RESTRICTED

%[J in W%tiv Report Nn EA-146a

IJ4IJ 1V JRETUJRN TO

This report was prepared for use within the Bank and Its affmgig hgI They do not accept responsibility for its accuracy or corkLtLeheessh 7176 rebY'rffn*y' I

not be published nor may it be quoted as represenfirg.their views. I

iNlTkRNA-1i ONAL -BAINK FiOR RCONSTRUCTi!ON AND DtVELOPMENMk1

IN T EKNAI UNAL DJEVtELOPMEN 1 AbSSCIAI ION

R1EPORT ON THE PROPOSED DEVELOPMENT

OF THE

SARAMACCA RIVER

SURINAM

April 10, 1964

Department of OperationsEurope

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Table of Contents

n-g- No.

Basic Data i and ii

I - TNTRODT)TITTON ----- 1

A RPequest for Bank Study -- 1B. Land Development in Surinam ...... 1C. Major Projects of Land TIvelo)nment 3

II, TuI OCEAkN PROJECT ....

A. D-0 PDar, .. *.... ......... 4B. Soils ............................ 5CI. Trr-iga+ion; Der,"et A...............

D. On-Farm Development .............. 6Tr__ T7 I :-:_ .7

7. .,J U.a U WS | | ' UU ., L ... . . . . . . .

F. Settlement and Forms of£p.Lot.tion ............ 8

-r-r-r Cl n A TAlkA ft/ IA TTTrr TTA!T1-nr T- n ITt' Cn,.L..L. 0kutrEvUiAj1a II-Li.L F±VAU tnv.jJA .r.6 .

*rt 2f'"TT' T Fir! T nn /I flfll %T ' A n SJA #9A n A -rrr

PROJECT COSTS AND BENEFITS .......... 10

A. Costs . .............. . . 10B. Benefits ............... e C. Economic Justification ........... 13

V. ALTERNATIVE PROJECTS ................. 14

VI. PLANNING AND INPLEMIENTATION OF PROJECTS 15

VII. CONCLUSIONS AND RECOMNDATIONS ...... 16

List of Annexes

Annexes - 1 to 5

Map of Surinam

Map of Proposed Ocean Project

SUri. .JLJJO

Area: 54,144 square miles38 . 6, million acres1L4.02 million hectares

Population: 332,000 (1961)Ei.U IIIteU radkvio groVwIth 1906)U-U. 3.5 - 4/p

Gross Nationai Product: (1961) z$U108 milli-oni

Co osition of C-ross National Product: 1961(Sf million)

1. Agricultural sector- - ..I 4 , .. -4- U- -A_- P4 oh, - .. ......on if

aC. r L Uu. L.L CU I U U ±J aL 0 l cAz,.L Y C .. 2

b. forestry 4.52. 14ining industry 5 7. -3. Hlanufacturing 35.04. Trade and transport 26.05. Services 16.06. Government 36.07. Housing rent 6.o

8. Gross domestic product (at factor cost) 201.0

9. Indirect taxes minus subsidies +26.310. Net factor income payments abroad -?6.11. Gross national product a.t market prices 200.o

12. Depreciation -20.0

13. Net national product at marlet prices 180.8

Balance of Payments: (1961) Credit Debit Net(Sf million)

riirernnt ncn.mint ioi . L 1L6.2 -11L.8

Goods7. 78.9 99-J -22n.7Services 22.5 46.6 -24.1

Capital account 46.4 4.8 41.6

Private 22.6 4.l i8.5Government loans 15.3 0.4 14.9Government grants .5 - 8..5Other - 0.3 -0.3

Overall balance: -3.2(met by short-term borrotring)

Najor Exports:

1960 1961Sf ,of Sf I f

Ilillion Total 11illion Total

Bauxite 66.3 80 64.3 82Rice 4.9 6 3.5 4Trood and wrood products 6.4 8 6.9 9Otlher 4.9 6 3.3 5

Total exports: 82.5 100 78.0 100

Investr;ients:1961 1962

(Sf million)

Government 25.9 21.0PD-v1-te dor,.estc constructi;on 17.e10

Other private domestic 5.0 - 10.0 5.0 - 10.0PrLivate fo ren 22.2 20.0

Inventory changes 0.5 -

Total: 71.1 - 76.1 61.0 - 66.0

Governmeri-t Expenditures:

lgeh, 1q5e5 19e,6 l9el7 Ioe8I l9e,91/ 1Q(A./ 1969 !(Sf million)

Ordinary budget 28.5 32.2 33.4 b444 39.8 .47.0 53.0 57.0nO '-- n 11. -13.0^-i- r3. -1.7. 2 4.3 n I2. 31.9 32.4

of which.

*~~~~~~r ._1 _ 7 { 7 e ,A r On IXGlo -Gt 1jJ -27 dl 4, 4U * VJ_ U4 J.[} \V } \8V IJ \'X*7 V /1 0 CV UL J 0 U)- 4J

1/ Estima.ted

Cost of Living Index:

1953 1961

Paramaribo 100 119Netiherlands 100 122

I. INTRODUCTION

A. Reauest for Bank Studv

1. In the past four years the Government of Surinam has ar-rsnl'ed for thRamar P.nwi_neerine Comnanv. International to nrenarecertain studies of the development of hydroelectric power resourcesand river development. In August of l9q TH2rza comnletd an "AnnrqisalSurvey of the Hydroelectric Resources in Surinam". Harza followedthis report in Apr-l 1961 hy nn "Appraisal Report of the Sartm'cc.River Development" and supplemented it by the report "Saramacca RiverDev.relopment Econom.nic W~rr vn1it-i r~ in Tkennnrn'hr of 19 61.- In the latterreport the consultants, after studying four alternative power devel-opments, concluded that the Sara+macca III HyT-o-power project fol-lowed by thermal wias the most favorable.

2. In 1962 the Government of Surinam asked the Bank to reviewtkhese repc;rts vrith' partiua reeece- herc..ed+_no hconsultants regarding Saramacca III. The review produced the ten-4t-a tiv e; concus4- ththte project -G .marg-Inal but that, if non-IJd.U.VV LU..UO.L' I± 1511.011 1/V PJ. j u.v WJC.L. 1II0±4.L 1i0L SLU " UV J~.U, 4-.4. J1.

power benefits would result from the project, the conclusion might be

3.Me Governmenv of Surinam unen requested uite aiK vuO unutur-take a study of the non-power benefits which might result from amulti-purpose development oI the river. Tnis report summarizes theresults of the visit of the mission to Surinam and of subsequent dis-cussions irithin the Bank.

B. Land Development in Surinam

4. SurinS, is a relatively Dlg country uith a small popula-tion, concentrated in the capital and the coastal areas. It is aboutfour times the size of Holland with one-forthieth of the population.Only a mirnute fraction (1/300) of the country is cultivated.

5, Irrigation is required in Surinam for intensive agriculturalproduction, particularly of commercial and export crops. A dependableand regular wmater supply is necessary, particularly during the criticalmonths of February, l4arch, September and October. Although precipita-tion along the coast averages about 87 inches annually, the distribu-tion is very uneven. As a result, the major cash crops, such as banarnas,cacao, ancl rice, require some irrigation even during the normal rainyseason.

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6. .Historically, narimltarp and other econonu.c actin vtieshave been concentrated in the Paramaribo and Surinam Districts and4n +the =-+extre. r.th-r. e,. d-:" ri-+. ef' ofT, Nicee anll o en 'thecoasta

areas. In recent years, under the Ten-Year Plan, the Government hashban ,,nde.rt_abng a _ laargev ; .,r 1 e.na 1 -rA A- -, - -n,, -^

;~~~~~~~~~~~~ba . J %A?. V > 9-_wJjJ*L -. 6 f) wS-wrw OJIt Cuv as,6

almost entirely in the coastal zone. From 1954 through 1960 approxi-matel", 1.0,0.0 ha. were 4-_ -eclme wit a- net addtio of 7,500 ha. to~I .J , .~.SJ e~ W1U.L- ~ ~ L I ~ VJ.VAL G0 11, U Q.'J.4LU..L'JA 'JS I , J'.J' I1-* VW

the cultivated area. The major land development projects carriedout- ir. "t periJod --- 1ragWe-4-gen, G-roo4-t.T- A- Hra,N --;Ip e &nd-- TUit-vJU .L U±ALL' IVL¶.JLU L'U.L U VVLS 1"JSA1 LJLVJU i1'~LILI, 1LLU"J J.%V d.LI% V.L U

kijkpolder.

7. The Government has now prepared a preliminary plan for landdevelo-pment w'nich would double the area under cultivation by 197h,raising it from 45,300 to 91,700 ha. By 1981 the plan would in-crease the cuitivated area to more than 121,000 ha., almost triplethe present area. (See Annex I).

8. The main objectives of the Government in expanding irrigatedagriculture are threefold. Of primary concern to the Government isthe high rate of population growth which is estimated at 3.5 - 4%per annum. At the lower figure the present population of 350,000 willdouble in twenty years, the development period for the Ocean-Saramaccaproject discussed below. The labor force, wqhich is now increasing atthe rate of about 2,000 persons per year, will be increasing by 4,000per year by the time this project would be completed. 'The capacity ofthe Surinam economy to employ these people in industry, mining, andother non-agricultural activities is limited.

9. A. second objective of the Government is to increase exportsand reduce imports of agricultural products, with major emphasis on ex-ports. Surinam has been a net importer of agricultural products formany years (see Annex II). At present agricultural products representabout 10% of total exports, and about 14 of total imports. Since thecountry normally experiences a trade deficit, the Government is seek-ing ways by which the base of exports can be broadened and the valueincreased. Greater attention is being given to the colonization ofvirgin lands with emphasis on the production of export commodities suchas bananas and citrus.

10. The third major objective is the improvement of the incomeof the farm population. Although the per capita GNIP of Surinam isconsiderably higher than in most Central and South American countriesand underdeveloped countries elsewhere, income distribution is veryuneven. The per capita product in the agricultural sector is about1/4 to 1/5 of that in other sectors of the economy. And if the productfrom three Large plantations is excluded, per capita product in agri-culture is very much lower, possibly 1/8 of that in the non-agriculturaLsectors. In most stark terms, the farmer in Surinam is only marginallybetter off bhan his fellow cultivators in the highly populated countriesof Asia. The nroposed exnansion of the agricultural area would onlymaintain about the same ratio of cultivated land per unit of popula-tion. Tnereased agricultural incomes would come in Dart from a slight

3-

increase in the size of holdings, but mainly from improved yieldsand from more valuable crops. The Government is emphasizing highincome-producing export crops in its land development program asthe most effective measure to improve the position of the farmpopulation.

C. Major Projects of Land Development

11. Virtually the whole of the proposed increase in the cul-tivated area under the preliminary plan would depend on the imple-mentation of two large reclamation and irrigation projects, Ocean-Saramacca and Stondansie. The Government considers a more balancedgeographical development of the country to be desirable. For thatreason the development of the retarded Saramacca District, in whichthe Ocean-Saramacca project is located, is being eiven increasedattention. The proposed project would link the existing concentra-tions of nonulation and economic activity.

12. However, development of the resourees of thp Saramacna riverbasin has not been approached on an integrated multi-purpose basis.The hydro-pnwer potential of the river has hben stidiei indpndnePntly ofirrigation, transportation and other aspects of the river's development.The terms of reference of the consultants who prepared the SaramaccaIII hydro-power project wfere limited to a study of the hydro-poweracts nf' tho v-iuro rn-ia +.h0raf nro nn rPrPnTnmontmm Sn i'W P ior mndle re-

garding potential non-power benefits from a reservoir for hydro-powergeneration on the Saramacca A+ the o3 +.a ho,iiwever, arlou- ii

agencies of the Government were exploring development possibilitieswi^t n the Saramacca rit"er basin other than power. For example, ;n-vestigations were undertaken for new roads and improved navigation+t fPos+er forestr-y ad r n +he area. -n-ves+i,+aton fan f-r-

ther agricultural development were also under way. All of thesestu44es have ber roe-ngr- o es neenety As a -res't

two separate studies havo emerged: (a) Saramacca III, the hydro-pw proa a+ for .4 c.h afeas l report -14 "an+ 4i nva4lable, enA (b)

the Ocean pr ject, an irrigation project, drawn up in preliminaryf. 1 .11l . -

Ine ucean project area is located on a spitu of ianu norunof the river and wJest of Paramaribo in the young coastal plain (seemap). This would be consistent witn the Government:s general policy,which has been followed in the past and which it is their plan tocontinue in the future, oI concentrating land deveLopment in thecoastal zone. The considerations put forward to justify this policyare:

(a) the relatively higher productivity of the coastalzone;

1 I P.a am+a -roje are, seti.a.esnh .for +eI-I sak ofsm-

plification, referred to in this report as the "Ocean-Saramacca.a -~ ,,n + 11Ha14 td 1. IJ *

(b) the greater availability of labor and the higherpopulation pressure;

(c) the existence of an infrastructure which caneasily be extended; and

(d) the availability of governmental, administrative,and social facilities which could readily be ex-panded.

1h. However, the Government has undertaken very limited in-vestigations to determine whether the most suitable area for agri-cultural development, including irrigation, is in this traditionalzone.

15. The other major irrigation project is the Stondansieproject. It would provide irrigation water for about 20,000 ha.in the Nickerie District and would require a dam on the Nickerieriver. A feasibility report is available and a mission of the EECDevelopment Loan Fund has recently appraised certain technical as-pects of this project. EEC is seriously considering the financingof the pro,ect._1

16. A plan which includes the implementation of these two majorprojects appears to be ambitious. 'Noreover, the projects have notbeen selected on the basis of a comparison of various alternativeareas and sources of water supply but rather on a general idea ofwhat would be politically and socially desirable as well as econ-omically feasible.

II. THE OCEAN PROJECT

A. Project Plan

17. The Ocean nroiect covers a net area of about 68-qOO ha and

is made up of two parts in different stages of development (see projectmap). T'he manior panrt,- abouit. 5OioM ha.,- pnresently-, converedA *th iiinalo-requires clearing and reclamation before being irrigated and drained.The srcnclr nn?a+.bhut 14,500li h, is alread-yn +An1v p a 1aredA_settled and cultivated. However, on the average, only about 2,800 ha.,of +he nlan ate raare nowz croppednr in nyr onn yr,n? mninlyx due to in-sufficient; water and an extensive land utilization. Irrigation ispracticed on a lim-Ated sale r b i,irrJn from. the Saramacca r_wi.er. Ad-ditional small scale land reclamation projects (Boria Polder, Tawajari

TA RU,"le the JJWMn, oln th.e in.±itiJLatiVL Of t'.. 3-eau, for Hy.o-e.lectric,WV%orks of the iRnistry of General Affairs, had been asked to studydthsie projcta onthe ionstiantives theDepartmeAor g were oinltur.=dansiea project on the initiative of the Department of Agriculture.

-5-

Poider, anrd jarikaba Poider) totaiing 2,04u na., are being executeawithin the eastern part of this area. Full scale development withirrigation would depend upon the Ocean-Saramacca project.

18. W-hen fully completed, the area of approximately 68,500 ha.would be supplied writh water an- drainage facilities and would beavailable for cropping. The touil land area now utilized for agri-cultural production in the whole of Surinam is about 46,000 ha. Theproject would more than double the cultivated agricultural area ofSurinam, would considerably increase the proportion irrigated, andpossibly triple the value of agricultural products.

19. The 54,000 ha. to be reclaimed, drained and irrigated wouldbe settled at the rate of about 3,000 ha. per year starting wTith thesecond year of construction of a multi-purpose project. The totalarea should reach full development within about twenty years.

20. The hydro-electric works under the Saramacca III proposalwould regulate the river flow and push the tidal encroachment of seawater back toward the sea. The flow of fresh water would be main-tained further downstream, thus providing irrigation water to a muchlarger project area. Three pumping stations near Uitkijk, SaraMaria, and Antoni Gron (see project map) would pump the irrigationwater from the river into three north-south supply conduits 6 to 7 In..long which would feed into the east-wqest main irrigation canal run-ning parallel to the Saramacca river over a total length of about50 km. No layout of laterals and distribution system is availableas yet.

21. The aren north of the mnin irrigation canal wouild have tobe drained into the sea. Eleven drainage pump stations would be re-ni irel alorng the northern nrniept hoiindrv_ A rinpg Hike (1 to 2meters high) would be required to protect the project area againstthp sea= T3he a sth of the m.ri v canal would dran into the

Saramacca river; drainage sluices would be provided for. No de-tailed Tvroiit of the drainage AvstAm hns vet hern made.

22= A main development rod (secondary road) would penetratethe project area in an east-west direction. Tertiary roads and farm-to-market roads *ld alsobe provi_ded for 1-inder the project.

B. Soils

r- _J ~Li -JJ.Lt~.L UJ.A A ~ jJ.L IjJtJ V0V AU J j J.L 'J t..; V d..L CdL.L V UV11"LLL.Ld U .LL & J c Ld..

flat marine clay sramps at about mean sea level. Interspersedt'AoughJuu Ti. t11h areac are- v.Lu sar.dy becuh-L L-dUes ±-isirO 3 o.- 4 ft~" u

above the swamp level and running parallel to the present shore line.

- 6 -

24. The clay saTmnp soils originate from saline marine mud. Underthe influence of fresh water and forest cover, the upper 12 to 18 inchesbecome desalini zed, partly or sA; mnrl an nonmn-rn co ^I 4 dated. These

soils, when covered with forest litter and decomposing organic matter,

The soils are rich in plant nutrients, but areas of such soils required4 kes f"or protection1 f'ro.m sea and fl ood water, and3 extnieang.~ .tJ. F .

Ut,IJAi.L &J. %Al ~ dL ~L.LL1.U l v.L~ , iu UUALuid.LV~ZU L.ui6

The problem of salinity encroachment from the subsoil is always present.M_ 4U- - P_ X_ U _- _7- -4. _ _ _P X- . __ i _ _ _ 1__L AL_ rUrU1M:'LU 1-tPu.[-U LVI- WA16 JJ.EUUkUGUtIAU1i . 111QZUb (;.EUPJ, 1:-JLt'P1b 1' CUU L;E[JLUIU iIJUulare required for adequate drainage. Although these soils are among themost productive in Surildam, t,hey are at the sam ainet2.MU tl most expensiLveto develop.

25. The soils of the beach ridges are sandy and generally welldrained to a depth of three to five feet. Areas consisting of thesesoils are physically the most desirable for irrigation developmentbut, because of their wide dispersion, irregular shape and limited area(less than 20, of the total), they are relatively unimportant.

C. ILriation Requirements

26. As stated before, the Saramacca III Powier Development wasdesigned without consideration for the need of irrigation storage.No study for multi-purpose use of the reservoir capacity has beenmade, but very preliminary estimates indicate that sufficient waterwould be available to meet the expected power demand, maintain a suf-ficient barrier to salt encroachment in the river and provide irrigationwater for the net irrigable area of the proposed Ocean project,i.e.,68,5O0 ha.

27. However, it should be recognized that this estimate is onlytentative and operation studies must be made when additional dataare available on cropping patterns, irrigation requirements, and theflow necessary to maintain a satisfactory salt barrier in the river.

D. On-Farm Development

28. The project includes on-farm development, a substantial partof which would consist of the clearing of the 54,000 ha. portion ofthe project area. The question as to whether clearing on a relativelylarge scale would be done with heavy equipment or would be left tothe individual farmer has yet to be decided.

29. Land levelling would be necessary only in a few spots buton-farm irrigation and drainage systems w,ould be required on most ofthe 54,000 ha. Cambered beds mwould be needed on areas where treecrops (bananas; citrus, cacao) are to be grown, i.e.. on 30,000 ha.

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30. Since settlement would be included in the project, a majorportion of the on-farm development would be the construction of farm-steads. For plantation operations other farm buildings wvould alsobe required.

E. Land Utilization

31. An estimate of the present limited land use on 2,800 ha.within the semi-developed and settled area of 1L,500 ha. is shownin Annex III. The land at present under cultivation is found mainlyin the close vicinity of Paramaribo and along the Saramacca riverwhere river transport provides good access. An improved and regularwater supplv in ndiquatp qunntitv fcor these 1ands is expnected to re-sult in higher production per hectare to allow continuous croppingwithout drastic changes in the cropping pattern nnd production tech-niques. The present proposal indicates that within ten years allof this areaPn of W 1 )* UnCnX ha_ woTnadr hnaTv re-eciverl norol ni '.nT_q.OTN

supply.

32. For the remaining area of 54,000 ha., the proposed plan forcropping 4 '_ 1-++V .- -n -ae tha the+- biOes poto (400 rO1 ha)- would -e se

t4 JyJ.16

*J_.IaVJ.A...a U~,Q UJLIC. U V4ULJ ~ r~~. W \ -J4,SU.L'J. ¼J.J'J . VJ.JL&J.. Lfl4 UAL-LL

for the cultivation of rice. However, bananas are expected to be themost impjort- nt- crop 4n inrasn agiulua ino.s -^i; -the__-_4-I+- 4-

JI1J,JU LILj~JJk-d L U P~ .LJ.L LJL. 1~ .L&LJ .L ~UALCL± .L AI.IJIIIC.Q. '.A. UJL"l ULJ

project area about 15,000 ha. are earmarked for banana production.Ciu (L,aor ar.geus e dlu grapuitL)J vu-LU U' b LVe grow onabJUUt 8,oo haL. At

juice plant has recently been opened in Paramaribo and existing pro-Uuction oL citrus is nLot suffiL ciU_e::ntO fur a ±U.L1 UUtiL.LzC±ation oiflat

capacity. The remaining 7,000 ha. are tentatively assigned to cacaoproduction. T:e uouai area -would thus ±include about 30,000 ha. oftree-crops and 24,000 ha. of rice. Details of the proposed landutilization are shomn in Annex IV.

33. In areas to be devoted to bananas, the Government proposesto establish a large central area in blocks ranging from 300 to 1,000 ha.to be operated by the Government or private plantations for the ii-tial five to eight year period. This area would be surrounded bysmall holdings ranging from 1 to 6 ha. each for fawilies employedon the banana plantation, who would at the same time be trained inbanana culture. Eventually these plantations wrould be subdividedand made a part of the surrounding small holdings. Under such aproposal, packing sheds, houses for plantation management and officeswould be provided. Cableways for transport of the bananas from thefield to the packing shed would also be provided as part of the dev-elopment. Areas to be developed for the production of citrus, cacaoand possibly some vegetables would also be equipped with limitedpacking and processing plants.

34. The preliminary cropping pattern indicates that initiallythe project would depend upon one crop, bananas, as the major source

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of income., At full development, about half the berLefits from thecropped area would come from bananas. Recent banana exports haveamounted to about 2,000 tons per year, mainly shipped to Europe.A n expansion of banana production is planned for 1964 and 1965,with the objective of increasing the quantities available for ex-port to 52,000 tons. This expansion would take place in Nickerie(Prins BernhardpDlder and a recently constructed banana polder);in the Santo Boma project and the Jarikaba polder (part of theOcean project area). An expansion of production as indicated forthe Ocean project !would, at full development, make available about300,000 tons of bananas a year for export.

35. Although recent limited experiments in banana cultivation(Boma polder, Prins Bernhard polder) have been very encouraging, pre-vious attempts at banana production in Surinam have not been verysuccessfuL. A less ambitious program might be aiser, since there isno widespread experience in banana production, especially with smallholders, and only limited marketing channels for this highly perishab:Leproduct have been established thus far. How much of the benefit poten-tial could eventually be realized would depend to a large extent uponthe availability of suitable and experienced administration and manage-ment for the organization of the process of production, transport andmarketing. Also the heavy reliance on one crop may bring about anunduly hi,gh risk. Further consideration should be given to other highreturn crops and livestock to provide greater diversification in thecropping pattern.

F. Settlement and Forms of Exploitation

36. The Gov(ern-rment. at nreenft_ has no firm plans for the set-tlement of the area to be reclained under the Ocean project. Pre-

(a RBnnnn.s - Settlpment. nlarns w.rn dqnr-rihed above inparagraph 33.

(b) Other Tree Crops - Plantations and small holdingson lnn1 s leass1 qii-tabhI fo-r hn-nnrn -ruriild 'hp lrarglv

integrated wqith other types of farming (15,000 ha.).

(c) Medium-size Rice Farms - Rice production on unitsof about 20 to 40 ha.w uou1ld be mehannzed. Tkhesewould be family farms Tith a 75% cropping intensityin the aut-mn crop and 5 in the spring crop (15 ,0 00ha.).

(d) Subsistence Rice Farms - These wsould be largely inte-gratWed Ld± UdIu l db^adnlanaa aUI%A oJthIel Vt.re clop pro'ductio on

small holdings. Part of the area might be settled ason-rp subsistence 7ic fa,,. (900"a.)

37. The subsistence rice farms ijould yield only marginal returns,and further cons-deraton, slhould be given by +1- rGoverra-en to a bettDrutilization of these lands.

TTT CA-A?4Art'A TTT TJVniDCr fDC-TMT7r* .L.L ~ U IiJ±i.J L .LJ... 1±.J.L'../ I ILIJJUI_I5J.

38. I!arza Engineering, the consultants to the Governxi,ent forvile IJ. cdcLuCa 1.Yyu-oUelec jJ UJeta, were asAkU tWu d SJ IJulid.1aLI

future potier requirements and to prepare a recommended power programa.LUI WUT d.PL'U | J.11r Wit UQ 1IiY*Ul-VL ^1YU-U-U W C:', |UL-L L-U0U'U.LL;o

39. In theIlr rport, presented in Dece.mber 1961, the cUiUr LtatLsindicated that the resent system, plus the power to come from theBrokopondo project,- would be sufficient until about 1968. By that

time a generating unit of 18,500 kwJ capacity should be completed andconnected to the power grid. In order to meet this schedule and toprovide for future demand, the consultants to the Government consideredfour alternative power developments:

1. an entirely hydro-electric development of the Saramacca;

2. thermal installations;

3. a combination of a smaller hydro project on theSaramacca wJith a subsequent thermal installation; and

L. a thermal installation to be followed by Saramaccahydro development.

Of these alternatives, the alternative under three, the smaller hydroproject known as Saranacca III plus thermal project, ras consideredthe most favorable alternative. The consultants made the followingrecommendation:

'Pie recommend that the most favorable hydro-electricproject - Saramacca III - be planned as the firstincrement to the svstem. Inauguration of this nro.ectwill be needed by 1968, at which time the existing andcommitted pnower supply will be fully utilized. Bv1976, still more generation would be required. Our

1/ At ,roc-rio the Surininm Aliuminuim Gomnanv (Snralco)- a sub-

sidiary of Alcoa, is constructing a pow!er station which willproduce 150 IWs of firm power starting in 19Q6i or 1965= Totalestimated annual production of the station is estimated atone billion .1vH. Under the terms of an agreement bettren theSuralco and the Government 80,000,000 KIH with a maximum capa-,city of 16 ?` wi be rade -- a,,a iblen+ to, t r_he~ Gvre o'f

Surinam. The balance will be used by the company in an alum-i.. - s1..elter to be built at P, ------

- 10 -

most economical subsequent installation. However, thisconclusion should be re-examined du-n the early 1970's

the installation of one hydro unit in 1968 of 18 IP! and a secondhy--o ,t -oP 18 Tg,! in- 1070. These .--l be followed by +wo +he alIi %L .p J VL"LL W ~JL I.LA I.: L.LJ.L .J.;IW 4. 1 O~ t.JU.4.iJ." UJl .Li.LJ'.WUL J vu w j U>~J IC.

units of 12.5 -ViTJ when required but tentatively scheduled for 1974 and.17975. ^L ii. UILLJ.U ,JyUUU Ui-t 0o. .180 1lw.J wLoul LA- iLnstaUC.LleUd -1 .7197, br .Lg=

ing the total hydro power capacity to 54 UP.!. In combining SaramaccaIII i,th the Ocean project, only the costs and beneC ts fr-om the h,ydr-ounits have been considered.

41. The demand projection for power as presented by the con-sultants is considered accept'able. The ne iRnstallations are phasedto take into account the fact that part of the existing plant is veryold and w.ill be retired when the Brokopondo pow-er becomes avai:iable.

42. The consultants have also indicated thnat construction ofthe darn anci hydro works should start in 1965 if power is to be avail-abie to meet the demand in 1968. This schedule of work seems reason-able enough. If a start is not made on a hydro project by 1965 thepower requirements for 1968 will not be met unless one of the thermalunits is brought in first.

IV. :tLTI-PURPosE (OCEAN-sARA,RCCA)PROJECT COSTS AND BEIEFITS

A. Costs

43. That the Ocean-Saramnacca project would be a very largeundertaking for Surinam is reflected in the project cost estimates.Its cost would be 605i more than all Ten-Year Plan expenditures onall sectors from 1954 through 1962. In addition, there would be com-plenientary investments which would become necessary as the projectwould be implemented, e.g., for storage and harbor facilities forthe export of large quantities of bananas, etc. (see par. 56). Thesecosts wtould be an additional charge within the country's total devel-opment budget.

44. The cost of this multi-purpose project would include threeelements --- irrigation (including larnd development), power and jointfeatures. The irrigation cost estimates are Mcainly based upon thoseof the Ocean project which were supplied by the Government of Surinam.The estimates for power and joint costs are taken from the consultants'report, w1ith slight modifications. The flow of costs for a combinedproject indicates that investments would be incurred over a periodof 17 years.

- 11 -

h4. ThA largest element for irrigation and land develonmentis on-farm development for the new areas to be brought into produc-tion. These nosts Would vary depnending- on the nronosed cronpingpattern and the size of holdings. As pointed out, detailed planshave not been. made for on-farm devn npment and qtt1PrmPnt thus nodetailed cost estimates for these works are available for the Oceanpro n the Nickie Distrct and in theBoma polder, however, indicates that costs for on-farm developmentwould, b,e .n the-- ordr ofP:,.rr.i,1 A is Ar +ir r.ai. n

1Equivaler.t i n

Sf/ha. $/ha.

Clearing 200 - 35o 110 - 190Ivrrigatwion anUd u.uExinage 30u - L40U 16U - CC

Cambered beds 300 165vaLs'lseaus adu uuiluings 4UU -- 5U0 CC - 275

t a_l uo U f r z 0TotSal: 1,200 l,| 660) 8CU OE

This wJould amount to a total of from Sf 57.6 to 76.4 million (US $equivalent 31.1 to 41.3 million) for the area to be reclaimed. Thisdoes not include any overhead expenditures for settlement or for as-sistance to settlers during the initial establishment period. Forthe purpose of this preliminary calculation, on-farm development cost:;have been estimated at $35.6 million for the 54,000 ha. requiring fulldevelopment, including the cost of cambered beds on 30,000 ha. Thecost of improving land already under cultivation is estimated at $5million. It should be noted that land development costs would be in-curred at a rate of almost US $2 million a year if the developmentwere spread over nearly twenty years.

L6. The other major element for irrigation and land developmentis for project works (primary, secondary and tertiary canals andpumping stations) which the Government estimated would cost $22.9million. One minor element of cost is for processing facilities($6.3 milLion) brineing the total cost of the irriLration and landdevelopment features to $69.8 million.

47. Estimated costs for operation and maintenance of the irri-g2ton aspects of the pronit aro hbad on experiennce Aith simiIardevelopments in Surinam. The average annual estimated cost of $23.00npr hectaqre incrums operntion and maimnteintane of the irHrigtoen and

drainage system, including pumping and the maintenance of access roads,but does not include anything for the operation and maintennnce ofthe dam or storage facilities. In those areas devoted to the pro-duction of bananas an additional ,10 per hectare is included for theoperation and maintenance of cableways or other means of transport.

- 12 -

48. The joint features of the project were estimated to costckl mtTr ilnnd the power element A7.35 million.

49. .J sni.mary of the esti.mated project cot frollo.ts SoewThatmore detailed cost figures are shown in Annex V.

Equivalent :in

JJ~~~~1~~~AS L.;lio US $..J4l~. U .IL2llio.nL5~UL'.

T -A L'-elop..wnt- ̂ -. -- A ga_tio-

features (land development,

supplies and farmsteads) 129.13 69.80

Joint features (dam, reservoir,diU access roadU) 27.7C 15.U

ruwe'- features kpower p.dl1L.and transmission) 13.60 7.35

170.h8 92.15

B. Benefits

50. The major benefits from the project would accrue from ir-riaation and power. Any benefits from transportation, flood controlor other possible beneficial results of the project would be relativelyunimuortant and have not been included in our calculation of returns.

51. Power benefits have been estimated by assuming that theywould be equivalent to the discounted cost flow for the cheapest al-ternative source of Dower. i.e.. a thermal installation. This mayappear arbitrary, but it is the best way of determining the contri-bution which the power aspects of the proiect would make to the econ-omy.

52. The estimated irrigation benefits have been based upon theeronning npttern nronposd hv the ronvPTrnmP-nt. (Sep Annexes TTT nnriIV). However, the projected banana yields per hectare have been re-duced by one-third qin ce thev seemed high in comrparison with yielrdsobtained over long periods by other major banana producing countries. Other

i I el A- n7it'H nns uere i gre pnon rT,, th tlheo (Imrpvenm.nt. Aiir na rdi -

cussions in Surinam. Commodity prices for the various commoditieswere a1 czl9 f04 Qd1isccarl ar.d oagee on a.1 rl+.-ie lry crsvt-ra hbasis.

On-farm costs of production were based on records of actual experience.

- 13 -

53. Flananas alone would account for nearly one-half of total netvalue of production. Rice would contribute less than 20% and the re-mainder would come from citrus and cocoa (See Annexes III and IV).

54. On the basis of these very preliminary estimates and assumirgthat the project could be implemented as proposed, the net value ofagricultural production at the stage of full development would reachabout Sf 33 million per annum, of which about Sf 3.5 million wouldcome from the lands to be improved. Power benefits, which wouldbegin to accrue much earlier. in. say, five years. would be aboutSf 2.5 - 3.0 million per annum. The net annual benefits from themulti-purpose project at the stage of full development would there-fore be some Sf 36 million.

55. Flowever, the assumed agricultural benefits could only bebrought about with efficient management and a satisfactory backing-up by extension services to farmers including credit and marketingfacilities. Tt is donhtfuil whether thAse sprvices roild be madeavailable in sufficient quantities and quality required for a projectof this se q-nrl viji th an iinhnb1nne,nnre ron,nnn Dpattern CPr'ntanininrp D

high proportion of difficult crops.

r. Ecovnoei JTivAfia-ion

56. The proposed production of bananas would, at present prices,i,n,ncr enase the valu ofn nsicul-urvn ,," e+,orn.% n¶,. e abu Sf~.n, 2 1 . i11lion.

This is equivalent to an increase of 26dJ in the value of total ex-JV~ -oLis L"W V.* t16 ' ' WU4§Vu.L CU&IV.L VD tkIVU IU v } OS v-I c V I mes DG thde

1960 level. The fact that Surinam is an associate member of the EEChi'as enco-arage 6A tUhe G-Over-JLI en1 too thInkLLA i1n thes UterrLI,. ,Jur-Lna..IL sclose ties wvith Holland and its status as associate member in theEECi~IULULU U'd be etL,t:dU to Vt L. U s ub.'is tar,tiL.±L aLU dva,ctges.

if 7. T- 4 A1 _ _P _4 A_t_0 4-1 --:__ -___S4-- _ 4 {.. I L* zL1 S1W ctuot111-0b U | C.U1 DLLU-V PUU L uCL.L1".Jr UU VIV -UO UO V-L

storage, handling, transportation and marketing of large quantitiesof.L ropLical IrUIVSL viJV -rUa EuoJJea.1 portsUQj, accoUULL..L."Lr .L4.- Ufo 'l VI. ULL8ft

agricultural net benefits, the economic evaluation is based on bene-fit estimates at farm leval. For a fiull ecoinic evaluatLol of apotential export industry for tropical fruits, studies would needto include uonsideration of storage, handiing, shipping- and distri-bution costs and of market outlets to determine the ability of theproposed industry- to effectively compeie in the Selected markets.

58. J.Theoretically, the inivestment in the Ocean-Saramracca project,including costs and benefits of the hydroelectric facilities, couldbe expected to yield an average annual net return to the economy of

abou 1 - TaKing into account tne earnier operation oi tne powerproject, it may be estimated that the agricultural benefits wouldcorrespond to over 800% and the power benefits to less than 20,-, ofthe total benefits. Excluding the investment for power and also thepower benefits, the annual net return to the economy would be about14% for the irrigation project alone. This would be before alloca-tion of any joint costs to power.

59. In practice, it appears doubtful that this benefit poten-tial could be realized under existing conditions and on such a largescale. The Ocean-Saramacca project calls for very heavy commitmentsover a lonig development period. A target to double the total areaunder cultivation over 20 or 30 years would be acceptable for acountry's long-range plan, but to make such heavy commitments in oneproject is full of risks for a small country. Estimates of futurecosts and benefits become extremely speculative as the developmentperiod extends beyond eight or ten years. In spite of these quali-fications,, however, the benefits from the Ocean-Saramacca projectappear large enough to indicate that irrigation development inSurinam, even under more conservative assumptions, would be prom-ising.

V. ALTERNATIVE PROJECTS

60. The Government is proposing to undertake both Stondansieand the cear.-Srarocca roject n thei ?-o.qA-troely no."a futu11re.- T'he

Stondansie projectsis the more modest in size. It would develop some20,000 ha., over- -.S trns at - 04* cost of4 about US T 9 .i r -il-

lion. To undertake either Stondansie or Ocean-Saramacca would placen ho nnr 1 a_Aaru nv +F1 n nnnA in.'I +,,1 - -1 Am va A o+T-be T4 wro M a +-; Tl ',n A

t *.C Vr L.ILs vIs4 vn u,& a6 , L 'u vv.L UUU a.L a*J4.JU v a c v 1 vS 5 O4jJ OC> ~. v_J s cf

management staff of Surinam. To undertake both, it is felt, wouldpla.e^ xesv strain or. the agricult,"al organization, the ex=

tension service, the credit, supply and marketing programs, on allpar.'Is of t;he adul"LrS tr-ation. II= Si;.J1UlaneUq_UOu r..lrana Vnwu.ld

inevitably stretch out the completion period, thus increasing capitalfln a, ¶ tE <3 1- T fl -- TV + T-lb Vtv i4 1f 4 . + e

61s.ia, OJJ~ jL, It .Jv JA.d be preferabe tJJ. o V nVa one relU%el i aJ.l

project and to concentrate all the available management skills andpb' L.c adU ULJ±Ii rtJrati.-V Ua.LILU ULL on LL7fIAIG VULL out t selectedU pIroJt~uu

expeditiously and economically. The size of the Stondansie projectappears toU be near tu - upjperL .LiIUL tJ±LC coulU be £eco,-,H,eUdU for

implementation within the near future.

62. However, studies should be undertaken to pinpoint the mostpromising alternative for irrigation development lith or without ahydro-power component. The mission feels that a less costly and moremodest Ocean-Sararnacca project couid be prepared and compared AithStondansiet and any other alternatives which seem promising. Alternativeareas vithin the Saramacca basin should be taken into consideration.

1/ This discount rate would equate the estimated costs and benefitsof the project over its estimated lifetime.

- 15 -

In this context, consideration might be given also to using availablewater in the Surinam river for irrigation. The Surinam is the largestsource of readily available water in the country. After the completionof the Brokopondo Hydro-electric project, its regulated flow will beseveral times that of the Saramacca. Ue believe that water from theSurinani could be used to irrigate the lands on the old coastal plainbetwjeen the Surinam and Saramacca rivers or could be diverted intothe Saranmacca for use in the Ocean project area. The former areawould be -ell suited to a diversified croppinn pattern includinglivestock production. No plans have been made to use the Surinamwater other than for nowzer nrodneti-on.

VI. PLANNING AND IiPLEMEINTATION OF PROJECTS

63. there is n ob-vious needA fo.P- greater c d t ir.planning of projects. The fact that two separate projects, one forLyVUVV PjWoUw andU UoneV forjidg±On, wthiJ±n to s[Im rver bi wereprepared independently, demonstrates this.

64. Greater coordination is also needed in the carrying out ofprojects. It would ciearly be mucn more efiicient to nave one agencydealing with design consultants and construction firms, and carryingout many of the other activities necessary to bring a project tofruition.

65. A single body responsible for all water and power development,programs and their operation would meet the needs of the country bet-ter than existing arrangements. Such a body might absorb the presentBureau for Hydro-electric 7Torks and the Bureau for Rural Development.

66. When a project has been selected, certain other aspects ofsuccessful development should not be neglected. Sufficient incentivesshould be provided for the settlers and other investors to assuremaximum effort and participation in the development. This would needfurther attention during project preparation, especially with regardto the preparation of a settlement program and the possible participa-tion of private interests in plantation agriculture. ilanagement plansneed to be prepared in conjunction with the physical and settlementplans for the project. Methods and standards for the selection ofsettlers and investors should also be established to assure an ef-ficient utilization of the reclaimed land. At the same time a pro-gram of agricultural education and intensified extension services wouldundoubtedly be essential to assist new settlers in gaining the tech-nical proficiency which would be required for tree crops and commer-cial rice production. A credit program for the project area wouldhave to be ^worked out.

VTT - ATrN.TT.>JTf1J A.NTn PPC'.rl7P MTPTTONTTq

67. The conclusions can be summarized as follows:

(a) agricultural development in Surinam has been limitedm.airly, 4to -h -osa aras -m l to -h - yo-1, lgVI.i.L IJJ JJ.LtU L%'JCZ Ud..L d.J. C-CL ,JJ± .L LILCUL .Ly VV VLL J' oungcoastal plain. For intensive agricultural produc-LULon, jpadrL' LUU.Ld-ly 01 'UilU1 V dL dJIU A&PUuL urupo,irrigation is required. The young coastal plain,howie-ver, lis dLfLcult and ex-penive to reclaim anddevelop; most projects undertaken so far have beenrelatively sma.L.L. Alternative irrigation possibil-ities on lighter textured soils have not been ex-plored;

(b) irrigation appears to be economically promising, butorganizational deficiencies and lack of experiencecail for caution in undertaidng large projects;

(c) at present two major projects, Stondansie and Ocean-Saramacca, providing irrigation of 20,000 ha. and68,500 ha., respectively, are being considered bythe Government. The total area at present under cul-tivation in Surinam is only 46,000 ha.;

(d) the Ocean-Saramacca project, as proposed, would costnearly US '100 million equivalent; this would beabout 60Z more than the total development programduring 1954-1962. The project would take nearlytwenty years to yield full benefits and half of theexpected benefits wiould depend upon exports of bana-nas. The mission has serious reservations about theproject in its present form for the folloTiAng reasons:

(i) it is too large in relation to the availablefinancial resources, technical organization,and the number of farmers having the necessarycompetence in modern agriculture;

(ii) it is too speculative because cost and benefitprojections extend over a long developmentperiod and because of the heavy reliance onbananas, a risky and perishable crop.

68. It is recommended that:

(a) before substantial resources are committed to a Dar-ticular project, comparable alternatives should beconsidered. This -ould require a comprehensive studyof water resources for power and irrigation develop-ment. The studyr should consider. but not be limitedto, the folloiw7ing possibilities for resource developmerit:

- 17 -

(i) 2vel-'on of water from the S-ialivrfor Jr-Ii) U±V±L %esL1 U± WUt-±I ±U111Ld1 UI: UI-LlIdAII 1J.VUIV LUL- L1

rigation of lands located betwjeen the Surinam andSararfiacca rivers4

aLVrflaULve usei VI La.uaIr`acca waLt-r lWIAILULI UIIU

Saramacca river basin;

(iii) alternative uses of water diverted from the Surinamriver, combined with that of the Saramacca withinthe Saramacca basin;

(iv) the Stondansie development.

(b) the study should consider all multi-purpose aspects of ir-rigation and hydro-potwer development, including apprcpriatecomparisons wTith alternative combining irrigation withthermal power;

(c) any major irrigation, reclamation or multi-purpose projectwill have such a decisive effect on the country's economythat it should be viewed as an integral part of the countryrsdevelopment rather than as a self-contained undertaking.Coordination with other development is essential, especiallyin agiculture, both at the planning and execution stages;

(d) consideration should be given to the establishment of asingle body responsible for the preparation and executionof all water and power development programs and theiroperation;

(e) the size and phasing of the total irrigation, reclamationand land development program, including any major project,should be determined on the basis of a realistic estimateof available human and financial resources;

(f) consideration be given to the possibility of more diver-sified cropping patterns and a more varied land utiliza-tion to minimize dependence on one or two high-risk crops;

(i) the Government should avail itself of management staff withexperience in commercial production for export to ensureefficient Droduction on large areas to be devoted to cashcrops, particularly bananas. Sirilarly, arrangements fortransportation, handling and marketing of commercial cropsshould be further studied and only undertaken by or inassociation with exnerienced individuials or firms;

(h) n settlement nrngram he Tworked out for the area selected.including plantation operations, family holdings and small-holdings.6

~J.JC-L;V.LS Us V *

April 10, 1964

List of Annexes

I. Projection of Area to be Developed for Cultivationin OUV±LildIll

II. Agricultural Exports and Imports

III. Ocean Project - Present and Estimated FutureBenefits at Full Development from Improvedwater burpl.y

IV. Ocean Project - Proposed Land Utilization andEstimated Benefits at Full Development

V. Cost Estimates

ANNEX I

PjECQAtion of Ar-ai to !Le aevel eId vat i m in Surin m3- 981)

( Hec tares )

District FrojecL 1262 LI 65 1966! 167 1 L968 L3 l7 1971 1972 1971 3 19-75 l976- 2•7 1978 197c9 80 L981

Nickerie Combination PlEan 650 1050 1100 600 6.00Wageningen

a) Rice farms 170 170 170 170 170 150b) Foundationl JOO 500 500 500

left. Side Nicker-e River .__ . _ 1000 LOOO 2000 1000 2000 1000 1000 1000 1000 1000 1000__

Sub-tota.L: 1320 1720 1770) 2270 2270 2150 1000 1000 1000 1000 1000 1000 1000 1000

CoIronie District Totness Polder 29D

Suluinam BonL Polder '950TavELaari Polder 840Jarikaba Polder 25V

Sut-total 1200 840

Saramacea Tijercreek West 890OceaLn Project __ 3000 3000 ,Dou 2000 200C 090 -3000 3000 0CL _O 3010 00 2222 4222 ? 4 C00 4990

Sub-totaEl 89C 3000 3W2 3000 2000 20002 3000 3000 3000 222 2000 4000 4000 4300 500

Total Area tn be Developed __ 5560 477(2 L270 4270 4150 40( 40 4000 4C0O 40_0 4000 4000 4000 4000 LOGO 00C0 Y2QQ

Cumnulative Totaal of AreaLUnder Cultivationr 1300 1llbll60 500 TAM 1 L '' t31 7AI'i 76)X,' bOc0O 8 8L' eR)t4n 9218o 94L)-o10 ±06lt: 8 11R IC8HO 112680 11(680 122 5

ANNEX II

Agrri turLI EXPOrt5 and Tm o Is(1956 - 1960)

(VELlUe of Sf'000)E X P FO T I M P O R T

Product 1956 1957 i958 1959 1960 1956 1957 1958 19)9 1960

Shrimps 136 '72 153 508 '512 Meat and meELt products 1.254 1.: 2 1.506 1.638 1.896Rice 3.428 2.728 3.684 4.254 4.l872 Dairy products and eggs 1.392 1.340 1.143 1.729 2.011Sugar 182 345 121 369 689 Fish and fish products 800 968 1.007 1.084 1.171Cacao 102 185 173 305 :321 Grain and grain products 2.673 2.757 3.009 2.564 2.771Coffee 596 693 516 871 254 Sugar and suigar ioroducts 239 185 244 324 404Citrs '771 665 862 1.454 1.049 Fruit and vegetalbles 1.525 1.460 1.610 1.679 1.934Coconuts 76 103 80 29 36 Coffee, tea, cacao, spices 846 317 823 945 897Other products 181 2:L6 217 232 272 Other products _922 937 1.163 1.254 1.65_

Total 5_"72 LZ ( 5786 8.022 8.005 Total 9.651 9.766 10.505 11.2L7 .12.742

Index Index1954/57-:100: 118,4 108,3 125,6 173,5 173,3 1954/57=100 100,7 110,2 113,6 124,6 138,7

Percentage Percentageof Imports exceeding(coverage): 51.9 43.4 48.8 61.6 55.2 exportEi: 48.1 56.6 51.2 38.4 4Z4.8

Source: J.B. van As, G.P. Tiggeslman, Developmients in Suarinam Agriculture, Neth.J.Agric.Sci., Vol. 10, 1962, Nr. 4

ANNEX III

OCFAN PROJECT

Present and Est'iated Future Benefits at Full Delvelonetnt; frolm ImProvei water Suppl

r e s e n t F u t. u r e Incremental1/ Oross Value of Neit Value of Gross Value of Net Value of Net Value or

CMro-, Hectares Production F'roduction Hectares Production Production Production' ~~~~~~~~~~~~........... ....(S.f 'C000 ...... . .. ........ .. res 'oO) .......... . .. 7 Sf 'CO00)

Biennial a.nd Perennial:

Banana UO 130 85 110 130 815Citrus 29 25 16 29 25 16Coconut 27 12 10 27 12 lO _Clacao 171 102 67 1,250 1,115 737 670

Annual:

Paddy 1.711 190 174 10,000 2,700 1,714 1,546Maize 135 40 25 )Peanutts 79 54 35Legumes 88 35 25 ) 2,651 3'500 1.LC5 1,240Veget;bles & Other 53 53 50Pasture 393 88 53 393 .8 53

T'otal: 2.796 729 540 14,460 8,370 4,040 3,500

1This represents the average area cropiped in any one year.

A AThr! - TIT

OvceanI- Pro,VcUU

Proposed Land Utilization and Estimated Benefits at full Development 1/

(54,000 hectares)

Production Cost Net Valuein Gross Value of of of

_ros Hectares '000 tons Production Production Production(S.f million)

Bananas 15,000 300 21.0 6.3 i4.7

Oranges ,4h,0 48 2.9 1.0 1.9

Grapefruit 4,000 100 4.3 1.2 3.1

Cacao 7,000 7 6.3 2.1 4.2

Commercial ricel.5,000 68 6.7 2.2 4.5

Subsistencedce_Q9,000 27 2.h 0.9 1.5

Total: 54,000 43.6 13.7 29.9

1/ The nrnipntt nlan would ho imnTlmAntpd in abouit 17 vears: assumingvarious development periods for individual crops (seven years for citru.s andcacao) full de1 v - opn.1 nrnint wnoitA1d no.A. '-ht he reahedr iintil the twpntieth year.

ANNEX V

Cost Estimates

U.S. $ I4illion

I. Land DeveloDment and Irrigation(Ocean Project)

On-farm development 35.60Proiect works 22.90Processing facilities 6.30Tmprovement of land in cnltivation 5.00

' __b-total: 69.80B

II. Power

Power plant and equipment 3.83T>rans-013sion. f-acillities 35

III. Joint Power and Irrigation

Dam and reservoir 9.441rcLat, equipmet11, ec. 0.0Contingencies 15% 1.42

aIginSer -juper--V.'I Uin aund overbheadl 10% 1.09

Access road 3.00

Sub-total: 15.00

Total Project: 92z1,

Note: Estimated costs for construction of the dam and reservoir andpower features of the project were provided by the Governmentand are in the main estimates prepared by Harza EngineeringCompany International.

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