Report No. 828a-CD FILE COPYAppraisal ofLake Chad Polders Project*ChadOctober 16, 1975

Western Africa Regional Office

Not for Public Use

M

Document of the World Bank

This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties. Its contents may nototherwise be disclosed without Worid Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit CFAF FrancUS$1 = CFAF 225CFAF 1 = US$0.0044

WEIGHTS AND MEASURES

l kilometer (km) 0.6215 mile1 centimeter (cm) 0.033 feetl hectare (ha) 2.47 acres1 metric ton 2,207 lb]1 kilogram (kg) 2.207 lbs

ABBREVIATIONS

AFDF African Developwent FundCCCE Caisse Centrale de Coopération EconouiqueFAC Fonds d'Aide et de CoopérationFDAR Fonds d'Action et de Développement RuralFEU Fonds Européen de DéveloppementGMT Grands Moulins du TchadITA Ingénieur des Travaux AgricplesITR Ingénieur des Travaux RurauxMA Ministère de l'Agriculture, de l'Elevage et des Eaux

et ForêtsMATE Ministère de l'Aménagement du Territoire et de

li'EnvironnementONDR Office National Pour le Développement RuralSODELAC Société de Développement du Lac

CHAD

LAKE CHAD POLDERS PROJECT

Table of Contents

Page No.

SUMMARY AND CONCLUSIONS ............. ................ i - vii

I. INTRODUCTION ........................................ 1

II. BACKGROUND .. * ..... * ................... 2

A. General ...................... 2B. The Rural Sector ............................... 2

III. THE PROJECT AREA .................................... 5

Location . ...................................... 5Access ........ ....................... 5Climate ........ ............................ 6Existing Works ...... ......................... 6Soils . .......................................... 6Present Cultivation ..... .................... 6Population ....... ........................... 7Land Tenure ....... .......................... 7Agricultural Research . .......................... 7SODELAC ........ ........................... 7

IV. THE PROJECT .......................................... 7

A. Summary Description ..................... ....... 7B. Detailed Features ............................... 8

Irrigation and Drainage ....................... 8Agricultural Development ...................... 9Assistance for SODELAC Reorganization ... ...... 10

C. Water Demand, Supply, Quality ................... ilD. Status of Engineering and Consultants .... ....... 12E. Irrigation Works Construction ........ ........... 12F. Project Impact on Ecology .......... ............. 13

This report is based on the findings of an appraisal mission composed ofJ. Ropiteau, R. Grimshaw, A. Kaunan, and M. Fireman (Bank) and P. Maistre(Consultant).

Table of.Contents (Continued)

Page No.

V. COST ESTIMATES AND FINGNCIAL ARRANGEMENTS .... ........ 13

A. Project Costs .13B. Proposed Financing ...... 15........................ t5C. Procurement ..................................... 17D. Disbursements ................................... 17E. Accounts and Audit .............................. 18

VI. ORGANIZATION AND MANAGEMENT ....................... 18

A. Organization ................................... 18B. Staffing ....................................... 20C. Farmers Settlement ............................. 21D. Training ....................................... 23E. Credit ......................................... 23

VII. YIELDS AND PRODUCTION, MARKETS AND PRICES,FARMERS BENEFITS AND RECOVERY OF COSTS .... ........... 24

A. Yields and Production ........................... 24B. World Markets and Prices for Project Produced

Commodities .................................. 24C. Local Marketing and Prices ..................... 25D. Farmers Benefits and Cost Recovery .... ......... 27

VIII. ECONOMIC BENEFITS AND JUSTIFICATION .... ............. 29

IX. RECOMMENDATIONS ..................................... 31

ANNEXES

Annex 1 Agricultural StatisticsTable 1 - Cereals and Seed Cotton ProductionTable 2 - Country Exports

Annex 2 Project Area Soils

Annex 3 Agricultural Development.Table 1 - Crop ProducticnTable 2 - Settlement Farmer Gross IncomeTable 3 - Settlement Farmer Budget and Cash FlowTable 4 - Labor Requirements - Man-Days

Table of Contents (Continued)

Annex 4 Societe de Developpement du LacTable 1 - Income Statements

Annex 5 Irrigation WorksTable 1 - Irrigation Works CharacteristicsTable 2 - Construction Schedule

Annex 6 Water Supply and Quality, Irrigation Requirements and DrainageTable 1 - Lake Water Levels at BolTable 2 - Water Requirements

Annex 7 Project CostTable 1 - Project Cost and FinancingTable 2 - Construction WorksTable 3 - StaffTable 4 - Staff (continued)Table 5 - HousingTable 6 - VehiclesTable 7 - EquipmentTable 8 - Direct ExpensesTable 9 - Direct Expenses (continued)Table 10 - Administrative and Indirect ExpensesTable 11 - Income Statement and Cash FlowTable 12 - Consulting Services and OtherTable 13 - IDA Disbursement Schedule

Annex 8 OrganizationOrganization Chart No. 9744Schedule 1 - Terms of Reference for the Engineering Consulting

Firm Providing Seconded StaffTable 1 - Expatriate Staff SalariesSchedule 2 - Terms of Reference of the Research Staff

Annex 9 Economic PricesTable 1 - Marketing and Processing CostsTable 2 - Forecasted Farm Gate Economic Prices

Annex 10 Government Cash FlowTable 1 - Capital Recovery IndexTable 2 - Capital Recovery Index Including all Government

BenefitsTable 3 - Government Cash Flow

Annex 11 Economic CalculationsTable 1 - Economic CalculationsTable 2 - Sensitivity Analysis

MAPS

CHAD

LARE CHAD POLDERS PROJECT

Summary and Conclusions

i. The Government of Chad has asked IDA to help finance 1,200 ha ofirrigated agricultural development using the waters of Lake Chad. The projectis based on a feasibility study financed by Fonds d'Aide et de Cooperation(FAC) who employed SCET, of France for preparing the Study, and on the find-ings of an appraisal mission which visited Chad in November 1974.

ii. Given Chad's very limited agricultural resource base, Government'sstrategy options for developing the rural sector are very restricted. Thereis a real limit to the level of increases in farming incomes that rainfedagricultural development projects can generate. Currently, income levels inrainfed areas of Chad are about US$35-50 per capita. With present technology,these can be increased by maybe 50 percent, but the beneficiaries from suchprojects will continue to remain very poor, and the food base of the couatrywill continue to be dependent upon a rainfall that even in normal years isvery variable, and that from time to time falls to a degree that nationalcatastrophe results. While rainfed projects will continue to be allotted thehighest priority, Government believes that in time it will be necessary todevelop the irrigation potential of Lake Chad and the rivers of the Lake Chadbasin, because irrigation alone can solve the critical problems faced by theeconomy as a whole and the rural sector in particular. Some of the benefitsof developing the irrigated sector would be: greater diversity of crop pro-,duction, better utilization of livestock resources, evolution of a high tech-nology agriculture, insurance against the disruptive effects of drought. Thecost of developing the irrigated sector, however, is high, and Chad cannotexpend large sums of money for irrigation works over large areas and in ashort period of time, to the benefit of relatively few farm families.

iii. Government believes that there is a case for making a start in irri-gation, even if this is at the expense of some development in the rainfedsector; this is not because irrigation projects, such as the proposed project,can be duplicated so easily as to have a rapid, major and favorable impacton the economy, but because only in this way can Chad begin to obtain theexpertise in irrigation technology, the trained Chadian personnel, andevolution of the institutions needed to exploit its irrigation potentialeffectively and in the long run to improve the economic base of the country.The project appraised in this report would be a pilot operation economicallyviable in its own right and designed to achieve the foregoing objectives.

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iv. The project would comprise development of two polders I/ alreadyreclaimed from the lake: Guini, 370 ha net are cultivable, and Berim, 800 halocated within 5 km of the center of Bol, headquarters for the Prefecture duLac. The project would comprise rehabilitating and completing the irrigationand drainage network for polder; constructing the irrigation and drainagenetwork for Berim polder; establishing a commercial agricultural developmentsection which would ease the way for farmer settlement, and be responsiblefor the first year of operations on all newly developed land; providing apackage of services to the farmers wno would take up cultivation of the polders;and expanding the program of adaptive agricultural research at the MatafoResearch Station. Project development would occur over a four-year period.

v. The irrigation works would include: for Guini polder, rehabilita-tion of 1.6 km of primary irrigation canals, a broken 0.9 km siphon, con-struction of a small pumping station at the water intake, 3.3 km of primarycanals, a complete secondary network, 2 km of main drainage collectors andsome 22 km of service roads; for Berimn polder, construction of two waterintakes, 10.8 km of primary canals, 30 km of secondary pipes, 12.5 km of maindrainage collectors leading to a drainage pumping station and some 50 km ofservice roads. Construction of tlhe irrigation works could start anytime.Detailed engineering studies at a scale 115,000 have been completed and bidclocuments prepared. The timetable for construction of the irrigation worksassumes the beginning of construction by early 1976 when lake waters are highenough to allow transport of supplies and equipment to Bol, which is onlypossible between December and March.

vi. The project would be implemented by Societe de Developpement duLac (SODELAC), a small corporation owned by Government and responsible forthe overall development of the Lake Chad region, through a Project Unitestablished for that purpose. SODELAC is engaged in agricultural develop-ment and a number of other activities, which have resulted in a dispersionof SODELAC's management effort and increased its losses. SODELAC needs to bereorganized and particularly, to limit its activities to those of providingagricultural extension services which it is committed to provide on behalfof Government to farmers, and those marketing activities which are authorizedby its general charter and which are profitable. A consultant would beappointed to assist SODELAC in its reorganization. Pending such reorganiza-tion, the Project Unit would remain financially independent of SODELAC'sother activities.

viii. The Project Unit Manager and key project staff would be recruitedinternationally. As it is essential that internationally recruited staffform a compatible team under the harsh living conditions prevailing in thepclder area, and can be sufficiently technically backstopped, internationally

1/ Polders are land reclaimed frcm the sea or any other body of water byconstructing dikes and drying out the land so empoldered. Thereafter,the water runoff is control7ed by sluicing or pumping.

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recruited staff would be provided by a recognized international companywith expertise to carry out irrigation projects including constructionof works. Government chose SCET-INTERNATIONAL of France to provide suchstaff. SCET is acceptable to the Association.

viii. Project costs are estimated at US$13 million, net of duties andtaxes. The foreign exchange component is estimated at US$10.4 million or80 percent of total costs. Principal components are: irrigation worksconstruction and supervision, US$5.5 million; farm development, US$0.9 mil-lion; agricultural research, US$0.9 million; Project Unit overhead, US$1.2 mil-lion; other, US$0.1 million; and contingencies, US$4.4 million. The proposedIDA credit of US$5 million would finance 38 percent of total project costsand would cover some 48 percent of the foreign cost. The remainder of projectcosts would be met by the African Development Fund (AFDF), US$5 million or38 percent of total project costs; USAID, US$1 million, 8 percent: and Fondsd'Aide et de Cooperation (FAC), US$2 million, 16 percent. IDA financing wouldbe passed on by Government to SODELAC as a loan to be repaid over 50 yearsstarting in 1979 and bearing an interest rate of 0.25%.

ix. Construction of the water intakes and the pumping stations would befinanced by the African Development Fund (AFDF) in parallel to the IDAcredit. AFDF would also finance the supply of secondary irrigation pipes,the equipment to construct the irrigation works, and the construction of staffhouses and service centers. It is expected that construction of the waterintakes and pumping stations would be let under local competitive bidding,and supply of pipes, to international competitive bidding among AFDF membercountries. AFDF's share of the financing of the irrigation works, includingthe supply of irrigation pipes, would amount to US$3.0 million (60% of totalcivil works) prior to contingencies. The rest of the irrigation works(US$2.0 million) would be small and would include different items, such asconstruction of primary canals, laying secondary pipes and land levelling.It would be financed by IDA and FAC on a pari-passu basis (71-29%). Becauseof their smallness and their nature, it is proposed that the latter irrigationworks be built by force account. Equipment and supplies would be procuredby international competitive bidding.

x. For those project items financed by IDA and FAC, the followingwould apply: orders or contracts for equipment, cement, vehicles or chem-icals with a value of more than US$25,000 would be through internationalcompetitive bidding (ICB) in accordance with IDA guidelines. Such procure-ment is estimated to have a value of CFAF 400 millionl/ or US$1.8 million.Some CFAF 200 million 1/ or US$1.1 million would be for operating expensesunsuitable for competitive bidding. The expatriates posted to the projectwould be provided under contract by a firm recruited internationally accord-ing to IDA guidelines; their salaries would amount to CFAF 400 million orUS$1.7 million. The remaining CFAF 500 million or US$2.4 million would befor contingencies.

1/ Prior to Physical and Price contingencies.

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xi. The costs of the project are high--with civil works, without contin-gencies, costing US$4.800 per ha in 1975 terms. This very high cost reflectsconditions specific to Chad: high external and internal transportation costs,lack of a technically developed Chadian domestic contracting industry, anda generally low level of experience in irrigation works. The situation willnot change in the short run, but it should improve as experience is built upthrough the implementation of irrigation projects. Other major items inproject costs are high but generally reflect the disecononiies of a smallscale operation.

xii. The project feasibility study verified the population within a60 km radius of the project area at about 62,000 people, of which there wouldbe 7,000 farm families. About 700 farm families already live in the projectarea. Tle development of the two rroject polders would require a total of1,150 farm families, assuming they are given oII the average a 1 ha plot tocultivate. Some 450 farm families would therefore settle from outside theproject area. As this accounts for only 7% of the farming population withina 60 km radius, it should not be difficult to recruit settlement farmers.

xiii. Selection of farmers and their land tenure arrangements with SODELACwould be made jointly by the Project and the Comite Prefectoral du Developpe-ment Rural, the latter comprising representatives of the prefecture, various-ministries and politicians. Land allocation would be limited to what a faamilycan handle effectively bv itself, without mechanical or temporary help. Itis estimated that the average family of 2.8 adults could not handle more than1 ha of irrigated land. An average family could be allocated less than 1 habut not more than 1 ha. A decree would be issued to confirm that SODELAC isauthorized under law to organize the settlement of farmers in newly developedpolder lands.

xiv. The excellent soil fertility of the polders would result in satis-factory yield levels of 2,500 kg/ha of seed cotton and wheat respectively.The price of both project produced commodities is expected to remain attrac-tive. The price of the Mexican SM 1-1/16", which is the standard for Bank'sprojections of cotton prices, reached US cents 62/lb CIF Europe in 1973 anddecreased in 1974 to US cents 54/-b. The Bank's Economic Commodities andE:xports Projections Division (ECEPD) forecasts that competitive pressuresfrom man-made fibers will keep it at about the latter level in 1974 termsfor the foreseeable future. It is expected that the longer staple grownunder the project (1-3/32") should continue to fetch a US cents 1.5/lb lengthpremium over the standard. lheat prices doubled in 1973 to US$147/ton andreached 115209/ton in 1974. ECEPD expects wheat to trade between US$190/tonand US$175/ton in 1975 and to decrease to US$125/ton in constant 1974 termsby 1980-1981.

xv. SODELAC is responsible for organizing wheat purchases from farmers.To encourage the sale of wheat through SODELAC Government increased theofficial producer price for wheat from CFAF 20/kg to CFAF 32/kg in 1974, aprice competitive to local traders. At the same time SODELAC was guaranteed

v

a CFAF 18/kg margin to market and transport wheat to the flour mill. Theonly flour mill in Chad, 12 000 ton capacity, belongs to Grands Moulins duTchad (GMT) which has the monopoly for flour processing and importing in thecountry. The miil has been fairly inactive lately as there was practicallyno wheat produced in the country. Even at full project development, locallyproduced wheat may not exceed 3,000 tons per year. Processing costs will-remain high until the mill reaches full operating capacity. SODELAC wouldenter into a long-term contract with G!tfT by which GMT would purchase SODELACwheat at its effective economic value less a factor to take into account GMThigh milling costs. Government was requested during negotiations to keep thediscount as low as possible, preferably below the 20% implied in the farmerproducer prices of CFAF 50/kg.

xvi. At present, cotton growers in the south are paid CFAF 45/kg forfirst quality seed cotton. This price provides them with adequate incentive.Project farmers would be paid CFAF 53/kg, to reflect the fact that collectioncosts would be lower (CFAF 5/kg), and that the quality of the project cottonwould be better (CFAF 3/kg) than in the south. Cotontchad, the government-owned corporation with the monopoly for seed cotton purchasing and lintprocessing in the country, would enter into a long-term agreement with SODELACby which Cotontchad would purchase project produced cotton at a price whichwould reflect the better quality of cotton grown at Bol and the lower market-ing costs which would be incurred.

xvii. Project area farmers have at present an estimated per capita GNPof US$35, about half the national average. No change in their income wouldtake place without the project. With the project their per capita GNP wouldincrease to about US$300 annually, US$1,256 per family. The family would beable to meet the cost of services provided to it by SODELAC, the costsincurred in collecting and delivering the family produce, and make a sizeablepayment to partly amortize Government investment in the project. A familyfarming one ha of irrigated land would be in receipt of a gross income ofCFAF 282,500 (US$1,256) annually. After meeting direct production costs andfood requirements, the family farming one ha of irrigated land would be inreceipt of CFAF 245,500, annually. Clearly the family would be able to meetthe cost of services provided by SODELAC, CFAF 74,000/ha. Following paymentof these charges, the family would remain in receipt of CFAF 171,500. Tlereis neither a governmental policy for the recovery of irrigation projectinvestnent costs from participants nor an understanding on the level ofincentives that families require to induce them to remain and efficientlyfarm irrigated holdings. It would appear that a net family income of CFAF115,500 (US$513), which would imply a return of CFAF 297 per man-day workedby the family, would be an adequate incentive. This would permit the farmfamily to make a payment of CFAF 56,000/ha annually to partly amortizeproject investment costs. Farmers would initially and temporarily be chargeda consolidated fee of CFAF 130,000/ha which would include charges foroperating expenses and capital amortization. This fee is about 7 times thefee collected on the only ongoing large scale irrigation scheme, at Bangor,

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in southern Chad. The fee would be reviewed from time to time. The feewould be collected by SODELAC bi-annually after the sale of each crop.

xviii. Farmers' payments would enable SODELAC to cover all its operatingcharges and to repay government investment in the project over a 50-yearperiod at a nominal interest rate of 0.25%. Expressed differently, assumingthe country's cost of capital to be 10%, Government recovery through theconsolidated fee alone, from its initial investment and recurrent expendituresin the project would be 40% over a 50-vear period. Government recovery wouldincrease to 68%, if project induced cotton taxes and profits generated byCotontchad are added to the consolidated fee. All three measures indicate acertain degree of government subs:Ldy, which is justified, given that theproject is economically viable and that farmers' response must be tested priorto increasing the consolidated fee.

xix. The project's direct bernefits would be the 3,000 tons of wheat andthe 3,000 tons of seed cotton procuction that it would generate annually andwhich would result in higher incomes for a minimum of 1,200 farm families, ifeach family is allotted one ha of polder cultivation. A minimum of 5,000people would benefit directly from the project. It would increase to 14,000people, if families are allotted 0.5 ha each, and if the average family sizeincreases from 4 to 6 persons through higher birth rates and lower infantmortality rates, and if some members of the extended family are, as expected,attracted to the project area. The economic rate of return from investmentin the project is estimated at 17%. Important assumptions used in the calcu-lations are:

(a) economic farm gate prices in 1973 constant CFAF terms asprojected by the Bank's Economic Analysis and ProjectionsDivision;

(b) shadow CFAF rate of 270 per US$ instead of the current exchangerate of CFAF 225 per USS to take account of existing importand export taxes and the additional factors that weaken Chad'sbalance of payments and result in durable low levels of reserves;

(c) inclusion as an economic cost of the foregone incomes oftraditional irrigation and

(d) exclusion of the costs of the agricultural research com-ponent.

A sensitivity analysis in,licates that the project's rate of returnis very sensitive to variations in benefits or costs. Without shadow pricingof the foreign exchange the rate o` return would be 16%. Costing the addi-tional farmer labor required for po:Lder cultivation at the daily rate of CFAF170/day, which is the minimum wage in the agricultural sector, would bring therate of return to 13%, which is still acceptable.

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xx. The project would have a number of secondary benefits which havenot been included in the economic rate of return calculations: it wouldprevent the progressive salinization, a normal process exacerbated by trad-itional irrigation, and eventual abandonment of Guini and Berim polders; itwould create a pole of develonment in the so far underprivileged northernpart of Chad; it would help stabilize the farm community by reducing theineome disparity between northern and southern regions; it would strengthenthe balance of payments by providing a permanent source of foreign exchange;it would provide a reliable source of agricultural production, which wouldreduce the devastating impact of the drought. and it would provide the basisfor the development of a modern tecmnology in irrigated agriculture. Further-more, IDA's exposure in the project is not large (38% of total financingrequired), but is essential for the mobilization of aid from the three otherdonors (AFDF, FAC, and USAID). Wlithout IDA particiDation, these agencieswould reconsider their participation in the project. As the proposed projectis one of the very few, if not the only project of any magnitude in theagricultural sector ready for financing and execution, funds released bywithdrawal of these other donors could not imniediately be reallocated toother projects.

xxi. On the basis of the assurances set out in chapter IX the projectis suitable for an IDA credit of US$5 million.

CHAD

LAKE CHAD POLDERS PROJECT

I. INTRODUCTION

1.01 The Government of Chad has asked IDA to help finance the initialphase of a program of irrigated agricultural development using the watersof Lake Chad. This first phase would consist of developing some 1,200 haof polders for irrigated farming. About 50,000 ha could be empoldered inthe northeastern part of Lake Chad.

1.02 The project would comprise development of two polders alreadyreclaimed from the lake, and the provision of technical, marketing andcredit services, and inputs to about 1,200 farm families who would be allottedplots in the polders. The project appraised in this report is smaller thanthat for which Government requested financing, which included developmentof a third polder of some 1,630 ha which is still under water. The decisionto restrict the project to 1,200 ha was made because detailed engineeringdesign work had been done only for 1,200 ha. A larger project at this timewould increase the risk of heavy cost overruns, a risk inherent in the con-struction of major civil works in a region of difficult access. Reclamationof the third polder and detailed engineering design of the works to be builtin that polder are expected to be financed by another foreign aid donor(Government has contacted the Kuwait Fund) but would come under the responsi'-bility of a single project management.

1.03 Previous IDA lending in the agricultural sector has been: aUS$2.2 million credit for livestock (309-CD, 1972) that until very recentlywas handicapped by problems of inadequate counterpart funds and administra-tive bottlenecks which have now been resolved; a US$2.0 million credit fordrought relief measures (445-CD, 1973) which is progressing satisfactorily;and a US$7.5 million credit for a rice irrigation project in the Sategui-Deressia Plain (489-CD, 1974) which has been plagued by substantial costoverruns; construction of a reformulated project is expected to start laterthis year.

1.04 This report is based on a feasibility study financed by Fondsd'Aide et de Cooperation (FAC), who employed SCET of France for preparingthe study, and on the findings of an appraisal mission, composed ofMessrs. Ropiteau, Grimshaw, Kaunan, Fireman (IDA) and Maistre (consultant),which visited Chad in November 1974.

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II. BACKGROUNI)

A. General

2.01 Chad is very large, 1,284,000 km2 anj sparsely populated, 3.7 mil-lion. Population pressure decreases from 8/km in the south to zero in thedesertic north. About half the pcpulation are seminomadic herders living inthe dry grasslands, north of latitude 12°, which corresponds roughly to isohyet750 mm; the 0 other half are farmers cultivating cereals and cotton south oflatitude 12 along the Logone and Chari rivers where rainfall is more favor-able and averages between 750 mm and 1,200 mm per year. Population is esti-mated to be growing at about 1.7% annually.

2.02 GDP per capita is about US$75 and decreased in real terms by about6% in each of 1971, 1972 and 1973 as a result of the drought that plaguedthe Sahel until the 1974 wet season. Chad's economy is dominated by therural sector, which has a very limited potential, except where irrigationcan be employed. Under rainfed conditions, cotton and livestoclc have thegreatest potential as export commodities although any development is hamperedby an underdeveloped social infrastructure and by the fact that Chad is some1,700 km from the nearest ocean port. Currentlv, Government faces a verydifficult budgetary situation stemming partly from the loss of tax revenuesc-aused by the slowdown in the economy, and partly from military expendituresincurred in fighting a rebellion in the desertic northern sector of thecountry. In 1974 deficit financing was expected to amount to CFAF 5 billion(US$20 million) or the equivalent of 40% of total Government expenditures.

B. The Rural Sector

2.03 The rural sector direct1v supports some 90% of the population. Itcontributes about 55% to GDP as foi lows: food crops (25%), livestock (16%)and cotton (14%). The country, while normally self-sufficient in food, wasobliged to import cereals in 1972 and 1973 to avert famine (Annex 1, Table 1).The international community provided Chad with 13,500 tons of relief food,mainly cereals, in 1972/73 and about 35,000 tons in 1973/74. Normal rainfallresumed in 1974 and was sufficient to reattain self-sufficiency in cereals.

2.04 Chad is the leading cotton producing and exporting country in WestAfrica (exporting CFAF 5.4 billion or US$24 million worth of lint cottonper year). Cotton alone is the subject of any large scale productivityimprovement activity. This started in 1965 under joint financing by FondsEuropeen de Developpement (FED) and Fonds d'Aide et de Cooperation (FAC) ofFrance. The cotton improvement program consists of distributing fertilizersand other inputs at subsidized prices by Office National pour le DeveloppementRural (ONDR). Although it is generally assumed that yields of farmers parti-cipating in the program, i.e., about 20% of all cotton farmers in the south,

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are substantially higher than those of farmers not using improved methods,this has never been substantiated by a full-fledged analysis of farmers'results. Government is now organizing a detailed evaluation of programresults to determine the economic viability of the program. This evaluationis especially important as FED financing of the program is expected to come toits end shortly, and Government will have to decide whether or not and in whatdegree to continue with the program. Livestock production suffered badlyfrom the loss of animals due to drought, and currently, livestock productionis estimated to be 40% below 1969 levels. The importance of agriculture inthe economy is shown by the fact that, in spite of the drought, rural sectorexports accounted for more than 80% of total exports in 1973, and cotton alonefor 63% of total exports (Annex 1, Table 2).

2.05 Given Chad's very limited agricultural resource base, Government'sstrategy options for developing the rural sector are very restricted. Asfar as rainfed farming is concerned, there is a very real limit to the levelof increases that development projects, such as the cotton program discussedin para 2.04 can generate. Currently, income levels in rainfed areas of Chadare about US$35-50 per capita. With present technology, these can be increasedby maybe 50%, but the beneficiaries from such projects will continue to remainvery poor, and the food base of the country continue to be dependent upon arainfall that even in normal years is very variable and that from time to time,for example in the recent Sahelian drought years, fails to a degree wherenational catastrophe results. Despite the limited potential of the rainfedagriculture, there obviously is a need for and merit in programs to improveproductivity and farm incomes as much as is economically justified, andwherever possible to contain in programs with these objectives additionalcomponents that are aimed at correcting some of the deficiencies in thequality of life in rural areas. Such components typically would be the im-provement of village water supplies, functional literacy programs, and adviceand assistance in hygiene and nutrition. The Bank currently is assistingGovernment to prepare a rural development project which would encompassactivities designed to improve both productivity and the social infrastruc-ture. The costs per family assisted with such projects are not high and theyrepresent the only way in which limited funds can be applied to help anysignificant proportion of the population. It is Government's intention tocontinue to promote these types of action.

2.06 While rainfed projects will continue to be allotted the highestpriority, Government believes that in time it will be necessary to developthe irrigation potential of Lake Chad and the rivers of the Lake Chad basin.The rationale for this is that given Chad's arid climate and the susceptib-ility of most of the country to drought of one degree of intensity or another,irrigation alone can solve the critical problems faced by the economy as awhole and the rural sector in particular. Some of the benefits that wouldaccrue from the development of an irrigated sector are listed below. Thelist is not exclusive, but it is sufficient to indicate why Government believesit justified to make a start in developing such a sector albeit on a smallscale. Benefits of developing irrigation in Chad would include, inter alia:

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(a) greater diversity of crop production: Chad is now dependenton the importation of farm-originating produce that it couldproduce domestically with irrigation. Important are suchbasics as wheat, sugar, and a wide range of vegetables andfruit. Chad is so located that imports of these and similarcommodities are expensive, and supply, subject to disruptionsbeyond the country's coatrol;

(b) better utilization of the country's livestock resources: Chad'sSahelian pastures are good breeding areas, but finishing stockfor sale now requires long distance migration in the dry season,often south into Cameroon and Nigeria. An irrigated sectorwould generate substantial amounts of crop by-products andresidues in the dry season that could help to stabilize thelivestock sub-sector andl improve its contribution to theeconomy. Irrigation alone could permit the ultimate develop-ment of a dairy industry;

(c) evolution of a high technology agriculture: The rainfed systemhas clear limitations in areas such as yield potential, and theefficiency of fertilizer and input use. Water, in this caserainfall, is the limiting factor. Irrigation would allow theutilization of modern technology to a much greater degree thannow possible and permit Chadian personnel to learn, employand further develop modern agricultural techniques. Such anirrigated agriculture would also assure its participants betterand more secure income prospects than rainfed farming;

(d) insurance against the disruptive effects of drought: Theimpact of drought is not only to lessen the supply of foodstaples such as grains; among other effects, livestock areirretrievably lost through death, and agriculturally basedindustries are disrupted because of the lack of raw materials.These effects may be felt for many years--until livestock herdsare replenished and farmers have replenished their own foodresources through de-emphasizing cash crops. Cereal reservescan be stored as an insurance against drought-induced famine,but irrigation alone can cushion the other and more insiduousconsequences of drought.

In short, development of an irrigated sector in Chad would bringa wide range of benefits ranging from providing the means to improve nutri-tion--fruit, vegetables and dairy products--through creating the circumstancesirn which Chadian scientists and technicians would find rewarding opportu-nities in agriculture, to cushionirLg the economy as a whole against theoccurrence of drought, which inevitably will occur from time to time. Irri-gation, however, is not a panacea since, while Chad possesses substantialphysical potential for irrigation, probably in excess of 200,000 ha, thecosts of developing this potential appear high. This is illustrated by thecosts of the project appraised in this report, see para 5.06. Clearly, a

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country as poor as Chad cannot expend sums as high as US$5,000/ha for civilworks over large areas and in a short period of time. First, finance isvery limited and second, it would be inequitàble to expend large sums ofmoney to the benefit of relatively few farm families. Nonetheless, thepressure to begin to develop the country's irrigation potential is increasingand received a significant stimulus in the recent past from the catastrophicSahelian drought which demonstrated the fragility of the country's whollyrainfed rural economy.

2.07 Government believes that there is a case for makîng a start inirrigation, even if this is at the expense of some development in the rain-fed sector; this i not because irrigation projects, such as the Chad PoldersProject, can be replicated so easily as to have a rapîd, major and favorableimpact on the economy, but because only in this way can Chad begin to obtainthe expertise in irrigation technology, the trained Chadian personnel, andthe evolution of the institutions needed to exploit its irrigation potentialeffectively and in the long run to improve the economic base of the country.The project appraised in this report would be a pilot operation, economicallyviable in its own right, and designed to achieve the foregoing objectives.

2.08 A number of Ministries deal with the rural sector. Ministere del'Agriculture, de l'Elevage et des Eaux et Forets (MA) is generally responsiblefor rainfed agriculture and livestock, and employs as its executive armOffice National pour le Developpement Rural (ONDR), which provides extensionservices and i responsible for the farm input delivery system. Ministerede l'Amenagement du Territoire et de L'Environnement (MATE) has respon-sibility for developing some irrigation projects, which are relatively small,and is also responsible for storing and marketing grain through its Fondsd'Action du Developpement Rural (FDAR). Societe de Developpement du Lac(SODELAC) is an agency of MATE and responsible for the general developmentof the Lake Chad region. In general, all governmental services, includingthe above, are hampered by budget constraints and a lack of experiencedmanagement.

III. THE PROJECT AREA

3.01 Location. The two project polders: Guini, 370 ha 1/ and Berim,800 ha, are located within five kilometers of the center of Bol (see map).The third polder, Mamdi, of 1,630 ha, is located close by and could bemanaged conveniently by the project management that would be established forthe Guini and Berim polders (para 1.02).

3.02 Access. Bol is 305 km by road from N'Djamena. The road runsaround the southeastern tip of the lake and îs passable only by four-wheeldrive vehicles. The shortest route from Bol to N'Djamena is by barge downthe Chari river and across the lake. This is possible, however, only a few

1/ Net area cultivable.

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months each year at the time the Chari floods and when the lake's water levelis sufficiently high to permit barges to clear the sand barrier which sepa-rates Bol from the rest of the lake. This barrier is at 279.5 m a.s.l.Accesa across the lake is usually possible from November to March, althoughthe Chari itself is navigable for a longer period from October to May.

3.03 Climate. The climate is arid and characterized by high daytimetemperatures, which reach an average of 38.50C in April and sharp intra-dayvariations especially during the long dry season of October through June.Average annual rainfall in the project area is about 285 mm, with about 70%falling in the months of July and August; this is inadequate to sustainarable crop production except for the production of a very low yielding cropof millet. Evapotranspiration is high, about 2,150 mm per year.

3.04 Existing Works. Guini and Berim polders were sealed off from thelake in 1951 and in 1954 respectively by the creation of dikes which arestill in good condition. Guini polder was partly developed between 1969 and1972. Existing works include the 0.75 m3 /s water intake, 1.6 km of primary:irrigation canals (28% of the total), a 0.9 km siphon, a secondary distribu-tion system for 70 ha, 4 km of the main drainage collectors (67% of the total),the 1.2 m3/s drainage pumping station and 4 km of service roads in the polder.The works were not completed for lack of financing and some, in particularthe primary and secondary canals and the siphon were broken when the poldersoils dried out, cracked and settled during the extreme drought years of 1972and 1973. No irrigation works were built on Berim polder.

3.05 Soils. The soils of Guini and Berim polders have been the subjectof many investigations, in particular by Office de la Recherche Scientifiqueet Technique d'Outre-Mer (ORSTOM). The soils are alluvial in origin, veryfertile and high in nutrient content (Annex 2). Salinity surveys of Guiniand Berin in 1966 showed that only a small portion of each had any damagingconcentration of salt in the surface half meter, and that the severity ofthe salinity problem had increased only very slowly since the mid-1960s,thus indicating almost certainly that some salt is being eliminated, probablyby seepage. The irrigation system adopted by the project of gravity irriga-tion from the lake and of drainage of the irrigation water would eliminateany risk of salt depositing and would reduce present salt concentrationthrough leaching.

3.06 Present Cultivation. Traditional shadoof 1/ irrigation on Guini andBerim polders was practiced until the underground water table in the poldersfell below 0.8 m from the surface, at which point farmers moved to otherpolders. A total of 132 ha were cultivated on both polders in 1972, halfat Matafo Research Station and hal.f by individual farmers. Since 1972 thearea under cultivation has been reduced. Crops produced were essentiallycotton and wheat. Present farmers cultivate an average 1.3 ha of rainfed

!/ The shadoof or counterpoise consists Jf a rope and basket on one end ofa beam with a heavy counterweight on the other end to offset the weightof the water as ut is withdrawn from the well.

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millet on the dunes and 0.2 ha each in the polders through traditionalshadoof irrigation techniques. They own an average of 3.5 animal units.

3.07 Population. The present population of Bol and neighboring villageswas verified by the project feasibility study at about 7,300 people, 40% ofwhom are involved in agriculture. As a farm family averages 4 people, thereare about 700 farm families within a 5 km radius of Bol (Annex 3).

3.08 Land Tenure. The legal owner of all three polders is the Republicof Chad under provisions of a decree of August 1, 1967. Farmers cultivatingin the polders have no formal rights of usufruct and occupancy but would begiven priority once developed polder land is allocated (para 6.08).

3.09 Agricultural Research. Since 1970 SODELAC has carried out a seriesof experiments and trials to determine the best cultural techniques and thepotential yields of various varieties of wheat and cotton at the Matafo Agri-cultural Research Station. The station is located in the Guini polder. Thetrials have demonstrated that the polders have a very high productive poten-tial.

3.10 SODELAC. Societe de Developpement du Lac (SODELAC) is the smallcorporation, yearly budget about US$100,000 equivalent, responsible for thedevelopment of the Lake Chad region. Ninety-five percent of the shares belongto Government and the remaining 5% to government agencies. It was created withresponsibility for the overall development of the Lake Chad region, includingthe provision of extension, credit and marketing services to farmers (Annex 4).SODELAC headquarters are in N'Djamena, and it has branches at Bol and N'gouri.SODELAC enjoys a high degree of autonomy, but due to the low economic activityof the Lake Chad region and inadequate financing by Government, SODELAC hasachieved very little and is in a difficult financial position. Governmentintends to resolve SODELAC's financial situation before proceeding with theproposed project.

IV. THE PROJECT

A. Summary Description

4.01 The project would be carried out over a four-year investment period1976-79 by a Project Unit established for this purpose within SODELAC, seeChapter VI. The project would comprise:

(a) rehabilitating and completing the irrigation and drainagenetworks of Guini polder (370 ha net area);

(b) constructing the irrigation and drainage networks forBerim polder (800 ha net area);

(c) establishing a Commercial Agricultural Development Sectionunder the project which would ease the way for farmersettlement, and be responsible for the first year of opera-tions on all newly developed land, and for the basiccultivations during the following year;

(d) providing a package of services to the farmers who wouldtake up cultivation of the polders after the initial firstyear of operations by the Commercial Agricultural Develop-ment Section, such services to include resettlementassistance, training extension, credit and marketing;

(e) constructing necessary service centers and houses forproject staff;

(f) expanding adaptive agricultural research at the MatafoResearch Station; and

(g) providing consultant assistance to reorganize Societede Developpement du Lac (SODELAC).

B. Detailed Features

Irrigation and Drainage

4.02 Rehabilitation and Completion of Works on Guini Polder. The worksrehabilitated under the project would include the 1.6 km of broken primaryirrigation canals and the broken 0.9 km siphon (para 3.04). The secondarydistribution system serving the Matafo Research Station (70 ha) would beabandoned, as it is no longer usable. To complete the Guini polder's irriga-tion system, the following structures would be built and equipped: a smallpumping station at the intake, 3.3 km of primary canals, a complete secondarynetwork (15.2 km of pipes), 2 km of main drainage collector, 15.2 km ofservice roads, and a 6.5 km access road to Bol (Annex 5).

4.03 Development of Berim Polder. Works to be executed include: twowater intakes each to irrigate halE the polder (400 ha) with a capacity of1 m3/s. To provide gravity irrigation over most of the polder area, thewater level at each intake would be 1.1 m above the polder bottom. Theintakes would be equipped with a downstream control gate to maintain aconstant head pressure in the primaries for uninterrupted irrigation. Theprimary canals (10.8 km), along one side of the polder with a slight eleva-tion above the polder bottom, would be open, rectangular in shape and linedwLth reinforced concrete. The secondary pipes (30 km) plugged onto thepirimaries via junction wells, would be plastic pipes (polyvinyl chloride)wliich would be able to withstand siiifts in the soil level caused by alternatewetting and drying. The drainage system for Berim would include 12.5 km ofmain drainage collectors, some 2 m deep, leading to a drainage pumping station

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of 1 m3/capacity at the mid-section of the polder. Service roads totallingabout 50 km and 3-6 m wide would be built in the polder along drainage col-lectors and the secondary distribution system; the polder would be connectedto Bol by a 1.5 km access road, 6 m wide and on a 0.3 m embankment.

4.04 Irrigation System Design and Capacity. Berim irrigation networkwould be designed for 2.5 1/s/ha assuming a daily irrigation of 12 hours(Annex 6). This would be adequate to meet peak crop requirements. Theproject is divided into three irrigation units, each covering about 400 ha(Guini comprises one and Berim two). Each unit would have its own waterintake and an independent irrigation network. Based on field side capa-cities of 30 l/s or about 100 m3/hour, which correspond to the maximum dis-charge a farmer can handle efficiently, the continuous discharge of 2.51/s/ha could irrigate 12 ha. The irrigation units are divided into subunitsof 12 ha each, comprising 12 individual plots belonging to 12 farmers. Therotation of water for irrigation application would be organized between the12 farmers of the subunit. There would be two field outlets of 30 l/scapacity for each subunit.

4.05 Drainage System Design and Capacity. Drainage is required toprevent salt from accumulating on the soil surface through evaporation andevapotranspiration. For Berim polder the drainage network has a designcapacity of 1.25 1/s/ha adequate to handle water seeping through the dunesat high lake levels (one-in-100 year frequency) and to dispose of systemwater losses (estimated at 40% overall). There would be a central collectormain in the middle of the polder leading to the pumping station. Space forlateral collector drains would be set aside in case they should prove neces-sary. In Guini polder the partial drainage system in existence was designedfor 3.2 l/s/ha and consequently is overdesigned. The power supply for thepumps would be provided by diesel sets.

Agricultural Development

4.06 Establishment of a Commercial Agricultural Development Section.The project polders would be settled by individual farmers, each cultivating1 ha (paras 6.07-6.08). This policy was adopted as the best means of provid-ing maximum benefits to the farm community at lowest cost. To ease the wayfor settlement, it is proposed to form a Commercial Agricultural DevelopmentSection, which would be responsible for the first year of operations on allnewly developed land and for the basic cultivation during the following year,the first year of settlement. In the latter year the Commercial Sectionwould clear, disc and plant a cotton and a wheat crop, thus giving the farmera better chance to settle down and to learn the new techniques that will bedemanded of him. The Commercial Section would be equipped to handle up to400 ha of new land and 400 ha of second year cultivation.

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4.07 The ultimate objective would be reasonable self-reliance for eachfarmer and his neighbors. Plots of 'L ha would allow farming to be carriedout by family labor. After his fiirst year of operation, the farmer wouldreceive no mechanical cultivatior assistance. His farm year would be dividedinto a 5-6 month wheat season anà a 6-7 month cotton season. He would uselimited amounts of fertilizer on wheat and none on cotton. He would protecthis cotton with ULV spraying. He would irrigate his land by furrow irriga-tion techniques and would harvest both cotton and wheat by hand. The projectwould assist the farmer by providing credit for the purchase of equipment,seeds, and other seasonal inputs. More importantly, the project would providethe farmer with effective extension advice. Once settled, the farmer wouldcome under the control of the extension staff, who would assess his assetsand advise him of additional needs and equipment. In the first year, hewould be expected to attend short orientation courses in the new techniquesand crops. Thereafter, farmer training would be mainly in the field.

4.08 Three Service Centers would be built under the project. Each center,would have a 500 mJ warehouse for storage of fertilizers, insecticides andfarm equipment. Within the store would be incorporated a small office forService Center staff. The Service Centers would be used as collection centersafter harvest of the crops. Seven senior staff houses and nine junior stafflouses would be built at a site to be selected either at Bol or close to theMatafo Research Station.

4.tj5 The Matafo Research Station Program which now covers agronomicastec. sof polder developments would be expanded to evaluate the progressof the project including both social and economic aspects. The Station wouldcontinue its efforts to determine optimum cultural methods for the main cropsgrown on the polders. Particular attention would be paid to improved methodsof cultivation, weed and insect control, and water application. The ResearchStation would continue to screen *romising cotton and wheat varieties andwould intensify its research into maize. Fertilizer and trace element studieswould be made to determine the defEiciencies, if any, of zinc, manganese, andsulphur Continuous trials would be made to determine the long-term fertilityof Pr r soils, including the rotations that would maintain current fertility.Resr r-,ih into alternative irrigat:Lon methods in an attempt to reduce develop-ment costs would be conducted, including experiments with low lift pumpingfrom traditional wells. The Stat:ion would evaluate ongoing project results-ind i.itiate a program to look into the sociological problems involved inrecruitment and settlement of farrners. The project provides for 108 man-months of research staff.

Assistance for SODELAC Reorganizat:ion

4.10 The project includes 10 man-months of expert services to assistSODELAC in its reorganization.

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C. Water Demand, Supply, Quality

4.11 Water Demand. At full development (by year 1979) irrigation waterrequirements for Guini and Berim polders, 1,170 ha of net area, would be17 million m3 at the source (Annex 6). This assumes double cropping of wheatand cotton, and an overall efficiency of 60%. The crop requirements arebased on experience at the Matafo Research Station on Guini polder. Thetotal water takeoff would be an infinitesimal portion (0.0003%) of the averageannual supply to Lake Chad.

4.12 Water Supply. Given the principle of gravity irrigation from thelake and constant downstream level gates adopted for the project, the waterintakes would be built so that the water level at the intake would be 1.1 mabove the polder bottom (or at 278.5 m + 1.1 m 279.6 a.s.l.). This wouldassure supplies according to the following probabilities which are based ona study covering 105 years of lake water levels:

96 years in 100: irrigation by gravity

3 years in 100: pumping required for six months ofirrigation

1 year in 100: no irrigation possible during fourmonths of the year (June-September).

These probabilities apply to the water intakes to be built at Berim. Forthe existing water intake at Guini polder which was built about one metertoo high, it is estimated that pumping for irrigation would be required 10years in 100; economic calculations show that this would be more advantageousthan constructing a new water intake. A small and permanent pumping stationwould be built at the water intake for Guini polder. On Berim polder, thepumps used to pump out drainage water would be moved to the water intakeswhen necessary.

4.13 Water Quality. The lake water at Bol is classified Cl Si in theclassification scheme of the US Salinity Laboratory. This is the bestcategory in all respects for irrigation. The electric conductivity (EC) ofthe lake water at Bol ranges from 110 to 140 micromhos indicating a lowsalinity content of about 70 mg/l (ppm). The water from the superficialground water table below the polders at depths of less than 1 m is not suit-able for irrigation because of its salinity (5,600 ppm) and alkali charac-teristics. The risk of salt accumulating through capillarity would bereduced by lowering the ground water table to below root level, or 1.2 mfrom the land surface, and by leaching through the irrigation process.

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D. Status of Engineering and Consultants

4.14 Detailed engineering studies at a scale 1/5,000 for the irrigationand drainage networks and at a smaller scale for the intakes and pumpingstation have been completed. Bidding documents have been prepared. SŒET,the consultants who did the feasibility and detailed engineering studies,have been retained by FAC for bid preparation and to do a soil survey, andhave recently been retained to prcivide the project internationally recruitedstaff (para 6.03).

4.15 Despite the many investigations of Guini and Berim soils, therehad not been any systematic soil survey, based on physical and chemicalcharacteristics that are important for long-term crop cultivation. Such asurvey has just been completed. It comprises 300 samples (one per 4 ha) with30 analyzed in detail for texture and chemical characteristics. The soilsurvey did confirm the general suitability of soils for cultivation.

E. Irrigation Works Construction

4.16 Construction of the water intakes and the pumping stations (US$0.9million) and the supply of secondary irrigation pipes (US$2.1 million) wouldbe financed by the African Development Fund (AFDF) which would apply itsown procurement procedures. It is expected that construction of the waterintakes and pumping stations would be let to local competitive bidding, andsupply of pipes to international competitive bidding among AFDF membercountries. The remaining irrigation works would be small (US$2 million)and would include different items such as construction of primary canals,laying down secondary pipes and land-levelling. Because of their smallnessand their nature, it is proposed that the remaining works, which would befinanced by IDA, would be constructed by force account. Such works wouldnot require highly developed technical skills, as they would involve rela-tively straightforward tasks. The force account approach would have theadvantage of (a) integrating the agricultural development with constructionof the irrigation systems; and (b) enabling SODELAC to acquire capability inthe basic irrigation construction techniques which would be an asset forfuture expansion of polder development.

4.&7 The construction schedule (Annex 5, Table 2) takes into accountthat the transport of supplies and equipment to Bol is only possible bybarge between December and March, when the lake level is high (para. 3.02),and that it takes at least four months for imported supplies to reach Chad.Assuming that construction starts by April 1, 1976, Guini would be entirelycompleted by mid-1977, and Berim by mid-1978.

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F. Project Impact on Ecology

4.18 The extent to which schistosomiasis and other diseases affectpeople living in the project area is not known. Government should undertakea limited epidemiological study of the project area to obtain base lineinformation on schistosomiasis and other diseases. The results of the studywould be reviewed by Government and IDA to determine the possibility ofextension of the diseases and what steps could reasonably be taken to controlthem. USAID has shown an interest in financing such a study as part of anational health program for Chad. Assurances that this study will be under-taken were obtained at negotiations. It is likely that the project wouldhave no adverse impact upon the ecology, as it would not increase the inci-dence of bilharzia, since the irrigation system would be concrete-lined anduse plastic pipes and no additional area would be permanently under water.On the contrary, the project would have a positive impact on the ecology, asit would preserve the soil fertility of Guini and Berim polders, which other-wise would be rapidly destroyed by traditional irrigation methods.

V. COST ESTIMATES AND FINANCIAL ARRANGEMENTS

A. Project Costs

5.01 Project costs are estimated to total CFAF 2,925 million (US$13million), of which the foreign exchange component would be CFAF 2,340 million(US$10.4 million) or 80% of total costs.

5.02 Project costs net of import duties and other clearly identifiabletaxes are detailed in Annex 7 and summarized in the following table:

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CFAF % Foreignmillions US$ 000 ExchangeTotal Local Foreign Total

Irrigation WorksConstruction 1,131 1,110 3,920 5,030 78Supervision 103 80 380 460 83

Commercial Unit Investment 167 140 600 740 81Settlers Credit 37 30 130 160 82Agricultural ResearchCereals 170 160 600 760 79Cotton 23 20 80 100 80

Project Unit Overhead 276 210 1,020 1,230 83Other 32 - 140 140 100

Sub-total 1,939 1,750 6,870 8,620 80

Physical Contingency 218 200 770 970 80Price Contingency 768 680 2,730 3,410 80

Total Expected Project Cost 2,925 2,630 10,370 13,000 80

5.03 Project costs include: construction and supervision of the irriga-tion works; investment in the Field Operations Section (para 6.02): farmequipment, vehicles, housing and expatriate staff salaries; medium-term andincremental short-term credit to farmers; all expenses related ta the Agri-cultural Research Section: housing, equipment, vehicles, administrativeexpenses, and research staff salaries; Project Unit overhead: housing,vehicles, equipment, staff salaries, and administrative expenses for theProject Unit Administrative and Workshop Sections during the four-yeardisbursement period and; other: auditing, scholarships, and the cost ofthe consultant in organization to SODELAC. Project costs do not includethe running cost of the commercial. unit farm machinery nor the cost of thelocal extension staff salaries, the former being paid by the Project Unitf'rom the sale of produce grown on newly developed land, and the latter beingpaid by farmers through the water charges (Annex 7, Table 11).

5.04 Project costs include a physical contingency of 15% on irrigationworks, and 5% on all other project items and, in addition, a contingency tocover expected inflation over the four-year disbursement period. 1I/ Physicaland price contingencies amount to CFAF 939 million (US$4.2 million) or 47%of base costs. Base costs have been estimated at June 30th 1975. Expatriatestaff salaries include provision for back-up support services from the homeoffice of the consulting firm seconding such staff (para 6.03). Projectcosts include the purchase of all equipment necessary for the construction

1/ Civil works: 1975, 16%; 1976, 14%; 1977, 12%; 1978-79, 10%; and for therest: 1975, 12%; 1976, 10%; 1977, 8%; 1978-79, 7%.

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of those irrigation works to be built by force account, and for the openingof up to 400 ha of new land annually by the Field Operations Section. Theequipment would have a useful life beyond its project utilization--estimatedat 35% for construction equipment and 50% for agricultural equipment--and itwould be further used for development of Mamdi or other polders.

5.05 Assurances were obtained at negotiations that all goods requiredfor the project would be exempt from import duties and taxes.

5.06 The costs of the project are high with civil works costing, with-out contingencies, US$4,800/ha in 1975 terms. This cost is not representativeof the total cost of developing a new polder because the project polders werediked and dried out some 15 years ago. Developing a polder from scratch isestimated to cost US$6,300 for civil works in 1975 terms. This very highcost reflects a number of conditions specific to Chad; these include (a) hîghexternal transportation costs due to Chad's landlocked position and distancefrom the sea; (b) high internal transportation costs and the problems of thelake passage; (c) lack of a technically developed Chadian domestic contract-ing industry. This lack, combined with a generally small market and unattrac-tive working environment for foreign contractors, resuilts in minimal priceor design competition; and (d) a generally low level of experience in irriga-tion and major civil works in Government agencies that tends to preclude theinvestigation of possible lower cost construction methods. It does notappear that the above situation will change in the short run, although itshould improve as experience is built up through the implementation ofirrigation projects. Other major items in project costs are also high on aper hectare basis but generally reflect the diseconomies of a small scaleoperation. For example, costs of the commercial unit and project unit over-head, totaling US$2,000/ha in 1975 terms, could be spread over more thandouble the 1,200 ha covered by this project.

B. Proposed Financing

5.07 It is proposed that IDA make a credit of US$5 million to finance38% of total project costs excluding import duties and other identifiabletaxes. The credit would cover some 48% of the foreign cost estimated atCFAF 2,340 million or US$10.4 million. The remainder of project costs wouldbe met by: the African Development Fund (AFDF), US$5 million covering 38%of total expected project costs; USAID, US$1 million covering 8%; Fondsd'Aide et de Cooperation (FAC), US$2 million covering 16%. As AFDF and FACfinancings are critical for implementation of the project, assurances wereobtained at negotiations that AFDF board approval of the AFDF credit, and thatFAC committee approval of the FAC grant would be conditions of effectivenessof the proposed IDA credit. The LUSAID grant, which would finance only theresearch for cereals, is not as critical for the implementation of the project,and its approval was not made a condition of effectiveness. As SODELAC'smajor source of revenue would be the water charges, or consolidated fee, paidby farmers (Annex 7, Table 11), the relending terms for the IDA credit and thefunds received from the other donors would be determined by the level of the

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consolidated fee. For a consolidated fee of CFAF 130,000/ha, which is proposedinitially (para 7.13), relending terms to SODELAC would be: repayment of100% of financing received, over 50 years, at an interest rate of 0.25% (para7.14). Assurances were obtained at negotiations that the relending terms toSODELAC would be mutually acceptable to Government and IDA. Details of theproject financing plan are in Annex 7, Table 1 and are summarized in thefollowing table:

% ofIDA AFDF USAID FAC Total Total…------------ (US$ 000) …_____

Irrigation Works

Construction 1,310 3,160 560 5,030 39Supervision 290 50 120 460 3

Commercial Unit Investment 400 160 180 740 6Settlers Credit 120 40 160 1Agricultural ResearchCereals 760 760 6Cotton 80 - - 20 100 1

Project Unit Overhead 800 90 340 1,230 9Other 100 40 140 1

Sub-total 3,100 3,460 760 1,300 8,620 66

Physical Contingency 320 480 40 130 970 8Price Contingency 1,580 1,060 200 570 3,410 26

Total 5,000 5,000 1,000 2,000 13,000 100

.7. 38% 38% 8% 16%

5.08 The proposed financing plan recognizes that each source of financ-ing has its own financing and disbursement procedures which are not fullyand mutually compatible. AFDF, which cannot finance goods or servicessupplied from non-member countries, would finance in parallel to IDA;100% of the irrigation works built by local contractors, 100% of the procure-ment of PVC secondary distribution pipes, 100% of the equipment required forconstruction of the irrigation works, and 100% of the construction contractsfor staff housing and service centers to be built by local contractors(para 4.16). It is assumed that USAID would finance 100% of the agriculturalresearch component for cereals. FAC prefers to disburse pari passu with IDA.For this reason, the proposed financing plan assumes that IDA and FAC wouldfinance pari passu-71%-29%-- all project items except those financed byA4FDF and USAID.

5.09 As Chad is unable to prefinance project expenditures, IDA wouldfinance a revolving fund of CFAF 100 million (US$0.4 million), which wouldbe held and operated by Banque de Developpement du Tchad and used to pre-finance project activities and items fiinanced by IDA. The cofinancerswould be encouraged to make similar arrangements. To facilitate the earlystart of the project, it is proposed that IDA finance retroactively startingOctober lst expenditures incurred under IDA's share of the project in anamount not to exceed US$100,000 equivalent.

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C. Procurement

5.10 For those project items financed by IDA and FAC, the followingwould apply: orders or contracts for equipment, cement, vehicles or chem-icals with a value of more than US$25,000 would be through internationalcompetitive bidding (ICB) in accordance with IDA guidelines. Such procure-ment is estimated to have a value of CFAF 400 million 1/ or US$1.8 million.Some CFAF 200 million 1/ or US$1.1 million would be for operating expensesunsuitable for competitive bidding. The expatriates posted to the projectwould be provided under contract by a firm recruited internationally accord-ing to IDA guidelines; their salaries would amount to CFAF 400 million orUS$1.7 million. The remaining CFAF 500 million or US$2.4 million would befor contingencies. AFDF and USAID procurement procedures would apply tothose project items they would finance in amounts of US$5.0 million 2/and US$1.0 million 2/ respectively (para 4.16).

D. Disbursements

5.11 The proceeds of the IDA credit (US$5 million) would be disbursedover four years (1976-1979) as follows:

US$ Million

Category I Cement, equipment,vehicles, chemicals 1.3 71% of total expenditure

Category II Operating expenses,local staff 0.8 71% of total expenditure

Category III Expatriate technicalassistance 1.1 71% of total expenditure

Category IV Consulting services,audit, scholarships 0.1 71% of total expenditure

Category V Unallocated 1.7

Total 5.0

5.12 Disbursements of the IDA credit would be against import documenta-tion, contracts, and certified records of expenditures. For disbursementsmade against certified records of expenditures, documentation would not besubmitted for review as a matter of course, but would be retained by theProject Unit for scrutiny by Bank supervision missions. Any surplus credit

1/ Prior to Physical and Price contingencies.

2/ After Physical and Price contingencies.

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funds after completion of the pro-ect would be used to further developservices to farmers. The estimated schedule of disbursement of the IDAçredit is at Annex 7, Table 13.

5.13 To ensure that the financial viability of the project would notbe endangered by SODELAC's other activities, which financially are loss-mraking, SODELAC lost US$143,000 equivaient in the year 1973/74 (Annex 4),the following steps have been discussed with Government:

(a) As a condition of effectiveness, Government would pay in itsoutstanding share of SODELAC's capital, CFAF 70 million(US$94,000), and pay SODELAC the subsidies budgeted forSODELAC in fiscal years 1972/1973 and 1973/1974, and whichtotal CFAF 54 million (US$254,000). These steps would makeit possible for SODELAC to pay its outstanding accountswith its creditors.

(b) At negotiations, assurances were obtained from Governmentthat SODELAC would ensure full payment to farmers forseed cotton and wheat crops without any deduction otherthan the consolidated fee (para 7.13) and that in thefuture Government would meet promptly the full costs ofthose services provided by SODELAC at the request ofGovernnent to farmers outside the project area.

E. Accounts and Audit

5.14 Accounts for the Project Unit and for SODELAC would be kept sepa-rately under acceptable commercial accounting procedures. Both sets ofaccounts would be audited annually by independent auditors mutually accept-able to Government and IDA. Audited annual accounts, balance sheets andoperating statements would be submitted to IDA within four months of theclosing of the financial year. Assurances to the above effect were obtainedat negotiations. The farmers' consolidated fee would be paid into aspecial account kept by the Project Unit and debited with payments for currentexpenses and debt service to Government (para 7.13).

VI. ORGANIZATION AND MANAGEMENT

A. Orgaaization

6.01 The project wouid be carried out by Societe de Developpement duLac (SODELAC) through a Project Uni;: created for that purpose. SODELAC isa small, government owned corporation (para 3.10 and Annex 4), establishedin 1967, which is responsible for the Lake region development. SODELAC

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presently is engaged in three types of activities: polder development,rainfed development, and a number of other activities such as use of companyvehicles for general transportation purposes, marketing of dry fish, andconstruction of refrigerated rooms at N'Djamena airport for storage ofpotatoes grown in the polders. These latter activities have resulted in adispersion of SODELAC's management effort and increased its losses. SODELACneeds to be reorganized and particularly, to limit its activities to thoseof providing agricultura; extension services which it is committed to provideon behalf of Government to farmers and for which it is paid by Government,and those marketing activities which are authorized by its general charterand which are profitable. Government agrees with the need for a reorganiza-tion. Assurances were obtained at negotiations that a consultant, 10 man-months,mutually acceptable to Government and IDA would be appointed within six monthsof credit effectiveness to assist SODELAC in its reorganization, and that theconsultant's recommendations would be reviewed by Government and IDA with theintention of agreeing on a timetable for the implementation of the recommen-dations. Pending the results of the organization study and agreement ofGoverument and IDA on the modalities of reorganization, the Project Unitwould remain financially independent of SODELAC's other activities. Suchassurances vere obtained at negotiations. After the project developmentperiod the Project Unit would be merged into SODELAC.

6.02 A new SODELAC president has recently been designated. His experienceand qualifications are acceptable to IDA. Assurances were obtained at nego-tiations that the Association and Government would exchange views prior to theappointment of a new president for SODELAC. The President would be responsibleoverall for the project, but he would be more actively engaged in supervisingSODELAC activities outside the project. The Project Unit Manager would reportto him, and would be responsible for day-to-day implementation of the projectand for coordinating the work of the five project sections. The section headswould report to the Project Manager. An organization chart and the jobdescriptions for key staff are in Annex 8. The functions of the sectionsare si-mmarized below:

- Administration Section, responsible for the establishmentand the financial supervision of construction and supplierscontracts, project accounting, staff administration,financial arrangements for agricultural credit and for cropmarketing.

- Rural Engineering Section, responsible for the technicalpreparation of contracts, supervision of contractors,execution of works on force account, maintenance and opera-tion of the irrigation and drainage networks in the firstyears of project implementation.

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Field Operations Section, responsible for developing up to400 ha of polder land annually through a fully mechanizedsubsection, training extension staff and farmers in coopera-tion with the Research Section, extension services, farmerscredit assessment and distribution, practical arrangementsfor crop marketing, enforcement of lease contracts by farmers.

Agricultural Research Section, responsible for continuingapplied research, determining long-term fertility of poldersoils under continuous cultivation experimenting withsmall lift pumps and evaluating project results. It wouldalso assist the Field Operations Section in training Staffand farmers.

T'orkshop Section, responsible for vehicle maintenance andrepair, and maintenance of the irrigation and drainagenetworks in the latter years of project implementation.

B. Staffing

6.03 The Project Unit Manager and key project staff would be recruitedinternationally, 264 man-months, as Chad is acutely short of qualifiedpersonnel. Internationally recruited staff would be employed for four yearsfor the posts of Project Unit Manager, Director of Field Operations, andChief Mechanic. International recruitment would also be required for theposts of Rural Engineer, Topographer, and Commercial Manager with tenures ofless than the four-year development period. It is essential that inter-nationally recruited staff form a compatible team under the harsh livingconditions prevailing in the polders area, and that it be sufficiently back-stopped in technical matters. For these reasons, internationally recruitedstaff would be provided by an international company with recognized expertiseto carry out irrigation projects, including construction of works. Assuranceswere obtained at negotiations that the company and the terms and conditions ofemployment of the seconded staff would be mutually acceptable to Governmentand IDA. Evidence of the selection of the company would be a condition ofboard presentation. Appointment of the Project Unit Manager would be a con-dition of credit effectiveness. Government has decided to appoint the Frenchconsultants SCET-INTERNATIONAL to provide the internationally recruited staff.SCET prepared the project and operated the Matafo Research Station from 1970until 1972. SCET is acceptable to IDA.

6.04 The research staff, 108 man-months, including an Agronomist, anAgro-Economist and a Soul Scientist would be recruited by USAID under its ownprocedures. Assurances were obtained at negotîations that the research staffwould have qualifications and experience acceptable to Government and IDA.

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6.05 High and medium-level local staff would belong to one of the follow-ing specialities: Agricultural Engineer, or ITA (Ingenieur des TravauxAgricoles), Rural Engineer or ITR (Ingenieur des Travaux Ruraux), Accountant.There are a number of experienced ITA staff available in the country. Thefirst classes of ITR and accounting staff graduated in early 1974. Recruit-ment of high- and medium-level local staff should therefore not be a problem.Such staff would be seconded to the Project as government employees on fullpensionable service. They would be housed by the Project.

6.06 Farm level extension workers would be recruited among SODELACpersonnel already on Guini and Berim polders, and among literate candidatesconversant in the local language. The ratio of extension workers to farmerswould be one-to-30 in the first two years, increasing to one-to-100 in YearThree. This high ratio should allow extension staff to properly trainfarmers in agricultural techniques, particularly the application of water.Extension workers would report to a Section Extension Officer who would bean ITA, in charge of an irrigation unit of 400 ha.

C. Farmers' Settlement

6.07 The project feasibility study has verified the population withina 60 km radius of the project area at 62,200 people, of which there wouldbe 7,000 farm families (Annex 3). About 700 farm families already livein the project area. The development of the two project polders wouldrequire a total of 1,150 farm families, if they are given on the averagea 1 ha plot to cultivate. It is reasonable to assume that since all farmfamilies in the project area already practice traditional irrigation, theywould join the project. Some 450 farm families would settle from outsidethe project area. As this accounts for only 7% of the farming populationlocated within a 60 km radius, it should not be difficult to recruit settle-ment farmers.

6.08 While polder lands legally belong to the State (decree August 1,1967), and SODELAC is authorized under law to organize the settlement offarmers on newly developed polder lands, in order to avoid any misunder-standing, it is proposed that a decree should be issued by Government thatwould stipulate that:

(a) the rights of farmers already cultivating land in the Guiniand Berim polders would be examined according tocommon law;

(b) farmers whose rights could be established would be givenpriority for land allocation;

(c) SODELAC would be the sole agency mandated to allocate thepolders to settlers on behalf of Government;

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(d) SODELAC would be authorized to repossess farmers' landin case of noncompliance of farmers' obligations; and

(e) the decree would be bincling for all Ministries, particularly

MATE, MA, the Finance Ministry and the Lake Prefecture.

Assurances that this decree would be established were obtained at negotiations,

and its publication would be a condition of credit effectiveness.

6.09 Selection of farmers anc determination of their land tenurearrangements with SODELAC would be made jointly by the Project and the ComitePrefectoral du Developpement Rural, the latter comprising representativesc,f the prefecture, of various ifinistries, and politicians. Farmers wouldbe selected according to a number of criteria including: present proximityto the polders, size of family, farming experience, and existing assets--including ownership of bullocks. Initially, candidates whose main activityis farming would be considered. Land allocation would be limited to what afamily can handle effectively by itself without mechanical or temporary help(para 4.07). It is estimated that the average family, which is composed of2.8 adults, could not handle more than 1 ha of irrigated land in addition tocultivating 1.3 ha of rainfed millet on the dunes. Larger families could beallocated more. Assurances were obtained that IDA's approval would berequired if farmers were allotted more than 2 ha per family. Allocation ofless than 1 ha per family would be possible and left to the judgment of theProject and the Comite Prefectoral du Developpement Rural who should thenbe careful not to decrease farmers' incentives for participating in theproject and not to increase the problems connected with settlement of agreater number of farmers.

6.10 Farmers would be assured security of tenure for three years.SODELAC reglementation would specily the rights and obligations of SODELAC,or the Project Unit on behalf of SODELAC, and the farmer. The Project Unitwould control water supply for irrigation, crop cultivation patterns,maintenance of irrigation works, marketing, extension and credit operations.Farmers would be assured continuity of operation, supply of water, basicservices and sale of their produce at guaranteed prices. Farmers would payan annual consolidated fee to cover oDerating and maintenance costs incurredby the Project Unit and capital recovery (see para 7.12). Annéx 3 lists thesettlers' various obligations. Assurances were obtained that Polder lanlsiro,-ld be allotted to farmers under ternis and conditions mutually acceptableta Covernment and IDA.

6.11 If farmers do not comply with their obligations, their lands couldbe repossessed. The decision to repossess holdings or to impose otherdisciplinary action would be made by the Project, but advice would be soughtf rom the Unit Council (Conseil de Perimietre) to which the farmer belonged.Unit Councils would be created for each irrigation unit (para 4.04) andwculd include representatives of farmers and the extension staff assignedto the Unit.

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D. Training

6.12 High- and medium-level local staff would receive on-the-job train-ing so as to be in a position to replace expatriate staff after the projectdevelopment period. Training abroad in job specialities would also beencouraged through project-financed scholarships, i.e., to water managementinstitutes.

6.13 Extension workers would be trained at Matafo Research Center fora period of two cropping seasons. Training would be essentially practicaland would focus on wheat and cotton cultivation methods, irrigation methods,ox-drawn cultivation, agricultural credit crop marketing, and farmers'compliance with their leasing agreements. Training would be administeredjointly by the Field Operations Section and the Agricultural ResearchSection.

6.14 Once settled, a farmer would attend very short (3-4 day) trainingcourses to familiarize him with the new techniques and crops he will beencountering. Those courses would be given by the extension staff at oneof the three Project Service Centers. Thereafter, his training would bemainly in the field.

E. Credit

6.15 The project includes a revolving fund that would be used for theprovision of credit for farm inputs (fertilizers, insecticides and improvedseeds) and for the purchase of farm equipment and oxen. Once the ProjectUnit becomes an integral part of SODELAC (para 6.01), the revolving fundwould pass under the administration of SODELAC. All credit would be madein kind to the farmers. Seasonal credit would average about CFAF 67,000per ha per year and would carry an interest rate of 10%, the prevailing ratein Chad. It would be repaid after each crop. Medium-term credit wouldaverage CFAF 79,000, at an interest rate of 10%, and would be repaid over5 years. At negotiations assurances were obtained that the interest ratesand repayment terms of such agricultural credit would be acceptable toGovernment and IDA.

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VII. YIELDS AND PRODUCTION, MARKETS AND PRICES,FARMERS BENEFITS AND RECOVERY OF COSTS

A. Yields and Production

7.01 The excellent soil fertility of the polders, the simple croppingpattern, wheat and cotton, the limitation on holding size to that which thefarm family can handle efficiently with its own labor, should result invery satisfactory yield levels. It has been estimated, therefore, thatcotton and wheat yields under the project would average 2,500 kg/ha ofseed cotton and of grain respectively. These yields are 55-60% of theyields obtained on research plots on Guini polder, and below yields alreadyobtained by farmers on Guini polder in 1972 when averages of 3,500 kg/hafor seed cotton and 3,000 kg/ha for wheat were obtained on an area of 30 ha.

7.02 Project induced production would total about 3,000 tons of wheatand 3,000 tons of seed cotton annually by 1980. It is expected that about600 tons of wheat would be consumed by participating farm families. Farmers,would also produce vegetables for their own consumption on their smallpolder gardens. Garden production is not quantifiable at this time.

B. World Markets and Prices for Project Produced Commodities

7.03 World wheat production and consumption is expected to continueexpanding at its historic growth rate of slightly more than 2% until 1985.The world food system has long been based on the existence of massive stocksin the developed countries, primarily the USA, which helped stabilize worldprices. Wheat remained at US$60-70/ton f.o.b. US port from mid-1950's untilthe early '70's when serious crop shortfalls in 1972-73 demonstrated theinadequacy of a system depending on commercial stockpiling of a few export-ing countries. Occurrence of a record wheat crop in 1973-74 and a reason-able one in 1974-75 restored some degree of confidence in the system, andin recent months has led to a substantial easing of pressure on prices.Wheat prices doubled in 1973 to US$147/ton and reached US$209/ton in 1974.The Bank's Economic Commodities and Exports Projections Division (ECEPD)expects wheat to trade between US$190/ton and US$175/ton in 1975 and todecrease to US$125/ton in constanir 1974 terms by 1980-81 (Annex 9, Table 2).

7.04 World cotton consumption is tied to the level of world economicactivity. Consumption declined sharply in 1974 and 1975 in the developedcountries, where severe recession prevailed. Consumption prospects shouldiLmprove by 1976. Production and consumption should be expanding at aroundthe historical rate of 2% per annum from 1976 to 1985. Cotton prices in1973 constant dollar terms declined by one-third between 1955 and 1966,stabilized between 1966 and 1972, and increased about 40% in 1973 during the

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commodity price boom. The price of the Mexican SM 1-1/1i6", which is thestandard for Bank's projections, reached US cents 62/lb c.i.f. Europe in1973 and decreased in 1974 to US cents 54/lb. ECEPD forecasts that competi-tive pressures from man-made fibers will keep it at about the latter level,in 1974 cosntant terms, until 1985. It is expected that the longer staplegrown under the project (1-3/32") should continue to fetch a US cents 1.5/lblength premium over the standard (Annex 9, Table 2).

C. Local Marketing and Prices

7.05 Currently, most wheat grown in the polders is marketed locallyand eventually exported illegally to Nigeria. 1/ SODELAC has responsibilityfor organizing wheat purchases from growers in the project area and fertransporting the crop to consutnption centers, principally N'Djamena (Annex4). A number of reasons, including low yields during the drought years 1970throughout 1973, the impossibility of using the lake for transport in 1972and 1973, and unrealistically low official producer prices led to the amountof wheat marketed by SODELAC falling from 1,300 tons in 1970-71 to 150 tonsin 1973-74. On the other hand, purchases by private traders have increasedto a significant extent.

7.06 To encourage the sale of wheat through SODELAC and thus the supplyof domestic rather than Nigerian markets, Governxnent increased the officialproducer price for wheat from CFAF 20/kg to CFAF 32/kg in 1974. As aconsequence, the amount of wheat marketed by SODELAC will reach record levelsin 1974/1975. Since 1974, SODELAC is guaranteed a CFAF 18/kg margin tomarket and transport wheat to the flour mill. This margin adequately coversSODELAC expenses. SODELAC is therefore paid CFAF 50/kg by the flour mill(CFAF 41/kg in 1973 terms). This compares with economic values for projectwheat of CFAF 53-52/kg in 1973 constant terms over the period 1976-1985(Annex 9, Table 2).

7.07 SODELAC sells its wheat to the Grands Moulins du Tchad (GMT),a private company which has the monopoly for flour milling and importing inChad. GIT's mill in N'Djamena operates at only a fraction of its capacity,12,000 tons annually, as the quantity of wheat produced locally is insuffi-cient for capacity production. To meet internal demand, GMT has been import-ing wheat flour processed in its Dakar, Senegal mill. Given the relativelysmall quantities of domestic wheat 2/ that will be available in the nextfew years, it is clear that the mill will continue to operate substantially

1/ Chad prohibits the export of wheat.

2/ The major source of domestic wheat will be the project wheat, which isexpected to reach only 3,000 tons at full development.

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below capacity, and that milling costs will remain high. There is no otherrmili or other alternative for processing project produced wheat. Governnenttherefore agrees that, in order to take into account this high milling cost,wheat should be sold to GMT at a discount from its import substitution price.

7.08 SODELAC and GMT would enter into a formal agreement by which GMTwould purchase project produced wlheat. The agreement would be made bySODELAC in the name of the farmers. It would stipulate the price to be paidto farmers. SODELAC's expenses for transDort and marketing would be paidby farmers through the consolidated fee (para 7.12). The discount to begiven GMT would be negotiated between Government, SODELAC and GMT, and wouldbe essentially the function of the amounts of wheat sold. Governnent wasrequested during negotiations to mnake all necessary efforts to keep thediscount small, if possible, below the 20% level implicitly implied by thef'armers present producer prices of CFAF 50/kg. Assurances were obtained atnegotiations that (a) SODELAC would enter into a formal agreement with GMTunder which GMT would purchase project produced wheat at a price based on aformula that would attribute to project wheat its effective economic value,less a factor to take into account GMT's high milling costs, and (b) thatthe formula which would be acceptable to Governnent, GMT, SODELAC and IDAwould be established no later than December 31, 1976. Agreement betweenGMT and SODELAC would be a condition of effectiveness.

7.09 Cotontchad, a Government majority-owned corporation has a mono-poly of seed cotton purchasing, cotton ginning, and marketing cotton lintand seed. It owns and operates 22 cotton ginneries mostly located in thesouth of the country. It is presently establishing a simall cotton ginneryat Bol (1,000 ton capacity), which will have a capacity sufficient to processall the cotton grown outside the project area and project production duringthe first 3 years. Expansion of this ginnery will essentially depend onwhether Mamdi polder is developed. Its developmnent would bring the totalproduction of seed cotton in the Bol area to about 8,000 tons, which wouldjustify the construction of a modern ginnerv of two 120 saw units, eachwith a 4,000 ton capacity.

7.10 Under the project SODELAC would enter into a long-term agreementwiLth Cotontchad under which Cotontchad would commit itself to buy projectproduced cotton at prices tied to the world market. The economic farm gateprice for project seed cotton would be around CFAF 167/kg of lint, CFAF 60/kgof seed cotton, 1/ in 1973 constant: terms (Annex 9, Table 2). Profits madeby Cotontchad are a major source of Government revenue. For example,CFAF 2.8 billion (US$12 million), 80% of Cotontchad profits, were paid toGovernment Caisse de Stabilisation in 1973/74. This is in addition to acotton tax of CFAF 17/kg of seed cotton levied on all lint exported. Inshiort, Cotontchad operates a taxing system on cotton farmers who, whilepoor by any standards, are the most affluent in the country. It is proposedin the interest of equity that the same "taxing" systemn be applied to projectfarmers by paying to them the samie price paid to rainfed cotton farmers,

1/ The yield outturn of lint from. seed cotton is about 40%.

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plus a prenium for the better staple length and quality of the cotton andan adjustment for transportation costs which would not be incurred. Conse-quently, in project financial projections, it is assumed that Cotontchadwould pay a price of CFAF 53/kg for project produced seed cotton deliveredto the ginnery. This would compare with the CFAF 45/kg Cotontchad now paysproducers for the shorter staple cotton 1/ grown in the south. Of thedifference of CFAF 8/kg, CFAF 5/kg are collection costs incurred in thesouth, but not applicable to project cotton, which would be collected by theProject Unit and delivered to the ginnery. The costs of collection anddelivery would be incorporated in the farmers' consolidated fee. Thispricing system would give Bol farmers a net premium of CFAF 3/kg for theircotton which is consistent with the difference that its longer staple lintwould fetch on world markets, usually about US$0.015/kg (CFAF 8/kg). 2/Agreement that Cotontchad and SODELAC have agreed on a long-term contractwould be a condition of credit effectiveness. Assurances were also obtainedat negotiations that the price paid by Cotontchad for project producedcotton would always be at a level acceptable to Government, SODELAC andIDA.

D. Farmers Benefits and Cost Recovery

7.11 A model budget for a typical settler who would cultivate 1 ha ofpolders, 1.3 ha of millet on the dunes, a polder garden and keep an averageof 3.5 animal units is in Annex 3, Tables 2 and 3. The budget is expressedin 1975 terms. Excluding the value of the garden produce, which cannot bequantified at this time, total gross income would amount to CFAF 282,500(US$1,256) p.er family, about US$300 per capita, compared to CFAF 32,900(US$146), US$35 per capita, prior to the project (about half the nationalGDP average). Without the project no change in farmers' income is antici-pated. While income would increase substantially, the amount of work re-quired of the family would also increase on irrigation activities alone,from an estimated 93 to 364 man-days annually (rainfed agriculture requiringsome 25 man-days), still leaving some 476 man-days for other activities.

7.12 After meeting direct production costs--seed, fertilizers, pesti-cides, debt service on credit received for seasonal inputs--and after meetingfood requirements, the family farming one ha of irrigated land would be inreceipt of an income of CFAF 245,500 (US$1,091) annually, assuming achievementof the yields and prices set out in paras 7.01 7.03 and 7.04. Clearly,the family would be able to meet the cost of services provided to it bySODELAC, i.e., the operation and maintenance (O and M) cost of the irrigationsystem, the cost of extension and other SODELAC overhead, and costs incurredin collecting and delivering the families' produce to Cotontchad and GMT.

1/ Southern cotton is 1-1/32" to 1-1/16" long; Bol cotton would be 1-3/32"long.

2/ The yield outturn of lint from seed cotton is about 40%.

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On the basis of the estimates in Annex 7, Table 11, annual O and M costsare estimated at CFAF 28,000/ha; extension services and other projectmanagement overhead CFAF 32,000/ha; and produce collection and deliveryCFAF 14,000/ha; total CFAF 74,000C/ha. Following payment of these charges,the family would remain in receipt of CFAF 171,500 (US$762) annually.There is neither a governmental policy for the recovery of irrigation projectinvestment costs from participants nor an understanding of the level ofincentives, financial and othenrise, that families require to induce themto remain and efficiently farm irrigated holdings. It would appear, however,that a net family income of CFAF 115,500 (US$513) which would imply a returnof CFAF 297 per man-day worked by the family on the holding, and which wouldcompare with a return of CFAF 85 per man-day employed in traditional irrigatedcultivation, would be a minimal incentive. The figure of CFAF 297 is twicethe official daily labor rate. This would permit the farm family to makea sizable payment of CFAF 56,000/ha annually to partly amortize projectinvestment costs.

7.13 Farmers would, therefore, initially and temporarily be charged aconsolidated fee of CFAF 130,000/1a (US$578) 1/. This was the maximumaccepted by Governnent at negotiations, and about 7 times the payments madeby farmers on the Bangor irrigation scheme in the southern part of thecountry. This fee would be reviewed fromn time to time and especially everythree years at the end of the security tenure arrangements. It should thenbe possible to determine whether the level of the consolidated fee isadequate on the basis of farmers' response to the opportunity to prolongfarming. Assurances were obtained at negotiations that the level of theconsolidated fee, which would be set initially and tenporarily at CFAFil30,000/ha, would always be acceptable to SODELAC Government and IDA andthat it would be reviewed on an annual basis until such time that all thieparties were satisfied that the formula employed in establishing theconsolidated fee was satisfactory. The consolidated fee would be paid byfarmrers in two equal installments through deductions from the sale of theirseed cotton and their wheat. Payments would be credited to two accounts,cine which would initially receive CFAF 74,000/ha per year and which wouldbe used by the Project Unit to meet jts operating expenses (para 7.12), andthe other, which would initially receive CFAF 56,000/ha per year and whichwould be used to repay government investment in the proiect. Both accountswould be kept by the Project Unit until such time as the Project Unit becomesan integral part of SODELAC (para 6.01).

7.14 Farmers' payments wou]d enable SO1)ELAC to cover alL its operal ingcharges (para 7.12) and to repay governmeent invxstrnent i- tiCluh projeci- ovi-a 50-year period at a nominal interest chargo of 0(.25 (pa)ra '5.0/). P`xpr<i;iildifferently, assuming the country's cost oft capital to be 1OZ, Governmtielnrecovery through the consoliclated fee alone from its initial investnienL aindrecurrent expenditures in the project would be 40% over a 50-year period

1/ CFAF 74,000/ha, plus CFAF 56,000/ha.

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(Annex 10, Table 1). Governmient recovery would increase to 68%, if projectinduced cotton taxes, and profits generated by Cotontchad are added to theconsolidated fee (Annex 10, Table 2). 1/ All three measures indicate acertain degree of government subsidy, which is justified given that theproject is economically viable and that farmers' response must be testedprior to increasing the consolidated fee.

VIII. ECONOM7C BENEFITS AND JUSTIFICATION

8.01 The project's direct benefits would be the 3,000 tons of wheat andthe 3,000 tons of seed cotton production that it would generate annually,and which would result in higher incomes for some 1,200 farm familiesassuming that each farm family is given 1 ha of irrigated land to cultivate.At the present farm family size, verified by the project feasibility studyat 4 persons, a minimum of about 5,000 people would benefit directly from theproject. If farmers are allotted 0.5 ha in the polders, and if the farmfamily size increases, say to 6 persons, through increased birth rates madepossible by better diets and higher incomes, and through the attraction tothe project area of members of the extended family, the number of people whowould eventually benefit directly from the project may reach some 14,000.The economic rate of return from investment in the project is estimiated at17% (Annex 11, Table 1). Important assumptions used in the calculations are:

(a) economic farm gate prices in 1973 constant CFAF termsas projected bv the Bank's Economic Analysis andProjections Division based on export parity forcotton lint and import substitution for wheat;

(b) shadow CFAF rate of 270 per US$ instead of the currentexchange rate of CFAF 225 per US$ to take account ofexisting import and export taxes and the additionalfactors that weaken Chad's balance of payments andresult in durable, low levels of reserves;

(c) inclusion as an economic cost of the foregone incomeof farmers engaged in traditional irrigation and otheractivities; this income is estimated at CFAF 7,900/yearper family; however, no opportunity cost has been attri-buted to the incremental work effort required of farmersunder the project (364 days versus 93);

1/ Part of the Cotontchad operating profit can be viewed as a monopsonist'sprofit akin to a government tax. Neither this profit nor the regularcotton tax are comparable with the consolidated fee. The fee is specifieto the project, whereas the operating profit and the cotton tax are notspecific. They are general taxes paid also by farmers not profitingfrom the project.

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(d) exclusion of the costs of the agricultural researchcomponent and of the costs of consulting services forSODELAC's reorganization since the benefits they wouldgenerate would be attributable to development activitiesbeyond the scope of the project.

8.02 A sensitivity analysis of the economic rate of return is in Annex11, Table 2 and is summarized below.

Benefits (%) 100 90 110 100 100Costs (Z) 100 100 100 90 110Rate of return (%) 17 14 19 19 14

This sensitivity analysis indicates that the project's rate of return wouldbe very sensitive to variations in benefits or costs. A variation of bene-fits or costs of 1% would result in an absolute change of 0.2 to 0.3 percentagepoints in the project's rate of return. Without shadow pricing of the foreignexchange, the rate of return would become 16%. Costing the additional farmerlabor required for polder cultivation (271 days per ha per year and per family)at CFAF 170/day, which is the minimum wage in the agricultural sector, wouldbring the rate of return to 13%, which is still acceptable.

8.03 The project would have a number of secondary benefits which havenot been included in the economic rate of return calculations:

(a) It would prevent the progressive salinization and eventualabandonment of Guini and Berim polders. About 70% of the22,000 ha empoldered since 1959 have become unsuitable, possiblypermanently, for cultivation, as traditional irrigation exacer-bates the natural salinization process and is resulting in thedestruction of this major resource.

(b) It would create a pole of development in the so far under-privileged northern part of Chad; it would help stabilize thefarm community, which otherwise would continue migrating tothe south and the towns; it would help reduce the incomedisparity between the norrhern and the southern regions ofthe country and between the rural and urban populations.

(c) It would help strengthen the balance of payments of thecountry by providing a permanent source of foreign exchangeearnings and savings. Nei: foreign exchange earnings wouldamount to US$2 million anmually by 1980.

(d) It would provide a reliaDle source of agricultural production,which in case of drought could be converted entirely to theproduction of cereals, and thus reduce the need to importfood to avert famine; it would also provide the crop by-productsneeded to establish a livestock finishing industry in the Bolarea; and

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(e) It would provide a basis for the development of a moderntechnology in irrigated agriculture.

8.04 The risks attached to the project have been considered from severalangles: technical, institutional, and social. The risks have been reducedinsofar as possible and are considered worth taking. The project financesonly those Irrigation Works whose study has been carried to the stage of detailengineering and final design. The project will be carried out by the agencyresponsible for Lake Chad development (SODELAC), but through a well staffedand well equipped Project Unit which will be created for that purpose withinSODELAC. The Lake Region population, although somewhat sparse, and as yet notmuch involved in modern irrigation, has repeatedly shown a strong interest inpolder development and in learning modern irrigation techniques, first, 15 yearsago when they participated in the construction of dikes for those parts of thelake which were then empoldered, and more recently since 1970, when farmersettlement started on Guini polder.

8.05 As indicated above, the project, although expensive by most standardsbecause of its pilot nature and the generally high cost of civil works inChad (see para 5.06), is fully justified economically. IDA's exposure in theproject is not large (38% of total financing required), but is essential forthe mobilization of aid from the three other donors (AFDF, FAC, and USAID).Without IDA participation these agencies would reconsider theïr participationin the project. As the proposed project is one of the very few, if not theonly project of any magnitude in the agriculture sector ready for financingand execution, funds released by withdrawal of these other donors could notimmediately be reallocated to other projects.

IX. RECOMMENDATIONS

9.01 Assurances were obtained at negotiations that:

(a) Government should undertake a limited epidemiological studyof the project area. The results of the study would bereviewed by Government and IDA to determine the possibilityof extension of the diseases and what steps could reasonablybe taken to control them (para 4.18).

(b) All gooda required for the project would be exempt fromimport duties and taxes (para 5.05).

(c) The relending terms of project financing to SODELAC wouldbe mutually acceptable to Government and IDA (para 5.07).

(d) SODELAC would ensure full payment to farmers for seedcotton and wheat crops without any deduction other thanthe consolidated fee, and in future Government would meetpromptly the full costs of those services provided bySODELAC at the request of Covernment to farmers outsidethe project area (para 5.13 (b)).

- 32 -

(e) Accounts for the Project Unit and for SODELAC would bekept senarately under acceptable commercial accountingprocedures, and both sets would be audited annually byindependent auditors, mutually acceptable to Governmentand IDA, and audited accounts would be submitted to IDAwithin four months of the closing of the financial year(para 5.14).

(f) A consultant mutually acceptable to Government and IDAwould be appointed withi.n six months of credit effective-ness to assist SODELAC i'n its reorganization, and hisrecommendations would be reviewed by Governnent and IDAwith the intention of agreeing on a timetable for theimplementation of the recommendations. Pending the resultsof the study and agreement on the modalities of the reorga-nization, the Project Unit would remain financially inde-pendent of SODELAC's other activities (para 6.01).

(g) The Association and Government would exchange views priorto the appointment of a new president for SODELAC (para 6.02).

(h) The company providing internationally recruited staff andthe terms and conditions of employment of the seconded staffwould be mutually acceptable to Government and IDA (para 6.03).

(i) The research staff would have qualifications and experienceacceptable to Government and IDA (para 6.04).

(j) A decree would be issued to reaffirm SODELAC's authorityto organize settlement of farmers on newly developed polderland (para 6.08).

(k) IDA's appr'oval would be required if farmers were allottedmore than 2 ha (para 6.09).

(1) Polder lands would be allotted to farmers under terms andconditions mutually acceptable to Government and IDA(para 6.10).

(m) The agricultural credit :interest rates and repayment termswould be acceptable to Government and IDA (para 6.15).

(n) SODeLAC would enter into a formal agreement with GMT underwhich GMT would purchase project produced wheat at a pricebased on a formula that would attribute to project wheatits effective economic value, less a factor to take intoaccount G.T's high milling costs; and that the formula,which would be acceptable to Governnent, GMT, SODELAC and

- 33 -

IDA, would be established no later than December 31, 1976(para 7.08).

(o) Cotontchad would be required to buy project producedcotton at prices tied to the world market and at a levelalways acceptable to Government, SODELAC and IDA (para 7.10).

(p) The level of the consolidated fee, initially and temporarilyset at CFAF 130,000/ha would always be acceptable to SODELAC,Government and IDA. It would be reviewed on an annual basisuntil such time that ail parties were satisfied that theformula employed in establishing the fee was satisfactory(para 7.13).

9.02 Prior to presentation of the credit to IDA's executive directors,IDA should have received evidence of the selection of the company which

would provide internationally recruited staff (para. 6.03).

9.03 Conditions of effectiveness would be that:

(a) AFDF board had approved the AFDF credit, and that the FACcommittee had approved the FAC grant (para 5.07)

(b) IDA be informed by Governnent that it has paid in itsoutstanding share of SODELAC's capital and the subsidiesbudgeted for SODELAC in 1972/1973 and 1973/1974 so thatSODELAC could Day its outstanding accounts with itscreditors (para 5.13 (a)).

(c) The Project Unit Manager would have been appointed(para 6.03).

(d) The decree restating SODELAC's authority to organize settle-ment of farmers on newly develped polder land would havebeen published (para 6.08).

(e) G1T and SODELAC have agreed on a long-term contract(para 7.08).

(f) Cotontchad and SODELAC have agreed on a long--term contract(para 7.10).

9.04 With the above assurances, the project is suitable for an IDAcredit of US$5 million to the Republic of Chad.

CHAD POLDERS PROJECT

Agricultural Statistics

A. Cereals Production ('000 tons)

1964/ 1965/ 1966/ 1967/ 1968/ 1969/ 1970/ 1971/ 1972/ 1973/ 1974/1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975

Millet - Sorg'num 710 614 630 647 661 651 610 585 432 - -

Rice 3 - 37 32 32 37 39 41 42

Wheat 4 5 5 5 6 8 7 7 - - -

Total 71 7 619 672 684 699 696 656 633 474 380 564

Food Requirements.- 41_8 425 432 439 1446 454 462 470 478 486 494

Food Surplus (Deficit) 2 99 194 2h0 245 253 242 194 163 (4) (106) 70

B. Seed Cotton Production ('000 tons)

Seed Cotton - 87 122 102 148 117 95 108 104 115 140

LI 110 kg per inhabitant in Sahelian zone, and 160 kg per inhabitant in northern zone.

ANNEX 1_:IAD Table 2

CHAD POLDERS PROJECT

Agricul'bural Statistics

Country Exorts(CIPAF millions)

1971 1972 1973

_ _ _ _ _ _ _ _ _~~~_ _~ __

Cotton 5,225 67.1 6,056 67.1 5,380 63.4

Livestocklive cattle 279 3.6 374 4.1 439 5.2sheeps/goats 18 0.2 il 0.1 25 0.3carneis 88 1.1 86 1.0 99 1.2carcass meat 1,477 19.0 904 10.0 562 6.6salted meat 25 0.3 27 0.3 76 0.9

Fish 32 0.4 96 1.1 48 0.6

Arabic gumn 37 0.5 45 0.5 23 0.3

N'atron 12 0.2 90 1.0 41 o.5

SkLnsl/hides 91 1.2 112 1.2 220 2.6

Other 503 6.4 1,227 13.6 1,570 18.4

Total 7,787 100.0 9,028 100.0 8,483 100.0

…

ANNEX 2

CHAD

LAKE CHAD POLDERS PROJECT

Project Area Soils

General

1. The soils of Guini and Berim polders have been examined and describedby a number of investigators and classified according to various technicalcharacteristics: depth to water table, salt content of groundwater, saltcontent of the top 0.4 m of soil, and problems such as salinity and alkaliza-tion. Despite all these studies, a systematic soil survey based on physicalcharacteristics that are important for long-term crop production (para 6) hasnot yet been done, and will be undertaken prior to the start of the project.

2. Over most of Guini and Berim, a dark, loose, mulch-like mixture ofclay or clay-loam, with 6 - 15% organic matter and 0.1 - 0.4 m thick, over-lies a sandy or calcareous layer (or both) from a few to 50 cm thick; theseare underlain by a thick (0.5 - 2.0 m or more) lay of blocky, columnar, fissured(highly permeable) heavy clay, generally coated with iron oxides. Other layers,including mucks and loose muds, are sometimes encountered. There is consider-able subsidence of the soil's surface related to the polderization process,owing primarily to irreversible shrinkage of the heavy clay layer upon dessi-cation and also because of rapid decomposition and hence shrinkage of thehighly organic surface layer.

3. The soils of Guini and Berim polders are high in nutrient elementsand in clay and in cation exchange capacity; their clays are largely mont-morillonite (50-70%) with lesser amounts of kaolinite (20-40%) and illite(trace- 10%), are slightly to moderately saline, and are slightly to moderatelycalcareous. Chemical reducing conditions in the highly organic, waterloggedareas lead to formation of alkali soils in some locations and to acid soils inothers.

Soil Salinity

4. Based on the electrical conductivity of the lake, which varies fromabout 50 micromhos at the mouth of the Chari to a high of about 800 micromhosalong the distant northern shore, the salinity content varies from about30 mg/l - 550 mg/l. When land is empoldered, the saline water evaporates ina few years leaving a residue of salt in the soil and the groundwater slightlysaline. Neither soil nor groundwater normally is too high in salinity forreasonably good crop production. However, such empoldered land, which isusually cleared and planted as soon as possible, would contain enough moisturefor growth of only one crop if it were not for seepage of lake water throughand under the intervening dry land into the polders. It is estimated thatseepage amounts to about 2 m/ha/year. Thus, at a concSntration of 400 mg/i,the salt content in the polders would increase 800 g/m /year. If all of this

ANNEX 2Page 2

salt was concentrated in the surface two meters of soil, the average saltcontent in the polders' soil would increase 0.04% per year, and reach thedanger level of 0.3% in less than eight years. The rate of salt accumulationis, however, decreased by (a) precipitation of much of the calcium and someof the magnesium in the soil mass as carbonates, (b) by diffusion of saltsinto the groundwater and/or deep subsoil, (c) the blowing away of loosesurface deposits of salt by winds, (d) occasional submergence and desaliniza-tion of polders by lake water and (e) slow seepage of diffused undergroundsalts away from some polders. Conversely, the rate of salt accumulation isincreased by the capillarity process, which accumulates salt close to the soilsurface, and on balance the danger level could be reached in less than eightyears.

5. Salinity surveys of Guini and Berim polders in 1966 showed that onlya small portion of each had a damaging concentration in the surface half meterof soil where the salts tend to concentrate; furthermore, in contrast withcther polders, the severity of the salinity problem has increased very slowlysince the mid-1960s indicating almost certainly that some salt is being elimi-nated, probably-by seepage from these polders. Alkali problems have developedonly in a few spots where the soils are high in organic matter and waterloggedto the surface.

Assessment

6. Salinity and alkali problems have heretofore received much attentionand have been considered to be the primary constraints to productivity. How-ever, they are important constraints only if drainage is not provided. Otherproblems such-as exhaustion of essential nutrients, irreversible shrinkageof the columnar clay layer with formation of laterite-like material, and weedand insect control may be more troublesome in the long run, and should be theobject of systematic agricultural and soil research. It is intended thatreéearch be financed by USAID under a separate project agreement with Govern-ment and that coordination between both projects be carried out by projectmLanagement.

ANNEX 3

CHAD

LAKE CHAD POLDERS PROJECT

Agricultural DeveloPment

A. General

1. The archipelago of sand islands, wliich can be transformed intopolders, occupies some 28% of the area of Lake Chad. The archipelagois located in the Prefecture du Lac (headquarters Bol) and in the Prefecturedu Kanem (headquarters Mao). The total populati2n of the two prefecteres isabout 250,000; population pressure averages 4/km , but is about 30/km closeto the lake.

2. The two principal ethnic groups in the lake prefecture are theBadumas and the Kanembous. The Badumas, originally inhabitants of the lakeislands, are fishermen by tradition; they also grow millet on the dunes duringthe rainy season. In precolonial times, the Badumas controlled the islandsand the shore, the Kanembous the mainland, and the two groups were frequentlvat war; the area close to the shore was a no-man's-land without appreciablesettlement until the French came.

3. A number of crops are grown in the lake prefecture: millet, wheat,maize and onions are some of the more important. Cotton, tomatoes, beans,peppers, okra, potatoes and sorghum are also cultivated. Millet, the basicfood crop of the region is a rainy season crop grown on the dunes. Wheat hasbeen cultivated in the area under traditional irrigation for at least a hundredyears; it is a luxury food that sells at a relatively high price. Maize isplanted after millet in wet areas of the polders and along the edge of thelake; at times, it is cultivated under irrigation. As the Kanembous andBadumas appear to be the only groups in Chad who eat maize to any significantdegree, the possibilities of marketing large quantities of maize are limited.Large quantities of onions are grown in the dry season and are marketed inN'Djamena.

4. The traditional systems of farming are extremely simple. Cultivationis carried out mainly by hand; methods such as row planting, fertilizer,improved seeds, and insecticides are virtually unknown. Irrigation, whereused, is by digging shallow wells in the dry river beds (wadis) and polders,and extracting the water with the traditional shadoof. In recent years, somesmall motorized pumps have been introduced; but most of these are not func-tioning either through lack of maintenance or problems in obtaining fuel.Traditional yields are low, 500-600 kg/ha for sorghum, and 1,000-1,500 kg/hafor maize and wheat.

ANNEX 3Page 2

5. Cattle raising is an important part of Kanembou and Baduma life,and milk is a preferred food. Cattle are the traditional form of savings andinvestment. It is estimated that in the Prefecture du Lac there are some350,000 head of cattle, 140,000 camels, horses and donkeys, and 650,000small stock (goats and sheep). Marketed stock generally finds its way toNigeria.

B. The Project Farmers

6. The key to the project's success would be the ability of SODELACto attract sufficient people to become settlers or to work as hired labor.New farmers for polder cultivation would come from subprefectures of Bol,N'Gouri and Mao. Assuming that farm families are given 1 ha each, the projectitself would require some 1,150 farm families, and the development of Mandipolder an additional 1,650 farm families, or a total of 2,800 families. About700 farn families are already living within a 5 km radius around Bol, and prob-ably all would be prepared to participate in the project, and thus it can beexpected that the project would 'have to attract some 2,100 farm families fromBol, N'Gouri and Mao subprefectures.

7. The present population is estimated as follows:

Total Farm Number ofNumbers Population Farm Families

Within 5 km of Bol 7,300 2,900 700Bol subprefecture (5-60 km) 29,300 13,700 3,400N'Gouri subprefecture (to 60 km) 25,600 11,500 2,900

Subtotal 62,200 28,100 7,000

Remaining Prefecture du Lac 33,100 13,300 3,300Prefecture du Kanem 156,000 73,000 18,300

Total 251,300 114,400 28,600

The project is expected to involve all existing farm families within a 5 kmradius of Bol. The villages of these people are contiguous to the poldersand they will not have to make radical changes in their social order andtraditions în order to participate. Most farmers cultivating existing poldersfartlher away L'rom Bol, in Bol and N'Gouri subprefectures, would probably waitand hope for _he project to expand, but perhaps 10% would contemplate movingto the project (or 630 families). The other 1,470 families would thus haveto come froin the remaining parts of Prefecture du Lac and Prefecture du Kanem.This wou'd involve a migration of some 7% of the population over a 7 yearperiod. The mobility of the population has already been evidenced by the massmigration that occurred at the tine the first polders were constructed. Given

ANNEX 3Page 3

the relatively low requirements of the project compared to the total populationof the area, it appears safe to assume that the polders would be settled in atimely manner provided that adequate incentives are offered and maintained.

8. Farm and Family Size. The average farm family is estimated to com-prise about 4 persons, with 2.8 adults and about 70 mandays/month labor equi-valent available per family. Based on experience elsewhere in Africa, suchaverage-size families do not have the labor capacity to effectively handlemore than about 1 ha of double-cropped irrigation land. Therefore, under theproject the minimum unit would be 1 ha/family with a flexible upper limit ofup to 2 ha depending on family labor availability. IDA's approval would berequested if the project management intends to allocate more than 2 ha perfamily of 4 adults.

9. Experience indicates that most participating farmers would, in addi-tion to their 1 ha of polder, cultivate about 1.3 ha of rainfed millet anda emall polder garden of 0.05-0.15 ha. The latter would be for crops such asvegetables and maize, and these gardens would be developed on spare land inthe polders, e.g., odd corners.

C. Crops

Crop Research Results

10. Since 1970, SODELAC has carried out cropping experiments and trialsat the Matafo Agricultural Research Station. The aim is to determine optimumcultural methods and potential yields of various varieties of cereals andcotton. Although these trials suffered from the general lowering of the lakewater level, and lack of funds, they have demonstrated for the crops testedan extremely good potential under soils and conditions similar to those ofMatafo. Yields obtained by farmers in 1973 on 30 ha of properly irrigatedland averaged 3,500 kg/ha for cotton and 3,000 kg/ha for wheat. The initialresearch effort has been devoted mainly to cotton and winter wheat becausethese two crops will provide the basis for the polders cropping system. Inaddition, a few trials have been carried out on maize; and some interestinglivestock fattening trials have been undertaken using cottonseed and pennisetum.

Cotton

11. Experimental results indicate significant yield differences betweenG. hirsutum and G. barbadense varieties. The results of the 1972 trials in-dicate average yields of 4,500 kg/ha for G. hirsutum varieties and 2,300 kg/hafor G. barbadense varieties. The U.S. Coker 310/312/417 varieties consistentlygave high yields. Ston 213 yielded well as did Ston okra-leaf varieties.Average yields during 1973 were 4,000 kg/ha.

ANNEX 3Page 4

An analysis by IRCT for 1972 variety trials gave the following results:

PresslyVariety and Production % Length UR Finess ResistanceOrigin kg/ha Fiber 2.5% % Micro Index 1,000 PSI

Chad HG9 3,795 36.8 30.2 48.0 4.30 8.20 88.6USA - Coker 310 4,848 3,.8 30.1 48.2 4.45 8.26 89.2USA - Coker 417 4,706 3,.8 30.4 48.4 4.20 7.70 83.2USA - Acala SJl 4.342 37.1 29.6 47.6 3.65 10.85 117.2USA - Ston 213 4,904 38.4 29.1 47.8 4.50 8.42 90.9BC6 - Stan 7A 4,050 36.8 29.5 47.4 3.43 7.95 85.8

okra

On the basis of total performance, and particularly with regard to excellentquality length, the Coker varieties are favored. During the initial phase ofthe project, Coker 417 is likely to be the variety used. Also, because of thèdense vegetative growth of cotton at Bol, the less dense okra-leaf varietieswould be tested under field conditions.

12. Time of cotton planting is very important in order that the crop isrenewed in time to ensure that wheat is planted at the optimum time in November.Also, trials indicate that cotton planted before mid-May significantly outyieldslater planted crops.

13. Planting densities do not appear to show significant differences.It is recommended that the planting density be 55,000 - 65,000 plants/ha --on a basis of one plant per hole.

14. To date, cotton varieties have shown no significant response tofertilizer. Indications are that yields could be maintained for 5 - 10 yearswithout fertilizer, but without continuous cultivation trials no definiterecommendation can be made at this tire.

15. Due to the present low incidence of pests at Bol, experiments oninsect control have not been carried out. However, since pests would undoubt-edly build up as the project expands, precautionary measures would be taken.Spraying would commence at six weeks after planting and continue at 10-day:intervals for up to 10 sprays, depending on the results of pest scouting.The main pest is currently Pink bollworm (Platyedra gossy Piolla).

16. Irrigation trials on cotton indicate that 750 3 is required forpreirrigation, f3llowed by up to *10 irrigations of 750 m each at 7 - 10 dayintervals (800 m total). Under Bol conditions, the polder water table fluc-tuates about 2 m, and this would make it possible to reduce the number ofirrigations when the water table is higher, assuming that cotton is plantedearly enough for the cotton roots to grow quickly down to the water table;this makes it possible that the number of irrigations for cotton be reducedto about six.

ANNEX 3Page 5

Wheat

17. According to varietal trials, the Mexican variety Penjamo 62 out-yields most other wheats tested at the Matafo station (4,000 kg/ha). Dambata,another Mexican variety, has good potential. Yields are very sensitive totime of planting. Trials indicate that planting is best carried out duringthe first two weeks of November, and should on no account be delayed beyondNovember 21; thereafter, yields decline at a significant rate of 500 kg/haper week.

18. Other trials involving fertilizer, planting density and irrigationshow no response to phosphate; 90 kg of P20 /ha gave no significant response;however, 100 kg of urea and 200 kg of triplé superphosphate raised yields by900 kg/ha; and, at present day food and fertilizer prices, this is economic.Trials did not indicate any significant yield differences due to plantingdensities. The best results were obtaieed at 75 and 100 kg of seed per hec-tare. Irrigation trials indicate 750 m of preirrigation, and thereafterat 7 - 30 day frequency, gave the best response; a total delivery of about6,600 m is required.

Maize

19. M4aize research, limited so far, has been directed towards time ofplanting and response to fertilizer. Results to date indicate optimum plant-ing dates as mid-June, and that N and P20 applications do not show markedyield improvements. Average yields are aà 2,500 kg/ha. Trials to testpossible deficiencies in sulphur, magnesium and zinc should be undertaken.Given the climatic conditions at Bol, yields of over 6,000 kg/ha should beobtainable.

Crop Rotations

20. Studies have not been undertaken on crop rotations. During thefirst 5 years of the project, a cotton/wheat rotation can be followed with-out significant reduction in yields. However, for the long term, a rotationmust be found that would keep the soil in reasonable equilibrium. If signifi-cant improvement in maize yields can be achieved, cotton could be replacedby maize. Eventually, it may be necessary to have a complete fallow, or aleguminous fodder crop.

D. Cultural Recommendations

21. Several recommendations for wheat and cotton can be made in thelight of research results to date: These recommendations will have to beamended annually, however, as new research, technical and economic datainfluence production.

ANNEX 3Page 6

Cotton

Time of planting April 20 - May 15.Harvesting completed September 21 - October 31.

Planting density 50,000 - 60,000 plants/ha(1 plant per hole).

Seed 25 kg/ha acid delinted.

Fertilizer nil.Spraying ULV /1 3 1/ha minimum 6 sprays at 10 day

intervals. First spraying 40 days afterplanting. 3

Irrigation preirri§ation 750 m up to 10 irrigations 3750 m each at 10 day intervals (8,000 mtotal).

Yield 2,500 kg/ha.

Wheat

Time of planting November 1 - November 21.Time of harvesting 3rd week of February to end of March.Seed 80 kg/ha.Fertilizer 45 kg P O5 /ha.

45 kg Nîha. 3Irrigation 1 preir5igation 750 m min. 8 irrigations

750 m per irrigat on at 7 - 10 dayintervals (6,600 m total).

Yield 2,500 kg/ha.

/1 Ultra-low-volume spraying (ULV) is a technique used more frequently inrecent years. At Bol, spraying would have to be carried out very earlyin the morning or in the late afternoon when wind speeds are less than6 m/s and when it is cool enough to prevent immediate evaporation ofthe minute spray droplets. If the evaporation rate is too high, ULV willhave to be replaced by conventional high-volume spraying techniques.

E. Crop Production System

22. To maximize the benefi.s to the local farming community, and tominimize the cost of farming, the principle has been retained that the projectpolders would be settled by individual farmers, each cultivating 1 ha, assuming2.8 adults in the farm family. 'me large-scale plantation approach was re-jected, as it would require scarce management talents and costly mechanization,and would in any event have a lesser impact on the local farming community.

ANNEX 3Page 7

23. The proposed irrigation program including the development of Mamdipolder assumes that 2,800 farmers would acquire land over the period 1976-83.Problems involving recruitment of farmers and settlement could slow down thedevelopment rate. Furthermore, there are bound to be technical and pedolo-gical limitations in the first years of cultivation. To ease the way forsettlement it is proposed to form a Commercial Agricultural DevelopmentSection under the Project Unit; this Commercial Section would be responsiblefor the first year of production in any given area; thereafter, the areawould be settled. This Commercial Section would act as a land developmentagency, and would be responsible for the first year of operations on allnewly developed land (about 400 ha/annum), and for the basic cultivationsduring the following year, which would be the first year of settlement. Inthe latter case, the Commercial Section would clear, disc, and plant a cottonand a wheat crop, thus giving the new settler a better chance to settle downand to learn the new techniques that will be demanded of him.

24. Selection of settlers and land allocation would be done by thePrefecture du Lac administration in concert with the project. The applicantswould be selected on the following criteria: (a) number of people in thefamily; (b) how much time they spend on agriculture; and (c) ownership ofbullocks. At first only those farmers whose sole activity is agriculturewould be considered. Those farmers already living along Guini and Berimpolders and cultivating on the polders would be given priority for landallocation.

25. Legal ownership of the polders is vested in the Republic of Chad(decree of August 1, 1967). A new ordinance would be required to:

(a) confirm the national and public character of the polders;

(b) mandate SODELAC as lessor of the improved land; and

(c) approve the rental procedures to be used for the settlers.

Plots would be rented to settlers for a three year period. Repossessionwould occur if farmers did not comply with the terms of their lease, whichwould stipulate their financial and general obligations. Among these, thesettlers would agree to:

(a) cultivate their plots in a continuous, total and rationalmanner;

(b) follow extension agents' advice;

(c) comply with the irrigation system, in particular the rotationof water application;

(d) cultivate with their own family labor; and

(e) pay all financial charges.

ANNEX 3Page 8

A renewable three year lease wouAd give holders a satisfactory security oftenure, and would permit the project to make changes necessary in the generalinterest, i.e., change of plot slze or exchange of plots. Such flexibilityis essential in the early years of the project. The three year period couldbe lengthened when both management and settlers had ironed their teethingtroubles inevitable in a project of this type.

The Smallholder

26. After his first year of operation, the smallholder would receive nomechanical assistance. He would divide his year into a 5-6 month wheat seasonand a 6-7 month cotton season. His peak labor requirements would be in theperiod mid-September to mid-November - a time when he harvests his cotton,and cultivates and plants the same land to wheat. He would use limited amountsof fertilizer on his wheat and none at all on his cotton. He would use nochemical herbicides, but would protect his cotton with ULV equipment usinga triple mix insecticide of DDT, endrine and endosulphan. He would irrigatehis land by furrow irrigation techniques and would harvest both his cottonand wheat by hand. He would be able to use the project wheat thrashers ifhe so desired. The project would assist him by providing credit for thepurchase of seeds and other seasonal inputs. It would encourage him to investin ox drawn equipment and would provide him credit to do so. Most importantly,the project would provide him with effective extension advice. An averagefarm budget is at Table 2, and estimated farm labor requirements at Table 3.

27. There would be two recruitment periods for settlers, with thelatest dates of occupancy being October 31 and March 31 respectively. Theincoming settlers would be directed to pre-located village sites that wouldconsist of no more than a project provided well. The settlers would be ex-pected to find their own way to the scheme using local camels and donkeys fortransporting their very limited household effects. Once on site the settlersvould construct the typical millet stalk house - later to be replaced by mud.Although the settler would not have to plough or plant during his first yearof occupancy, thus enabling him to set up his home, he would have to be onsite early enough to at least understand and follow the two basic culturaloperations, cotton and wheat. The project would provide each settler with500 kg of grain (in loan form to be repaid over 2 years) to enable him tosurvive the first half year of occupancy prior to his harvesting of his ownf'ood crops, i.e. a Marci settler would in September harvest millet grown onthe dunes and maize grown in his allocated polder garden. The October settlerwculd in February harvest wheat from his main polder lot and possibly maizef'rom his polder garden.

Extension Service

28. Once settled the settler would come under the control of the exten-sion staff who would assess his assets, oxen, ploughs, tools, etc. and advisehim of additional needs and equipment. He would be expected to attend veryshort (3-4 days) training courses to orientate him to the new techniques and

ANNEX 3Page 9

crops that he would encounter. Thereafter, his training would be given mainlyin the field on his own holding. The extension staff would be divided intothree sections: 1 at Guini and 2 at Berim. Each section would be located at aservice center controlled by a Section Officer. The Section Officer would beassisted by farm instructors at a rate of 1 to 30 farmers in the first year offarmer settlement reducing to 1 to 100 farmers from the 3rd year onwards. TheSection Officer and farm instructors would be responsible for the extensionneeds of the farmer, for distribution of credit in kind, for the collectionof credit repayment and for the initial assembly of marketable crops. A SeniorTechnical Officer would have overall responsibility for operating and controll-ing the extension service. Training of the extension agents would be a jointresponsibility of the extension and research staff and would be conducted atthe Matafo Research Station.

Service Centers

29. The three Service Centers would be the key to farmer servicing.Each center would comprise a 500 m3 warehouse for the storage of fertilizers,insecticides and farm equipment. Within the store would be incorporated asmall office for Service Center staff. The Center would be located on a 1 hasite and would be surrounded by security fence. Initially one 10 x 30 m plinthwould be constructed for the storage of wheat. The Section Officer would livein the vicinity of the store. The farm instructors would live in the villages.The Service Centers would act as centers of initial assembly prior to SODELACmarketing the crop.

SODELAC Commercial Unit

30. This Unit would comprise sufficient staff and equipment to efficientlyhandle the rather difficult and sometimes unforeseen problems of the first yearof land development. The Unit would be mechanized and would rely on a constantlabor force supplemented at the time of the cotton harvest, which would bepicked by hand, by casual labor - mainly from Mao prefecture. The CommercialUnit would also provide the first year ploughing and planting services to newfarmers, and would be responsible for storage of farm inputs and the storageof cotton and grains until shipped out of the. project area. Staffing andequipment of the Commercial Unit are at Annex 7. Upon project completion,the remaining usable life for the Commercial Unit equipment would be about50%, and this equipment would be used for the agricultural development ofMamdi polder or any other polder.

31. For the sake of simplicity, it is assumed for the first phase ofthe project that all yields -- smallholder and Commercial Unit -- would be thesame. Cotton research yields are from 4,000-4,500 kg/ha. The farmer trialin 1972 resulted in an average yield of 3,500 kg/ha from 30 ha. Project yieldsare estimated at 55-60% of research results and are placed at 2,500 kg/lia forcotton and 2,500 kg/ha for wheat. Total annual project generated productionfor wheat and cotton is at Table 1.

AMi'EX 3Page 10

Cotton Seed

Maximum requirement: 100 tons cotton seed (1983)

Seed SeedSown Seed cotton produ Cd Required For

State Location Area h aield kgha tons tons stage

A IRCT breeder nucleus 0.10 4500 0.27 0.12 BB SODELAC - Matafo 2.0 4000 4.80 2.25 CC SODELAC - Commercial

Unit 75.0 2500 L12.50 / 80.70 DD Project Area 2520.0 2500 3780.0 / 80.70 D

Wheat Seed Tons

1976 1977 1978 1979 1980 1981 1982 1983 1984

Seed sown j 12 42 74 1C6 138 170 202 215 215New seed required 12 30 32 44 62 64 76 75 7,2Area for seedproduction _V (ha) 20 21 29 41 43 51 50 50 50]3reeders' seed 5/(tons) 1.6 1.'7 2.3 3.3 3.4 4.1 4.0 4.0 4.oMatafo breeders'plot 6/ (ha) 1.1 1.5 2.2 2.3 2.7 2.7 2.7 2.7 2.7

S ummnary

Matafo breeders plotrounded (ha) 2 2 3 3 3 3 3 3 3

Coommercial Unitrounded (ha) 20 30 30 50 50 60 60 60 60

Thus, for the seed multiplication of cotton and wheat, Matafo would require amaximum of 5 ha for production of breeders' seed, leaving 15 ha for otherresearch purposes. The CommerciaL Unit would requLire 135 ha for seed multi-plication purposes, leaving 265 ha for straight ccnmmercial wheat and cottonproduction.

Ll Useable seed outturn 6qY of seed cotton2/ Surplus available for extended scheme or for 'ivestock feed

3/ Based on replacement seed every third year

4/ Based on 2,500 kg/ha, of which 1,500 kg/ha is screened for seed.

SODELAC Commercial Unit

'/ At 80 kg/ha

6/ At 1,500 kg/ha useable screened seed

ANNEX 3CEAD T-able 1

LAKE CHAD POLDERS PROJECT

Agricultural Development

Crvp Production

1977 1978 1979 1980 1981 1982 1983

Catton Area (Ha)

Settlers lst year - 200 200 250 300 200 -2nd year and after - - 200 400 650 950 1150

Experimental Farm 20 20 20 20 20 20 20Project Unit - 50 250 400 200 - -

Total Cotton Area 20 270 670 1070 1170 1170 1170

Wheat Area (Ha)

Settlers lst year - 300 200 250 400 - -2nd year and after - 300 500 750 1150 1150

Experimental Farm 20 20 20 20 20 20 20Project Unit 30 200 400 400 - -

Total Wheat Area 50 520 920 1170 1170 1170 1170

Cotton Produiction (tons) 1/

Settlers - 500 1000 1625 2375 2875 2875Experimental Farm 90 90 90 90 90 90 90Project Unit - 125 625 1000 500 - _

Total Seed Cotton Production 90 715 1715 2715 2965 2965 2965

Wheat Production (tons) 2/

Settlers - 750 1250 1875 2875 2875 2875Experimental Farm 80 80 80 80 80 80 80Project Unit 75 500 1000 1000 - - -

Total Wheat Production 155 1330 2330 2955 2955 2955 2955

Farmers Wbeat Consumption 3/ - (200) (250) (375) (575) (575) (575)

Total Net Wheat Sales 155 1130 2080 2580 2380 2380 2380

1/ Seed cotton yields Experimental Farm 4500 Kg/HaSettlers 2500 Kg/HaProject Unit 2500 Kg Ha

2/ Wheat yields Experimental Farm 4000 Kg/HaSettlers 2500 Kg/HaProject Unit 2500 Kg/Ha

3/ 500 Kg/Ha

CHAD

LAKE CHAD POLDERS PROJECT

Agricultural Development

Settlement Farmer Gross Income 1/

*--------------- Without Project .................... .................... Under Project....................Price Area Yield Value Price Area Yield Value

Dune Cultivation - Millet CFAF25/Kg 1.3 Ha 600 Kg/Ha 19,500 CFAF25/Kg 1.3 Ha 600 Kg/Ha 19,500Polder Cultivation - Wheat CFAF50/Kg 0.075 1,500 Kg/Ha 5,600 CFAF5O./Kg 1.0 Ha 2,500 Kg/Ha 125,000

- Maize CFAF20/Kg 0.075 1,500 Kg/Ha 2,300 CFAF20/Kg -- Seed Cotton CFAF53/Kg - - CFAF53/Kg 1.0 Ha 2.500 Kg/Ha 132,500

Sub-Total 27,400 277,000

Livestock Production 5.500 5,500

Total Production Income 1/ 32,900 282,500

1/ Does not include Polder Gardens, the production of which would be substantial but is not quantifiable at this time

j-. lk

CR8,D

LARE CHAD POLDERS PROJICT

Agic-lts1ral LDnelnpeerst

Ssttlseeat FPren- Budget nd Cash Flu.

(CIAF '000)

B ef or -s- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --- Under Pro j ect - -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - --_--_--_--_--_--_--_--_--_--_--_--_--_--_--_P,o,ect Seat I Yeat 2 Yean 3 Yeat 4 YSea 5 Yeat 6 Yeat 7 Av Seage

predeotiot interne 32,900 282,500 282,500 282,500 282,500 282,500 282,500 282,500 '8',500Credit rece-ivd

Fater's en estnent 24,400 35,000 - 7,400 - - 42,400 15,700F=reer's seseneal reqaireLnet6 - 63.500 67 900 67.900 67.900 00 62.900 67.900 67.300

TStai Iefleun 32,900 370,400 385,400 350,400 357,800 350,400 350,400 392,800 365,500........ _..._ . .. _.... w =={sS =aS=St= = =z== = = = = = = = = = = = = = = = = == = = = = = = = = = = = = = = = = =

II. Outfleows

Fat-ers investment

GCaie fot fend 1/ - 17,000 17,000 17,000 17,000 17,000 i7,000 17,000 17,000Spraye,400 - 7,400 7,400 3,200Coltivaten & aîtatkeehnts 2/ - - 9,500 - - _ 9,500 2,800Seader 2/ . 6,400 . - - 6,400 1,ô00Crst 3/ - - 8,500 - - - 8,500 2,h00C-s 2/ , 10.600 - - - 10,600 3.100

Toara P -retts In teetteert 24,400 52,000 17,000 24,400 17,000 17,000 59,400 30.300

Fa-rneet OpetatieR Casts

Perkhase of -ttee eeede 4' - 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900Purchase of w theat sede 0/ - 5,200 5,200 5,200 5,200 5,200 5,200 5,200 5,200M!erhaaleaî 1usd preparation c-tton 6/ - 2,500 - - - _ - 300Maehaeie 1 pla-ting enttrn 1/ - 1,300 - - - - 200

tchmnital îaad prepara jtion ehu e/ - 4,500 - -- - _ bOMlethaeital planting huA-t 9' - 1,300 - - _ _ 70)Pest control oteton 10/ - 35,000 35,000 35 000 35,000 35,000 35,000 35,000 35,000Ferrtili-r for uhe-t 11/ - - 14,000 14,000 14,000 14,000 14,000 14,000 14,000Th,ashing uheet 12/ - 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000Paeeaeg nareriEain - sasaht 13/ - 4 900 4,900 4,90 4,9 4,900 4,900Parking mareCiaîe - cttre - 5.800 5 800 .800 0.800 5.S00 5.800 5.800 5.800

Tatri a1eeee Opeartiag Caste - 63,600 68,000 68,000 68,000 68,000 68,000 65,000 69,300

Debt Sen-ira ne C-edit Retei-sd

e ienestner. 15/ - 6,500 15,700 10,700 17,800 17,800 11,200 11,200 13,250Fatsrrne eesenaî . eq.i.eent1s 15! - 6.400 6.800 6.800 6.800 6.800 0,800 6,B0O b07n

Tetai Dehb Sennite - 12.900 22.500 22.500 24,600 24.600 18.000 18 ,001 L0,400

Total Oatfle-s ptite te Warte Charge - 100,900 142,500 107,500 117,000 109,600 l03,000 145,400 120,000

Net Cash Rira. prier t Wataer Changes 32,900 269,500 242,900 242,900 240,800 240,800 247,400 247,400 245,500

Wat- Charge b' - 130 070 130n non 100 L00 1308000 130,00 1C300 130 50 lin 050

et .ash Flo- 32,900 139,500 112,900 112,900 110,8û0 110,800 117,400 117,400 I15,00

Set-dave tenkué - Irrlgerine 93 364 364 364 364 364 364 364 364`lillet Calotte-i-n '25 25 25 25 25 25 25 25 25

eT-al Mer-Jane worked 118 389 389 389 389 389 389 389 389

Set Cash Flot pan Man-day -erked (CFAF) 279 359 290 290 285 285 302 302 207

1/ 500 kghsettle. 10/ 8 sprays @ 3 1/spray t CFAF 1,500/1,2' shaned heteece 3 Ca -ers. inclading battery tant et sprayer,3/ ahse-d between 5 tannera. , 45 kg N + 45 kg P205.4! 25 kg/ha a CFAF 53/kg. 12/ using taatirie.y rsbiJee 0.3 hanr/haS/ 80 kg/ha @ CFAF 53/kg 13/ 500 kg ate e-esaed by the faruet6/ S.houns <i CFA8 1,300/h-or 14/ napaid -en S yea-s @ 1071 inserest -te7/ 1 hanr *0 CFAF 1,300/huer. 15/ 10/ / yea.8/ 3, hkare d CFAF 1,300/hour, 16/ CFAF 74,000/ha (OM) ard CFAF 16,000/ha (tapitai).8/ I hou a CFAF 1,300/hun.

ANNEX 3Table 4

CHAD

LÂKE CHAD POLDERS PROJECT

Agricult.ral Development

Labor Requirements - Man-days

Jan Feb March April May June July Aug Sept Oct Nov Dec Total

1 ha Cotton

Land Preparation - - - 12 - - - - - - - - 12

Cultivating - - - 2 2 - - - - - - - 4

Bundinig - - - - 3 - - - - - - - 3

Preirrigation - - - - 2 - - - - - - - 2

Planting - - - - 2 - - - - - - - 2

Thinning - - 7 - - - - - - 7

Weeding - - - - 8 8 8 - - - - - 24

Insect Control - - - - 1 2 1 1 - - - - 5

Irrigation - 6 6 6 6 - - - - 24

Harvesting - -- - 20 60 40 - - 120

Renoval of Roots - - - - - - - - - 17 - - 17

220

1 ha Wheat

Land Preparation - - - - - - - - - - 20. - 20

Bunding - - - - - - - - - - 6 - 6

Preirrigation - - - - - - - - - - 3 - 3

Planting - - - - - - - - - - d - 8

Weeding 20 - - - - _ _ _ _ _ - 20 40

Irrigation 9 6 - - - - - - - - 3 9 27

Harvesting - - 12 - - - - - - - - - 12

Thrashing - - 3 - -

119

Mi'let - - - - - 7 4 h 5 5 - - 25

Total 29 6 15 1h 31 23 19 31 65 62 40 29 364

Hypothetical Total 70 70 70 70 70 70 70 70 70 70 70 70 840

Balance for Polder GardenMarke ting etc. 41 64 55 56 39 47 51 39 5 8 30 41 476

ANNEX 4

CHAD

LAKE CHAD POLDERS PROJECT

Societe de Developpement du Lac(SODELAC)

Statutes

1. Societe de Developpement du Lac (SODELAC) was created in August 1967--Ordonnance 22--to carry out projects in the "Prefecture du Lac"; it tookover services already provided to farmers by another Government agency, theSemable, which was then discontinued. SODELAC has share capital of CFAF 180million, 95% owned by the Government. Its statutes give it broad powers toconceive programs in the spheres of rural, industrial or social development,and to provide extension, credit and marketing services to farmers. ThePresident is appointed by the President of the Republic. SODELAC is underthe general supervision of the Minister for "Amenagement du Territoire".Although basically SODELAC has a high degree of autonomy, Government hascontrol over SODELAC's operations through its "Commissaire du Gouvernement"and "Controlleur du Gouvernement". These officials may veto proposed actionsby SODELAC, but the veto expires if within a fixed period, it is not upheldby the Minister. SODELAC has all thé autonomy necessary to carry out itsstatutory functions.

Activities

2. SODELAC presently carries out three types of activities:

(a) Irrigated Development: providing extension, credit andmarketing services to those 19,000 farm families,practice traditional shadoof irrigation in polders alongthe lake shore. In the recent period of rainfall deficitsand low lake-water levels, some farmers have abandonedthese activities as water tables fell too low to permitlifting water with traditional equipment. The area culti-vated with wheat is estimated to have varied as follows:3,000 ha in 1970/71, 2,500 ha in 1971/72, 3,500 in 1972/73,and 2,600 ha in 1973/74. The resulting wheat crop marketedby SODELAC decreased from 1,300 tons in 1970/71 to 150 tonsin 1973/74, as most wheat was consumed locally. Since 1970,SODELAC has also supervised construction of the irrigationwater intake in Guini polder, operation of the MatafoAgricultural Research Station, and execution of the feasi-bility study for the project appraised in the report.

ANNEX 4Page 2

(b) Rainfed Development: very limited activities are centeredaround N'Gouri from whicLh SODELAC markets small quantitiesof gum arabic grown on the dunes (6 tons in 1972/73 and 4tons in 1973/74).

(c) Other: various extraneous activities, such as use of cor-poration vehicles for general transportation purposes,marketing of dry fish, management of Bol Restaurant andLodge, construction of refrigerated rooms at N'DjamenaAirport for storage of potatoes grown in the polders, andthe Air-Tchad Agency at Bol. These activities have re-sulted in a dispersion of SODELAC's management efforts,and have contributed to its financial losses.

Organization

3. Headquarters are at N'Djamena, where the President of the Corporationresides together with two expatriate technical assistants and supporting officestaff. Twenty-one agricultural agents from the Civil Service are posted tothe two field branches of Bol and N'Gouri, and 22 additional agents are employedunder contract. Three expatriate technical assistants are employed at Bol(two at the Mlatafo Research Station, and one at the Corporation's workshop).Given its very limited activities SODELAC is overstaffed. Headquarters wouldbe better situated at Bol where SODELAC's activities are concentrated.

Overall Financial Position

4. SODELAC's income statements (Table 1) as of June 30, 1973, showcumulative losses of about CFAF 22:3 million and Government subsidies ofCFAF 142 million. Losses would have been even greater if SODELAC's accountsincluded the salaries of seconded civil servants and expatriate staff. Inorder to reduce those losses, a number of steps should be taken:

(a) SODELAC should introduce a cost-accounting system thatwould discriminate between those activities which shouldbe conducted with a profit motive -- i.e., marketing,and distribution of credit -- and those which are infact more of a social nature, i.e., provision ofextension services to farmers.

(b) SODELAC should eliminate all commercial activities whichare not profitable, i.e., marketing of dry fish and gumarabic, and of the wheat grown far from the collectioncenters of Bol and N'Gouri and requiring excessivetransport costs. SODELAC should also trim its payrolland move its headquarters to Bol.

AN'4EX 4Page 3

(c) Government should subsidize those activities which arenot commercial in nature. An annual subeidy of CFAF20-30 million may be sufficient once cost-saving measureshave been introduced. This subsidy woulc be in additionto Governnent costs in paying the salaries of civilservant and expatriate personnel secondec to SODELAC.

Present Financial Position

5. At present, SODELAC is in a state of virtual bankruptcy, as it isnot able to pay its suppliers. In October 1974, it owed some CFAF 20 millionin past due bills to private suppliers. This insoivency could be removed by

Government paying in its outstanding capital subscription of CFAF 20 million.(Government subscribed CFAF 171 million in share capital and paid CFAF 151million), and by Government paying to SODELAC the subsidy of CFAF 30 millionthat was budgeted for payment to SODELAC in 1973/7z.

CHAD

LAKE CHAD POLDERS PROJECT

Société de Développement du Lacit Junce 30 ^ (SODELÂC)

(t:hF 'OCF ) Incomre Statements

196'/68 1968/69 1969/70 1970/71 1971/72 1972/73 1973/74estimate

Sale of produce - 12,584 11,906 20,126 6,156 10,293 27,4ëb

staff salaries 5,675 13,714 14,91 15,076 17,268 15,926 15,280taxes 787 1,083 851 714 941 1,944 2,810cost of goods 8,964 19,740 24,478 22,885 35,777 41,059 34,850transportation 8,574 7,362 6,405 1,692 3,349 2,940 1,590adrninistr-tion 688 1,118 2,111 2,399 3,u24 2,551 2,671finance charges 369 510 183 17 107 959 650

25,057 43,527 48,944 42,783 -61,266 65, 409 57,850

Operating Losses (25,057) (30,943) (37,038) (22,657) (55,080) (55,116) (30,362)

K3.X&Rioti nal Ioss0s or Profits (4o) (2,503) 9,793 (2,423) (672) (1,512) (1,856)

Total Losses (25,097) (33,446) (27,245) (25,080) (55,752) (56,628) (32,218)

Cumulated Iosses (25,097) (58,543) (85,788) (110,868) (166,620) (223,248) (255,466)

Government Subsidy 10,000 20,000 42,000 31,000 31,000 7,749

Cumulative Subsidy 10,000 30,000 72,000 103,000 134,000 141,749

(D~

ANNEX 5Page l

CRAD

LAKE CHAD POLDERS PROJECT

Irrigation Works

I. General

1.1 The principle adopted for the project is gravity irrigation from thelake and collective drainage. This choice was made after consideration ofother alternatives, i.e.:

(a) improvement of traditional irrigation through partialmechanization of the shadoof method;

(b) stabilization of the water table and subirrigation asproposed by the consultants, SOGETHA, in their 1964feasibility study; and

(c) pumping from the water table and collective drainageas studied by USAID in 1974.

These other alternatives were rejected for two main reasons:

(a) improvement of traditional irrigation and subirrigationdoes not solve the problem of progressive salinization ofthe polders but, on the contrary, increases it; and

(b) the USAID scheme has not been sufficiently tested.

1.2 Gravity irrigation was proposed by SCET, consultants, who haddesigned, supervised, and operated such a system already built on Guinipolder. In this system, the irrigation water comes from the lake and flowsby gravity into an irrigation system extending to all parts of the polder.The underground water table is maintained below 1.2 m from the surface throughcontinuous draining. The drainage system is collective, with the drainedwater being pumped out of the polders into the lake far from the polder waterintakes. This method provides complete water control and separation ofirrigation and drainage waters. As its main advantage, the method does theleast amount of damage to the soils; the water has the lowest possiblesalinity content; there is continuous leaching of the salt brought by theirrigation water, and capillary rise is reduced. Other advantages include:elimination of pumping for irrigation, complete water control, and suitabilityfor large-scale development of the polder. The disadvantages are its rela-tively high investment cost and it is necessary to have expert managementto operate the scheme.

ANNEX 5Page 2

11.3 All polders have essentïally the same physical characteristics (sameelevation at the bottom, and the same narrow form with a width averaging about().8 km), and as gravity irrigation is not possible over a distance of morethan 5 km, the polders are divided into areas of some 400 ha each (5 km x0.8 km), all equipped with a water intake and an independent irrigationnetwork.

1.4 Water intakes. The intakes from the lake are located where dikesare at their narrowest. The intakes are composed of concrete box culvertsetquipped with a downstream constant level gate and bulkheads. The intakescan be shut if necessary. The intakes are built so that the water level is1.1 m above the polder bottom at the intake to allow gravity flow, but thebox culverts are low enough to make pumping possible if the lake water levelf'alls below the level at which gravity irrigation is no longer possible.Capacity of water intakes would be 2.5 1/s/ha (Annex 6). The irrigationnetwork includes concrete-lined primary canals, polyvinyl chloride (PVC)secondary pipes and field outlets.

1.5 Primary canals. Primary canals would be constructed along one sideof the polder in a concrete-lined rectangular section. Concrete-lining wouldbe about 10 cm thick. The slope in the canals is small (about 5 cm/km). Thecanals would deliver a peak flow of 2.5 1/s/ha. The water level in theprimaries would be regulated by the downstream constant level gate andcannot vary more than 0.3 m as greater variations would result in excessiveflow in the PVC pipes.

1.6 PVC pipes. The secondary distribution system would be PVC pipes.The choice of PVC pipes meets the constraints of impermeability and flexibi-lity. As polder soils are very permeable (Annex 2), the secondary distribu-tion system must be made with impervious materials. Other alternatives toPVC pipes would be concrete-lined or plastic-lined earth ditches. Concrete-lining has been eliminated as experience on Guini polder has shown thatconcrete-lined secondaries break up when polder soils settle when soils arealternatively wet and dry. Plastic lining would not last long given the harshcLimatic conditions prevailing in the polders. PVC pipes also eliminate theneed for primaries on both sides of the polders as PVC pipes would cross tothe other side of the polders below the collector drains, and the PVC pipealternative is therefore cheaper. PVC pipes would be laid down at a depthvarying between 0.8 m and 1.2 m, and water pressure in the pipes would be low.Piipes would be connected to the primaries through communication pits.

1.7 Field outlets. Outlets would be of iron and equipped with a gatevalve. Each outlet (capacity 30 1/s) would irrigate 6 ha, and there wouldbe two outlets per "quartier hydraulique" (Annex 6).

1.8 Drainage collectors are open ditches with slopes 1:1 at an averagedepth of 1.8 m. They would follow the polders lowest points, usually runninglengthwise along the center of the polders. Secondary drains do not appear

ANNEX 5Page 3

to be necessary given the soils permeability, but drain connections into theprimaries will be built to handle secondary dràins, if these are required lateron. Earth removed to dig the collectors would be used to make 6 m wide ser-vice roads along the collectors. Collectors would be designed to maintainthe water table below 1.2 m from the surface and at a capacity of 1.25 l/s/ha.

1.9 Drainage pumping station. The pumping station would dispose ofdrained water outside of the polder. It would be located at the lowest pointin the polder. The location of the station in Berim polder is such thatdrained water will be rejected into Mamdi. When Mamdi is developed, a commonstation for Berim and Mamdi would be built. The capacity of the pumpingstation is the same as for the drainage collectors (1.25 l/s/ha). Equipmentand machinery at the station include an intake, an outlet, and diesel pumps.Civil works include a concrete frame covered with asbestos-cement roofing.

1.10 Roads. The project includes access roads to link the polders to Boland service roads inside the polders. The latter are subdivided into mannand secondary roads. The main roads are built along the collectors, thesecondary roads along the PVC pipes.

1.11 Land levelling. Polder bottoms are very flat, but some land level-ling will still be required on some 20% of the area.

II. Guini Polder

2.1 Guini polder is located about 3 km north of Bol, its gross area is520 ha and its net area 370 ha. The polder has a narrow shape (length: 6 kmand width: 0.9 km). The polder was isolated from the lake in 1951 by con-struction of one dike, and was dried naturally. Development works startedin 1969, but the full polder development was not completed for lack offinancing.

2.2 Existing works include:

(a) the water intake in the dike built in 1951. Its capacityis slightly less than that proposed for Berim intakes(2 1/s/ha versus 2.5 1/s/ha) and its flow is therefore0.75 m3/s (2 x 370 ha). Its height will allow gravityirrigation nine years in ten only. Berim intakes willbe built lower so that gravity irrigation is possible96 years out of a hunered (Annex 6). A pump will beinstalled at the intake to irrigate by pumping whengravity irrigation is not possible. It is more econo-mical to pump than to build a new and lower intake;

AÂNNEX 5Page 4

(b) an irrigation network for 70 ha. The network is in thecenter of the polder. It includes a primary canal alongthe Western side of the polder, a siphon across thepolder and a network of open ditch secondary canals.All canals are concrete-lined. Secondaries, and to alesser extent primaries, were broken up when the soilsettled in the period of extreme drought in 1972/73;

(c) a drainage collector for the 70 ha irrigation network.This collector will be extended to serve the entirepolder;

(d) the drainage pumping station. The collector drain endsat the pumping station located at the northern tip of thepolder. The station is equipped to drain all of th polder area. Its capacity is overdesigned at 1.2 m Iscorresponding to a theoretical flow of 3.25 i/s/ha(instead of 2.4 l/s/ha required);

(e) service roads. Some 4 km of service roads have beencompleted or 30% of all service roads required.

x;.3 Works to be executed. The project includes financing of repairsCor thosu works which would be kept, and additional works include:

(a) construction of pumping facilities at the intake;

(b) construction of 3.3 km of primary canals along thewestern side;

(c) installation of 15.2 km of PVC pipes on all polder area;

(d) construction of 2 km of main drainage collector in thesouthern part of the polder;

(e) construction of 6.5 km of outside access roads linkingthe polder to Bol, and of 15.2 km of service roads(3.2 km main roads, and 12 km secondary roads);

(f) land levelling on some 20% of the polder area.

III. Berim Polder

3.1 Berim polder touches Bol at the southern tip. It is 10 km long,1.1 km wide and has a gross area oI 1,100 ha and a net area of 800 ha. Thepolder was sealed off from the lake by three dikes built in 1954. The dikesaverage some 200 m each. Except for the dikes, which are in good condition,no works have been built on Berim.

ANNEX 5Page 5

3.2 Works to be executed. The irrigation network will be divided intotwo equal parts of some 400 ha each (para 1.3);

(a) the southern intake will be located 0.8 km east of Bol,with a capacity of 1 mJ/s, 400 ha x 2.5 1/s/ha. Thelake water level at the intake will be at 279.6 m forgravity flow. To allow pumping when gravity flow isnot possible, the bottom of the culvert will be builtat 277.5 m;

(b) the northern intake is identical to the southern intakeexcept the box culvert will be some 300 m long, as itwill have to cross the dune separating Berim from Mamdi;

(c) 10.8 km of primary canals. In the northern half of thepolder 6.3 km primary canals will be built along theeastern side of the polder. In the southern half a4.5 km primary will be built along the western side;

(d) 30 km of PVC pipes with field outlets;

(e) 12.5 km of main drainage collectors, 7.1 km in thenorthern half and 4.4 km in the southern half. North andsouth drain collectors will join in a common 1 km maindrain collector leading to the pumping station. Theaverage depth of the collectors will be 2 m;

(f) 1.5 km of access roads and 57.9 km of service roads.The access roads will link Berim to Bol. The insideservice roads include 20.4 km of main roads and 37.5 kmof secondary roads.

ANNEX 5Table I

CHAD

LAKE CHAD POLDERS PROJECT

Irrigation Works Characteristics

Guini B Notes

Area - Gross (ha) 520 1,100Net (ha) 370 800

Shape - Length (L) (km) 6.0 11.01hJidth (1) .km) 0.9 1.0

Ratio L/1 6.7 11.0 Stretched out area

Bottom Altitude (m) 278.5 278.3 Very flat terrain

Water IntakeWater Level (m) 280.5 279.5 a/ a/Irrigation Flow 96 years in 100

Bottom of Intake (m) N.A. 277.5 b/ b/To allow pumping when required

Flow (m 3/s) 0.75 c/ 1.0 c/North c/Existing intake with a 2.0 1/s/ha capacity1.0 d/South d/New intake with a 2.5 1/s/ha capacity

Irrigation Network

Exisating Primaries (km) 1.6Existing Siphon - length (km) 0.9

size (m/m) 635 -

New Primaries (km) 6.3 North3.3 4.5 South

Total 5.8 æ/ 10.8 s/ e/15.6 m/haf/ 13.5 m/ha

Pvc Pipes (km) 15.2 g/ 30.0 h/ £/50.0h/37.5 m/ha

Drainaze Collectors

Exis:ting Collector (km) 4.0New Collector (km) 2,0 7.1 North

6,0 i/ 4.4 South1.0 Common i/16.2 m/ha

12.5 i/ 3/25.6 m/ha

Tracks

Outside Tracks (km) 6.5 1.5Inside Main Tracks 3.2 20.4

Secondary Tracks 12.0 >/ 30.0 1/ k/32 m/ha1/37.5 m/ha

UHiADLAKtE CHAD POLDERS P9OJECT

IRRIGATION WlORiKS

Construction Schedule1975__ _ _ 1976 l_ 1>77 « 1978 Notesf~~~~. 197S s,. ~~~~~~~~~~~~~~~~ 197 N M J ASO0 N D JF MA J J S

4 S 0 N D IJ F m A MJ A S ) N D IJ F H A A S N

Invitation to bid _ |

Bids subnission

Bids awards |

Works by Contractors

Procurement and transport of supplies

Construction: Berim South intake I -__ _

Berim North intake | __ _ _ Berim Drainage station |

Berim small pumping station

Guini small pumping station , -_ _

Works by force account

Procurement and transport of supplies * _

Guini - Primaries W)e3.m 40m/day

PVC pipes and outiets 15,200m 250m/day

Collectors 2,00Qm 20m/day

Tracks 8.00m Land levelling

Berim - Primaries | 4_ __ l 1 _Om/day

PVC pipes and outlets 1 O 250m/day

Collectors } b 11.20em t 30m/dayTracks

|evelliLand levelling| t

ANNEX 6Page 1

CHAD

LAKE CHAD POLDERS PROJECT

Water Supply and Quality, Irrigation Requirements and Drainage

I. Lake Water Levels

1.1 General

Lake Chad is the remainder of a larg inland sea which in ancienttimes extended over an erea of some 350,000 km and drained a catchment areaof about 2.5 million km . The sea was 155 m at its deepest. Its main tribu-taries came from the northern mountains of the Air, Tibesti and Ennedi. Be-tween 5,400 and 4,000 B.C. there was a drastic change in climate throughoutthe region. The rivers from the north dried up and the residual lake wasformed on an elevated portion of the western ridge of the old basin at thepoint of discharge of the Chari River. The lake was only a few meters deep.There have been no drastic changes since that time, only oscillations in thewater levels between 279 m and 286 m. These oscillations fit into cyclicalpatterns of long duration. The present periqd of relative dryness, whichstarted some 200 years ago, is similar to that which prevailed between 1,000and 500 B.C.

1.2 Catchment Area and Tributaries

The present active catchment area extends over some 0.6 million km2south of the lake. This area is drained by the Chari and other minor rivers(El Beid, Yedseram and Komadougou). The Chaîi provides the greater part ofthe lake water supply, of about 50 billion m in an average year, as follows:

Chari River 83%Normal rainfall 10%Other rivers 7%

100%

The Chari'a own catchment area lies for the most part between isohyet 750 m/mand 1,000 m/m. This zone of relatively high rainfall assures the river of afairly constant water supply. It has violent floods and large variationsbetween high floods and low floods. At N'Djamena, high floods occur betweenSeptember and November, and low floods between March and June.

AMNEX 6Page 2

1.3 Hydrological Balance

The lake water levels are determined by two offsetting factors: thewater supply, mainly the Chari discharge; and the water losses, throughevaporation (90%) and seepage out of the area (10%). The lake water levelsare highest from September until January following the Chari's high floods,which precede the rise in the lake water levels by about one to two months.After January, evaporation from the lake is greater than the Chari's dischargeand the lake water levels recede to their lowest point in July-August. Thenormal intra-annual variation is about 0.8 m. In periods of rainfall deficit,as experienced since 1967, the lake water level drops some 0.4 m annually.Conversely, in periods of rainfall surplus the lake water level rises about0.4 m annually. The lake is a reservoir, and its level in a given year isdependent in large part on the levels attained over the preceding four to fiveyears. At present the lake is below the level it reaches in a one year in ahundred frequency. It is estimated that it will take about two years ofnormal rainfall over the lake's catchnent area to raise it to the one yearln ten probability, and four to five years to raise it to its mean level.

1.4 Physical Characteristics

The lake banks have a very slight slope; hence the lake area is verysensitive to changes in lake water levels, as shown below:

Lake water level 279 m 2 282 m 2 285 m 2Area 5,000 km 3 20,000 km 3 30,000 km 3Lake volume 20 billion m 70 billion m 130 billion m

The lake can be divided into three parts. The southern basin (about 40% ofthe lake area) is shallow, with bottoms at elevations of between 278 and 279 m(see map), which is always supplied with water by the Chari's discharge. Thenorthern basin (about 60%) is deeper, with bottoms at 275 to 276 m. This areais separated from the south by a sand barrier 50 km wide and peaking at 279-279.5 m. The only tributary discharging into the northern basin is theKomadougou, whose flow is not sufficient to offset the evaporation takingplace at the northern basin; hence this portion of the lake partially drieswhen the water level in the southern basin drops below 279 m, as occurred in1973. The archipelago, the third portion of the lake and astride both basins,is made up of a large number of long, narrow islands, oriented northeast tosouth, which are the remnants of ancient sand dunes now partly under water.The town of Bol near the project area is separated from the southern basin bya barrier 15 km wide at some places and peaking at 279 to 280 m. Water doesnot flow to the Bol area when the water level of the southern basin is below279 m.

1.5 Lake Water Levels

A meaningful study of lake water levels requires data gathered overa long period so as to take into account the interrelationships which existover any five-year period. Lake Chad's water levels have been measured for

ANNEX 6Page 3

31 years. These measurements have been extended by correlation with othermeasurements, as follows:

(a) Measurements. A water level gauge was put in the southernbasin in 1907 and was read regularly in the periods 1907-08and 1911-19. A water level recorder, placed at Bol in 1953,has kept graphic records since then.

(b) Correlation with Chari high floods. The Chari flows havebeen measured at N'Djamena since 1933, and a correlationof 0.85 has been established between the Chari high-floodlevels and the variations in the maxima of the lake waterlevels.

(c) Comparison with the Nile River. The Chari has been comparedwith the Nile upstream of Assouan. Both rivers have neighbor-ing catchment areas and similar flood patterns. The correla-tion between the high-flood levels of both rivers has beenestablished at 0.72. The Nile flood data at Assouan havebeen kept since 1870.

Lake Chad water level series have been measured or reconstituted throughappropriate correlations over the period 1870-1974. Diaries kept by travel-lers and the oral tradition describing various water levels have confirmed atleast 20 points on the reconstituted series.

1.6 Statistical Interpretation

Table 1 shows the lake water level variations since 1870, with anestimated maximum error of 0.2 m per year. There were four periods:

1870 - 1900 high lake water levels1900 - 1953 alternating high and low levels1953 - 1965 high levels1965 - 1974 low levels

A probability ranking of the expected levels at Bol would be as follows:

Intra-annual Variations in Meters

High Low

One year in 100 - humid 284.9 284.1One year in ten - humid 283.7 282.9Mean 292.3 281.5One year in ten - dry 280.9 280.1One year in 100 - dry 279.8 278.5

ANNEX 6Page 4

If an access channel were dug across the sand barrier which isolates Bolfrom the rest of the lake so as to allow free access of the lake waters toBol, the minimum lake water level at Bol, in a one year in 100 frequency,would be 279.0 m.

II. Groundwater

2.1 There are two groundwater tables: a superficial and deep ground-water table is found below most polders 1/ at a depth averaging less than onemeter. Its level varies with the lake water levels. Much of this water isnot very suitable for irrigation because.

(a) its salinity is much higher (up to 80 times higher) than thelake water (the lake water is highest in salinity in thenorthwestern portion of the Lake Chad area); and

(b) much of it has alkali characteristics (high PH and highpercentage of sodium).

2.2 The risk of salt accumulating through capillarity would be reducedby:

(a) lowering the groundwater below 1.2 m from the surface(below root level); and

(b) leaching through the irrigation process.

2.3 The deep groundwater table, generally found at a depth of some 30 m,is less saline than the superficial groundwater table, but is still consider-ably more saline than the lake water.

III. Water Quality

3.1 The lake water at Bol is classified C1 S1 in the classificationscheme proposed by the US Salinity Laboratory; this is the best category inall respects for irrigation. The electric conductivity (EC) of the lakewater at Bol ranges from 110 to 140 micromhos, indicating a salinity contentof about 70 mg/1 (ppm). It has been assumed that the project irrigationwater would have an average EC of 200 micromhos (about 150 mg/l). This wouldinclude about 1 meg/l of calcium, 0.5 meg/l of magnesium, and 0.6 meg/1 ofsodium, with most of the anion content consisting of bicarbonate.

1/ Polders are areas of lowlands reclaimed from the sea or any other bodyof water by construction of dikes. In the polders the runoff is con-trolled by sluicing or pumping, and the water table is independent ofthe water tables in adjacent areas.

ANNEX 6Page 5

IV. Water Requirements

4.1 Water requirements have been calculated for a wheat-sotton rotation(Table 2). 3Annual gross requirements are estimated at 6,600 m ha for wheatanad 8,000 m /ha for cotton. This a5sumes a 60% overall efficiency. Peakrequirements for cotton are 3,250 lu /ha for the month of June, whichcorresponds to a hypothetical flow of 1.25 1/s/ha, over a 24-hour period.As the average daily irrigation period has been assumed to be 12 hours, theciapacity of the irrigation system has been designed for a 2.5 1/s/ha flow.

4.2 Water requirements are based on the following assumptions:

(a) the useful rainfall for plant growing is 50% of the averagerainfall;

(b) the crop rotation is wheat-cotton, with wheat early plantingswhich give better results than late plantings;

(c) water requirements are those experienced at the MatafoResearch Station;

(d) groundwater can provide 50% of cotton requirements afterthe sixtieth day in the vegetative process; and

(e) the efficiency is 0.6, taking into account losses byinfiltration in the fielcds and in the distribution system.

V. Irrigation Water Application

5.1 The field side capacity (or "main d'eau") corresponds to themaximum discharge that a farmer ca, handle efficiently in irrigating hisland, about 30 l/s, or about 100 m /hour. The continuous discharge is2.5 1/s/ha, thus enabling 12 ha to be irrigated. The 12-ha unit is calleda "quartier hydraulique." The "quartier hydraulique" comprises 12 one-hectarelots, with each lot cultivated by one farmer. The 12 farmers share the "maind'eau" on a rotation basis.

5.2 The choice of the rotation system would be largely up to projectmanagement. A possibility is the irrigation of a one-hectare plot alone for10 hours every 12 days; another is the irrigation of two one-hectare plotssimultaneously for 12 hours every 10 days. The maximum time the "main d'eau"can be applied to one hectare is 10 hours as the total usable r serve of thesoils including an efficiency of 60' is between 850 and 1,000 m /ha.

ANNEX 6Page 6

5.3 The polder soils are so permeable that the irrigation "runs"(length of furrows) cannot exceed 70 meters without undue losses; withfurrows at one-meter spacing, 140 furrows per ha would be required. These

would have to be irrigated in one hour, or slightly more than two furrows per

minute. To make this possible, the farmers may have two sets of five siphons,

each set delivering into a small ditch serving a group of 10 furrows for 10

minutes each.

VI. Lake Water Supply

6.1 There is no problem of water supply availability. The irrigation

water reruirements at the source for §uini and Berim polders would be

14,620 m x 1,170 ha, or 17 million m , which is only 0.003% of the average

annual supply to the lake.

6.2 Given the principle of gravity irrigation and constant downstream

level gate retained for the project, the water intakes must be built at 1.1 m

above the polders' bottom (or at 278.5 m + 1.1 m - 279.6 m), and must ha3ethe capacity to irrigate about 400 ha each (or 2.5 i/s x 400 - about 1 m /s).

The study of the series of 105 years of lake water levels indicates thefollowing probabilities:

96 years in 100 - irrigation by gravity3 years in 100 - pumping required six months for irrigation1 year in 100 - no irrigation possible during four months1 year in 100 - of the year (June - September)

VII. Drainage

7.1 Drainage is required to prevent salt from accumulating on the soilsurface through evaporation or evapotranspiration (Annex 2). The drainagesystem is designed with a capacity sufficient to:

(a) handle water seeping through the dunes;

(b) handle rainfall and irrigation water; and

(c) maintain the groundwater level below 1.2 m from the surfacein order to prevent the water from rising through capillarity.

7.2 The flow of seeping lake water through the dunes has been calculated

for the one in 100 years high lake level frequency and for the month of Augustimmediately preceding that high lake level. The latter verification isnecessary because August is the month of greatest rainfall concentration and

the August rainfall may raise the lake level more than the following year's

ANNEX 6Page 7

normal increase following the Chari River high-flood level. The calculationsfor Berim polder show the flow of water seeping through the dunes to be(a) 0.730 m3/s for the one in 100 years high lake level frequency, and(b) 0.680 m3/s for the month of August. This assumes that Mamdi polder wouldbe dried up. If Mamdi were not dried up, the respective flows would be 0.820anid 0.700 m 3/s.

7.3 Draining must eliminate not only seepage through the dunes but alsoconveyance losses and that fraction of rainfall which is not consumed by thecrops. In January, when the lake water level is highest, gross water require-ments are estimated at 240 mm and conveyance losses at 96 mm (60% efficiency),or 0.287 m3/s for Berim. There are no rains in January. In August, conveyancelosses are 21 mm and 50% of the rainfall, or 71 mm, is unused. The Augusttotal to be eliminated in addition to seepage water is 92 mm, or 0.275 m3/sfor Betim.

7.4 Thus, total drainage requirements for Berim are:

In January: 0.820 m3 /s + 0.287 m3 /s = 1.107 m 3 /sIn August: 0.700 mI /s + 0.275 m /s = 0.975 m /s

Tlhe capacity of the drainage systemi for Berim has been designed for 1.0 m /s,or 1.25 1/s/ha net area. The Guini polder drainage system, which is alreadypartly built, was designed for 3.2 1/s/ha and consequently is over-designed.

7.5 The above calculation of the capacity of the drainage system doesnot include the exceptional one in ten years frequency rainfall of 80 mm in as:Lngle day. This rainfall would raise the water table level by 0.40 m,assuming a 20% aquifer coefficient of storage to 0.80 m below the surfacelevel, which will not cause any daniage to cotton. However, in the case ofexceptional rainfall, water may accumulate in the lower parts of the polders,which again should not damage the cotton crop as at that time cotton canwîthstand a submersion of about teni days.

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m,lv o g | ~~~~~~~I1I* || II St |/1''7 i zà.

CHAD

LAKE CHAD POLDERS PROJECT

Water Supply and Quality; Irrigation Requirements and Drainage

Water Requirements

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Total

Evapotranspiration m/m 179 146 144 142 208 228 227 295 181 148 151 199 2,148

Rainfall (Average) m/m 8 9 69 142 43 9 280

Rainfall used (50%0 m/m 35 71 22 128

Crops and Vegetative Cycle x Wheat x x Coton xfrom

Cultivation Coefficient ETR/ETP 0.6 0.6 1.0 0.75 0.6 0.6 1.0 1.0 0.9

1.0

Water Requirements m/m(ETR + used Rainfall) 72 110 144 71 45 136 195 146 62 981

From Groundwater m/m 73 31 104

Net Irrigation Requirements m/m 72 110 144 71 45 136 195 73 31 877

Gross Irrigation Requirementsm/m (efficiency 0.6) 120 183 240 118 75 227 325 122 52 1,462

m3/ha 1,200 1,830 2,400 1,180 750 2,270 3,250 1,220 520 14,620

1/s/ha 1.25 o

CD 1-

ChAD

LAKE CHASD POLERS PROJ30T

FroPect Co-t .0d Financing

TotAlI ---- ____ __-_ ___ --_ ---- FinAnced BY--------------------------------------------96 1977 1987 1979 1976-1979 CF7 1977 CFS 197 17-]7 ----- IDA----- ----- AFDF -------- -------- THSAID------ ____ FAC----CF o CA7F D00 CFAF 000 CFAF 000 CFAF 000 USE 0o0 COAF 000 00u$ 0D( CrlAF 000 Es$ 000 CFAF 000 00$C7 0 rAF 0OO 01$ 000

Fonrar- t W 155990 52,107 -t 208,000 930 - 208,000 930Force Accormt.E.ppîtes and Equipment Roccicg Goals 89.100 201 .900 105.10 - 695,700 3,090 237 0171) 1,059 361,90). 1s90 96,800 45190qn1pe~~~~~~~~~~~~~~~ce 7~~~~~~~24, -- 124.700 56)) - - 747050 Sooip_ia - Eopaerl28.100 23,100 7,100 63, 240 280 45,000 200 718,300 80- iLocAl 5,200 5,200 1,300 _ 11,700 50 6,800 30 4,900 20Cocoultino Serv4ces 4,200 2,l0)) 1,000 - 7.300 30 4.5))) 20 2,800 10VehOrlea 2,700 _ , 2,700 10 2,100 10 600 -HoreOog 17.900 - - - 17900 80 - - 17.900 80 _

Tota1 Ircigatica Worke Construction 427,8On 389,000 114,00)) - 1,131,300 5,030 295,400 1,310 712,500 3,160 123,40), 56o

Irrle,atton 0

0r6S - SoPervsiaooSaa s q,a tr .Ooff 12,20)) 31,300 2,720, 4,800 70,020 51,800 230 18,700 90L-1LclOaf2,200 4,400 7,500 - 4,100 60 9,000 40 5.100 20Rousing 9,000 - 1,300 - 10,300 50 - - 10,300 50 - _VehicleF 5,400 5,400 20 2,300 10 3,100 10Equipment 1,100 1.100 - - 2,200 10 2.200 10 __________________________________________________-- - -20__20__lo_

Total Orrlgatlen Workg Sopercloîo 29,9),) 36,8OO 3 1,00)o 4,800) 102,500 460 65,300 290 10,300 50 26,900 120

Fore, Sevelooment - Oortrolturel Sectionlai arles- Expatriate Staff - 14,800 24,90n 24,9)1)1 64,6010 790 45,911,' 20) 18,0))) 90Oosiang ad stores 17.900 15 300 2,500 - 35,7n0 160 - 135,700 160 Vehiclea 5,600 2.900 600 2,900 12,000 50 6,700 30 5,300 20îqolpoaot 23L000 16.200 1.5300 54.500 240 38.300 170 516200 70

Total Fa.,r Dr-elopo-t Agricouroral Section 23,500 56,000 44,207 43,100 166,8))) 740 90,9n0 400 35,700 160 10,700 180

Farc Develonceat - Settters

lntoipntAl 3stFo nFl .. t raî -- 6,000 10,200 16.800 70 11.300 70 5,500 20Occreocotol Scascoal (redIt - - 12,10~ ~ ~~~~~~ ~~~~~~~~~~ ~~~~~~0 8.100 20.200 90 15,700 70 O 500 20

TotRI FstAe Oevelopmeot-SeIOlrrs - - 18,700 18,300 37,000 160 27,000 120 0,00o 40

Aorîcolural Oeearch Q107AI C,-eal)100n 4SoloriOultura l Eesesrch-(llsAl - Cere sl _ 39.600 39,600 39,600 118,800 530 -- IIS,S00 530Housing 26,900 - - - 26,900 120 - 26,9nn 120 - -Vehiclea - 5,400 540 20 - 5,400 20EqaîptdAct _6000 I l 1,100 10 - 1,100 10A,6lnletratlva Eapenses - 6,000 6,000 6,000 18,000 80 - _ 18.000 80 - -__

Total Ogror,,icelu Feseaorcl, (04A7 - Cereals) 26,900 52,10 45,600 45,600 170,200 760 - - 170,200 760

tural Resesre}(IRCT - C-rt-nSalorîc,,)tcraS troua,,). (IRIS - 00000 - 3.80' 1,01' 3,800 11,40c 40 8,0011 30 3,30). I0lor,O0g - 8,5r0 8,500 4n 6,000 30 2,500 100ep _ 1,90 1,900 10 1,40 10 500 75 OlpnO OC~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

0Odc,,,lisraîcvc ExpenSses- - 600 6r))) 6no 1.800 10 _ 1.300 10 --____ _________6__1__ 501 -

Tolt AarOcolîoroO Raeorrh (IRCT - Co(IoR - 14,800) 4,4001 I.,400 23,600 100 16,800 Sh 6,80)) 70

Fro ject Uneit Ovarhaadalarlea - Exaotriatc Staff 27,0000 71,000 77,00 0 7,70Ô 108,000 490 76,100 30 31,30r) 150- Local Staff 0,800 8,170 9,200 9,700 28,300 130 20,100 90 ' 8,200 40RotFing 10,0400 2,600 -, - 20.600 90 -63'soo 60- 20,600 90 200 4rVeliScles ~~~~~~~ ~ ~ ~ ~ ~~~~~~ ~~~~~~~13,0 -5,40o 18,800 80 13,500 60 9,0 )Oqolpce-t 9,30Il - - -9,300 40 6,800 30 2,500 10Rquipefoîtatv 9coe 380 27.000 29,000 37.000 90.S00 400 63.000 280 27,800 120

Total PrJtro Olt )Overhead 73,300 64,700 65,70n 77,600 775,800 1,73)1 18), Ion 80so 20,61)) 90 75,100 340

ConsuîOltne errvices a-d Other 5,600 S,800 8,800 ,800 32,000 140 22,500 100 9,500 40

Total Proieot Goat Prior to Contingancies 587,n00 822,200 i1)2,40)) 197,600 1,939,201) 8,620 698,000 3,100 779,100 3,460 170,200 760 291,900 1,300

Phyeical Contingencies /1 75,600 702,400 29,200 10,600 217,800 970 71,600 320 108,400 480 8,500 40 29,306 13)

FrIre Cocetlcgeoee 77/2 164,400 331,600 IS4,300 117,700 768,000 3,410 355,>00 1,580 237,500 1,060 46,300 200 128,800 570

Total Pro200t C7st s£ter Coctîngeoc4oa 827,00D 1,256,20() 515,90)' 325.900 2,025,01,0 13.000 1,125,000 S0700 1,125,000 9,0o)) 225,000 1,000 450,000 2,07))

0001 C FAF 225

/Il /2 Civil Wcrks - 1975 l67 ocl,cr 12"107 -ks 1976 147Y 10

SO tho -at 1977 127 8Y1978-79 107 7'

CHAD

LAKE CHAO POLDERS PROJECT

Prnje ct Cfo t

Irrigati O Works

Total

1 9 75 9 7 6 1 9 Y 1' 7 8 1 979 7 6 - 1 9 7 9

A. Contracts Unit Cost # 9 G

Gu-1 - panpicg station 5,200 3,900 1,30( 5,200

Berim - Nr th water Intake 145,600 109,200 36,400 145 600

North pum1ping station 5,200 3,900 1,300 5,200

South water irtake 27,000 20,200 6,800 27,000

Lrainage pampingstation 25,000 18,700 6,300 25,000

lotal Contracts 155,900 52,100 208,0O0

B. Force Accoant

B.1 Supplies and Oquiosent Runmnsg Costs

GCini - orainage collectors 3,100 3,100 3,100

Irrigation primaries 55,100 27,500 ?7,600 55,100necondaries 114,400 57,200 57,200 11i4,400outlets 8,300 4,100 4,200 8,300

Land planning 13,500 13,500 13,500

Tracks 17,700 3,900 13,800 17,700

SubtntcI Ostosn 92,700 119,400 212,100

Ber-s - Drainage colleotors 16,6G0 12,500 4,100 16,600

Irrigation prim.aries 181,000 150,200 30,800 181,000

seoendaries 247,500 185,600 61,900 247,500

outlets 17,700 13,300 4,400 17,700

Lard planning 32,200 25,800 6,400 32,200

Tracks 17,700 __15_ _800 1,900 17.700

Subtotal Ferul 403,200 109,500 512,700

B.2 EqiPment

Bulldozer 65 hp 9,200 4 36,800 36,800

Tracks 4t 6,400 3 19,200 19,200

Shovel truck 55 hp 13,900 2 27,800 27,800

Loader 85 hp 12,600 1 12,600 12,600

Conorete miner 350 1 600 2 1,200 1,200

Tractor 65 hp 2,400 3 7,200 7,200

Land plane 5,700 1 5,700 5,700

Grader 14,200 1 14,200 14,200

Total Equipment 124,700 124,700

B.3 Ltss Equipoant Depreciationl included in B.1 (3,900) (22,700) (4,800) (31,500D)

B.4 Staff Salaries and Consulting Services

Construction general foreman 14,600 1 14,600 1 14,600 ¼ 3,700 32,900

Construotion foreman 13,500 1 13,500 1 13,500 , 3,400 30,400

Local staff 5,200 5,200 1,300 11,700

Co.eulting sereines 4,200 2,100 1.000 7o300

Total Stafi Salaries 37,500 35,400 9,400 82,300

B-5 Staff Vehicles and Vehioles Runnirg ^ots

4-wheel drive 2,700 1 2,700 2,700

Runnmng cost 1,600 300 1, 6 00 o00 2,300

Tot'l Staff 3ehhcio -sad Runnoig Coss 3,000 1,600 400 5,000

B.o Staff Housire

Se-,or taff housn 7,800 * 15,6OO 15,600

Uti 1ties 2,300 2,300

Total Staff Housing 17,900 17,900 é

TOIAL IRRIGATION WGREKS 527,800 589,0OO 1l4,55,0c 1,131,300

CHAD

LAKE CRAD POLDERS PROJECT

Project Cost

Staff(CFAF'(OO)

Total

Unit Cost # 1976 # 1977 # 1978 # 1979 1976-1979 1980 f 1981 # 1982 # 1983 f 1984 f 1985

Project Unit

DireC t ion20, 10(0 1 20,100 1 20,100 1 2(,100 1 20,100 80,400

Assistant Manager 1,770l) I 1,700 1 1,700 1 1,700 5,100 1 2,100 1 2,100 1 2,100 1 2,100 1 2,100 1 2,100

Secretary 300 1 3200 1 300 1 300 1 300 1 300 i 300 1 300

Total 20,400 22,100 22,100 22,100 86,700 2,400 2,400 2,400 2,400 2,400 2,400

Rural EngineerinRoral Engineer 19,1(0 1 1 19,100 1 19,100 î4 4,800 43,000 _ _ _ _ _

Associate Rurall Engineer 1,400 1 1,400 1 1,400 1 1,400 4,200 1 1,400 1 1,400 1 1,400 1 1,400 1 1,400 1 1,400

Technical As-istants 50D I 500 2 1,000 2 1,000 2 1,000 3,500 2 1,000 2 1,000 2 1,000 2 1,000 2 1,000 2 1,000

Watermen 300 1 300 2 600 3 900 3 900 2.700 5 1.500 5 1 500 5 1,500 5 1.500 5 1,500 5 1

Total 800 22,100 22,400 8,100 53,400 3,900 3,900 3,900 3,900 3,900 3,900

AdministrationDirector 1,500 - I 1,500 1 1,500 1 1,500 4,500

Assistant Dire-tor 1,300 - 1 1,300 1 1,300 1 1,300 3,900 1 1,300 1 1,300 1 1,300 1 1,300 1 1,300 1 1,300

Secretary 300 1 300 1 300 1 30( 1 300 1,200 1 300 1 300 1 300 1 300 1 300 1 300

Accountants 400 1 400 1 400 1 400 1 400 1,600_ 400 400 1 400 1 400 1 400 1 400

Total 7T00 3,500 3,500 3,500 11,200 2,000 2,000 2,000 2,000 2,000 2,000

Fa.s DevelopmentDirector Field Operations 14,800 - 1 14,800 1 14,800 1 14,800 44,400Commercial Manager 10,100 - - 1 10,100 1 10,100 20,200Assistant Field Manager 1,400 - 1 1,400 2 2,800 2 2,800 7,000 1 1,400

Senior Extension Offie-r 1,300 - I 1,300 1 1,300 1 1,300 3,900 1 1,700 1 1,700 1 1,700 1 1,700 1 1,700 1 1,700Section Extension Officers 800 _ 2 1,600 3 2,400 3 2,400 6,400 3 2,400 3 2,400 3 2,400 3 2,400 3 2,400 3 2,400Extension Agents 1/ 300 - 9 2,700 14 4,200 25 7,500 14,400 29 8,700 29 8,700 12 3,600 12 3,600 12 3,600 12 3,600

Recrsiutent Officer 1,100 - 1 1,100 1 1,100 1 1,100 3,300

Re-ruitnent Assistant 800 _ 1 - 1 800 1_ 800 l,600 -Total 22.900 37 on0 40 800 101 2(, 14,200 _12800 7,700 7,700 7,700 7,700

Total Staff (Table 3) 21,900 70,600 85,500 74,500 252,500 22,500 21,100 16,000 16,000 16,000 16,000

1/ Ration of Agents First year 1:30Second year 1:60 t z

Third year 1:100 t z

CHADLAtKE CHAD POLDERS PROJECT

prolject Cost

Staff(CAF ' 000 )

TotalUnit Coot N 1976 0 1977 Lt 1978 J 1979 1976-1979 # 1980 _ 1981 # 1982 J 1983 # 1984 # 1985

T oporaPhyTopographer 12,200 1 12,200 1 12,200 1/4 3,100 27,500

AsSiatan topo8rapîor 1,400 - - 1 1,400 1,400

Technical Assistants 700 2 1,400 2 1,400 4 2,800 5,60Q __ __-

Total 13,600 13,600 7.300 34,500

forage 6 MaintenanceChief t iochanoi 6,900 1 6.900 1 6,900 1 6,900 1 6,900 27,600Do-ty Chief 800 - I 800 1 800 1 800 2,400 1 1,100 1 1,100 1 1,100 1 1,100 1 1,100 1 1,100

Soroor Methanita 100 1 500 2 1,000 2 1,000 2 1,000 3,200 2 1,000 2 100no 2 1,000 2 1,000 2 1,000 2 1,000

Pumtping Station Oechontct 500 - I son 2 1 000 2 1,000 2,500 2 1,000 2 1,00 2 1,000 2 1,000 2 1,000 2 1 000

St-rekeep-rs 300 1 300 1 300 3 900 3 900 2.400 3 900 2 6 00 2 600 2 600 2 600 2 600

Tot 7,700 9,000 10,600 10,600 38.40n 4,000 3,700 3700 3,700 3,700 3,700

Agr cultural ResearchlAgronomeis t 13,000 - 1 13,800 1 13,800 1 13,800 41400

Agroecononls t 12,200 _ 1 12,200 1 12,200 1 12,200 36,600

0g1l Scientiet 12,200 _ 1 12,200 1 12,200 1 12.200 36,600

Technical Afisilfstont 700 _ - 2 1,400 2 1.400 2 1,400 4,200 _________________ ___ _ _ _ -__70_2 1_00__140_420

Total 39,600 39,600 39,600 118,8000_ __

Total Staff (Toble 4î 21,300 62,700 5/,00__ 50_200 191,f[(1 4,000 3,700 3,700 3.700 3,700 3,700

Total Staff (Tahle 3 and Table 4) 43.200 133.300 143.000 124 700 444.200 _26 24 800 __ 19,700 19.700 19,700 19,700

CHAD

IAEE CHAD POLDERS PROJECT

Project Costa

Hou in3(CFAF000)

TotalUnit Cost -# 1976 # 1977 # 1978 # 1979 1976-1979

DirectionSenior staff house 7,800 1 7,800 7,800

Utilities at 15% 1,200 1,200

Total 9,000 9,000

Rural EngineeringSenior staff bouse 7,800 1 7,800 7,800

Utilities at 15X 1,200 1,200

Total 9,000 9,0Oo

AdministrationSenior staff house 7,800 1 7,80 7,800

Junior staff house 1,100 1 1,100 1,100

Utilities at 15% 1,200 200 1,400

Total 9,000 1,300 14%300

Far% develo.pmentSenior staff house 7,800 1 7,800 7,800

Junior staff house 1,100 2 2,200 2 2,200 2 2,200 6,600

Utilities at 15% 1,500 300 300 2,100

Service center stores 6,400 1 6,400 2 12,800 19,200

Total 17,900 15,300 2,500 35,700

TqpooraplhJiiiiior staff house 1,100 1 1,100 1,100

Utilities at 15% 200 200

Total 1,300 1,300

GaraeJunior staff house 1,100 1 1,100 1,100Utilities at 15A 200 200

Total 1,300 1,300

Agricultural research ISenior staff house 7,800 3 23,400 23,400

Utilities at 15A 3,500 3,500

Total 26,900 26,900

TOTAL HOUSING 71,800 17,900 3,800 93,50C

CHAD

LAKE CHAD POLDERS PROJECT

Proiect Cost

Vehicles

(CFAF'000)

TotalUnit Cost # 1976 # 1977 # 1978 # 1979 1976-1979 # 1980 # 1981 # 1982 # 1983 # 1984

Project Unit

Direction

Four-Wheel Drive 2,700 1 2,700 - - 1 2,700 5,400 - - - - -

Rural Engineerin

Four_Wheel Drive 2,700 1 2,700 - - - 2,700 - - - - -

Faro Development

Four-Wheel Drive 2,700 2 5,400 1 2,700 - 1 2,700 10,800 - - 1 2,700Trail Bikes 200 1 200 1 200 3 600 1 200 1,200 1 200 3 600 1 200 - 2 400

Topography

Four-Wheel Drive 2,700 1 2,700 - - - 2,700 - - - - -

Garage

Four Wheel Drive 2,700 1 2,700 - - 1 2,700 5,400 - - - - _5-ton Truck 8,000 1 8,000 - - - 8,000

Agricultural Research

Four Wheel Drive 2,700 - 2 5,400 - - 5,400 - - - - -

Total Vehicles 24,400 8,300 600 8,300 41,600 200 600 2,900 - 400

…D X

00o0|0 .Mo noXx r R9 , 3f< R 0 OR O

" <t 0< 3 eO =0' s3 >~o < 1 -'3<*<.0,E< o 03 <-t 0<0, = '40 ° 1 010 0< 00 -« =O o00<r£ 33o<- "'' <tD X

'I ~~~~~~~~~~~~~~O O r, 0'

Il P00PPO00 n»~

l o<-0 oo

3ll 0000= 3 -000

ll _ 1- 0 0t Vl w O 14 _ sb 12- 0 C

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F0000 330 OM _ M _M _

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<Il 000C O - M

Il Ot.'lOtb< <at -vl>@ _œO 0 OtOD ->

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lil~~~~~~~~ ~ ~~~~~ o o8* -. >- -

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l, or 338 333

It~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ r

11000 8888 80

FI 00000 O -8C O

Il O M M

<1000 ~ ~ ~ ~ ~ ~ ~ U 9 o o OC

L X1INNV

CHAD

LAKE CHAD POLDERS PROJECT

Pro1ect Coet

Direct Expenses<CFAF 000)

TotalUnit Coet # 1976 # 1977 # 1978 # 1979 1976-1979 # 1980 # 1981 # 1982 # 1983 # 1984

A. Frarm Developanent- Agricultural SectionFarm Equipnent

Running Cost

Tractor Hr CFAF 1,300/Hr 1,220 3,640 6,660 7,690 5,100 1,010 400 400CFAF 1,600 4,700 8,700 15,000 10,000 6,600 1,300 500 500

Harvester Hr CFAF 3,700/Hr 80 320 570 615 505 365 365 365CFAF 300 1,200 2,100 3,600 2,300 1,900 1,400 1,400 1,400

Other FarmEquipment 15% of Cost 1,100 3,400 4,100 8,600 4,300 3,000 1,000 600 600

Labor Mandays CFAF 200/day 4,400 17,20C 40,000 68,900 28,500 3,300 3,300 3,300CFAF 900 3,400 8,000 12,300 13,800 5,700 700 700 700

Cotton Seed ha CFAF 1,900/ha 20 70 270 420 220 20 20 20CFAF - 100 500 600 800 400 - - -

Wheat Seed ha CFAF 5,200/ha 50 220 420 420 20 20 20 20CFAF 300 1,100 2,200 3,600 2,200 100 100 100 100

Herbicide Cotton ha CFAF 3,700/ha 20 70 270 420 220 20 20 20CFAF 100 300 1,000 1,400 1,600 800 100 100 100

Herbicide Wheat ha CFAF 1,800/ha 50 220 420 420 20 20 20 20CFAF 100 400 800 1,300 800 - - - -

Insect icideCotton ha CFAF 35,000/ha 20 70 270 420 220 20 20 20

CFAF 700 2,500 9,500 12,700 14,700 7,700 700 700 700

Insurance. PackingFumigation

Wheat ha CFAF 6,000/ha 50 220 420 420 20 20 20 20CFAF 300 1,300 2,500 4,100 2,500 100 100 100 100

Cotton ha CFAF 5,800/ha 20 70 270 420 220 20 20 20CFAF 100 400 1,600 2,100 2.400 1,300 100 100 _ 100

TOTAL AGRICULTtlRAL SECTION 5,500 18,800 41.000 65,300 55,400 27,600 5,500 4,300 4.300

CHAD

LAKE CHAD POLDERS PROJECT

Pro iect Costs

Direct Expenses(CFAF 000)

Total1976-

Unit Cost # 1976 # 1977 # 1978 # 1979 1979 # 1980 # 1981 # 1982

B. Farm Development - Settlers

Cotton Seed ha CFAF 1,900/ha 250 400 650 950 1,150CFAF 500 800 1,300 1,200 1,800 2,200

Wheat Seed ha CFAF 5,200/ha 400 500 750 1,150 1,150CFAF 2,100 2,600 4,700 3,900 6,000 6,000

Insecticides Cotton ha CFAF 35,000/ha 250 400 650 950 1,150CFAF 8,800 14,000 22,800 22,800 33,300 40,300

Fertilizer Wheat ha CFAF 14,000/ha 50 200 400 650 1,150CFAF 700 2,800 3,500 5,600 9,100 16,100

Total Far. Development Settlers 12,100 20,200 32.300 33,500 50.200 64 600

C. Pumping of Drainage Water

Guini Pumping CFAF 174,000/kwh 45 7,800 45 7,800 15,600 45 7,800 45 7,800 45 7,800Berim Pumping CFAF 174,000/kwh 100 17.400 100 17.400 34,800 100 17,400 100 17.400 100 17,400

Total Pumaping 25,200 25,200 50,400 25,200 25,200 25,200

D. Maintenance of Irrigation System

Concrete Works 600 2,900Earth Works 500 1,800 2,300 1,800 1,800 1,800PVC Pipes 200 1,900Field Outlets and Gates 200 2,200

Total Maintenance 500 1,800 2,300 1,800 2,800 8,800

CHAD

LAE CHAD POLDERS PROJECT

Project Cost

Administrative and Indirect Expenses

Unit Total

Cost 1976 1977 1978 1979 1976-1979

.......................... . ...CFAF f000 *O ............ .....Ail Sections Except Agricultural Research

Vehicles Running Coet

Four-wheel drive 1,600 2 3,200 7 11,200 7 11,200 7 11,200 36,800

Trial bikes 50 - 2 100 6 300 6 300 7005-ton truck 2,100 - 1 2,100 1 2,100 1 2,100 6,300

Vehicle &pares 15% of cost - 4,ooo 4,100 4,100 12,200

Utilities 200/house - 13 2,600 14 2,800 15 3,000 8,400

Office Supplies CFAF 10/ employee 500 1,300 2,700 4,200 8,700

Building Maintenance 3-5% of cost - 4,800 5,000 5,300 15,100

Miscellaneous 100 900 800 800 2,600

Total 3,800 27,000 29,000 31,000 90,800

Agricultural Research

Vehicle Running Cost 1,600 - 2 3,200 2 3,200 2 3,200 9,600

Vehicle Spares 15% of cost - 800 800 800 2,h00

Utilities 200/house - 3 600 3 600 3 600 1,800

Office Supplies CFAF 50/employee - 200 200 200 600Building maintenance 3.5% of cost - 1,000 1,000 1,000 3,000

Miscellaneous - 200 200 200 600 H >

Total - 6,000 6,000 6,000 18,000 <

CHAD

LAKE CHAD POIDERS PROJECT

Project Unit

Income Statement and Cash Flow(CFAF'000)

Total1976 1977 1978 1979 1976-1979 1980 1981 1982 1983

A. Income Statement

RevenuesFarmers Water Charges (O.M.) 22,200 37,000 59,200 55,500 85,100 85,100 85,100Sales from Agricultural Section

Seed Cotton 4,800 11,400 37,900 54,100 57,800 31,300 4,800 4,800Wheat 7,800 29.000 54.000 90,800 54,000 4.000 4.000 4,000

Total Revenues 12,600 62,600 128,900 204,100 167,300 120,400 93,900 93,900

ExpensesWheat Marketing and TransportDirect Expenses 800 9,400 14,000 24,200 17,300 15,900 15,900 15,900

Irrigation Works Operations 3,300 3,300 3,900 3,900 3,900 3,900Farm Operations 12,300 30,100 55,600 98,000 69,800 41,000 16,100 12,000Pumping Costs - 25,200 25,200 50,400 25,200 25,200 25,200 25,200Maintenance of Irrigation System 500 1,800 2,300 1,800 2,800 8,800 8,800

Project Unit OverheadSalaries 8,400 8,100 8,100 8,100Administrative Expenses 20,000 20,000 20,000 20,000

Total Expenses 13,100 65,200 99,900 178,200 146,400 116,900 98,000 93,900

Net Operating Income (Loss) (500) (2,600) 29,000 25,900 20,900 3,500 (4,100) -

B. Cash Flow

Farmers Water Charges (Capital) 12,300 20,500 32,800 30,800 47,200 47,200 47,200

SODELAC Debt Repayment 23,400 23,400 41,500 44,500 47,500 47,500Net Yearly Cash Flow 12,300 (2,900) 9,400 (10,700) 2,700 (300) (300)Cumulative Net Cash Flow 12,300 9,400 ( 1,300) 1,400 1,100 800 I*H33

aX

CHAD

LAKE CHAD POLDERS PROJECT

Project Cost

Consulting Services and Other

(CFAF '000)

Unit TotalCost 1976 1977 1978 1979 1976-1979

Consultant in organization CFAF1,400,000/to SODELAC month h 5,600 2 2,800 2 2,800 2 2,800 14,000

Audit of Project Accounts 1,000 1,000 1,ooo 3,000

Scholarship 5,000 5,000 5eOOO O000

Total 5,600 8,800 8,800 8,800 32,000

(D<

ANNEX 7Table 13

C_D

LAKE CHAD POLDERS PROJEC?

Project Cost

IDA Disbursement Schedule

IDA Fiscal Year Cumulative Disbursementand Quarter at End of Quarter

(US$ '00o)

2nd Quarter 4003rd Quarter 4004th Quarter 400

PY 77Q

Ist Quarter 1,000

2nd Quarter l~,0003rd Quarter 1,5OO4th Quarter 2,000

FY 78

lst Quarter 2,r,002nd Quarter 3,CC03rd Quarter 3, $004th Quarter 4,000

FY 79

lst Quarter 4,1002nd Quarter 4,20O3rd Quarter 4,300.4th Quarter 44,oC

FY 80

1st Quarter 4,50Q2nd Quarter 4,6003rd Quarter 4,7004th Quarter 5,000

CHADLAKE CHAD POLDERS PROJECT

Organization Chart

SO D ELAC.President

Projec Activities lManagement Outside Project

Garage Rural Field Administration AgriculturalEngineering Operations Research

Commercial Farmers-Topography Section Development

World Bank-9744

ANNEX 8Schedule 1

CHAD

LAKE CHAD POLDERS PROJECT

Organization

Terms of Reference of the Engineering Consulting Firmproviding Seconded Staff

1. Objective. An engineering consulting firm would be asked to providethe expertise necessary to assist SODELAC in carrying out the proposed project.

2. Scope of Services. The engineering consulting firm would providethe following services:

(a) Project Unit staffing;

(b) assistance for irrigation works construction and supervision;and

(c) training of local staff.

2.1 Project Unit Staffing. The project would be the responsibility ofSODELAC which would manage it initially through a Project Unit created forthat purpose. The Project Unit would be staffed with experienced and wellqualified personnel who would be seconded to SODELAC for the periods indicatedat Schedule 1. The job descriptions and qualifications of these staff aresummarized below:

Project Unit Manager. Experience would be the main criteria forthe selection of a Project Manager, although a formal qualification in agri-culture and rural engineering would be important. At least 10 years experiencein successful agricultural development work in the field, including develop-ment-oriented projects, preferably in irrigation and in Africa, would berequired. A high degree of administrative ability, an experience in dealingwith the highest level of Government, and previous involvement in extensionwork with small farmer communities vould be necessary. The general responsi-bilities of the Project Manager would be to carry out-implementation of theproject and to coordinate project activities with those of Government andlocal agencies. Ris duties would include:

(a) coordinating all project activities;

(b) monitoring the payment of contractors and suppliers;

(c) dealing with all project personnel matters;

(d) coordinating with local authorities, particularly for theselection of settlers; and

ANNEX 8Schedule 1Page 2

(e) designing project staff training.

The Project Manager would report to the President of SODELAC.

Rural Engineer. The Rural Engineer should be a qualified RuralEngineer. He should have at least 5 years experience in the constructionof irrigation works and should be accustomed to deal with contractors andsuppliers. The responsibilities of the Rural Engineer would be:

(a) analyzing contractors' and suppliers' bids;

(b) supervising and controlling the execution of the irrigationworks built by contractors;

(c) planning and coordinating the execution of the irrigationworks built by force account; and

(d) supervising the operation of the irrigation and drainagesystems.

The Rural Engineer would report to the Project Manager.

Topographer. The Topographer should be a qualified Topographer.He should have at least 5 years experience in topographic work for theconstruction of irrigation works. The responsibilities of the Topographerwould be:

(a) assisting the Rural Engineer in supervising the irrigationworks built by contractors; and

(b) participating in the construction of the irrigation worksbuilt by force account.

The Topographer would report to the Rural Engineer.

General Foreman (Conducteur de Travaux). The General Foreman shouldbe a very experienced foreman with some knowledge of rural engineering. Heshould have at least 10 years experience in the construction of irrigationworks. The responsibilities of the General Foreman would be:

(a) organization, planning and control of the construction ofthe irrigation works constructed by force account; and

(b) supervising the timely procurement of equipment and supplies.

The General Foreman would report to the Rural Engineer.

ANNEX 8Schedule 1Page 3

Foreman (Chef de Chantier). The Foreman should have at least 5 yearsexperience in the construction of irrigation works. The responsibilities ofthe Foreman would be the direct supervision of the construction crews. Hewould report to the General Foreman.

Administration Director. The Administration Director should be aqualified Accountant with additional training in personnel and business manage-ment. He should have at least 10 years experience in a senior position in alarge public corporation or commercial company. If possible, he should havea knowledge of credit procedures and should have worked with farmers orcooperatives. His main responsibility would be the control of all projectfinances on behalf of the Project Manager. Ris duties would include:

(a) establishing a chart of accounts and keeping accountingrecords for the construction works and the Project Unit;

(b) preparing budgets, cash flows, estimates of expenditures;

(c) preparing disbursements applications to project financiers;

(d) internal auditing;

(e) establishing an efficient system of recording agriculturalcredit transactions;

(f) responsibility for project stores;

(g) recruiting staff and dealing with personnel problems; and

(h) establishing and supervising the marketing of project crops.

The Administration Director would report to the Project Manager.

Director of Field Operations. The Director of Field Operationsshould have at least 5 years experience in organizing and controlling anagricultural development project and should preferably have commercialexperience in irrigated agriculture. African experience would be important.He would be responsible for all agricultural aspects of the project and hisduties would specifically include:

(a) preparing operating field budgets for the Project Unitrollover commercial cropping program and for smallholderoperations;

(b) organizing seed multiplication in association with IRCTand the Research Unit at Matafo;

(c) providing mechanized and technical services to smallholders;

ANNEX SSchedule 1Page 4

(d) recruiting smallholders in association with the Comite deDeveloppement Prefectoral;

(e) developing proper training programs for smallholders andstaff;

(f) procuring and providing Earm inputs; and

(g) storing and marketing all agricultural produce from thepolders.

Tle Director of Field Operations would report directly to the Project Manager.

Comercial Manager. The Commercial Manager should have at least5 years experience in the commercial management of a mechanized irrigationscheme, and should have some knowledge of wheat and cotton. The CommercialManager would be responsible for the Project Unit commercial operations, i.e.,for the supervision of up to 400 ha of commercially produced cotton and wheat,and for the provision of mechanical services to farmers participating in theproject. In particular, he would be responsible for:

(a) hiring labor;

(b) supervising all commercial production activities;

(c) recommending to the Director of Field Operations technicalparameters required for crop production;

(d) annually assessing farm input requirements; and

(e) controlling machinery and equipment for both Project Unitand smallholder operations.

Th.e Commercial Manager would report directly to the Director of Field Operations.

Senior Extension Officer. The Senior Extension Officer should be aqualified agriculturist and should have at least 5 years in Africa workingwith small farmers as an Extension Officer. He should have a full workingknowledge of extension systems and techniques, and would be responsible forthe smallholder development section of the project. In particular, he wouldbe responsible for:

(a) providing extension and credit services to smallholders;

(b) training extension staff and project farmers;

(c) liaising with the Commercial Manager for the use of mechanizedequipment;

(d) defîning settlement areas and settling farmers;

ANNEX 8Schedule tPage 5

(e) preparing budgets for the smallholder development section;and

(f) liaising with the Research Unit on all agricultural andsocial research programs.

He would directly report to the Director of Field Operations.

Chief Mechanic. The Chief Mechanic should have successful experiencein operating and maintaining earth moving machinery, and possibly in operatingand maintaining irrigation systems. His responsibilities would be:

(a) supervising the operation and maintenance of all equipmentand vehicles;

(b) supervising the operation of the pumping stations andthe water distribution system;

(c) establishing a workshop capable of maintaining equipment,vehicles and pumping stations; and

(d) ordering and maintaining an adequate and suitable supplyof fuel and spare parts.

He would report directly to the Rural Engineer, and after completion of irriga-tion works, to the Project Manager.

2.2 Assistance for irrigation works construction and supervision. Thestaff provided by the engineering consultants would analyze the bids submittedby contractors and suppliers, and prepare the construction and supply contractsfor Government signature, according to Government procedures. The engineeringfirm would draw upon the resources of its head office when technical problemsarose.

2.3 Training of local staff. All expatriate staff would be responsiblefor training local staff in their own techniques. The engineering consultingfirm may also arrange for training of local staff at its headquarters, or onother project sites where it operates.

3. Approval of Staff. Appointments of individuals and their replace-ments would be subject to IDA and Government approval. The consulting firmwould provide resumes of the applicants' experience and qualifications.

4. Payment. The engineering firm would be paid for seconded staffduring their appointment and leave time, at a rate agreed with Government andreviewed at the beginning of each calendar year. Table 1 is the appraisalestimnate for the costs of the engineering services.

5. Arbitrage. Government contract with the engineering consultingservice would include an arbitrage clause.

CHAD

LAKE CHAD POLDERS PROJECT

Organization

Expatriate Staff Salaries

(CFAF '000)

1974 TotalUnit Cost # 1976 # 1977 # 1978 # 1979 1976-1979

A. Expatriate Staff Seconded bv Consulting Firm

Project Unit Manager 20,100 1 20,100 1 20,100 1 20,100 1 20,100 80,400Rural Engineer 19,100 1 19,100 1 19,100 4 4,800 43,000Topeirapher 12,200 1 12,200 1 12,200 1/4 3,100 27,500General Foreman 14,600 1 14,600 1 14,600 1/4 3,700 32,900Foreman 13,500 1 13,500 1 13,500 1/4 3,400 30,400Field Operations Director 14,800 1 14,800 1 14,800 1 14,800 44,400Commercial Manager 10,100 1 10,100 1 10,100 20,200Chief Mechanie 6,900 1 6.900 1 6.900 1 6.900 1 6,900 27.600

Subtotal 67,300 101,200 81,200 56,700 306 400Contingencies 15.100 32,6f0 33,700 21,400 i02,800

Total after Contingencies 82,400 133,800 114,900 78,100 409,200

Visiting Consultant 4,200 2,100 1,000 7,300Contingencies 900 700 400 2000

Total after Contingencies 5,100 2,800 1,400 9,300

B. Research Staff

Agronomist 13,800 13,800 13,800 41,400Agro-Economist 12,200 12,200 12,200 36,600Soil Scientist 12.200 12.200 12.200 36,600

Subtotal 38,200 38,200 38,200 114,600Contingencies 12.300 15.800 19.300 47,400

Total after Contingencies 50,500 54,000 57,500 162,000

O'n

ANNEX 8Schedule 2

CHAD)

LAKE CHAD POLDERS PROJECT

Organization

Terms of Reference of the Research Staff

1. Objective. The project includes financing of a modest researchprogram to continue the research work already carried out at the MatafoResearch Station and to explore the use of small lift pumps.

2. Staffing. The Station would be staffed by three experiencedresearchers. Conditions of employment and appointments of the staff would bemutually acceptable to Government and IDA.

Agronomist. The Agronomist should have at least 10 years researchwork in agronomy under irrigation conditions and should have proven adminis-trative ability. He would be responsible for:

(a) preparing research budgets and annual reports;

(b) determining in conjunction with the Project Unit and researchinstitutes such as IRCT the long- and short-term researchpriorities and programs to be undertaken at the Matafo ResearchStation;

(c) screening promising wheat varieties;

(d) producing breeders seed to support a seed multiplication pro-gram for project wheat;

(e) conducting research into alternative crops including highvalue marketable vegetable crops;

(f) determining mineral deficiencies; and

(g) conducting trials to determine suitable long-term croprotations.

He would be responsible to the Project Manager and would liaise with theCommercial Manager. He would be responsible for the research staff.

Social Economist. The Socîal Economist should be an experiencedsociologist with African experience. He would be responsible for:

ANNEX 8Schedule 2Page 2

(a) enumerating smallholder labor requirements;

(b) determining and evaluating smallholder incomes, and formaking recommendations as to changes required to furtherimprove farm incomes;

(c) monitoring SODELAC's commercial operations, evaluating laborand machinery inputs; and

(d) evaluating the overall impact of the project on the economicdevelopment of the immediate area to Bol.

The Social Economist would report to the Agronomist.

Pedologist. The Pedologist should have at least 5 years practicalexperience in'a similar research station and should have an academic back-ground in soil or chemic4l sciences. His responsibilities would include:

(a) analyzing soils for mineral deficiencies;

(b) studying soils under crop cultivation; and

(c) studying 8oil salinity under small lift pump operations.

The Pedologist would report to the Agronomist.

Table 1

CHAD

LA.KE CHAD POLDERS PROJECT

Economic Prices

Marketing and Processing Costs(1973 terms)

Cotton Lint WheatExported via Imported

gFAF/ton Cameroon via Nigeria

Transport Import-TransportFarm to ginnery 2,400 Fob US-Apapa 12,300

Apapa-Maiduguri 12,200Ginnery Maiduguri-N'Djamena 5,600Expatriate salaries 3,800Local salaries 4,100 Total 30,100Consumables 3,000Packing 2,000 Import-Quantity loss 1,500Insurance 2,300

(5% of Fob price atTotal 15,200 CFAF 30,100)

Ginnery to FDB Local-TransportTransportBol-Fort Foureau 6,600 Bol-D'Djamena (4,900)Fort Foureau-Ngaoundere 10,200 quantity loss (300)Ngaoundere 1,200 (1% of Fob priceNgaoundere-Douala 5,600 at CFAF 30,100)Insurance 500Transit 2,200 Fob US to Farm-gate 26,400

Total 26,300

Fob to Cif Eurore 14,000

EuropeSelling expenses 1,200CFDT fee 2,000

Total 3,200

Farm-gate to Europe 61,100

Note; Marketing and Processing Costs (CFAF/ton)Cotton Lint Wheat

1974 terms 32,0001975 terms 82,200 35,5001976 terms 89,400 38,6001977 terms 96,600 41,700

CHAD.

LAKE CHAD POLDERS PROJECT

Econ2me PricesA

Forecasted. Farm Gate Economic Prices(1973 Terms)

Cotton lint _ __________

01F Europe Farm-gate FOB Gulf Port Farm-gateChad Import

Mexican s/m/i/16 Premiumn SubstitutionYear USe/lb. O?UY/ton 1. _ USiL.FQB/ton CFAF/ton

1976 44 218,300 10,000 167,200 116 26,100 52,500

1977 4h 218,300 10,000 167,200 113 25,400 51,300

1978 43 213,300 10,000 162,200 112 25,200 51,600

1979 h3 213,300 10,000 162,200 110 2h,800 51,200

1980 43 213,300 10,000. 162,2Q0 112 25,200 51,600

1985 43 213,300 10,000 162,200 115 25,900 52,300

1/ US$1 CFAF 225

2/ Premium comprising - Length Premium 1-3/32 versus 1-1/16 CFAF 8/kg- Hand Harvest Premium - standard - O - CFAF 2/kg

CFAF 10/kg

P t

CHAD

LAKE CHAD POLDERS PROJECT

Government Cash Flow

Capital Recovery Index

--------------------------------- Goverrment ----------------------------------------------------- Consolidated Fee10%Discount Capital Operating Total Capital InvestmentFactors Investment 1/ Expenses 1/ and Operating Expenses

Constant Present Constant Presenttermse value @ 10% termc value @ 10%

Year l 0.909,090 681,700 13,100 694,800 631,600

Year 2 0.826,446 933,200 65,200 998,400 825,100

Year 3 0.751,315 178,800 99,900 278,700 209,400 39,000 29,300

Year 4 0,683,013 222,400 178,200 400,600 273,600 65,000 44,400

Year 5 0.620,921 146,400 146,400 90,900 97,600 60,600

Year 6 0,564,474 116,900 116,900 66,000 149,600 84,400

Year 7 0.513,158 98,000 98,000 50,300 149,600 76,800

Year 8 through Year 50 5.046,395 93,900 93,900 473,900 149,600 754,900

Total 2,620,800 Total 1,050,400

Capital Recovery Index 1,050,400 = 40%2,620,800

1/ Including physical contingencies but exéluding price contingencies.

>~:

CHAD

LAKE CHAD POLDERS PROJECT

Government Cash FlowCapital Recovery Index including all Government Benefits

O.o... . GvrenBnfis................Beeis... .... e...... e...*... ............. e.

10% Farmers COrONTCIiD PresentDiscount Consolidated Cottot Operating Value

Factors Fee Tax&t Incom e Total i 10%

Year 1 0,909,090

Year 2 0.826,446 - 1,500 1,50o 3,000 2,500

0.751,315 39,000 14,300 13,800 67,100 50,400

Year 4 0.683,013 65,000 29,200 28,200 122,400 83,600

Year 5 0.620,921 97,600 46,200 44,600 188,400 117,000

Year 6 o.564,474 149,600 5o,4oo 44,600 244,600 138,100

Year 7 0.513,158 149,600 50,400 48,800 248,800 127,700

Year 8 through 50 5.o46,395 149,600 50,400 48,800 248,800 1,255,500

Total 1,774,800

Capital Recovery Index including all Government Benefits 1,774,800 = 68%2-,620-80-0

~~~~~~~~00 ~ ~ ~ ~ (

2/ CFAF 17/kg of seed cotton.

/ CFAF L)4,000/ton of lint.

CIAD

LAKE CHAD POLDERS PROJECT

Government Cash Flow

Average Average1982- 1986-

(CFAF '000) 1976 1977 1978 1979 1980 1981 1985 1995

A. Inflows

SODELAC Project Unit Debt Repayment 31,200 56,700 60,800 64,400 64,400

Cotontchad Operating Income I/ 1.500 13,800 28.200 44.600 44.600 48.800 48.800

Total Inflows 1,500 13,800. 59,400 101,300 105,400 113,200 113,200

B. Outflows

IDA Service Charge 4,000 7,000 8,000 9,000 9,000 9,000 9,000 8,500

Amortization 11,300

AFDF Service Charge 2/ 4,000 7,000 8,000 9,000 9,000 9,000 9,000 8,500

Amortization 11,300

Total Outflows 8,000 14,000 16,000 18,000 18,000 18,000 18,000 39,600

l/ @ CFAF 44,000 per ton of Lint Based on Moundou Income Statements and Payment of CFAF 53,000/Ton for Project Cotton.

2/ Terms assumed to be the same as for IDA.

CHAD

CEAD POLDERS PRWECT

Ecpnotdc CaIculations

1976 1977 1978 1979 1989 1981 1982 1983

A,. BeneEits

Cr-p Productien £tonsS

Seed Cotton -0 715 1,715 2,715 2,965 2,965 2,965l.int J30 270 640 1,020 1,110 1,110 1,110

Whest 80 1,330 2,230 2,955 2,955 2,955 2,955

Eçoononi Price <fcAF/TonI

Lint 167,200 162,200 162,200 162,200 162,200 162,200 162,200Wheat 51,800 51,600 51,200 51,600 51,800 52,000 52,200

Economiîc Benefîtu (CFAF 000)

Lint 5,000 43,800 103,800 165,400 180,000 180,000 180,000lAheat 4.1010 68.600 119.300 152,500 ~ 153.100 ~ 153.700 4,olconomîc îenEfit ' ,49 12 64 600 223,100 317,900 533,100 333,700 334,300

h.ado. Peirie Fotor 1/ 1,830 22.500 44.600 63,600 66.600 66,700 66,900

Total Econo..in Benefit. 10,900 134,900 267,700 381,500 399,700 400,400 401,200

rrisation Works Construction

1973 Ter- 333,500 45,900 89,300Shadçv Price Factor 2/ 52,000 7,200 14,000

Irigat.ton Wotk. -uperolnîcn and Opçration

1973 Teras 38,200 28,700 13,000 2,600 3,000 3,000 3,000 3,000Shadow Price Factor 3/ 6,300 4,800 2,200 400 500 500 500 500

Far. Develop.ient

1973 Term. 18,300 61,100 65,800 84,800 54,400 32,000 12,600 9,400Shadow Price Factor 4/ 3,000 9,900 10,700 13,700 8,800 5,200 2,000 1,500

Settlers - Equipm,ent & Seasonal Credit

1973 Tera' 14,600 23,700 36,400 51.500 62,000 55,800Shadow Prite Factor 5/ 2,400 3,900 6,000 8.400 10,200 9,200

Settler. Foregooe Ic-me 6/

1973 Ters. 1,900 3,100 4,600 7,100 7,100 7,100

Pumping & faintenance o Irrigatio- Syste.

1973 Terms 20,000 21,000 21,0P0 21,800 26,500 26,500Shadow Price Fuctor 7/ 4,000 4,200 4,200 4,400 5,300 5,300

Project Unit Overbead

1973 Ter=. 57,100 60,800 61,200 67,000 22,100 21,900 21,900 21,900Shadow Price Factor 8/ 9,500 10.100 10.200 11,100 3,700 3.600 3,600 3.600

Total Econi1mic Cost beforePhysical Continge.cies 517,905 228,500 309,300 235,500 164,700 153,400 154,700 143,800

Physicl Contingencies 56,700 18,400 25,300 10,200 - - -

-ota1 Econo..ic Copts .584.600 246,900 334600 245,700 164700 13.400 154.7 1463.00

I/ 1007 -f 204.2/ 78vf of 207.3/ 837 nf 207.3/ 8137 of 20i.5/ 827. f 207?.6/ Ass,--es the los. of tradition-l irriggt-on 100005e AnneX: 5~41, 2

/ 807 o! 20;8/ 3-/ of 20'

ANNEX 11Table 2

CHAD

LAKE CHAD POLDERS PROJECT

ECONOMIC CALCULATIONS

SENSITIVITY ANALYSIS

1. Base case 16.75%

2. Sensitivity

Costs unchanged - Benefits -50% 1.05%

-25% 1o.15%

-10% 14.25%

+10% 19.05%

+25% 22.45%

+50% 27.65%

Benefits unchanged - Costs -50% 36.95%

-25% 24.15%

-10% 19.35%

+10% 14.45%

+25% 11.55%

+5o% 7.55%

3. Without shadow-pricing of foreign exchange = 16.01%

4. Without physical contingency = 18.35%

5. Without the commercial agricultural section = 12.27%

22" ~~~CHAD

: N fis 0 . LAKE CHADj'. POLDERS PROJECT

. ~~~~~~~~~~~~APPRAISAL REPORT A w_ic1N i;SŽ LAKE AREA

e5 ~ -; fECz ............ j:; iPREFECTURE BOUND)ARIES- - - - - -SUB-PREFECTURE B OUND ARIES ..................

Po»> PREFECTURE HEADCUARTERS Ng / iE. . - INTERNATIONAL BOUNOARIES 0041-i "t

i ""~~~-27 9-- CONTOURS N METERS MAP 44N4.44

La I:t`,t';2 4-a ;'i: 'Ci;i | U} \ i: : FZ AIRPORT M P ='CatR*

::1TTVl ç,;yR ;.::- ;:W:BS::1ES SA2XUSS=NA /' Laleau l ! ;t ALLWEATHER ROADS U;RtljL ,:_X! <E,L ;,,;'{: AL EATER R-D

I t - $ ;; : æ :20 | V ! :D; .MAIl iTlROADE A S e*j;; T'a > 2 f r -; 1/t 1 oFLd it;uiÇ@ SECONDARY ROADS > S1 ; l(".jflR3;pi? tuel; "< )0lX :saSO Ry

j ; :' 9 / ' t::::SEASONAL ROADS ;

. ........ ...... ~ ~ ~ ~ ~ ~ iMAIN RC'ÀDS

z»;ÇS ;fL 21 P / ` S , _0@;.:;l' _ SECONDARY ROADU ;;rr7 2 $~ Ré Ef ;,gte;HN J\2gr{2rA ECONDAY-ROAD

4 :D0;: ::2/ ,s B i LT I N,E oI >> ----- OTHER ROADSU

; $ S ( N#oqK A N E." M , o-,d., _° t = | >fi fe°Âs . ~~L- a ° B A T,'H A N sg u°uJjF g-";;' ' ;if .; ' ; NDJAMENA

B ; ? t'>w Moîsavet To 12_ > oBb9U-DPIé t-r7`' '% ti=S, \Xf: ;iR SP;E; S4 dE u A?ç250i; ]SvJ p"4{pR 9 1 v2Y~ ~~~~~~~~ > oo A>,>

'~AG UIR I....... T~~~~~~~~0_-,t, i;ÇN izBn duso_ ",' SALAMAT ( e

RD: D C e/ O ANDJtLE " '-oaty . »+M,h o< S ' 4E M'' E \et f 4,' -i'.A; ', =$' <!/ ;/'. >'

jSbbav>" K . at

o;S; f1 L ;-niE"> 2OGCNE" s | Size rÉ)5iin6;!l nU X 0 S dt S9S:I; ES; fiiE=;-;2ilrW fX a o > 4 f

1 SaD 4eL ApSCj ;Xr/ - Rd________________do_d_________________________r 16

IBRD 11447

MARCH 1975

0 st >\ .- `+ YLAKE CHAD

r» ,/ . ` .` f - i< -- >POLDERS PROJECT

APPRAI5$~L REPORT>u 0xj ` ` : ,/ `: ` "` - ` ` PROJECT AREA

:k. N "- ̀ . .- Z 5 Driqd PolderPoIcler to be Dried

: - \ = .` - X4 4 -- ~~~~~~~~~~~~~~~~~Dunes

t ; i- -. çt- - Internotional Boundories (Inset)

N

t.- 4 ~ ~ ~ ~ ~ ~ T

N_. n%R t t .. . 4x.-

:j.,-.-nQ, , j ' '< t !

B0t >S t . s , . ! w w .~~~~~~~~17; Ti, 4";:L"`.ts`1 lilil 1S`i/

,: L 18 YA 20'

: ~ ~ ~ ~ I "1 '-, O ' 0,-0 - .ILOMETERS

Y3kouc O' N

'1 -. ~~~~~~~~~~~~~~~~~~~~20'

0 N I G R

Bogourmi t ;

":, C H A D

Kotokororn O~~~~~~ ~ .J -41r 1_A

20'

` ~ ~ ~ . ` s 4 r ~~NI G- R IA ? P N D;cme" a

0 5 10 `e . s iK_loJ -)

KlLO,'0ETERS 0 ,, "_, - r. z~~~~~~~CAMERO14 f,; 'AFRICAN REÇ'UBIC

IBRD 11448CHAD -_ 20,MaRcH

LAKE CHAD L - B Y A

POLDERS PROJECT, APPRAISAL REPORT = rAeX: ` DRAINAGE AND IRRIGATION NETWORKS r -?b- \ 20,-

MASTER PLAN > > _ -

éM DI j C H c D

f~~~~ - - i . w _ r4 r'P - §- .rY) r- 3r/ , Doelo4

~~~~~~~~~~~~~~~~~~ _X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,% Eg> BX<7<- - . - < -~ P l n c r D

Limit of Irrigation Perimeters

0 R T'n MoirA Droinage Collectors and Main Inside Track

Planned Tracks

r - - - ~~~~~~~~~~~~~~~Existing Trocks

- Dikes~~ ~4~' 'b Water Intake Works

A Pumping StationsLoke

E ~Dunes-Z a~ ~~~~~ Villages

- Interniational Boundoiries (Inset)