Report No. 1111-EGT FILE COPYAppraisal of Upper Egypt Drainage 11 ProjectArab Republic of Egypt

May 27, 1976

Agriculture and Rural Development DivisionProjects DepartmentEurope, Middle East and North Africa Regional Office

FOR OFFICIAL USE ONLY

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 World Bank authorization.

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CURRENCY EQUIVALENTS(February 1976)

US$ 1.00 = Egyptian Pound (bE) 0.39 (Official rate -

used in this reportLE 1.00 = US$2.56 for all project cost

estimates)

LE 1.00 = US$1.70 (Parallel market exchange rate attime of appraisal - used in thisreport for economic evaluation)

WEIGHTS AND MEASURES

1 feddan (fed) = 1.04 acres (ac)1 feddan (fed) = 0.42 hectares (ha)1 kilometer (km) = 0.62 miles (mi)1 meter (m) = 3.28 feet (ft)1 cubic meter (m3 ) = 35.31 cubic feet (cu ft)1 metric ton (m ton) = 0.984 long ton (ton)

ABBREVIATIONS

EPADP - Egyptian Public Authority for Drainage ProjectsGOACC - General Organization for Agricultural and Cooperative

CreditGDP - Gross Domestic Product (Value)WFP - World Food Program

FISCAL YEAR

January 1 to December 31

FOR OFFClIAL USE ONLY

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ...... .......................... i-ii

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

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

General ................................................ 2Population ... ........... 2

The Agricultural Sector ........................................... 2

Previous IDA Drainage Projects in Egypt ............ .... 3

III. THE PROJECT AREA ........................... ............ 4

General ............................................... . 4Climate ............................................... . 5Topography and Soils ...... ............................. 5Drainage Conditions and Irrigation .... ............. 5Salinity Conditions ....................... 6Agricultural Production ................................ 7Population, Land Tenure and Farm Size ................. . 7Agricultural Support Services ..... ............. 7Credit, Marketing, Transportation and Storage .... ...... 8Agricultural Taxation .................................. 8

IV. THE PROJECT ...... .... 9

Objectives ............................................. 9Project Drainage and Reclamation Works ................. 9Bilharzia Control ...................................... 11Status of Engineering ....... ........................... 11Consulting Services ................... ................. 12Construction Schedule .................. ................ 12Cost Estimates ..................... .................... 13Financing .............................................. 14Procurement and Contracts .............. .. .............. 15Disbursement ........................................... 17Environmental Impact .................. ................. 18

This report is based on the findings of an appraisal mission to the Arab Re-public of Egypt in November/December 1975, composed of Messrs. P. Economides,F. Sands and G. Donovan (IDA/Bank). The Bilharzia control aspects of theproject were appraised by Dr. G. Webbe (Consultant) in October 1975.

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

TABLE OF CONTENTS (continued) Page No.

V. ORGANIZATION AND MANAGEMENT ...... ...................... 19

Project Authority Responsible for Drainage Works ...... 19Supervision of the Bilharzia Control Program .......... . 19Operation and Maintenance ..... ........................ 20Services and Training ..... ............................ 20Cost Recovery .......................................... 21Accounts and Audit ................... ... .............. 22

VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FARM INCOME .. 22

Cropped Area, Yields and Production .. ................. 22Markets and Prices ................. .. ................. 23Producer Income ..................... .................. 23

VII. BENEFITS AND JUSTIFICATION ............................ 23

Aggregate Economic Return .............. .. ............. 23Beneficiaries ......................................... 24

VIII. AGREEMENTS REACHIED AND RECOMMENDATIONS ................ 24

ANNEXES

1. Climatological Data2. Soils and Need for Drainage3. Project Works4. Agriculture5. Consulting Services - Draft Terms of Reference6. Cost Estimates7. Annual Operation and Maintenance Cost8. Equipment and Materials9. Agricultural Credit, Cooperatives, Marketing and Prices10. Farm Budgets11. Economic Rate of Return and Sensitivity Analysis12. Bilharzia Control

FIGURES

IBRD 15753 Implementation ScheduleIBRD 15754 Organization Chart for EPADPIBRD 12107 General Map of Project AreaIBRD 12108 to 12114 and 12280 Detailed Maps of Project AreaIBRD 12115 Bilharzia Control Project Area

SUMMARY AND CONCLUSIONS

1. The agricultural sector in the Arab Republic of Egypt is extremelyimportant; it provides 31% of the GNP and employs about half of the totallabor force. Sustaining and improving land productivity is a prime requisitefor maintaining and improving the life of the people. However, in the absenceof adequate drainage, agricultural production has been facing the twin menacesof waterlogging and salinity. The situation worsened after the constructionof the Aswan High Dam in 1970 which enabled the farmers to shift from basinirrigation to perennial irrigation.

ii. A high priority has been accorded by the Government to improvingthe drainage conditions in the agricultural land. The Egyptian PublicAuthority for Drainage Projects (EPADP), is responsible for Implementing thedrainage program throughout the more than 6 million feddans (fed) of irrigatedland. IDA has provided two credits to assist the Government in financingdrainage works: Credit 181-UAR of US$26.0 million for the tile drainage of950,000 fed in the Nile Delta and Credit 393-UAR of US$36.0 million for thetile drainage of 300,000 fed in Upper Egypt. Both credits are still on-going.To date a total area of 1,000,000 fed has been provided with tile drainagewith Government resources and IDA credits.

iii. The proposed third drainage project, (Upper Egypt Drainage II) wouldcomprise installation of buried tile field drains and collectors in 500,000fed, remodelling of existing and construction of new open main and branchdrains, construction of one pumping station and reclamation of 12,000 fed ofsaline and/or alkali land. A Bilharzia control component for extending theprogram over an additional area of 120,000 fed, has also been included. Thepresent project differs from the previous IDA drainage projects in Egypt intwo respects: the use of poly-vinyl chloride (PVC) corrugated plastic pipesfor tile drains instead of cement pipes, and the execution of the tile drain-age by contractors selected on the basis of international competitive bidding.Both measures are aimed at accelerating the rate of construction which up tonow has been slow. With this new approach, it is expected that the projectwill be completed in five years. Since tile drains cannot be installed beforeremodelling of the existing and constructing of new main open drains, only anarea of 10,000 fed is expected to be equipped with tile drains during thefirst year of the project. This will allow EPADP to gain experience in theuse of PVC pipes and to find appropriate solutions for technical details, tobe used in the rest of the area. The implementation rate would increase to70,000 fed in the second year and 140,000 fed in each of the third, fourth andfifth years.

iv. The project costs are estimated to be US$282 million of whichUS$276.7 million will be for the drainage works and US$5.3 million for theBilharzia control program. The foreign exchange component for the drainageworks is US$74.9 million while that for Bilharzia control is US$5.1 million,totalling US$80 million. The Government has requested USAID to finance theforeign exchange costs of the production of PVC plastic pipes estimated atUS$30 million. IDA and the Bank will finance foreign exchange costs of the

drainage works (US$44.9 million) and of equipment and materials for the ex-tension of the Bilharzia control program (US$0.9 million) plus the value ofapproximately 325 tons of molluscicide, to cover the cost overrun of the UpperEgypt Drainage I project (US$4.2 million).

v. The foreign exchange requirements financed by IDA and the Bank willbe for the procurement of equipment and materials and for the foreign costs ofcontracts for civil works (tile drainage and erection of pumping station) inaccordance with Bank guidelines. Civil works not financed by IDA or the Bank(remodelling and construction of open drains and buildings) will be awardedfollowing normal Government procurement procedures, which are satisfactory.

vi. EPADP will be responsible for executing all drainage works andfor operation and maintenance. The Ministry of Agriculture will, in coop-eration with EPADP, execute soil surveys and reclaim saline lands, and withits Extension Service, will assist in project implementation and maintenance.Bilharzia control operations will be administered by the Ministry of Health.EPADP will be supported by consultants, to be financed under the Upper EgyptDrainage I credit, who will advise and assist in planning and design ofdrainage works, in the training of local staff, in the reclamation of salineand/or alkali land and in water management practices.

vii. It is expected that the proposed drainage works will prevent thedecline in land productivity due to the lack of drainage, and will also raisethe present yields by 15% to 35%. The gross value of incremental produc-tion from the project at current farm gate prices, which are lower thaninternational prices, would rise to LE 21 million p.a. (US$53.3 million)within 9 years of project commencement, an increase of 28% over the presentlevel. Additional benefits will accrue from arresting the decline in landproductivity. The economic rate of return for the whole project, excludingBilharzia control, is estimated to be 29%. A sensitivity analysis, withforeign exchange valued at the official rate, lowers this rate of return to27%. Increasing investment costs and on-farm costs by 20% simultaneously witha decrease in value of benefits by 20% would lower the economic rate of returnto 20%.

viii. The project will arrest the decline in farmers' incomes arisingfrom decreasing land productivity without the project. As a result of theproject, the average annual income of about 147,000 farmers will increase byan estimated 51% from LE 232 (US$594) to LE 343 (US$878).

ix. The necessary assurances having been obtained during negotiations,the project is suitable for an IDA credit of US$40 million on standard termsand a Bank loan of US$10 million with a term of 25 years including 5 years ofgrace. The borrower will be the Government of the Arab Republic of Egypt.

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

I. INTRODUCTION

1.01 The Government of the Arab Republic of Egypt has requested furtherIDA and Bank assistance to help finance part of its high priority program toimprove drainage conditions throughout the country's irrigated area of morethan 6 miLlion feddan (fed), about 2.0 million of which are located in UpperEgypt. In addition, IDA and Bank assistance has been requested to completethe pilot program for the control of Bilharzia (schistosomiasis), commencedunder the first drainage project.

1.02 Improvement of drainage conditions in Egypt was started by the Gov-ernment in 1960. By the end of 1975, about 650,000 fed had been providedwith tile drains with Government resources, 440,000 fed in the Nile Delta and210,000 fed in Upper Egypt. In 1970, IDA made the first credit of US$26 mil-lion to Egypt (Credit 181-UAR) for the tile drainage of 950,000 fed in the NileDelta. The project was expected to be completed by mid-1976, but due to the1973 Middle East war and management problems, construction is about two and ahalf years behind schedule. By the end of 1975 only 340,000 fed had beenprovided wqith tile drainage. In 1973, IDA made a second credit of US$36.0million (Credit 393-UAR) for the tile drainage of 300,000 fed in Upper Egyptand for a pilot Bilharzia control program in an area of 900,000 fed in thethree northern governorates of Upper Egypt. Delays occurred again in theimplementation of this second IDA drainage project and by the end of 1975,only 10,000 fed had been provided with tile drainage. Thus, the total areaprovided with tile drainage by the end of 1975 by the Government alone andthrough the two IDA credits was 1,000,000 fed.

1.03 The proposed third IDA/Bank drainage project will provide an addi-tional area of 500,000 fed with tile drainage together with open main andbranch drains and one pumping station, necessary to remove drainage water.It will also reclaim 12,000 fed of severely saline and/or alkali land. Allproject drainage works will be located in the eight governorates of UpperEgypt (Map IBRD 12107). The project will also provide assistance for thecompletion and extension of the Bilharzia control program undertaken underthe Upper Egypt Drainage I project. Poly-vinyl cloride (PVC) plastic pipeswill be used for tile drains and construction of tile drainage works will beby contractors selected thirough international competitive bidding to acce-lerate thc rate of implementation under a strengthened management. Theproject wilt he completedl in five years.

1.04 The UJorld Food Program (WFP) is supporting Government's tile drainageoperations by providing food assistance. During the year. 1968-73 this assis-tnnce for Farmers in the NiLe Delta amounted to US$5.0 million; a second five-year assistance program costing US$25.0 million started in February 1973. In1975 WPF fturtlher agreed to make available food valued at US$15.5 million forfarmers in Upper Egypt. These programs, by providing nutritious food to

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laborers at low cost, reduce Government outlays for local costs of all drain-age projects.

1.05 With the previous and the present drainage projects it is expectedthat by the end of this project (1981) some 2,400,000 fed will be providedwith tile drainage, which represents about 40% of the total irrigated areain Egypt.

II. BACKGROUND

General

2.01 Egypt is a large desert country with a total land area of approxi-mately 1 million km2. The populated area is 35,850 km2 (3.6%) and the cul-tivated area approximately 28,120 k.m2 (2.8%). The cultivated area per capitais estimated to be 0.19 feddans and based on 1960 data, the cultivated area perfarm, for the country as a whole, is 3.7 feddans.

Population

2.02 Egypt has a population of 36.6 million (mid-year 1974) with a currentpopulation growth rate of 2.5% per annum. About 96% of the country is sparselypopulated. However, the remaining 4% located mainly in the Nile Delta and theNile Valley is densely populated, estimated to have over 1,000 persons per km2.The per capita GNP for the country in 1970 was US$210 and for agriculture theper capita GNP in the same year was only US$100. In 1974, the per capita GNPfor the country was US$280. The relative poverty level in rural areas of thecountry is estimated to be US$58 per capita.

The Agticulture Sector 1/

2.03 The agricultural sector is extremely important to the life and eco-nomy of the country. It provides 46% of employment opportunities, involves57% of the population, gives rise to 31% of the GNP and is responsible for75-85% of the foreign exchange earnings. During the 1955-65 period, agri-culturaL production increased at the rate of 3.5 to 4.0% annually. Around1965, agricultural growth declined to around 2% and has since remained atthat level with dire consequences. Concomitant with the declining rate ofgrowth, the demand for food has been rising due to an increase in populationand incomes. The net result has been a serious drain on foreign exchangebecause of the large food imports.

2.04 Food import costs over the last few years have risen sharply fromless than LE 100 milLion to over LE 500 million annually. Government sub-sidies to supply basic foods in urban areas at low prices and certain produc-tioln inputs such as fertilizers and pesticides to farmers at fixed priceshave also risen from about LE 50 million to nearly LE 500 million. In spiteof tlhis, food prices have risen 60% since 1967.

1/ See World Bank report No. 931b-ECT, dated March 18, 1976 and entitled,-"Egyptian Agriculture: Development Problems, Constraints and Alterna-tives".

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2.05 In 1970, the Aswan High 1)am was commissioned. The harnessingof the Nile River has enabled the farmers to shift from basin irrigationto perennial irrigation, permitting a more intensive use of the land. Thepresent cropping ratio in the eight governorates in Upper Egypt is between1.7 and 2.0. Moreover, water availability permitted the Government to em-bark on a program to reclaim desert land bringing the total to more than 6million feddans available for cultivation. The development of these newlands has not been as beneficial as anticipated.

2.06 The Land Reform act of 1952 and its subsequent amendments redis-tributed one-sixth of the farming area among small farmers and providedtenants with greater protection. As a result of land reform legislationin 1952, 1961 and 1969, ownership of land is widely held in Egypt. Fifty-seven percent of the cultivated land is in farms of less than 5 feddans.The maximum holding is 50 feddans, or 100 feddans for a family. Only 12%of the land (owned by 0.3% of the farmers) is in holdings of over 50 feddans.The establishment of cooperatives to which tenants and owners belong, and othersupport services such as the Extension Service were further moves by Governmentto improve the life of the farmers. Unfortunately, at the village level, thesesupport services have not been as effective as desired for a number of reasonssuch as complicated lines of authority, transportation limitations, pricingpolicy for agricultural commodities and the high degree of centralization ofpowers.

2.07 Growth in the agricultural sector since 1965 has been slow becauseof a shortage of capital, constraints on the land, government policies onprices and marketing of agricultural produce, regulated cropping patterns andseveral other factors.

2.08 Government plans for the agricultural sector for the five-yearperiod 1976-80 have not been finalized. The report "Egyptian Agriculture -Development Problems, Constraints and Alternatives," summarizes future govern-ment plans to the extent formulated to indicate that: (a) agriculture'spriority will rank behind infrastructure, industry and housing; (b) publicsector investments will increase in absolute amounts but decline as a propor-tion of total investments; and (c) agricultural growth is not expected to besubstantial.

2.09 Sustaining and improving land productivity is a prime requisite formaintaining and improving the life of the people. Recently, waterlogging andsalinity have become major constraints to maintaining and increasing landproductivity. These limiting factors to production are directly linked withdrainage. This has been recognized by government and the problem is beingattacked by the Ministry of Irrigation for tile drainage. The Ministry ofAgricuLtture is working on soil amelioration.

P'revioLus ID)A Drainage Projects in 1.gypt

2.10 The first I)A project (Nile Delta I)rainage I'roject) became effec-tive in 1970. IDA, through a credit of US$26.0 million, provided funds:(a) for equipment for the construction or remodelling of main open drains

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(1,700 km); (b) for equipment and erection of 11 new pumping stations; (c)

for tile making factories, tile laying machines, transport equipment, etc.

for tile drainage on 950,000 fed; and (d) for vehicles, workshops and

laboratory and office equipment. Up to the end of 1975 construction and

remodelling of main open drains had been completed on 560,000 fed., three

pumping stations had become operational while on four more the erection of

pumping units had started, and tile drains had been installed on 340,000 fed.

2.11 The second IDA project (Upper Egypt Drainage I) became effective in

1973. IDA, through a credit of US$36.0 million, provided funds: (a) for

equipment for the construction or remodelling of main open drains (1,640 km);

(b) for equipment and erection of 5 new pumping stations; (c) for tile laying

machines, transport equipment, etc. for tile drainage on 300,000 fed in six

Governorates of Upper Egypt; (d) for equipment for the reclamation of 20,000

fed of saline and/or alkali soils; (e) for vehicles, workshops, laboratory

and office equipment; and (f) for molluscicides, drugs and equipment for a

Bilharzia control program covering 900,000 fed. Up to the end of 1975 con-

struction and remodelling of main open drains had been completed on 133,000

fed., one pumping station had become operational while tender documents had

been prepared for the procurement of equipment and erection of the remaining

four, and tile drains had been installed on 10,000 fed. Satisfactory progress

has been made on the Bilharzia control program.

2.12 The slow performance in tile drainage has been due to the several

problems the two projects have faced. Among them the most serious have been

the lack of local funds and the shortage of engineers due to the 1973 war,

the shortage of cement for the production of cement tiles, the poor perform-

ance of local contractors and other managerial problems. However, during the

last year the Government has made sufficient allocations of funds to the

projects and the lack of local funds is no longer a problem. The shortage

of engineers no longer is a problem either as most of the engineers nominated

to EPADP have been released from the army. With these improvements and the

experience gained it is believed that the two ongoing projects will be com-

pleted by the end of 1979 and the end of 1980, respectively.

III. THE PROJECT AREA

General

3.01 The project area covers the eight governorates in Upper Egypt,

namely, Giza, Fayum, Beni Suef, El Minya, Asyut, Sohag, Qena and Aswan (Map

IBRD 12107). The proposed drainage area of 500,000 feddans was identified

by the Ministry of Agriculture and Land Reclamation, and the Ministry of

Irrigation as being urgently in need of drainage. The decision was based

on soil surveys and field observations of salinity, groundwater levels,

and crop performance.

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Climate

3.02 The project is located in a dry zone with a cool winter period ex-

tending from November through March and a hot summer season from May toSeptember. From north (Beni Suef) to south (Aswan) the weather becomesdrier and warmer. The coolest month of the year is January with an averagemean temperature of 12oC in Beni Suef to 16oC in Aswan. The warmest periodin the north is in July with an average mean temperature of 290C, whereasAugust is the hottest period in the south with an average mean of 340C. Themean annual rainfall in the north is 11.3 mm and only 1.5 mm in the south.Water for irrigation is supplied by the Nile, allowing the project area toenjoy a year-round growing season (Annex 1).

Topography and Soils

3.03 In the valley extending from Aswan to Cairo through the projectarea, the Nile flows through an old valley cutting between the rocky cliffsof the Libyan Desert on the west and the Arabian Desert on the east. Thewidth of the alluvial Nile plains from Aswan to Cairo varies from 2 to 20 kms.From the south northward, the absolute elevations of the plain surface declinefrom 86 m near Aswan to 11 m near Cairo. The topography is generally flatdue to centuries of sediment deposition during the annual inundation of thelands. The smooth terrain has been marred by excavations made by the removalof soil for brick making and road construction. Remnants of old, abandonedcanals used in basin irrigation are still seen. Topographic surveys in UpperEgypt have been extensive. Maps at a scale of 1:25,000 with ground level con-tour intervals of 0.5 meter, to 1:100,000 with ground level contour inter-vals of 1 meter are available.

3.04 Soils are formed from alluvial deposits and are generally fine-textured, tending to be coarser from Sohag upstream towards Aswan. The allu-vium varies from 4 to 15 m in thickness and overlies deep deposits of water-bearing sands and gravels. The alluvial soils are relatively fertile butwith intensive use and the curtailment of further deposition of sediment,nitrogen and phosphorous fertilizers are needed for high yields. Salinityis a common problem throughout the valley, and all indications are that thesituation is becoming worse with time.

Drainage Conditions and Irrigation

3.05 Within the project area, the present drainage conditions resultfrom the shift from basin to perennial irrigation that has been made possibleby the commissioning of the Aswan High Dam. Prior to the harnessing of theNile, after the flood period, the water table would gradually become loweruntil it reached 2 m or more below the soil surface. It would not rise againuntil the following year's flood. During the interim, farmers, except on afew farms with wells, never watered their fields. Howevcr, with perennialirrigation, farmers now irrigate their land frequently thrcughout the year.Since the clay soils in the project area have low permeability rates, thegroundwater levels have been rising over time especially in places where

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new outlets have not been installed. The drainage system in existenceduring basin irrigation prior to the changeover to perennial irrigation,has not been able to cope with this additional quantity of water. Moreover,seepage and deep percolation from the new irrigation canals have greatly con-tributed to a rise in the groundwater levels in many areas. Seepage of waterfrom fields that are situated at higher levels than adjacent lands, also addto groundwater level problems in the lower areas. The net result of thechange in groundwater level has been to create waterlogging conditions whichhave serious deleterious effects on root growth and development. The projectis designed to keep the water table in the soil profile to not less than 1 mfrom the surface. This would provide the proper environment for root develop-ment of all crops (Annex 2).

Salinity Conditions

3.06 Aside from waterlogging, soil salinity has also increased. Beforethe shift in water regime due to the control of the Nile floods, the annualinundation of the land would flush out the salts that built up in the soilprofile during the year. The clay soils most commonly found in the projectarea have a high capillary conductivity potential. There is a strong upwardmovement of moisture from the groundwater which is usually saline and thesoluble salts effloresce on the surface. The white, salt crust found inpatches is a common sight on many of the lands selected for tile drainage.With the installation of drainage facilities provided for in the proposedproject, the soluble salts will be flushed by irrigation through the soilprofile and removed with the excess water. While cotton has a high salttolerance (not in the germination state, however), all of the other cropshave medium (wheat, sorghum, maize, onions, berseem and most vegetables) tolow (beans, sugarcane) salt tolerance. Severely affected saline and alkalisoils in the project amount to approximately 12,000 feddans on which growthof crops has been impossible to maintain (Annex 2).

3.07 There is a definite correlation between the appearance and per-formance of the crops (cotton, sugarcane, grains, vegetables, fruits) in thefield and the drainage and salinity status of the soils. From Aswan Governo-rate through Giza Governorate, those crops on poorly drained and salinesoils were observed to be short, weak and chlorotic. In the same area, thosecrops on well-drained soils (due either to the inherently good drainageproperties of the soils, the high aspect of the land, or the provision ofdrainage facilities), were found to be tall, thick, growing vigorously, andwith leaves of deep green color.

3.08 Waterlogging and salinity have recently become the major limitingfactors to crop production in many areas. Without drainage facilities, ithas been estimated that average crop yields in the project area would declineby at least 30% over the next 35 years.

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Agricultural Production

3.09 A large number of crops are grown in the project area throughout

the year. Except for medium-long staple cotton, (1-1/8" to 1-3/8") and winter

onions, which are produced primarily for export, all of the crops grown are

for domestic consumption. Sugarcane, wheat, sorghum, maize, beans, vegetables,

berseem, oilseeds, lentils, and fruits such as oranges, grapes, and bananas

comprise the principal crops. The land used annually for cotton growing is

regulated by the government and it is the major crop in the northern part of

the project region, while sugarcane is the major crop in the south where

government sugar factories are located. Farming is intensive (cropping ratio

1.7-2.0) on small plots using perennial irrigation. The farmers use appro-

priate inputs such as fertilizers on most crops, and pesticides primarily on

cotton. Except for sugarcane, a two or three year crop rotation system is

practiced. Draft animals comprise the major source of farm power. Machinery

is used to a limited extent (Annex 4).

Population, Land Tenure and Farm Size

3.10 Within the project area, there are an estimated 147,000 farm fa-milies. The average family consists of six persons. About 34% of thle hold-

ings are operated by the owner, 38% are rented, and 28% are mixed, owned alld

rented. The average farm size is 3.4 feddans with 75% of the holders farming

on less than 3 feddans on only 25% of the total land area. An additional 20%

of the holders farm between 3 and 5 feddans covering approximately 30% of thle

land area. Thirty five percent are holding less than 1 feddan with the aver-

age being 0.5 feddans on 5% of the land. Except for cotton an(i sugarcane,

which are farmed in consolidated blocks, land fragmentation is one of the

major factors prohibiting the use of advanced production techniques such asfarm machinery for land preparation, sowing and harvesting. The Agrarian

Reform Law of 1952 and the subsequent amendments have given tenants a highdegree of security and limit land ownership to 50 feddans for single personsand 100 feddans per family (Annex 4).

AgriculturaL Support Services

3.11 The Ministry of Agriculture and Land Reclamation provides a largearray of agencies to support the farmers and promote agricultural develop-ment. The most significant agencies are the Agricultural Cooperative Organi-

zation and the Agricultural Extension Service. All farmers, owners or ten-ants, belong to their respective village farmers' cooperative society. TheCooperative furnishes farmers with credit (in kind) for seed, fertilizers

and pesticides. A limited amount of cash is advanced for other costs such

as wages for harvesting, and marketing cotton. The village cooperative isalso the main channel for marketing farm produce. The Extension Service has

trained University graduates at the District level to provide assistance in

the production, protection, marketing and storage of farm crops. Althoughthe matrix of agencies for meeting the farmers' needs exists, these support

services lack the required effectiveness at the village level. To improve theefficiency of the Extension Service, some vehicles, and other facilities willbe provided under the project (Annex 8).

Credit, Marketing, Transportation and Storage

3.12 Agricultural credit, more than 98% of it for seasonal crop expenses(loans up to 14 months), flow from the General Organization for Agriculturaland Cooperative Credit (GOACC) through about 130 branch ACC banks which inturn service about 4,000 village cooperatives. The banks also provide allrequisite farm inputs through the cooperative societies (Annex 9). A commis-sion of 4-1/2% p.a. on all loans is charged by the cooperatives. For croploans, fixed amounts per feddan in kind (seeds, fertilizer) and cash are cal-culated each year for each crop in each district, by consultation between theGOACC and technical sections of the Ministry of Agriculture. Input levels arebased on research findings, and credit is adequate to support present inputand production levels. Total lending for the country reached LE 81.4 millionin 1975, or about LE 8 per feddan of crops. Under the Bank's Fruit andVegetable Project and the Second Bank of Alexandria Project, consultationsbetween the Government and the Bank took place regarding interest rates andcredit policy in Egypt. The results of these consultations will apply alsoto the present project.

3.13 All seed cotton, specified proportions of wheat and rice outputmust be delivered through the cooperatives at prices fixed each year byGovernment. In addition, the Government sets offer prices for most othercommodities, many of which are also marketed through the cooperatives (Annex9). Three major Government-established organizations handle most exports ofedible crops and sugarcane is delivered to local factories. Many crops arestored in sacks in the open air, but deterioration is not a major problembecause of the dry climate.

3.14 The road and railway system, together with water transport on theNile, provide good connections with major consumption centers and ports, andcommunications within the long, relatively narrow project area are satisfac-tory. Marketing, transportation and processing facilities are adequate.

Agricultural Taxation

3.15 The land tax, which averages LE 3 - LE 4 per feddan, is leviedagainst estimated value of production from the land. A reassessment, whichtakes 2 to 3 years to complete for the entire country, is carried out everyten years. The tax is paid by the landowner, who has the right to increaserent by the same amount as any increase in tax in the case where a tenantworks the land. The land tax is levied for irrigation, main drainage works,health, and roads, and there has been an additional levy for defense purposesin recent years.

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IV. THE PROJECT

Objectives

4.01 The main objective of the project is to establish good drainage con-ditions on 500,000 feddans in Upper Egypt. The drainage works will compriseinstallation of field tile drains and drain collectors throughout the area,construction of new open main drains, remodelling of the existing drains anderection of one pumping station to serve an area where drainage by gravityis not possible. An estimated 12,000 feddans, now severely saline and partlyalkaline, will be reclaimed. The proposed drainage works will preventthe present decline in land productivity due to the lack of drainage, andwill result in a net increase of present yields by 15-35Z. The drain-age works will be executed by the Egyptian Public Authority for DrainageProjects (EPADP).

4.02 The present project differs from previous IDA drainage projectsin Egypt (Nile Delta Drainage Project and Upper Egypt Drainage I Project) intwo respects: the use for tile drains of Poly-vinyl chloride (PVC) corrugatedpipe instead of cement pipes, and the execution of the tile drainage throughinternational competitive bidding, both aimed at accelerating the rate ofconstruction which up to now has not been satisfactory. With the new approachit is expected that the project will be completed in five years.

Project Drainage and Reclamation Works

4.03 The project works (Annex 3) include:

(a) installation of about 50,000 km of buried field drainsof PVC corrugated pipes and 6,000 km of buried field col-lectors of cement pipes in the selected areas totaling500,000 feddans;

(b) deepening and widening of about 1,226 km of existing, and exca-vation of about 346 km of new open drains, involvingapproximately 23 million m3 of excavation;

(c) construction of one pumping station of a capacity of 3.5 m3/sec,including electric transmission line; and

(d) reclamation by leaching of about 12,000 feddans of salinesoils distributed throughout the area to be drained, in-cluding subsoiling and gypsum application in about two thirdsof this area where soils are alkaline.

4.04 The selection of the areas for tile drainage was made on the basisof present drainage conditions, possibilities for evacuation of drainagewater, and availability of maps and soil surveys. Tile drains will beinstalled at a spacing varying from 25 to 60 m (average 42 m) and at a depthof 1.4 m to 1.8 m. The laterals will be about 200 m long and will discharge

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into cement piped collector drains, which will evacuate the drainage waterinto open main drains. With the installation of tile drains the water tableis expected to fall to at least 1 m below the surface within two to three daysfollowing an irrigation and to 1.25 m subsequently. The above design criteriawill be reviewed during the first year of the project before final plans areprepared. Vertical drainage with tubwells is not recommended as the availabledata indicate that this type of drainage cannot be considered as an economicalalternative to the parallel drainage with covered pipes.

4.05 Because of the urgent need for accelerating the drainage programin Egypt and the recently observed scarcity of local labor, further mechan-ization of operations is necessary. Production of PVC pipes will be fullymechanized by using automatic plants for continuous production. Laying oftile drains will be accomplished by using the same trenching machines as usedfor cement pipes. Trenchless laying machines are not recommended because therequired depth of tile drains (up to 1.80 m) combined with the soil conditionsin Egypt (mostly clay soils with high moisture content) make doubtful thesuitability of these machines. However, if during the first year of theproject it is proved through tests that trenchless machines can be usedsuccessfully and economically, contractors will be allowed to use this type ofmachine in the remaining project area. For the piped collectors, specialheavy duty machines are recommended for excavation and laying. One of thesemachines has been purchased recently under the Upper Egypt Drainage I projectfor testing. If the results are satisfactory, the use of these machines willbe expanded. Excavation and remodelling of main open drains will be done withdraglines and excavators. Hand labor will still be used for manufacturingcement collector pipes (using semi-mechanized procedures), for excavation andremodelling of small open drains, and for laying the gravel filter.

4.06 The project will provide vehicles, equipment and materials fordrainage works, land reclamation, agricultural extension and for training.

4.07 Soil conditions and lack of field experience in laying PVC pipesin Egypt, need to be considered when formulating the tile drainage program.Since tile drains cannot be installed before remodelling of the existing andconstruction of new main open drains, only 10,000 feddans are expected to betile drained during the first year of the project. During this period andsubsequently, EPADP will:

(a) gain experience in the production and use of PVC pipes;

(b) test the efficacy and output of the tile laying machinesusing PVC pipes and cement pipe collectors;

(c) find appropriate solutions for the connection of PVC pipesto the cement pipe collectors, finalize depth, spacing andpipe diameter for tile drains, diameter and spacing ofopenings, type of filter, and type of manholes for thecement pipe collectors; and

(d) study and finalize procedures for the maintenance and cleaningof PVC tile drains and cement pipe collectors.

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The above studies will continue for at least two years and will be carried outwith the assistance of expatriate consultants. Assurances to this effect wereobtained at negotiations.

4.08 An evaluation of the effect on crop yields and soil properties ofdrainage works, completed under the two previous IDA financed projects, willbe undertaken by EPADP and completed within two years of the date of effective-ness. A similar evaluation will be undertaken for drainage works included inthe present project. Within one year EPAD will present to IDA and the Bank aprogress report on the evaluation activities which will include the data andpreliminary analyses thereon. Assurances on the above were obtained duringnegotiations.

Bilharzia Control

4.09 Within the project area, particularly in the northern region,Bilharzia is endemic. In Upper Egypt Drainage I Project, a program forthe control of Bilharzia, covering 900,000 feddans and about 3 million peoplehas been initiated. It consists of an integrated snail control programcoupled with chemotherapy for infected persons. The existing Bilharzia proj-ect comprises the area controlled by the Ibrahimia and Bahr Yousef canalscommencing at the Dairut Barrage which is downstream of the head regulator atAsyut on the Nile. About 120,000 feddans between Asyut and Dairut Barrages(see Map IBRD 12115), will be included in the Bilharzia program to permitthe whole area served from the Asyut barrage to be treated, thereby reducingthe possibility of reinfecting treated areas. The proposed credit and loanwill also include provisions for financing the cost overrun of the Bilharziacontrol component of Upper Egypt Drainage I project (Annex 12).

Status of Engineering

4.10 A detailed soil survey covering about one half of the project areaand a semi-detailed soil survey covering the remaining portion were conducted,and published in 1971. 1/ Additional work has been done subsequently and ap-proximately two-thirds of the project area has now been covered by a detailedsoil survey. The Ministry of Agriculture, during the first year of the proj-ect, will complete a detailed soil survey of the remaining one third of theproject area. Field investigations for the detailed design of tile drainagewill be conducted during project implementation by EPADP's existing designoffice for Upper Egypt. Detailed designs for the excavation and remodellingof open main drains have been prepared for approximately 40% of the projectarea. As the excavation and remodelling of open drains should be completed atthe end of the third year, the design for the remaining 60% of the area willbe prepared by EPADP during the first two years of the project. Final plansfor the pumping station will be prepared by the supplier-contractor to thespecifications and for the approval of EPADP.

1/ Soil Survey Study, General Report, August 1971, Ministry of Irrigation,ARE.

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Consulting Services

4.11 The Egyptian Government has been granted technical assistance fromthe Dutch Government for consulting services in the field of water managementand drainage of agricultural land. A joint panel of Dutch and Egyptian con-sultants has been set up to advise EPADP on technical problems related tothe implementation of the drainage program and to formulate a program of spe-cific investigations (drainage methods, establishment of monitoring drainagesystems, water management, etc.). The panel meets 3-4 times a year for aduration of 1-2 weeks. Emphasis should be given to water management studiesas the drainage problem in Egypt could be made less acute with proper wateruse for irrigation. EPADP will require additional advice and assistance inusing PVC pipes for tile drainage with cement pipe collector drains and fortraining local staff in the new techniques involved. Three full-time con-sultants will be required, each for a period of three years for this purpose,plus short-term specialists to meet other needs. No funds are provided underthe project for consulting services, as sufficient funds have been alreadyprovided for this purpose and not used yet under the Upper Egypt Drainage Iproject. Details and terms of reference for consultants are given in Annex 5.During negotiations, assurances were obtained from Government and EPADP thatno less than three consultants will be engaged by EPADP as and when needed fora period of three years, with qualifications and experience, and under termsand conditions of employment, satisfactory to IDA and the Bank.

Construction Schedule

4.12 The project will provide a sufficient number of excavating machinesto complete the excavation and remodelling of open main drains within the firstthree years. Laying of tile drains will commence during the first year with10,000 feddans and will continue with 70,000 feddans in the second year. Inthe third, fourth and fifth years of the project the annual rate of tiledrainage will reach 140,000 feddans. Construction of the pumping stationwould commence in the second year with the pumps being installed during thethird year. Reclamation of saline land will begin in the third year, follow-ing completion of tile drainage. The implementation of open and tile drainageworks is estimated to proceed as follows:

Calendar Year 1977 1978 1979 1980 1981 Total

Open drains (feddans) 170,000 170,000 160,000 - - 500,000

Tile drainage (feddans) 10,000 70,000 140,000 140,000 140,000 500,000

With the equipment provided under the project, the use of PVC plastic pipesand the use of foreign contractors through ICB for tile drainage, the pro-posed rates of construction are reasonable. However, the tile drainageinstallation rates could be adversely affected by delays in the constructionand remodelling of open drains and erection of the pumping station. There-fore, timely awards of contracts for open drains and pumping stations willbe made. Assurances to this effect were obtained during negotiations.Table 2, Annex 3 shows the overall construction schedule for drainage works

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in Egypt and Chart IBRD 15753 shows the implementation schedule of the pre-sent project, which was also agreed to by the Government during negotia-tions. EPADP is expected to review, in consultation with IDA and the Bank,its proposed drainage program for each year, taking into consideration totalareas drained under all ongoing projects during the preceding year, facilitiesand equipment available and other relevant factors.

Cost Estimates

4.13 The total project cost is estimated on the basis of end 1975 con-tract prices to be US$282 million excluding custom duties. The foreignexchange component of the project is estimated at US$80 million of which itis expected that US$30 million will be financed by the USAID, US$40 million byan IDA credit and US$10 million by a Bank loan. Cost estimates of equipmentand raw material for the production of PVC plastic pipes are based on priceinformation from the USA. Estimates of costs for PVC pipes produced in Egyptwith allowance for overhead costs, contractor's profit and risk, are based ondetailed calculations under Egyptian conditions. Cost estimates for construc-tion and remodelling of open drains and pumping station are based on recentunit prices of awarded contracts to local contractors under the Upper EgyptDrainage I project. Cost estimates for laying tile drains and construction ofconcrete pipe collectors by foreign contractors are based on current unitprices of awarded contracts to local contractors, adjusted for the PVC plasticpipes and allowing for overhead cost and international contractors' profit andrisk.

4.14 A physical contingency of about 10% for equipment and 15% for civilworks to cover changes in amount of work and unforeseen costs has been in-cluded. A price contingency also has been included, calculated on the basisof a price factor increase for equipment of 9% for 1976, 8% for 1977, and 7%p.a. for 1978-79; and for civil works of 13% for 1976, 12% for 1977, and 10%p.a. for 1978-81. Detailed estimates of the project cost are given in Annex 6and summarized below:

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ForeignLocal Foreign Total Local Foreign Total Exchange---- LE million ----- ---- US$ million ---- %

A. Production of PVCPipes

Equipment & materials 0.1 7.2 7.3 0.2 18.4 18.6 99Production cost 1.1 1.2 2.3 2.7 3.1 5.8 53Contingencies(a) Physical /1 0.1 1.0 1.1 0.4 2.5 2.9 86(b) price 0.8 2.3 3.1 2.1 6.0 8.1 74

Subtotal 2.1 11.7 13.8 5.4 30.0 35.4 85

B. Drainage WorksEquipment & materials - 7.0 7.0 - 17.9 17.9 100Civil works 41.1 4.8 45.9 105.1 12.3 117.4 10Administration 4.3 - 4.3 11.0 - 11.0 -Contingencies(a) physical /1 6.8 1.4 8.2 17.4 3.6 21.0 17(b) price 24.6 4.3 28.9 62.9 11.1 74.0 15

Subtotal 76.8 17.5 94.3 196.4 44.9 241.3 18

C. Bilharzia ControlEquipment - 0.05 0.05 - 0.1 0.1 100Molluscicides - 0.3 0.3 - 0.7 0.7 100Administration 0.05 - 0.05 0.1 - 0.1 -Contingencies 0.05 0.05 0.1 0.1 0.1 0.2 50

Cost overrun ofUpper Egypt Drain-age I Project /2 - 1.6 1.6 - 4.2 4.2 100

Subtotal 0.1 2.0 2.1 0.2 5.1 5.3 96

GRAND TOTAL 79.0 31.2 110.2 202.0 80.0 282.0 28.4

/1 Physical contingencies 10% for equipment and 15% for civil works./2 Cost for 325 tons of molluscicides.

Financing

4.15 The Government has requested USAID assistance to provide equipmentand materials and finance the foreign exchange cost for the production of PVCpipes at the rate required. The foreign exchange cost of equipment, and civilworks for drainage and of molluscicide and equipment for the Bilharzia control

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program (including the cost overrun for molluscicide of US$4.2 million ofthe Upper Egypt Drainage I Project) will be financed by IDA and the Bank.As a condition of effectiveness of the IDA credit and Bank loan, the Govern-ment will have entered into the USAID loan agreement.

4.16 The proposed financing plan is shown below:

LE million US$ million Project Cost

Cofinancier (USAID)

Foreign cost for productionof PVC pipes 11.7 30 10.6

IDA Credit

Foreign cost for drainage worksand Bilharzia control 15.6 40 14.2

IBRD Loan

Foreign cost for drainage worksand Bilharzia control 3.9 10 3.5

Government

Local costs 78.9 202 71.7

Total 110.1 282 100.0

Custom duties 3.1 8

The proposed IDA credit and Bank loan would contribute US$50 million of whichUS$44.9 million is for drainage works and US$5.1 million is for Bilharzia con-trol (including the cost overrun for molluscicide of US$4.2 million of theUpper Egypt Drainage I Project). The cofinancier (USAID) will contributeUS$30 million for the production of PVC pipes and the Government will providethe balance of US$202 million equivalent in local currency. In addition, Gov-ernment will bear the cost of custom duties estimated at US$8 million equi-valent. The total local funds required to be allocated by the Governmentfor the three Bank drainage projects (including the present) are shown inTable 14, Annex 6.

Procurement and Contracts

4.17 The procurement of equipment and raw material and the financing ofthe foreign exchange cost for the production of PVC plas.ic pipes will be donein accordance with the agreement between the cofinancier ai.d Government. Con-tractors will be required to provide experienced operators and mechanics totrain Egyptian staff in the use of the PVC manufacturing plants.

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4.18 Tile laying and construction of collectors will be implementedthrough international competitive bidding in accordance with Bank guidelinesfor procurement. The contractors who will participate in the bidding wouldbe invited to submit a list of new equipment they intended to import into thecountry for the execution of the contract in accordance with the constructionschedule. This equipment, if approved by the Government, would be importedunder temporary exemption from import duties, pursuant to the applicable law.The Government will advance to the contractors the approximate value of theequipment in the form of a mobilization award. Upon completion of the con-tract the Government would have the option to buy the used equipment if it isin acceptable condition at prices calculated on the basis of their residualvalue. In the event that Government and a contractor do not agree to anequipment transaction, the contractor could either sell the equipment pri-vately on the local market (in which case he will be required to pay importduties) or retain the equipment and remove it from the country. Contractorswould be required to provide evidence of their previous experience in therelevant field and furnish experienced operators and mechanics to trainEgyptian personnel in the use of the imported equipment. Tender documentsfor these contracts will be prepared by EPADP and reviewed by IDA and theBank. Assurances to this effect were obtained during negotiations.

4.19 Project equipment, apart from the contractor's equipment mentionedabove, will be procured directly by EPADP through international competitivebidding in accordance with Bank guidelines. International bids will also beobtained for the procurement of pumping equipment and installation of pumps,as well as for the equipment and materials for the electrical transmissionline which will be constructed by the Egyptian General Electricity Corporation.Local manufacturers or processors will be allowed a preference of 15% or theactual custom duties on imported components, whichever is the lower, when thedomestic value added is 20% or more. Assurances on the above procurementprocedures were obtained during negotiations. Details on project equipmentand materials are in Annex 8.

4.20 Contracts for construction and remodelling of open main drains, landreclamation and buildings will not be financed by IDA or the Bank and will beawarded to local contractors in accordance with the normal procurement pro-cedures of Government, which are satisfactory. Contracts will includeprovision for the delivery by EPADP to the contractors of imported equipmenttogether with adequate spare parts. The terms and conditions on which IDA/Bankfinanced equipment will be sold or lent to contractors have been establishedby EPADP for the ongoing IDA projects and found acceptable.

4.21 EPADP will prepare specifications and tender documents and willpresent them to the Bank for comment before issue. EPADP's evaluation of bidsand recommendations for award will be sent to IDA and the Bank for approval.Assurances to this effect were obtained during negotiations.

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Disbursement

4.22 The proposed credit of US$40 million and loan of US$10 million willbe disbursed over a five-year period (Annex 6, Table 13) as follows:

Drainage and Reclamation Equipment

- The actual foreign exchange costs of directly imported goods,representing about US$20.95 million.

Civil Works (Pump Station and Drain Laying)

- The actual foreign exchange expenditures in awarded contracts,and 25% of local expenditures under contracts that do not identifyforeign expenses, representing about US$20.30 million.

Equipment for Offices, Laboratories and Extension Service

- The actual foreign exchange costs of directly imported goods,or 100% of ex-factory cost if locally manufactured, or 80% oftotal cost if locally procured, representing about US$0.45 million.

Equipment for the Bilharzia Control Program

- The actual foreign exchange costs of directly imported goods,or 100% of ex-factory cost if locally manufactured, or 80% of totalcost if locally procured, representing about US$0.08 million.

Molluscicides for the Bilharzia Control Program

- The actual foreign exchange costs of directly imported goods, re-presenting about US$4.95 million.

Unallocated

- Representing about US$3.27 million.

Disbursement requests will be separate for drainage works and Bilharzia con-trol and will be supported by full documentation. Any savings after completionfor either of the two components of the project would be cancelled.

4.23 The proposed schedule of disbursement, given in Annex 6, Table 13,is summarized below. Government budget allocations, including custom dutieson project imports are also shown.

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Egyptian fiscal Year 1977 1978 1979 1980 1981 Total

Project Year 1 2 3 4 5----------- US$ million -------------------

Cofinancier (USAID)Production of PVC pipesfor tile drains 9.3 12.4 4.8 1.7 1.8 30.0

IDA credit and Bank loan(a) drainage works 12.8 11.7 7.5 6.3 6.6 44.9(b) Bilharzia control 3.0 2.1 - - - 5.1

Subtotal 15.8 13.8 7.5 6.3 6.6 50.0

Government contribution(a) drainage works /1 40.9 55.3 50.8 26.6 28.2 201.8(b) Bilharzia control 0.1 0.1 - - - 0.2

Subtotal 41.0 55.4 50.8 26.6 28.2 202.0

TOTAI 66.1 81.6 63.1 34.6 36.6 282.0_ = - -

Customs duties 3.9 3.3 0.8 8.0

/_ Including production of PVC pipes.

Environmental Impact

4.24 The implementation of the project will have a very favorable effecton the environment because of its land improvement and Bilharzia control pro-grams. The improvement in the drainage system will lower the water table,arrest yield decline, and improve plant growth. Moreover, it would restorecrops on a fairly large area of land which is now covered with tough grassesand shrubs (unproductive plants) due to excessive salinity and alkalinity.

4.25 The Bilharzia control component of the project will improve thehealth and well-being of the people. Through the use of molluscicides, thevector snails of schistosomiasis, now found in the canals and drains, willbe destroyed. Although the molluscicide to be used (Bayluscide) may kill somefish in the water when first applied, the fish can be eaten by humans withoutharmful effects. The chemical is biodegradable. The chemotherapy treatmentof the population infected by bilharzia will also help to reduce the incidenceof this serious debilitating disease.

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V. ORGANIZATION AND MANAGEMENT

Project Authority Responsible for Drainage Works

5.01 The Egyptian Public Authority for Drainage Projects (EPADP) estab-lished by Presidential Decree in 1973, will be the Government organizationresponsible for all drainage works (Chart IBRD 15754). EPADP is empowered tocarry out field investigations, planning, design, procurement, construction,budgeting and operation of project accounts. The responsibility for planning,design and execution of drainage works rests with the Vice Chairman for UpperEgypt, who is a member of the Board, assisted by a deputy who has the author-ity to act in his absence. A separate design office, attached to the UpperEgypt Vice Chairman, is responsible for detailed design of project works.Field supervision of drainage works in Upper Egypt will be carried out by theDirectors General of the eight Governorates of Giza, Fayum, Beni Suef, El Minya,Asyut, Sohag, Qena and Aswan. A mechanical department of EPADP is responsiblefor supervising the installation of the pumping station and transmission linesand for maintenance workshops, project stores and mechanical equipment of theAuthority.

5.02 Procurement will be the responsibility of the Administration andFinance Department of EPADP, and an ad hoc committee composed of the Chairman,the Vice Chairman for Upper Egypt and the head of the Technical Office ofEPADP will approve specifications prepared by the design office, and willalso evaluate bids and make recommendations for award. Assurances wereobtained during negotiations that a qualified and experienced chairman forEPADP and a qualified and experienced vice chairman for Upper Egypt willcontinue to serve at all times and on a full-time basis.

5.03 Soil studies, collection of data on crop yields, and the reclamationof saline and alkali lands will be undertaken by the Ministry of Agriculture.The participation of the Extension Service of the Ministry of Agriculture inthe Drainage program is essential. Extension agents should communicate moreeffectively with farmers on the subject of drainage and should collaboratewith the drainage maintenance units to assure farmers' cooperation. Assur-ances were obtained during negotiations that all measures necessary will betaken to provide adequate coordination between Extension Service and EPADPat National, Governorate and District level, including formulation of plansfor joint activities and initiation of programs to train extension personnelin all aspects of the drainage program. Receipt of evidence that the abovemeasures have been taken is a condition of effectiveness.

Supervision of the Bilharzia Control Program

5.04 The Ministry of Health will be responsible for the planning, execu-tion, and supervision of the Bilharzia control program. This new program, ac-ceptable to IDA and the Bank, will be prepared within six months of the dateof effectiveness. It will be an addition to the ongoing program now in forcein Upper Egypt Drainage I, and will have the same program director, other key

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personnel and plan of operation. The application of molluscicide will beclosely supervised by the Snail Control Department of the same ministry.The Ministry of Irrigation will provide all the required information such asflow rates in the canals and drains. The chemotherapy treatment of infectedpersons will be conducted by the Ministry of Health as well as all bioassaychecks and chemical analyses. Data on control effectiveness will be collectedby the supervision and evaluation unit, established in the Ministry of Health.This unit, maintained to the satisfaction of IDA and the Bank, will have theresponsibility of the supervision and evaluation of the Bilharzia controlprogram. Assurances on all the above were obtained during negotiations.

Operation and Maintenance

5.05 The contractors will be responsible for the maintenance of thepumping station and the tile drainage works during the first year aftercompletion. Following formal acceptance by EPADP, the completed works willbe handed over to the operation and maintenance units recently established.Assurances were obtained during negotiations that the necessary funds, staff,equipment and transportation facilities for the maintenance of all drainageworks will be provided by the Government.

5.06 In order to facilitate the maintenance of tile drains and collectors,40 drainage maintenance equipment units will be provided under the project.Each unit comprises flushing pump and engine, hoses and other similar equip-ment and tools.

5.07 Operation and maintenance costs for drainage works have been revisedto reflect recent cost increases. The annual O&M cost for drainage pumping 1/is now estimated at LE 0.63 per feddan (US$1.60); for maintenance of opendrains, LE 0.70 per feddan (US$1.80); and for maintenance of tile drainage, LE0.63 per feddan (US$1.60). In total, the annual O&M cost for the projectarea of 500,000 feddans is estimated at LE 680,000 (US$1,747,000) (Annex 7).

Services and Training

5.08 For planning, design of drainage works, supervision of constructionby contractors and administration, the central and regional offices of EPADPwill require additional technical staff. It is estimated that 40 civil en-gineers, 100 technicians, 12 mechanical engineers and 30 mechanics and elec-tricians will be required in addition to the existing staff for project im-plementation. No difficulties are anticipated in recruiting these personnel,as more engineers have been recently released from the army. In addition,EPADP pays to the field engineers a special field allowance plus an annualbonus to attract them to work in the Authority. Assurances were obtainedduring negotiations that the existing policy for incentives to EPADP staffwill be continued.

1/ Applies to only 29,600 feddans.

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5.09 Because of the lack of experience of local staff in the new drainagetechnology adopted with the present project, contractors of PVC pipe plantsand laying of tile drainage, and suppliers of pumping station equipment will berequired to train the local staff in the operation, maintenance and repair oftheir equipment. To train engineers and technicians of the project in tiledrainage practices, and operators and mechanics in the proper operation andmaintenance of the project equipment, EPADP will implement a training program,and within six months of the date of effectiveness will present it for reviewby IDA and the Bank. A training center will be established in Upper Egypt bythe Government and training equipment will be provided under the project.Instructors for the training courses will comprise experienced Egyptian en-gineers, consultants to EPADP and contractors' personnel. Assurances on theabove were obtained during negotiations. No funds are provided under theproject for training abroad, as sufficient funds have been already allocatedfor this purpose under the previous two drainage projects.

Cost Recovery

5.10 The following provisions will be made for recovery of project costs:

(a) In accordance with the October 1971 irrigation and drainagelaw (No. 74), the capital costs of installing field tiledrains, plus a 10% administrative charge, will be recoveredfrom beneficiaries, whether owners or tenants, by annualinstallments over a period of not more than 20 years, thefirst installment being due not later than three yearsfollowing completion of project works;

(b) The maintenance costs of field tile drains will be recoveredthrough the land tax, which will be reassessed within twoyears of completion of drainage works on project lands.

Assurances were obtained at negotiations that the above provisions will bemade for recovering project costs. It is expected that the Government, withinone year will undertake and complete a study of the possibility of adjustingrecovery charges periodically to ensure recovery of capital, operation andmaintenance costs of tile drainage works with interest. This study will takeinto account changes in prices, farmer's incentives and ability to pay. Therewill be no recovery of the capital and maintenance costs of the main opendrainage network and pumping stations, which will be financed from generalrevenues. Farmers contribute heavily to general revenues through the adminis-trated prices for agricultural products, which are considerably lower thaninternational prices.

5.11 Of the total project cost of US$282 million, an estimated US$151million, or 54%, will be recovered from beneficiaries in the annual install-ments mentioned above. This represents the total estimated cost of PVC pipeproduction, laying of PVC pipe and cement collectors, and land reclamation,with a 10% administrative charge added to the total. It is estimated thatincreases in the land tax will be sufficient to recover the annual operationand maintenance costs of tile drains of about US$0.8 million.

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Accounts and Audit

5.12 A cost-accounting system in the EPADP will be set up as requiredin the previous IDA-financed drainage projects. An assurance was obtainedat negotiations that a similar cost-accounting system will be instituted forthe current project within six months of the date of effectiveness of thecredit and loan.

5.13 Separate project accounts will be established and maintained by theEPADP for drainage works and by the Ministry of Health for the Bilharzia con-trol program. These accounts will be audited annually by the Government'sCentral Organization for Accounting and Audit, and copies of each auditreport in English will be submitted to IDA and the Bank within four monthsafter the end of each Egyptian fiscal year. Assurances to this effect wereobtained at negotiations.

VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FARM INCOME

Cropped Area, Yields and Production

6.01 The present project will arrest the steady and persistent declinein yields due to waterlogging and salinity. It will also bring about asubstantial increase in agricultural production on the 500,000 fed that willhe drained. At full development, yield increases due to the project areexpected to stabilize at 15 to 35% above present levels.

6.02 Estimates of present and projected production of the major cropsin the project area are presented below. Additional details are in Annex 4.

With Project Without ProjectPresent Year 10 Onwards Year 10 Year 35

---------- 000 tons ---------------------

Cotton (lint) 31 39 28 21Sugar Cane 1,596 1,891 1,441 1,117Wheat 117 162 105 82Maize 198 252 179 139Sorghum 178 229 161 125Onions 51 71 46 36Beans and other

Legumes 53 74 48 37Vegetables 332 421 300 232

…'--------------- '000 Feddans -

Total Area of 874 895 750

--------------- % of Project Area --------------

Cropping Intensity 1.75 1.79 1.50

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Markets and Prices

6.03 No problems are foreseen in marketing the additional output ofvarious crops (details are in Annex 9). Additional wheat will partly sub-stitute for large expected imports. For sugar, Egypt has experienced a changefrom a situation of modest net exports to a significant level of net imports,and additional project output will help to restore the former situation.Additional onions will be exported to European markets, assisting the countryto arrest the recent decline in exports resulting from decreased production.Increases in cotton production will be readily absorbed both on the exportmarket, where Egyptian cotton has a high reputation, and for domestic textilemanufacture, which has taken up an increasing proportion of cotton output inrecent years. Additional maize, sorghum, legumes and vegetables will be ab-sorbed locally, with some vegetables (particularly tomatoes) adding marginallyto exports. No problems are foreseen with storage, processing and transporta-tion of the additional project output.

6.04 Prices for farm inputs and outputs of the project are based oncurrent farmgate prices received in the project area (Annex 9, Tables 4and 5). The markets are subject to extensive Government control, and localprices, both at the farmgate and retail, are generally significantly belowthose encountered in the international market. For economic analysis, localprices are adjusted based on projections provided by the Bank's EconomicAnalysis and Projections Department, making allowances for known subsidiesand also incorporating effects of a shadow foreign exchange rate (Annex 11,Table 2).

Producer Income

6.05 At full development of the project (about 3 years after installationof drainage structures for any individual farmer), the annual net return of afarmer with a 3.1 feddan owner-operated holding will have increased from LE 291(US$745) to about LE 376 (US$963), while for a 1.7 feddan tenant holding thenet return would have increased from LE 132 (US$338) to LE 176 (US$451). Sincewithout the project crop yields and incomes would decline, these increasesunderstate the total benefits accruing to farmers as a result of the drainageworks. Illustrative budgets for model farms are presented in Annex 10.

VII. BENEFITS AND JUSTIFICATION

Aggregate Economic Return

7.01 The project will give rise, at full development, to a stream ofbenefits whose annual incremental net economic value is estimated to be LE 38million (US$64 million). This represents the increased crop productionrealized by improved drainage on about 488,000 feddans of land, together withnew crops grown on 12,000 feddans of reclaimed land (previously unproductive),with a deduction of incremental operating costs involved. In addition, theproject will arrest declining production on the same lands, and the net annualeconomic value of this is estimated to be LE 14 million (US$25 million) by

- 24 -

year 10 and LE 48 million (US$82 million) by year 35. All increments anddecrements to crop production have been valued with forecast world marketprices adjusted to farm gate levels using the parallel market rate for for-eign exchange at the time of appraisal (LE I = US$1.70) (Annex 11, Table 2).

7.02 The economic rate of return, based on the above benefits and a 35year project life, is estimated to be 29%, using the parallel market rate forforeign exchange. If the benefits were decreased by 20%, and simultaneouslyboth the project investment costs and on-farm incremental costs were increasedby 20%, the economic rate of return would fall to 20%. The rate of return ishigh because of the nature of the project, conceptually an exercise in deferredmaintenance. When a sensitivity analysis is performed using the official ex-change rate (LE 1 = US$2.56) the economic rate of return falls to an estimated27% (Annex 11).

7.03 Labor required to implement project works and services is esti-mated to be approximately 9.4 million mandays during the five year projectimplementation period, with a continuing need for about 0.3 million mandaysper annum for operation and maintenance. On farms, the project could increaselabor use by about 12%, or 5 million mandays per year at full development,mainly during the harvest periods. An increase of a further I million mandayscould be associated with the development of 12,000 feddans of land currentlynot in crops (Annex 11).

Beneficiaries

7.04 The project is expected to benefit about 147,000 farm families orabout 882,000 persons, mainly occupying small farms. It is estimated thatpresent farm incomes, after deduction of taxes and charges, are about LE 291(US$745) per annum for owner-cultivator families and about LE 132 (US$338) fortenant families, in the area to be tile drained. The relative poverty levelin rural areas of Egypt is estimated to be US$58 per capita. About 50% of thefarmers in the project area are estimated to have incomes at present less thanthis figure. As a result of the project, farm incomes after 10 years (3-4years for individual farmers) will be raised to LE 376 (US$963) per annum forowner-cultivator families and LE 176 (US$451) for tenant families, from drain-age works alone. Further benefits will accrue to farmers whose presently un-cropped land will be restored to production. Without the project, significantdeclines in farm incomes over present levels would be experienced.

VIII. AGREEMENT REACHED AND RECOMMENDATIONS

8.01 During negotiations, agreement was reached on the following prin-cipal points:

(a) During the first year of the project EPADP will install PVCpipe drains in an area of about 10,000 feddans for the pur-pose of carrying out, with the assistance of consultants,technical and costing studies which will last for at leasttwo years (para 4.07);

- 25 -

(b) Contracts for the purchase of goods or for civil works fortile drainage and erection of pumps will be procured throughinternational competitve bidding in accordance with Bankguidelines. EPADP will take all steps required on its partto award all contracts in such a way as to ensure the timelyexecution of the project (paras 4.12, 4.18 and 4.19);

(c) Both the post of Chairman of EPADP and the post of Vice-chairman for Upper Egypt will be filled at all times byqualified and experienced persons on a full-time basis (para5.02);

(d) The Government will provide the necessary funds, staff, equip-ment and transportation facilities for the maintenance of alldrainage works (para 5.05);

(e) The Government will make suitable arrangements to ensure therecovery from the beneficiaries of: (i) the capital costsof installing field tile drains, plus a 10% administrativecharge, by annual installments over a period of no more than20 years, the first installment being due not later than threeyears following completion of project works; and (ii) themaintenance cost of field tile drains through the land tax,which will be reassessed within two years of completion ofdrainage works on project lands (para 5.10);

(f) A cost-accounting system in the EPADP will be set up, as re-quired in the previous IDA-financed drainage projects, withinsix months of the date of effectiveness of the credit andloan (para 5.12); and

(g) Separate project accounts will be established and maintainedby the EPADP for drainage works and by the Ministry of Healthfor the Bilharzia control program (para 5.13).

8.02 Conditions of effectiveness of the credit and loan are:

(a) The Government will enter into a loan agreement with USAIDfor the procurement of equipment and materials and for fi-nancing the foreign exchange cost of the production of PVCpipes for tile drainage at the rate required (para 4.18);and

(b) The Government will take all measures necessary to provideadequate coordination between the Extension Service of theMinistry of Agriculture and EPADP, at National, Governmentand District levels (para 5.03).

- 26 -

8.03. The project is technically feasible, economically sound and finan-cially viable. Having received the necessary assurances, the project issuitable for an IDA credit of US$40 million on standard terms and for a Bankloan of US$10 million for a term of 25 years, including a 5-year graceperiod. The borrower will be the Government of the Arab Republic of Egypt.

ANNEX 1Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Climatological Data

General

1. The entire country of Egypt lies in the temperate zone between 220and 320 north latitude. It is part of the vast desert belt which extends inNorthern Africa from the Atlantic Coast eastward through Saudi Arabia. It isa dry, arid country with sub-tropical temperatures prevailing throughout theland. The Nile, flowing from the southern region to the Mediterranean, formsthe ribbon of life for the country. People and crops are confined to the east-ern and western side of this strip of water. The deserts found on both sidesof the Nile valley provide a warm and rainless climate with pronounced diurnalchanges.

Rainfall

2. The project site is located in Upper and Middle Egypt. The averagerainfall is highest in the northern part of that region. Beni Suef Govern-orate in the north averages about 11.3 millimeters, most of which comes inthe winter period (see Table 1). In the southern area in Aswan Governorate,the average rainfall is negligible, amounting to only 1.5 millimeters a year.Although the average rainfall is practically nil, occasional "storms" cancause severe erosion.

Temperatures

3. The summers are very hot in the day, but relatively cool at night.The winters are relatively mild, with some periods of hot weather, and tendto be windy. Dust storms are frequent, particularly in the southern areas insuch places as Aswan Governorate.

4. The temperature seldom climbs above 400C in the summer daytime andrarely goes below 80C on winter nights. The mean temperature in Beni Suefranges from 11.80C in January to 28.6 OC in July (see Table 1). In Aswan,the mean temperature extends from 16.10C in January to 34.10C in August, giv-ing a yearly average mean temperature for Beni Suef of 21.30C and for Aswan26.90C.

ANNEX 1Page 2

Relative Humidity

5. The mean annual relative humidity tends to decrease from the north inBeni Suef where it is 56%, to the south at Aswan where it is 31%. In BeniSuef, December is the month with the highest mean relative humidity reaching70% while the lowest of 41% occurs in May. In Aswan, December is also themonth with the lowest mean relative humidity of 20%.

Crop Influence

6. The temperate climate with warm days and relatively cool nights pro-mote plant growth when moisture (irrigation and/or drainage) does not becomea limiting factor. Such cool climate crops as cabbage, wheat and beans thrivein the winter. On the other hand, perennial and annual temperate and semi-tropical crops such as oranges, grapes, bananas, cotton, tomatoes, and sugarcane, flourish throughout the year.

ANNEX 1Table 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Climatological Data

- - - - Beni Suef- - - - - - - - - - - -Aswan- - - - - - - -Mean Mean

Mean Relative Mean RelativeRainfall Temp Humidity Rainfall Temp Humidity

Month in mm C° % in mm C° Z

January 0.5 11.8 64 0.1 16.1 43

February 2.7 13.8 57 0 18.0 34

March 1.8 16.6 52 0.2 21.6 28

April 1.3 20.7 47 0.4 26.7 28

May 0 25.6 41 0.8 31.6 20

June 0 27.6 44 0 33.6 21

July 0 28.6 50 0 33.9 24

August 0 28.3 55 0 34.1 25

September 0 26.6 60 0 31.4 29

October 0.1 24.4 60 0 28.9 33

November 0.2 18.4 66 0 23.4 41

December 4.7 13.2 70 0 18.2 46

Mean Annual 11.3 21.3 56 1.5 26.9 31

March 26, 1976

ANNEX 2Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Soils and Need for Drainage

Available Soil Data

1. The areas being considered in Upper Egypt Drainage II Project arefor the most part an extension of the areas selected in Upper Egypt DrainageI Project. As such, the general soil properties are essentially the same asidentified in the Appraisal Report for Upper Egypt Drainage I. The projectincludes the balance of 199,000 feddans of the total area (600,000 feddans)of soils originally identified by the Ministry of Agriculture and Ministry ofIrrigation as being most urgently in need of tile drainage plus an additional(301,000 feddans) recognized recently by the Ministry of Irrigation as beingseriously in need of drainage. The Ministry of Irrigation with its ownresources completed 101,000 feddans of the original 600,000 feddans.

2. During 1962-66, detailed soil and land classification surveys werecarried out for the governorates in Zone VI namely, Beni Suef, El Minya, andAsyut approximately 50% of the project area. By early 1971, the detailedsoil survey for Sohag and semi-detailed surveys for Qena and Aswan, allin Zone VIII, were completed. Detailed soil surveys have been made in ZonesVII and III. The system used in the soil survey and land classification wasadopted by the Soil Survey Section of the Soils Department of the EgyptianMinistry of Agriculture with slight modification of the system used by theUnited States Bureau of Reclamation. The land classification concentrated onevaluating the production capacity under the existing irrigated farming con-ditions and cropping system by observing topography, drainage characteristicsand appearance of the crop.

Detailed Surveys

3. In the detailed surveys, soil profile observations were made in each30-50 feddans. Soil samples were taken for laboratory analysis and when awater table was present at the time of sampling, water samples were alsoanalyzed. The land classification was essentially a land productivity class-fication, and not a taxonomic soil classification, concentrating on the depthof profile, texture of topsoil and subsoil, height of water table, surface andsubsurface salinity, exchangeable sodium content of the surface and lowerhorizons, and the appearance of the crops. The major problem with this systemis the fact that it represents conditions only at the time of the survey al-though the status of the soil in respect to water table, salinity and alkalinityvary at times. For example, it was noted that although the saline soils were

ANNEX 2Page 2

not too extensive in some areas and the high water table was observed only inrelatively limited areas, the presence of mottling and gleization in some of thestudied profiles indicate that the areas that need drainage are much largerthan those that had high ground water during the field study. Since thesurvey, many changes in water table depth, salinity and exchangeable sodiumlevels have occurred. With the exception of these changes, the maps areotherwise accurate.

Semi-detailed Surveys

4. Results of the semi-detailed surveys are considerably less reliabledue to the low sampling density of 1 sample in 750 to 1,000 feddans. Basemaps were used at a scale of 1:25,000 and distances between traverses wereabout 1 km. The areas covered by semi-detailed surveys need to be classifiedat detailed survey level prior to design of tile drainage systems.

Mapping Units

5. Mapping units used for the land classification delineated eight soilprofile types, although fewer types existed in most areas. These units wereas follows:

Unit I - Dark brown light clays throughout the profile (150 cm)which in the absence of salinity were usually given aproductivity rating of Class 2.

Unit II - Dark brown light clays to 50 cm overlying a coarsertextured subsoil, usually sandy loam. These permeablesoils were rated Class 1.

Unit III - Dark brown light clays with a gradual transition with depthto clay loam, silty clay loam or loam. Productivity wasrated as Class 1 or 2.

Unit IV - Similar to Unit I but lighter in texture, generally clayloam. Productivity potential rather better than Unit I.

Unit V - Pale brown light clay or clay loam overlying a coarsertextured subsoil, generally sandy loam. With moderate togood permeability this unit has a high productivity poten-tial and is considered Class 1.

Unit VI - Very dark brown or dark brown clay loam throughout witha good permeability; these are the best soils in theproject area but occur only over a small area. They areconsidered Class 1.

ANNEX 2Page 3

Unit VII - Very permeable sandy loam to loamy sand soils. Theproductivity potential is Class 2 or Class 3.

Unit VIII - Sandy soils ocurring only in Qena Governorate, consideredClass 2 or Class 3.

The Need for Drainage

6. The need for drainage facilities stems from the change in irrigationpractices due to the harnessing of the Nile River. Prior to the commissioningof the Aswan High Dam, the river would overflow its banks from August toSeptember and then recede. At the same time the groundwater level would riseand fall to 2 m or more below the land surface. There was usually no furtherirrigation by the farmers once the flood period was over, except for somefartns with wells. Since the control of the Nile, perennial irrigation hasbecome the practice and water is added to the land frequently throughout theyear. Because of the low infiltration rates of the clay soils, the ground-water levels have been building up over time, especially in places where nonew outlets have been provided. The natural or existing system of drainagehas proven to be incapable of discharging the additional amounts of water nowbeing used. Furthermore, seepage and deep percolation from the irrigationcanals hiave significantly added to the rise in the groundwater levels through-out the year. Also, the many hundreds of small pumping stations that used topump and raise water from the wells for perennial irrigation in some areasare nio longer needed and they are not operating. This drawdown effect on thegrounLdwater level that used to take place has thus been eliminated.

7. The net result of the change in groundwater level has been to createwaterlogging conditions in many areas which have serious deleterious effectson root growth and development. The project is designed to keep the watertable below the soil profile by not less than 1 m from the surface.

Salinity Control

8. Closely associated with drainage and waterlogging is the problemof saliniity control. With the shift in water regime, salinity problems havealso increased. Prior to the control of the Nile River, the annual inundationof the valley would flush the salts that were built up in the soil profilesdturing the year through the soil layers into the groundwater and out intothe Nile River waters. Since drainage has been impeded, as described above inparagraph 6, the degree of salinity tends to build up due to the climate inthe area and the soils. The climate fosters a high evapo-transpiration ratefor plants growing on these soils and the reduction of moisture by the plantroots tends to increase the concentration of the salts in the root zone.Secondly, the clay soils frequently found in the project area have a highcapillary conductivity potential. Thus with a strong upward movement ofmoisture from saline groundwaters (paragraph 10), faster than the salts areremoved by irrigation, very highly saline conditions are created in the soilprofiLe. In many areas, these salts effloresce on the surface providing anoticeable white crust.

ANNEX 2Page 4

9. The Nile waters are suitable for irrigation having relatively low

salinity and alkalinity. This is evident in the water analysis which showa low salt concentration of 171 ppm and a high of 308 ppm total dissolvedsolids, with a sodium absorption ratio (SAR) of 0.70 to 1.47. However, thesalt build up in the groundwater can be extremely high as shown by groundwater

analysis in El Minya Governorate, the area where approximately 20% of theproject will be carried out. (See below).

Groundwater Nile River Water(El Minya) (Cairo)

Total Dissolved Solids (ppm) Low 489 Low 171High 15,440 High 308

Sodium Absorption Ratio (SAR) Low 1.30 Low 0.70High 32.30 High 1.47

10. It is expected that with proper drainage facilities being installed,and a systematic leaching program, the extremely saline soils will have theirexcess salts leached from the profile into the drains and removed along withthe excess water. It is anticipated that with good drainage and a low watertable, salinity control will be an integral function of the normal irrigationpractice.

Crop Responses

11. There is a definite correlation between the appearance and perform-ance of the crops (cotton, sugarcane, grains, vegetables, fruits) in thefield and the drainage and salinity status of the soils. From Aswan Gover-norate through Giza Governorate, those crops on poorly drained and salinesoils were observed to be short, weak and chlorotic. In the same area, thoseon well-drained soils due either to their inherently good drainage properties,the high aspect of the land, or being provided with drainage facilities, werefound to be tall, thick, growing vigorously, and with leaves of deep greencolor.

12. Waterlogging and salinity have recently become the major limitingfactors to crop production in many areas. Without drainage facilities, ithas been estimated that average crop yields in the project area would declineby at least 30% over the next 35 years.

General Soil Properties

13. The predominant clay mineral found in the soils is montmorillonite,with a cation exchange capacity of approximately 60 milli-equivalents (meq)per 100 grams. All the soils contain calcium carbonate in amounts varyingfrom 1 to 10%. The pH ranges from 7.1 to 8.1. In the fine textured soils,the structure is very coarse prismatic with sub-angular blocky microstructure.Below 150 cm structure becomes massive and permeability below this depth inheavy textured soils is usually very low. Coarse textured soils generallyhave a weak structure.

ANNEX 2Page 5

14. Wlhile salinity and alkalinity to some degree are common problemsthroughout the irrigated lands in Lower and Upper Egypt, it has been estimatedthat approximately 12,000 feddans are completely unproductive in the projectarea due to salinity and alkalinity. In the former case, the electrical con-ductivity (EC) is more than 4 mmhos/cm at 25oC. In the latter case, the ECmight be greater than 4 mmhos/cm at 25oC and the Sodium Absorption Ratio (SAR)obtained from saturated soil extracts show exchangeable sodium percentage tobe greater than 15. For example, some soils in the Kom-Ombo area have an ECas high as 41.6 mmhos/cm in the first 20 cm of the soil profile and an SAR of73.8. In El-Minya, some saline and alkali soils were found to have an EC of29.4 and an SAR of 40.4 in the top 30 cm of the soil profile.

Reclamation of Saline Soils

15. For those soils which are only very saline and not alkali, leachingthe excess salts from the soil root zone could make them productive. The pro-cedure would be to flood the fields to a depth of 20 cm and add water period-ically until the salts have been leached to an acceptable level. Lifting therequired volume of water from the irrigation canals onto the fields cannotbe done by the average farmer with his traditional water lifting device. Inorder to overcome this problem, the project will make available the necessaryportable power pumps, and suitable tractor and trailer units for transportingthe pumps (Annex 6, Table 12). With an adequate drainage system, the saltsshould be removed from the soil profile as leaching is continued throughthe irrigation of crops that will be growing on the land.

Reclamation of Alkali Soils

16. In cases where the soils are alkali (SAR over 15%), it will be neces-sary to resort to other measures in order to reclaim these soils and make themproductive. This would include:

Applying gypsum at a determined amount per feddan and incorporatingit in the upper 30 cm of the soil profile using a moldboard plough.The amount of gypsum required should provide sufficient calcium toreplace the absorbed sodium. While soil analysis will indicate theexchangeable sodium percentage in the soil from which the approximateamount of gypsum required could be determined, field tests should beconducted to establish the precise amount of gypsum needed in eacharea. The alkali soils should be leached first before determiningthe gypsum requirements, as part of the alkali fraction would bereduced by leaching.

17. Fortunately, gypsum is available in Egypt. It is mined west of theNile Delta near Suez. All along the Nile, it could be barged to specificproject sites and trucked to the fields. To facilitate this operation, theproject will provide 60 hp wheeled tractors and 4-ton trailers fitted withdistributors to transport the gypsum to the fields to be treated. Belt con-veyors will also be provided for loading and off-loading the gypsum. Crawlertractors (180 hp) equipped with heavy duty moldboard ploughs and subsoilerswill also be provided (Annex 6, Table 12).

ANNEX 2Page 6

18. At the present time, gypsum is supplied to farmers for soil reclama-tion at a Government subsidized price of LE 0.81 per ton. Within the project,the farmer would be responsible for paying for the spreading, ploughing, sub-soiling and pumping of water, estimated to cost LE 13.0. Adding to this thehighest estimated cost of gypsum (LE 16.10) the total reclamation cost will beLE 29.1 per feddan. Repayment at no interest will be spread over 20 years.However, 10% administration fee would be charged, makiig the annual paymentabout LE 1.60 per feddan. In the event that only leaching is required, farmerswould be charged for pumping over a two-year period which would amount to LE1.60 per feddan.

19. Land reclamation, as distinct from tile drainage which is carriedout by the Ministry of Irrigation, is done by the Ministry of Agriculture.

Criteria for Selection of Project Area

20. The Executive Authority for Projects on High Dam Waters and TileDrainage in Upper Egypt in its Project Study for the Ministry of Irrigation,selected a total area of 600,000 feddans as being in need of drainage, spreadover six governorates between Beni Suef and Aswan. The selection was basedon soil survey data, especially observed soil salinity and groundwater levels.From the above area, 300,000 feddans where drainage was urgently needed, wereselected for the on-going Upper Egypt Drainage I project. An additional areaof 101,000 feddans has been equipped with tile drains by EPADP with its ownresources. The remaining area of 199,000 feddans plus an additional area of301,000 feddans, identified later being in urgent need of drainage havebeen selected for the present Upper Egypt Drainage II project.

21. Areas in which tile drains are urgently needed were selected onthe basis of one or more of the following criteria:

- soil salinity exceeding 4 millimhos per cm;

- groundwater levels observed within 150 cm of the landsurface during the soil surveys;

- low-lying areas including enclosed depressions locatednext to newly developed lands at higher elevations;

- piezometric pressure of the aquifer reaching an averagethroughout the year to within 200 cm of the land surface;at such locations observations indicated water tablesremained less than 150 cm below the land surface duringprolonged periods.

Procedure for Selection

22. Prior to field inspection, areas selected on the above criteriawere delineated on maps showing soil units and on topographical maps whichlocated the irrigation canals and existing and planned drainage channels(scale 1:25,000, vertical contour interval 50 cm).

ANNEX 2Page 7

23. A field inspection was made of all the originally selected areas.Maps prepared during the "office" study described above were compared withactual field conditions and proved generally accurate. However, salinityhad extended beyond those areas identified as saline during the 1962-1966detailed soil survey. Substantial variations were noticed in some instancesbetween maps of the 1971 semi-detailed soil survey and actual field condi-tions. Where possible, such discrepancies were adjusted. Following neces-sary readjustments of the boundaries an area of 500,000 feddans for theUppet Egypt Drainage II Project has been selected. The distribution ofthe selected areas for tile drains over the entire project area is tabulatedin Annex 3, Table 1.

24. Maps have been prepared showing the locations of the selected areas(Maps IBRD 12107 to 12114 and 12280). Further boundary adjustments are ex-pected to be necessary when detailed pre-drainage field investigations havebeen undertaken.

ANNEX 3Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Project Works

General

1. The project works will include:

(a) installation of tile drains and buried pipe collectors throughout

the 500,000 feddan project area;

(b) deepening and widening of about 1,226 km of existing open main

and branch drains and construction of about 346 km of new drains

needed to discharge effluent from the tile drained areas, in-

volving approximately 23 million m3 of excavation;

(c) construction of one new pumping station at Menshat El-Dahab required

to lift the drainage effluent in low-lying areas in the northern

part of the project for discharge into a main drainage canal and

subsequently into the Nile River; and

(d) reclamation of about 12,000 feddans of severely saline land dis-

tributed throughout the project area by leaching; about 8,000

feddans of these lands are also alkaline and would require ap-

plication of gypsum and subsoiling for successful reclamation.

2. The project will also provide vehicles, equipment, workshops,

training and expansion of the existing office facilities for EPADP, and mollus-

cicides and equipment for the Bilharzia control program.

Open and Main Branch Drains

3. The existing network of open main and branch drains was designed to

keep the water level in the drains at 1.5 m below ground surface, which, under

the present cropping intensity and water utilization, is considered inadequate.

The flow in these drains is at present often impeded due to inadequate main-

tenance and insufficient slope. To ensure adequate capacity and sufficient

depth for providing free-fall discharge from the pipe collectors, these drains

will require widening and deepening to lower the water level in the drains by

1 m to 2.5 m. Existing bridges, syphons, flumes and other structures will

have to be either extended or rebuilt.

4. Those parts of the project areas which were converted from basin to

perennial irrigation during the last decade lack adequate drainage facilities.

New open main and branch drains, including necessary structures, will be con-

structed under the project.

ANNEX 3Page 2

5. Excavation of open drains under the project will be carried outby local contractors who have considerable experience in this type of work.

Manual labor will be used for excavating drains having a bed width of lessthan 2 m. All other excavations will be done with draglines and excavators.Care has to be taken where drains pass through very sandy soils, where therisk arises of slippage and caving in of the side slopes. Excavation inlayers, allowing sufficient time intervals for the adjacent soils to drainand proper protection of the inner toes and side slopes of the profiles,will be necessary, and close supervision would be required.

6. The length of new open drains and open drains for remodelling isestimated at 346 km and 1,226.5 km respectively. The approximate volume ofearth work is 10,400,000 m3 for the new drains and 13,000,000 m3 for theremodelling. Details on open drains works are shown in Table 1.

Tile Drainage

7. The design of the tile drainage system will provide for a reductionof the water table to at least 1 m within 48-72 hours following irrigation andto 1.25 m before the next irrigation. To achieve this requirement, the tiledrains will be installed at an average depth of 1.5 m and the drain spacing,dependent on local soil hydraulic characteristics, is expected to average 42 m.

8. Under the project, a network of field tile drains or laterals willbe installed at a depth of 1.4-1.8 m below land surface, with 1.4 m as the min-imum depth at the upper end of the first lateral. This depth will increaseprogressively for the subsequent laterals at the same gradient as the collectoruntil it reaches 1.5 m and will then remain constant for the remaining laterals.To permit installation of the laterals to these depths, without lowering thecollector and the branch and main drains, the first few laterals will have tobe connected directly to the collector pipe at its center line while the re-maining laterals could use a header pipe connection to the collector.

9. The spacing of tile drains will be designed according to the phys-ical property of soils determined by field investigations. It is estimatedthat the spacing would vary between 25 m and 80 m. Each lateral will be about200 m and never over 300 m long and each collector about 1 km to 1.5 km long.Altogether there will be about 50,000 km of lateral tile drains and 6,000 kmof collector pipes in the project area. Details on the areas to be providedwith tile drainage are shown in Table 1.

10. The above described design criteria concerning the depth andspacing of tile drains would be revised later in light of field investigationsto be carried out by EPADP with the assistance of the consultants. These in-vestigations will aim at refining the design criteria for tile drainage inorder to obtain the best technical and economical solution in each case.

ANNEX 3Page 3

11. PVC corrugated pipes of 80 mm diameter will be used for tile drains

unless tests during the first year of the project prove that smaller diameter

could be safely used. The pipes will be manufactured locally in Egypt by im-

ported pipe manufacturing plants consisting of an extruder, corrugator and

puncher. Three plants of a capacity of 1,000 m/hour of pipes will be required.

The raw material (resin powder) required for the production of PVC pipes will

be imported. It is estimated that the required quantity of raw material for

the production of PVC pipes for 500,000 feddans is 16,000 tons. The selection

of PVC plastic pipes instead of cement pipes was made on the basis of the fol-

lowing criteria:

(a) Experience in the past showed that transportation of cement

pipes, from the tile making factory to the field is a very ex-

pensive and difficult operation requiring considerable equip-

ment and effort. The problem becomes more acute in Upper Egypt

where transport distances are much more important than in

Lower Egypt. With PVC pipes, one truck of 7 tons can transport

at least 10,000 meters of pipes.

(b) The output of tile laying trench machines is higher with PVC

pipes than with cement pipes (1,800 m/day against 1,200 m/day,

respectively).

(c) Shortages of cement occur frequently in Egypt with negative ef-

fects on tile drainage operations: even with imported cement the

problem would not be completely solved because of the long dis-

tance of the project area from the Port of Alexandria.

(d) The cost of tile drainage with PVC pipes is less than with cement

pipes (Annex 6, Table 5).

(e) There is no risk of breakage with PVC pipes during transportation

while breakage of cement pipes averages 10%.

Because of their advantages, PVC pipes have replaced all types of other pipes

in drainage works in Western Europe. According to recent estimates, some 500

million meters of PVC pipes have been successfully installed in European coun-

tries during the recent 10 years.

12. As is explained in the previous paragraph, transportation cost for

PVC pipes is negligible. Therefore, fixed rather than mobile plants for the

production of PVC pipes are recommended. The choice was on the ground that

mobile units are more expensive and not as durable as fixed units. Moreover,

the transfer of a fixed unit to a new location can be done easily at a low

cost.

13. Because of lack of experience with such plants in Egypt, provision

will be made in the contracts for training local staff in the operation and

maintenance of the plants. One plant will be imported and installed during

the first year of the project for the production of PVC pipes for the 10,000

ANNEX 3Page 4

feddans to be completed in the first year. During the second year, two moreplants will be installed. At the beginning of the third year of the project,all three plants will be fully operational in order to produce PVC pipes atthe rate of 140,000 feddans per year.

14. For the laying of tile drains, contractors will be selected throughinternational competitive bidding. This request was made by EPADP and ac-cepted by IDA in order to accelerate the rate of implementation of the project.Trenching machines rather than trenchless have been selected for laying tiledrains because the required depth of laying (up to 1.80 m) combined with thesoil conditions in Egypt (mostly clay soils with high moisture content) makedoubtful the suitability of trenchless machines. However, if during the firstyear of the project it is proved through tests that trenchless machines can beused successfully and economically, contractors will be allowed to use thistype of machine in the remaining project area. Trenching machine output withPVC pipes is expected to be increased to 1,800 m per day. Thirty-three newmachines together with other equipment and spare parts (Annex 8) will be im-ported by the contractors to maintain the required maximum rate of implementa-tion of 140,000 feddans per year.

15. A gravel filter envelope will be placed around all tile drains.This will be done to provide an additional drainage area around the tiledrain which would assure a minimum drainage function in case of blockageof the pipe and to accelerate the entrance of water into the pipes. Thegeneral application of gravel filter will be revised in light of the resultsfrom field tests to be carried out in the area to be implemented in thefirst year of the project. Past experience has shown that the gravel usedfor filters in the on-going drainage projects in Egypt is not appropriatelygraded and, in some cases, pebbles of up to 10 cm in diameter are beingused. It is obvious that with this grade of gravel there is little or nofilter function. The size of pebbles recommended by most of the drainagespecialists is between 2 and 10 mm in diameter. It seems that this parti-cular grade of gravel is difficult to be found in Egypt, and for thisreason, four gravel crusher plants of a capacity of 25 m3/hour each will beprovided under the project. The gravel crushing operation will be includedin the contract for tile drainage. It is estimated that crushing willincrease the cost of gravel by LE 0.200 per m3 (US$0.50) which representsonly 1.5% of the total gravel filter cost (Annex 6, Table 9).

16. Collectors for tile drainage will continue to be concrete pipeswith diameters varying from 20 to 50 cm. Manholes will be located at inter-vals of 180 to 240 m along the collectors for maintenance purposes. Theslope of collectors will be 3-4 cm per 100 m. Construction of collectorswill be included in the contract for tile drainage. The excavation oftrenches and laying of collector pipes up to 30 cm in diameter will be madeby using special collector laying machines. One of these machines has been

ANNEX 3Page 5

imported recently in Egypt and is now under test. For the larger diametersof pipes, the excavation of trenches will be carried out by manual laborsupplemented by backhoe excavators when required. Ten new collector layingmachines and ten backhoe excavators, together with other supporting equip-ment and spare parts will be imported by the contractors for this operation.Concrete pipes for collectors will be produced by small local factories asis done for the on-going projects. Backfilling of tile trenches and collec-tors will be made with four-wheel tractors with rear mount grader blade, tobe also imported by the contractors.

Pumping Station

17. The effluent from the buried tile and open drainage system willeither be discharged into the Nile by gravity or lifted by pumps wherenecessary. One small new pumping station would be constructed at MenshatEl-Dahab in the El Minya Governorate. The pumping station will controldrainage water from catchment basins totalling 30000 feddans. The pumpingstation will have two electrically driven pump units plus one standby unit.The total discharge capacity will be 3.5 m3/sec with a maximum head of 2.0m. The maximum load of the station will be 110 kw. The power transmissionline will also be included in the project.

Reclamation of Saline and Alkaline Soils

18. About 8,000 feddans in the project area are alkaline soils andwill require gypsum. Application rates for gypsum will vary depending onthe amount of alkali present. Field tests will have to be carried out toestablish the amount of gypsum required for each individual area. The appli-cation will be followed by subsoiling across the installed tile drains toimprove lateral water movement to the drains. Gypsum is available from theNile Delta and Suez Canal areas and will be transported by barge on the Nile.Transport from off-loading sites and distribution will be by tractors equip-ped with trailers and distributors. Crawler tractors will be used for plow-ing and subsoiling.

19. In these saline alkali soils and on a further 4,000 feddans whichare saline but where no alkali is present, excess salts would be removed byleaching. The land will be flooded and the water level maintained untilsalts in the crop root zone had been reduced to acceptable levels. Thismay take several months in the more severely affected soils. Portable pumpswill be used to raise the water from irrigation canals. Wheeled tractorswith trailers will be used to transport the pumps, fuel and lubricantsbetween pumping sites.

Implementation Schedule

20. The implementation schedule of the project is shown in the chartIBRD 15753. Table 2 shows the overall construction schedule of the previousand present Bank drainage projects in Egypt.

ANNEX 3Table 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Tile Drainage Areas andExcavation and Remodelling ofOpen Main Drains and Branches

Catchment Tile Drainage New Drains RemodellingGovernorate Area Area Length Volume Length Volume

(feddan) km m3 km 3

GIZA Masanda North 10,000 - - 54.0 735,000Rahawy North 10,000 - - 60.0 620,000Rahawy South 10,000 - - 46.0 560,000

FAYUM Zenket 6,000 - - 22.0 107,000Roos I 5,000 - - 10.0 50,000Roos II 4,000 - - l0.0 50,000Gouref 5,000 - - 14.5 80,000Tohbar-Agameen 6,000 - - 13.5 56,000Shahat 12,000 - - 54.5 555,000Hosan 2,000 - - 13.0 130,000

BENI SUEF Ehnasya 30,000 - - 93.0 1,700,000Mosa-Aref 7,000 - - 8.5 40,000Hakamna-Beni Bikheet 8,000 - - 20.0 85,000Koshesha 20,000 - - 103.0 1,552,000Masanda South 20,000 - - 116.0 1,460,000

L MINYA Abu Raheb 10,500 - - 73.0 495,000

Beni Mazar 27,000 12.0 213,000 149.0 1,399,000South Menshat ElDahab 29,600 60.0 1,200,000 - -Kabkab 38,000 60.0 1,521,000 67.0 617,000

ASYUT Abu Gabal 18,000 - - 24.0 398,000West El Kosia 14,400 19.0 264,000 - -El Badary 14,000 - - 49.0 225,000Badari 15,000 - - 48.0 225,000

SOHAG West Tahta 6,000 19.0 396,000 - -Akhmin 15,000 - - 54.0 740,000Sohag 26,000 29.0 740,000 - -El Baliana 8,640 - - 26.0 305,000Akhmim 10,000 - - 23.0 198,000

QENA Hammad 28,000 49.0 1,300,000 - -Abu Tesht 14,400 69.0 3,890,000 - -Keft 18,500 - - 20.0 100,000Arment 10,000 6.0 190,000 12.0 100,000Hegaza 19,000 9.0 230,000 - -Komer 10,000 10.0 400,000 8.0 120,000

ASWAN South El Sebaeya 7,200 - - 18.0 121,000Kom Ombo West 5,760 4.0 40,000 17.0 175,000

TOTAL 500,000 346.0 10,384,000 1,226.0 12,998,000

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Overall Drainage Program

Actual ProgramItem 1965-73 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985

…'-----------------------------------------'000 feddans…-------------------------------------

Government Resources 610 10 30 - - - - 210 230 370 370 370 370

Nile Delta Project 200 50 90 140 150 160 160 - - - - - -

Upper Egypt I Project - - 10 60 70 70 70 20 - - - - -

Proposed Upper - - - - 10 70 140 140 140 - - - -Egypt II Project _ -

TOTAL 810 60 130 200 230 300 370 370 370 370 370 370 370

Cumulative 870 1000 1200 1430 1730 2100 2470 2840 3210 3580 3950 4320

Of which Bank Projects 250 350 550 780 1080 1450 1610 1750 - - -

May 1976

ANNEX 4Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Agriculture

General

1. The agricultural sector is extremely important in the life andeconomy of Egypt. It involves 57% of the population, provides employmentopportunities for 46%, generates 31% of the GNP and is responsible for ap-proximately 75 to 85% of the export earnings.

2. The Nile flowing northward provides two distinct agriculturalregions: the Nile Delta, an alluvial fan; and the Nile Valley, formed byalluvial soils being deposited annually on the east and west banks of theNile. In general, agriculture is more advanced in the Nile Delta than inthe Nile Valley. The project is located in the Nile Valley referred toas Middle and Upper Egypt.

Crops and Seasons

3. Due to its mild, temperate climate and available water, the NileValley enjoys a year-round growing season. Traditionally, the agriculturalyear begins in November and is divided into three periods: winter, summerand "nili" (the fall season, named after the Nile flood). The major wintercrops are wheat, barley, Egyptian clover or berseem, broad beans, lentils,winter vegetables, winter onions and flax. These crops are usually plantedduring October through December and harvested from April through June. Themajor summer crops are cotton, maize, sorghum, millet and summer vegetables.They are generally planted from March thrugh June and harvested from Augustto November. The nili crops consist of maize, sorghum and vegetables whichare planted in July and August, and harvested from October through December.Sugar cane is perennial and is usually planted in January and February andharvested about 15 months later. The subsequent ratoon cuttings are harvesteda year apart afterwards. An array of fruits such as oranges and other citrus,mangoes, grapes, and bananas are grown in permanent groves. Dates, the secondmost important fruit after oranges, are found scattered around villages andcultivated fields and along canals.

Rotations

4. The general practice is a 2 or 3-year rotation. In either case,farming is now intensive and the land usually supports a variety of cropsthroughout the year giving a cropping ratio between 1.7 and 2.0. The areas

ANNEX 4Page 2

devoted to cotton and sugar cane are regulated by the government and theytend to be farmed in relatively large consolidated blocks. The other cropsare distributed in small plots.

5. In the 2-year rotation, the land is divided into two equal units.Block one is planted to clover in the winter and after about two cuttings,the summer crop cotton is planted. The second block is divided into twoequal parts, one of which is planted to clover and the other to wheat orbarley. These two blocks are subsequently planted with summer crops suchas maize, sorghum, summer vegetables or millets. In the second year, therespective crops are planted in the opposite plots. In the 3-year rotation,the land is divided into 3 equal blocks. Block one is planted to clover,from which two cuttings may be had, before planting the field in March tocotton. Block two is planted in winter to clover or beans and the thirdblock to wheat or barley. The latter two blocks are subsequently plantedwith summer crops. This sequence of crops is rotated among the three blocksin the second and third year to complete the rotation. On farms where sugarcane is grown, the sugar cane remains in the same plot of land for at least3 years. The balance of the farmers' land is divided into plots in whichwinter, summer and nili crops are cultivated.

Farm Practices

6. All farm plots are now able to engage in perennial irrigation sincethe commissioning of the Aswan High Dam. Farmers' fields are provided withwater distributed through a vast network of irrigation and drainage canalsoperating under gravity. In the majority of cases, water is lifted from themain canals to the plots through traditional water wheels, sadoofs or waterscrews. Since there is no water charge to the farmer, there is a tendency toover-irrigate when water is furnished.

7. The major source of farm power is the buffalo and cattle. Theycarry out land preparation, threshing of grain, lifting of water and trans-porting of goods and people. Machinery is being used to an increasing ex-tent in some agricultural operations needing draft power such as plowing forsugar cane, pumping machines for irrigation and motor sprayers for pest con-trol on cotton. The donkey is very common and is used primarily to transportgoods and people. Sheep of the fat-tailed, coarse wool type, and goats arefound in the area, usually in herds controlled by nomads. They roam fromplace to place gleaning the fields and depositing their excretions. Sheepand goats' milk is used primarily for making cheese and their flesh is valuedhighly. The raw wool produced is used mainly for making carpets. Pigeonsare housed in crude to sophisticated houses and provide a good income forraisers. Poultry are common, securing their food by scavenging the homesteadand nearby fields.

8. Organic and chemical fertilizers are used extensively and farmersare fully aware of their benefits.

ANNEX 4Page 3

Agricultural Production

9. Recently, the country has been divided into 14 agricultural zonesbased on'homogenous soil types and common cropping patterns. This procedureshould improve the planning capabilty of the Ministry of Agriculture and LandReclamation. Under this system, the project area falls into Zone VI coveringthe Governorates of Beni Suef, El Minya and Asyut; Zone VIII which includesSohag, Qena, and Aswan; Zone VII encompassing Fayoum Governorate; and Zone IIIwhich includes Districts in Giza, Qualinbiya and Menoufya Governorates. Totalcrop production and current average yields for all crops in all zones are foundin Table I and the distribution of crops in each zone is found in Table 2.All zones are large producers of food crops for domestic consumption such asgrains, vegetables, legumes and fruits. Each zone cultivates products forthe export market. Zone VI produces most of the cotton and Zone VIII most ofthe onions. Sugar cane, a very significant crop for the domestic market, isgrown primarily in Zone VIII. All zones have a high cropping ratio, 1.7 to2.0.

10. The cropping pattern in the project area (Table 3) is a direct re-flection of the crop distribution in the four zones, and was estimated by astraight-forward pro rata calculation from the cropping pattern of the totalcultivated areas in all zones. Calculations were based on 500,000 feddansminus 12,000 feddans (saline and alkali soils) currently not in crops. Thepresent and projected cropped area, yields and annual production data in theproject area are found in Table 4. The present average yields used for theproject area are those determined by the previous mission that made a de-tailed survey in the project area (most of the present project area is an ex-pansion of the sites selected in Upper Egypt Drainage I Project). A recentreview (1974-75) by the Economics Institute of the Ministry of Agricultureto determine yields from farmers' plots in the project area reported essen-tially the same figures except for onions and sugar cane. With these twocrops, the yields were respectively 43 and 19% lower than the first data andthe present yields used. These lower yield figures for sugar cane and onionswere not used because it is believed they reflect other conditions in addi-tion to waterlogging and salinity, specifically diseases such as streak andratoon stunting on sugar cane and white rot (Sclerotium cepivorum) and downymildew (Alternaria porri) on onions. The increases in yields due to drainagewere estimated to be 35% for wheat, legumes and onions, 25% for maize,sorghum, cotton, vegetables and clover; and 15% for sugarcane. These in-creases are reasonable since the new levels reached would be approximatelythe same as the average yields now being attained in the areas outside theproject area but in the same zones (Table 1). Moreover, the percentageincreases are within the ranges found from data on effects of drainage onyields in farmers' fields that were recognized as being in need of drainagebefore they were provided with tile drains (Tables 6, 7, 8, and 9).

Population and Land Tenure and Farm Size

11. Within the project area, there are an estimated 147,000 farmfamilies. About 34% of the holdings are operated by the owner with an aver-age of 3.1 feddans, 38% are rented with an average holding of 1.7 feddans

ANNEX 4Page 4

and 28% are mixed (owned and rented) with the average for this group being5.4 feddans. The average farm size is 3.4 feddans with 75% of the holdersfarming on less than 3 feddans. Except for cotton and sugar cane, whichare farmed in consolidated blocks, land fragmentation is one of the majorfactors prohibiting the use of advanced production techniques such as farmmachinery for land preparation, sowing, and harvesting.

12. The Agrarian Reform Law of 1952 and the subsequent amencments havegiven a tenant a high degree of security and limit land ownership to 50 fed-dans for single persons and 100 feddans per family. These laws have broughtabout a redistribution of the cultivated land. However, based on the situa-tion as shown in the 1961 Census for the six southern governorates, 75% ofthe landowners (owning less than 3 feddans each) own only 25% of the totalland area, while 6% of the owners (owning more than 10 feddans each) own al-most 50% of the total land area (Table 5).

Production Restraints

13. Restraints to agricultural production fall into two categories,physical and physiological. The most significant where this project is con-cerned is providing the proper physical environment for root growth. This isdirectly related to drainage and salinity. The second, largely physiological,is the response of the entire plant on the land once given the opportunity tohave a healthy root system. The factors in this category that have been iden-tified are: losses from diseases and insects, poor water management, and in-adequate timely land preparation for crops. Improvements in the breeds, feed-ing and general maintenance of small and large livestock would also enhanceoutput and productivity in the agricultural sector.

Responses to Drainage

14. With the harnesssing of the Nile and the shift to perennial irriga-tion, the water table has been rising in many soils and waterlogging andsalinity problems have become prevalent and critical in a number of areas.(For more details, see Annex 2). The relief of waterlogging conditionsthrough tile drains can have great effect on yields. Although analyticaldata and field tests are limited, some records show increases stated to bedue only to drainage to be substantial. For example, studies of averageyields in farmers' fields 3 years before and 3 years after installation oftile drains in several villages in El Minya, Beni Suef and El Fayoum Gover-norates show increases for cotton to be 14 to 100%, for wheat 19-100%, formaize 10-100% and for onions 30-50%. (See Tables 6, 7, 8, and 9).

15. In a study to investigate the influence of plastic and concretetile drainage materials on the water table level and yield of clover, a fieldexperiment was undertaken at Mahalette Mousa, Kafr El-Sheik Governorate in1971. Increase in yields of berseem over the first cutting was for PVC106 to 114% and concrete 89 to 99% (Table 10). In the third cut, the yield

ANNEX 4Page 5

increase over the first cut was 89 to 99% for PVC and 79 to 97% for concretedrains. Although there were differences between the materials in.the in-crease in yields, these differences were reported to be not statisticallysignificant.

Agricultural Support Services

16. Support to the farmer in the Project area is provided primarilythrough agencies attached to the Ministry of Agriculture. In particular,these are the Agricultural Cooperative Organization, the Agricultural CreditBank, the Agricultural Cooperative Credit Organization, the AgriculturalExtension Service and the four agricultural research stations (Sids, Mallawi,Shandoweel and Matoons) located near the project area in Upper Egypt. Thesestations are involved with the breeding and seed propagation of superior,locally adapted varieties, and research on cultural practices. In addition,agricultural engineers from departments other than the Extension Serviceattached to the office of the Governor in each governorate serve as ExtensionAgents. There are other services in the Department of Agriculture and LandReclamation that backstop the total agricultural program with direct andindirect support to the farmers (Table 11).

17. All farmers, regardless of their status, belong to a villagefarmers' cooperative society. Through the services of the cooperative orga-nization, a farmer receives credit to help finance his crop production. Mostof the credit is in kind for seeds, fertilizers, and pesticides; but somecash advances are made for other farm costs such as wages for harvesting, andmarketing cotton. Aside from the help rendered in crop production, the vil-lage cooperative is the main agency for marketing crops.

18. It is obvious that the institutions to meet the farmers' needs doexist. However, at the village level, these support services lack the effec-tiveness desired. This has been due to problems such as complicated lines ofauthority, pricing policy, and a high degree of centralization. Furthermore,in practice the cooperatives' main activities have been to transmit govern-ment crop requirements to the farmers, provide the inputs for the desiredcrops, ensure the collection of these crops and maintain the government-established price relationships in the agricultural sector.

19. In the project area, the Extension Service has not been as effi-cient as desired largely because of lack of transportation, and inadequatetraining aids, especially those relating to drainage. Sufficient staff isalso an important factor. At present there are no Extension personnel atthe village level although there are plans to put personnel at this level inthe future. To meet the transportation needs of the Extension Service in theproject area, vehicles would be provided for under the project.

20. To improve the efficiency of service, a proposal has been made toEPADP and the Ministry of Agriculture which, if implemented, should make theExtension Service more effective and facilitate the operation of EPADP at thevillage level. This proposal states that: (a) seminars be initiated forEPADP and Extension personnel at the governorate level to acquaint each other

ANNEX 4Page 6

with their respective roles and to explain how Extension could assist in theEPADP program; (b) committees, consisting of Extension and EPADP personnel,be established at Cairo, each governorate and district level in which planscould be formulated for fostering EPADP's program in each village; (c) atraining program be established to train Extension personnel in all aspectsof the drainage program to enable the Extension Agents to communicate moreeffectively with farmers; (d) the Extension Service collaborate with the main-tenance units to be established in EPADP to assure farmers' support and par-ticipation; and, (e) extension information material be developed specificallyfor the drainage program. A strong effort should be made by the ExtensionService to teach farmers how to irrigate their fields more efficiently and toreduce overwatering, on important factor contributing to the drainage problem.

21. The extension staff in zones VI and VIII in the project area is givenbelow:

Gov. Hdqtrs. District Level VillageGovernorate Inspectors Agents Agents Agents

Beni Suef 1 4 7 0El Minya 1 9 20 0Asyut 1 15 24 0Sohag 1 3 16 0Qena 1 5 21 0Aswan 1 4 5 0

Total 6 40 93 0

The districts vary according to governorate, being 4 in Aswan where agricul-ture is low as compared with Qena and Sohag which have high production in 10and 11 districts, respectively.

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Production Area and Yields in Project Region - 1972-74 Average

Zone VI Zone VIII Zone VII Zone IIICrop Area Yield Area Yield Area Yield Area Yield

(1,000 F) (tons) (1,000 F) (tons) (1,000 F) (tons) (1,000 F) (tons)

Cotton 343.0 0.32* 112.0 0.36* 74.0 0.23* 69.0 0.36Wheat /1 210.0 1.5 236.0 1.2 76.0 1.2 80.0 1.6Sugarcane 26.0 37.6 166.0 36.7 - - 3.0 33.0Maize /2 345.0 1.5 111.0 1.3 104.0 0.9 210.0 1.64Sorghum /2 206.0 1.9 274.0 1.5 56.0 1.4 - -Onions 6.0 5.7 20.0 10.4 - - 16.0 1.7Clover /3 394.0 18.8 154.0 17.4 149.0 18.3 228.0 19.4Vegetables /4 116.0 6.7 35.0 6.3 35.9 7.5 148.3 7.3Beans & Lentils 182.0 0.8 67.0 0.9 20.0 0.9 7.0 NAFruits 30.0 9.4 10.0 12.3 15.4 5.6 61.2 6.8Other Crops 28.0 5.6 23.0 1.3 34.0 2.1 48.0 1.6

Planted Crop Totals 1.886.0 1.208.0 564.3 870.5Areas for Cultivation 1,072.0 715.0 285.0 436.0Cropping Ratio 1.8 1.7 2.0 2.0

/1 Winter crop; Zone VI: Beni Suef, El Minya and Asyut Governorates./2 Summer and nili crops Zone VIII: Sohag, Qena and Aswan Governorates./3 Catch and full crops Zone VII: El Fayoum Governorate./4 Winter, summer and nili crops Zone III: Districts in Giza, Qualiubiya, and Menoufya

Governorates.* Lint cotton - 157.5 kg seed cotton -56 kg lint, 100 kg seed, 1.5 kg linters.

Source: Ministry of Agriculture and Land Reclamation, Cairo/ERS, USDA '-

March 26, 1976 (DX

ANNEX 4Table 2

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Distribution of Crops in Project Region by Zone1972-74 Average

Zone VI Zone VIII Zone VII Zone IIICrop --- ------- % Planted Area ----------------

Cotton 18.2 9.3 13.1 7.9Wheat 11.1 19.5 13.5 9.2Sugar 1.4 13.7 - 0.3Maize 18.3 9.2 18.4 24.1Sorghum 10.9 22.7 9.9 -Onions 0.3 1.7 - 1.8Clover 20.9 12.7 26.4 26.2Vegetables 6.0 2.9 6.4 17.0Beans and Lentils 9.6 5.6 3.5 0.8Fruits 1.6 0.8 2.7 7.0Other Crops 1.5 1.9 6.0 5.6

Total 99.8 100.0 99.9 99.9

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cropping Pattern In Project Area By Zones

1972 - 74 Average

Crop Zone VI Zone VIII Zone VII Zone III Totals- - - - - - - - - - - - - - - 1000/Feddans- - - - - - - - - - - - - - - -

Cotton 79.8 27.6 10.4 4.8 122.6Wheat - 48.7 57.9 10.6 5.6 122.8Sugar Cane 6.1 40.6 00.0 0.2 46.9Maize 2/ 2/ 80.2 27.3 14.6 14.7 136.8Sorghum & Others - 47.8 67.4 7.8 0.0 123.0Onions 3 1.3 5.0 0.0 1.1 7.4Clover - 91.6 37.7 20.9 16.0 166.2Vegetables 4/ 1 26.3 8.6 5.0 10.4 50.3Beans & Lentils - 42.1 16.6 2.8 0.5 62.0Fruits 7.0 2.4 2.2 4.3 15.9Other Crops 7.4 5.6 4.8 2.4 20.2

Planted Crop Totals 438.3 296.7 79.1 60.0 874.1Total Area for 7yops 243.5 174.5 40.0 30.0 488.0Uncropped Area - 8.0 4.0 0.0 00.0 12.0Total Project Area 251.5 178.5 40.0 30.0 500.0

Cropping Ratio 1.8 1.7 2.0 2.0 1.8

1/ Winter Crop, Zones:2/ Summer & Nili Crops3/ Catch & Full Crops VI Beni Suef, El-Minya, Asyut Governorates4/ Winter, Summer, & Nili Crops VIII Sohag, Qena, Aswan Governorates5/ Due to salinity and alkalinity VII Fayoum Governorate

III Districts in Giza, Qualiubiya, and Menoutya '

Governorates.

Source: Ministry of Agriculture and Land Reclamation, Cairo/ERS, USDA

March 26, 1976

ANNEX 4APPRAISAL OF Table 4

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Present and Projected Cropped Area, Yields and Annual Productionin the Project Area

Without Project With ProjectPresent Year 10 Year 35 Year 10 Onwards

WheatCropped area ('000 fed) 122.81 125.99

Yield tm tons/fed) 0.95 1.29Production ('000 m tons) 116.67 105.37 81.67 161.63

Increase over present (%) 39.00

Increase over year 10 without project (%) 53.00

Beans and other LegumesCropped area ('000 fed) 61.97 63.96

Yield (m tons/fed) 0.85 1.15Production ('000 m tons) 52.68 47.57 36.87 74.09

Increase over present (%) 41.00Increase over year 10 without project (%) 56.00

CottonCropped area ('000 fed) 122.64 125.57

Yield (m tons/fed) (unginned) 0.70 0.88Production ('000 m tons) (unginned) 85.85 77.53 60.09 110.03

Increase over present (%) 28.00Increase over year 10 without project (%) 42.00

Maize and SorghumCropped area ('000 fed) 259.78 266.18Yield (m tons/fed) 1.45 1.80Production ('000 m tons) 376.68 340.19 263.68 481.14

Increase over present (%) 28.00Increase over year 10 without project (%) 41.00

SugarcaneCropped area ('000 fed) 46.94 48.45Yield (m tons/fed) 34.0 39.00

Production ('000 m tons) 1,595.93 1,441.30 1,117.15 1,890.66Increase over present (%) 18.00Increase over year 10 without project (%) 31.00

OnionsCropped area ('000 fed) 7.43 7.63Yield (m tons/fed) 6.90 9.30Production ('000 m tons) 51.27 46.30 35.89 71.07Increase over present (%) 39.00

Increase over year 10 without project (%) 53.00

BerseemCropped area ('000 fed) 166.17 169.74

Other CropsCropped area ('000 fed) 86.36 87.57

Total Area of Crops 874.10 895.08

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Distribution of Land Ownership By Size In Six Governorates*

Groups by Size : OwnersFeddans Number : Percent Feddans : Percent

000 : 000

Less than 1 : 215 : 40.6 : 114 6.5

1 - less than 3 : 180 34.0 303 17.3

3 - less than 5 60 11.3 215 12.3

5 - less than 10 : 42 7.9 289 16.6

10 - and more : 33 6.2 : 827 : 47.3

Total - : 530 100 : 1748 : 100

*Beni Suef, Minya, Asyut, Sohag, Qena and Aswan

Source: Upper Egypt Drainage Project, Ministry of Irrigation, ARE

n >1

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Percentage of Increase of Crop Yield After TheInstallation of Tile Drainage In Certain

Areas of El Minya Governorate

: Maghagha Mayana El-Wakf M Malatia700 Feddans 2005 Feddans 2300 Feddans

Croo * * * Increase : Increase : IncreaseI Before!/* After 1/: Amount : :Before-/: After.L: Amount : % : Before!/: After!/: Amount ; %- - - - - - -Tons/Feddan- :- - - - - - -…Tons/Feddan- - - :- - - - - - - Tons/Feddan- -

Cotton 0.79 : 1.02 : 0.23 30 : 0.79 : 0.95 : 0.16 : 20 : 0.32 : 0.63 : 0.31 100

Wheat 0.75 0.90 : 0.15 : 20 : 0.75 : 0.90 : 0.15 : 20 : 0.30 : 0.60 : 0.30 100

Maize 1.40 1.54 : 0.14 10 : 0.98 : 1.12 : 0.14 : 14 : 0.56 : 1.12 : 0.56 100

Onion : 5.00 : 6.50 : 1.50 30 : 5.00 : 6.00 : 1.00 : 20 : 5.00 : 7.50 : 2.50 50

1/ Average for 3 years.

Source: Upper Egypt Drainage Project, General Report, August 1971,Ministry of Irrigation, ARE.

March 26, 1976m~

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Percentage of Increase In Crop Yield After TheInstallation of Tile Drainage In Certain

Areas of Beni Suef Governorate

.* El-Wasta Nasir Ehnasia: 13,000 Feddans 19,500 Feddans : 14,500 Feddans

Crop ~~~~~~~~~IncreasQ : Increase I. IncreaseBefore l.-: After .I" AmOunt: :Before l/: After l. AmountLLL Beforel.- Afterl/t Amount; YO

- - - - Tons/Feddan- - - - - : :- - - - -Tons/Feddan- - - - - :- - - - -Tons/Feddan- - - :Cotton 0.52 : 0.79 : 0.27 : 52 : 0.65 : 0.91 : 0.26 : 40 : 0.76 : 0.99 : 0.23 : 30

Wheat : 0.70 : 0.90 : 0.20 : 28 : 0.83 : 1.05 : 0.22 : 27 : 0.96 : 1.17 : 0.21 : 22

Maize 0.89 ; 1.12 : 0.23 : 26 : 1.00 : 1.33 : 0.33 : 33 : 0.81 : 1.02 : 0.21 : 26

1/ Average for 3 years.

Source: Upper Egypt Drainage Project, General Report, August 1971,Ministry of Irrigation, ARE.

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Percentage of Increse In Crop Yield After TheInstallation of Tile Drainage In TwoVillages In Beni Suef Governorate

: Area: Baha El Tamia : Area: Koshisha El OulaCrop Village: Kay : Village Ashmant

* ~~~~~~~Increase . : IncreaseBefore L: After I': Amount % * Before 1/ After-: Amount

- - Tons/Feddan…- - - - - : - - - - - Tons/Feddan- - - - - :

Cotton : 0.60 : 0.96 : 0.36 60 : 0.91 : 1.01 u.lU : 11

Wheat 1.11 :: 1.40 : 0.29 : 26 : 1.00 : 1.14 u.14 : 14

Maize : 0.85 : 1.13 : 0.28 : 36 0.76 : 0.99 U.23 : 30

In Koshisha El Oula although the three-year averages are relatively low, the yield at the end of the5th year was for cotton 76%, wheat 56%, maize 133% over the year before installation of the drains. Thishigh increase in the late years could be due to other inputs which drainage made it feasible for the plant toatt4in.

1/ Average for 3 years.

Source: Agriculture Inspectorate of Beni-Suef, Egypt.

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Percentage of Increase of the Crop Yield After TheInstallation of Tile Drainage In Certain Areas

Of El Fayoum Governorate

Tou Toon Kasr El Basel El-Hamidia

Crop * : Increase Increase . Increase

: Before L/: After L/: Amount : : Before L/: After L/: Amount : Before L/: AfterL/' i oA Ei; I

…- Tons/Feddan- - - - -- - - - - Tons/Feddan - - - - - :-- - -Tons/Feddan- - - -

Cotton ; 0.53 : 0.72 : 0.19 : 36 : 0.52 0.59 : 0.07 13 0.47 0.54 ; 0.07 ; 15

Wheat : 0.53 : 0.83 : 0.30 : 57 .48 : 0.77 : 0.29 :n.4 n.55 : n.n : 20

Maize : 1.08 : 1.53 0.45 : 42 0.99 1.19 : 0.20 20 0.99 1.29 ; 0.3n :i

1/ Average for 3 years.

Source: Upper Egypt Drainage Project, General Report, August 1971,Ministry of Irrigation, ARE.

2 >1

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAR REPUBLIC OY RGYPT

Increase in Yield of Clover (Berseem) Over lst Cut Influenced by Field Drainage

(Tons/Acre)

2nd Cut2' 3rd Cut C_1st V/! Increase Increase

Drain Type and Spacing Area Cut/Ton Amount Amount Percent Amount Amount Percent

Concrete - 40 m. North 5 10.38 5.38 108 9.68 4.68 94

PVC - 40 m. North 5 10.72 5.72 114 9.97 4.97 99

PVC - 40 m. South 5 10.28 5.28 106 9.83 4.83 97

Concrete - 40 m. South 5 9.45 4.45 89 8.97 3.97 79

PVC - 30 m. South 5 10.30 5.30 106 9.47 4.47 89

Concrete - 30 m. South 5 10.68 5.68 114 9.83 4.83 97

1/ 65 days from planting.2/ 40 days after previous cut.

Source: H.K. Bakhati, A.I. El-Shabassy, et. al., Evaluation of'Tile Drainage at Mehallet Mousa.I. Influence of Tile Drainage on the Fluctuation of Water Table Level and Clover Yields,Soil and Water Res. Inst., Agric. Res. Center, Ministry of Agriculture, Cairo, 1974.

t >r

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Ministry of Agriculture And Land ReclamatlonMinister ot Agriculture

Deputy Minister for Land Reclamation

First U/S of U/S of U/S of U/S of LandAgriculture Animal Health Administration and Water Undersecretaries for Land Reclamation (4)

G.RNFRAT. ATM1iTSTRATTON ANn DFPARTMENTS AGRIC. RESEARCH CENTER GEN. ORGANIZATIONS & AGENCIES

(1) Secretarial & (7) Agricultural (13) Seeds (1) Field Crops (1) Agric. Coop- (8) EgyptianTech. Affairs Sectors R.I. eration Cotton

(14) Ag. Quarantine Agency Improvemen(2) General Ins- (8) Planning, Follow- (2) Plant Diseases Fund

pection up & Evaluation (15) Veterinary R.I. (2) Poultry (9) Agric.Services Org. Stabiliza-

(3) Administration (9) Agricultural (3) Land & Water tion FundMachinery (16) Ag. Education R.I. (3) Meat

(4) Financial Af- Org. (10) Animalfairs (10) Civil Engineer- (17) Agricultural (4) Horticultural Insurance

ing Museum Crop- R.I. (4) Ag. Cre- Fund(5) Locusts and Agri- dit & Co-

cultural Aviation (11) In-Service (18) Horticulture (5) Cotton R.I. peratives (11) Gen. Oig.Training for Culti-

(6) Pest Control (19) Foreign (6) Plant Protect- (5) Egyptian vation &(12) Agricultural Relations ion R.I. Agric. Land Dev.

Extension Society(7) Animal Health (12) Gen. Org.

R.I. (6) Agric. Pro- for Agric.duction Dev. &

(8) Animal Production Agency Rehabili-R.I. tation.

(7) Agrarian(9) Agric. Economic Reform

R.I. Agency

(10) Desert R.I.

U/S - Undersecretary N

March 26, 1976

ANNEX 5Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Consulting ServicesDraft Terms of Reference

1. Under the ongoing Upper Egypt Drainage I project, funds have beenprovided for 15 man-years of consultant services. These funds have not beenused so far. It is believed that the funds already allocated are sufficientto cover the consulting services required for the two Upper Egypt Drainageprojects.

2. The technical duties of the consultants would include:

(a) advice and assistance in overall planning and coordinationof project works;

(b) advice and assistance in the pre-design surveys and inves-tigations;

(c) assistance in the planning and design of experimental works tobe carried out in the 10,000 feddan drainage area with PVC pipes,to be established during the first year of Upper Egypt Drainage IIproject;

(d) advice and assistance in the monitoring and evaluating of thedrainage works and in formulating the final conclusions;

(e) advice on water management and reclamation of saline andalkaline lands;

(f) advice on the reorganization necessary to achieve a more effec-tive extension service and to ensure its coordination withthe EPADP;

(g) advice and assistance in the maintenance of tile drainageand in the organization of the maintenance units; and

(h) advice and assistance as required in all other aspects ofproject implementation.

3. The activities of the consultants will be coordinated with the jointpanel of foreign and Egyptian consultants for drainage, financed by bilateraltechnical assistance.

ANNEX 5Page 2

4. Progress reports would be prepared by the consultants and submittedto EPADP quarterly, describing their activities undertaken during the report-ing period and presenting a program of work for the next three months. Thisreport would become a part of the EPADP report submitted to IDA and the Bank.

5. It is estimated that the above services to be provided by theconsultants would require the following professional staff:

Planning and coordination engineer 3 man/year

Drainage engineer 3 "Water management and salinity control specialist 3 "Extension and training specialist 1 "

Short-term specialists 2 "

Total 12 "

The above figures are tentative, and EPADP would employ the experts neededfor the time periods required, and would prepare detailed terms of referencefor each consultant in consultation with IDA and the Bank.

6. The estimated cost for the above consultants is US$0.84 millionwhich will be covered by the allocation of US$1.0 million made in the UpperEgypt Drainage I project for consultants and training.

ANNEX 6Table 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cost Estimates

Foreign

Item Local Foreign Total Local Foreign Total Exchange-----BE million ------ -----US$ million----- %

Production of PVC PipesEquipment & materials 0.06 7.19 7.25 0.15 18.42 18.57 99

Production cost 1.06 1.19 2.25 2.72 3.05 5.77 53

Contingencies(a) Physical/l 0.17 0.91 1.08 0.43 2.32 2.75 84(b) Price 0.80 2.34 3.14 2.04 5.99 8.03 75

Subtotal 2.09 11.63 13.72 5.34 29.78 35.12 85

Drainage WorksEquipment & materials - 7.00 7.00 - 17.91 17.91 100

Civil works 41.04 4.81 45.85 105.06 12.31 117.37 10Administration 4.29 - 4.29 10.99 - 10.99 -Contingencies

(a) Physical/l 6.80 1.42 8.22 17.41 3.64 21.05 17(b) Price 24.57 4.48 29.05 62.91 11.47 74.38 16

Subtotal 76.70 17.71 94.41 196.37 45.33 241.70 19

Bilharzia ControlEquipment - 0.03 0.03 - 0.07 0.07 100

Molluscicides - 0.25 0.25 - 0.66 0.66 100

Administration 0.05 - 0.05 0.13 - 0.13 -Contingencies

(a) Physical/1 - 0.03 0.03 0.01 0.07 0.08 87(b) Price 0.01 0.03 0.04 0.02 0.08 0.10 80

Cost overrun of Upper /2Egypt Drainage I Project - 1.65 1.65 - 4.22 4.22 100

Subtotal 0.06 1.99 2.05 0.16 5.10 5.26 97

GRAND TOTAL 78.85 31.33 110.18 201.87 80.21 282.08 28.5

/1 Physical contingencies 10% for equipment and 15% for civil works./2 Cost for 325 tons of molluscicides.

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cost Estimates for Production of PVC Pipes

Total Cost Year 1 (1977) Year 2 (1978) Year 3 (1979) Year 4 (1980) Year 5 (1981)Item Local Foreign Total Local Foreign Local Foreign Local Foreign Local Foreign Local Foreign

-------------------------------------------------------- US$ OOO---------------------------------------------------------

Production of PVC Pipesfor Tile Drainage

(a) Equipment and materials

(i) Equipment for tile - 3,696 3,696 - 1,232 - 2,464 - - - - - -

making plants andspare parts

(ii) Raw material - 14,336 14,336 - 6,000 - 6,000 - 2,336 - - - -

(b) Installation 150 390 540 50 130 100 260 - - - - - -

(c) Operation and Maintenance 2,720 3.050 5,770 54 61 380 427 762 854 762 854 762 854

Subtotal 2,870 21,472 24,342 104 7,423 480 9,151 762 3,190 762 854 762 854

(d) Contingencies

Physical-' 430 2,319 2,749 16 752 72 949 114 362 114 128 114 128Price 2,037 5.985 8,022 31 1,106 213 2,293 460 1,234 593 597 740 755

GRAND TOTAL 56337 35,113 151 9,281 765 12,393 1,336 4,786 1,469 1 579 1 616 1.737

Custom duties 3,606 - 3,606 1,446 - 1,693 - 467 - - - - -

/1 10% for equipment and materials and 15% for operation and maintenance.

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cost Estimates for Drainage Works(excluding production of PVC pipes)

Total Cost Year 1 (1977) Year 2 (1978) Year 3 (1979) Year 4 (1980) Year 5 (1981)

Item Local Foreign Total Local Foreign Local Fore_ign Local Foreign ocal Foreign Local Foreign

Main & Branch Open Drains

Equipment - 5,712 5,712 - 5,000 - 712 - -Construction

excavation 23,400 - 23,400 9,500 - 9,500 - 4,400 -

structures 26,624 - 26,624 10,000 - 10,000 - 6,624 -

land acquisition 12850 - 12,850 5,225 - 5,225 - 2,400

Subtotal 62,874 5,712 68,586 24,725 5,000 24,725 712 13,424 -

Pumping Station

Equipment - 123 123 - - - 123 - -Civil works & erection 260 20 280 - - 260 20 - - -

Subtotal 260 143 403 - - 260 143 -

Tile Laying and Constructionof Collectors

Equipmentfor tile laying and collectors - 11,014 11,014 - 5,000 - 5,000 - 1,014 - - - -

for tile maintenance - 269 269 - - 269 -

Constructiontile laying and collectors 33,190 12,290 45,480 664 246 4,644 1,721 9,294 3,441 9,294 3,441 9,294 3,441crop compensation 7, 500 - 7,500 150 - 1.050 - 2,100 - 2.100 - 2.100 -

Subtotal 40,690 23,573 64,263 814 5,246 5,694 6,990 11,394 4,455 11,394 3,441 11,394 3,441

Land Reclamation

Equipment - 439 439 - - - 300 - 139 - - - -Materials and work 1,240 - 1,240 - - 800 - 440 - -

Subtotal 1,240 439 1,679 - 300 800 139 440 - -

Agricultural Extension Service

Equipment - 196 196 - - - 150 46 - - - -

Administration and Training

EquiPment - 157 157 - - - 157Buildings (stores, sheds, offices) 442 _ 442 - _ 442 -

Overhead cost (10% of local cost) 10,550 - 10,550 255 - 3,112 - 2,562 - 1,183 - 1,139

Subtotal 10,992 157 11,149 2,554 - 3,554 157 2,562 - 1,183 - 1,139

TOTAL 116.056 30,220 146,276 28,093 10,246 34.233 8,452 28.180 4.640 13.017 3.441 12.533 3,441

Contingencies

Physicall 17,408 3,637 21,045 4,214 1,037 5,135 932 4,227 636 1,952 516 1,880 516Price 62.908 11.471 74.379 8,400 1.526 15,196 2.270 17.000 2,228 10.136 2.405 12.176 3.042

GRAND TOTAL 196.372 4528 40.707 12809 54564 11.654 49.407 7504 25.105 6 362 26.589 6 999 V

Custom Duties 4,340 2,420 1,630 290

/1 107. for eqipment and materials and 15% for civil works.

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cost Estimates for Bilharzia Control

Total Cost Year 1 (1977) Year 2 (1978)

Item Local Foreign Total Local Foreign Local Foreign

----------------------------US$ million----------------------

Extension Bilharzia Program

Equipment - 0.07 0.07 - 0.07 -

Molluscicides - 0.66 0.66 - 0.66 - -

Administration 0.13 - 0.13 0.07 - 0.06 _

Subtotal 0.13 0.73 0.86 0.07 0.73 0.06

Contingencies: Physical 0.01 0.07 0.08 - 0.07 0.01

Price 0.02 0.08 0.10 0.01 0.08 0.01

Total 0.16 0.88 1.04 0.08 0.88 0.08

Cost Overrun of Upper Egypt Drainage I

Molluscicides - 4.22 4.22 - 2.12 - 2.10

GRAND TOTAL 0.16 5.10 5.26 -.08 3.00 2.10

Xa M

May 1976 -- C

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Cost Comparison for Tile Drainage/- (US$ per feddan)

Using Cement Pipes and Local Contractors Using PVC Pipes and Foreign Contractors

(Laying of Collectors by Hand) /3 (Laying of Collectors by Machine)

Item Appraisal Estimates Current Estimates Current Estimates

Local Foreign Total Local Foreign Total Local Foreign Total

Equipment (incl. freight 2.97 30.57 33.54 2.97 30.57 33.54 _ 29.42 29.42

and insurance)

Raw material for PVC pipes - - - - - - - 28.67 28.67

Production of PVC pipes and 83.70 0.80 84.50 147.20 A 0.80 148.00 71.82 30.68 102.50

construction of tile drainage

Crop compensation 15.00 - 15.00 15.00 - 15.00 15.00 - 15.00

TOTAL 101.67 31.37 133.04 165.17 31.37 196.54 86.82 88.77 175.59

/ Excluding physical and price contingencies.Average unit price of awarded contracts for tile drainage LE 57.5 per feddan.

D Source EPADP.

May 1976

@ o

ANNEX 6Table 6

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Main Drains and Branches-Cost Estimates

Area served: 500,000 feddans

Total length: (a) new drains - 346 km(b) remodelling - 1,226.5 km

Total volume of excavation (a) new drains: 10,400,000 m3

(b) remodelling: 13,000,000 m3

Total 23,400,000 m3

Cost Estimates

Local Foreign TotalIte --------------US$-----------

Equipment/2 - 5,712,000 5,712,000

Excavation (23,400,000 m3 x US$1) 23,400,000 - 23,400,000

Structures:(a) on new drains 350 km x$20,000= 7,000,000 - 7,000,000(b) on existing drains 1,226.5 km x$%6,000= 19,624,000 - 19,624,000

Land Acquisition (12,500 fed x US$1,028) 12,850,000 - 12,850,000

Total 62,874,000 5,712,000 68,586,000

/1 See detailed list, table 1, Annex 3./2 See equipment list, table 1, Annex 8.

May 1976

ANNEX 6Table 7

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Details on Excavation and Remodellingof Main Open Drains and Branches-/

Area served: 500,000 feddans

Total length: (a) new drains - 346 km(b) remodelling - 1,226.5 km

Total volume of excavation: (a) new drains - 10,400,000 m3

(b) remodelling - 13,000,000 m3

Total 23,400,000 m3

Volume of excavation per year: (a) new drains - 5,300,000 m3(b) remodelling - 4,300,000 m3

Total 9,600,000 m3

Annual output of excavating machines

(a) dragline 1lm3 : 180m3/hour x 2,000 hours = 360,000 m3/year(b) dragline lm3 : 120m3/hour x 2,000 hours = 240,000 m3/year(c) hydraulic excavator 3/4m3 : 100m3/hour x 2,000 hours = 200,000 m3/year

Required excavators (calculated on the basis of completion of work in twoyears for the new drains and three years for theremodelling)

(a) draglines 1½m3 (to be used for 70% of the volume of excavation of newdrains) 3,700,000 : 360,000 = 11 plus 1 spare = 12

(b) draglines lm3 (to be used for 30% of the volume of excavation of newdrains plus 50% of remodelling) 3,740,000 : 240,000 = 16 plus 1 spare = 17

(c) hydraulic excavators 3/4m3 (to be used for 50% of the total volume ofremodelling) 2,150,000 : 200,000 = 11 plus 1 spare = 12

Civil works/2

(a) excavation: 23,400,000 m3 x US$1.0 = US$23,400,000(b) structures: (1) existing drains 1,226.5 km x$16,000 = US$19,624,000

(2) new drains 350 km x$20,000 = 7,000,000US$26,624,000

Land Acquisition

2.5% x 500,000 feddans = 12,500 feddans x US$1,028 = US$12,850,000

/1 See detailed list, table 1, Annex 3.

/2 Excluding equipment.

May 1976

ANNEX ,Table 8

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Estimated Cost for Tile Drainage and Construction of Collectors /1

Local Foreign TotalIte ----------- US$/feddan----------

Production of PVC Pipes /2

Maintenance of PVC plant 0.20 0.80 1.00(excluding major spare parts)

Energy 2.45 - 2.45Labor 0.75 - 0.75Transport of raw material 1.20 - 1.20

to the plantSalaries for foreign technicians 0.40 1.60 2.00Overhead cost 0.44 1.78 2.22Contractor's profit and risk - 1.92 1.92

Total 5.44 6.10 11.54

Laying of Tile Drainsand Construction of Collectors /3

Transport of pipes to the field 0.90 - 0.90Maintenance laying machine (exc spares) 0.20 0.47 0.67Labor for tile laying machine 3.56 - 3.56Fuel and oil 1.39 - 1.39Gravel filter 19.20 - 19.20Backfill 1.65 - 1.65Construction of collectors 33.52 0.28 33.80Salaries for foreign experts 0.40 1.60 2.00Overhead cost 2.53 10.10 12.63Contractor's profit and risk 3.03 12.13 15.16

Total 66.38 24.58 90.96

/1 For details see Table 9./2 Excluding cost for raw material./3 Excluding cost for machinery and major spare parts.

Mav 1976

ANNEX 6Table 9Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Details on Cost Calculations for Tile Drainage

A. Production of PVC Pipes

1. Maintenance of Plant (excluding major spare parts)

5% on total cost: $1,000,000 x 5% = $50,000One plant can produce pipes for 240 fed/day or 50,000 fed/year

Cost per feddan $50,000 - 50,000 fed = $1.00 of which 80% foreign exchangefor expatriate specialist and spareparts ($0.80) & 20% local currency ($0.20)

2. Energy Cost for Plant

Operation: 370 kw x 24 hours = 8,880 kwh x 0.025 = LE 222.0Repair, etc. 320 kwh x 0.025 = LE 8.0

Total BE 230.0/day or $589/day

Cost per feddan $589 -. 240 = $2.45, all in local currency

3. Labor Cost for Plant

3 trained operators x 5.0 = LE 15.06 trained assistants x 4.0 = 24.06 laborers x 1.5 = 9.0

BE 48.0

Labor will be paid for 365 days/yearCorresponding cost per working day 365 x 48.0 = LE 70.1 = $179.4

250Cost per feddan $179.4 - 240 = $0.75, all in local currency

4. Transport of Raw Material to the Plant

Distance from Alexandria 750 km in averageCost per ton/km 0.015 EECost per ton 0.015 x 750 = LE 11.250Loading/unloading 2.250

13.500 = $35

Cost per feddan $35 x 0.032 ton = $1.20, all in local currency

5. Salaries for Foreign Technicians

Two technicians per plant - annual salary $50,000

Cost per feddan $100,000 - 50,000 fed = $2.00 of which 80% in foreign exchange($1.60) and 20% in localcurrency ($0.40)

6. Overhead Cost

30% of total cost (excluding cost of raw material)$7.40 x 30% = $2.22 of which 80% in foreign exchange ($1.78)

and 20% in local currency ($0.44)

7. Contractor's Profit and Risk

20% of total cost (including overhead cost but excluding cost of rawmaterial and equipment)

$9.62 x 20%= $1.92, all in foreign exchange

ANNEX 6Table 9Page 2

B. Laying of Tile Drainage and Construction of Collectors

1. Transport of Tiles to the Field

Distance in average 70 kmOne truck of 7 tons can carry 20 rolls (= 4,000 m of pipes)Cost for transport - truck LE 8.00

driver 2.50assistant 0.75loading/unloading 3.00

Total LE 14.25 or $36.5

4,000 m of pipes = 40 feddans

Cost per feddan $36.5 - 40 = $0.90, all in local currency

2. Maintenance Laying Machine (excluding major spare parts)

3.5% per yearx $80,000 = $3,000One machine can lay 4,500 feddan/year

Cost per feddan $3,000 -t 4,500 = $0.67 of which 70% in foreign exchange ($0.47)for expatriate technician and 30% inlocal currency ($0.20)

3. Labor for Tile Laying Machine

One driver x 5.000 = LE 5.000Two assistants x 2.000 = 4.000Six laborers x 1.000 = 6.000Two surveyors x 2.500 = 5.000

20.000Supervision, etc. 5.000

Total LE 25.000 or $64

One machine can lay 18 feddan per day

Cost per feddan $64 - 18 = $3.56, all in local currency

4. Fuel and Oil

Fuel: 120 HP x 0.25 = 30 1/hour x 0.025 = BE 0.750Oil 20% = 0.150Transport, waste, etc. = 0.300

Cost per hour 4E 1.200

Working hours/day 8 x 1.200 = EE 9.600 = $25One machine can lay 18 feddan per day

Cost per feddan $25 - 18 = $1.39, all in local currency

5. Gravel Filter

Amount needed 15 I/m of tile drain of 1.5m3/feddan-cost of raw gravel(including digging and transport to crusher) LE 2.000

-cost of crushing 0.200- cost of transport (average distance 50 km)

2 ton/m3 x 50 km x 0.015 LE/km/ton 1.500-cost for laying (15 laborers x 0.8 LE + 2.0 BE for fuel

for 20m3 of gravel) 0.700

Subtotal 4.400Supervision .600Total LE/m3 5.000

or $12.80

Cost per feddan: 1.5 m3 x 12.8 = $19.2, all in local currency

ANNEX 6Table 9Page 3

6. Backfill

One 4-wheel tractor with rear mount Grader Blade can fill 2,500 m of trenchesper day or 25 fed.

Operation cost for tractor per day (8 hours) hE 16.00 or $41.000

Cost per feddan $41.00 i 25 = $1.65, all in local currency.

7. Collectors

Length/feddan 12 m of 10" concrete pipesCost per feddan:(a) Cost ot pipes LE 0.600 x 12 = E 7.200

Transport of pipes 1.200 = BE 8.400 = $21.50(b) Maintenance laying machine $0.40 of which 70% foreign exchange for

expatriate technician

(c) Labor - machine operators LE 32.000/day(800 m of pipes) cost per feddan BE 0.480joints and manholes 1.200surveyors - supervision 1.200

Total UE 2.880 or $7.40

(d) Materials (cement, sand, etc.) LE 1.200 or $3.00(e) Backfill LE 0.60 'or $1.50

Total cost for collectors: $33.80/feddan, of which $0.28 in foreignexchange and $33.52 in local currency

8. Expatriate Experts and Technicians

20 man/year x $50,000 = $1,000,000Cost per feddan: $1,000,000 : 500,000= $2.00of which 80% in foreign exchange

($1.60) and 20% in local currency ($0.40)

9. Overhead Cost

20% of total cost (excluding equipment) $63.17 x 20% = $12.63 of which 80%in foreign exchange ($10.10 and 20%in local currency ($2.53)

10. Contractor's Profit and Risk

Total cost for tile laying and collectors: $75.80 per feddan (excluding equipment)Profit and risk 20% $15.16 per feddan of which 80%

in foreign exchange ($12.13)and 20% in local currency($3.03)

May 1976

ANNEX 6Table 10

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Pumping Station (Menshat El Dahab)Cost Estimates

Local Foreign TotalItem -------------US$------------

Equipment

3 pumping units x 20,000 - 60,000 60,000

Freight and insurance - 7,000 7,000

Power transmission line - 50,000 50,000

Freight and insurance - 6,000 6,000

Subtotal - 123,000 123,000

Civil Works and Erection

Pumping station 150,000 - 150,000

Power transmission line 50,000 - 50,000

Erection of pumps 20,000 20,000 40,000

Housing 40,000 - 40,000

Subtotal 260,000 20,000 280,000

Total 260,000 143,000 403,000

May 1976

ANNEX 6Table 11

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Buildings

Cost Estimates

Item Local Foreign Total--- -u$-- ---US$-

Offices (600 m2 x $120) 72,000 - 72,000

Training Center 100,000 - 100,000

Stores (1,500 m3 x $80) 120,000 - 120,000

Sheds for storage of PVC pipesin the field(6 x 500 m2 = 3,000 m2 x $50) 150,000 - 150,000

Total 442,000 - 442,000

March 26, 1976

ANNEX 6Table 12

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Reclamation of Saline LandCost Estimates

Total Area: 12,000 feddansof which 8,000 feddans alkali soils

Item Local Foreign Total--US$----- …

Equipment (see below) - 439,490 439,490Materials and WorkGypsum: 8,000 fed x 20 tons = 160,000 tons

x $5 = 800,000 - 800,000Spreading of gypsum: 8,000 fed x $10 80,000 80,000Subsoiling, pumping: 12,000 fed x $30 360,000 - 360,000

1,240,000 439,490 1,679,490Cost per Feddan

(a) Saline Soils (12,000 feddan)(i) equipment:

crawler tractors 120,000wheeled tractors (½) 48,000PUmps 30,000miscellaneous (2/3) 20,000spare parts (2/3) 43,000freight insurance (12%) 31,320

Subtotal 292,320

(ii) work 360,000

Subtotal 652,320 : 12,000 $54.36

(b) Alkaline Soils (4,000 feddan)(i) equipment:

wheeled tractors (½) 48,000conveyors 6,000spreader trailers 45,000miscellaneous (1/3) 10,000spare parts (1/3) 22,400freight insurance (12%) 15,770

Subtotal 147,170

(ii) gypsum 800,000(iii) work 80,000

Total 1,027,170 8,000 = $128.40(additional to $54.36)

March 26, 1976

ANNEX 6Table 13

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Estimated Schedule of Disbursement (for IDA/IBRD Credit/Loan)Cumulative Disbursement at End of Quarter

IBRD Fiscal Year For Forand Quarter Drainage Bilharzia Total

---- US$ million --------

1976/77

March 31, 1977 3.2 1.5 4.7June 30, 1977 6.4 2.0 8.4

1977/78

September 30, 1977 9.6 2.5 12.1December 31, 1977 12.8 3.0 15.8March 31, 1978 15.7 3.5 19.2June 30, 1978 18.6 4.0 22.6

1978/79

September 30, 1978 21.5 4.5 26.0December 31, 1978 24.5 5.1 29.6March 31, 1979 26.3 5.1 31.4June 30, 1979 28.2 5.1 33.3

1979/80

September 30, 1979 30.0 5.1 35.1December 31, 1979 32.0 5.1 37.1March 31, 1980 33.6 5.1 38.7June 30, 1980 35.2 5.1 40.3

1980/81

September 30, 1980 36.8 5.1 41.9December 31, 1980 38.3 5.1 43.4March 31, 1981 40.0 5.1 45.1June 30, 1981 41.6 5.1 46.7

1981/82

September 30, 1981 43.2 5.1 48.3December 31, 1981 44.9 5.1 50.0

Closing Date June 1983

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Local Funds Required for Bank's Drainage Projects

(Government contribution)L.

PreviousProject Years 1976 1977 1978 1979 1980 1981 Total

---------------------------------…LE million…------------------…----------

Nile Delta Drainage Project 37.70 12.56 13.22 11.91 10.54 - - 85.93

Upper Egypt Drainage I Project 7.58 10.42 9.76 6.60 6.60 1.75 - 42.71

Upper Egypt Drainage II Project - - 15.99 21.64 19.82 10.38 11.02 78.85

Total 45.28 22.98 38.97 40.15 36.96 12.13 11.02 207.49

/1 Including Bilharzia control component.

May 1975

(D PH o4'-

ANNEX 7Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Annual Operation and Maintenance Cost

A. Operation and Maintenance Cost for Drainage Pumping

Assumptions:

- Area served: 29,600 feddans

- Discharge: 3.5 m3/sec- Maximum head: 2.0 m- Average head: 1.7 m

- Maximum load: 110 kw

- Amount of water pumped per year: 1,000 m3 x 29,600 fed 29,600,000 m3- Pumping station cost: (a) Building : $150,000

(b) Equipment plus installation: $163,000(c) Transmission line : $ 50,000(d) Housing : $ 40,000

Total $403,000

1. Maintenance Cost US$

- Building: 150,000 x 1.5% = 2,250

- Equipment: 163,000 x 3% = 4,890

- Transmission line: 50,000 x 2% = 1,100- Housing: 40,000 x 2% = 800

Total 8,940

Cost per feddan: 8,940 : 29,600 = US$0.30

-NaŽ

2. Operation Cost

Energy: 30,000,000 x 2.0 340,000 kwh270 x 0.6 x 1.36 x

340,000 kwh x $0.0!

Cost per feddan: 21i-,A&:C 29,6GG

Labor: Chief operator: L x amom-n-s x l2' )= L'40Operators: 2 xa 1x. = 1 - 2Mechanics: -x x _ 1200Laborers: x x x J 1o

Trcai 6,33C

Cost per feddan: t6360 2 i,60 G 22\

Oil, transport, contingencibs --- - ----- --

Operation cost p!r feddarn. -1. 3

Total annual cos: for 0 S M per feddan US$1.60

B. Operation and Maintenance Cost f)r Open 4a_ .Drc-inG

Assumptions:

- Excavated volume of main drains per feddan: 50 m3- Cost of excavation (includirng machine,y) per feddan: $60- Cost of structures per fed6an: $40

Maintenance Cost

- Earth works: $60 x 2% = $120 per feddan- Structures: $40 x 1% = $0.4'3 7 *t

- Weed Control: $0.20 If *

Total annual cost $L.80 per feddan

C. Operation and Maintenance Cost .or Tile Drainage

- Investment cost per feddan $160- Annual maintenance cost: $i60 x 1% = $O1.60

ANNEX 7Page 3

D. Total Operation and Maintenance Costs for the Project Area

- Drainage pumping: $1.60 x 29,600 feddans = $ 47,000- Open drains: $1.80 x 500,000 "i 900,000- Tile drains: $1.60 x 500,000 " = 800,000

Total $1,747,000

or LE 680,000

E. Replacement Cost

- Replacement of pumps and motors(once every 12 years) $163,000 or LE 64,000

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

List of Equipment for Drainage Works

Unit Equipment to be Imported Equipment to be Imported TotalItem Price by Contractors Directly by EPADP Cost

US$ Quantity Cost US$ Quantity Cost US$ US$

A. PRODUCTION OP PVC PIPESPipe production complete plants 1,000,000 3 3,000,000 3,000,000Spare parts (107.) Sum 300,000 300,000Raw material for PVC pipes (tons) 800 16,000 12,800,000 12,800,000Freight and insurance (127%) _ 396,000 1,536.000 1.932.000

Subtotal 3,696,000 14,336,000 18,032,000Physical contingencies (10%) 370.ooo 1.434o000 1 804 000

TOTAL A 4.066,000 15,770,000 19,836,000B. DRAINAGE WORKS

Excavation and Remodellin of Open DrainsDragline excavators l.5mJ 90,000 12 1,080,000 1,080;000Dragline excavators I m

370,000 17 1,190,000 1,190,000

Hydraulic excavators 3/4 m3

60,000 12 720,000 720,000Transporters for excavators (60 ton) 75,000 6 450,000 450,000Extra tractor for transporter 50,000 1 50,000 50,000Trucks 7.5 tons 15,000 15 225,000 225,000Pickups 6,000 15 90,000 90,000Jeeps 6,000 15 90,000 90,000Workshop equipment Sum Sum 30,000 30,000Spare parts (307) 1,175,000 1,175,000Freight and insurance (127%) 612.000 612.000

Subtotal 5,712,000 5,712,000

Pumnping StationPump and motors (incl. spare parts) 20,000 3 60,000 60,000Power transmission line Sum 50,000 50,000Freight and insurance (127%) 13.000 13.000

Subtotal 123,000 123,000

Tile DrainageGravel crusher complete plants (incl. spares) 150,000 4 600,000 600,000Tile laying machines 80,000 33 2,640,000 2,640,000Spare parts for above (307.) 792,000 792,000Collector laying machines 115,000 10 1,150,000 1,150,000Spare parts for above (30%) 345,000 345,000Transporters (tractor and trailer) 75,000 4 300,000 300,000General purpose trailers (3 tons) 1,000 200 200,000 200,000Wheeled tractors 10,000 100 1,000,000 1,000,000Backhoes 35,000 10 350,000 350,000Four-wheel tractors with rear mount grader blade 15,000 30 450,000 450,000Trucks and trailers (7.5 tons) 18,000 20 360,000 360,000Pickups 6,000 50 300,000 300,000Station wagons 6,000 12 72,000 72,000Jeeps 6,000 50 300,000 300,000 a aMotorcycles 500 30 15,000 15,000 w -'Mobile cranes (7 tons) 40,000 4 160,000 160,000Spare parts for vehicles and tractors (20%) 460,000 240,000 700,000 '''cWorkshop equipment 100,000 100,000Freight and insurance (127.) 994.000 186.000 1.180.000

Subtotal 9,281,000 1,733,000 11,014,000

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

List of Equipment for Drainage Works

Unit Equipment to be Imported Equipment to be Imported TotalItem Price by Contractors Directly by EPADP Cost

US$ Quantity Cost US$ Quantity Cost US$ US$

Tile Drainage MaintenanceTile maintenance equipment units (incl. spares) 6,000 40 240,000 240,000Freight and insurance (12%) 29,000 29.000

Subtotal 269,000 269,000

Land ReclamationCrawler tractors with attachments 60,000 2 120,000 120,000Wheeled tractors with attachments 12,000 8 96,000 96,000Loading belt conveyors 3,000 2 6,000 6,000Pumps with engines and trailers 3,000 10 30,000 30,000Spreader trailers 9,000 5 45,000 45,000Miscellaneous equipment and tools Sum 30,000 30,000Spare parts (20%) 65,000 65,000Freight and insurance (12%) 47,000 47,000

Subtotal 439,000 439,000

Agricultural Extension ServiceGeneral purpose vehicles 6,000 20 120,000 120,000Motorcycles 500 30 15,000 15,000Miscellaneous equipment and spare parts Sum 40,000 40,000Freight and insurance (12%) 21.000 21.000

Subtotal 196,000 196,000

Administration and TrainingOffice equipment Sum 40,000 40,000Laboratory equipment Sum 40,000 40,000Training equipment Sum 40,000 40,000Miscellaneous equipment and spare parts Sum 20,000 20,000Freight and insurance (12%) Sum 17,000 :17.000

Subtotal 157.000 157,000

TOTAL 9,281,000 8,629,000 17,910,000

Physical contingencies (107) 928.000 863.000 1.791.000

TOTAL B 10,209,000 9.492.000 19,701,000 '0'0

GRAND TOTAL (A + B) 14.275,000 25.262 000 395 0 X

May 1976

ANNEX RTable 2Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

DetaLls on Required Equipment and Materials for Tile Drainage

1. TILE MAKING PLANTS -/

- Output per plant for 80 mm pipes: 1,000 m/hour or 24,000 m/day (24 hours)or 5,000,000 m/year (5,000 hours)

- Maximum rate of tile drainageconstruction per year: 140,000 fed x 100 m = 14,000,000 m

- Required number of plants: 3

2. RAW MATERIAL

- Weight of raw material permeter of 80 mm pipe: 0.320 kg

- Total length of tile drains: 500,000 fed x 100 = 50,000,000 m

- Total required raw material: 50,000,000 m x 0.320 kg = 16,000 tons

3. TILE LAYING TRENCHING MACHINES

- Output of machine: 300 m/hour or 1,800 m/day (6 hours)or 450,000 m/year (250 days)

- Maximum rate of tile drainagelaying per year: 140,000 fed x 100 m = 14,000,000 m

- Required number of machines: 14,000,000 -^ 450,000 = 31 + 2 spare = 33

4. GRAVEL CRUSHERS

- Output of machine: 25 m3/hour or 200 m /day (8 hours) or50,000 m3 /year (250 days)

- Rate of tile drainage per year: 140,000 fed

- Required amount of gravel per year: 140,000 fed x 1.5 m3 = 200,000 m3

- Required number of crushingmachines: 200,000 - 50,000 = 4

1/ Plant includes: Extruder, corrugator, pipe puncher, reeling unit, standby genera-tor, prefabricated shed and silos for raw material.

ANNEX 8Table 2Page 2

5. FOUR-WHEEL TRACTORS WITH REAR MOUNT GRADER BLADE FOR BACKFILL

- Output of machine: 25 fed per day (2,500 m) or6,250 fed per year

- Maximum rate of tile drainage 140,000 fedper year:

- Required number of tractorsfor tile drains: 140,000 fed - 6,250 = 23

- Required number of tractorsfor collectors: 5

- Spare: 2

Total: 30

6. COLLECTOR LAYING MACHINES

- Output per machine: 200,000 m/year

- Length of collectors: 12 m/feddan

- Maximum annual rate of 140,000 feddans x 12 m = 1,680,000 mconstruction:

- Required number of layingmachines: 1,680,000 - 200,000 = 9 + 1 spare = 10

7. OTHER EQUIPMENT Quantity

- Transporters (tractor and trailer) 4

- Wheeled agricultural tractors 100for transport

- General purpose trailers (3 ton) 200

- Backhoes 10

- Trucks and trailers (7.5 tons) 20

- Pickups 50

- Station wagons 12

- Jeeps 50

- Motorcycles 30

- Mobile cranes (7 ton) 4

- Spare parts

- Workshop equipment

May 1976

ANNEX 9Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Agricultural Credit, Cooperatives, Marketing and Prices

Agricultural Credit

1. Following a lengthy experience with various kinds of land and commer-cial banks which commenced operations in the 1880s, the establishment in 1931of the Agricultural Credit Bank allowed a wider participation by farmers in in-stitutional credit facilities, by granting loans on easier terms than those ob-taining previously. With an extension of this Bank's activities to includevarious kinds of cooperatives it became clear that further policy changes wereneeded to provide for small tenant farmers, who cultivated more than two thirdsof the land. In 1952 some of these changes were introduced. Farmers were per-mitted to obtain credit on the security of their crops alone, and loans weremade exclusively through agricultural cooperatives which had wide supervisorypowers. By 1962, all loans of the reconstituted Agricultural and CooperativeCredit Bank were flowing through cooperatives. In 1964 an organizationalchange took place which established the General Organization for Agriculturaland Cooperative Credit (GOACC) with responsibility for credit policy and super-vision. This organization then exercised control over the ACC Banks in Gover-norates and their sub-branches at district level, which in turn were respons-ible for all. operations with cooperatives and their members. In 1962, also,the long term loans which had been floated by the ACC Bank to finance itsoperations were consolidated into a LE 30 million bond issue taken over by theCentral Bank of Egypt. To finance further expansion, borrowing commenced fromcommercial banks, and reached a level of LE 131 million by mid-1972. TheGOACC pays a higher interest rate on these borrowings from commercial banksthan it receives from onlending to farmers, and the resulting deficit iscovered by a subsidy in the Government Budget.

2. There are autonomous ACC banks in each of the 17 Governorates,each one financing branches in Markaz towns of which there are 130 in Egypt.In turn the Markaz branches supply cooperative societies, one in each of theapproximately 4,000 villages in the country. The GOACC staff numbers, approx-imately, 3000 in Cairo and 17,000 in ACC Banks throughout the country. Inaddition, each cooperative has a staff of 3-5 persons.

ANNEX 9Page 2

3. The ACC Banks lend only for short term and medium term purposes(up to 10 years). Short term loans, for crop expenses, are provided forperiods of up to 14 months. Terms of other loans vary with the purpose, e.g.livestock 2-5 years, machinery 3-5 years, drainage canals or orchards 5 years,buildings or soil amelioration 10 years. There are no grace periods formedium term loans, but repayment may be lower in early years as, for example,with a five-year loan for orchard development, which may be repaid 10% in thefirst year, 15% in the second, and 25% in each of the remaining 3 years. Allloans carry a 4-1/2% per annum commission charge, and there are no othercharges except for the annual fee for membership in the cooperative, set atLE 0.35 per feddan of land.

4. While short term loans require for security only a lien on the cropitself, medium term loans are not given to tenants without a guarantee fromthe landowner. In practice such a guarantee is rare, so that effectivelymost medium term loans flow only to landowners. However, the land itselfis mortgaged only for soil amelioration loans, while livestock and machineryare regarded as security for loans relating to these items. Because of themandatory marketing system for several commodities and the extensive market-ing service offered by cooperatives for most commodities, problems of defaulton loans are reduced, since after taxes, loan repayment has top priority andappropriate amounts are deducted from commodity payments made to farmers.For crop loans fixed amounts per feddan in kind (seeds, fertilizer) and cashare calculated each year for each crop by consultation between the GOACC andtechnical sections of the Ministry of Agriculture. There are also guidelinesgoverning provision of loans for livestock and machinery.

5. Total lending activity of the ACC Banks has risen from LE 36.6 mil-lion in 1959/60 to LE 81.4 million in 1974/75, an average rate of increase of5.4% per annum. However, increases in lending slowed significantly from themiddle 1960s onward (Table 1) and total loans have yet to regain the levelreached in the 1966/67 period. This implies that lending in real terms hasactually been falling in recent years, although fixed prices for fertilizerover a long period have ensured that application rates have not fallen off.Short term loans for seasonal crop expenses have made up more than 98% oftotal lending in the past five years, with cotton accounting for between40% and 50% of the short term volume (Table 1).

6. The Government plans to gradually raise the levels of applicationof crop inputs, especially fertilizer, and this alone will require increasedallocations of agricultural credit in the near future. The present projectfocuses on removing one key limiting factor in agriculture, namely thesurplus of water resulting from inadequate drainage. An attempt has beenmade to compute benefits from adequate drainage alone, with inputs remainingat present levels. Since the current volume of agricultural credit is judgedto be adequate to support input application at present levels, no provisionis made in the project for additional credit.

ANNEX 9Page 3

Cooperatives and Marketing Arrangements

7. It is compulsory for all farmers to be members of their local coop-

eratives, and all cooperatives are supervised by the Undersecretariat for

Agricultural Cooperation in the Ministry of Agriculture. Under this supervisory

and regulatory umbrella, three national cooperative societies--the General

Reclamation C.S., Agrarian Reform C.S. and General Agricultural C.S.--respec-

tively oversee local cooperatives in reclaimed lands (300 cooperatives), re-

formed lands (700 cooperatives) and in the old lands (4,000 cooperatives).

The local cooperative society provides all major inputs needed for traditional

crops (except seed potatoes), acts as a channel for credit from the ACC banks,

ensures that government plans for agriculture are followed by farmer members,

maintains business records for each farm, and provides the major market outlet

for many of the traditional crops as well as making the compulsory procurement

of non-food crops and certain proportions of several food crops. Each cooper-

ative is managed by an agricultural engineer paid by the Ministry of Agricul-

ture to carry out both managerial and extension activities. A chief accountant

employed by the GOACC oversees both credit and marketing, and other staff

generally include a storekeeper and 1-2 clerks. There is in some areas an

overlap between Old Lands and Reform Lands cooperatives which both exist in a

particular village. This tends to weaken both societies, and in addition many

cooperatives are characterized by low levels of managerial skills and lack of

profitability.

8. Each year the government sets buying prices at the cooperatives for

most commodities. Generally these are lower than those obtainable in the free

market, and the latter has widespread activity in spite of Government's favor

for the cooperative system and occasional discrimination against the free

market. The latter operates most widely for non-traditional crops, particu-

larly vegetables and non-citrus fruits. Government-established organizations--

the El Nile and El Wadi companies and the Union of Producers and Exporters of

Horticultural Crops (UPEHC)--handle most exports of edible crops such as rice,

potatoes, groundnuts, onions, tomatoes and citrus fruit. Government had a

mandatory procurement in 1975 of 25% of wheat, 50% of rice and 100% of the

cotton crop which Is totally regulated, including the specification of areas

sown. Sugar cane is delivered to local factories which control production

each in their own surrounding areas.

9. The GOACC and ACC Banks are responsible for receiving all fertilizers,

pesticides, processed animal feedstuffs and gypsum for soil amelioration, and

for transporting and distributing these to agricultural cooperatives. For fer-

tilizer, average recommended rates are set by the Ministry of Agriculture for

each crop in each district and these are minimum levels which the farmers can

purchase. Fertilizers are obtained by the ACC Banks from the Agricultural

Stabilization Fund in the Ministry of Agriculture which imports or procures

locally. The GOACC has about 400 fertilizer warehouses nationwide with a total

capacity of about 400,000 tons. Pest control chemicals are included in credit

ANNEX 9Page 4

arrangements (either in kind or cash) through the cooperatives for manycrops, but pest control in cotton is implemented by the cooperatives themselveswith expenses divided among farmers according to their cotton areas. Certi-fied seed is also delivered by the ACC Banks through the cooperatives undersupervision of the Seed Department of the Ministry of Agriculture.

Market Outlook and Prices - Main Inputs and Outputs

10. Fertilizers. Egypt manufactures its total requirements of phosphaticfertilizers, mainly in the form of single superphosphate (15% P205) made from

local phosphate rock and imported sulphur. Total installed capacity is about100,000 tons of P205 per year. Projected increases in phosphate consumption

(Table 2) may be met from either capacity expansion (tentatively planned) orimports. The price to the farmer was LE 15.58/ton (15% P205) in 1974, which

was considerably below international phosphate prices. Based on IBRD projec-tions for Triple Superphosphate, whose price level is expected to fall somewhatin terms of constant 1975 prices, an economic price of LE 47 per ton is adopted.Most major types of nitrogenous fertilizers are manufactured in Egypt, butimports are still substantial and are expected to remain so until 1978, whenthe Talkha urea plant comes on stream (Table 2). The price in 1974 was aboutLE 21/ton (15.5% N) considerably below international market prices. An economicprice of LE 46/ton is adopted, reflecting IBRD projections for Urea in the inter-mediate term.

11. Wheat. An increase in wheat production of about 45,000 tons is ex-pected with the project, compared with present production of about 117,000 tons.Egypt remains a substantial importer (1.5 million tons of wheat and 0.2 mil-lion tons of flour in 1973 compared with production of 1.9 million tons ofwheat in 1973/74 - Table 3) and this situation is likely to continue so thatincreased production will be readily absorbed and will substitute for imports.The farm price was LE 46.93/ton in 1974 (including higher priced Mexicanwheats) and the official price in 1975 for local varieties was LE 46.67/ton(Table 4). Prices of LE 46/ton for financial analysis and LE 100/ton foreconomic analysis are adopted, the latter based on projected import parityprices.

12. Maize and Sorghum. These crops, whose output is projected to in-crease with the project from about 377,000 tons to 481,000 tons, are not thesubject of official price setting in Egypt because they are regarded as sub-sistence commodities entering the market system in only a small way. Averagerealized prices in 1974 were respectively LE 50.79/ton and LE 43.86/ton. Inthe intermediate term, in international markets, both commodities are expectedto face price reductions (in terms of constant 1975 prices) with the declinebeing slightly greater for sorghum than for maize. Basec on projected importparity levels, economic prices are adopted of LE 73/ton for maize and LE 66/tonfor sorghum.

ANNEX 9Page 5

13. Sugar Cane. Production of sugar in Egypt rose from 1970 to 1973but fell back somewhat in 1974, accompanied by a significant rise in imports.For several years prior to 1974 Egypt had both exported and imported sugar,but a previous export surplus had changed into a deficit, with imports in-creasing to sustain steadily rising domestic consumption (Table 3). It islikely that the increased sugar produced as a result of the project (about29,000 tons) will be absorbed domestically as a substitute for imports.For financial analysis, a price of LE 6/ton of sugar cane is adopted, thisbeing the official buying price for 1975. This price is considerably belowequivalent prices for internationally traded sugar, which reached a cyclicalpeak in 1974 but are projected to decline substantially. Based on projections,and making allowances for sugar extraction percentage, processing costs, etc.,an economic price of LE 19/ton sugar cane is adopted.

14. Onion. Egypt is the world's largest exporter of onion, which isthe country's fourth most important export crop. Most of the exports are stillin the form of fresh bulbs, but the proportion being sent in dehydrated form isincreasing. Winter onion, grown solely in Upper and Middle Egypt, is themain source of all onion exports. Because of heavy attacks of white rot diseasein recent years, encouraged in large measure by increasingly wet soil conditionsdue to inadequate drainage, production and exports of onion have been declining.The drainage project will arrest these declines, although getting rid of thedisease will cause recovery to be slow. The project is estimated to increaseproduction by 20,000 tons (39%) within 9 years. Exports are expected to in-crease somewhat, and projected demand increases in European markets shouldensure that export prices will at least not fall. For financial analysis theprice of LE 22/ton is adopted, an average over all grades for official pricesin 1975. For economic analysis, export prices are taken to stabilize at aboutthe level achieved in the 1973/74 season, and a farmgate price based on thisis LE 82/ton.

15. Cotton. This is the single most important crop in Egyptian agricul-ture, providing 74% of the value of raw agricultural exports in 1973 and, inthe form of yarn and textiles, 55% of the value of processed exports. In 1974,raw cotton and cotton yarn together accounted for 52% of the value of allexports, and cotton textile exports would further boost this percentage.Years of careful breeding have developed cotton varieties with extra longstaple and extremely high quality, commanding premium prices in the inter-national market. In recent years most of Egypt's cotton exports have gone tothe USSR and Eastern Europe under bilateral agreements, but it is thoughtthat some of this is re-exported to other European markets. An increasingproportion of the cotton crop has been used in the domestic textile industry,rising from about 38% of total lint produced in 1970/71 to about 41% in 1973.Of the cotton lint used locally, probably about 60% had staple length 1-1/8 -1/-1/4 inches, 25% had staple length 1-1/4 - 1-3/8 inches, and 15% was in theextra long staple category over 1-3/8 inches. International cotton pricesjumped in 1973 and 1974 but fell back again in 1975. The official priceto farmers in Egypt partly reflected the earlier increases by moving from

ANNEX 9Page 6

LE 150.22/ton (unginned cotton) in 1974 to LE 162.92/ton in 1975. A levelof LE 163/ton is adopted for financial analysis. Based on projections, aneconomic price is adopted of LE 1,116/ton for cotton lint, which translatesinto a farmgate price of LE 405/ton for unginned cotton, allowing for baling,handling, storage and ginning costs, and a value of LE 80/ton for cotton seed.One ton of unginned (seed) cotton is assumed to produce 356 kg of lint, 635kg of seed and 9 kg of scarto. The project is expected to increase totalproduction of unginned cotton by 24,000 tons, from 86,000 tons to 110,000tons, over a period of 9 years.

16. General. As can be seen from data presented (Tables 4 and 5) andthe above discussion, the Government has been following a policy of keepingretail prices for agricultural commodities at low and stable levels. Thishas been achieved by also keeping farmgate prices low by international stand-ards, using a combination of mandatory procurement and a very visible officialpresence. The situation is further complicated by the fact that the currencyis widely viewed as being overvalued, and the Government itself has establisheda parallel market, which will be gradually extended to cover most transactions,in which the exchange rate was LE 1 = US$1.70 at the time of appraisal, bycomparison with the official exchange rate of LE 1 = US$2.56. Consequently,prices used for economic analysis of this project, based on internationallevels, are generally considerably higher than those used for financialanalysis, based on domestic prices.

APPRAISAL OFANNEX 9

UPPER EGYPT DRAINAGE II PROJECT Table 1

ARAB REPUBLIC OF EGYPT

Egypt - Agricultural Credit(LE million)

(a) Loans by Term

Total LoansYear (LE million) Medium-Term Short-Term

1959/60 36.6 1.5 35.11960/61 39.4 1.2 38.21961/62 42.4 0.9 41.51962/63 53.9 2.1 51.81963/64 59.5 3.2 56.31964/65 65.4 2.6 62.81965/66 79.4 1.3 78.11966/67 86.4 2.2 84.21967/68 78.6 2.3 76.31968/69 68.8 1.9 66.91969/70 80.8 1.8 79.01970/71 77.0 0.9 76.11971/72 1/ (77.0) (0.9) (76.1)1972/73 77.9 1.1 76.81973/74 83.7 1.3 82.41974/75 81.4 1.8 80.6

(b) Loans by Input Classification

Tractors Machinery Livestock Seeds Insecticides Fertilizers(Cattle)

1959/60 - .8 0.6 1.9 - 12.61960/61 - .7 0.6 2.3 - 16.41961/62 .5 .7 0.2 2.8 1.6 17.11962/63 .1 1.5 0.6 2.7 6.9 20.31963/64 - .7 1.0 2.9 9.0 20.41964/65 .3 .8 1.3 3.0 6.0 25.31965/66 1.2 .9 1.9 4.6 7.8 34.71966/67 .9 1.8 2.3 5.8 9.6 38.01967/68 .8 1.9 .9 8.9 7.2 35.91968/69 .2 1.6 .9 7.5 6.3 32.01969/70 .6 1.5 2.3 7.3 9.2 35.01970/71 - .6 1.8 7.7 9.5 32.61971/72 .5 .7 2.2 7.5 12.0 30.81972/73 .5 .7 2.3 6.8 5.2 37.71973/74 1 3.2 6.7 6.8 37.71974/75 3 1.8 8.0 9.1 35.7

(c) Loans by Crops

Total Other OtherCrop Cotton Field Vegs. &Loans Loans Rice Wheat Maize Crops Onions Fruits

1959/60 27.3 9.6 2.7 5.3 5.5 2.6 .2 1.41960/61 32.5 11.5 2.0 6.0 7.6 2.8 .6 2.01961/62 36.7 11.5 2.0 9.9 7.6 2.8 .7 2.01962/63 46.3 19.7 4.6 6.9 7.6 4.9 .3 2.31963/64 50.6 23.2 5.5 7.5 5.4 5.8 .1 3.11964/65 58.6 25.6 8.3 7.5 7.3 6.4 .2 3.31965/66 71.3 34.7 6.7 10.2 9.2 7.5 .4 2.61966/67 79.1 42.1 7.2 8.7 10.4 7.9 .4 2.41967/68 73.3 35.3 7.8 8.2 10.2 7.8 .8 3.21968/69 65.3 30.5 8.0 7.0 8.8 7.3 .9 2.81969/70 75.5 38.5 8.8 8.8 8.8 7.6 .7 2.31970/71 73.4 38.8 8.8 8.0 8.1 6.9 .7 2.11971/72 74.2 35.8 7.3 8.0 6.3 9.4 .6 2.71972/73 73.9 32.4 8.9 11.1 8.2 9.5 .6 3.21973/74 78.8 37.7 8.2 11.0 7.4 9.6 .6 4.31974/75 78.7 34.7 8.5 12.3 7.5 10.8 .7 4.2

1/ According to officials of Egyptian General Organization for Agriculture and CooperativeCredit, loans in 1971/72 were about the same as in 1970/71.

Source: Egyptian General Organization for Agricultural and Cooperative Credit.

March 26, 1976

ANNEX 9Table 2

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Fertilizers - Consumption and Supply('000 tons of nutrients)

1971/72 1972/73 1973/74 1974/75 1975/76 1978 1982 1985-----------Projected…--------------------

Consumption

Nitrogen 327 308 356 381 409 456 506 514Phosphate 66 n.a. n.a. 123 129 192 211 211Potash 1.5 n.a. n.a. 31 32 60 74 77

Production

Nitrogen 105 103 n.a. 109 217 473 533 533Phosphate 76 80 n.a. 97 110 110 110 110

Imports

Nitrogen 235 n.a. n.a. 272 192 - - -

Sources: Ministry of Agriculture, IBRD estimates.

March 26, 1976

ANNEX 9Table 3

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Production, Exports and Imports of Agricultural Commodities('000 metric tons)

1965 1970 1972 1973 1974 1975

Production

Wheat 1,272 1,516 1,616 1,838 1,884 1,884Maize 2,141 2,393 2,417 2,507 2,750 2,640Sorghum 8o6 874 731 853 860 824Rice (paddy) 1,788 2,604 2,509 2,274 2,501 2,242Barley 130 83 106 96 95 89Beans 344 277 361 273 290 234Lentils 61 33 54 61 53 51Onions 670 437 403 435 550 n.a.Sugarcane 4,747 6,945 7,713 7,349 7,350 7,018Cotton (unginned) 1,501 1,404 1,422 1,368 1,285 1,204Vegetables 4,636 5,222 5,472 5,778 5,800 6,005Citrus Fruit 482 706 825 923 950 963Dates 386 294 390 380 375 396Other Fruit 352 384 522 515 525 612

Exports

Rice 297 257 266 257 n.a. n.a.Onions 159 91 105 89 n.a. n.a.Sugar (processed) n.a. 50 11 42 _ n.a.Cotton (lint) 330 285 295 285 n.a. n.a.Potatoes 44 90 77 108 n.a. n.a.Oranges 3 102 82 246 n.a. n.a.

Imports

Wheat 1,230 851 1,386 1,490 n.a. n.a.Wheat flour 610 275 216 227 n.a. n.a.Sugar (processed) n.a. 45 71 61 103 n.a.

Source: Ministry of Agriculture

March 26, 1976

ANNEX 9Table 4

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Farm Gate Prices of Agricultural Products 1965, 1970-1974

Crop 1965 1970 1971 1972 1973 1974------------------------- LE/ton -------------------------

Wheat 30.2 39.28 35-35 34.68 38.02 46.93Barley 25.73 34.31 41.98 32.48 39.23 51.92Maize 25.06 29.98 28.20 34.84 43.41 50-79Rice 21.25 28.42 27.46 26.84 28.17 35.13Beans 49.79 47.40 57.40 54.63 53.79 86.00Cotton 99.60 115.38 115.64 125.97 123.69 150.22Peanuts 90.77 86.64 87.17 88.37 91.17 119.33Sugarcane 2.82 2.91 2.89 3.22 4.o6 6.51Onions, Winter 11.60 14.02 15.53 13.76 18.97 19.24Onions, other 14.31 13.71 15.61 14.40 17.12 19.84

Vegetables

Winter 17.36 24.34 22.41 26.15 38.54 n.a.Summer 14.60 17.66 18.98 30.90 22.42 n.a.Nili 21.10 24.46 25.38 37.24 40.51 n.a.

Fruits

Citrus 22.99 24.09 24.32 26.22 30.86 32.00Dates 25.00 25.00 25.00 28.00 30.00 40.00Other 43.25 39.10 48.4o 50.44 52.27 n.a.

Livestock Products

Milk 50.00 57-70 62.70 65.80 73.00 85.80Cattle Meat 382.00 487.00 483.00 502.00 550.00 613.00Poultry Meat 356.00 326.00 389.00 401.00 446.oo 478.00Eggs 212.50 262.50 275.00 315.00 345.00 400.00

Source: Agricultural Research Center, Ministry of Agriculture

March 26, 1976

ANNEX 9Table 5

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Prices of Some Supply Commodities(LE/metric ton)

July-Dec /l /21971/72 1972 1973 1974 1975- 1976L-

Average Import PricesWheat 29.6 28.7 73.0 99.3 100 70Wheat flour 35.6 33.2 78.3 111.1 120 85Maize 25.0 28.8 52.3 70.8 75 65Vegetable oil 173.6 141.1 193.5 347.8 400 340Lentils 82.7 90.1 261.1 227.2 225 245Sesame 132.2 156.5 - 235.0 280 280Sugar - - 127.0 286.o 300 240

Domestic Buying PricesWheat 33.3 33.3 33.3 43.3 46.7 53.3Maize - - 45.0 - 5. 5Rice (paddy) 27.0 27.0 27.0 32.0 40.0 40.0Sesame 87.5 93.0 100.0 158.0 175.0 183.3Horse Beans 51.6 51.6 51.6 58.0 83.8 83.9Sugar /3 23.4 26.2 31.8 - 45.5 -

Selling PricesWheat 29.5 29.5 29.5 30.9 28.2 29.2Wheat flour 51.9 51.9 51.9 55.0 55.0 67.8Maize 30.0 33.0 33.0 33.0 33.0 33.0Rice (bleached) 51.0 51.0 51.0 51.0 51.0 51.0Vegetable oil (ration) 49.7 49.7 49.7 49.7 49.7 49.7Lentils 79.0 98.0 98.0 98.0 98.0 98.0Horse Beans - - 51.6 51.6 51.6 51.6Sesame 110.0 110.0 110.0 110.0 110.0 210.0Sugar (ration)L4 70.0 70.0 70.0 96.6 70.0 100.0Sugar (additional) 150.0 150.0 150.0 250.0 245.0 245.0

/1 Import prices are based on budget assumptions and actual contracts entered intoduring January-March, 1974; domestic buying and selling prices are as of April,1974.

/2 Budget assumptions./3 Cane price divided by average sugar extraction ratio (0.11) to improve comparability

with selling price; the latter, however, includes processing and distribution costs./4 Ration amount is 0.75 kg. per person per month.

Source: General Authority for Supply Commodities.

March 26, 1976

ANNEX 10Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Farm Models

1. In the project area, about 34% of the holdings are farmed by theowner, 28% are partly owned and partly rented, and 38% are farmed by tenants.Average sizes of farms in the three categories are respectively 3.1 feddans,5.4 feddans and 1.7 feddans. Although the overall average farm size is 3.4feddans, about 75% of the holdings are less than 3 feddans, occupying only 25%of the cultivated area and averaging 1 feddan in size. An additional 20% ofthe holders farm between 3 and 5 feddans, covering about 30% of the land area.Five farm models have been developed to reflect the land distribution and thecropping situation in the project area. Three models depict the budgetestimates for farms growing cotton, mainly in areas of the Governorates ofBeni Suef, El Minya and Asyut. These three models are a 3.1 feddan, owner-operated farm, a 1.7 feddan, tenant-operated farm and a small tenant holdingof 1.0 feddan to illustrate the situation for the majority of small operators(Table 2). Two models are used to indicate situations on sugar cane farms inthe Governorates of Qena and Aswan, again a 3.1 feddan, owner-operated unitand a tenant farm of 1.7 feddans (Table 3).

2. Assumptions used in these farm models with respect to areas undervarious crops and the yields achieved with and without the project are setout in Table 1. The cotton farms have an overall crop intensity of 185%and the cane farms about 156%. Further assumptions underlying the budgetestimates are as follows:

(a) Prices for outputs and inputs are outlined in Annex 13,Table 1, in the column headed "Prices for Financial Analysis".They are based on average farmgate prices currently expe-rienced in the area, or on officially announced prices forcertain of the crops.

(b) There would be sufficient labor available in most farmfamilies to meet labor requirements in all of the models. Inthe cost estimates, all labor has been valued at a wage rateof LE 0.45 per day, and the value of labor has been addedback into the net returns figures, on the assumption thatmost of it is, in fact, unpaid family labor.

(c) All crop output has been valued at the farmgate prices men-tioned above. However, a certain proportion of output wouldnot be marketed but would be consumed directly by the farmfamily. In computing net cash returns, it has been assumedthat the following amounts would be retained, and their value(LE 44) has been deducted from the total:

ANNEX 10Page 2

Per Family

Item Kg. Value (LE)

Wheat 100 4.60Maize/Sorghum 600 28.20Beans 55 4.68Vegetables and Fruits - 6.19

Total 43.67

(d) The land tax is assumed to be LE 4.00 per feddan at present oncotton farms and LE 3.50 per feddan on sugar cane farms. Ontenant-operated farms, rent is taken to be a multiple of sevenof the land tax. With the project, the rent is increased by theamount of the incremental land tax, since the tenancy law allowsan owner to pass on any increased land tax as a rent increase.Other taxes are assumed to be initially 100% of the land tax,and owners cannot pass these on to tenants. Tile drainagecharges are LE 6.33/feddan, which is the annual payment neededto recover investment in tile drains (plus a 10% administrationcharge)over a period of 20 years without interest.

3. It is estimated that with the project, the net cash incomes offarmers illustrated by the five models would rise as follows: for 3.1 feddan,owner-operated cotton farms by LE 94 (US$241) or 37%; for 1.7 feddan, tenant-operated cotton farms by LE 49 (US$125) or 54%; for 1.0 feddan, tenant-operated cotton farms by LE 30 (US$77) or 88%; for 3.1 feddan, owner-operatedsugar cane farms by LE 76 (US$195) or 32%; and for 1.7 feddan, tenant-operatedcane farms by LE 40 (US$102) or 48%. Without the project, all farmers wouldexperience significant declines in cash income, as production decreased,because of drainage problems.

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Farm Models - Basic Assumptions

Crop Areas (feddans) Crop Yields (m.t.Ifed.)

Cotton Farms Suga-r Cane?. FarrsWith

3.1 fed. 1.7 fed. 1.0 fed. 3.1 fed. 1.7 fed. Present Project (10 years)

-heat 0.62 0.34 0.20 0.93 0.51 0.950 1.285 + 35% (1.3)

Maize 1.55 0.85 0.50 - - 1.450 1.800 + 25% (1.5)

Sorghum - - - 1.49 0.82 1.450 1.800 + 25% (1.7)

Beans 0.62 0.34 0.20 0.62 0.34 0.850 1.150 + 35% (1.5)

Cotton 1.02 0.56 0.33 - - 0.700 0.875 + 25% (0.93)

Sugar Cane - - - 0.78 0.43 34.000 39.000 + 15% (36.6)

Onions - - - 0.16 O.C9 6.900 9.300 + 35% (9.3)

Vegetables 0.43 0.24 0.14 0.23 0.13 6.600 8.250 + 25% (6.6)

Berseem (perennial) 0.47 0.26 0.15 0.62 0.34

Berseem (catch crop) - 1.02 0.56 0.33 - _

Total area of crops (fed.) 5.73 3.15 1.85 4.83 2.6f

Cropping intensity (%)/2 185 185 185 156 156

/1 Grown for several months preceding cotton

/2 Area sown to crops - area of farm

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECTARAB REPUBLIC OF EGYPT

Budgets for Cotton Farms (Beni Suef. El Minya. Asyut)

Owner-Cultivated 3.1 Feddan Tenant 1.7 Feddn Tenant 1.0 yeddgnYear 10 Year 0 Year 10

With Without With Without With WithoutPresent Prolect Project Present Project Project Present Project Project

-LE----------------------------------------------------------------- LE---________

Gross Value of Production

Wheat 27 37 24 15 20 13 9 12 8Maize 112 140 102 62 77 56 36 45 33Beans 45 61 40 25 33 22 14 20 13Cotton 116 146 102 64 80 58 38 47 34Vegetables 159 199 144 89 111 80 52 65 47

TOTAL 459 583 412 255 321 229 149 189 135

Costs of Production

Cultivation 27 27 27 15 15 15 9 9 9Seeds 28 28 28 15 15 15 9 9 9Fertilizers 39 39 39 22 22 22 13 13 13Chemicals 14 14 14 7 7 7 4 4 4Labor /1 102 116 98 56 64 54 33 37 32Other Costs 26 33 23 14 18 13 8 11 7

TOTAL 236 257 229 129 141 126 76 83 74

ChargesLand Tax or Rent /2 12 15 11 47 49 42 28 29 25Other taxes 12 12 11 - - - - - -Tile drainage charges - 20 - - 11 - - 6 -

TOTAL 2L 47 22 47 60 42 28 35 25

Net Returns /3Before deducting charges 325 442 281 182 244 157 106 143 93After deducting charges 301 395 259 135 184 115 78 108 68Value of Subsistence Crops 44 44 44 44 44 44 44 44 44Net Cash Income 257 351 215 91 140 71 34 64 24

/1 Family labor valued at going wage rate./2 Land tax for owner - aultivated farm, rent for tenants./3 Including value of family labor.

May 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Budgets for Sugar Cane Farms (Qena. Aswan )

Owner-Cultivated 3.1 Fedden Tenant 1.7 FeddanYear 10 Year 10

With Without With WithoutPresent Project Project Present Pro1ect Proiect-----------------------------------------------LE-------------------------------------------------

Gross Vplue of ProductionWheat 41 55 37 22 30 20Sorghum 95 118 86 52 65 47Beans 45 61 40 25 33 22Sugar Cane 159 183 144 88 101 79Onions 24 33 22 14 18 12Vegetables 85 106 77 48 60 43

TOTAL 449 556 406 249 307 223

Costs of ProductionCultivation 23 23 23 12 12 12Seeds 44 44 44 24 24 24Fertilizers 42 42 42 23 23 23Chemicals 4 4 4 2 2 2Labor Aj 122 137 116 67 75 64Other Costs 33 41 30 18 23 16

TOTAL 268 291 259 146 159 141

ChargesLand Tax or Rent /2 11 14 10 42 44 38Other taxis 11 11 10 _ _ _Tile drainage charges - 20 - - 11 -

TOTAL 22 45 20 42 55 38

Net Returns /3Before deducting charges 303 402 263 170 223 146After deducting charges 281 357 243 128 168 108Value of subsistence crops 44 44 44 44 44 44

Net Cash Income 237 313 199 84 124 64

1 Family labor valued at going wage rate2 Land tax for owner-cultivated farm, rent for tenant

Including value of fanily labor.

Mfay 1976 IL

CD

ANNEX 11Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Economic Rate of Return

1. Economic rates of return were calculated on the basis of data dis-played in Table 1. The following assumptions underlie these calculations anddata:

(a) the shadow rate of exchange is LE 1.00 = US$1.70, and thesensitivity of results is tested with the official exchangerate of LE 1.00 = US$2.56;

(b) project costs include physical contingency allowances as outlinedin Annex 6, Tables 2, 3 and 4;

(c) prices for economic analysis (Table 2) are based on IBRD projec-tions for international markets, adjusted to a farmgate level bytaking account of transport and handling costs, and costs atLE 22/ton of lint for cotton ginning (including transport andstorage), LE 5.50/ton of sugar for sugar processing, and LE3.50/ton for bags for onions. A conservative yield of sugarfrom cane of 10% is assumed (the average in Egypt is around11%), 3% is added to sugar values for the molasses by-product,and one ton of unginned cotton is assumed to yield 355.56 kglint, 634.92 kg seed (valued at LE 51) and 9.52 kg scarto(valued at LE 4);

(d) labor is valued at a rate of LE 0.45/day, the current averageremuneration, since under the multiple cropping pattern in theproject area labor demand peaks are spread through the year;

(e) crop yields would rise over present levels by from 15% to 35%with the project (Annex 4) and without the project would declineby about 30% over a period of 35 years;

(f) no benefits have been assumed from cultivation of berseem orfrom fruits, because of lack of data, although the investmentin drainage would increase somewhat the production of these crops;

(g) drainage pumps are assumed to be replaced in years 12 and 24(Annex 7) and equipment salvage value totalling US$5.1 millionis credited to the project in years 5 and 6; and

ANNEX 11Page 2

(h) on-farm costs for cultivation, seeds, fertilizers and chemicalsare assumed to be the same with and without the project (withthe exception of the 12,000 feddans of reclaimed land), but thereare changes in inputs directly related to yields, such as harvestlabor and transportation charges.

2. The economic rate of return for the project as a whole (excludingthe bilharzia component) is estimated to be 29%. Two sets of sensitivitycalculations were performed. First, benefits and costs were respectively re-duced and increased by 20%, to simulate changes in basic project parameterssuch as unit costs, prices and yields. Second, all elements of the projectinvolving foreign exchange were revalued in Egyptian pounds using the officialexchange rate of LE 1.00 = US$2.56. For this sensitivity test all prices ofgoods which would be exports or import substitutes were revalued at thealternate exchange rate (Table 2) and investment costs which would involveforeign currency transactions were treated similarly. Results of thesesensitivity analyses are as follows:

Exchange Rates

LE 1.00 = US$1.70 LE 1.00 = US$2.56

Basic rate of return 29% 27%Benefits decreased 20% 24% 22%Investment costs increased 20% 25% 24%On-farm costs increased 20% 29% 26%Benefits decreased 20% and all

costs increased 20% 20% 19%

3. During the construction period of the project (1977-1981 inclusive)it is estimated that about 7 million mandays of employment would be generatedfor unskilled workers, particularly in the laying of pipes and in constructionof main and branch drains. An estimated 2.4 million mandays of employmentfor skilled workers would be generated in project works. For continuingoperation and maintenance, about 253,000 mandays of unskilled labor and 31,000mandays of skilled labor would be required each year. On farms it is estimatedthat an additional 1 million mandays per annum would be required for the 12,000feddans of land which are brought into new production, and about 5 millionmandays per annum additionally in other areas, mainly at harvest periods as aresult of crop yield increases.

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECTARAB REPUBLIC OF EGYPT

Economic Cost and Benefit Flows ( LE Million )

Proiect Incremental Costs Project Benefits

Project Calendar With WithoutYear Year Investment 0 *nd M On-Farms Total Project ProJect Incremental

1 1977 30.5 - 0.1 30.6 151.8 150.2 1.62 1978 34.9 - 0.2 35.1 151.9 148.7 3.23 1979 24.8 - 0.6 25.4 153.4 147.2 6.24 1980 12.2 - 1.3 13.5 159.4 145.7 13.75 1981 11. 1.1 2.6 15.1 171.1/2 144.2 26.96 1982 - i 4.0 5.1 183.9LZ 142.8 41.17 1983 - " 5.1 6.2 190.1 141.3 48.83 1984 _ It 5.7 6.8 194.2 139.9 54.39 1985 - " 5.8 6.9 .. 138.5 55.7

10 1986 I it 5 9 7.0 137.0 57.211 1987 - 6.o 7.1 TV 135.7 58.512 1988 - "/i 6.1 7.2 it 134.3 59.913 1989 - i 6.3 7.4 " 132.9 61.314 1990 .. 6.4 7.5 131.6 62.6'15 l1991 - t' 6.5 7.6 " 130.2 64.o16 1992 I 6.6 7.7 128.9 65.317 1993 - 6.7 7.8 127.6 66.618 1994 _ 6.8 7.9 126.3 67.919 1995 - " 6.9 8.0 125.0 69.220 1996 - 7.0 8.1 " 123.8 70.421 1997 _ 7.1 8.2 122.5 71.722 1998 7.2 8.3 121.3 72.923 1999 " 7.3 8.4 " 120.0 74.224 2000 _ "/1 7.4 8.5 118.8 75.425 2001 _ 7.5 8.6 117.6 76.626 2802 " 7.6 8.7 "116.4 77.827 2003 "" 7.7 8.8 115.2 79.028 2004 - 7.8 8.9 114.1 80.129 2005 - 7.9 9.0 " 112.9 81.330 2006 - 8.o 9.1 111.8 82.431 2007 - 8.1 9.2 "1o.6 83.632 2008 - 8.2 9.3 109.5 84.733 2009 - 8.3 9.4 108.4 85.834 2010 _ 8.4 9.5 107.3 86.935 2011 - " 8.4 9.5 107.3 86.9

I Including replacement of pumps. Including salvage value of equipment

May, 1976

ANNEX 11Tabie Z

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

EGYPT

Prices for Farm Outputs and Inputs

Price for Financial Prices for Economic AnalysisAnalysis /1 /2 /3

Item Unit LE. US$ LE LE g

Outputs

Wheat metric ton 46 118 66 100 170Maize " 50 128 48 73 124Sorghum " 44 113 44 66 113Lentils " 130 333 225 338 576Beans " 85 218 145 217 370Onions " 22 56 53 82 138Cotton (unginned) 163 417 273 405 695Sugarcane 6 15 12.5 19 32Vegetables T" 56 143 56 89 147Fruit /5 42 108 42 68 112

Inputs

Nitrogen fert.(15.5%N) 21 54 35 46 84Phosphate "' (15% P205) 16 41 36 47 86Seeds - Wheat kg 0.05 0.13 0.05 0.05 0.13

Maize 0.06 0.15 0.06 o.o6 0.15Sorghum 0.05 0.13 0.05 0.05 0.13Lentils 0.15 0.38 0.15 0.15 0.38Beans 0.10 0.26 0.10 0.10 0.26Onions " 2.00 5.12 2.00 2.00 5.12Cotton 0.02 0.05 0.02 0.02 0.05Sugarcane metric ton 6.oo 15.36 6.oo 6.oo 15.36Berseem kg 0.24 0.61 0.24 0.24 0.61

Farm labor Manday o.45 1.15 0.45 0.45 1.15

/1 International prices converted at exchange rate LE 1 = US$2.56/2 International prices converted at exchange rate LE 1 = US$1.70/3 Using the two exchange rates does not always yield the same figure in US$,

because the economic prices in LE incorporate varying amounts of local costs,for transportation, processing, etc.

/4 A weighted average for tomato and other vegetables/5 A weighted average for citrus, grapes, dates and other fruits.

March 26, 1976

ANNEX 12Page 1

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Bilharzia Control I/

General

1. Bilharzia or schistosomiasis, as it is also called, is the mostimportant endemic disease in Egypt. It has existed since the time of thePharaohs and continues to affect an extremely large portion of the population.

2. The disease is caused by parasitic worms known as schistosomeswhich pass part of their life cycle in host snails. The transmission isthrough eggs of human excreta from infected individuals that are excretedin bodies of waters where snails dwell. These eggs develop into free swim-ming Miracidium which penetrate the appropriate snail. Within the hostsnail, free swimming Cercariae are produced. It is this organism whichpenetrates the skin of victims who happen to be in contract with water wherethe Cercariae are found. The Cercariae develop into schistosome worms whichlive in the blood vessels of humans.

3. Two types of schistosomiasis are present in Egypt: S. haematobium,the vector snail being Bulinus truncatus; and S. mansoni, the vector snailbeing Biomphalaria alexandrina. The snail S. haematobium is prevalent through-out Egypt but S. mansoni is confined to the Delta and in the neighboring GizaGovernorate of Upper Egypt.

Prevalency

4. S. haematobium is a serious delibitating disease involving theurinary system causing lesions of the bladder, ureters and other organs.Fever, general distress and listlessness are common symptoms. Those in-fected with bilharzia become more readily susceptible to other afflictionsof the bladder and viral hepatitis. The disease also causes liver flukein domestic animals. School children and farm workers are highly susceptiblebecause of their more frequent contact with water. The prevalence rate isusually higher among males than females. The highest prevalence rates re-ported are 53.5% in the age group 5-14 years and 48.5% in the cumulativeage group 15-29 years.

1/ Major Source: Ecological and Habitat Control of Schistosomiasis,Int. Conf. on Schistosomiasis, Country Profile - Egypt, Cairo,October 25, 1975.

ANNEX 12Page 2

5. The type of irrigation (basin vs. perennial) has an importantbearing on the rate of infection. Data from the Ministry of Health showsthat for Asyut, Sohag and Qena Governorates, the overall prevalence ratefor areas with perennial irrigation was 63.9%, (Asyut 68.1%, Sohag 61.9%,and Qena 62%), whereas it was only 16.2% (Asyut 18.5%, Sohag 10.4%, andQena 13%) in the basin irrigated areas. Since the commissioning of thehigh dam has led to a shift from basin to perennial irrigation these datahave significant implications. The prevalence rate of bilharzia is ex-pected to increase rather dramatically if effective control measures arenot adopted soon.

Control

6. The most effective control measure thus far is the eliminationof the vector snail by the use of molluscicides. Experiments in El Fayoumhave shown that effective control of schistosomiases is possible usingmolluscicides. Starting in 1969, using Bayluscide for spring, summer andautumn application yearly in the Bahr Youssef canal, the overall prevalencerate of schistosomiasis dropped from 45.7% in 1968 to 23.3% in 1971, and by1974, it was down to 9.1%. Examination of 6,300 children 0-2 years of agein 1971 showed none of them to be positive for bilharzia. Out of 7,600children aged 2-5 years, the prevalence rate was only 2-6% and all of thepositive cases were children 4-5 years who were born before the project wasinitiated. Likewise, fecal examinations at the Fayoum University Abattoirshave shown a continuous reduction in the incidence of liver fluke in domesticanimals.

Environmental Effect

7. Although the molluscicide (Bayluscide) may kill some fish in thewater when first applied, the effect is temporary and the fish populationshould restore itself. Fortunately, the fish can be eaten by humans withoutnarmful effects. Bayluscide is biodegradable, and when Bayluscide is comparedwith other molluscicides such as copper sulfate and sodium pentachlorophenate,it creates a minimum alteration to the ecological balance (microflora andmicrofauna) of a fresh water habitat. Moreover, experiments indicate thatBayluscide has no perceptible effects on fruits and foliage of rapidly growingcitrus trees.

Upper Egypt Drainage I

8. In Upper Egypt Drainage I Project, a program covering 900,000 feddansand about 3 million people in Asyut, El Minya, and Beni Suef Governorates hasbeen established following the principles conducted in the Fayoum experiment.This consists of an integrated snail control program coupled with chemotherapyfor infected persons. Having completed Phase I of the program, the full scaleproject will commence in late March, 1976.

ANNEX 12Page 3

Based on a cost effectiveness study, Bayluscide alone was found to besuperior to Frescon alone, and Bayluscide in combination with Frescon. Thus,Bayluscide will be the molluscicide used three times annually (spring, summerand autumn) in the project area. Bayluscide will be applied in the Ibrahimiaand Bahr Youssef irrigation canals and drains below the head regulator atDairut. Mass chemotheraphy of the infected population using metrifonate willalso be conducted. The chemotheraphy treatments will be carried out in ruralhealth centers, school health depots and in hospitals dealing with endemicdiseases.

9. Due mainly to the sharp increase in the cost of molluscicide,there has been a cost overrun in both the local and foreign exchange compo-nents of the Bilharzia Control Program of Upper Egypt Drainage I. Thiscost overrun amounts to US$2.97 million local funds and US$4.22 millionforeign currency (Table 1).

Upper Egypt Drainage II Project

10. Since the area upstream from Asyut Barrage to Dairut Barrage isan integral part of the region where the above Bilharzia project is presentlyconfined, and was not included in the original project, this vital and essen-tial control point would be added to Upper Egypt Drainage II Project. Thearea encompasses 120,000 feddans and its treatment would prevent reinfestationof the treated areas downstream in Upper Egypt Drainage I Project (Map IBRD12115). The estimated cost for treating the 120,000 feddans is US$0.16million local funds and US$0.88 foreign exchange (Table 2).

11. The cost overrun of US$4.22 million foreign exchange and US$2.97million local funds for Upper Egypt Drainage I Project, plus the foreign ex-change cost of US$0.88 million and local funds of US$0.16 million will beincluded in the budget for Upper Egypt Drainage II Project (Annex 6, Table 4).

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Bilharzia Control Program Under Upper Egypt Drainage I Project - Revised Cost Estimate

Appraisal Estimate Revised Estimate

Item Local Foreign Total Local Foreign Total

- -US$Million- - - - - - - - - - - -US$Million- - - - - -

Equipment and vehicles - 0.30 0.30 - 0.35 0.35

Molluscicides 0.88 4.32 5.20 1.70 8.50 10.20

Drugs (chemotheravv) 0.02 0.12 0.14 0.05 0.26 0.31

Consultants 0.06 0.54 0.60 0.01 0.05 0.06

Administration - Buildings 0.42 - 0.42 1.80 - 1.80

Sub-Total 1.38 5.28 6.66 3.56 9.16 12.72

Contingencies: Physical 0.14 0.53 0.67 0.36 0.92 1.28

Price 0.15 0.66 0.81 0.72 0.6i 1.33

T o t a 1 1.67 6.47 8.14 4.64 10.69 1/ 15.33

1/ of which US$4.22 million represents the value of 325 tons of Bayluscide.

March 26, 1976

APPRAISAL OF

UPPER EGYPT DRAINAGE II PROJECT

ARAB REPUBLIC OF EGYPT

Bilharzia Control Program Under Upper Egypt Drainage II Project - Cost Estimate

Local Foreign TotalItem - - - - - - -US$Million- - - - - -

Equipment and vehicles - 0.07 0.07

Molluscicides (60 tons) 0.13 0.66 0.79

Sub-Total 0.13 0.73 0.86

Contingencies: Physical 0.01 0.07 0.08

Price 0.02 0.08 0.10

T o t a l 0.16 0.88 1/ 1.04

1/ of which US$0.78 million represents the value of 60 tons of Bayluscide.

March 26, 1976

APPRAISAL OFUPPER EGYPT DRAINAGE 11 PROJECT

ARAB REPUBLIC OF EGYPTImplementation Schedule

CALENDAR YEAR _ACTI V I TY ~ __ 1976 1977 1978 1979 1980 1981

1. PLANNING - DESIGNMain drainsPumping station ......Tile drainage

2. PROCUREMENTEquip. for main drainsEquip. for pumping stationEquip. for PVC pipes I

Raw material for PVC pipes .... _ _ _,

Equip. for tile drainage ..........Vehicles, workshops, etc. -Equip. for land reclamation

3. CONSTRUCTIONMain drainsPumping stationTile drainageLand reclamation

4. CONSULTANTS

5. TRAINING _

........ Specifications and Tenders World Bank-15753

APPRAISAL OFUPPER EGYPT DRAINAGE 11 PROJECT

ARAB REPUBLIC OF EGYPTORGANIZATION CHART

FOR THE EGYPTIAN PUBLIC AUTHORITY FOR DRAINAGE PROJECTS

1Board of Dlirectors

|Chaiman

| Insfeecciun Ofa | Petlitics & Public || Consultant's Offiee Security Off ic, Tenfininul Office

| Vice-Chairman Lower Egypt | p Vice-Chairman Upper Egypt U

§ S Oesign Off.c. l | Design Office

D Oep Jty [ L l | DG Mechanicdl Deputy

DG E-ecution DOG Finance & Adni. | OG Planning & Ecaluation DOG Etection

C DGWes Deltau_ iac |Pang| DG As-, |

4 DG South Mid Delta l 4 Administration l l Research & E-lui G DGen

DG h DcF Up & Sttistin - DG Sohag

+ DG East DeltaX Training F | DG Asyot

DG Minya

DG Bei Suef

World eenB-t157M

BRD-12107

ARAB REPUBL C OF EGYPT

. X 5 1 >. fW Upper Egypt Drainage Project IIBes Suef GrrtreoerM GENERAL LOCATION

Areas -pered b, Uppar Egypt Drainage I, DA ProjectAreas e0e-ed by Upper Egypt Drap-ge It, lDA-ne Bek Per,ee

~~~~~~~~~~~~~~~~~Cr.|,aCltireteo aoses

N l

t, of detailed ay

Ass ~ ~ ~ ~ ~ ~ ~ ~ ~~~. Gt G.tr.......e i -

IsXE ___ _. __ A G

IQere, Qoesrmrota tori;L t

ifs, Qat1eS,

Mot -rot -i

12 d et es dxuir _es

casT rRE e, b

IBRD 12108^ , NTo innsn MAY 1976

ARAB REPUBLIC OF EGYPTEl Se:eide Kebli.

El Ioolac Kebli Upper Egypt Drainage Project IASWAN GOVERNORATE

Areas provided with tile drainage withgovernment's own resources

Areas covered by Upper Egypt Drainage I,IDA ProjectExisting open drains to be remodeled underUpper Egypt DrainageI, IDA Project

Main irrigation canalv uyl---Other irrigation canals

-s--i-Railways

< Towns

0 5 10 75

I DF U A R E A mi % KILOMEERnS8,000 FEDDANS vt ,,i 5

MIL

KOM OMBO WEST AREA, .Ai , qs }/40,000 FEDDANS

The boundaries shown -n stis map d,norimpio endorsement or a.eptance bh theWorid ashand it affliates Y7 Vb

OM,,y,,,p0,,iS ,_ ''1Kmmb

<I i ARAB REP4BLIC |A ~ ~ ~ ' N~~OF

EGYPT A.

|-i Awon |', '

r rS U D/A N

IBRD 12109

ARMENT AREA10,000 FEDDANS

= 3XF ~~~~Upper Egypt Drainage Project II

QENA GOVERNORATE (CENTRAL)

'A l oYOAreas provided with tile drainage with governmeit's

Area covered by Upper Egypt Drainage I,\ ~~~~~~~~~~~IDA Project

\ - ~~~~~~~~~~Areas covered by Upper Egypt Drainage H,\ \ ~~~~~~~~~~IDA and Bank Project

\\ \\& | ~~~~~~~~Existing open drains to be remodeled underUpper Egypt Drainage I, IDA Project

e b e h o - New open drains to be constructed under><5,\ 9\\g ~~~~~~~Upper Egypt Drainage I, IDA Project

s e t or o bExisting open drains to be remodeled underWod kdUpper Egypt DrainageIL, IDA and Bank Project

4Ed s Set\ 1New open drains to be constructed underi\<,J0\\ ~~~~~~Upper Egypt Drainage II, IDA and Bcnk Project

| . \ms Az ~~~~~~Main irrigation canals

ts X k '% \ -- O~~~~~ther irrigation canals^}1 ! .\)\\\ N S | ~Railways

K ome R A RIeA T10,000 FEDDA NS

Th, b-Xd n- rhown on thk -ap d, -tr 01 ip tp 3 0 30 4 0 460 70 drmply ttd--rmet or aeprn- by rh~ MILES fSz A WorldB.nk.ndirl-ffifit- e ll v k| IE

| rr i Q~~en\,

i U DA N 4

IBRD 12110MAY 1976

ARAB REPUBLIC OF EGYPT

fftiBaIyono Upper Egypt Drainage Project 11t 11 E Ballyans8o,

QENA GOVERNORATE (NORTH)

OPUMPINHAMAAREA PUMPN\ ~~~~~~~~~~~~2 8, 0 00 F E DDANI\,\

'ABU HOMAR PUMPING STATION S

/ 7 EL MA5ASHOA / 9 00 FHE 'ANS

Nag Hammad

Area provided with tile drainage with governmentsOwn resources

Areas covered by Upper Egypt Drainage I, IDA Project

Areas covered by Upper Egypt Drainage II, IDA and Bank ProjectThe bolm,danes dlowm on rhil 'nap do not imply ends.-ene o , -ttop bv yr * Pumping stations constructed by the governmentWm Ild- b',n 1h t ,idt

, Existing open drains to be remodeled underUpper Egypt Drainage I, IDA Project

ISRAEL.---.-- ~ ;New open drains to be constructed under

J -* - \ ) J Upper Egypt Drainage I, IDA Project HEGAZA AREA / Pr /e >t19,000 FEDDANS ~~* ARA B I I| . Existing open drains to be remodeled under

REPUBLIC Upper Egypt Drainage II, IDAand Bank ProjectOF EGYPT . New open drains to be constructed under

Upper Egypt Drainage II, IDA and Bank Project

0- Qenai N *,,s, ,.N Main irrigation canals_Nrv j0 5 \ O 1 5 20 25 Other irrigation canals

iKILOMETERS I-I- I R--i-l-wRailway0 5 10 1 5 Towns

j S U 0 A N / < ?

IBRD 12111MAY 1976

ARAB REPUBLIC OF EGYPT

Upper Egypt Drainage Project IITo7\ AsyoSOHAG GOVERNORATE

Area provided with tile drainage with\t W governments own resources

Areas covered by Upper Egypt Drainage I,=IDA Project

Areas covered by Upper Egypt Drainage I[,EL BADARY IDA and Bank Project

AbuTi \ 29,000 FEDDANS Existing open drains to be remodeled underUpper Egypt DrainageI, IDA Project

------ New open drains to be constructed underUpper Egypt Drainage I, IDA Project

Existing open drains to be remodeled underUpper Egypt DrainageI, IDA and Bank Project

------ New open drains to be constructed underUpper Egypt DrainageIT, IDA and Bank Project

Main irrigation canals-\ o \%gOther irrigation canals

\ < Ak Xc} | | * ~~~~~~~~~~~~RailwayThe boundaries shown ontismapdonotTowns

WESfTerTAHTA AREA .1-..HGAE6,00C FEDDANS ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~2,00FEDN

'1~w '

ARAB REPUBLIC ~ ~ ~ ~ ~ ~ ~ ~ ~ AKMI AE

OF Sohog ohin 3OO FDDN

J ~~~~~~~~~~~~~~~SHTh, &-uderies show-o this mp do not

imply end-rsmet ..or. ecptenc by the \

World Benk end its qfflifi& o l &

ARAB RES U D ICNNo||MILES__ ~~~~0 5 10 iS2 5 lSe,hM

IBRD 12112MAY 1976

Med,per-rsyzov Seal 1 ;1ISRAEL;. .' i

EL BADRAMANV PUJr -t<P M MPING STATION

AsyutAsu 7

ARAB REPUBLC OF EGY(PT ~ elga o

NLake, ½°<E1 Dt0 1 .), .NNasser J AL

,_ _ _ _;, ._ jV ol / 0 . /x~~~~~Bl GjAB4. AREA .s u DA N 18,000 FEDCANS

The bondanes shown on thi,s map do no-i.nply edo-rsemen or ace-ptanee by the t>

Wotld Bnkh and at m affsIites. \

Cl'~~~~~~~~~~C

~~~~ DA~~~~~~IRUTARAB REPUBLIC OF EGYPT tElM\hmodi

Upper Egypt Drainage Project II , l

ASYUT GOVERNORATEArea provided with tile drainage with government'sown resources

Areas covered by Upper Egypt Drainage I, IDA Project \ i

Area covered by Upper Egypt DrainageIE, IDA andBank Project

Pumping station constructed by the government

Existing open drains to be remodeled underUpper Egypt Drainage I, IDA Project

New open drains to be constructed underUpper Egypt Drainage I, IDA Project

Existing open drains to be remodeled under r t ,Upper Egypt Drainage H, IDA and Bank Project

New open drains to be constructed underUpper Egypt Drainage I[, IDA and Bank Project

Main irrigation canals

Other irrigation canals

-I Railway

Towns

0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

0 2 4 6 8 10

KILOMETERS

0 2 4 6 | \MILES \

BENI SALEH r PUMPING S-ATION ARAB REPUBLIC OF. EGYPT

SAKOLA TTIO El hn Upper Egypt Drainage Project TTElPosos l eEL MINYA GOVERNORATE

J e w proved with tidr e with

Areas covered by Upper Egypt Drainage I,

Areas covered by Upper Egypt Drainage I[,

| PING STATION IDA and Bank Project* Pumping stations constructed by the government

* Pumping stations under Upper Egypt Drainage 1,

| _ ;llgljt sMogh.ght IDA Project* Pumping station under Upper Egypt Drainoge II,

IDA and Bank ProjectExisting open drains to be remodeled underUpper Egypt Drainage I, IDA Project

New open drains to be constructed underUpper Egypt Drainage I, IDA Project

~ S P] 0 50 EDDANS uExsting open drains to be remodeled underUpper Egypt Drainage Tr, IDA and Bank Project

PEIR EN STANKON I Beni Moz-r New open drains to be constructed underUpper Egypt Drainage IE,IDA and Bank Project

BENI MAZAR PUMPING StAP, Bohr Yousef irrigation canal

4 +7 ;-j 2{/ I 1 \ Existing drains and canals

Railway

Towns

uENI / MAZAR APEA

27,000 PEDDANS

° 5 1 1 20 25

KILOMETERS

o 500

I ~~~~~~~~~~~~~~~MILES

SoUTH MENSIAT EL DAHAB I t PUMPING STATIONPUMPING STATION

SOUTH VNENSHA tr

EL DAH AB AREA I29,600 FEDDANS ~ t 15

a < INIYA

= .KABKA I

TONA PUMPING STATIf.4 PUMPING STA%TION

KABKArB AREA~~~I ~~~38, 000 PEDDANS

ISRAEL 7

A~El M;nam,.E] ~fT

iMro I L ' - CA11

ARAB REPUBLIC

OF EGYPT /

-! otcne

j S u D A N , Dairu.

rl~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r

IBRD -12114/ MAY 1976

HO'AN J(2qr0 cEDLANS

TaA R- 'EW A/1.AnAGS FEDDANS A-;HAr AAEA

000 DDF ABEA--EA

ZIAURE AR EA-

455- FED DANS J

X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~?A : R s-',

booo FEDDANS s .EEANSt CAPEAk APL tns /

ARAB REPUBLIC OF EGYPT MAZORA PUMPING 5OAPN

Upper Egypt Drainage Project IIBENI SUEF GOVERNORATE E IM.HAKAMA--ifEN B KVAET AE

Areas provided with tile drainage with government'sow eSOurces

Areas covered by Upper Egypt Drainage I, IDA Project

Area covered op Upper Egypt Draiinage II, IDA and Bank PrajeCt

* Pumping stalions corstructed by the government

* Pumping stations under Upper Egypt Drainage I, IDA Project . , ,-e/4 x /Existing open drains to be remodeled under Upper Egypt .Drainage I, IDA Project ,

… ____ New open drains to be constructed under Upper EgyptDrainage 1, IDA and Bank Project

Existing open drains to be remodeled under Ut p-|

Egypt Drairage 9, I DA ard Bank Project

__ Bahr Yousef irrigation canal

Existing drains ard canals / tn.

Railways E'INASIA AREAA30000 FEDDANiS

ZZ~ Towns Pallways ouCo FEDD>r 5 / ~~~~~~~ ~ ~~~~~~~~~~~~~~~0 2 4 19 IF 14 1c

SAKOLA PUMPING *tNN

Thdd B,.,k,Ae -d 11-fl..

IBRD 12280MAY 1976

RAHAWY NORTH AREA- 10,000 FEDDANS ~ -"

% ~ ~~ \<t' 0 ' /

RAHAWY SOUTH AREA --- 10,000 FEDDANS j"

UNITED ARAB REPUBLIC OF EGYPT

UPPER EGYPT DRAINAGE II PROJECTGIZA GOVERNORATE HELWAN

AREA COVERED BY UPPER EGYPT DRAINAGE 1[,IDA AND BANK PROJECT

EXISTING OPEN DRAINS TO BE REMODELLED UNDERUPPER EGYPT DRAINAGE ][ ,IDA AND BANK PROJECT

MAIN IRRIGATION CANALS

OTHER IRRIGATION CANALS

…_____ OTHER EXISTING DRAINS

-4----I RAILWAY

O 43 TOWNS 0 El-Minyo

O 5 10Miles

0 E Ip1S y J0 15

Kilometers

TE CYPRU 'S~YRIANSjE sCY t \ ~ARAB7 t g

,P tff , P LEBA MASSA NDA NORTH AREA 2 \ )I '

10,A00 FEDDANS -- g ' .

SADi* ARAB

R REPUBLIC OF E

.L ... . VASS0ii~,J Th b-dk~ ~pdo(5pSUDAN_ Wor,dBcrtdi S&flo-dt. // //

IBRD-12115MAY 1976

Birket Qaru()n ARAB REPUBLIC OF EGYPTBILHARZIA CONTROL

FAYOUM- PROGRAMTEXENSION BILHARZIA

~~ ~CONTROL'AREA"''-.J BILHARZIA CONTROL AREA

| / / _CU ACULTIVATED AREAS- ' / _ IRRIGATION CANALS

-- - / RIVERSBENI SUEF _ BARRAGE OR HEADWORKS

290 / ROADS

j , ----- 4--.- RAILWAYSGOVERNORATE BOUNDARIES

N BENI SUEF

0 20 40 60 80

KILOMETERS

0 10 20 30 40 50

i I MILES

/-IBRAHIMIA CANAL

BAHR YOUSEF CANAL_.

EL MINYA \EL MINA

280 280

2-AIRUT HEADWORKS

\4N t1 f~~~~~~Dairu~t-

CAIRO D --

F t > AREAX t .

MAP

\ _'_7 T BARRAGE

ASYUT -ARAB REPUBLIC ASYUT

OF EGYPT

The boundaries shown on this map do notASWAN; -270 <\ imply endorsement or acceptance by the 270

3P 32World Bank and its affiliates._ 2$ ~~~~~~~~~~310°% 3123