2 4-9IRRIGATION DEPARTMENT MOAI 3.6 5,0 8.7 58.0 3.4 2.8 3,9 6.7 58.0 3,4

Stb-Total WORKSHOPS AND FUEL SUPPLY 7.5 13.7 21.2 64,6 8.2 5.8 10.5 16.3 64.6 8t2H. VEHICLES

SCB 10,0 7,5 17.6 42.8 6.8 7,7 5,F 13.5 42.8 6 i

IRRItATION DEPARTMENT MOAI 4.1 3I1 7.2 43.4 2.8 3.1 2,4 5.5 43,4 2.5

Sub-Tclt-al VEHICLES 14.1 10.6 24t7 43.0 9.6 10.8 8,F2 19.0 43.0 9,6I. ROADS 72. 3.8 6.0 62.7 2.3 1.7 2,9 4.6 62,7 2.3J. TELECOMMUNICATIONS 4+1 11.2 15.3 73,3 5+9 3.1 8,6 11,8 73.3 I,9

K. 6E71RA LIGHT RAILWAY 1.B 4,6 6.4 722. 2.5 1.4 3.6 5.0 72'2 2t5

GINNERIES. COTTON HANDLING, AND STORAGE 9.4 18.3 27.7 66.1 10.7 7,2 14,1 21.3 66.! 1i0.N, SCHISTOSOMIASIS PROGRAM 0.6 7.2 7.8 92.l 3.0 0,4 5,6 6.0 °2,8 3,0N RFURAL WATER SUPPLY 10.7 9,2 19.9 46.4 7.7 8"2 7.1 15.3 46,4 7,70l STAFF HOUSING

S-.l3 5.6 3.3 8.9 36.8 3,4 4.3 2,5 6.8 36.8 7 .4IRRIGATION DEPARTMENT MOAI 2.0 !3 3.2 39.1 1.2 1+5 1.0 2.5 39.1 1.2

Sub-Total STAFF HOUSINC 7.6 4,5 12.1 37.4 4,7 5.8 3.5 9.3 3774 4,7P. REHABILITATION PROJECT MANAGEMENT UNIT 3.5 2.2 5.7 38,7 -22 2.7 1,7 4,4 38,70, 558 MANAGEMENT INFORMATION SYSTEM 1.8 3.3 5,0 65,1 1,9 Ili 25. 3.9 65.1 1t,

R. TRAINING 2,4 3i. 5.5 56.9 2.1 l8 2.4 4.2 56,9 2j?S, OTHER TECHNICAL ASSISTANCE 0,4 2.0 2,4 82.i 0.9 0.3 1,5 18 B2.1 a,?

Ti STiUDIES 1.6 1.6 3.2 50,0 12 1.2 1.2 2,4 50.0 1.2

Total SASELINE COSTS 107.2 151,0 258,2 58.5 '00.0 82.n 116.2 198.6 - 58.5 1t000Rhesical Corntingercies 11,,? 15,5 26.6 58.3 10.3 8.5 11,9 20.5 58.3 10.3P ie- Cnntinrrcie5 54.1 60,0 114.1 52.6 44.2 21.9 21,7 43.6 49.8 32,'

T-tai PF'2jEI.T COSTS 172.4 226,6 398.9 56.8 154,5 112,9 149,8 262i7 57,° 132'3

- -- --- -- - - -- -- - - -- -- - --- - -- -- -- ---- - -- - --- - - - --- - --- - -- ---- -- -- - --- -- -- -- - ---== _=__= = = =-==========-=== ==-=__= =_= -====== -==_===== -=====_ -

- 25 -

3.34 Price contingencies total 20% of base costs plus physicalcontingencies in US dollars and have been estimated as summarized in Annex3.1.

3.35 A PPF of US$0.6 million has been proposed to cover the costs of:(i) preparing the detailed survey for the telecommunications component(para. 3.16); (ii) preparing specifications and engineering forrequirements for ginnery work to be executed in Project year 1 (para.3.18); (iii) establishment of RPMU office (para. 3.23); (iv) technicalassistance needs for strengthening management information systems(para.3.24); (v) technical assistance for preparation of a detailedtraining program (para. 3.25); (vi) continuation of studies of on-farmwater management in the Rahad project (para. 3.26); and (vii) appointmentof an internationally recruited agricultural economist (para. 3.27).

E. Financing Plan

3.36 Project costs would be financed in the following amounts andproportions:

Table 2

Gezira: Financing Plan a/% of x of

Local Foreign Total NetCurrency Exchange Total Project ProjectCosts Costs Costs Costs

---- US$ million -------1. IDAi Credit 3.6 76.4 80.0 30 342. Other Co-

Financiers(a) Arab Fundb/ 50.0 50.0 19 22(b) Government of

Italy - 7.0 7.0 3 4(c) Others 16.4 16.4 7 8

3. Government ofSudan 72.4 - 72.4 27 32

Net Project Cost 76.0 149.8 225.8 86 100

Taxes & Duties 36.9 - 36.9 14

Total Project Cost 112.9 149.8 262.7 100

a/ Amounts include contingencies.b/ For Social and Economic Development, Kuwait.

- 26 -

3.37 The IDA Credit would finance, jointly with GOS, the followingcomponents: SGB Agricultural Machinery and Equipment, Extension, FarmerTraining and Research, Workshops for SGB and MOAI(I), part of the vehiclesfor SGB and MOAI(I), the Gezira Light Railway, the Schistosomiasis Program,Rural Water Supply, Staff Housing for SGB and MOAI(I), the RPMU, the SGB'sManagement Information System, Training, Other Technical Assistance andStudies. The other components would be financed by cofinanciers, jointlywith GOS, as follows: the Government of Italy would finance certainmachinery and equipment for Canal Maintenance (part of Irrigationcomponent), mobile drainage pumps for the Drainage System and the civilworks and machinery and equipment for the Mezagila. pump station (part ofPumping Station component); the Arab Fund would finance the remainder ofthe Irrigation, Drainage System and Pumping Staticns components, as well asthe Sennar Dam, Roads and Ginneries, Cotton Handling and Storagecomponents; and cofinancing for the telecommunications component and thebalance of vehicles would be secured from other scurces..

3.38 Project financing by the financing agencies for the differentcategories of goods or services is set out in the followiing Table.

Table 3

Gezira: Financing for Different: Categories of Works, Goods and Services a/US$ million…

Other Co-GOS IDA Financiers Total

Arab Govt. ofFund Italy Other

Civil Works 38.0 11.2 16.6 0.5 66.3Machinery and Equipment 32.2 32.9 22.2 6.5 -- 93.8Vehicles 6.4 2.0 0.1 - 5.6 14.1New Ginneries 3.5 - 5.4 - -- 8.9Telecommunications System 2.3 - - - 10.3 12.6Technical Assistance 0.4 10.5 1.2 - -- 12.1Studies - 2.8 - - -- 2.8Training 2.7 1.8 0.1 - -- 4.6Incremental Operating CostsMaterials 0.5 9.0 0.2 - -- 9.7Farm Inputs 0.1 0.3 - - - 0.4Spares 3.6 6.0 0.2 - - 9.8Other Vehicle OperatingCosts 7.3 1.0 - - - 8.3

Other Operating Costs 6.9 1.9 3.1 - 0.5 12.4Salaries and Wages 5.4 - 0.9 - - 6.3PPF Refund - 0.6 - - - 0.6

TOTAL 109.3 80.0 50.0 7.0 16.4 262.7a/ Amounts include contingencies.

- 27 -

3.39 The proposed IDA Credit would be on standard terms to GOS.US$24.0 million of the IDA Credit would be passed on as budgetarytransfers/grants to the MOAI(I) for workshops and housing, SGB (as equitycontribution) and ARC for research activities, MOH for the schistosomiasisprogram and RWC for the rural water supply component. A further US$6.2million would be kept by Government for the RPMU and for studies. GOS,which would bear the foreign exchange risk, would onlend the balance ofUS$49.8 million of the IDA Credit to SGB under a Subsidiary LoanAgreement. The execution of the Subsidiary Loan Agreement with SGB would bea condition of Credit effectiveness. It is GOS policy to move graduallytowards positive real interest rates. The existing lending rate in Sudanis 9% for non-commercial enterprises and 12% for commercial entities.Onlending would be for 20 years at 14% interest. The proposed ratereflects some movement towards the goal of positive real interest rates andhas to be viewed against the current inflation rate of 25%, which ishowever likely to come down to about 15% in 1987/88. GOS share ofexpenditures on components financed by IDA (para. 3.37) would be passed onto Project entities on the same basis as IDA's contribution.

3.40 Funds provided by cofinanciers for various Project components(para. 3.37) would be passed on to Project entities on terms and conditionssatisfactory to such cofinanciers, as would the GOS share of expenditure onsuch components. Evidence satisfactory to IDA on the availability of fundsof not J.ess than US$50 million from such cofinanciers would be a conditionof Credit effectiveness. Assurances were obtained from GOS duringnegotiations that the balance of US$23.4 million would be secured fromcofinanciers no later than December 31, 1983.

F. Procurement 5/

3.41 Items to be financed by other agencies are set out in para. 3.37;procuretaent procedures of the concerned agency would apply to these items.Items to be financed under the IDA Credit would be procured as follows, andassurances to this effect were obtained from GOS during negotiations.

3.42 Goods. Vehicles, machinery, equipment and spares totallingUS$52.3 million would be grouped into appropriate bidding packages ofUS$100,000 or more and procured by ICB in accordance with Bank guidelines(issued July 1980) for works and goods. Qualifying domestic manufacturerswould receive a preference in bid evaluation of 15% or the import duty,whichever is lower. Annual requirements of spare parts for vehicles,machinery and equipment procured under the Project and totalling US$9.6million would be procured directly from the manufacturer of the equipmentor by quotations if there is more than one established supplier.

5/ All amounts in this Section include contingencies.

- 28 -

Miscellaneous items in packages of less than US$100,000 but totalling nomore than US$1 million would be procured under local competitive procedureswhich are acceptable to IDA. For contracts under US$20,000, but totallingno more than US$100,000, local shopping or purchasing off-the-shelf afterobtaining at least three quotations would be used. In total, ICB wouldaccount for about 70% by value of the purchases of goods. Purchases ofmaterials, consisting of medicines and molluscicides (US$9.0 million) wouldbe by negotiated contract, or by quotation if there is more than oneestablished supplier, while farm inputs (US$0.2 million) for the researchcomponent would be procured in accordance with the normal existingprocedures of the Government acceptable to IDA.

3.43 Works. Civil works construction at SGO, MOAI(I) and ARCHeadquarters and main areas as well as installed track for the GLRtotalling US$3.7 million would be procured by ICB in accordance with theBank's guidelines as above. Civil works would qualify for 7 1/2% domesticpreference under ICB procurement. Civil works for SGB and MOAI(I) housing(US$8.5 million) which would be dispersed and in remote areas would be byLCB procedures (which would allow foreign firms to participate). The civilworks for rural water supply (US$17.1 million) which, because of the smallunit cost, the dispersed and remote location of the sites and the existenceof a government unit already engaged in this work, would be by forceaccount. In total about 12% by value of the civil works would be underIGB, while a further 30% would be under LCB.

3.44 Contract Review. A1L bidding packages for works and goodsestimated to cost over US$0.5 million equivalent would be made subject toprior IDA review of procuremenit documentation. This would result in acoverage of about 50% of the total estimated value of the contracts. Thebalance of contracts would be subject to random post review by IDA aftercontract award.

3.45 Consultants. The Consultants listed in Annex 8 (with estimatedmanmonth rates) would be hired in accordance with the Bank guidelines(issued August 1981) on the use of consultants. They would have terms ofreference, qualifications and terms and conditions of employmentsatisfactory to IDA. Assurances to this effect were obtained from GOSduring negotiations.

G. Disbursement

3.46 The proceeds of the Credit would be disbursed over six years(Annex 4.1) on the basis of 100% of foreign expenditures, or its equivalentpercentage of total cost if locally produced or expended, for allcategories of expenditure except for technical assistance and studies whichwould be financed 100%. These details are outlined in Annex 4.2. Thedisbursement profiles for Bank--wide irrigation and drai'-,6: s;:bfectorprojects and for Eastern Africa crop processing and grain storage subsect-projects are eight and nine years respectively while for all Sudanese

- 29 -

projects, the profile shows that full disbursement has taken an average ofnine years with about 82% being disbursed over the first six years. Theshorter disbursement period of six years assumed for the proposed Projectis justified by the relatively strong management of the two majorimplementing agencies, the preparatory steps already completed in respectof major procurement items and the further steps being financed prior toProject start under a PPF (para. 3.35).

H. Information Systems, Accounts and Audit

3.47 The financial and management accounting regulations of the Boardare an adequate basis for the operation of the accounting systems of SGB.The financial accounting system as it works in practice follows theestablished regulations closely. However, accounting information is notissued in a timely fashion, because of a shortage of trained and qualifiedstaff, inadequate supervision, out-of-date manuals and poor communicationsbetween the Blocks, Groups and Headquarters. Project activities would aimto remedy the first three problems by providing for the establishment of atraining center with two trainers in bookkeeping, accounting and auditingand supply/inventory management; a strengthened management informationsystent (including upgrading of existing data processing equipment); andadvisors in finance and supply and inventory management who would workunder the Finance Division manager and direct their attention to the moreimmediate problems of that Division. Communications could be expected toimprove when the telecommunications network is established (para 3.16)

3.48 Budgetary control exists within SGB but consists only ofmonitoring actual major departmental expenses with budget at the point ofpostirng into the ledger. Timely performance reports are not prepared. Adetailed and comprehensive management information system comparing physicaland financial goals to results does not exist and technical assistancewould be provided to set up such a system (para. 3.24).

3.49 Audited annual financial statements have been issued up to June30, 19I80 only. The audit for the statement for the year to June 30, 1981is expected to be completed in June 1983. Thereafter, unaudited financialstateraents would be provided to the Bank within six months of the close ofeach fiscal year and an independent auditor's opinion and reportsatisfactory to the Association on such statements would be provided withinnine months of the close of the fiscal year. Assurances were obtained fromGOS that SGB would maintain its accounting system in accordance with soundand generally recognized accounting principles and practices acceptable toIDA.

3.50 The ARC, BNHP, RWA, and MOAI(I) all at Wad Medani, and SPTC atKhartoum, would maintain separate Project-related accounts. Experiencewith other projects, namely the Rahad Irrigation and the Western SudanAgricultural Research Projects, as well as review during appraisal of the

- 30 -

different project entities' accounting systems and accounting staff

capabilities, shows that thase organizations are able to maintain separaterecords of their organization's share of project costs. Thus assuranceswere obtained at negotiations that these Project entities would establishand maintain separate accounts to be operational from the beginning ofimplementation and that such accounts would be maintained in accordancewith sound and generally recognized accounting principles and practicessatisfactory to IDA to enabLe these organizations to provide annualfinancial statements to ref:Lect the financial performance and position ofthe Project components. Unaudited financial statements would be providedto IDA within six months of the close of each fiscal year, and anindependent auditor's opinions and reports satisfactory to IDA on suchstatements would be presented within nine months of the close of the fiscalyear.

3.51 The supporting documents for Statements of Expenditure (SOEs)would not be submitted for review but retained by MOAI(I) and SGB forinspection by IDA supervision missions. These documents would be auditedseparately by auditors acceptable to IDA and the audit report submitted toIDA within nine months of the end of each fiscal year. An assurance tothis effect was obtained at negotiations. The staff and institutionalcapabilities of Project entities are adequate for the preparation of suchSOEs.

3.52 The Auditor General is, by law, the auditor of project entitiesand has been accepted by IDA in other recent Credits6/ as an independentauditor. The quality of the Auditor General's staff is adequate to carryout the annual audits of SGB. However, due to the increasing workloadplaced on his staff, it is unlikely that audits could be carried out on atimely basis in the future. Assurances were obtained at negotiations thatif the Auditor General reports that audit cannot be completed within three!months of receiving the accounts, then other independent auditorsacceptable to IDA would be engaged forthwith to carry out the audit workrequired.

I. Water Demand and Availability

Water Requirements

3.53 The total demand at Sennar for the Project and other greenbeltand domestic requirements would be 6.24 milliard/year. The monthly waterrequirements (Annex 5.4) at the Sennar dam to meet the irrigation and otherdemands in Project year 5 have been estimated. The highest monthly

6/ Includes New Halfa Irrigation Rehabilitation Project (Cr. 1022-SU), BlueNile Pump Schemes Rehabilitation Project (Cr. 1118-SU) and White Nile PumpSchemes Rehabilitation Project (Cr. 1119-SU).

- 31 -

(October) demand on main canal head would be 937 million m3 (30.2 millionm3/day) and within the capacity of main canals. The annually irrigatedcrop area would be limited to 1.55 million fd by the existing capacity(31.05 million m3/day) of the main canals.

Source of Water Supply

3.54 Irrigation water for the scheme is derived from the Blue Nilewhich has a mean annual flow of 50 milliard m3 of which 80% flows in themonths of July to October. The discharges vary from 6000 m3/sec in floodto as little as 130m3/sec in the dry season. The heavy silt load (meanannual concentration 5000 mg./l) carried by the river is the source ofreservoir and canal sedimentation. The quality of the Blue Nile Water,CISI (USDA classification) for most of the year is excellent forirrigation. The detailed inspection of the Roseires Dam (para. 2.19) wascompleted in 1982. About US$2.5 million would be needed to rectify minorfaults detected at the dam. Assurances were obtained from GOS duringnegotiations that these funds would be made available to MOAI(I)independently of the proposed Project and that the remedial works would becarried out before June 30, 1985 according to an action program,satisfactory to IDA. Assurances were also obtained that the Roseires Damwill he inspected and maintained in accordance with an action plan preparedno later than December 31, 1983 and acceptable to IDA.

Water Availability

3.55 The total quantity of water Sudan may divert from the NileSystem, according to the Nile Water Agreement of 1959 between Egypt andSudan, is equivalent to 20.55 milliard m3/year at Sennar. The currentwater requirement in Sudan is estimated at 17.7 milliard m3/year includingthe projected demand. The reservoir operation studies, carried out toassess the storage needs in the base flow period taking into account theprogressive siltation in the Roseires reservoir, indicate that the existingstorage capacity would suffice until 1990. The options to meet thesituation after 1990 are: (i) heightening of the Roseires dam in stages orin fu:Ll (the dam has been designed and constructed to meet this situation);or (ii) if heightening of the dam is delayed, reduction of the wheat areaat the rate of 550 fd for loss of each milliard live storage capacity ofthe Project.

3.56 Heightening of the Roseires dam would be ultimately needed toensure continued irrigation in the Blue Nile region. However, there arecompeting claims within the irrigated sub-sector for the medium terminvestment funds available including Upper Atbara Project and themodernization of the Pump Schemes. A study to assist in determining suchinvestment priorities is therefore important and funds for this purposehave been provided under Technical Assistance II Project (IDA Cr.1153-SU). Assurances were obtained during negotiations that Governmentwould furnish, not later than December 31, 1983, a ten year program forsuch investments.

- 32 -

J. Environmental Impact

Water Management

3.57 Irrigation in the Gezira Scheme has been responsible for the highincidence of schistosomiasis in the area and has contributed to theprevalence of malaria (para. 2.36). The Project activities would aim toimprove water distribution, drainage and canal maintenance and restorethorough drying out of minor canals. These measures should reduce breedinggrounds for these diseases. The Project would extend safe water supply tovillages presently not covered, further reducing the risk ofschistosomiasis. The disea.se would also be controlled by mass treatment andfollow-up programs, and by use of focal molluscicides in canals.

Pesticides

3.58 Pest control by spraying cotton with insecticicle has beenextensively practised in Sudan for the past '30 years. Al1 sprays currentlyused are tested by residue analysis for compliance with prescribedspecifications and registered with the Pesticide Committee of the MOAI.Application is by aerial spraying. Techniques that minimize drift would bestudied on the pilot schemes (Annex 6) so that risk of di'rect contaminationof the human population can be reduced further. Although extensive use ofchemicals would continue to pose long term risks, it would not becommercially feasible to produce cotton without chemical pest control.

Ginneries

3.59 Byssimosis (chronic cough) is present among workers in the cottonginneries. It is due to exposure to cotton dust from inadequate protectivemeasures and poor hygiene within the factories. The proposed mechanizationprogram introduces equipment that should reduce its incidence.

K. Mid-Term Review

3.60 Assurances were obtained from GOS during negotiations that aProject mid-term review will be conducted jointly by GOS and IDA no laterthan December 31, 1986. I'he primary aim wilL be to synthesize theknowledge gained through the studies to serve as a basis for preparation ofthe modernization program- The review will also cover performance underthe proposed Project, including: (i) access of SGB and other Projectentities to foreign exchange and local currency; (ii) replacement of assetsand provision of spare parts; (iii) fuel availability and distribution;(iv) public and private sector agricultural machinery operations; (v)adequacy of cotton and wheat prices; (vi) the responses of tenants toProject activities; (vii) debt recovery; (vi:Li) pilot schLeme and on farmtrials; (ix) research conducted by ARC; (x) l:he efficiency of pest controlpackages; (xi) evaluation of alternative weed control systems, including

- 33 -

mechanical weed control trials; (xii) progress on the introduction of the Tand V extension system; (xiii) the impact of the Project managementinformation system; (xiv) the Project manpower situation; and (xv)evaluation of the effectiveness of the interventions for schistosomiasiscontrol. Based on such a review, and other supporting work, issues such asselection of technology for weed clearance, selection of appropriateploughing equipment, delineation of the respective roles of the private andpublic sectors in farm machinery operation and most importantly, the scopeof change in the tenurial system in the scheme area would be addressed.Project components would be modified where required and reallocation offunds worked out. Preparation of an investment program for the scheme forthe period 1988-93 would also be taken in hand with technical assistanceand consultancies for this purpose financed under the proposed Project.

CHAPTER IV

IMPLEMENTATION

A. General

4.01 Six government organizations would be involved in implementingthe proposed Project: the Sudan Gezira Board, the Ministry of Agricultureand Irrigation, the Agricultural Research Corporation, the Rural WaterAdministration under the Central Regional Government, the Blue Nile HealthProject under the Ministry of Health, and the Sudan PublicTelecommunications Corporation.

B. Project Execution

Rehabil:Ltation Project Management Unit (RPMU)

4.02 In order to ensure smooth implementation of the Project, it wouldbe necessary to establish an effective unit in the MOAI, whichwould deal with external donors and government agencies, handleprocurement, monitor project progress, provide technical support to theimplementing entities, administer studies and supervise preparation of themodernization program. This unit would be modelled on that establishedfor the Rahad Irrigation Project (Cr. 364-SU) where it proved fairlysuccessful. The acknowledged defects of the arrangements at Rahad, inparticular lack of technical and secretarial support staff, have beenaddressed and corrected in the proposed unit.

4.03 The Director of the unit would report directly to the Minister.He would have the necessary status to coordinate the work of theimplementing agencies and would extend technical support to them. He would

- 34 -

be the convener of a Project Ilanagement Committee (PMC), headed by theMinister of Agriculture and Irrigation and comprising the heads of theimplementing agencies, the Under Secretaries' of the Ministry of Health,Ministry of Finance and Economic Planning, Ministry of Transport andCommunications and Regional Minister of Housing, Construction and PublicUtilities, Central Region (whc is in charge of RW4A). The PMC would meetquarterly and would inter alia review and approve Annual Work Programs(AWPs), monitor progress of the Project and reso:lve interagency conflicts.The Director, RPMU, would be assisted by a localLy recruited agriculturalspecialist, and an internationally recruited agricultural economist. Theagricultural specialist would assist the Director in supervisingimplementation and would provide technical support on agricultural mattersto the Project entities. The agricultural economlist would assist theDirector in the areas of monitoring and evaluation, training and technicalassistance, and would administer and be responsible for quality control ofthe studies component.

4.04 Procurement for the Project would be handled by a ProjectProcurement Committee (PPC) comnprising technical specialists from theimplementing entities. This committee would be mtodelled after a similarcommittee established under the ARP Credit which proved highlysuccessful. The committee wou:Ld be the final authority in Government onProject procurement decisions and would be headed by an official of theMinistry of Finance and Economic Planning. The implementing iagencies wouldbe responsible for drawing up initial technical specifications for allICB's; further processing of all ICB's would be undertaken by the PPC. ThePPC would also extend technical assistance and enforce quality control onother forms of procurement which would be undertaken by the Projectentities themselves. An internationally recruite,d procurement adviserwould assist the PPC in its tasks. Government has given an assurance thatRPMU, PMC and PPC would be established no later than September 30, 1983;the appointment of the Chairman, PPC and the Director, RPMU would be acondition of Credit effectiveness.

C. Annual Work Programs

4.05 The Annual Work Program (AWP), which would cover all Projectcomponents, would be a key project implementation mechanism and isdescribed in Annex 7. It would include (i) a review of progress in thecurrent year, (ii) a detailed description of the ivork to be performed inthe forthcoming year, including objectives, deployment of equipment andstaff, (iii) requirements of additional staff, eqtipment and fuel, (iv) abudget, and (v) a financing plan including foreign and local currency needsand subventions required from G0S. The AWPs would enable GOS to reviewprogress, scrutinize forthcoming programs and provide the necessarybudgetary and other support needed for the Project. The AWP mechanism hasbeen successfully applied in ongoing IDA irrigation projects.

4.06 For the first year of implementation, an AWP would ba preparedby August 31, 1983, and submitted to IDA by September 30, 1983. AWPs for

- 35 -

1984/85 onwards would be submitted to Government by April 1 and to IDA byMay 1 each year for acceptance, to cover the ensuing financial yearbeginning July 1. Assurances were obtained from GOS during negotiations ofacceptance of these arrangements.

Financial Flows to Project Entities

4.07 SGB. Secure access to adequate flows of foreign and localcurrency is critical for Project success. Foreign exchange needs forcapital and recurring expenditures would be determined through AWPs.Assurances were obtained from GOS at negotiations that timely allocation offertilizers, pesticides, herbicides and other necessary recurrent inputs insufficient quantity would be made to project implementing agencies and thatquarterly reports on such allocations would be made available to IDA in aformat acceptable to it. It was also agreed at negotiations that GOS wouldprepare and submit to IDA no later than September 30, 1984 an actionprogram emanating from studies conducted by it on ways and means requiredto ensure adequate and timely financing of foreign exchange recurrent costsof the agricultural activities included in the Project.

4.08 Local currency needs would also be determined through AWPs.Assurances were obtained during negotiations that transfers to a localcurrency account maintained by SGB in the Bank of Sudan would be made infour quarterly installments in accordance with the AWP. Thus SGB wouldhave direct access to local currency for investment. The line of creditalready available from the Bank of Sudan would be extended to cover workingcapital needs of the Project and an assurance to this effect was alsoobtained during negotiations.

4.09 MOAI(I). During Project implementation, operation andmaintenance (O&M) of the irrigation and drainage system would be theresponsibility of MOAI(I) and financed by GOS independently of theProject. MOAI(I) has existing arrangements with EMC (para. 3.03) forperforming the silt clearance on canals and drains. EMC has plant andsupport facilities at site to perform annually seven million cubic metersof maintenance earth work, adequate for the Project needs. However,adequate and timely funds, fuel and foreign exchange must be provided toMOAI(I) by the Government in order to maintain the silt and weed clearanceprogram. MOAI(I) would submit: (i) the annual irrigation and drainagemaintenance program; (ii) the contracted arrangements and rates negotiatedwith EMC for performing the silt clearance; and (iii) annual requirementsof local currency and foreign exchange for ensuring satisfactory operationand maintenance to IDA for review and approval in the AWPs. Assuranceswere obtained from GOS at negotiations that financial transfers would bemade in four quarterly installments to an account opened in the name ofMOAI(I) Gezira in amounts agreed to in the AWP.

Access to Fuel

4.10 Fuel scarcity has seriously impaired the efficiency of schemeoperations in the past. Assurances were obtained from Government during

- 36 -

negotiations that necessary and timely allocations of fuel would be made.Fuel supply requirements wouldi be estimated and monitored through the AWPs.

D. Sudan Gezira Board

4.11 The present centralLzed management structure of SGB would beretained and the bulk of Project activities would be handled by existingSGB staff (Chart III). They would continue to be responsible fordetermination of rotations and delivery of services to tenants, on-farmwater management, machinery maintenance, operation of the GLR and theginneries, cotton delivery to the CPC and cost and debt recovery.

4.12 In order to supervise the Project efficiently, SGB has createdthe post of Deputy Managing Director, who would be responsible for allProject operations within SGB. He would be assisted by a Research andExtension Coordinator whose responsibilities would include coordinationbetween ARC and SGB, and introduction of extension techniques on the schemewith Project support. An internationally recruited training specialistwould assist in implementing training programs (Annex 10). I)ay-to-dayoperations would be supported by improvements in the management informationsystems (para 3.24). The establishment of a telecommunications network(para 3.16) should also strengthen SGB operations, while mobility of staffwould be improved through provision of motor vehicles (para. 3.14).

Water Management

4.13 There is a need to establish a Water Management Advisory Unitunder the Agricultural Department with a field irrigation engineer at eachgroup level. This Unit would be responsible for: (i) training andorganizing the farmers in irrigation management and, where extension pilotworks are established, to act as subject matter specialists; (ii) technicalinputs on crop irrigation planning and preparation of water indents, andmonitoring the delivery of water to "numbers"; (iii) ensuring group actionby farmers in proper water management and upkeep of field channelsaccording to prescribed rules; and (iv) engineering surveys and designs formaintenance of Abu XX, land levelling and field drainage as required.Graduates from the faculty of Agriculture of the University of Khartoum,and experienced SGB field inspectors would be available to fill the posts.Technical assistance (24 man-months of consultancy service) and overseastraining (42 man-months) to heLp establish the Unit would be madeavailable. Assurances were obltained during negotiations that the Unitwould be established no later ithan December 31, 1983.

Legal Status of SGB

4.14 The Gezira Scheme Act: of 1960 would be revised to reflect certainalterations in the operating structure and procedures adopted by SGB inrecent years. The proposed revisions include: (i) altering thecomposition of the Board of SGBE and reformulating its responsibilities and

- 37 -

functions; (ii) definition of the responsibilities and functions of theManaging Director and Deputy Managing Director of SGB; (iii) inclusion ofa provision in the Act, making it obligatory for SGB to recover fully allits costs from tenants (departure from this principle would only bepossible after explicit approval by the Government); (iv) provision of anadequate capital structure for SGB; (v) description of productionrelations between SGB and tenants; and (vi) details of financialrelationship between GOS and SGB. The enactment into law of the necessaryrevisions would be a condition for Credit effectiveness.

E. Ministry of Agriculture and Irrigation (Irrigation)

4.15 The overall responsibility for implementing the irrigation anddrainage components of the Project would rest with the Director-General ofIrrigation Affairs. In this, he would be assisted by Directorates ofProjects, Electrical/Mechanical works, Irrigation Affairs and Dams.Horizontal coordination amongst these agencies is well established and issatisfactory for Project implementation. The design and constructionsupervision of Project works would be carried out by the Directorate ofProjects. While the present structure of MOAI(I) (Chart IV) would beretained, a new road construction and maintenance unit would be establishedfor roads of significance to Project activities. This unit, under anexperienced Engineer assisted by four technical officers, would beresponsible to the Director, Irrigation Affairs.

Operation of Minor Canals

4.16 Water is conveyed to and delivered into minor canals by MOAI(I)according to the indents prepared by SGB field agricultural staff. Theinvolvement of SGB in the operation of the irrigation system commences atthe upstream end of minor canals. The water control on minor canals andwater distribution to "numbers" is performed by the Agricultural Departmentof SGB through "gaffirs", though MOAI(I) is responsible for the maintenanceof minor canals. Operation of minor canals is poorly supervised by SGB,FOPs are not controlled, waste of water occurs in many areas at the cost ofwater slaortage in other areas, and misoperation of minor canals causesserious maintenance problems. Government has agreed to transfer operationresponsibilities to the MOAI(I), which has the capacity to enforce thenecessary water control and regulation mechanisms.

4.17 The operation of minor canals would be transferred from SGB toMOAI(I) in a phased manner during the first four years of the Project.Assurances to this effect were obtained during negotiations. The transferof responsibility for the first sub-division to MOAI(I) would be acondition of Credit effectiveness.

- 38 -

F. Agricultural Research Corporation

4.18 ARC would be responsible for identifying and resolving majorproblems, SGB for applying recommended solutions to tenants' fields. Ajoint research and production committee has been established. Thiscommittee would be responsible for designing production targets, selectingareas to be brought under upgraded technologies and defining associatedextension and field activities. ARC would be involved in evaluating andmonitoring production practices carried out by SGB, tenants and the privatesector. Research objectives are summarized in Annex 6.

G. Illue Nile Health Project

4.19 BNHP, which is part of MOH, would be the implementing agency forthe chemotherapy and focal molluscicide campaigns. Drugs, c:hemicals andrelated supplies would be procured through WHO. The use of drugs andchemicals would be monitored through the AWPs and at the micd-term review(para. 3.60). BNHP would provide technical ass:Lstance to RWA, to implementthe rural water supply and sanitation component (para. 3.21).

H. Rural Water Administration

4.20 The Gezira Province Rural Water Admini.stration would execute thewater supply and sanitation component, under the regional water directoratewithin the Regional Ministry of Housing, Construction and PublicUtilities. Existing staff would be sufficient fior the proposed borewellprogram. Some additional technical staff required to superviserehabilitation of the filter systems and build up filter maintenance teamsis provided for under the Project.

I. Sudan Public Telecommunications Corporation

4.21 The telecommunications system under the Project would be providedspecifically for the Gezira scheme. It would be owned and operated by SPTCfor SGB and MOAI(I). Design criteria, specification and tender documentswould also be prepared by SPTC. Training would be provided through thesuppliers' contract. Assurances were obtained from GOS during negotiationsthat it would cause SPTC to enter into an agreement, no later thanJune 30, 1984, with SGB and MOAI(I) on the tariff, which should beacceptable to IDA and applicable for the period up to June 30, 1988.

J. Private Sector Machinery Operations

4.22 SGB would, during the Project period, provide machinery servicesfor most cotton operations. Most non-cotton operations, as in the past,

- 39 -

would be undertaken by the private sector. In order to secure privatesector services, machinery hire rates would have to cover fully fuel andoperator costs, maintenance, interest, depreciation and a margin ofprofit. Assurances were obtained from GOS during negotiations that therates for SGB be reviewed annually on the above basis since private sectorrates are influenced by the rates fixed by SGB.

4.23 It is estimated that augmentation of the private sector fleet by300 tractors with required implements should be adequate to cater to demandfor such services during the Project period. Government has obtainedassistance from the French government for financing 225 tractors for saleto tenants in Gezira through the auspices of ABS. Assurances were obtainedduring negotiations that GOS would provide funds (either through bilateralassistance or from its own resources) to finance purchase by tenantsthrough ABS of an additional 75 tractors and associated implements notlater than June 30, 1984. The level of services provided by the privatesector would be carefully monitored through the AWPs and would be reviewedduring the Project mid-term review.

K. Monitoring, Evaluation and Reporting

4.24 The Director RPMU, assisted by the internationally recruitedagricultural economist in the RPMU (para. 4.04) would have overallresponsibility for monitoring, evaluation and reporting. Monitoring andevaluation would be carried out principally through the AWP mechanism(para. 4.05) and the proposed mid-term review (para. 3.60). In addition,baseline and other studies supported by the Project (para. 3.27) would beused to monitor and evaluate areas such as tenants' behavioral responsesand the efficiency of the T and V extension system. The strengthening ofmanagement information systems (paras. 3.24, 3.47 and 3.48) would augmentSGB capability to monitor operations on a day-to-day basis and evaluateresults, with particular emphasis on concerns such as cost-effectiveness ofoperations. The RPMU would furnish IDA with monthly telex progressreports, in a format satisfactory to IDA. It would also prepare theProject Completion Report no later than six months after the completion ofthe Projject. Government assurances on these reporting procedures wereobtained during negotiations.

CHAPTER V

AGRICULTURAL PRODUCTION MARKETING AND PRICES

A. Agricultural Production

5.01 Table 4 summarizes the expected cropped area, yields andadditional production expected under the Project.

- 40 -

TABLE 4

Gezira: Area, Yield and ProductionPresent Future without Project Future with ProjectYear 0 Year 6 Year 6

LS CottonArea ('000 fd) 320 310 310Yield (tons/fd) 0.5 0.54 0.7Prod. ('000 tons) 160 167 217

MS CottonArea ('000 fd) 120 150 150Yield (tons/fd) 0.57 0.61 0.83Prod. ('000 tons) 69 92 124

Groundnuts

Area ('000 fd) 200 220 240Yield (tons/fd) 0.65 0.7 0.95Prod. ('000 tons) 130 154 228

SorghumArea ('000 fd) 300 300 300Yield (tons/fd) 0.45 0.5 0.69Prod. ('000 tons) 135 150 207

WheatArea ('000 fd) 275 400 400Yield (tons/fd) 0.36 0.39 0.65Prod. ('000 tons) 99 156 260

Vegetable Area ('000 fd) 40 40 50

Fodder Area ('000 fd) 40 50 100

TOTAL AREA ('000 fd) 1,470 1,470 1,550

5.02 The total area cultivated would rise mnarginally from 1.47 millionfd to 1.55 million fd. There would be small increases in area undercotton, with fodder being introduced on an additional 60,000 fd. The areaunder groundnuts would rise b>y 40,000 fd while that under sorghum wouldremain unchanged. The relative area to be planted under ELS and MScotton would be decided while finalizing the AWP each year, having regardto the international price situation and other relevant considerations(Chart V).

5.03 Yield increases are expected from improved water delivery, betterdrainage, better land preparation and land leve:Ling, timely seed-bedpreparation and sowing, proper weeding and crop husbandry, aLnd gradual

- 41 -

introduction of certified seeds of high yielding varieties for all crops,especially groundnuts and sorghum. They would also be due to larger dosesof fertilizer and pesticides which at present are used only for cotton andwheat (Table 5). The proposed program of extension and applied researchwould allow for improvement and development of production technology of themain four crops. The capabilities of SGB field personnel would beimproved, and the links between ARC, SGB, MOAT(I) and farmers would beenhanced. Improvements of incentives for tenants would play a central rolein raising yields.

Table 5

Gezira: Input Application Rates with and without the ProjectCotton Sorghum Groundnuts Wheat

with without with without with without with without

Seed (kgs/fd) 10 10 4 4 50 20 50 50Urea (kgs/fd) 140 120 40 -- -- -- 80 80TSP (kgs/fd) -- -- -- -- 40 -- 40 --

Pesticide(a)gms/fd. 60 50 8 2 100 40 100 100Herbicide(b) 1 1 1 __ 1 1 1 __Spraying(b) 8 7 1 -- __ __ 1 1

(a) Pesticide is "Abavit" for cotton, "Dieldrex" for groundnut and wheatand "Fernazan" for sorghum.

(b) Number of times applied.

5.04 Production of seed cotton would increase from a projected 259,000tons in Year 6 without the Project, to an expected 341,000 tons with theProject. Wheat production would be expected to increase from 156,000 tonsto 260,000 tons, and should meet about 30% of projected consumption needsby 1988, compared with 20% in 1981. Groundnut and fodder yields would beexpected to increase by about 40%.

5.05 Yield estimates are based on (i) analysis of historical data;(ii) interpretation of cross-sectional data on yield variations between andwithin the various blocks in a particular year; (iii) assessment of thelikely impact of Project actions on yields; and (iv) recognition ofmacro-economic, management and institutional constraints that affect thescheme.

B. Marketing and Pricing

Marketing

5.06 SGB's responsibilities are limited to the production, handling,ginning, and transportation to Port Sudan of cotton lint bound for export.All marketing and export activities are carried out by the CPC. Four

- 42-

separate companies, all under the control of CPC, export lint. Cotton lintis sold on a tender basis or at fixed prices. Lint for the local textileindustry is sold at the ginnery gate. In the ?ast, CPC has taken more thana year to pay SGB after receiving the lint, anl this system has been adisincentive for the cotton producers. Since the 1980/81 season, CPC hasbeen buying all the seed cotton at prices fixecd at the gin gate for cottonseed and at Port Sudan for lint, allowing for t;he cost of ginning andtransportation to Port Sudan. All cotton seed is presently sold to thelocal oil industry or is used to produce soap. Cotton seed and oil exportsare prohibited.

5.07 Since the 1980/81 season, private merchants are allowed to sellgroundnuts on the world market, along with the Sudan Oilseed Company (SOC),which previously was the sole exporter. Since this change, prices to thefarmers have increased. Private merchants and the newly formed SudanCompany for Processing of Oi:Lseeds (SCPO), which is controlled by SOC,export groundnut oil, cakes, and meal. The local trade in Gezira iscarried out by the local village merchants and by agents working formerchants and oilcrushers in Khartoum and Port Sudan.

5.08 The official marketing system for wheat requires all producers todeliver up to half a ton per feddan of the crop to an authorized flour millat a fixed price. The rest can be sold in an active free market created bydemand in the Northern Region, which offers prices 20 to 30% higher.

5.09 Sorghum is a subsistence crop in the Gezira, used for consumptionand as a payment in kind for cotton pickers. Any surplus production issold in the local market. Sudan as a whole is a surplus producer ofsorghum; however, the Gezira has in recent years has been in deficit,compensated by imports from rainfed areas.

Pricing

5.10 Annex 2 details current cotton price projections. Cotton pricesin general show considerable annual fluctuation. For the last 14 years,the international price of Sudan ELS grade G-5B has averaged 27% above thatof SM 1-1/16" cotton. Projections are based on IBRD commodity priceforecasts, adjusted by a 20% quality premium for ELS over Mexican Middling1-3/32" cotton, assuming para:Llel price development. Local prices arefixed by CPC for each quality and type of lint, based on production anddemand projections, and calcuLated delivered to Port Sudan. Each year onor before December 1, after consultation with IDA, prices would beannounced by GOS based on crileria which would be parity with internationalmarket prices, also taking note of (a) cost of production of the crop andadequate remuneration for growers, (b) long-term stability in growers' netreturns from the crop and protection of growers from short-termfluctuations in international prices, (c) relative prices and returns fromcompeting crops, and (d) level, of land and water charges recovered fromgrowers. Assurances to this e!ffect were obtained during negotiations.

- 43 -

5.11 SOC sells groundnuts through direct negotiation or an invitationof bids, and competes on the local market for export of nuts with privatemerchants. SOC does recommend a floor price for farmers to the Ministry ofFinance but local merchants, who also provide credit, generally pay belowthis price to Gezira tenants. Groundnut projections are derived from IBRDforecasts, with a 16% quality premium, reflecting average pricedifferentials over the past five years.

5.12 Government policy is to fix domestic wheat prices on the basis ofimport parity prices. However, as a result of devaluation announced onNovember 15, 1982, the official wheat price of LSd 280 per ton for 1982-83is now below import parity price equivalents. Assurances were obtainedfrom Government during negotiations that wheat prices would hereafter beannounced after consultation with IDA no later than November 1 each yearand would reflect import parity prices taking note also of longer-termstability in growers' net return from wheat. Projections for wheat arederived from IBRD forecasts, with a quality adjustment of -10%.

CHAPTER VI

FINANCIAL ANALYSIS AND TENANTS' INCOME

A. SGB's Cost Recovery System

General Principles

6.01 The cost recovery system for the Project would enable SGB torecover fully production costs incurred under the Project - for investment,inputs and services - from tenants over the Project life assumed to be 20years.

Costs - Identification, Measurement and Means of Recovery

6.02 Costs incurred within the scheme area would include: (a) SGB'sinvestment costs; (b) SGB's direct agricultural production costs such asfarm inputs and machinery costs; (c) SGB's indirect costs such asoverheads (known as Chapters I and II expenditures); and (d) irrigationwater supply costs such as dam capital and operating costs and canal anddrain operating and maintenance costs incurred by MOAI(I) on behalf of theScheme. The financial and management accounting systems of SGB do notpresently measure these costs either accurately or on a timely basis.Measures proposed under the Project (para. 3.47) would remedy such defects.

6.03 SGB's direct agricultural production costs would continue to bepassed on to tenants by direct charges to tenants' individual crop accountsbased on the quantum of goods supplied or services performed by the Boardfor individual farmers. Assurances were obtained during negotiations thatSGB would recover the full cost of goods and services through such directcharges and that the rates would be announced annually. Cash advances for

- 44 -

hiring labor to perform agricultural operations would also te charged totenants' accounts. Interest rates for cash advances would be reviewedthrough the AWP mechanism (para. 4.05).

6.04 SGB's Project investment costs, indirect costs of operation andits existing sunk costs as well as MOAI(I)'s costs would continue to berecovered by a lard and water charge which varies at present by crop basedon the theoretical relative number of waterings each crop receives. GOSwould notify tenants of the rates of land and water charges applicable foreach year no later than May 1, i.e. before commencement of irrigation.Such rates would be based on principles acceptable to IDA for allocatingvarious costs among different crops raised in the Project area, reflectingaccurate unit costing to value all goods, services and cash loans and fixedafter consultation with IDA. Assurances to this effect were obtainedduring negotiations.

Ternants' Income and Ability to Pay

6.05 Tenants net returns, crop budgets with and without the projectand inacremental revenues, costs, cash incomes and net returns by crop areshown in Annex 3.4. These figures reflect the expected increase in yieldsover the Project period; and i.n summary, net returns (average net returnper tenancy assuming a tenant"s family contributes 20% of the total tenancylabor requirements) would increase on average from LSd 1135 to LSd 2205(or95%) for tenants in the Managil Southern Group; from I,Sd 1099 to LSd 2562(or 130%) for tenants in the Gezira Southern Group; from LSd 988 to LSd208 (or 110%) for tenants in the Northern Group; and from LSd 745 to LSd1870 (or 150%) for the remaining (mainly East Bank) tenants.

Credit and Debt Recovery

6.06 SGB would provide seasonal credit to tenants in kinid (machineryservices, pesticides and their application, fertilizer, seeds, sacks and,in the case of cotton, marketing and processing), and in cash (laboradvances). All cash advanced for labor would be against certificatessigned by Field Inspectors that the work had beeni satisfactorilycoapleteed.

6.07 All credit in cash and kind (services and inputs) extended totenants would be recovered through the individua:L tenants' cIrop accounts.Recoveries would be made in cash or in the case of cotton deducted fromeach tenants' gross revenue from the crop. Once overdue, amounts owing onnon-cotton crops would be deducted from disbursemaents made for cotton totenants. The debt situation would be reviewed in the AWP's and a detailedreview of the performance under tenant debt recovery would be held duringthe Project mid-term review (para. 3.60). SGB collects MOAI(I)'s costs onits behalf and in principle is supposed to pass such collections toGovernment which incurs the expenditure in the fi.rst instance. In thepast, no amounts have been passed on but such transfers would be made underthe Project. To the extent that there were short:falls in actual debt

- 45 -

recovery during the Project period, such shortfalls would be reflected inthe transfers between Government and SGB and would be depicted inGovernment accounts as a subsidy to SGB.

B. SGB's Financial Results

6.08 SGB's financial results to June 30, 1980 include tenant debts ofLSd 43.7 million which had risen by the time of appraisal (i.e. May 1982)to over LSd 70 million. These have been consolidated by PresidentialDecree and rescheduled for recovery over a ten-year period. There is somedoubt as to whether or not all of this amount will be collected, yet noprovision has been made in the accounts for possible loss. Also includedare amounts totalling LSd 38.8 million due to GOS which had risen by thetime of appraisal to over LSd 60 million. The amount representsGovernment's share under the Joint Account and the accumulated deficit ofthe Board. In view of Government's decision to place a moratorium ontenants' debts it would be financially prudent to offset the uncollectibledebts against the amount owed to Government. Assurances were obtained atnegotiations that the financial statements for the fiscal year 1982/83 ofSGB would be reviewed and amended after consultation with IDA to reflectonly those useful assets and related liabilities necessary for its futureoperations.

6.09 It is projected that SGB would be able to meet all its financialcosts through land and water charges by Project year 5 (Annex 3.2), withthe result that cash inflows would equal cash outflows. The latter wouldinclude annual replacement of assets and repayment to Government of theloan for the Project over 20 years (Annex 3.3). In the initial years,Government subventions would be necessary to meet deficits in cost recoverycaused through farmers defaulting in repaying debts. This would amount toLSd 30.6 million during the first four years of the Project until yieldsand farmers incomes are built up sufficiently. If the Project was notundertaken, GOS would have to provide additional subventions totalling LSd44 million over a similar period and approximately LSd 190 million over thefirst 10 years of the Project life.

C. Other Project Entities' Financial Results

6.10 MOAI(I). MOAI(I)'s projected cash flows under the Project areset out: in Annex 3.5 This shows an excess at the end of Project year 5 ofLSd 13.2 million and a cumulative 10 year excess of revenues overexpenditures of LSd 20.4 million. This reflects full collection of watercharges by SGB on behalf of MOAI(I) and the remittance of these amounts.The excess would arise from depreciation charges on MOAI(I) assets includedin recoveries from tenants, and would be used to replace MOAI(I)'s assetsused on the Gezira scheme.

- 46 -

6.11 Other Project Entities. BNHP, RWA and ARC would obtainsufficient cash inflows either from Government in the form of grants orfrom an increased sugar tax and SPTC from user fees charged to SGB andMOAI(I). The inflows would cover projected incremental cas,h outflows oninvestment and operating costs.

D. Government Cash Flow

6.12 The Government cash flow is set out in Annex 3.6. This showsthat over the first 10 years Government's cash inflows would exceedoutflows by LSd 447 million or an average of LSd 45 million per year. Ifthe Project were not implemented, the GovernmerLt would have to continue thescheme on its present basis. This would result in annual subsidies to SGBand MOAI(I) of about LSd 16 million in 1983/84 rising to LSd 24 million in1988/89.

Chapter VII

A. Production Benefits

7.01 The area expansion, yield improvement and additional productionanticipated under the Project: is given in Table 4 and Annex 5.2. TheProject would generate net foreign exchange earnings of US$360 million peryear after completion (1988 constant prices). Annex 3.7 gives details ofGOS's incremental foreign exchange earnings under the Project. Projectactivities could thus be expected to improve the balance of paymentssituation substantially, and this is its primary justification.

B. Other Benefits

7.02 Project activities would directly benefit some 102,000 tenantfamilies. Anticipated tenant incomes are given in Annex 3.4.

7.03 The impact of the Project on the incomes of the 200,000 migrantlaborers and 80,000 permanent laborers and sharecroppers would be feltthrough more stable employment and higher earnings from piece-work, ratherthan from expanded work opportunity. Higher yields would enable cotton andgroundnut pickers to work more efficiently and earn more in a given time.Annual opportunities for all types of farm labor would incre!ase from 37.4million days (365 mandays per tenancy) to 40.0 million days (390 mandaysper tenancy). The increase would have been 1.8 million man-days higher butfor the introduction of herbicides for weeding, a change justified by theirbetter results over manual weeding. Some of the increase (50% or 1.3million days) would be through improved crop husbandry and should be ableto be met from existing resident labor which at present is not fullyemployed during the growing season. The remaining incremental demand wouldbe for crop harvesting and would have to be met mainly from increased

- 47 -

immigrant labor outside the project area. Recent experience has shown thatthe supply of such labor responds to the payment of competitive wage rateswhich the projected yields and crop prices under the Project wouldprovide.

7.04 The Project would also contribute to the reduction ofschistosomiasis and malaria through reducing breeding sites for snails andmosquitos by better water management, improvement of irrigation anddrainage systems and provision of safe drinking water which would helpreduce direct human contact with canal water.

C. Economic Analysis

7.05 The economic rate of return is estimated to be 35.8%. Thiscompares favourably with an opportunity cost of capital of about 12.5% inthe Sudan. The high economic rate of return reflects the large amount ofsunk capital in the Project area, and increased efficiency of operations.

7.06 The main assumptions used in the economic analysis are asfollows:

(a) Without Project Situation. Agricultural machinery delivered tothe scheme under the ARP is expected to result in an increase inyields and cultivated area during Project years 1 and 2 in thewithout Project situation. It is assumed that the increase wouldbe maintained, since replacements would be financed from theseincreased foreign exchange earnings.

(b) Prices. Medium term export parity prices are used for cottonlint, groundnuts, and sorghum; medium term import parity pricesare used for wheat, fertilizers, and pesticides. All prices arebased on the "World Bank Commodity Price Forecasts (updatedDecember 1982)". Fuel prices are based on import parity pricesprovided by the General Petroleum Corporation. All foreign costsand benefits are valued at the exchange rate of US$ 1.00 to LSd0.9. The local currency component of all incremental costs andbenefits has been converted to a border price expressed in localcurrency, using a standard conversion factor of 0.6. Thesefigures reflect the pre-devaluation (November 15, 1982) situationand have been used since cost data were collected prior todevaluation. The going market wage rate of LSd 2.50 per day hasbeen used for labor.

(c) Project Life. The economic life of the Project is assumed to be20 years. Replacements of Project assets with economic livesshorter than that period are included.

- 48-

D. Project Risks

7.07 The difficult economic situation in the country poses a majorrisk to the Project. However, the main justification for the Project isthe contribution it would make to economic recovery and therefore suchrisks would have to be faced . The Project includes measures to safeguardagainst risks, such as: (i) lack of access for Project entities to foreignexchange (paras. 4.05 and 4.07); (ii) lack of access to local currency(paras. 4.08, 4.09, 5.10, 6.03 and 6.04); (iii) failure to replace assets(para. 3.60); (iv) fuel shortages (para. 3.60 and 4.,10); (v) inadequatecotton prices (para. 5.10); (vi) poor response of tenants and labor toprice incentives (para. 3.60); (vii) weak management of the scheme (paras.3.47, 4.05, 4.11 and 4.12); (viii) lack of expertise within the country(para. 3.25 and Annex 8); (ix) shortage of skilled manpower (para. 3.25);(x) higher than anticipated siltation of Roseires Dam (para. 3.54 and3.56); (xi) lack of coordination among project entities and timelydisbursement of donor assistance (paras.4.01 and 4.02); (xii) pest attack(para. 3.09 and 4.07); (xiii) adverse trends in international cotton prices(para. 5.10); (xiv) delay in securing technical assistance (para. 4.04);and, (xv) delay or failure to secure needed cofinancing (para. 3.40).

Switching Values and Sensitivity Analysis

7.08 Notwithstanding safeguards provided in the Project, the risksmentioned above could materialize in varying degrees. This might lead to ashortfall in cultivated areas and/or reduction in yields. To estimate howresistant the Project would be to such risks, a number of sensitivity testswere carried out. These are summarized below.

Test ERR

1. Capital Costs up 30% 22.6%Operating costs up 30%Benefits down 10%

2. Capital costs up 30% 19.7%Operating costs up 30%Benefits delayed 1 year

3. MS. cotton benefits down 30% 27.5%ELS cotton benefits down 50%

4. Benefits delayed 2 years 18.8%Benefits down 10%

A test for switching values indicated that capital costs would have toincrease by 172%, or benefi ts decrease by 49%, for the net present value ofthe Project discounted at 12.5% to be zero.

- 49 -

Chapter VIII

Summary of Agreements Reached

8.01 During negotiations, agreement was reached that:

(i) The dams at Sennar and Roseires will be inspected and maintainedby GOS according to an action program prepared no later thanDecember 31, 1983 and acceptable to IDA (paras. 3.06 and3.54);

(ii) SGB will prepare an action program acceptable to IDA tostrengthen its management information system no later tnanSeptember 30, 1983; SGB will prepare a detailed training programwhich will be submitted to IDA no later than September 30, 1983(para. 3.24 and 3.25);

(iii) GOS will secure from cofinanciers the balance of US$23.4 millionto complete the financing plan for the Project no later thanDecember 31, 1983 (para. 3.40);

(iv) GOS will carry out studies in accordance with terms of referenceand contractual arrangements with individuals and institutionsacceptable to IDA (para. 3.27);

(v) GOS will follow the procurement procedures for goods and servicesprescribed for the Project (para.3.41 to 3.44) and hire technicalservices, in accordance with IDA guidelines (para. 3.45);

(vi) GOS will cause SGB, ARC, SPTC, MOAI(I), BNHP and RWA to maintaintheir accounting system in accordance with sound and generallyrecognized accounting practices and principles acceptable to IDA(paras. 3.49 and 3.50);

(vii) GOS will cause SGB, ARC, SPTC, BNHP, RWA and MOAI(I) to provideaudited financial statements within six months of the close ofeach completed Project year and an independent auditors'opinion and report to the Bank satisfactory to IDAwithin nine months of the close of each fiscal year (paras.3.49 and 3.50);

(viii,\ GOS will cause MOAI(I) and RWA to make SOEs available forinspection by IDA supervision missions, to have such accountsaudited by auditors acceptable to IDA and submit such auditedreports to IDA within nine months of the close of each financialyear (para. 3.51);

(ix) GOS will make arrangements that, in the event the Auditor Generalcannot meet Project audit deadlines, other independent auditorsacceptable to IDA would be engaged to carry out the work required(para. 3.52);

- 50 -

(x) GOS will provide adequate funds for works identified during the1982 detailed inspection of Roseires dam and ensure that MOAI(I)carries out these works before June 30, 1985 (para 3.54);

(xi) GOS will furnish, no later than December 31, 1983, a ten yearprogram for investments in the irrigation sub-sector (para.3.56);

(xii) GOS will conduct jointly with IDA a mid-term review of theProject no later than December 31, 1986 (para. 3.60);

(xiii) GOS will establish RPMU, PPC and PMC no later than September 30,1983 (para. 4.04); all Project implementing agencies will submitAWPs to PMC by April 1 each year. These will be submitted to IDAfor acceptance by May 1 each year (para. 4.06). For Project year1, the AWP will be furnished to IDA not: later than September 30,1983 (para. 4.06);

(xiv) GOS will make timely allocations of fertilizers, pesticides,herbicides and other necessary recurrent inputs in sufficientquantities to project entities and furnish quarterly reports toIDA in a format acceptable to it; GOS will prepare and submit toIDA no later than September 30, 1984 an action program emanatingfrom studies conducted by it on the ways and means required toensure timely and adequate financing of foreign exchange needs ofproject activities (para. 4.07);

(xv) SGB will maintain a local currency account with the Bank of Sudanand GOS will make quarterly transfers cf funds to this account inaccordance with the provisions in the AWP (para. 4.08); likewisefor the MOAI(I) in respect of irrigation maintenance expenditures(para.4.09). SGB wi:Ll have access to a line of credit from theBOS to cover its working capital needs (para. 4.08);

(xvi) GOS will make arrangements for adequate and timely supply offuel in accordance w.Lth estimates incorporated in tlhe AWP (para.4.10);

(xvii) SGB will establish a Water Management Advisory Unit no later thanDecember 31, 1983 (para. 4.13); the operation of minor canalswill be transferred f-rom SGB to MOAI(I) in a phased manner duringthe first four years of the project (para. 4.17);

(xviii) Machinery hire rates and land and water charge rates will bereviewed annually and based on principles acceptable to IDA; landand water charges will be announced no later than May 1 each yearafter consultation with IDA (paras. 4.22, 6.03 to 6.05);

(xix) GOS will cause SPTC t:o enter into a tariff agreement: with SGB andMOAI(I) acceptable to IDA for the period up to June 30, 1988, nolater than June 30, 1.984 (para. 4.21);

- 51 -

(xx) GOS will arrange for financing by ABS of credit operations forpurchase of 75 tractors and associated implements by tenants nolater than June 30, 1984 (Iara. 4.23);

(xxi) GOS will furnish, during the Project implementation period,monthly progress reports, by telex, in a format satisfactory toIDA and a Project Completion Report within six months of thecompletion of the Project (para. 4.24);

(xxii) Cotton prices for producers based on criteria acceptable to IDAwill be announced no later than December 1 each year afterconsultati.on with IDA (para. 5.10);

(xxiii) Wheat prices for producers based on criteria acceptable to IDAwill be announced no later than November 1 each year afterconsultation with IDA (para. 5.12); and

(xxiv) SGB will ensure, in consultation with IDA, that its financialstatements for the year to June 30, 1983 reflects only usefulassets and related liabilities necessary for its futureoperations (para. 6.08).

8.02 The following actions will be conditions of Credit effectiveness:

(i) Execution of a Subsidiary Loan Agreement between GOS and SGB(para. 3.39);

(ii) Evidence, satisfactory to IDA, of the availability of funds fromother cofinanciers of not less than US$50 million (para. 3.40);

(iii) Appointment of Chairman, PPC and Director, RPMU (para. 4.04);

(iv) Enactment into law of the proposed revisions to the Gezira SchemeAct (para. 4.14); and

(v) Transfer of the operation of minor canals for one sub-divisionfrom SGB to MOAI(I) (para. 4.17).

- 52 -

SUDAN

GEZIRA REHABILITATION PROJECT ANNEX 1ProJiect Component by Tine

(LSD Million0

TotalBase Costs ---------------

(US$83/84 84/85 85/86 86/87 87/88 LSD Million)

A, IRRIGATION 12.6 8.9 4.8 1.1 0.6 28.1 21.6B. DRAINAGE SYSTEM 2.1 11.6 7.7 5.2 3.3 29.9 23.0C. PUMPING STATIONS 1.7 2.3 4.5 - - 8.5 6.5D. SENNAR DAM 1.7 2,6 1.1 - - 5.5 4.2E. SGB AGRICULTURAL MACHINERY AND EGUIPHENT 1.7 3.7 4.0 3.8 2.9 16.0 12.3F. EXTENSION,FARMER TRAINING, AND RESEARCH 2,3 2.2 1.5 ^.7 0.6 7,2 5.6G. WORKSHOPS AND FUEL SUPPLY

505 8.9 3.5 0.2 D.0 0.0 12.6 9.7TRRIGATION DEPARTMENT MOAI 2.5 5.9 0.3 - - 8.7 6.7

Sub-Total WORKSHOPS AND FUEL SUPPLY 11.3 9.4 0.4 0.0 0.0 21.2 16.3H. YEHICLES

SGB 7.3 3.6 3,2 1.7 1.7 17.6 13,5IRRIGATION DEPARTMENT MOAI 3.0 2.1 0.7 0,7 0,7 7.2 5,5

Sub-Total VEHICLES 10.3 5.7 4.0 2,4 2,4 24.7 19.0I, ROADS 1.8 1.1 2.1 1.1 - 6.0 4.6J. TELECOMMUNICATIONS 3,7 5.4 5,0 1.2 - 15.3 11.8K. GEZIRA LIGHT RAILWAY 2.3 2.4 0,5 0,6 0.6 6.4 5.0L. GINNERIES, COTTON HANDLING, AND STORAGE 12.2 8.1 5,7 0.9 0.9 27,7 21.3M. SCHISTOSOMIASIS PROGRAM - 0.8 1.3 2.0 3.8 7.8 6+0N. RURAL WATER SUPPLY 3,5 3,9 4.2 4.2 4,2 19.9 15.30. STAFF HOUSING

SGB 2.9 2.7 1.3 1.0 0.9 8.9 6.8IRRIGATION DEPARTMENT MOAI 1.1 2.1 - - - 3,2 2.5

Sub-Total STAFF HOUSING 4.1 4.8 1.3 1.0 0.9 12.1 9.3P. REHABILITATION PROJECT MANAGEMENT UNIT 1.8 1.2 1.2 0.8 0.7 5,7 4,40. SG MANAGEMENT INFORMATION SYSTEM 1.0 1.0 2.4 0.5 0.2 5.0 3,9R. TRAINING 1.0 1.6 1.3 1.0 0.5 5,5 4,2S. OTHER TECHNICAL ASSISTANCE 0.8 0.7 0.5 0.3 0,1 2,4 1,8T. STUDIES 0.6 1.1 1.1 0.3 - 3.2 2.4

Total BASELINE COSTS 76.2 78.5 54.6 27.2 21.6 258.2 198.6Physical Contingencies 7.5 8.3 5.6 2.8 2.3 26.6 20.5Price Contingencies 6.7 26.9 33.1 23.1 24.4 114.1 43.6

Total PROJECT COSTS 90.5 113.7 93,3 53,2 48.3 398.9 262.7

Taxes 15.8 17.0 12.5 5.6 4.9 55.8 36.9Foreign Exchange 55.0 64.1 51.8 213.8 26.8 226.6 149.8

aMlAN

GEZIRA REHA8IITATION PRUECT

Oar-ent Financial Prices

Project Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1990/91 a/ 1995/96 a/

Financial Financial Financial Financial Financial Financia Financial Flancial

ELS COI(DNPrice LLNT cif N. Europe (US$/tn) 2,460.0 2,747.7 3,036.0 3,276.7 3,522.1 3,784.0 3,899.1 3,899.1

Price LINr fob Port Sudan (") 2,360.0 2,640.2 2,921.0 3,154.8 3,392.8 3,646.9 3,762.0 3,762.0

Em-Ginmery Price Lint (ISd/tn) 2,105.8 2,698.5 3,340.5 3,989.5 4,646.4 5,435.0 5,609.5 5,609.5

E-Ginnery Price Cotton See C) 105.8 129.8 169.4 212.2 224.8 241.1 250.4 240.2

Fanrate Price Seed Cotton () 739.4 950.5 1,187.4 1,428.5 1,654.2 1,926.1 1,991.1 1,985.0

MS CottonPrice LLNT cif N. Europe (US$/tn) 2,050.0 2,289.8 2,530.0 2,730.6 2,935.1 3,153.3 3,208.1 3,208.1

Price LIN1 fob Port Sudan (") 1,950.0 2,182.3 2,415.0 2,608.7 2,805.8 3,016.2 3,071.0 3,071.0

Ex-Ginney Price Lint (LSd/tn) 1,729.0 2,218.6 2,749.0 3,285.0 3,827.6 4,479.2 4,562.3 4,562.3

Ex-Ginnery Price Cotton Seed () 105.8 129.8 169.4 212.2 224.8 241.1 250.4 240.2

Faragate Price Seed Cotton () 578.9 745.5 934.7 1,127.6 1,303.8 1,516.4 1,548.8 1,542.5

Sorgho- Price fob Mexdcan Gulf Ports (US$/tn) 152.1 179.5 209.2 223.4 238.9 255.3 259.3 259.3

Price fob Port Sudan (") 180.1 209.6 241.4 257.6 275.2 293.7 297.6 297.6

Fanrate Price (LSd/tn) 198.4 231.2 301.0 356.0 412.7 480.3 487.4 487.4

WheatPrie fob Canadian Thunder (US$/tn) 166.5 185.9 206.1 220.8 236.6 253.5 258.6 258.6

Price cif Port Sudan (") 197.5 219.2 241.7 258.5 276.7 296.0 301.1 301.1

Farn,te Price (LSd/tn) 332.3 370.5 452.0 531.1 612.2 709.1 720.0 720.0

GcaudmitPrice cif Europe, SNloed (US$/tn) 521.6 669.9 833.5 893.2 957.6 1,026.2 1,048.0 1,018.2

Price fob Port Sudan (") 477.6 622.6 782.9 839.5 900.7 965.9 987.7 957.9

Faragate Price LrShell (LSd/tn) 232.5 310.5 451.0 537.0 626.3 733.5 752.3 726.7

PesticidePrice cf Port Sudan (LSd/fd) 40.0 62.4 81.6 104.3 140.6 162.1 207.4 263.6

(Pt-Site Applfed Price (LSd/fd) 60.0 89.5 116.4 148.1 196.3 227.4 281.9 349.3

Urea Price fob N. Europe (US$/tn) 196.2 210.4 239.3 269.9 320.1 333.1 377.6 391.8 x

Price cif Port SEdan (') 241.2 255.4 287.7 321.7 355.0 391.3 435.7 450.0 ''

Fanrgate Price (LSd/tn) 305.6 437.8 544.2 665.3 789.0 938.0 1,034.1 1,064.9

TSPPrice fob US Gulf (US$/tn) 169.7 179.6 206.1 225.7 245.0 265.8 277.9 277.9

Price cif Port Sudan (") 214.7 224.6 254.5 277.5 299.9 324.0 336.1 336.1

Farsgate Price (LSd/tn) 268.6 377.2 470.4 561.9 653.5 762.1 787.0 787.0

01/04/83 a= In 1987/88 constant prices.

- 54 -ANNEX 3.1

SUDAN

Gez:Lra Rehabilitation Project

Estimated Price Contingency and Foreign Exchange Rates

GOS/Project EntitiesFiscal Year (FY) a/ 1 9 8 3 / 8 4 b/ 1984/85 1985/86 1986/87 1987/88Project Year (PY) 1 2 3 4 5

Equipment, Civil Worksand Services

(a) Foreign exchange 1.2.0 7.5 7.0 6.0 6.CIcosts

(b) Local currency costs

(i) Wages and SalariesPublic Sector 9.0 6.0 6.0 6.0 6.0

(ii) All Other 36.5 21.0 19.0 16.5 15.Ci

Estimated Exchange Rates

Rate - LSd to US$1 1.30 1.45 1.60 1.73 1.88

a/ July 1 to June 30 each year.b/ The price contingency rates for 1983/84 are calculated from the baseline

date (end March 1983) to the mid-point of FY1983/84 (December 31,1983). Thereafter, price contingency rates are calculated to themid-point of each fiscal year.

c/ Exchange rate of US$1 = LSd 1.3 effective November 15, 1982.

Mm

G3ZIRA R8AILrYAT1N PRWlCT

S8dan GCezira Bord's e sn] E" eeiture Acaomt(LSd'' sCurrent) _

Projera Year Year 0 Year I Year 2 Year 3 Year 4 Year SFiscal Year b/ 198ZV83 1983/84 1934/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93

FARtMSR an9N AaAhT

Sev Fros Sale of Lint and Seed 155,360,010 198,000,000 276,332,400 357,582,500 435,893,400 551,479,290 603,842,200 608,989,600 613,858,100 613,684,100 613,510,100

Cotton Poduction Cast.Lnt-ed by SGB

1. Lanod Prepration and CropCSlti,ation Casta:

Agri-Iltoral Mad,iimry 11,973,000 16,472,000 19,621,000 22,940,000 26,118,000 29,760,000 29,760,000 29,760,000 29,760,003 29,760,000 29,760,000S.eds 1,175,000 1,310,125 1,589,775 1,90,80D 2,160,OD0 2,419,2D0 2,419,2D0 2,419,200 2,419,2D0 2,419,200 2,419,200

Mailca.l for Seed Treatnt - 132,000 159,000 187,000 215,000 246,000 246,000 246,000 246,000 246,000 246,000

Fertilize.e 17,932,000 25,754,01) 33,728,000 47,552,000 60,930,03) 77,291,000 77,291,000 77,291,000 77,291,000 77,291,000 77,291,0:3

Herbidides 5,762,000 9,276,000 14,541,003 22,012,000 29,494,090 34,023,000 34,023,000 34,023,003 34,023,000 34,023,103 34,023,000

Pestfides 26,400,000 38,237,000 50,231,090 65,001,000 86,038,000 98,817,00 98,817,030 98,817,09 98,817,000 98,817,000 98,817,03)Cotton Stalk Pull1rg 2,585,030 2,882,275 3,497,505 4,181,760 4,752,000 5,322,240 5,322,240 5,322,240 5,322,240 5,322,240 5,322,240Water (haffinn 1.269,000 1,307,070 1,385,748 1,499,472 1,590,192 1,6Y4,800 1,684,800 1,684,800 1,684,800 1,684,890 1,684,800

Total 67,096,000 95,370,470 124,753,028 165,274,032 210,197,192 249,563,240 249,563,240 249,563,240 249,563,240 249,563,240 249,563,240

2. Seed Catton Expe-sen Incurreo by 982:

Cotton Pidckig Ado,- 11,680,000 13,023,200 17,580,882 22,143,528 26,569,083 32,465,261 35,158,435 35,158,435 35,158,435 35,158,435 35,158,435Ademrtini,g for Pickers 425,820 438,595 464,995 503,156 533,598 565,344 565,344 565,344 565,344 565,344 565,344Cotton Sacks and Tdne 3,769,600 4,449,040 5,954,857 7,556,437 9,138,989 11,443,360 12,392,651 12,392,651 12,392,651 12,392,651 12,392,651

ColUeciog Statioce 939,840 968,035 1,049,630 1,136,822 1,205,601 1,277,329 1,277,328 1,277,328 1,277,328 1,277,328 1,277,328

Tranopoot of Seed Cotton toGinnerits 3,856,192 4,5C4,126 6,037,853 7,651,505 9,240,860 11,521,263 12,477,016 12,477,016 12,477,016 12,477,016 12,477,016

Total 20,671,452 23,382,996 31,08B,217 38,991,447 46,688,128 57,272,556 61,870,774 61,870,774 61,870,774 61,870,774 61,870,774

3. Girdn arl SBaliOo Costa 15,132,082 17,772,621 23,072,825 238,732,262 34,082,664 41,385,886 43,723,763 43,723,763 43,723,763 43,723,763 43,723,763

4. Lint Cotton aqenoses - Trawsport6 Hladliop to Port Suden 3,051,840 3,523,829 4,731,855 5,987,516 7,219,765 8,957,915 9,701,024 9,701,024 9,701,024 9,701,024 9,701,024

5. Cotton Seed Nqmoree -Saaks Twior 1,984,123 2,341,600 3,134,135 3,977,072 4,809,994 6,022,821 6,522,448 6,522,448 6,522,448 6,522,448 6,522,448

6. Crop Irrsa- 960,000 988,800 1,166,256 1,329,393 1,488,596 1,720,680 1,863,420 1,863,423 1,863.420 1,863,420 1,863,420

7. Other B,er-s:

Rat Cpsig, 423,000 435,690 461,916 499,824 530,064 561,600 561,600 561,600 561,600 561,600 561,600Mi-ollseea Production FpeKFee 292,200 300.966 320,502 346,869 367,855 389,740 389,740 389,740 389,740 389.740 389,740

Total 715,200 736,656 782,418 846,693 897,919 951,340 951,340 951,340 951,340 951,340

Total Cotton Production Costa

Ienawred by 8G 109,610,574 144,116,971 188,729,734 245,138,415 305,384,259 365,874,438 374,196,009 374,198,009 374,196,009 374,196,009 374,196,009

Lend d Water Charges o Cotto c/ 12,540,0CO 20,535,372 31,679,776 41,303,032 48,325,042 57,541,329 59,117,554 62,229,595 65,055,831 63,866.715 63,721,205

Total Reorivable on CottonPFre Fao,ers 122,150,574 164,652,343 220,408,509 286,441,497 353,709,302 423,415,768 433,313,563 434,425,604 439,251,840 438,062,724 437,917,214

Net Payable to Farzers 33,209,426 c/ 33,347,657 55,923,891 71,141,003 82,184,098 128,063,433 170,528,637 172,543,996 174,606,260 175,621,376 175,592,886

* Natwee en,, er

- 56 -

ANNEX 3.216 3 ze 2 of Z

86m 89aira elsms 7 6d rumLt,as e.,B..d'OOO L- t5 F lt - t(1,5850D. 0-e.t ) ±7

Projct Y_ Yer 0 Yr I Y. 2 Yer 3 Yr 4 Y y 5FicaL '6%r b/ 19283 1963/84 1984/85 1965J86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93

S0'. N6'f 8EV023E Aa21r

8-e Fss, I.d ed Ibter Cher

A- PeLoble Flu nl1 Cprs c/ 23,370,000 39,058,044 61,819,562 83,896,86 102,428,079 L22.5,88049 125,946,034 132,576,074 133,597,2Z3 136,063,872 135,753,872

L-a: eFdumetd LU-1acthble d/-tr 8,179,500 11,717,413 15,454,891 16,779,377 15,364,212 12,258,f85 12,594,609 13,257,609 13,859,721 13,606,387 13,575,387

Ne.t 8ee Fx Ld ed8t4er C lase 15,190,500 27,340,631 46,364,672 67,117,509 87,063,867 110,329,245 113,351,485 119,318,485 124,737,485 L22,457,485 L22,178,485

00025 0,ehea C-ot

1. COaptor I tss

Di-'. torP- tnineL 70,0Z0 72,100 76,440 80,993 85,S8D 91,00 91,0Z0 91,00D 91,000 91,0ZD 91,000Staff alae, 1 asd

SALLs 5,500,003 5,665,0Z 6,006,00D 6,363,502 6,748,50 7,156,03O 7,L50,0LD 7,150,O00 7,150,OM 7,150,0L0 7,150,000O-er lis 500,013 515,0C0 546,0O 578,502 613,500 650,030 650,0L 650,000 650,0Z0 650,00D 650,0LOy-sl1, Y4d Calntibtie 800,000 824,0C0 873,600 925,60D 981,600 1.04,000 1,040,000 1,040,000 1,040,000 1,040,000 1,040,000

7bt1 6,870,0C0 7,076,100 7,502,040 7,948,590 8,429,490 8,931,000 8,931,000 8,931,000 8,931,000 8,931,000 8,931,000

7. Cp-ter II EY

VehicLe Ope-ati-, C-to 1,530,000 2,407,000 3,8%,003 5,761,0C0 8,063,000 10,705,0C 10,705,000 IC,705,0Z0 10,705,0C0 10,705,0_0 10,705,000R0d imta - - 1.111,0L 0 2,611,000 3,018,000 3,418,000 3,418,000 3,418,000 3,418,000 3,418,000 3,418,DOO

,d11di,g M6loter-re 860,090 1,032,00 1,165,000 1,418,000 1,780,0Z0 2,232,L10 2,232,030 2,232,00D 2,232,402 2,232,000 2,232,000Utilitit 650,000 702,375 1,517,050 2,476,475 2,716,075 2,956,325 2,956,325 2,956,325 2,956,325 2,956,325 2,956,325A1it FP 20,00 20,600 21,484 23,14D 24,584 6,OW 26,00 26,00 Z6,002 26,0Z0 26,000s,rci,tit- - Vebile 1,530,0C0 2,260,1O0 4,525,000 5,923,0D0 7,421,00 8,523,0D0 8,523,0C 8,523,000 10,190,200 10,557,000 10,745,000

- 951ldi0W 300,0C0 312,00D 336,300 399,7M0 381,300 403,500 403,500 403,50D 403,50D 403,520 403,503IOtee0, 1 06rlWkt Capital 595,8C0 674,165 907,376 1,214,292 1,441,866 1,696,100 1,696,100 1,696,100 1,696,100 1,696,L10 1,696,100

Total 5,485,800 7,406,140 L3,389,566 19,786,607 24,845,781 29,959,925 29,959,925 29,959,925 31,626,925 31,993,925 32,181,925

TatL SG D1 Costa 12,355,820 14,482,240 20,891,606 .7,735,197 33,275,271 36,80,925 38,890,925 31,884,925 40,557,925 84,924,925 41,112,925

8ti- D99rt oe f M15Ctst 10,750,0O 13,761,030 18,986,030 24,859,0Z0 29,573,00D 33,292,031 34,827,0C0 35,124,0C0 35,980,0OO 36,531,030 36,595,000

It-t CaB . ProjectL_ re 0 t _ 62,000 4,679,000 8,362,000 11,568,000 12,8933000 13,777,000 13,777,00 U3,777,000 L3,777,000 13,777,000

Di0cd.d to G5 - - - - 5,022,320 5,168,560 5,168,560 5,168,560 5,188,584 5,188,560

T7tal Clot. 23,105,80 28,305,240 44,556,606 63,956,197 74,416,271 90,098,245 92,663,485 92,90,485 95,503,485 96,421,485 96,673,485

Eo (Leflcit) e/ of ie9 (7,914,502) (964,609) 1,808,066 li,161,312 12,647,596 20,231,03D 20,668,000 26,338,000 29,234,05 26,036,000 25,505,000Orer Y4sss refor /mF6COH] 6l.ti-

Z-t 6otJti-e/ 7,914,500 7,811,609 9,272,934 S,389,689 5,L21,404 - - - -

ft (09f0it) of FE - 8,776,218 11,081,0LO 1U,551,001 17,769,00 .20,231,000 20,668,000 256,358,0D0 29,234,0D0 26,036,0OD 25,505,0CO

L-d ad 084eV Csa. by Cop (per fea)

ottl- 23.5 f/ 47,0 70.0 30.0 105.0 125.0 129.0 35.0 141.0 139.0 139.08assc 140 f/ 23.0 35.0 C5.0 53.0 63.0 64.0 63.0 71.0 69.0 69.0

Ct 18.0 / 29.0 44.0 i6.0 66.0 78.0 80.0 85.0 88.0 87.0 87.0la 7.0 / 12.0 18. 12.0 26.0 31.0 32.0 34.0 35.0 35.0 35.0V09-bl6 28.0Of/ 47.0 70.0 910.0 105.0 125.0 1L9.0 135.0 141.0 139.0 L39.0PrIer , 7D7.0 L2.0 18.0 2.0 26.0 31.0 32.0 34.0 35.0 35.0 35.0

at Co.oc-tos- f to a co.stat to curre-t fer Project years I thcough 5 Is itde .. ito local cod ioe-rofti.oIlt of flti-. Thereafter -- nt-t year 5 price- -re ed.

b/ Fiscal year r.o fro. J.uy I to Joo 30.

c/ The lnd aed eater rhargee are it,eaded tr ro-er eater costs, SGB overteed o.sts (ieclodiog an a.somed 102 a bs,l had debt espeosel aodo :.to of capital. It aso. .lrlod.ecosts cf replacing eilstig .ssete .eces.itated by i-s.ffili.ot depreciatinn charges in she pest.

d/ Ased bad debt rots I. project year 0 - 35:; Project year 1 - 307; Project year 2 - 252; Project Yeer 3 - 201:; Project year 4 - 157; Psoject year 5 - 10%.Sad debts are assumed to be a repes..ibility of SGB fro. Project year 5 -soards.

e/ Until yields increase it is aesemed GOS -etId provide sab-eoti..s nn the differe-re bet-ees the assed bad del,t rate 00 Ied and eater charges for the applicable year(see Nnte c/ sbove) and leb bad debt rate 0a Project year 5 (.epersed to be 10).

f/ Land *ad eater raCes for 1982/83 vere annnnnced by GOS ir 1981/82.

ANNEX 3.3

GEZRA ROMMtIN l ta

9zim Cezira BoardProtectd Cush Fm Lkder tte Projont

(ISdUtOt's Curteit) a/

FY 1 2 3 4 5FY 1983/84 1984/85 1985/86 1986/87 1987/88 1968/89 1989/90 1990/91 1991/92 1992/93

-. Fr Gcr .ent for- Capital Costs b/

Paopi98 Statios - 2,000 3.99 3,366 - - - _ _ _Agriculturnl Machinery - 1,804 4,723 5,576 5,716 4,196

* Seed Proga - 403 337 - -Ptlot Schtes6 - 436 524 - - - - _ _ _Workhp - 10,386 4,760 179 47 50 - - - _Vehicles - 7,268 3,010 2,518 - -lads - 2,196 1,530 1,823 - - - - - -

Ce-ira Light Rail-y - 2,733 3,503 864 1,235 1,'8Ginneries 205 13,443 10,03 8,304 - -Cotton HonUlirg ard Storage - 781 1, 32 1,450 1,6'9 1,953Staff Housin - 3,649 3,923 2,198 2,054 2,240M1m0 143 133 608 2,770 - - - _ _ _Training 5 1,171 2,359 2,39 2,134 1,230 -Other Technical Assistance 153 762 1,059 796 596 235 -

506 47,024 40,986 36,433 13,471 11,192 - - -

- Fr. Sale of Cotton Lista.l Seed 198,000 276,332 357,583 435,893 55,479 603,842 648,970 613,836 611,864 613,510

- Subwertions c/ 7,812 9,273 8,390 5,121 - - - - -

2. Fraz Fns for LTad antWater Chargeson Non Cotton Crops (mot) d/ 6,806 14,685 25,815 38,739 52,788 54,234 57,088 59,681 58,590 58,457

TOrAL INF101 213,124 347,314 432,774 516,186 617,738 6f,268 666,0'8 673,539 672,274 671,967

1. On Investoert Cost for S9- 505 47,024 40,986 36,433 13,471 11,192 - - - -

2. tn Replsc.t of SGB's isiatig 6,817 8,765 10,411 12,041 13,W47 13,847 19,517 22,413 19,215 L8,694Assets

3. For Cperatinrg EXpenes:- Land Prepeastion and Crop 95,370 124,754 165,274 210,197 2Z,563 249,563 249,563 249,563 249,563 249,563

Cultivation Costs- Seed Cotton Sepeeses 23,363 31,C88 36,991 46,698 57,273 61,871 61,871 61,871 61,871 61,871- Ginnirg and Baling Ctsts 17,773 23,C73 23,732 34,013 41,366 43,724 43,724 43,724 43,724 43,724-Other 8Xeones 7,391 9,815 12,141 14,416 17,653 19,037 19,01 19,037 19,037 19,037- Chapter I 5Epenses 7,076 7,502 7,949 8,429 8,931 8,931 8,931 8,931 8,931 8,931- Chapter II Expenases 7,406 13,390 19,787 24,846 ,%960 2,960 3,960 31,6f7 31,994 32,182

150,599 2t9,622 272,874 338,6'9 404,766 413,t06 413,(B6 414,753 415,120 415,3t0

4. To Farners to settle 33,348 55,924 71,141 82,184 128,063 170,53) 172,544 174,606 175,621 175,393Inlividuel Cotton Accessots

5. To Covernont as 8epey.rMt of Loan e/ 92 6,995 12,52 17,236 19,277 20,98 20,98 20,S8 20,398 20,98

6. To OAkI Irrigation Delontoast 13,761 18,986 24,8'9 29,573 33,292 34,827 35,124 35,980 36,531 36,95for Water C2rsrges

7. Capital Charge - Otvidend6 - - - - 5,022 5,189 5,189 5,189 5,189 5,189

TOTAL OOIFIDH8 213,124 347,314 432,774 516,186 617,736 669,38 666,036 673,53 672,274 671,967

*WNIAL t1SXt88 (DtFICfl3 tF - - - - - - - - - -REIM OVER atirlTFl

a/ Cbonersion frne c-eta,t to cernt for Projont years I tlro,1h 5 is mae using local and international rates of inflatbcn. luredter Projat ypear 5 Inflation rate iU osed.-/ A lag of I fiscal year is ase in ttot cases beten cafitment sad dieburset.e/ To cser bad debt losess in Projert years 1 to

4abce the soealy mecFted 107.

N/ Set of all -emrerad lm-a,ts.e/ Ca axtount lent repsyabin over 20 years at 147.

S DAN

GEZIRA REHABILITATION PROJECTFarnrs' Incrones

Constant 19_ 83 Cropping year LSd/'Tenancy

Year 1 ! Year 6 2/ Year 6 2/Without Project Without Project With Project

iNet Returns to Tenancies 3/ Net Returns to Tenancies 3/ Net Returns to Tenancies 3/Farm Cropping No. of Operated by Operated by No. of Operated by Operated by N.o. of Operated by Operated by[8del Pattem Feddans Hired Labor Family Labor Feddans Hired Labor Family Labor Feddans Hired Labor Fanily Labor

1. Southern Group ELS Cottao 5 4763 55() 5 684 770 5 1,226 1,357_ >Xnagil (Crnrodnts 2 82 102 2.5 188 218 2.5 34S 375

(22,000 tenancies) Sorghuan 3 72 87 3 124 151 3 145 177Vegetables 1 58 72 1 73 86 1 173 211Fodder 1 26 29 1 32 __ 47 __ 2 262 ___ 299

T(7iALS 714 840 1,101 1,272 2,151 2,419

2. Southern Group ElS Cotton 5 476 550 5 684 770 5 1,256 1,357- Gezira Wheat 5 5 18 (26) 5 330 345

(28,000 tenancies) Groundnuts 2 82 102 2.5 188 218 2.5 345 375Sorgisn 3 72 87 3 124 151 3 145 177Vegetables 1 58 72 1 73 86 1 173 211Fodder I 26 29 I 32 47__ 2 _ 262 299

TI7FAis 719 858 1,062 1,246 2,511 2,764

3. Northern Group Eas Cotton 5 47S 550 5 684 770 5 1,256 1,357%nagil and Gezira 'heat 5 5 18 5 (39) (26) 5 330 345(40,01iO tenancies) Groundouts 2 82 102 2.5 188 218 2.5 345 375

Sorghun 3 72 87 3 124 151 3 145 177

TIIAlS 635 757 957 1,113 2,046 2,254

4. Rest, Neialy iEs! Ig Cottoni 5 272 379 5 414 553 5 999 1,17984nk Jheat 5 5 18 5 (39) (26) 5 313 345

(12,0(10 tenancies) Crourdnuts 2 82 102 2.5 188 218 2.5 345 375Sorghunm 3 72 87 3 124 151 3 145 177

Tortl Tenancies 102,0^0 TOTALS 431 586 707 896 1,819 2,376

n !0

1/ FY 1982/83.

2/ FY 1988/39.

3/ Uased an estirates of nardays required if labor hired aral supervised or if work done by family labor oily. F.nally labor priced at LS,d2.5 per marray, ard therefore oet retouns to tenancies are arrived at afterdeducting hired Libor and notional farily labor costs.

* 59 * ANNEX 3.42iT2bT Zf 3

SUDAN

GEZIRA REHABILITATION PROJECT

ParserS' IscowS.Parsers Sediets By Crop I - Su_ary

(Led 1983 ConSt.nt)

EXTRA LONG STAPLE HEDIUM STAPLECOTTON COTTON W N E T CROUNDNUTS DURA VEGETABLE FODDER(5 fdn-. (5 fd..) (5 fdne) (2.5 fd.s) (3 fdn-) (I fdna) (I fdn.) 2/

1. FIscal Year 198B/89 - ProJect Year 6 (Without Project) - (LSd)

REVENUE

Value of Production

- Cash (LSd) 2,522 2,301 357 577 129 648 150- Sushsltn-ce (LSd) - - 357 145 385 162

Total Val.e of Prodhition 2.522 2.301 713 721 513 810 150

COSTS

CoGa. of Prodoctlon 1,676 1,742 726 445 2S9 626 69

FARIIERS CASH INCOME AND NET RETURNS

Tenants Cash In-ate Assnaing TenantHires LAbor/ha- 846 559 (14) 276 224 185 82

Tenants Cash Inco.. ANsusing TenantPerfEatn Labor Operstion/han 1,145 878 37 318 426 273 113

o. of Man Days P.l in by Tenant

- Adonaing Te-ant PerforoeLabor Operatlono 150 130 25 40 110 75 25

-AasninH Tenanl Hi ret Labor 65 50 10 35 40 45 20-Rte/Handay 2.50 2.30 2.50 2.30 2.50 T.50 2.50

Ipotd Cos- of Ta-nt Eff-ort

Asnoning T.n.n. Hires Labor 163 125 25 88 100 113 50Aosning T.nan. PerCorrs

Lrbor Opett-ons 375 325 63 100 275 187 63

Retnrs to T n.ec A.sefiog TerantHires Labor/han 684 434 (39) 188 124 73 32

Hee-ro to To..et Assesing Tenoneperfor,so Labor Oporatoons/har 770 553 (26f 218 151 86 47

Return to Te...t A.s.oing Tenantlir.n Labor/Ode 137 - 87 (8) 76 42 73 32

Hetorn to TenaHt As-siog TenantPrrforas Labor Cper-tinns/fdn 154 111 (6) 87 51 86 47

ER. Fiscal Year l988/89 - PrsJ.nt yea 6 (Witb P-jeet) (LSd)

iREVENUE

oelae of Prnducti-n

- Cash (L8d) 3,252 3.103 594 761 260 900 400- Ssbelste..n (LSd) - - 594 191 390 225

Tntal Valor of Prndoction 3,252 3,103 1,188 951 650 1,125 480

COSTS

Casts of ProductL4s 1,839 1,955 808 519 381 791 112

PARM0RS CASH ISCOXE ADOl NET RETURNSS

Tenants Csbh Incose Assssi.g TensstHires Labor/bah 1,413 1,149 380 433 270 335 349

Tenants Cash Itcose A.s ing T-santPerform Labnr Op-retion/har 1,757 1,529 407 475 452 423 399

No. nf en Days Put Is by Tesn.t

- Aes-sieg Tesrat PerfermsLabsr Op'erat iss 160 140 25 40 110 85 40

- Aealasts Tenan.t hires LaSbr 75 60 20 35 50 65 35- Uren/llaMdeo 2.50 2.0 2.50 2.50 2.50 2.50 2.50

Ip.etd Cost of lenats Efforts

- A.s.antg Tenant Hires Laber 188 150 50 s8 125 163 88- AsgT T-e-n- Performs

Labnr OperHtin.s 400 350 63 100 275 213 100

Reture to Te-tn A&ouAi.g Ten-ntHires Labor/hee- 1,226 999 330 345 145 173 262

Retsre to TeH..t A.ssoing TonastPerfores Labor Opereti-es/hev 1,357 1,179 345 375 177 211 299

Retmro to Tees-e Aenoning T.en.tHire. L.bor/-Od 246 200 66 69 49 173 131

.ettro to Ten_nt Ases:%ig TenantPerfnres Labor Opnr tione/fdn 272 236 69 75 59 211 150

1I Cr0p data shone in this table ie pre h-aeh..t/ With p-nje-c sitiatln - 2 fdne.

SUDAN

GEZIRA REHABILITATION PROJECT

Farmers' incomesIncremental Farmers Budgets By Crop 1/ - Summary

Year 6 With and Without Pro'ect(Lsd 1983 Constant)

EXTRA LONG STAPLE MEDIUM STAPLECOTTON COTTON W H E A T GROUNDNUTS DURA VEGETABLE FODDER(5 fdns) (5 fdns) (5 fdns) (2.5 fdns) (3 fdns) (I fdns) (I fdns)

REVENUE

Incremental Value of Production

- Cash (LSd) 730 802 237 184 112 252 330- Subsistence (LSd) - - 238 46 5 63 _

Total Value of Production 730 802 475 230 137 315 330

COSTS a/

Incremental Costs of Production

- Machinery Operations - - 9 - 8 - -- Labor 20 20 - - - 20 30- Other 134 180 77 73 87 140 ____ 29

Total Costs of Production 154 200 86 73 95 160 59

Incremental Tenant's Cash Income 576 602 389 157 42 155 271

Incremental Number of Mandavs 10 10 8 - 8 20 15Put in by Tenant

Rate/Manday 2.50 2.50 2.50 - 2.50 2.50 2.50

Imputed Cost of Tenant's Efforts 25 25 20 - 20 50 38

Incremenital Return to Tenant/ 551 577 369 157 22 105 233Hawasha

Incremental Return to Tenantt/ 110 115 74 63 7 1(5 233Feddan

a/ The analysis assumes a tenant's family contributes 20% of the total tenancy labor requirements.

- 61 - ANNEX 3.5

CEZIRA 11A rLrATIIO9N AND MMZEATICIN PFRIEaC

Irri8tion Department - M1UPojected Cash Flows Lrder the Project

(8d'30-s Curere) Ir

PY 1 2 3 4 5FY 1983/84 1964/85 1985/86 1986/87 1987/88 1988/89 1989/90 193/91 1991/92 19q2/93

CFIJSE

1. Fr-c Coser ornt for- Capital Costs 2/

Irrigation - Regulators - 8,270 9,859 7,408 1,389 622 - - - -- Canal Maintenaree - 5,925 2,134 1,122 825 732- Drainage - 2,531 16,740 12,374 8,936 6,068

Se'nar Tam - 2,08D 3,928 2,001 -'Worlshop - 2,950 8,605 403Venicles - 2,995 1,861 - - - - - -bere19 g- 1,375 3,101 - - - - - -

- 26,126 45,628 23,3C8 11,050 6,822 - - - -

2. (to, S.B as Lard anl 13,761 18,986 24,859 29,573 33,292 34,927 35,124 35,980 36,531 36,S95Water Charges 3/

IOAL FIDWS 13,761 45,112 70,487 52,8S1 44,342 41,649 35,124 35,980 36,531 36,595

!.ri lestre Costs for:

- Irrigation ard DrainageEqaipe-t ani Works - 1R,836 32,061 22,955 1,050 6,822 - 10,135 8/ 1,010 8/

- Oter Equipnent aol Works - 4,325 11,706 403 - - - -- Vehicles - 2,995 1,861 - - - 5,936 8/ 2,9963/

- 25,126 45,628 23,308 11,050 6,822 5,S36 13,131 2,010 -

2. OperatiCg Ctsts

- Chapter ICliasfied aol I lUIasified 2,500 2,650 2,809 2,977 3,156 3,156 3,156 3,156 3,156 3,156

StaffCano1 Labor 4/ 2,407 2,785 2,594 2,709 2,871 2,871 2,871 2,871 2,971 2,R71

4,907 5,435 5,403 5,686 6,027 6,027 6,027 6,027 6,027 6,027

- Chapter TIDb Operatiroos

- Roaeires 5/ 107 119 131 143 155 155 155 115 155- Sz-nar 107 119 131 143 155 155 155 155 155 155

GeziraMlasagil Scheme- Civil

Silt Clearan^e- Orairs - 864 2,031 3,755 5,582 6,911 6,911 6,911 6,911 6,911- Canals 5,134 6,124 7,229 8,232 9,365 9,365 9,365 9,365 9,365 9,365

Weod Rsearrh 75 203 369 166 - - - - - -Maintetoance of Strurbtres 846 938 1,028 1,113 1,250 1,250 1,2501250 1,700 1,200 1

ard BoIldiogs- Electrical aod Merhanical 1,583 1,825 2,068 2,364 2,701 2,701 2,701 2,701 2,701 2,701

Paps aodl Orainage Panps- Other Operating Coats 6/ 633 1,879 3,041 3,387 3,664 3,664 3,664 3,684 3,664 3,664

8,527 12,235 16,417 19,790 22,822 24,151 24,151 24,151 24,151 24,151

Total MOAI(T) Oprating Casts 13,434 17,670 21,820 25,476 28,849 30,178 30,178 30,17R 30,178 30,178

TaLAL 1111t 13,434 43,799 67,448 48,7PA 39,899 37,030 36,014 43,309 32,188 30,17R

AN1AL EXCES3 (DEFtCIT) OFINFLOlI5 OVER CUSrFLOW 327 1,313 3,039 4,097 4,443 4,649 (893) (7,329) 4,343 6,417

a1lxAITE zXCESS (tEFiCTr) OF 7/INFLI1S OVER C7rFLfWS 327 1,640 4,679 8,776 13,219 17,868 16,978 9,649 13,992 21,409

1 nversion frmn constant tD current for Project yearn I throgsh 5 is made usfg local aol international rates of inflatben. Thereafter Project year 5 inflation rate is used.2/ A lag of of 1 fiscal year is assomed between cwitnt ard disburses,t.3/ Includes recovery of depreciatin on certain of M13l(1)s assets.

Primarily for Canal Weedirg.5,r 1/3 of total cr5t to C-elra.6 I Including MOT Vehicle inc,,enetal opatirg cost.7' Paid back to Coenrrmest or- mairtained in a "qezira Asset Replaerntr Fi'.8/ Replsent of aasets.

CFZIRA REHABILITATION PRaJFCT

Covernment of SudanTIcremental Cash Flo UrOder the Project

(ISd'(XXls Current) 11

PY 1 2 3 4 5FY 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93

Crop Taxes - - 3,409 8,364 19,274 25,229 25,229 25,229 25,229 25,229

Import Taxes - 15,823 16,971 12,515 5,605 4,896 1,416 2,752 1,252 330

Repayment of SB Loan 92 6,995 12,502 17,296 19,277 20,598 20,598 20,598 20,598 20,598

IDA Gredit ard Otter00-FinancieT's Loan 781 56,024 65,378 52,816 29,791 27,812 - -

'et Reduction in Subsidies ardGrants to Project Entities 7,949 8.364 11 264 16,695 24,147 24,147 24,147 24,i47 24,147 24,147

J3vidends fram S-B - - - - 5,022 5,189 5,189 5,189 5,189 5,189

8,822 87,206 109,524 107,686 103,116 107,871 76,579 77,915 77,915 77,915

OtrFintS

Investoents in Project Entities 2/ 1,396 83,687 101,859 77,025 35,859 28,643 4,014 2,143 1,674 1,330

Import Taxes Fbre8pne ThroughTncreaid Wheat Prouction - - 621 972 3,558 5,824 5,824 5,824 5,824 5,824

Repaymert of IDA Credit ardOther Co Financiers Loans 1164 1,235 1,388 1,535 1,638 1,709 1,743 1,743 1,743 1,743

2,560 84,922 103,868 79,532 41,055 36,176 11,581 9,710 9,241 8,897

ANIUAL IINRDNTAL EXCESS (DF.Y1CT)OF IT1S OVER =UIFML3IJ 6,252 2,284 5.656 2A,11.4 62,061 71,695 -4,998 68, T0 68,614 69,018

aJMLtAfIV INFl2NTAL F.XESS(MF'TCIT) OF INFLDIJS iER rtYlFLOS 6,262 8,546 14,202 42,356 104,417 176,117 241,110 309,315 377,989 447,007

1/ CkAwersion fron cnstart to currert For Project yerrs I tr-,ugh 5 is rrie 1rwing local ard Interutionail roates of inflarfon. 7hereafter Project year 5 tnflat Ion rate is orredr

2/ Excluds incrasetal operatDng costs of reaeere earrrwirn project ertities.

gnnAN

CFZIRA REHABILrrATION PROJECT

Goverment Increnrental Foreign Exhange Earnings Under the Project

($'000's Current) I/

PY 1 2 3 4 5FY 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93

Incremental Foreign Exhange Inflows

Increases in Export Crops - - 51,853 130,936 239 ,160 370,617 370,617 370,617 370,617 370,617

Reductiorn in Crop Imports - - 3,885 5,623 18,944 30,888 30,888 30,888 30,86 30,888

1TAL - 55,744 136,59 278,104 41,S505 4(1,505 401,505 401,505 401,505

Tncrerntal Foreign Exhange Outflows

Increases in Crop Inputs - 5,368 11,683 18,920 24,643 27,333 27,333 27,333 27,333 27,333

Iacreases in Machinery

Rurnirg Costs - 4,304 5,205 11,880 13,700 14,520 14,520 14,520 14,520 14,370

Repyment of l-rans to

Financing Agencies 895 851 868 887 895 909 927 927 927 927

TOAL 895 10,323 20,756 31,687 39,238 42,7 62 42,779 42,779 42,779 42,779

ANNUAL IIMMTAL (OD lfIr) Nr >FCREIGN MIME FARNINS (895) (10,523) 34,988 104,872 238,866 358,743 358,726 353,726 358,726 353,726 zz

aIEIATIMUVE I1w42' (DlJ3x9fNTAL)NET FCREIGN EIANE FARNI!tS (395) (11,418) 23,570 12B,442 367,3C8 726,051 1,C84,777 1,443,503 1,802,223 2,160,955

1/ Conversion fran constant to current for Project years I through 5 is made using local ard interrational rates of inflation. 'Thereafter Project year 5 inflation rate is used.

- 64 - Annex 4.1

SUDAN

Gezira Rehabilitation Project

Estimated Schedule of Disbursements

IDA Disbursement 1/…--------US$-000

IDA Quarter By End ofFiscal Year Ended Quarter Cumulative

1983 June 1983 0.3 0.3

1984 September 1983 0.3 0.6December 198:3 2.4 3.0March 1984 1.0 4.0June 1984 2.1 6.1

1985 September 19834 9.0 15.1December 1984i 2.2 7.3March 1985 2.7 20.0June 1985 7.2 27.2

1986 September 1985 4.9 32.1December 1985 2.9 35.0March 1986 6.0 41.0June 1986 3.6 44.6

1987 September 1986 3.1 47.7December 1986 6.8 54.5

March 1987 3.9 58.4June 1987 3.1 61.5

1988 September 1987 2.4 63.9December 1987 1.3 65.2March 1988 4.7 69.9June 1988 1.8 71.7

1989 September 1988 2.3 74.0December 1988 1.0 75.0March 1989 4.0 79.0June 1989 1.0 80.0

1/ Expected date of signing: June 30, 1983.Expected date of effectiveness: September 30, 1983.Expected completion date: June 30, 1988.Expected closing date: June 30, 1989.

- 65 - Annex 4.2

SUDAN

Gezira Rehabilitation Project

Categories of Expenditure

Amount of theCredit Allocated % of

(Expressed in ExpendituresCategory SDR Equivalent) to be Financed

(1) Civil Works 8,750,000

(a) carried out under 100% of foreigna contract expenditures and

35% of local ex-penditures

(b) carried out under 35% of localforce account expenditures

(2) Vehicles, equipment, 44,470,000 100% of foreignmachinery, materials expenditures, 100%and spare parts of local expend-

itures (ex-factory) and 55%of local expend-itures for otheritems locallyprocured

(3) Technical. Services 8,060,000 100%

(4) RPMU Expenses 1,860,000 100%

(5) Training 1,390,000

(a) over.seas 100% of foreignexpenditures

(b) local 40% of localexpenditures

(6) Operation and Maintenance 1,650,000 60% of localexpenditures

(7) Refunding of Project 560,000Preparation Advance

(8) Unallocated 7,460,000

TOTAL 74,200,000

Agricultural Production, Area and Yield, Gezira: 1972/3-81/2

ELS Cotton 1972-3 1973-4 1974-5 1975-6 1976-7 1977-78 1978-9 1979-80 1980-1 1981-2

Area(OOOfd) 589 589 588 381 477 474 409 446 427 381

Yield(tons/fd) 0.59 0.71 0.66 0.39 0.51 0.57 0.41 0.36 0.3 0.5

Production(OOO tonis) 348 418 388 149 243 270 168 161 128 191

MS Cotton

Area(000fd) 15 14 15 15 22 45 89 94 74 56

Yield(tons/fd) 0.59 0.9 0.8 0.34 0.56 1.1 0.74 0.53 0.47 0.6

Production(OOO tons) 9 12 12 5 12 48 66 50 35 34 1

Wheat

Area(OOOfd) 145 254 428 568 505 466 493 363 367 247

Yield(tons/fd.) 0.67 0.8 0.39 0.39 0.58 0.47 0.25 0.4R 0.25 0.4

Production(OOO tons) 295 203 167 221 293 219 123 174 92 99

Sorghhum

Area(00fif.) 2"5 301 154 341 351 355 344 327 301 344

Yield(tons/fd.) 1.0 0.75 (.5 0.62 0.66 0.35 0.43 0.5 0.23 0.5

Production(OOO tons) 295 226 77 211 232 124 148 l64 69 172

Groundnuts

Area(OOOfd.) 177 216 261 424 251 264 217 229 171 262

Yield(tons/fd.) 1.25 1.25 1.5 0.77 1.2 1.08 0.87 1.2 0.6 0.6

Production(OOO tons) 221 270 392 326 301 285 189 275 103 157

Sonirce :SC'B

EAPNA

9/20/82

SUDAN

GEZIRA REIIABILITATION PRE)iCT

Area/Yields/Production in "With" and "Without" Project Situation

Project Year Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Fiscal Year 2/ 1982/83 1983/84 1984/85 1985T86 1986/87 1987/88 1988/89

Without With Without With Without With Without With Without With Without With Without With

Extra Long Staple Cotton

Area ('000 fd) 320 320 320 320 310 310 310 310 310 310 310 310 310 310

Yield (ton/fd) 0.5 0.5 0.5 0.5 0.54 0.54 0.54 0.57 0.54 0.6 0.54 0.66 0.54 0.7

Production ('000 tons) 160 160 160 160 167.4 167.4 167.4 176.7 167.4 186 4 167.4 204.6 167.4 217

Medium Staple Cotton

Area ('000 fd) 120 120 120 120 140 140 150 150 150 150 150 150 150 150

Yield (ton/fd) 0.57 0.57 0.57 0.57 0.61 0.61 0.61 0.64 0.61 0.68 0.61 0.74 0.61 0.83

Production ('000 tons) 68.4 68.4 68.4 68.4 85.4 85.4 91.5 96 91.5 102 91.5 111 91.5 124.5

Wheat

Area ('000 fd) 275 275 300 300 325 325 375 375 400 400 400 400 400 400

Yield (ton/fd) 0.36 0.36 0.36 0.36 0.39 0.39 0.39 0.43 0.39 0.47 0.39 0.55 0.39 0.65

Production ('000 tons) 99 99 117 117 126.8 126.8 146.3 161.3 156 176.3 156 220 156 260

Groundnut

Area ('000 fd) 200 200 200 200 200 200 220 220 220 240 220 240 220 240

Yield (ton/fd) 0.65 0.65 0.65 0.65 0.7 0.7 0.7 0.75 0.7 0.8 0.7 0.88 0.7 0.95

Production ('000 tons) 130 130 130 130 140 140 154 165 154 192 154 210 154 228

Sorghum

Area ('000 fd) 300 300 300 300 300 300 300 300 300 300 300 300 300 300

Yield (ton/fd) 0.45 0.45 0.45 0.45 0.5 0.5 0.5 0.52 0.5 0.55 0.5 0.62 0.5 0.69

Production ('000 tons) 135 135 135 135 150 150 150 156 150 165 150 186 150 207

SUDANGEZIRA REHABILITATION PROJECT

Meteorological Data for Wad Medani

Period J F M A M J J A S 0 N 0 Yearly

Rainfall, average (mm) 1941-75 - - - 1 15 27 110 131 52 17 - - 354

Rainfall, average (mm) 1971-80 - - - 3 13 27 94 96 57 8 1 - 299

Absolute m-ax. daily rainfall (mm) 1941-60 - - 6 11 48 37 118 71 72 42 7 -

Number of days with rainfall > 1 mm 1941-70 - - 0.1 0.3 2.5 4.6 10.2 11.0 5.2 3.1 0.2 - 31

Temperature (°C)

mean max. 1941-75 33.4 35.1 38.3 40.8 41.4 39.6 35.8 33.4 35.2 37.8 36.5 33.6 36.7

meanr -in. 1941-75 14.0, 15.Z 18.3 21.2 24.0 24.7 22.8 22.0 21.8 21.6 18.0 14.5 19.9

average, (max. t min.)/2 1941-75 23.7 25.1 28.3 31.0 32.7 32.1 29.3 27.7 28.5 29.7 27.2 24.1 28.3

absolute max. 1941-70 40.7 43.5 44.6 46.1 46.2 45.3 43.6 41.0 40.7 41.2 40., 39.6 -

absolute min. 1941-70 5.2 3.3 7.3 12.0 15.6 16.7 18.5 18.0 17.0 13.8 8.7 4.8 -

Radiation, mean (cal/cm2 per day) 1941-75 492 545 583 604 583 562 528 529 554 528 501 480 541

Sunshine, mean (h) 1941-70 10.5 10.8 10.5 10.8 10.2 9.3 7.8 7.7 9.3 10.0 10.5 10.6 9.8

Relative humidity mean (%)

0(.00 GM<: 1941-70 38 29 22 18 30 48 68 79 72 52 37 40 44

12.00 S!MT 1941-70 18 13 10 9 15 23 39 51 42 27 19 19 24

18.00 GMT 1941-70 30 22 16 15 23 35 55 69 62 45 34 33 37

Wind speed, mean (m/s) 1941-70 3.6 4.0 3.6 3.1 3.6 4.5 4.5 4.0 3.1 2.2 3.1 4.0 3.6

Vapour pressure, mean (mb)

06.00 GMT 1941-70 8.6 7.1 6.9 7.6 13.3 19.8 23.4 25.1 24.4 19.2 ll.h 9.9 14.8

12.00 GMT 1941-70 8.8 7.1 6.2 6.8 10.9 15.3 19.9 23.4 21.6 15.8 10.9 9.6 13.0 318.00 GMT 1941-70 8.6 7.2 6.5 7.0 11.4 16.0 21.4 25.0 23.8 18.1 11.7 9.6 13.9 x

Evaporation, Eo (Pernan) (mm) 1957-68 177 189 237 256 280 282 244 206 206 204 180 171 2632 w

Source: Agro-climatological Study in the Arab Countries (1976), except for evaporation data which were supplied by the GeziraResearch Station (GRS)

* GMT = Greenwich Mean Time.

SUDAN

GEZIPA REHABILITATION PROJECT

Water Demand at Sennar for Project Year 5 - Million u'

Crops Area(fd.) J F M A K J J A S 0 N D Year

Cotton ELS 310,000 224 183 33 - - 62 175 170 274 275 255 1651

Cotton MS 150,000 23 - - 30 86 113 152 137 85 626

Wheeat 400,000 320 93 - - - - 103 263 295 1074

Groundnut 240,000 - - 290 168 208 222 97 - - 985

Dura 300,000 - - - _ _ 240 180 273 , 281 131 - - 1105 a

Fodder 100,000 - - - - - Jll 72 82 69 45 - - 379

Vegetables 501OO0 * 37 40 50 54 59 59 51 43 43 43 38 36 553

Total croprequirement 1,550,000 604 316 83 54 59 700 563 867 898 845 713 671 6373

Greenbelt domestic 25 21 25 24 25 24 25 25 24 25 24 25 292

Effective rainfall 2/ - -_- -_ _ 250 440 220 910

Losses 3/ - 69 37 12 9 9 80 38 50 78 97 82 77 638

Total at Sennar - 698 374 120 87 93 804 376 502 780 967 819 773 6393

Note: 1. Total crop requirements are at field outlet pipes and derived using factors iR Table 22. Effective rainfall equivalent of 78mm or cropped area (840,000 fd.) In July'98; 90 an In August and 44 an In September on 1150,000

cropped area.3. Losses are assessed assuming 90% conveyance efficiency.

0.S ~~~~~~~~~~~~h j 1

SUDAN

GEZIRA REHABILITATION PROJECT

Monthly Crop Water Requirements (m3 /feddan at FOP level)

Crops J F M A M J J A S 0 N D Year

Cotton ELS 724 588 105 0 0 0 200 565 548 884 889 822 5325

Cotton MIS 150 - - - - 200 576 753 1016 915 569 4179

Wheat 799 233 0 0 0 0 0 0 0 257 657 737 2683 1

Groundnut 0 0 0 0 0 1207 700 868 924 404 0 0 4103 °

Dura 0 0 0 0 0 800 598 910 936 435 0 0 3679

Fodder 0 0 0 0 0 1108 716 010 690 4i4 u 0 3/86

Vegetables 724 793 995 1075 1177 1184 1027 864 866 859 756 714 11053

Note: 1. Crop requirements are at field outlet pipe and take into account the staggered planting(chart V) dates and the requirements for initial irrigation.

2. Crop requirements are calculated using the crop factors based on GRS field measurements(CRS 1976) and the Penman EO at Wad Medani. D Z

N) 4

- 71 - ANNEX 6

Page 1 of 2

S UDANh

Gezira Rehabilitation Project

RESEARCH PROGRAM OBJECTIVES

1. An agricultural research program was started in Gezira in 1918 toimprove cotton production. The Agricultural Research Corporation (ARC),established in 1967, under the direct responsibility of the Minister ofAgriculture, has expanded the research programs to cover cotton, wheat,sorghum, groundnuts, millet, sesame, fruits and vegetables. Research isalso conduLcted on soil and water management, soil fertility, plantprotection and weed control. Limited research is conducted on techniquesfor transferring technology, agricultural machinery, seed production andintroduction, farming systems and animal husbandry.

2. The Project would provide funds to upgrade facilities at theGezira Research Station in Wad Medani, and would modernize threesub-stations at Maatug, Haj Abdullah, and Turabi, allowing for testingnewly dev2loped technology under expanded soil and climate conditions. TheProject would support conducting agronomic trials on farmers fields inMusallamya and Almunsi groups, and in collecting socio-economic data onfactors affecting adoption of recommended practices in the Project area.ARC staff would participate in monthly workshops designed to train subjectmatter specialists and SGB field inspectors. The Project would providespecial support to research projects on crop rotation, alternative croppingpatterns, and forage crops. More specifically, the project would providesupport to the following:

3. Cotton. Project activities would support applied research on theimprovement of cotton grown in the Gezira scheme in the following areas:(a) Selection and introduction of cultivars resistant to insects anddiseases, mainly whitefly, bollworms and jassids and bacterial blight andwilt. The Project would provide equipment, laboratory instruments andfield support to improve cotton germplasm, strengthen the hybridizationprogram and test new cultivars under different sites; (b) Weed Control.Study of pre-sowing, pre-emergence, and post-emergence herbicides forannual and perennial weeds. The integration of cultural and chemicalcontrol, timing and methods of herbicide application and the interactionbetween soils and herbicides would be studied; (c) Crop Water Management.Evaluation of present frequency and intervals of irrigation and developmentof irrigation models capable of saving water and improving lint quality.Other research activities would include crop fertilization, insect pestcontrol and the interaction between yield, rotation and incremental fieldinputs; (d) Mechanization. Assessment of the effect of farm machinery onland preparation, crop performance and yields. This would includeinvestigating the contribution of different generations of farm machinery,mechanical harvesters and associated tools and implements; (e) Cropprotection. Evaluation of alternative pest control and management systems.

- 72- ANNEX 6

Page 2 of 2

4. Groundnuts. The Project would support research on theimprovement of groundnuts to: (a) identify optimum plant populations andseeding rates; (b) assess the impact of rotation, crop sequence andnutritional requirements of the crop. This is to be investigated alongwith nitrogen fixation using local rhizobia; (c) study water requirement,water rates, and irrigation intervals (special emphasis would be onutilization of rainfall during July, August and September); (d) study theoccurrence of aflatoxin, a serious problem caused by A. flavis group fungi,reducing quality of the crop and its marketability; (e) select promisingcultivars and improve the performance of currently grown varieties (Ashfordand MH 383); and (f) assess mechanical harvesting methods, especiallylifting time and crop digging needed to determine proper foods and timingfor harvesting and threshing.

5. Wheat. Project aclcivities would include support for researchaimed at: (a) selecting varieties suitable to the growing conditions inGezira, including short maturing, and drought and heat tolerant cultivars;(b) assessing different methods of land preparation, their cost,suitability and effect on yield; (c) studying the impact of the mainecological zones on sowing date, water requirement, and fertilizerrequirements; (d) studying the main agronomic factors affezting yieldincluding rotation, weed control, population density and seed treatment;(e) surveying the main insect: and disease hazards and' developing a suitablecontrol strategy based on breeding, cultural practices and application ofchemicals.

6. Sorghum. The research program has received some support fromICRISAT but research on irrigated sorghum requires considerablestrengthening, with focus on breeding, weed control, fertilizerrequirement, population and spacing, sowing date, water requirement invarious locations and the control of charcoal (rut disease), pests (mainlyweaver birds) and stemborer.

7. On-Farm trials would be conducted on Farmers' fields to verifyrecommended technology under natural production conditions and provideadequate resources for field trials on several blocks in dif'ferentagro-climatic zones. Farmers would be encouraged to evaluate thetechnology and determine its suitability to their condition at this stage.

8. Project staff would assist SGB field production pe!rsonnel throughregular field training, workshops and seminars, and preparation ofextension materials and research reports about problems affecting cropproduction.

9. Strengthening of farming system research focusing onsocio-economic factors affecting adoption of recommended technology,integration of livestock with crop production and alternative croppingpatterns suitable to local needs, resources and available technologicalpackages would also be financed under the Project.

10. Crop rotation and alternative cropping patterns suitable to localconditions of soil and water availability.

- 73- ANNEX 7Page 1 of 2

SUDANGEZIRA REHABILITATION PROJECT

ANNUAL WORK PROGRAM

1. Annual Work Programs (AWPs) would be submitted by the Project

entities, SGB, MOAI(I), ARC, BNHP, SPTC and RWA and would cover all Project

components. Each AWP shall provide documentation, satisfactory to the

Association, with respect to the following:

(i) a detailed description of the work to be performed, including the

objectives of the work plan for the ensuing fiscal year

commencing each July 1, the schedules of activities, equipment

requirements, staffing arrangements and training plans, and the

distribution of responsibilities for each item included in the

AWP;

(ii) a budget for the period covered setting forth:

(a) the proposed capital expenditure;

(b) all proposed recurrent expenditures such as salaries,

materials, fuel, repairs and maintenance directlyattributed to activities under the Project, together with

a breakdown of predevelopment and incremental

expenditures;

(c) a comparision of the proposed investment and recurrent

budgets with the proposed budget and actual expendituresfor the previous year;

(d) a list of all staff employed or to be employed on a

fulltime basis by Project entities with respect to the

Project; and

(e) a list of proposed expenditures for technical services,

studies and training;

(iii) a financing plan, and detailed quarterly cash flow projections

including the GOS contributions to the Project account and the

dividend payable to GOS on its capital in SGB.

2. Each AWP would be supported by the following information, as may

be relevant:

(i) a detailed assessment of the previous year's performance;

(ii) a detailed staffing analysis, including a report on previous

staffing and proposed increments or reductions;

- 74 - ANNEX 7Page 2 of 2

(iii) the proposed training program; and

(iv) GOS budgetary provision for fuel, annual farm inputs, maintenanceof the irrigation system and subventions for the Project entitiesalong with the basis on which such allocations have been made,including assumptions regarding external donor support forimported inputs.

3. A detailed review of the following items which impinge on Projectimplementation:

(a) Status of the Sennar and Roseires dams, with particular regard tosafety and operating regulations and maintenance requirements,and the Government-s: program for maintenance of the dams;

(b) Progress in establishing the cost recovery system anddetermining accurate costs for various recoverable items ofexpenditure, including agricultural machinery hire rates andadoption of adequate! interest rates; and

(c) Performance in the areas of pricing, debt recovery, agriculturalmachinery operations and tenant incomes during the preceding yearand an assessment of the prospects for the ensuing year.

(d) The degree of integration achieved in the implementation of theschistosomiasis and rural water supply components and selectionof innovative items for financing under the former component.

4. The criteria upon which the Associatioi's approval of a proposedAWP would be based on:

(i) the adequacy of such programs for implementing basic Projectobjectives consistent with requirements of the Development CreditAgreement, the Project Agreement and the Subsidiary LoanAgreement; and

(ii) the adequacy of such programs in providing physical, financialand manpower resources to implement and sustain the physicaltargets set for the ensuing Project year.

- 75 -

Sl9 ANNFX 8

GEZIRA REHABILITATION PRO6JEC7

Details of Technical Assistance and Consultants Services Provided Urder the Project

b/d/ b/d/Expected LerEth Rate Total Costs

Ccmponent Expertise of Consultant of Assigrment at Foreign c/ Local et In IS Dollars In Pounds Suaarese

1. Irrigation Operation arid Maintenance of 12 10.6 20% of Foreign 152.6 198.4Canal Systans

Weed Eradication 3 38.2 49.6Short tens-maiscellaneso 6 76.3 99.2

2. Irainage Drainage Design 26 - 5.3 106.9 138.9

3. Agricultural Agricultural Machinery 24 10.6 2D% of Foreign 305.3 396.9Madlinery ard OperationEquipment

4. Fxtension, Farmner Seea Technologist 12 8.5 122.1 158.7Trainirg aril Extension Specialist 6 10.6 76.3 99.2Research

5. Wnrkshnps anl Wormonlop Matnagement Advisor 12 152.6 198.4Fuel Supply

6. Gezira Light Railway Operations Advisor 6 76.3 99.2Railwy Track Mainterance Advisor 18 229.0 297.6

WIorlolop and Loconotive 18 229.0 297.6Repair Advisor

7. Ginneries, Cotton Renovation Works Consultant 24 305.3 396.9Iai ling aid ErigineerStorage Saw Gin Consultant Ergineer 18 229.0 297.6

8. ehabilitatlon Agricultural Econsmist 39 496.1 644.9Project Manageient Ergineerirg Advisor 63 - 5.3 256.8 333.9Unit Procurement Advisor 39 10.6 20% of Foreign 496.1 644.9

Other 60 763.2 992.1

9. SGB Management Manager 60 763.2 992.1Information Systems Analysis Department 48 610.6 793.7Sye tea Mnager

Monitorirg, Evaluatirg and 48 610.6 793.7Reportirg Departreit Manager

10. Training Trainirg Specialist 48 9.5 549.5 714.4

11. lTainirg aid Finarcial Advisor 60 10.6 763.2 992.1Technical Supply & Inventory Managaemnt Advisor 36 8.5 366.3 476.2Assistane OCrrFarm Water Managenent Specialists 32 10.6 " 407.0 529.2

Soil Scientist 30 - 1.0 22.0 28.6

12. Studies Studies Preparation Advisor 3 - 5.3 12.2 15.9Initial Survey 4 10.6 20% of Foreign 50.9 66.1

30 - 5.3 122.3 159.0Intersive Survey 6 10.6 20% of Foreign 76.3 99.2

32 - 5.3 130.5 169.6Credit 2 10.6 20% of Foreign 25.4 33.1

20 - 5.3 81.5 106.0Marketirg 15 - 5.3 61.2 79.5Agricultural Machinery 2 10.6 20% of Foreigi 25.4 33.1Private Sector 15 - 5.3 61.2 79.5Livestock 22 - 5.3 89.7 116.6Tenancy 3 10.6 23% of Foreign 38.2 49.6

7 - 5.3 28.5 37.1Miscellaneous 3 10.6 23% of Foreign 38.2 49.6

12 - 5.3 48.9 63.6Project Preparation Fhase IT 80 10.6 20% of Foreign 1,017.6 1,322.9

TOtAlS 986 mman maoths S 9,615.4 LSd 12,499.5

AVERACE CCST PER MA.N 143NI $ 9.7 f/ L.d 12.7 f/

a/ In smths.b/ All monetary mkouts in -000s per month.c/ in U.S. Iollars.1/ At basellne cost, March 1983.et All local asnunts are in Sudanese Ponds.ft Including salary, costs, fees, international travel (for eKpatriate consultants) ard subsistenre.

03/08/82

-76 - ANNEX 9

Page I of 3

SUDANGezira Rehabilitation Project

STUDIES

I. Background

1. The Gezira Rehabilitation Project would be expected to result inthe rehabilitation of the existing scheme through a variety of majorcapital investments without altering the existing production and tenancysystem. The present system, which is basically the teniancy system asdesigned in the 1920s would be continued even though it is well recognizedthat the production operations on the scheme have been considerably alteredin the last decade.

2. Considerable changes would have to be made in the existingproduction system to adjust SG]3's and the Government's institutionalframeworks to the changing production environment of the scheme. Moreadequate incentive and compensation methods would have to be defined forthe laborers and tenants actually working the tenancies. The tenancy sizeswould also have to be redefine(i and the role of the private agriculturalmachinery sector reconsidered. Informal and formal marketing and creditsystems would have to b coordinated and reformulated and solutions foundfor the large herds of livestock presently kept on the scheme. However,little is known about many of t:he unofficial activities taking place on thescheme, and the broad empirical, and analytical information ne;eded to shapenew policy recommendations adequately is lacking. The studies financedunder this component, therefore, would be directed to preparing therequired information base and present policy recommendations which would bediscussed and acted upon at mid-term review of the proposed Project andbefore start-up of the follow-up modernization phase. The studies would becontracted to Sudanese research organizations withl expatriate assistance asnecessary. They would be supervised by an international recruitedagricultural economist located in the Rehabilitation Project ManagementUnit.

II. Studies Included in the Component

3. Desk Reviews. A desk review of existing literature would becarried out under a PPF. This will avoid duplicating existing data, andpermit tighter definition of the terms of reference of the studies.

4. Initial Survey. The initial survey, to be carried cut at thebeginning of Project year 1, would cover approximately 750 households.Its objective would be to obtain broad demographic:, occupational andagricultural data, and define the basic categories to be surveyed in theintensive study.

- 77 - ANNEX 9Page 2 of 3

5. Intensive Study. An intensive study of approximately 200households, stratified into the basic categories of tenant, sharecropper,permanent laborer and migrant laborer, would be carried out over a cropyear, comprising several visits. It would yield information on occupation,sources of income, cropping patterns and use of inputs and marketing,yields, use of credit, crop marketing, livestock, tenancy and land usepatterns and attitudes towards the present production and tenancy system.Experts from the specialized studies would participate in this study, whichwould yield the bulk of field data for them. The study would ideally takeplace from the middle of Project year I to the middle of Project year 2,with analysis continuing until the end of Project year 2. All thespecialized studies except the tenancy study would also be complete by theend of Prcject year 2.

6. Credit Study. The study would analyze the credit and debtsituation in the formal and informal sector, analyze present and futureseasonal credit requirements, analyze long-term credit requirements andexamine the potential role of SGB, ABS, co-operatives and Tenants' Union insupplying and supervising credit to tenants.

7. Marketing Study. The study would make an analysis of the presentmnarketing situation and possible constraints. In particular it wouldconcentral:e on marketing arrangements for wheat and groundnut. Amongothers it would examine Government pricing policies, price developments,subsidies and marketing policies; it would study marketing and processingcosts, volumes traded and grading procedures. x

8. Study on the Integration of Livestock on the Scheme. The mainobjective of the livestock study would be to provide policy recommendationshow best to integrate livestock into the cropping pattern of Gezira. Afteran analysis of its present role, recommendations would be made onintroduction of fodder crops, use of crop residues, measures necessary toimprove livestock productivity and marketing arrangements.

9. Study on the Role of the Private Sector in AgriculturalMechanization. The purpose of this study would be to get a better insightinto the present capability of the private sector (including co-operatives)in the provision of mechanization services in the Gezira scheme. The studywould compare the quality of services, present and potential, with those ofSGB, and investigate whether the private sector can be strengthened inorder to provide timely and reliable services of a good quality and atreasonable costs to the tenants of the scheme.

10. Tenancy Study. The aim of the tenancy study, drawing largely onthe data and analysis of the other studies, would be to make policyrecommendations on changes in the tenurial system of the scheme, includingtenancy size, ownership/usufruct rights of tenants and sharecroppers, andthe future role of SGB, MOAI(I) and tenants in agricultural operations. Itshould be completed by the middle of Project year 3.

- 78 - ANNEX 9

Page 3 of 3

11. On completion of the studies, detailed discussions on theirrecommendations would take place with concerned GOS officials, and theappropriate policy recommendations would be developed by the end of Projectyear 3.

12. Provision has been made for the preparation of a modernizationprogram through funding of technical services (80 man months).

- 79 -ANNEX 10

Page 1 of 3

SUDANGEZIRA REHABILITATION PROJECT

Training

1. SGB employs over 2,300 professional and technical staff, 9,000unclassified staff and over 10,000 unskilled personnel at different timesof the year. MOAI(I) has over 2,500 permanent staff responsible for watermanagement and maintenance of irrigation works. Both are thus large,complex organizations. Most positions have been established for manyyears; because of the prestige of Gezira and a relatively attractivepackage of salary, housing, pension and other allowances staff turnover hasbeen low, and most senior staff are well experienced. At technical andoperator level too there are fewer shortages than in other schemes.

2. There are four vocational training centers in addition to the ElHarag College of Agriculture and Gezira University in the Project area; allof their programs can be shaped to meet the needs of the scheme, which isby far t]ae largest employer. SGB has responsibility for social affairs inthe schemae and employs 130 welfare workers on education. It also has aradio production network, and joint control over the production of certaintelevision programs broadcast from the local TV station at Wad Medani. TVsets are found in most villages, and many TV clubs have been established.However, the quality of production is often poor. Thus, a good basisalready exists on which to build up the necessary information, adulteducation and training activities. SGB is in the unusual situation ofhaving a large measure of control over many of the information sources onwhich the population depends.

3. However, over the past 10 years, because of competing pressuresfor scarce resources from other schemes in Sudan, and for other reasons,training, both external and in-house, has ceased to keep pace with theevolving needs of Gezira. A special feature of the scheme is the high ageprofile of senior staff. Over 85% of present staff at group level or abovewill have reached pensionable age by 1988. Thus there is a particular needto train staff for managerial positions. The same situation applies tosome other categories of staff, including station masters and watergaffirs." Training and extension for the farming population of Gezira hassimilarly failed to keep pace with the evolution of the scheme; the systemis oriented towards inspection and control of cotton production, ratherthan extension of improved techniques for all crops in the rotation.

- 80 - ANNEX 10

Page 2 of 3

Training Objectives

4. The objectives of the component are: (i) to establish mechanismsfor effective internal training within SGB; (ii) to develop appropriateskills training in artisan fields and fund external training in areas whichcannot be provided through supplier contracts; (iii) to train staff whosework would be reoriented through the Project (agricultural staff throughthe new emphasis on extension, financial staff through the introduction ofindividual accounts and the strengthening of management informationsystems; and (iv) to strengthen the effectiveness of mass media and localtraining institutions. Most training would continue to be carried outthrough existing training programs, which would be upgraded.

Components

5. (i) Detailed training plans for each department would beprepared with expatriate assistance under a PPF for the first two years ofthe Project period, and overall training requirements would be defined forthe Rehabilitation period.

(ii) The present training section within personnel whose presentfunction is limited to placing candidates for external training, would beabolished, to be replaced by a new section in the Deputy ManagingDirector's office, headed by an internationally recruited trainingspecialist, and with responsibility for external t:raining, cocrdination andquality control. Training office positions would be established in each ofthe four divisions.

(iii) A total of 42 man-months of technical assistance from atraining firm would be provided to help with the cetailed planningexercise, introduction of new t:raining systems, and provide on-the-jobtraining in production of training and information materials.

(iv) Table 1 provides an indication of the extent of formaltraining needed in the major fieslds of administration, finance, engineeringand agriculture in SGB. This would be in addition to training currentlysupplied through the SGB budget. The estimates would be revised after thedetailed training programs are prepared, and also revised annually. Theemphasis in finance and adminisliration would be on office management,management information, accounts, budgeting, auditing and storekeeping. Inengineering it would be on upgrading existing and training new mechanicalstaff in the workshops and ginneries, and training the new traztor driversneeded under the Project. In agriculture it would involve equippingexisting staff for a more effect:ive extension role, paying mores attentionto non-cotton crops and improving field water management. There would besubject matter specialist trainiJng, and training in horticulture, an areaof growing importance. Training programs for livestock services, whetherthey are to be handled by SGB or another body, would be prepared under thelivestock study by the end of Project year 3.

- 81 -ANNEX 10Page 3 of 3

(v) Media production capacity for adult education and extensionwould be expanded by provision of new sound recording and editing equipmentfor the radio program unit, and the establishment of a small TV productionunit. A mobile TV repair unit would be provided and training in TV andgenerator. repair provided through it.

(vi) A two-room, non-residential training center would beestablished at SGB neadquarters, and training equipment would be provided.

The classroom at Meringen would be renovated and a training shed attachedto the workshop; a new classroom would be provided at Hassa Heissa.

(vi) For irrigation, training would be provided in three areas:(a) Irrigation operation and maintenance; (b) workshop and storesadministration; (c) on-farm water management to SGB. In addition totechnical assistance for training in these three fields, study tours wouldbe provided (total 39 man-months to MOAI(I) and 36 man-months to SGB watermanagement officials). The existing MOAI(I) training programs forinservice training of technical staff and refresher training of watergaffirs on minor canal regulation would be carried out by MOAI(I) withtechnical assistance.

(vii) Training for telecommunications and GLR would be providedunder suppliers' contracts, and, for GLR, through their in-house programs.For filter maintenance tender the water supply component it would beprovided through technical assistance, and through the National WaterAdministration in Khartoum.

Table 1Estimated Provision for Incremental Course Attendance

In-House In-Country ExternalCourses Courses Short Coursem/wks m/mths Formal Regional Elsewhere

m/yrs m/mths months

Administration 848 154 2 19 16Finance 880 10 50 8 6Engineering 2,140 50 20 32 23Agriculture 81 164 13 14 2

Note: Excludes on-going training programs.

- 82 - ANNEX 11

Page 1 of 3

SUDANGezira Rehabilitation Pro-ject

Documents available on Project Files

1. The preparation report produced by consultantsa/ is available insix volumes. Its contents are as follows:

Volume I

Main report

Volume II

Annex A - The Gezira Scheme: Background, PhysicalConditions, and Human Resources

Annex B - Agricult:ure

Volume III

Annex C - Markets, Marketing Structures,and Prices

Annex D - The Tenant and Agricultural Labour

Volume IV

Annex E - Irrigation and Drainage

Annex F - Cotton Ginning Facilities

Volume V

Annex G - Infrastructure

Annex H - Hlousing, Utilities, and Health

Annex I - Workshops and Maintenance Facilities

Volume VI

Annex J - Organization and Management

Annex K - Pilot Farm and Schemes

Annex L - Further Studies

Annex M - Project Costs, Benefits, and Evaluation

a/ Euroconsult (the Netherlands) in collaboration with Sir Alexander Gibb(UK) and TCS (Sudan).

- 83 - ANNEX 11Page 2 of 3

In addition, separate volumes were prepared on Training and on the

establishmaent of a computerised Management Information System.

2. Background information on the institutional and policy changeswhich preceeded the Rehabilitation Project is contained in the followingdocuments:

(i) Agricultural Rehabilitation Program - President's Report.IDA Credit 1000-SU:March 1980.

(ii) Sudan: Incentives for Irrigated Cotton - Progress towards ReformIBRD Rep.No.3810-SUMay 1982.

(iii) Sudan: Irrigation Sub-Sector - Administrative ReviewBooker AgriculturalInternational September1980.

(iv) Study of Cost Recovery in the Irrigated Agricultural Sector (4volumes) Sudan Cost Recovery Committee October 1980.

(v) Study of Cotton Marketing - Sudan Cotton MarketingStudy Group, May 1981.

(vi) Sudan: Investing for Economic - IDA Report No. 3551-aStabilization and Structural Change February 1982

3. The contents of the Implementation Volume would be as follows:

Annex 1 Agriculture- Project Area- Production System

- Farm Machinery

Annex II Irrigation and Drainage- Present Situation- Project Proposals

- Operation and Maintenance

- Organization and Implementation

Annex III Project Infrastructures- Telecommunications- Roads

- Ginneries- Housing

- 84 - ANNEX 1iPage 3 of 3

- Health

- Rural Water Supply

Annex IV Instituticnal Base- Research and Extension

- Training

- Studies

Annex V Costs- Unit Costs and Price Projections- Project Cost Tables

- Financial Analysis and Cost Recovery

Annex VI Implementation- General Arrangements

- Procurement Packages

Annex VII Economic Analysis

SUDAN

GEZIRA REIABILITATION PROJECT - PROJECT HANAGENENT

|MinIster o Agriculture and Irrigation

Project Management Committee

MembersDirector, Rehabilitation Project

MD, SGB Management Unit (Ex-Officio Under

MD, ARC Secretary, MOAT and Convener, PMC)

Dir. BNHPMD, SPTCDir., RWA, Central RegionUnder Secretary of: Procurement Officer eering Specialis Agricultural Econ

1. Finance and National Planning2. MOAI (Irrigation)3. Health4. Transport and Communications Project Procurement Procurement Subjects

Committee _ Adviser Irrigation Stde,Traning

Minister of Housing, Construction Drainage MIS

and Public Utilities, Central __Pump Stations

Region. Members _Sub jects Sennar Dam

Dy. MD, SCB Extension, Farmer Training and Agricultural Machinery and

Technical Research Equipment

Reps. of: Health Workshop & Fuel Supply

-- 4 MOAI(I) Rural Water Supply Vehicles_ SGB . Roads

Port Sudan RUA Telecommunications

Office Manager BNHP Gezira Light Railway

-I fl - SPTC Staff Housing

I I ~~~~~~~ARC _

Offife SupportOffice MHanager~

Offc Support j Office Support| I

1 2 Assistants AssIItInt

| 1 Messenger I |3 Assistants1 Secretary3 Typists

_ _ _ OfficeZSupport [ 2 Messengers

| I Secretary |[{|4 Typists

|I Messenger

SUDANGEZIRA REHABILITATION PROJECT

Simplified Organi9.ram

'Z-H Co dcet M Mimn,-st t

Mmik"y d T, Mimi- dA9,i-1t- ,M'y M~~~~~~~~~~~~~~~~~~~~~~~~~~~Uro,Scrtay lu Nl

C_ 11I ,. Ec- .i -' r i t

Ministry of Transport 7 M inistrv of FinElzct Ministry Of Agriculture M inistrv OS Regilna o

adCommunca io rcati;om -. n cnmcPanig=dIrqtor e hGvrmn

.~~~6-11'.'d R.:-h Di,~~~~~~* irctrDrrra

.. _l _ E~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~...............

............................... ....... . A t* jtitr Adira

Sud=n Publiw T.I.tc P=lic

Coctrel~~ ~ ~ ~ committe Maragar Diiio

s Irrigatis ~~~~~~Aff.i,,

l_~~~~~~~~~~~~~~~~~~~~~~~~~~~~..... ........... ........ ... * .e 6 ... >'iP

FimId Admi-istration _GEtra -Mecegil,

W Tx +i O is iieJlls r I i 7 ~~~~~~~~~~~~~~~~~~~~~~ | ~~P15clc Corpocaticr for 3;non tt MEnc.l -~ t n I niee Eocthmovc,rg

Block D -itree _Sb diuieicnrl Eginer a 3t P j

-d- 4d L InsP=top h-iecir_ S clio oEr ic |. =iti-er d

Drector of Dame

e r H ~~~~~~*LrtE Control W

1/ R.htibilittio- Pro-jct M-c -mect Dolt _ _ Productin Coo rdinarioc

World G-nk-24100

- 87 -CHART III

SUDANGEZIRA REKABILITATION PROJECT

Sudan Gezira Board - Organization Structure

C~~~~~~~~~~~ ~ ~ ~ ~ enar eg Factotoies

I anspa t

Traimmg Deputy Mana.ging |E.t.nsi.. and

D rector D irector D-etoe DiietoAdm-st-aA E d Pnegeineeting Agriealtrca Bc Fk nnanccnd

D..is-on Division o Divisi-n

P-rsnnl Depan-et I

G-,.zr Light R.1-wy IF,.Id Ad-iw.trti.n -ea tmetaCin-gc Factorhs _ I

Socla S--ics Depa mentMage

T,.-p.rt -Civi Engminerig i

IMechamca Engme--ig Group Ma-g-er

0- Agricult-rl Eng91--lg

-Eletrical Engineer-g|

Workshop/Mainteanc

_Apphled Engmeering Research Block Inspecton

| Fmied Inspecton-

VWorld Eank-24101

SUDANGEZIRA REHABILITATION PROJECT

MOAI (I) - Organization Structure

Min.itey of Ag,iu.Itu. nad IrIpation tii.. t.onl

MINISTER FOR AGRICULTURE AND IRRIGATION

MINISTER OF STATE FOR IRRIGATION

| PERMANENT JOINT OG NERALIC CORPORATION GENRPLANNING AND D OINRLRE RA

TECHNOCAL COMMITTEE F"IRR IRRIGATFON VORKS SNOEI SECRETWRATE AN DMO RJC

FOR NILE WATERS AND EARTH MOVING DIE

AiCL AD IRGENERAL DIECTORATE D O OF G RO CT RATE OF I I GENERAL DIRECTWITE O

OF IRRIGATION AFFAIAS A DILE WATER AND DAMS OF PROJECTE HR

_7HANICALA'ND RRROA ILUTY DIR EC T

Jr~~~~ _PR.l I

< IICL DIRSREICG, iTON l DMINTION I O IETHO ETRO DIROECTOR HYDRAULIC RESEARC

EPRMETJ(O S, Ml

DEPUTY DIRECTO DEPUTY DIREC OR ROADDEPUTY DIRECTOR ZIRA MANAG ~~~~~~~~CONSTRUCTION CONSTRUCTIONDEUYIRCO

GEIR MAAIL UNITC' SUPEIFRV SIGN DESIGNS

4- Divitioca 2-Divisions NGI

-13- Subdivisiops |-10- SniT onI 1/ JtsRon-ibn fo, op-tati-n,and mainenance-of Sennorand Roseires dams.

41 - S-aio-t 2 - S-cain 2a Rescom-ibl$ Im po,cn implamaneatinn3J Reacensible fo mainrenonce of m-cfnnl t5cuimnn! and41 Tc bE est.blb,lld .eder the PrcjOct.

W-tld Bank-24102

SUDANGEZIRA REHABILITATION PROJECT

Anticipated Crop Rotation and Cropped Areas in theGezira Scheme at the End of the Rehabilitation Period

Feddan ('OCO)

1,500 MI7 / V7 - - -

//0 77 / // 77r // // 7/ 7 /7t /7 7/Ahet V

777/ /77 I II 77/7/77/ / /~~~~~~~~~~~~~~~~~~Ground-nut~

7/ / Cotton l// 77 / // WVheat

/o // //7/ 7777 7/LI 77/7, 7 7/L

7/ Raiv Season (460,000 mm ddan) Fd/l 7721 7/ / /

// // 7/ 77 7/ /7 // // 7 7/ 7 . /~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

/7/ ~~~~~~~~~ - ~~~~~~~,-- / /77/77 7/7 ~~~~~~~~~~~~~~~~~~~~~~~~PhilIlipesnara1,000 ~~~~~ ~~ 7/ /7 / 77 ~~~~~Ground-nut 77/7

/7 /7 /7 /7 ~~Wheat a 441** / //

"~~ ~/ '" '7 ~ (400,000 Feddan) " '74/' " /"'

'~~~ "~~~~ "' 7/ "" "" ""A77 7 7 ~~~~~~~~~~~~~~~~~~~~Cotton G/7 7/ 7/ /7 / ~~~~~~~~~~ O~ura/7 //7 7

// Ground-nut/7/ " 7" / /500 (240,000 Feddanl/ 7 Phillipesara 7// A/ -- -

,'r 7 - / 7//

Dura I~~~~~7 /A Wheat 7(300,000 Feddan/7 7/77Cotton/

I 774 ~ ~ ~ ~ ~ ~~~7 // / 77L~j ainvSeasn (00 -400 m Ranfal)7Wrld/ank7415

- 90 -CHART VI

SUDANGEZIRA REHABILITATION PROJECT

Implementation Schedule

Year 0 Year I Year 2 Year 3 Year 4 Year 5

ITEMS 1984 1985 1986 1987 1988

1 2 34 134 2 3 4 2 3 4 132 2 4 2 34

1. Irrigation System . I t

- Gates, Regulators and Equipment , , _. -\ -

- Civil Works/Erection

2. Drainage System _

3, Pumping Station

- Equipment and Spares _ , ,-

-Civil Works/installation .\

4. Sennar Dam ..

6. Agricultural Machinery

7. Incremental Farm Inputs

8. Extension, Farmer Training Research |\I

-Civil Works i

-Equipment and Shares - - - - -, I

9. Workshops and/Fuel Supply - - -- - - - 1 10. Vehicles -rrt

11. Road Maintenance - - - - _

12. Telecommunications

13. Gezira Light Railway -\

- Civil Works r \}1tf le-1 Machinery and Equipment |7 *t-

14. Ginneries \ > t\ . l{

- Modernization - - - -_- -

- New Ginneries '\-- " \\ |

15. Schistosomiasis Program

- Drugs A

- Molluscicides --

16. Rural Water Supply -

17. Staff Housing - - -

18. Project ED'S Office Equipment

- Technical Services 1-19. SGB Management Information System

10. Training and Technical Assistance

21. StudiesA

Key

Procurement and tendering ending with award.Delive,y of machinery and equipment.Construction and/or installation of equipment.

- Consultant services.* Issue of tender documents.

//'////// Rainy Season.

Note: Details are pro'ided in the relevant sections at the

Implementatiorn Volume.World Bank-24247

-25- S U D A N MILES9 IU 200 300 252

GEZIRA REHABILITATION o 2L0 3GG 4GD -G0 :

PROJECT ---Location of Project Area .

LOCATION OF PROJECT AREA

{ Inn GATION SCHEMES ARAB REPUBLIC OF EGYPT:= ERIVERS. PEEFNNIAL'SEASONAL

-1- DAMS fJ ;; Vl;zi

- - -RD-- VINCIAL BOUN4DARIE5 S

-INTERNATIOINAL BOUNDARIES

20 i ~~~~~~~~~~~~~~~A/ O) R T H E R A/ A' E

2U,-2cr~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2

i __L_ ~~----- ----- t < --

0HI2~~~~~~~~~~~~SAYS~~~~~~~~ -d- a112 I -

~~~E*-1' , F Z A ' -y_TERNATIONAL 300N0EI , ,., ! . F ___ 1 R A ,HM EL GIRSA

0 AlT RNOR H RNI% E

0 A R F UJ R N B-Ra f Ed D. ~ = = G reX

8 Geneinar<>_< Z)~~F °EF-sher J 0 KO D O F A N r dy CE/ /

*gi 1-'E .u .R

CHAD KOr,mo 'BeKos

t {~~~ ¢ | DuW~Nyca 'n, \Z\AKL

\_ \ <' /5 ~~~~~~~~~~~~~0 U r // E R A/\/ ) , rsisN4 /5 0 U T H F B b n.sa ° aul kF>

I ~~~~~~~~~~I ShKenugi nk (

/ \ ~~~~D A R F lJ R K' OR D F A A/,t :/

- - - - - ) E T H I O P I A

it

_I- JAESaW, -.. elnf

C-IH f/A Z A Z ,

Is.~~~~~~~~~~~~~~ I 4t\x

CFNTRAL AFRICAN J\< E ~Ooni E Z '\-> U N G 0

R EP UB L IC t ubk__

( N~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I

.NOR .HER \ -3 1 r ES T E R E A S T E R N;g D A Rs J I --i R v EBnra EdDC,ein U T O R / A b E U, A T O R /A 5

\GeEeinSJ,..-A~~~~~~~~~~~~~~~~a,- 0 'b

9 > \< y/~~~~~~~~~~~~~~~~~~~~~~-> ~~~~~~ To,lt\ X --

. < F R 4 ~~~~~~~~~R EP UB L IC O F ZA I RE \ -°iue lt=rxra 2 15=6,2 K D h t

: i ~ '; '>: = - _i : xeDDnce vI Mch Oou El beid, I 33

IBRD 16494

IARAB REPUBLIC -OF JUNF 15821

EGYPT SUDAN7 ~ ~ ~~~(HWA,ECPSA,>. GEZIRA AND MANAGIL

CHAD! HEAM u,1SV ~-~IP ,. N'~~~~~~~~~o- IRRIGATION AND DRAINAGE SYSTEM

S U DAN, NI' / N&" A'' Ca-ls

['A - ~~~~ETHIOIPIA / 4'<-/ '- GA - -OUr Lghl R. ways

CENTRALZ.., 'UAW(A-AAe '--SAa ala

AFRIAN I, ~" ~ liigasia PA-rplg sasfia-:k2~~~j'-7 &j7&/'~~~~~~~4#x~~~6\ ~~'j / ~ ~ ~ ~ Prapased SyphanZAIRE ABSAD KENYAJ A Drainaga PA-p SBt5i,rns

I/ *~ ~~~~~~~~~~~~~~~~~~~~~ Sypisas Under Canals

/AAA~~~daAAkAAarrAwAA,rA(rAA~~~~~~~~~~ - A" A5'~~~~~' A 11 22 32 - - Molar Drains fsdstingaja D,ws Exstm

TA A AWl HA b,w pAnawA ArAQA 'AN\~ ~ ~ ~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~0 ip 20 3

UAAAAAWAaAQ,AAAAWAWWAT 'AN -A a - -- - Moar Drains 5 A~~~~~~~~~~~~~~~~~~~~~~Ma., mimPopse

Al, 'A~~~~~~~AA IA wA',A A A ,awlal A -$'~~~~~~~~~~~~~~~~~~~~~~1

/ KU/~~~ILMETERS I P,ci-. .- S,,t.

rAA QAAAAAAA,AAAAAAIAAAAAA ~ ~ ~ ~ ~ ~ ~ ~ ~ N ~~-. ~ ~ \<-%t.-4N / mr CasEsrACijan or Recanstrjctia-h-nB.D.., e

MANAGL U' \tk -

r-'. ~ ~ ~ ~ ~ ~ ~ T' /~~~~~~c'-¾ <Y4A~~~~~~~~~~itzH-i 7 ~~~~~~~~KHARTOUM

----- -' NAOJAiA ~ QRTA WEST STaNCA HA;rI/# I A *' A5

l1At9 t5 - fI '4

1SENA i'

4C;CF"AA~EOET~E ---. ~~' >A~;~< A/A/ '1j0--i/ , I Li 1 4DRAIN8/iŽ&

w.a

-~ '~~'Y-'f 1< ~ Sy~ , 5 ri5 4 ys? A <v~ <I 21s IV! f5'CZ

~~r Af K ~ ~ ~ ~ ~ ~ ~ ~ M-rn 7 ~~~~~~~~ ' - iCA'-Y¶*~~~~~~~~~~~~~~~~~is'fI~~AG

2' 4! i CALLEAQOB8ED RBAI1N\ An \ 't l

WAD~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

A-/f~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~