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FILE COPYReport No. 5051TtUN

Appraisal oflfigatior Rehabiîitation ProjectTunisiaDecember 10, 1974

Regional Projects DepartmentEurope, Middle East and North Africa Regional Office

Not for Public Use

Documnent of the International Bank for Reconstruction and DevelopmentInternational Development Association

This report was prepared for officiai use only by the Bank Croup. It may not be published,quoted or cited without Bank Croup authorization. The Bank Croup does not accept responsibilityfor the accuracy or completeness of the report.

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CURRENCY EQUIVALENTS

Currency Unit = Tunisian Dinar (D)US$1 = D 0.44D1 = US$2.30D 1 million a US$2.3 million

WEIGHTS AND MEASURES

Metric System British/US System

1 millimeter (mm) 0.04 inch (in)1 meter (m) 2 3.28 feet (ft)1 square meter (m ) 10.76 square feet (sq ft)1 cubic meter (mJ) =3- 1.31 cubic yards (eu yd)1 million cubic meters (mil ion m3 ) 810.70 acre feet (ac-ft)1 cubic meter per second (mi/sec) 35.35 cubic feet per second (cu ft/sec)1 liter per second (1/sec) = 0.04 cubic foot per second (cu ft/sec)1 kilometer (km) 0.62 mile (mi)1 square kilometer (km2 ) 0.39 square mile (sq mi)1 hectare (ha) = 2.47 acres (ac)1 kilogram (kg) 2.21 pounds (lb)1 metric ton (m ton) = 2,205 pounds (lb)

GLOSSARY OF ABBREVIATIONS

ABD - African Development BankBNT - National Bank of TunisiaCCN - Central Cooperative for Fruits and Vegetables "Nebhana"CCSPS - Central Cooperative for Seeds and Selected Plant MaterialsCLCM - Mutual Credit SocietyCOCEMO - Central Cooperative for Agricultural MechanizationCRGR - Research Center of Rural EngineeringDAFL - Directorate of Land Affairs and LegislationDEGTH - Directorate for Hydraulic Studies and Major WorksFOSDA - Special Fund for Agricultural DevelopmentGIAF - Trade Association for Citrus and FruitsGICA - Trade Association for Food ProcessingGIL - Trade Association for VegetablesINAT - National Institute for Agronomy in TunisiaINRAT - National Institute for Agricultural Research in TunisiaOMIVAN - Office for the Development of NebhanaOMVVM - Office for the Development of the Lower Medjerda ValleyOTD - Bureau of State Land ManagementPPI - Public Irrigation AreasSEM - Experimental Station for Vegetable CropsSFT - Thnisian Farms CompanySONEDE - National Company for the Exploitation and Distribution of

Drinking WaterSTEG - Tunisian Company for Electricity and Gas

e' STIL - Tunisian Company of Milk IndustriesUSAID - United States Agency for International Development

GOVERNMENT OF TUNISIAFISCAL YEAR

January 1 to December 31

1/ As of January 10, 1974.

TUNISIA

IRRIGATION REHABILITATION PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ................................ i-iii

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

II. COUNTRY BACKGROUND AND THE AGRICULTURE SECTOR .......... 1

A. Country Background ................................ 1B. The Agriculture Sector ............................ 2C. Previous Agriculture Projects ..................... 3

III. THE PROJECT AREA AND NATIONAL INSTITUTIONS .. ........... 4

A. Historic Development of Medjerda and Nebhana ...... 4B. The Area .......................................... 4C. Natural Resources ................................. 5D. Land Tenure ....................................... 6E. Land Use, Agricultural Production, and Yields ..... 7F. Marketing and Cooperatives ........................ 8G. Irrigation Development Institutions .... ........... 8H. Credit Sources .................... 9I. Agricultural Research, Training, and Extension .... 9

IV. THE PROJECT ............................................ 10

A. Objectives ........................................ 10B. Description ....... ................................ 10C. Status of Engineering .............. .. ............. 12D. Cost Estimates ...... ............. ................. 13E. Financing ....... ............... ................... 14F. Implementation Schedule ............. .. ............ 15G. Procurement ....... .............. .................. 15H. Disbursements ....... ............. ................. 16I. Environment and Health ............. .. ............. 17

V. PROJECT IMPLEMENTATION ................................. 17

A. Organization and Management ..... .................. 17B. Operation and Maintenance ..... .................... 20C. Safety of Dams .................................... 21D. Credit ..................................... 21E. Land Reform Activities ...... ...................... 22F. Recovery of Costs ................................. 23G. Accounts and Audit ................................ 24

TABLE OF CONTENTS (Continued)

VI. BENEFITS AND JUSTIFICATION .......... ................... 25

A. Production ......... . 25B. Markets ............. 27C. Prices .............. .................. ...... .. . 28D. Farm Income .. ..................................... 28E. Benefits and Beneficiaries ....................... 29

VII. AGREEMENTS REACHED AND RECOMMENDATIONS ................. 31

ANNEXES

1. Background Statistics on Tunisia2. Historic Review of Development and Bank Involvement in Medjerda

and Nebhana3. Climatic Data4. Available Water Resources and Irrigation Development in Medjerda

and Nebhana5. Legal Aspects and Present Situation of Land Reform6. Medjerda Subproject Area7. Agricultural Development in Medjerda and Nebhana8. Marketing9. Agricultural Credit

10. Detailed Project Description11. Equipment to be Procured12. Consultants13. Medjerda and Nebhana Water Requirements14. Cost Estimates15. Schedule of Expenditures16. Estimated Schedule of Disbursements17. Medjerda and Nebhana Operation and Maintenance Costs18. Recovery of Project Investment Costs19. Medjerda and Nebhana Farm Income and Budgets20. Economic Analysis

CHARTS

Chart 8651 (3R) - Relationship between Project Authorities and OtherGovernment Organizations

Chart 8649 (2R) - Organization of OMVVMChart 8790 (R) - Organization of OMIVANChart 8876 (R) - Implementation Schedule

MAPS

IBRD 10986 - MedjerdaIBRD 10987 - Nebhana

TUNISIA


Summary and Conclusions

i. Rainfed agriculture predominates in Tunisia. Three million of ninemillion hectares of agricultural land are cultivated but only 110,000 ha arepresently equipped for irrigation. The low annual rainfall, the majority ofwhich falls from September to April, precludes much increase in productionexcept by expansion of irrigated lands. A study of the Northern Tunisia'swater resources (including the water resources of the Medjerda River) hasbeen carried out and a Water Master Plan has been prepared under a Bank tech-nical assistance agreement.

ii. The main irrigation areas are in the lower and central MedjerdaRiver Valley, the Nebhana area, in Cap Bon and the oases of southern Tunisia.Construction of public irrigation facilities began in 1959 and continues.About half of the 20,000 ha area in the Medjerda valley and 1,800 of 5,000 hain the Nebhana region are irrigated. The development has been financed throughbilateral aid of France and the United States, the Kuwait Fund for Arab Eco-nomic Development, and the African Development Bank.

iii. Land tenure, lack of maintenance of the irrigation and drainagesystems, inadequate extension, credit and marketing support services are themain reasons for the underutilization of the developments in the Medjerdavalley and in the Nebhana area. The Governnent has requested Bank assistancein financing a rehabilitation and development project.

iv. The project's objectives, which are in line with the objectives ofthe 1973-76 Plan, are to:

(a) use the existing irrigation infrastructure more fully andmore effectively;

(b) raise incomes of small farmers by intensifying and diversifyingthe cropping patterns;

(c) increase security of tenure and accessibility to adequateagricultural credit;

(d) provide needed public services together with assistance tothe project authorities; and

(e) improve housing conditions for the lowest income farmers inthe Medjerda.

v. In Medjerda and Nebhana, the project comprises rehabilitation ofexisting irrigation, drainage, and road networks; construction of rural infra-structure; on-farm development; and strengthening of management, extension, and

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marketing services and employnent of consultants. It also includes assistancein land reform in Nebhana through consolidation and establishment of landtitles as well as preparation of detailed engineering studies for future on-farm development.

vi. The project cost is estimated at about US$24 million, includingphysical and price contingencies. The proposed Bank loan will finance theestimated foreign exchange component of US$12.2 million equivalent (51%).International competitive bidding will apply to equipment (US$3.2 million)except for a certain type of hydraulic equipment (US$0.6 million), which isreserved for special procurement. Furthermore, international competitivebidding would not be appropriate for civil works, roads, buildings, electricand water supply facilities because they are small, widely scattered andspread over a long period. These works will be tendered locally or carriedout by force account. Contracts for livestock (US$1.0 million) will be awardedafter receiving at least three quotations from suppliers. Tender documentswill be prepared by the two subproject authorities responsible to the Ministryof Agriculture, the Office for the Development of the Lower Medjerda Valley(OMVVM) and the Office for the Development of Nebhana (OMIVAN).

vii. Project implementation, including planning, design, contracting, andsupervision, will be carried out by OMVVM and OMIVAN. OMVVM has been respon-sible for development work in the Medjerda Valley since 1958; OMIVAN is asmall organization, established in 1973. Both authorities will be responsiblefor coordinating all project activities carried out by their own staff, otherGovernment agencies, private contractors, or consultants. The latter willprovide technical assistance and undertake studies.

viii. Particular emphasis will be placed on improving agricultural exten-sion in Medjerda and Nebhana. The OMVVM extension program will be strength-ened by technical assistance from consultants and by rehabilitation of RuralCenters, while the OMIVAN program will be strengthened through a seven-yearprogram of technical assistance financed by the Belgian Government whichcommenced in 1973.

ix. Both subprojects will be served by long-, medium- and short-termcredit. Land reform, under existing legislation, will be completed in theproject area during the construction period.

x. Implementation of both subprojects will take seven years. Fullagricultural development is expected six years following irrigation rehabil-itation.

xi. At full development in 1987, the net value of annual incrementalproduction to the economy will be about US$5.48 million annually. The EconomicRate of Return, with all previous expenditures treated as sunk costs, for thewhole project is 28Z, for Medjerda 30%, and for Nebhana 24%. Even under ad-verse assumptions of costs and benefits, the Rate of Return for the combinedproject is not likely to be less than 19%. However, if the sunk costs areincluded in the analysis, the aggregate return for the project becomes nega-tive.

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xii. The project will greatly reduce the disparity in income and standardsof living between small farmers on the one hand and large farmers in Medierdaand the urban population on the other. As a result of the project, about1,800 farmers in Medjerda will have a net income rise of 142% to about D 2,400(US$5,600), and about 2,000 farmers in Nebhana will have an increase in netfarm income of 153% to about D 415 (US$955) compared to D 1,006 (US$2,315)and D 164 (US$380), respectively, without the project. Moreover, all farmerswill obtain titles to their land. The demand for hired labor will double atfull development, while self-employment of farm families would be increasedby about 36% in Medjerda and 53% in Nebhana. Full time employment for about3,000 persons is expected to result.

xiii. Agreement having been reached on the principal issues, subject tothe conditions of effectiveness and disbursement, the project is suitable fora Bank loan of US$12.2 million to the Government of Tunisia. In view of thelengthy development period, full development not being foreseen until 1987,an appropriate term for the loan is 25 years including 7 1/2 years of grace.

TUNISIA


I. INTRODUCTION

1.01 The Government of Tunisia has requested a Bank loan to help financesubprojects in the Lower Medjerda Valley (Medjerda) and East-Central Tunisia(Nebhana) comprising: rehabilitation of the existing irrigation, drainage,and road networks; construction of rural infrastructure; on-farm development;and strengthening of management, extension, marketing services and employmentof consultants. The project also includes assistance in land reform in Nebhanathrough land consolidation and establishment of farm titles as well as in thepreparation of detailed engineering designs and feasibility studies for futureon-farm development. In addition, the project will finance a land reformspecialist to strengthen the Ministry of Agriculture's Directorate of LandAffairs and Legislation (DAFL) in its nationwide operations.

1.02 Originally, the Government requested complete project developmentfor intensified irrigated farming of about 20,000 ha in Medjerda and 5,000 hain Nebhana. Because of land reform considerations and inadequate preparationof parts of the project, the area included for full development has beenreduced to about 10,300 ha in Medjerda and to about 2,000 ha in Nebhana (thezones where intensive irrigation development is feasible in the immediatefuture), while rehabilitation and ancillary works will be carried out for theentire areas.

1.03 This report is based on: feasibility studies prepared by the FAO/IBRD Cooperative Programme in cooperation with the Government of Tunisia;detailed studies by the Office for the Development of the Lower MedjerdaValley (OMVVM), the Office for the Development of Nebhana (OMIVAN), and otherGoverument agencies and the findings of an appraisal mission consisting ofMessrs. Paul Peperzak, J. P. Dumoulin, H. J. van Wersch and A. E. Maffei(Bank) and V. Gioia and G. Thal Larsen (Consultants). Mrs. P. Valad assistedin the preparation of this report.

II. COUNTRY BACKGROUND AND THE AGRICULTURE SECTOR

A. Country Background

2.01 Tunisia, with an area of some 164,000 km 2, is the smallest andpoorest of the four North African Maghreb countries. The country can beconveniently divided into three parts: Northern Tunisia (20% of land area);Central Tunisia (20%); and Southern Tunisia (60%). The population (5.4 mil-lion in 1973) concentrated in Northern Tunisia and along the eastern coast-line is growing at about 2.6% annually. Per capita income averages aboutUS$235. Annex 1 presents additional statistics.

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B. The Agriculture Sector

2.02 Only Northern Tunisia, where average rainfall exceeds 350 mm, growsa wide range of rainfed crops, dominated by wheat and barley. Yields oftenare depressed, when fluctuations in the amount and seasonal distribution ofrainfall result in drought or floods. Central Tunisia agriculture, with aver-age rainfall of 200-350 mm, is characterized by rainfed tree crops (predominant-ly olives and almonds), marginal cereal production, and sheep grazing. South-ern Tunisia, where rainfall averages below 200 mm, has extensive grazing withdate and vegetable crops cultivated in the oases.

2.03 Some 90,000 km2 (9 million ha), or 55% of land area, is suitablefor agriculture, including 45,000 km2 (4.5 million ha) of cultivable land;the remainder is range land suitable for extensive sheep grazing and low-yielding forest. The cropped area is about 3.1 million ha including 1.3 mil-lion ha under perennial crops, but only 3.5% is equipped for irrigation. Ir-rigation is mostly confined to the Lower Medjerda Valley, the Nebhana areanear Sousse, Cap Bon, and the oases of Southern Tunisia. Principal irri-gated crops are tomatoes, peppers, potatoes, melons, and citrus. Off-seasonvegetables are grown in small quantities along the coast near Sousse andZarzis and on the island of Jerba. Areas in citrus and in vegetables increasedconsiderably during the 1960's.

2.04 The State owns 815,000 ha of agricultural land while private indi-viduals own as much as 4.5 million ha. Legislation exists for land redistri-bution and consolidation in public irrigation areas, transfer of public landto private farmers, and distribution of part of the collectively-owned landto individuals.

2.05 The agriculture sector is less dominant in Tunisia than in otherMediterranean countries, mainly because the natural resource base for agri-culture is low. Agriculture contributes about 18% of GDP, employs a littleover 50% of the labor force, and provides some 35% of total exports (prin-cipally olive oil, citru:^ and other fruits, and vegetables); however, exportsrepresent only a fraction cf total farm output. Agricultural imports (mainlycereals, edible oals, dairy prod1cts, livestock, and sugar) have increasedsharply over the past decade in contrast to agricultural exports, representingabout 22% of total imports. The net trade balance was positive until 1967,but since then has been negative and even the exceptional olive crop and goodcereal crop in 1971 together only balanced exports and imports.

2.06 The Government's Fourth Plan (1973-76) aims at an annual increasein agricultural growth of 6.2% from the level attained during the Third Plan(1969-72). Investment policy under the Fourth Plan is to emphasize directlyproductive investments including rehabilitation of existing irrigation infra-structure, encourage a higher level of investments by the private sector, anddirect more resources to production of livestock, fish, fruits, and vegetables.Credit policy under the Plan is to facilitate access and increase investmentand seasonal credit to small farmers. Extension services are to be strength-ened to reach more medium and small farms. The Plan also contains specific

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proposals for increasing security of land tenure and proposes to enforce exist-ing legislation for sequestration of underutilized land. An ambitious time-table has been drawn up for completing land reform in public irrigation areas.Price regulations are in effect for a limited number of commodities (includingcereals, edible oils, and sugar) and retail mark-up on all foods is Government-controlled.

2.07 Many factors constrain intensive agricultural development. Insuffi-cient rainfall causes irrigation to play an important role in diversifying thebasically extensive rainfed agriculture. The potentially irrigable area islimited to 200,000 ha, mostly in Northern Tunisia where rainfall is aboveaverage and where incremental benefits from irrigation development are lowest.The present irrigable area, that is, with water available at the farm boundary,covers 110,000 ha, of which 45,000 ha are in public irrigation areas. Recently,irrigated crops (virtually only fruits and vegetables), produced on about70,000 ha of irrigated land, represented 20% of the total value of farm pro-duction. Existing irrigation facilities are substantially underutilized,especially in public irrigation areas where only about half the irrigable landis effectively irrigated. A study of Northern Tunisia's water resources (in-cluding the water resources of the Medjerda river) has been carried out anda Water Master Plan has been prepared under a Bank technical assistance agree-ment, one of the objectives being to expanding irrigated land. Other con-straints are inadequacies in the agricultural extension services, credit sys-tem, and marketing infrastructure.

C. Previous Agriculture Projects

2.08 The Bank/IDA financed the first Tunisian agriculture project, theCooperative Farm Project, in 1967 (Loan 484-TUN and Credit 99-TUN). Follow-ing major changes in Tunisian agricultural policy in 1969, the original proj-ect was substantially revised and was completed in 1973. Since 1971, theBank/IDA has been financing the Agricultural Credit Project (Loan 779-TUN andCredit 263-TUN). A major difficulty experienced by this project is competi-tion between Bank/IDA funds and Government subsidized funds; this problem hasnot yet been resolved. Execution of the 1971 Fisheries Project (Credit 270-TUN),financed by the Association, is proceeding satisfactorily.

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III. THE PROJECT AREA AND NATIONAL INSTITUTIONS

A. Historie Development of Medjerda and Nebhana

General

3.01 Medjerda and Nebhana are the oldest public irrigation projects inTunisia (Annex 2). The French and US Governments financed feasibility studiesfor both in the 1950's. Construction of major works for Medjerda was completedin 1960 and those for Nebhana in 1970; the distribution network in both proj-ects is, however, still under construction.

Medjerda Subproject

3.02 Medjerda has about 90,000 ha of potentially cultivable land, of whichabout 40,000 ha could be irrigated. It is the best equipped area in the coun-try for modern agricultural development, including dry farming on a ratherlarge scale. The 10-year "Minimum Plan" for Medjerda, initiated in 1962, aimedat developing about 32,800 ha area for irrigated farming; so far, 22,000 hahas been equipped with irrigation and drainage facilities. The Kuwait Fund forArab Economic Development, African Development Bank (ADB), and United StatesAgency for International Development (USAID) have each financed a part of thisdevelopment.

3.03 The subproject is part of the "Minimum Plan" for Medjerda and in-cludes 29,320 ha gross (20,066 ha net), of which about 75% (net) is fullyequipped with irrigation and drainage facilities; the balance lacks secondaryand tertiary distribution works. The existing facilities are badly maintainedwhich has led to breakdown of turnouts, stilling basins, culverts, drains androads. Lack of security of farm titles and fragmentation of holdings haveresulted in significant further underutilization of the irrigation system.At present, only about 10,550 ha (net) are irrigated.

Nebhana Subproject

3.04 The Nebhana subproject covers about 5,000 ha net. The incompleteon-farm distribution network irrigaces about 1,800 ha, mainly under vegetablecultivation. The layout of the existing tertiary system, which was designedto serve State production cooperatives since abandoned. It does not fit theexisting fragmented small farm holdings and additional on-farm development aswell as rehabilitation is required along with land consolidation.

B. The Area

Medjerda

3.05 This subproject is in the Medjerda River basin, the country's mainwater course (Map IBRD 10986) with ground slopes of only 1:1,000 from Tebourba,

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at the head of the lower valley, to the sea. The area is crossed by hightension transmission lines serving local centers but not individual farms, andby two main water supply pipelines for Tunis. The national road network servingthe area is adequate and provides good access to Tunis. Secondary and feederroads are in poor condition and require resurfacing or complete reconstruction.The main railway passes through the area, but trucks transport virtually allagricultural commodities. Telephone service is available throughout the area.

Nebhana

3.06 This subproject is in East-Central Tunisia (Map IBRD 10987). Thesections of the subproject area are scattered and the topography varies greatly.In some sections, primarily in a narrow strip of land along the sea, topographyis either flat or gently undulating. Sections farther inland have slopesexceeding 5%. Electricity and piped water are available along the coast butnot inland. National highways link the area with the capital and regionalcenters; secondary roads are adequate, except in one irrigation section. Flashfloods in winter may disrupt traffic for several days.

C. Natural Resources

Medjerda

3.07 Average annual rainfall is about 450 mm (Annex 3), more than halffalls during November-February, but winter crops need supplemental irrigationin spring. Practically no rain falls from May through August, making irriga-tion essential for growing summer vegetables, forage crops, and fruits. Wintertemperatures fall below freezing in inland areas, limiting production of citrusand off-season vegetables. Strong cold winds during winter and dry hot winds

in summer affect crops but appreciable damage has been infrequent. Valleysoils are mostly alluvial, with adequate natural drainage except in the lowerparts. Toward the hills, soils grade into brown and reddish calcareous types.Detailed soil surveys of the entire subproject area have been carried out on1:5,000 scale and show that USBR Class I and II soils cover about half of thearea, the balance being Classes III and IV.

3.08 Water Resources and Irri&ation Infrastructure. The flow of theMedjerda River varies between 1,500 ms/sec in winter and 1 m3/sec in summer.Average annual discharge is about 1 billion m3. Existing dams can providea year-round base flow of 15 m3/sec at the head of the main conveyor canalsystem (El Aroussia Dam). With an estimated average water requirement of 0.4i/sec/ha, the existing water supply and main distribution systems are designedto irrigate more than 35,000 ha. Water quality is good in winter, with saltcontent of 1-1.5 gram/l, but is poorer in summer as salt content increases to3-3.5 gram/l. Details are in Annex 4.

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3.09 Drainage. The Medjerda River's high peak flows cause periodicwater logging in the low-lying parts of the subproject area. In the heaviersoils this creates a surface drainage problem requiring rehabilitation of thedrainage network.

Nebhana

3.10 This area has two different climatic zones. The Maritime Zone--suitable for off-season vegetables, early apricots, and citrus--encompassesten sections between Chott Mariem and Mahdia (Annex 3). The Semi-ContinentalZone, cold in winter and hot in summer--suitable for stone fruits, citrus,and late summer crops--encompasseS Sbikha, Fadhloun, and Enfida. Averageannual rainfall in the Maritime Zone is 325 mm, with no rain from June throughAugust, thus necessitating full irrigation for all summer crops. Water deficitsoccur in all other months, except January, requiring irrigation for all off-season vegetable and fruit crops. Soils in the area have been surveyed indetail and are of colluvial origin with, generally, light to medium textures.Minor limitations related to texture, type of sub-stratum, depth, and topo-graphy prevent the soils from being rated in USBR Class I; all belong toeither Class II or III. No problems of drainage or salinity exist, and mostof the area is eminently suitable for vegetable and fruit crops.

3,11 Water Resources and Irrigation Infrastructure. The Nebhana Riverwith good quality water has been harnessed by means of the Sidi Messaoud dam(storage capacity 86 million m3) and the Bel Assoud Diversion dam, completedin 1966. In addition, groundwater has been tapped in the Sbikha and BledSisseb aquifers. A 120-km pipeline conveys water to irrigate about 5,000 ha.The main irrigation network was completed in 1970, but only about 1,800 haare presently irrigated. Some water is used for industrial, urban, and tour-ism developments, and intersector competition for water is growing around thecities of Sousse and Monastir. Details are in Annex 4.

D. Land Tenure

3.12 Implementation of the existing agrarian reform legislation is un-satisfactory: enforcement of provisions on obligations, payments, and limita-tion of farm size is poor, and land consolidation, registration, and titlingare proceeding slowly. The Medjerda Agrarian Reform Law of 1958, as amendedin 1960, covers: the contribution that owners of more than 2 ha of irrigableland have to make to public investments; the size of holdings, with a 50 haceiling; land consolidation; obligations on owners to irrigate at leasttwo-thirds of their irrigable land. A 1970 law and decree regulate the dis-tribution of State land to individuals. In Nebhana, legal status of holdingsis complicated by joint ownership by co-heirs and fragmentation of holdings;the Agrarian Reform of 1963, as amended in 1971, applies.

3.13 Details on land tenure in both subproject areas are given in Annex 5and are summarized below:

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Medjerda Nebhana Total------------- ha ---------------

State Land 3,260 200 3,460Settlers Under Land Reform 7,531 - 7,531Privately Owned Land 9,275 4,800 14,075

Total 20,066 5,000 25,066

In Medjerda, the State owns 16 percent of the area, 1,230 settlers 38% and1,397 individuals own the remainder. Settlers' farms vary in size from 3-12ha with 76% in the 5-10 ha range. 86% of individuals own 36 percent of theprivately-held area in units of less than 10 ha (average farm size of 2.8 ha),while 2% own 32% of the land in more than 30 ha units and the remainder is infarms of 10-30 ha. In Nebhana, the area was originally developed for produc-tion cooperatives. When this failed, the land reverted to private ownership.Farm sizes vary from 0.2-0.8 ha along the coast and from 1.3-3.3 inland. Inboth subprojects, joint ownership is common, while some tenancy and share-cropping occurs.

E. Land Use, Agricultural Production, and Yields

Medjerda

3.14 About 17,900 ha (89%) of the project area are under some form ofcultivation, of which 15,482 ha are fully equipped with irrigation facilities.During the last few years, the cropping pattern has shifted towards vegetableand forage crops at the expense of cereals. At present about 34% of thecropped area is under irrigated vegetables, 26% under fruit, 22% under forage,and 18% under dry land grains. Farmers do not follow an agronomically appro-priate cropping pattern; most alternate cereals or forage with irrigatedvegetables (mostly artichokes, tomatoes, and cucurbits) in two-to four-yearrotations. Farmers have used purchased inputs in modest quantities, but dueto recent expansion of short-term credit in kind, fertilizer use has beenincreasing. Yields are generally low because farmers have limited knowledgeof irrigated cropping and due to the deficient supply and poor distributionof irrigation water. The area has about 4,425 selected cattle, of which3,100 are owned by about 600 private farmers and 1,325 by four well-run Statefarms. Livestock are in satisfactory condition but inadequate and unbalancedfeeding on the private farms results in below average milk production. Detailsare in Annex 6 and 7.

Nebhana

3.15 Only 1,800 ha (36%) of the land area equipped for irrigation areactually being irrigated. Lack of land consolidation and the layout of the

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original irrigation distribution systems are the main causes for the under-utilization of facilities. In the coastal area 1,400 ha are irrigated for vege-table crops and 400 ha for fruit trees, mostly on State farms in the Semi-Continental Zone. Olive trees (grown for oil under rainfed conditions) occupyabout 10% of the irrigable area, obstructing development of new fruit treeplantations, especially in the higher parts of the coastal irrigation sections.Main irrigated vegetable crops are cucurbits, peppers, potatoes, and tomatoes.The coastal area is suitable for off-season vegetable production, but mostfarmers grow seasonal vegetables because of their lower production costs andeasier cultivation. In some sections (Chott Mariem and Teboulba) skilledfarmers have, however, shifted to growing early and late varieties. Detailsare in Annex 7.

F. Marketing and Cooperatives

Mledjerda

3.16 Except for artichokes, which are exported, vegetables and fruits(70% of total) are mainly produced for the Tunis wholesale market; increasingamounts of tomatoes are, however, being sold for processing to private andcooperative factories in the area. Marketing is carried out by the privatesector. Milk is sold either to the Tunisian Company of Milk-Industries (STIL)or to individual vendors.

Nebhana

3.17 Seasonal vegetable production is mainly for the wholesale marketsof Sousse and Tunis. Of the early season vegetable production (tomatoes andpeppers), 80% is sold in Tunis and 20% in Sousse and Sfax. Export marketingfrom the project area is limited. The Cooperative of Teboulba markets off-season produce from the Teboulba and Vieux Teboulba sections and vicinity.The Cooperative owns and provides field boxes, transport, and storage facili-ties. It is efficient and has a good and consistent record of distributedearnings to members. The Central Cooperative for Fruits and Vegetables"Nebhana" (CCN), created in June 1971, is intended to perform all marketingfunctions required by its members. At present, CCN rents centers for producecollection and input distribution at Sbikha, Chott Mariem, Sahline, Moknine,and Bekalta. So far, its activities have been rather restricted. The privatetrade sector handles all other marketing functions for seasonal crops, withthe inherent disadvantage to small farmers. Details are in Annex 8.

G. Irrigation Development Institutions

3.18 The Ministry of Agriculture is responsible for irrigation developmentand its Directorate for Hydraulic Studies and Major Works (DEGTH) is entrustedwith the maintenance, operation, supervision, and safety of dams and majorhydraulic works. At the project level, special offices or semi-autonomous

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public agencies, such as OMVVM and OMIVAN, operate under the Ministry ofAgriculture's nominal authority (See Charts 8651 (3R), 8649 (2R) and 8970R)and are responsible for the management and maintenance of the network withinthe irrigation sections.

H. Credit Sources

General

3.19 Credit sources are OWVVM and OMIVAN, Mutual Credit Societies (CLOI),National Bank of Tunisia (BNT), commercial banks, and local storekeepers andmerchants. OMVVM and OMIVAN give short-term credit-in-kind to irrigationfarmers with 6 ha or less for material inputs and tractor services based ona 10% downpayment with the balance due, without interest, at harvest time.The Government budget provides OMVVM and OMIVAN with funds. In 1973-74 amajor effort was made to reach virtually all qualifying farmers. Repaymentperformance has been poor. CLCM was designed to provide short-term credit tosmall farmers, but the OMVVM and OMIVAN credit-in-kind programs have takenover its role. BNT, the only banking institution specializing in agriculturalcredit, makes short-, medium-, and long-term loans. 1/ Short-term loans areavailable to credit-worthy, large farmers, on the same terms as those of com-mercial banks. Medium- and long-term loans are mostly from Government funds,particularly the Special Fund for Agricultural Development (FOSDA). In 1973,the Government took steps to improve small farmers' access to this type ofcredit and assigned to OMVVM and OMIVAN the role of assisting farmers in pre-paring loan applications. Annex 9 gives details on conditions and terms ofFOSDA credits. Local storekeepers and merchants provide consumption creditto farmers through interest-free loans to maintain or promote stable businessrelationships.

T. Agricultural Research Training and Extension

3.20 Both subprojects are adequately served by research stations and in-stitutes situated in or near the project areas covering the range of cropsto be grown under the project and livestock. Agricultural training is alsoadequate for both professional and technician levels and the average annualoutput from these institutions is more than adequate to meet the expanding needsof the project. The existing extension services in both subprojects is weakand grossly understaffed. In Nebhana, Belgian bilateral technical assistanceis presently providing extension assistance which is expected to continue until1980. Details are in Annex 7.

1/ BNT is the borrower in the 1971 Bank/IDA financed Agricultural CreditProject (Loan 779-TUN and Credit 263-TUN).

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IV. THE PROJECT

A. Objectives

4.01 For Medjerda and Nebhana, the project's objectives, which are inline with the objectives of the Fourth Plan (1973-76), are to:

(a) close the considerable gap between the low utilization levelof existing public investments in irrigation and the produc-tive potential of these investments;

(b) raise incomes of about 3,830 small farmers by intensifyingand diversifying the cropping patterns;

(c) increase the security of land tenure;

(d) increase the accessibility and volume of agricultural creditto small farmers;

(e) provide needed public services and improve housing conditionsfor the lowest income farmers in Medjerda; and

(f) strengthen agricultural institutions.

B. Description

4.02 To achieve the objectives, two subprojects have been prepared; onecovers 20 irrigation sections of Medjerda scattered within a triangular areabounded by Bordj Toum, Utique, and Soukra (20,066 ha) and another covers 13irrigation sections of Nebhana located between the Sidi Messaoud dam, ChottMariem, and Mahdia (5,000 ha) (Maps IBRD 10986 and 10987). Existing irriga-tion, drainage, and road networks will be rehabilitated in the entire Medjerdaand Nebhana areas and new irrigation and drainage works will be constructedin Nebhana only. Full development will be confined to about 10,300 ha inMedjerda and to the Akouda, Bekalta, Chott Mariem, Moknine, Sahline, Teboulba,and Vieux Teboulba sections of Nebhana (about 2,000 ha) where immediate inten-sive development of irrigated agriculture is feasible.

4.03 The project works are described in Annex 10 and the equipment andvehicle are listed in Annex 11. The project elements are summarized asfollows:

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Medjerda

(a) rehabilitation of the existing irrigation, drainage, androad networks over a net area of about 20,000 ha;

(b) construction of 370 farmhouses, installation of facilitiesto provide 614 existing farms with electricity and about678 existing farms with drinking water, rehabilitation andrepair of 7 existing rural centers and construction of 2new centers and of housing for 30 extension agents;

(c) establishment of windbreaks for crop production over about5,000 ha;

(d) purchase and utilization of equipment and machinery foroperation and maintenance of the irrigation, drainage, androad networks over about 20,000 ha;

(e) strengthening the project authority (OMVVM) through provi-sion of specialists, fellowships and vehicles;

(f) on-farm development on about 1,230 settler farms and 600small private farms (together about 10,300 ha), includingestablishment of fruit orchards over 850 km, provision of900 selected dairy cattle, stables, short-term credit forcrop production inputs, and farm machinery services; and

(g) assistance to OMVVM by consultants in preparing final de-signs and tender documents for works financed under thesubproject.

Nebhana

(a) assistance in land reform through consolidation and establish-ment of farm titles for about 3,800 small private farmers withholdings totalling about 5,000 ha and through the provision ofsupplementary consultant services;

(b) rehabilitation of existing irrigation, drainage, and road net-works over about 5,000 ha;

(c) construction of irrigation and drainage works over about2,000 ha;

(d) establishment of windbreaks over about 1,500 ha;

(e) purchase and utilization of equipment and machinery foroperation and maintenance of the irrigation, drainage, androad networks over about 5,000 ha and for additional landdevelopment work;

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(f) on-farm development on about 2,000 ha, including theconstruction of stilling and storage basins, establish-ment of fruit orchards over about 300 ha, provision ofsprinkler equipment for about 400 ha, and short-terzcredit for crop production inputs;

(g) improving marketing facilities through provision ofcredit for field boxes, vehicles, buildings, and equip-enrt;

(h) strengthening the project authority (OMIVAN) through provi-sion of specialists, fellowships, and vehicles; and

(i) assistance to OMIVAN by consultants in preparing engineeringdesigns and tender documents for works financed under the s'u,-project and feasibility studies for development of irriga-edagriculture over 3,000 ha not included in the subproject.

C. Status of Engineering

Medjerda

4.04 Complete feasibility studies have been executed and adequate dataare available on soils, water resources, and other agricultural aspects.Detailed engineering studies for rehabilitation of the irrigation, drainage,and road networks as well as final designs and preparation of tender docu-ments will be undertaken by consultants. Final engineering designe and costestimates for provision of electricity and water will, it is expected, be pre-pared by the Tunisian Company for Electricity and Gas (STEG) and the NationalCompany for the Exploitation and Distribution of Drinking Water (SONEDE), whichare capable of doing this work. Support to OMVVM for the final design, cori-struction, and rehabilitation of roads will be given by the Ministrv of Pub-lic Works. Design and execution of the project will be by OMVVM's own staff,which has the necessary capability. Rehabilitation or replacement of spe-cialized hydraulic equipment will be provided by Neyrpic S.A. (France), thedesigner and manufacturer. OMVVM has agreed that it will employ consultants,acceptable to the Bank, for detailed engineering studies of prciect works.

Nebhana

4.05 For about 3,000 ha of the Nebhana area, the status of project prep-aration is far less advanced than that in Medjerda. Although a number ofsoil surveys were carried out between 1957 and 1965, most sections need moredetailed and better land classification for irrigation development. Further-more, feasibility studies and detailed engineering will have to be preparedfor the six sections excluded from full project development. Water demanciand supply projections must be revised in the light of intersector competî-tion, and consideration given to reusing treated sewage water from Soussefor irrigation. On the other hand, for the about 2,000 ha recommended forfull development under the project, the necessary basic data are available.Considering the complexity of efficient irrigation development in some

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sections of the subproject area and the limited capability of OMIVAN's staff,consultants acceptable to the Bank, will have to be employed, ta prepare thefeasibility study. Cconsultants will also prepare tender documents for therehabilitation and new works to be financed under the Bank project. OMLVANhas agreed to the employment of consultants for these tasks an- draft termsof reference are in Annex 12. The Governmient has undertaken that in theallocation of the Nebhana water resources adequate amounts will be madeavailable for irrigation of about 2,000 ha to be fully developed under theproject. The estimated water requirements with the project are given inAnnex 13.

D. Cost Estimates

4.06 The estimated project cost is US$23.83 million, including local taxesas well as contingencies. Physical contingencies are 15% for civil works, 10%for studies and technical assistance and 5% for equipment. Price contingenciesadopted are (i) for civil works (domestic contractors) 8% in 1974 and 1975,5% in 1976 and 1977, and 4% in 1978 through 1981; and (ii) for imported equip-ment 14% in 1974, 11% in 1975, and 7.5% in 1976-1981. The foreign exchangecomponent is US$12.2 million or 51%. Cost estimates for civil works werebased on unit rates obtained in recent contracts and force account workfor similar works contracted by the Government, OMVVM and OMIVAN, as wellas on those for irrigation development financed by the Kuwait Fund in otherareas of Medjerda. Estimates for equipment, machinery, and vehicles werebased on tenders obtained in Tunisia and prevailing international prices.Cost estimates for buildings, rural electricity and water supply were basedon costs of local contracts and local bids. Since the original cost esti-mates were based on mid-1973 prices for Medjerda and on early 1973 pricesfor Nebhana, they were adjusted to a January 1974 base level. Price con-tingencies adopted for the construction period take into account the effectsof recent increases in petroleum prices. Overall contingencies amount to50.2Z of base costs and include 9.1% for physical contingencies and 37.7%for price contingencies on base costs plus physical contingencies.

4.07 Detailed cost estimates are in Annex 14 and are summarized below:

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PROJECT '33T

D th.3sard 3 o2eand S Foreign

Project Element Local Forei:zn o;e Local For.ign T'ocag

I Medjerda

A. Rehabilitation, IrrSgation, Draicage, Roads 691 716 1,407 1,590 1,646 3,236 51

B. On-ftar Development 1,007 820 i __ 317 1.817 4,204 45

C. Bui1d1nga 757 435 1,192 1,741 1,00C 2,741 3cD. Operetion and Maintenance Equipcent 42 237 279 96 546 6142 _r

B. Consultants, Studiea, Fellovahips 6 240 3C9 159 551 710 71J

Sultotal 2,5676 2371 5,0143 5,903 5,30 iI33 49

F. contingency Allowaces1. Phydical ( 9.6%) 246 23e 412 566 544 1,109

2. Price (36.2%) 1 C16 976 1 2. 2245 4 582Subtotel1 2,90 ~3e 2 ,t

Total Subproject C.st 7.9 7 1a9 17,225 49

II Nebhans

A. Rehabilitation, Irrigatio., Drainage, Roada 174 232 4cé 400 534 934 57

B. On-aja Derelopient 343 230 573 790 529 1,319 47

C. Marketing 83 1o0 191 190 249 439 57D. Operation and Mainternace Equipcent 25 143 160 58 328 386 P5E. Consultants, Studios, Land Refont, Fellowasipa 176 366 542 404 843 1 247 618

Subtotal ,B O ,727 tT2 57

F. -ootingency Allovaaces1. Phymical ( 7.7%) 62 83 145 143 lgC 333

2. Frice (41.7% 6 482 845 1.36 1 109 1.944

Subtotal 4 2-e5 590 979 2,2

Total S obproject Cost 2 Itt7- 2 70 1 57

Total ProJect Cost 5.154 5.305 10,359 11.627 12,200 23,827 51

E. Financing

4.08 Of the total project cost of US$23.83 million, the foreign exchangecomponent of US$12.2 million will be financed by the Bank loan. The loan willbe made to the Government of Tunisia for a 25-year term, including 7-1/2 yearsof grace, on the usual terms. The Government will allocate the proceeds ofthe loan to OMVVM and OMIVAN through the respective annual budgets of theseagencies. BNT will be a sub-borrower of that part of the loan which is ear-marked for credit (D 924,000 or US$2,125,000). The Government will financethe local currency costs which, in the case of OMVVM and OMIVAN, will be chan-neled through the annual budgets. BNT will obtain the funds required for theproject's credit operations under terms and conditions to be worked out betweenthe Government and BNT and to be agreed on by the Bank prior to February 1,1976. This agreement is to be reached in the framework of the national agri-cultural credit review currently being carried out by the Government. In theinterim, the Government will ensure full funding of the credit component. TheBank has agreed to the use, under tlhis project, of local currency funds in theCentral Bank remaining from the Cooperative Farms Project. The Government hasagreed that OMVVM and OIIVAN will be provided with adequate budgetary alloca-tions and that BNT will receive adequate resources to meet the local currencycost of the project. The project's financing plan is as follows:

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MI.listry of 2OaMf o0ivN BUT Agriculture Total

D M S S D US$ D IID SS tS D US* s-------- _---------------------________ - uillioi… --------------- …-- --------------------

Bank Loan 1.85 4.26 0.73 1.69 0.92 2.12 0.02 0.04 1.78 4.09 5.30 12.20Goverent Resourcea 1.I43 3.29 0.40 0.93 1.53 3.52 -- 0.01 1.69 3.88 5.06 11.63

Total Project Cost 3.28 75 1.13 2.61 2. 4 $ 0.02 0.05 3 U6 7.97 10.36 23.83

1/ Land roforu asaittnee to DUL.2/ This ill fom. th unallocat.d satogory.

F. Implementation Schedule

4.09 The construction period will be 7 years for both subprojects. Inboth areas, construction will begin in 1975 with the preparation of designand bidding documents for rehabilitation works. Construction will end in1981. An implementation schedule is given in Chart 8876(R).

G. Procurement

4.10 OMVVM, OMIVAN and their consultants will prepare design, specifica-tions and bidding documents for the contracts to rehabilitate the irrigation,drainage, and road networks, and for equipment, livestock, and vehicles tobe purchased. Civil works include irrigation, drainage and road networksrehabilitation, construction of rural extension centers, and of facilitiesfor rural electrification and domestic water supply. Because the proposedcontracts for civil works are small and scattered (about US$7.8 million forsome 25 different operations) and are to be implemented over a long periodof time (up to 4 years), they are unsuitable for international competitivebidding. Consequently, civil works will be tendered based on local compe-titive bidding or -- in the event contracting proves impracticable -- carriedout by force account and in accordance with OMVVM, OMIVAN, SONEDE, STEG, andMinistry of Public Works regulations. The local bidding and force accountprocedures are acceptable.

4.11 Except for special hydraulic equipment to rehabilitate the Medjerdairrigation system (about US$0.60 million), to be ordered by OMVVM from Neyrpic,S.A. (France), the only manufacturer of this equipment, all other equipmentfor Medjerda and Nebhana irrigation and drainage rehabilitation, includingthe electro-mechanical equipment and parts for pumping stations, pipes, taps,turnouts, and water meters (about US$1.7 million), as well as operation andmaintenance equipment and vehicles (about US$1.5 million), will be tenderedsubject to international competitive bidding in accordance with the Bank Group's"Guidelines for Procurement11 . Contracts for livestock (US$1.0 million) willbe awarded after receiving at least three quotations from suppliers for eachcontract.

16 -

4.12 Proposals will be requested from suitable consulting firms and/orindividuals acceptable to the Bank, to carry out engineering studies, prepara-tion of final designs and tender documents for Medjerda and Nebhana, and alsofor feasibility studies in Nebhana, as well as technical assistance in exten-sion services to OMVVM, and in management, cooperatives and marketing to OMIVAN.In addition, individual land reform specialists, acceptable to the Bank, willbe retained by OMIVAN and DAFL. Consultants services are estimated to amountto about US$1.4 million; further details and terms of reference are given inAnnex 12.

H. Disbursements

4.13 The proposed Bank loan of US$12.2 million will be disbursed over 7-1/2years. Disbursements will be for the full foreign exchange component of theproject cost and will finance:

(a) 39% of the cost of civil works (US$4.90 million);

(b) 100% of foreign expenditures for equipment, vehicles and live-stock or 77% of total expenditures (US$3.93 million);

(c) 100% of foreign expenditures for consultants, studies andfellowships (US$1.39 million); and

(d) 38% of total expenditures for credit (US$5.64 million).

Any savings after completion of the project would be cancelled.

4.14 Disbursement of the credit component will be dependent on an agree-ment between the Government and BNT, acceptable to the Bank and effective asof February 1, 1976 at the iatest. This agreement would cover terms and con-ditions of the subsidiary loan agreement with BNT and of subloans to farmersand marketing cooperatives. Should the agreement not be concluded by February1, 1976, the Bank would have the right to cancel the credit comaponent of theloan.

4.15 Retroactive financing of expenditures for civil works and equipmentincurred after June 1, 1974 and up to a maximum of US$100,000 bas been agreedto by the Bank.

4.16 The proposed schedule of expenditure over the 7-year constructionperiod is in Annex 15 and that for disbursement in Annex 16. The annuallocal and foreign financing requirements are:

Calendar Year 1975 1976 1977 1978 1979 1980 1981 Total------------------ US$ million-------------

Local 0.16 4.49 3.06 2.11 0.67 0.55 0.59 11.63Foreign 0.33 5.38 3.00 1.85 0.59 0.51 0.54 12.20

Total 0.49 9.88 6.06 3.95 1.26 1.06 1.12 23.82

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I. Environment and Health

4.16 The project area is free of all environmental and health hazardssuch as bilharzia and malaria. A cellulose plant has been in operation fortwo years near the Algerian town of Souk Ahras on the Upper Medjerda River.At the end of the dry season no deleterious effects have been observed fromthe plant's waste water discharge on water quality in the lower MedjerdaRiver. Consequently no adverse effect is anticipated due to the project.

V. PROJECT IMPLEMENTATION

A. Organization and Management

Medjerda

5.01 OMVVM will be responsible for planning, designing, contracting, andsupervising this subproject. From its establishment in 1958 under the Ministryof Agriculture until 1973, OMVVM was responsible for development of agricultureand irrigation in Medjerda, Nebhana, and several other areas. In May 1973,separate autonomous offices were established for Nebhana (OMIVAN) and otherPublic Irrigation Areas (PPI), and OMVVM was reorganized under a DirectorGeneral (Chart 8649 (2R)). He is supported by four Directors with Directoratesresponsible for: Studies and New Works; PPI, Supplies, and Marketing; LowerMedjerda Valley; and Administration and Finance. It has a staff of about 900.

5.02 Under the Bank project, OMVVM's Directorate of Studies and New Workswill be responsible for designing, executing, and supervising the irrigation,drainage, road rehabilitation, construction, and on-farm development works.This Directorate also will supervise construction and repairs, including thosefor on-farm development works, te be carried out under subcontract by special-ized firms. The Directorate of Lower Medjerda Valley will operate and maintainirrigation infrastructure, including water distribution and water charge col-lection, through its regional offices. It also will provide agricultural ex-tension services.

5.03 Other Government agencies and organizations will provide additionalservices. However, under the Law of 1973, OMVVM has the authority to coordi-nate their activities with its own (Chart 8651 (3R)). Two extension special-ists will be provided under the project to assist OMVVM. OMVVM will alsorecruit an experienced economist for its staff. In addition, a coordinatingcommittee will be established within three months of the loan becoming effec-tive to assist in coordinating the work of the project, to review past work,and to program future work. Reports of the committee's meetings, which willtake place not less than once in every three months, will be sent to OMVVM'sBoard of Administration for approval and to the Bank for information. Thecommittee will consist among others of the Director-General of OMVVM (Chairman)and representatives of BNT and of the settlers and of Project farmers, respec-tively. Agreement about this has been reached with the Government and OMVVM.

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Project farmers, respectively. Agreement about this has been reached withthe Governnent and OMVVM.

5.04 OMVVM and the Central Cooperative for Agricultural Mechanization(COCEMO) will provide farm machinery services. The Central Cooperative forSeeds and Selected Plant Materials (CCSPS) will continue to supply seeds andplant material, and the Cereals Office to supply fertilizers and other chemicalsto farmers entitled to supervised credit. To improve distribution of suchinputs, the subproject will include additional, larger storage facilities atrural centers. Private dealers will supply farm inputs to all others. OMVVMwill arrange with the Bureau of State Land Management (OTD) for imported se-lected cattle to be raised from the time of import to the time of distributionto project farmers.

5.05 The Research Center for Rural Engineering (CRGR) (Cherfech), theExperimental Station for Vegetable Crops (SEM) (Manouba), and the NationalInstitute for Agricultural Research (INRAT) (Ariana - Tunis) will continue tocarry out research (Annex 7). Existing training facilities, especially atSaida, can amply meet subproject requirements. Graduates from agriculturalsecondary schools will be available to fill the subproject's needs in theextension program. Additional more specialized technical assistance will beprovided by such organizations as the Livestock Office, the Cereals Office,and the Oil Office.

5.06 The success of the Medjerda subproject depends largely on intens-ified farming, which requires farmer acceptance of improved irrigation prac-tices. However, OMVVM has few direct contacts with farmers, and its manage-ment will have to introduce a much more effective extension program. Strength-ening of the field staff supported by a pool of full-time specialists is pro-posed, based on the well-distributed rural centers (Map 10986). Each ruralcenter will have its own extension staff, consisting of 1 to 8 agents (with,as a rule, at least 1 agent for each 200 ha of smallholder farms or 1 agentfor about 30 farms whichever is the greater). A Senior Agent will direct,supervise, and participate in the local extension program. The present staffof 35 agents will be augmented by 15 agents and 9 senior agents making a totalforce of 59. A training program will be instituted to periodically upgradeand maintain the professional competence of field staff through on-the-jobtraining and short-courses at a training center such as Saida (Annex 7). Forthe 1,230 settler farmers 39 agents will be assigned, including 1 Senior Agentat each rural center. Extension work among the other farmers of the projectarea will be assured by the remaining 20 agents. The field extension staffwill be supported by a full-time central pool of subject specialists at OMVVMheadquarters (Annex 10). The field extension staff will work under the direc-tion and supervision of 3 subdivisional extension directors to be located atTebourba, Dovar el Bey, and Sidi Thabet, or other suitable sites in the sub-project area. OMVVM's entire extension program will be planned, organized,and directed by the Head of OMVVM's Division of Extension, with the assistanceof two senior extension specialists recruited in agreement with the Bank.

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Nebhana

5.07 OMIVAN will be responsible for planning, designing, contracting, andsupervising this subproject. As OMIVAN was only established in May 1973 it isstill being organized and several positions remain to be filled (Chart 8790R).OMIVAN is headed by a Director, who is supported by two divisions (HydraulicWorks, and Extension) and five services (Administrative, Financial, Technical,Land Affairs, and Marketing). Its present professional staff consists of about25 supported by a team of extension experts provided through Belgian technicalassistance.

5.08 Under the Bank project, OMIVAN will be responsible for: operationand maintenance of the irrigation, drainage, and road networks within theirrigation sections; water distribution and water charge collection; estab-lishment of windbreaks; land reform; on-farm development consisting of landlevelling and deep plowing before planting of fruit orchards; extension serv-ices; and coordination of marketing services.

5.09 Other specialist Government services will assist in particular worksand the regional office of CCN as well as other cooperatives will supply inputsand provide marketing facilities (para 3.17). DEGTH will construct additionalengineering works directly or under subcontract to a local firm. Both DEGTHand local firms have had considerable experience in irrigation constructionduring the past 15 years.

5.10 DEGTH has been responsible in the past for planning, designing, andsupervising construction and operations and maintenance of large water re-source development projects in Tunisia. Recently, DEGTH took over the Nebhanadams, tubewells, and pipelines, from the Rural Water Development Department,which until then had fully controlled the water supply system. The Governmenthas clarified the role of DEGTH under the project, which will be to construct,operate, and maintain in Nebhana dams, tubewells, pipelines and other irriga-tion water delivery devices located outside the irrigation sections.

5.11 Problems that constrain development in Nebhana include the slowpace of land consolidation and titling, inadequacy of OMIVAN management andservices, insufficient access to farm credit, and unsatisfactory marketingarrangements. To overcome these constraints it will be necessary to assistOMIVAN by (a) establishment of a coordinating committee, (b) appointment ofa Senior Advisor to the Director, (c) appointment of a vegetable specialist,a marketing and cooperatives specialist, two short-term marketing specialistsand one land reform specialist (para 5.25), and (d) coordination with sub-project activities of the existing technical assistance project in agricul-tural extension financed by the Government of Belgium.

5.12 The coordinating committee will be established within three monthsof the loan becoming effective to assist in coordinating the work of theproject, to review past work, and to program future work. Reports of thecommittee's meetings, which will take place not less than once in every threemonths, will be submitted to OMIVAN's Board of Directors for approval and to

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the Bank for information. The committee will consist of the Director of OMIVAN(Chairman), and representatives of DAFL, DGETH, BNT, and of project farmers,respectively. The Governnent and OMIVAN have agreed to this. The SeniorAdvisor will assist OMIVAN's Director in coordinating all subproject develop-ment activities concerned with land consolidation and establishment of landtitles, provision of credit to farmers in the area, improvement of extensionand marketing services, and preparation of final design and tender documentsof subproject works and of feasibility studies for further development ofirrigated agriculture. The appointment of a Senior Advisor acceptable to theBank under terms and conditions satisfactory to the Bank is a condition ofeffectiveness. The vegetable specialist will aid OMIVAN's extension service.CCN and other cooperatives will distribute inputs and market farm produceunder the subproject. Distribution centers recently set up in Chott Mariem,Sahline, Moknine, and Bekalta will channel inputs. Marketing services willinclude collection of produce from the field, one-day storage at the centers,transport and sale to local markets, and operation of the proposed packing andgrading station for export. One full-time and two short-ternm specialists willprov$de technical assistance in marketing and cooperatives under the project.OMIVAN has agreed that no later than six months from the date of effectivenessit will complete a plan of action, acceptable to the Bank, providing for thestrengthening of marketing services, including those of CCN, in Nebhana. TheGovernment of Belgium will provide technical assistance to strengthen OMIVAN'sextension service in the form of some 62 man-years made available over theperiod 1973-80. OMIVAN has agreed that it will closely coordinate with otherproject activities the Belgian assistance to its extension department in orderto link optimal cropping patterns with improved water use, credit availability,and marketing possi-bilities.

B. Operation and Maintenance

Medj erda

5.13 The operation of the irrigation system and other infrastructure andequipment has been fair. irrigation development began in Medjerda in 1960.Sweeping changes in Government poYicies, especially in the mid-1960's when thecooperative organization was encouraged, and in 1969, when this policy wasabandoned, together with OMVVM's repeated reorganizations, have made satisfac-tory operation and maintenance exzremely difficult. Moreover, OMVVM has suf-fered from staff shortages and limited budgetary allocations. Since 1972, how-ever, OMVVM has had a satisfactory Operation and Maintenance Division, withadequate staff. The project will provide equipment for repair and replacement,including spare parts (Annex 11). In addition, OMVVM intends to call uponforeign or local contractors for special maintenance operations, such as Neyrpicfor heavy hydraulic equipment and others for road repair.

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Nebhana

5.14 In 1969, the irrigation scheme began partial operation though by1973 only about 36% of the equipped area was being irrigated (1,800 ha). Lackof maintenance is evident on the main hydraulic structures, such as the pipelineand other water delivery devices. DGETH will operate and maintain that partof the system located outside the irrigation sections. OMIVAN does not yethave the manpower capability or the equipment to satisfactorily operate andmaintain the existing distribution system and those works to be constructedunder the project within the irrigation sections. A complete operation andmaintenance unit must be established within OMIVAN, and equipment, machinery,and spare parts must be purchased. Most of the work will have to be done byforce account because of the small size of individual works, which are scat-tered over the length of the project (130 km).

C. Safety of Dams

5.15 Failure of the storage dams in the project area would have seriousconsequences. The Oued Mellegue dam not only plays a role in the supply ofwater to Lower Medjerda farmers, but also has an important function in reduc-ing flood damage to the River basin. The safety of the Sidi Messaoud dam onthe Nebhana River is essential to the availability of adequate amounts ofirrigation water for the Nebhana subproject. Government has agreed that itwill cause DGETH: (i) to carry out an inspection of the Oued Mellegue and SidiMessaoud dams and their appurtenant structures in 1978 and at intervals there-after of not more than five years to determine whether actual or potentialdeficiencies exist in the condition of these dams or in the quality and ade-quacy of their operation and maintenance; (ii) to forward a copy of each in-spection report to the Bank; and (iii) to undertake any necessary action tooperate, adequately maintain and repair these dams and structures.

D. Credit

5.16 To facilitate the flow of required credit to farmers in Medjerda andNebhana, institutional and policy changes will be necessary. The FOSDA loanterms for establishing orchards are unattractive to farmers because of theirhigh downpayment requirement. Also, investment credit is not easily accessi-ble to small farmers. The existing credit-in-kind program is unsatisfactorydue to very poor repayment performance and its high and increasing cost toGovernment (Annex 9).

5.17 To overcome the present shortage of credit the project will providefor D 1,452,000 (US$3.3 million) in medium- and long-term credit. Of this,D 383,000 (US$0.9 million) is needed for orchards in Medjerda, D 125,000(US$0.28 million) for orchards in Nebhana, D 209,000 (US$0.48 million) forstables and D 438,000 (US$1 million) for farm houses in Medjerda, D 107,000

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(US$0.25 million) for stilling and storage basins and sprinkler equipmenton Nebhana farms and D 190,000 (US$0.44 million) for marketing support facil-ities to Nebhana Cooperatives. In addition, seasonal credit will be providedto cover incremental working capital requirements, D 700,000 (US$1.6 million)in Medjerda and D 300,000 (US$0.7 million) in Nebhana.

5.18 These funds will be exclusively available to the principal projectbeneficiaries -- the 1,230 settlers and 600 small private farmers of Medjerdaand the 2,000 farmers in Nebhana. The Government has confirmed that, underTunisian law, the contract of sale in Medjerda encompasses a provisional title,and that provisional titles have legal standing as collateral for credit fromBNT.

5.19 The terms and conditions under which the loan proceeds for thecredit component will be made available to the lending institution as wellas that institution's staffing requirements for project purposes and theterms and conditions governing subloans to project farmers will be part ofthe review of agricultural credit policy which is being undertaken by theGovernment. The study will encompass a critical review of the conditionspresently governing agricultural credit in Tunisia and the structure of theinstitutions concerned. It vill propose new conditions for agriculturalcredit. In these circumstances, it was agreed during negotiations to deferdisbursements on subloans to project farmers and marketing cooperatives untilthe conclusion of the policy review. An agreement acceptable to the Bank willbe concluded between the Government and BNT; this agreement will contain theconditions of on-lending of IBRD funds to BNT, the terms of subloans to befinanced in part from Bank funds, and the credit institution's staffing require-ments for project purposes. Should the agreement not be concluded by February1, 1976, the Bank would have the right to cancel the credit component of theloan. Pending conclusion of the agreement, the Government will finance thecredit component of the project entirely from its own resources.

E. Land Reform Activities

Medjerda

5.20 The Ministry of Agriculture has under the Land Reform Legislation,overall responsibility for all Land Reform activities. OMVVM has been en-trusted by the Ministry with carrying out land reform activities in theMedjerda subproject and to prepare settler contracts. There is an urgentneed to accelerate issuance of provisional sales contracts within the 7,531ha allocated to 1,230 settlers and of provisional titles to private landownersin the remainder of the project area. In general, parts or all of existingagrarian reform legislation are still to be enforced on privately owned landby carrying out land consolidation, limiting land ownership to 50 ha, col-lecting farmers' contributions toward public irrigation investments in irrig-able land, and enforcing effective irrigation of at least two-thirds of theirrigable land in each farm holding; the latter is the main objective of the

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legislation. The Government has agreed to carry out its obligations under theland reform law in accordance with an implementation timetable agreed with theBank.

Nebhana

5.21 Under the Ministry of Agriculture's overall policy responsibility,OMIVAN has recently been charged with the carrying out of Land Reform activi-ties in Nebhana. OMIVAN will recruit additional staff for this purpose.Furthermore, in order to assure an adequate implementation capacity, a landreform specialist, vehicles, specialised equipment, and funds for field sur-veys are made available to OMIVAN under the project.

5.22 The project provides also for a land reform consultant to theDirectorate of Land Affairs and Legislation (DAFL) in the Ministry of Agri-culture to strengthen it.

F. Recovery of Costs

5.23 In accordance with the Land Reform Legislation (Annex 5), the prin-ciple of farmer contributions to public irrigation investments was established.In Medjerda, private farmers contribute towards the costs of primary andsecondary components of the distribution system, development of the remainderof the system being the responsibility of individual farmers. These contribu-tions are fixed at the equivalent of 25% to 70% of the value of irrigable land,valued at present between D 100 and D 200 per ha. The average amount of thecontribution is therefore about D 80/ha, payable in land or in 10 installmentswith 5% annual interest (D 10/ha/year). The settlers investment contributionis included in the price of the sales contract for his lot, which averagesabout D 400/ha, payable over 20 years without interest (D 20/ha/year). InNebhana, investment contributions are fixed by decree for each irrigation sec-tion and average about D 650/ha, payable over 10 years at 5% annual interest(D 84/ha/year). No recoveries have yet been made. The Government has agreedto commence collection of these contributions under a timetable acceptable tothe Bank.

5.24 Farmers do not pay for rehabilitation works as the Government con-siders that these costs were incurred because of its own neglect. On thebasis of the above farmer contributions to past investments, the total re-covered amount would be D 3.3 million (US$7.6 million) in Medjerda and D 1.4(US$3.1 million) in Nebhana.

5.25 All farmers receiving irrigation water in Medjerda and Nebhana willinitially pay an average annual water charge of D 0.006 (USé 1.4)/m3 andD 0.008 (USe 1.8)/m3 respectively to cover the full cost of operation andmaintenance of the irrigation and drainage networks together with major struc-tures. These charges exclude recurrent expenditure on roads, electricity,water supply, marketing and extension services (Annex 17).

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5.26 Investment contributions, settlers' payments for land, and operationand maintenance charges will amount to 12%, 13% and 12% respectively of thenet value of production of the three farm models in Medjerda (Annex 19, Tables8-10) and 29% and 22% respectively of the two models in Nebhana (Annex 19,Tables 11 and 12). These charges will result in full recovery of operationand maintenance costs of the irrigation and drainage networks, attributableto the areas to be fully developed under the Project as well as project invest-ment costs, less excluded items 1/, over the 35-year life of the project at6% interest. At a social discount rate of 10%, the recovery index will be77% for Medjerda, 93% for Nebhana and 81% for the total project. This willleave a Government subsidy to the principal beneficiaries of D 0.4 million(US$920,000), in present value terms, or 19% of attributable capital costs(Annex 18). In addition, a Government subsidy will be required to cover therecurrent expenditure for OMVVM and OMIVAN extension services of D 300,000(US$690,000).

5.27 Assurances were obtained from Government, that it will recover thecapital cost of the project as well as water charges at rates not less thanthose shown above. In order to maintain full recovery of operation and main-tenance costs, an assurance was obtained that the water charge rates will bereviewed by OMVVM and OMIVAN at intervals of not less than three years andthat any adjustments necessary to the rates would be implemented and the Bankwill be informed of the results of each review.

G. Accounts and Audit

5.28 OMVVM and OMIVAN maintain budgets and accounts which are underconstant supervision by a controleur financier appointed to each agency bythe Ministry of Finance. OMVVM and OMIVAN have agreed to (i) maintain sepa-rate accounts for the subprojects identifying the amounts collected fromsettlers (through sales contracts), from private farmers (through investmentcontributions), and from all project area farmers (through water charges);and ii) furnish to the Bank within four months after the end of each finan-cial year copies of their financial statements certified by the controleurfinancier, the report of the controleur financier to be in a form acceptableto the Bank.

1/ The cost of (1) rehabilitation of the road networks, to be recoveredthrough user charges and gasoline taxes; (2) electricity and watersupply, to be recovered through user charges; (3) on-farm investments,housing, and marketing support facilities in Nebhana to be repaidthrough credit; and (4) the Nebhana feasibility studies for the 3,000ha to be developed in the future.

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VI. BENfFITS AND JUSTIFICATION

A. Production

6.01 The project would increase cropping intensity from 112% at presentto 133% at full development in 1987. Significant increases are expected inthe production of fruits, tomatoes, wheat, forage and sorghum. Productionincreases are estimated on the basis of five farm budgets - three for Medjerdaand two for Nebhana. In Medjerda the farm budgets are based on cropping pat-terns emphasizing vegetables (4 ha model), fruits and vegetables (6 ha model)and forage, vegetables and livestock (7.5 ha model). In Nebhana the budgetsare based on cropping patterns based on vegetables (1 ha model) and fruits andvegetables (1 ha model). It is expected that in Medjerda there would be 700vegetable farms, 570 fruit/vegetable farms and 550 forage/vegetable/livestockfarms under the Bank project; in Nebhana there would be 1,470 vegetable farmsand 570 fruit and vegetable farms. Estimates of cropped area, croppingintensity and incremental production from the project are summarized belowwith details in Annex 7:

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Cropped Area Production

Crop Without With Without WithProject Prct Lrjec j~çj~ect Incremental

-- thousand ha -- ------ thousand ton --

Olives 1.40 1.51 2.15 3.46 1.31Citrus 0.35 0.53 5.25 13.61 8.36Miscellaneous Fruits 1.54 2.47 6.14 21.84 15.70Pistachioes - 0.20 - 0.08 0.08Grapes 0.50 0.90 1.15 5.70 4.55Artichokes 2.00 2.05 12.00 20.50 8.50Tomatoes 1.72 2.30 29.90 65.40 35.50Peppers 0.74 0.77 5.48 7.70 2.22Cucurbits 1.49 1.24 15.88 18.92 3.04Potatoes 0.48 0.50 5.28 7.19 1.91Miscellaneous Vegetables 1.62 2.14 3.42 11.42 8.00Groundnuts - 0.37 - 0.92 0.92Wheat 2.45 2.40 2.51 8.50 5.99Barley 1.00 0.50 1.20 0.75 (0.45)Forage Crops 4.30 4.45 117.75 181.45 63.70Sorghum - 0.90 - 90.00 90.00

Total 19-59 23.23

Cropping Intensity /a 112< i 33'

--- number ---

Milk 6.31 16.38 10.07Calves/Meat /b 826 3,194 O.C5 0.19 0.14Cows/Meat /b 275 1,200 0.16 0.72 0.56

/a Based on 17,520 ha. of irrigable area (15,482 in Medjerda and 2,038 inNebhana).

/b Liveweight basis.

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6.02 Increased production would result primarily from improved irriga-tion water distribution and application and from an improved extension pro-gram. Farmers in Medjerda and Nebhana are familiar with the use of manure,fertilizers, improved seed and pesticide inputs. The extension service,under the project, will teach/demonstrate to the farmers the advantages ofusing improved techniques of land preparation, planting and planned use ofwater and other modern inputs. Contract use of machinery on larger farmswould be encouraged in Medjerda and would be supplied by OMVVM, COCEMO andprivate farmers. Besides increasing output of traditional crops, the proj-ect would cause a shift from seasonal to off-season fruits and vegetablesand introduce new crops in order to increase net value of production andpromote diversification.

B. Markets

6.03 Most of the incremental production of fruits and vegetables wouldbe absorbed in the domestic market which is growing due to rapid urbanization,rising consumer incomes and tourist demand. Tunisia has a geographic advant-age with respect to Western Europe which may be exploited to increase itsshare of the market in Europe. Two important pre-requisites will be thestrengthening of the national export organizations and active encouragementof foreign importers to link with national marketing channels. The Govern-ment is taking steps to satisfy the above prerequisites and the services ofmarketing specialists financed under the Bank project should be instrumentalin improving export marketing prospects. The processing sector is relativelydeveloped for tomatoes and total production from the project (in Medjerda) willonly be about 15% of the existing processing capacity in the Tunis area.

6.04 For the new crops - groundnuts and pistachioes - the total incre-mental production (groundnuts 1,000 tons; pistachioes 80 tons) would be read-ily absorbed domestically. Increased cereal production from Medjerda (from3,700 to 9,000 tons) would be less than 1 percent of national production andwould find a ready local market. The significant increase in forage output(from 118,000 to 180,000 tons) would basically supply the feed requirement oflivestock in Medjerda itself. Presently, 60% of the demand for milk of theTunisian Company of Milk Industries is satisfied by import of milk powder(about 100,000 litres/day of fresh milk equivalent). Additional milk produc-tion from the Project would be economically competitive, in the absence ofdumping, with imports, and would be easily absorbed domestically. Similarly,the incremental meat produced (700 ton liveweight) would easily be absorbeddomestically. Imports of meat are expected to increase from 3,000 tons (colddressed weight) in 1973 to 10,000 tons in 1976. No marketing difficulties are,therefore, expected for the produce of the project. Details are given inAnnex 8.

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C. Prices

6.05 Prices for project produce are based on present farm gate pricesand the projected prices are adjusted for inflation. The adjustments accountfor variability in the quality of the produce, seasonal variation in pricesand, overall, are conservatively estimated. The prices used in the economicanalysis are based on the projections provided by the Bank's Economic Analysisand Projections Department (EAPD).. Prices of products which are not includedin the EAPD list of commodities are mission estimates of projected borderprices. The two sets of prices are given in Annex 20.

D. Farm Income

6.06 At full development the average annual net farm incomne of Medjerdabeneficiaries is estimated at D 2,430 (US$5,590), and of Nebhana beneficiar-ies at D 415 (US$955). These compare with D 1,006 (US$2,314) for Medjerda andD 164 (US$380) for Nebhana without the Project. The family income for Nebhanabeneficiaries is low due to the small farm size (1 ha) but would compare wellwith the national average farm income expected to be about US$770 by 1987.The project is estimated to bring a Nebhana family from 26% below the 1974national farm family income level to 24% above the 1987 average farm familyincome. Details are given in Annex 19 and summarized below.

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Medjerda Nebhana570 550 Forage/ 570

700 Fruit/ Vegetable/ 1,470 Vegetable/Costs and Vegetable Vegetable Livestock Vegetable FruitReturns Farms, Farms, Farms, Farms, Farms,Per Farm 4 ha each 6 ha each 7.5 ha each 1 ha each 1 ha each

------------------------D--------------------------

Cross value of production 2,760 4,098 5,256 821 1,018Less:Production costs 882 1,344 1,664 394 356

Net value of production 1,878 2,754 3,592 427 662Less:

Fixed charges includingcapital recovery 233 352 418 124 146Debt service 43 199 74 17 38

Net cash income 1,602 2,203 3,100 286 478Plus:Value of family labor 88 168 333 73 83

Net farm income 1,690 2,371 3,433 359 561

Net farm income per ha 422 395 458 359 561Net farm income:

Present -----------830…------…-__ -----170-----

With project at fulldevelopment (weightedaverage) ---------2,430----------- -----415-----

Without project at fulldevelopment ---------1,006----------- -----164-----

Increase of with projectat full development overwithout project 142% 153%

E. Benefits and Beneficiaries

6.07 Aggregate Economic Return. The economic benefits from the projectwill be derived from increased cropping intensity, expansion of cropped area,crop yield increases and crop diversification. Additional benefit transfersto Nebhana farmers are expected from savings in marketing costs due to projectinvestments in expanding cooperative marketing services, notably by the CentralCooperative for Fruits and Vegetables. The aggregate economic return for thecombined project is estimated at 28% and is based on a 35-year life of theproject. For the Medjerda and Nebhana projects respectively the rate of re-turns are 30% and 24%. These rates of return are based on the assumption that

- 30 -

all costs incurred prior to the project in the development of the irrigationareas are sunk costs. If the sunk costs are included in the analysis, theaggregate rate of return for the project becomes negative.

6.08 Sensitivity analysis of costs and benefits indicates that for theMedjerda project the most pessimistic rate of return would be about 19%; forNebhana this rate of return would be about 18% (details in Annex 20).

6.09 Beneficiaries. The main beneficiaries of the Project will be (a) inMedjerda about 1,230 settler farmers (from agrarian reform) and about 600 pri-vate farmers with holdings of 10 ha or less, and (b) in Nebhana about 2,000small private farmers.

6.10 Income distribution. Benefits from both projects would mainlyaccrue to small farmers (less than 10 ha in Medjerda and 1 ha or less inNebhana). In addition, the provision of farm houses, electricity, water,and other services would add to the real income of the relatively poorersegments of the rural population. By 1987, the average income of the 1 haNebhana farm faamily would rise by about 24% above the national farm averageand that of the Medjerda farmers by nearly six times approaching (within 90%of) the estimated average non-agricultural family income. The project wouldthus tend to reduce income disparities between rural and urban incomes andshould markedly improve the standard of life in the project area.

6.11 Title Security and Credit. The project will facilitate and accel-erate the issuance of secure titles to the main project beneficiaries. Italso provides for full implementation of the existing land reform legislationin the entire project area. This will give farmers easier access to long-term credit for land improvements. In addition, BNT in collaboration withthe OMVVM and OMIVAN extension services will assure an adequate credit supplyto project beneficiaries.

6.12 Employment. In addition to increasing self-employment of farmfamilies by about 36% in Medjerda and 53% in Nebhana, the project is estimatedto double the demand for hired labor. Full-time employment for some 3,000persons is expected to result (Annex 20, Table 7).

6.13 Foreign Exchange. The net annual impact on the balance of paymentsfrom the increased production is estimated at US$4.2 million. Net of debtservice, the net annual foreign exchange savings from the project will beabout US$3 million.

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VII. AGREEMENTS REACHED AND RECOMMENDATIONS

7.01 Agreement having been reached on the principal issues referred toin Chapters 4 and 5, and subject to the conditions of effectiveness and dis-bursement described in paras 5.12 and 5.19, the project is suitable for a Bankloan of US$12.2 million to the Government of Tunisia. In view of the lengthydevelopment period, full development not being foreseen before 1987, an ap-propriate term of the loan is 25 years including 7 1/2 years of grace, equalto the length of the disbursement period.

ANNEX 1Page 1

TUNISIA


Background Statistics on Tunisia

Item Unit Amount

PopulationTotal (1973) million 5.4Of which agrieultural million 2.8

Annual growth rate (1966-71) 2.6DensityOverall number/km 33Cultivable land number/km2 135

1hployment in Agriculture (1970-72)People million 0.8Share of total labor force % 52.5

Income (1 970-72)Per capita average national income US$ 233Per capita average agricultural income Us$ 90Per capita average non-agricultural income US$ 388

Gross Domestic ProductTotal (1973 forecast) D million 1,064

US$ million 2,h15Annual growth rate in 1966 prices (1961-72) % 6.6Sources (1970-72)

Total % 100.0Services % 32.5Agriculture and fisheries % 20.1Government % 15.0Manufacturing % 10.2Construction and public works % 7.3Transport and coimnunications % 6.9Mining % 6.oEnergy and water % 2.0

Land AreasTotal km2 164,oooAgricultural km2 90,000Cultivable km2 45h000Cropped km2 31,000Irrigable km2 1,1.00

ANNEX 1Page 2

Cropped Areas and Production

1972 1973 197k ProjectedItem Area Production Area Production Area Production

thousand thousand thousand thousand thZmgnd thousandha m ton ha m ton ha m ton

Cereals 1,588 1,261 1,674 1,257 l,561 1,190Pulses 81 65 83 65 '87 73Olives 907 381 658Citrus 120 75 109Touatoes 12 172 1h 223 16 250Potatoes 8 99 8 83 10 118Peppers il 84 il 90 12 106Othervegetables 37 438 40 455 41 500

Agricultural Iriputs

1969 1970 1971 1971Item kg/ha of

thousand m ton cultivable land

FertilizersN 43 12 74 16.4P2 0 5 64 57 59 13.1Other 9 5 8 1.8

Total 116 -7 ___

Insecticides/Pesticides 1 2 2

Public Expenditure on Agriculture

Item 1971 1972 1973----- D million-

Investment 11.h 12.1 -Recurrent 7.0 8.9 11.0

Wholesale Price Indices - 1972

Item Index1961 = 100

All products 159.4Foodstuffs 150.4

ANEX1

Foreign Trade in Agricultural Commodities

Item 1969 1970 1971----- D million ------

Total exports 29.1 30.1 41.5Olive oil 10.7 8.8 24.7Fruits and vegetables 6.4 6.2 7.1

Total imports 37.8 45.1 41.6Cereals 15.5 18.0 12.3Fats and oils 6.2 8.9 7.8Animals and animal products 4.9 5.1 6.7Sugar and derivatives 3.6 4.8 6.1

Agricultural exporta as % oftotal exports 33 30 35

Agricultural imports as % oftotal imports 26 27 22

December 1974

ANNEX 2Page 1

TUNISIA


Historic Review of Development andpBank invoivementin Medjerda and Nebhana

A. General

1. Medjerda and Nebhana are the oldest and costliest public irrigationprojects in Tunisia. The French and US Governments financed feasibility studiesfor both between 1950 and 1957.

B. Development in Medjerda

2. Construction of major works (the Nebeur Dam (regulation), the ElAroussia Dam (diversion), and a main canal) was completed in 1960. The workscost D 9.9 million (US$23.6 million), of which D 7.1 million (US$16.9 million) 1/was for irrigation and the balance for flood controi and hydropower production.Financing was by low-interest loans from the French Government.

3. Development of agriculture in Medjerda started in 1958 and tookplace in several phases. Before 1962, about 5,300 ha had been equipped forirrigation. In 1962, development began under the 10-year Minimum Plan. ThePlan called for development of 44,600 ha gross (32,816 ha net). By the endof 1973, 22,000 ha gross (15,482 ha net) had been equipped with main irriga-tion and drainage facilities.

4. Various external financing organizations participated in this de-velopment. The Kuwait Fund for Arab Economic DeveLopment assisted in finan-cing development of an area of 10,000 ha gross (8,188 ha net), completed by1966. The African Development Bank (ADB) and the United States Agency forInternational Development (USAID) financed 6,000 ha and 4,400 ha, respectively,developed during 1970-71. Finally, the Kuwait Fund is currently financing anextension of 14,700 ha gross (11,223 ha net), the last phase, to be completedby the end of 1975. The total cost of these works is about D 21 million(US$48.3 million) at current prices. Taking into account the cost of majorinfrastructure works and investments in irrigation works, the unweighted,non-discounted average cost for Medjerda ls about D 950 (US$2,200)/ha.

1/ At the exchange rate of D 1.00 = US$2.38, whîch was in effect from 1955to September 28, 1964.

ANNEX 2Page 2

C. Development in Nebhana

5. Construction of primary infrastructure works began in 1962. TheSidi Ilessaoud Dam was completed in 1966 and became operational around 1970,along with the associated vell fields and the main pipeline. These workswere partially financed by USAID. However, part of the distribution networkto cover about 5,000 ha net, is still under construction. At the time of ap-praisal, works for about 1,800 ha net had been completed. The total cost ofthe works is about D 24 million (US$55.2 million) or about D 4,800 (US$11,000)/ha, making Nebhana the costliest irrigation development project in Tunisia.

D. Bank Involvement in Medjerda and Nebhana

6. The Bank first became interested in the Medjerda subproject in early1967 when the Government was preparing the second phase of the Minimum Plan.In March 1967, the Government requested Bank assistance in financing an 11,000ha extension estimated to cost D 6.8 million (US$16.3 million), with a 39%foreign exchange component. The Government was then negotiating with ADBand USAID concerning development of additional land in Medjerda. A newproject for Bank financing could not be identified. Thus, the Bank en-couraged the Government to obtain ADB and USAID financing and to undertakea study leading to a 20-25 year Water Master Plan for Northern Tunisia; theBank agreed to be the executing agency for the study.

7. In September 1969, Government economic policy changed from massiveState intervention to greater reliance on private enterprise and free marketforces. Also, the Government decided to improve the usage of public invest-ments made during the previous decade. During 1962-71, nearly 40% of publicinvestments in the agriculture sector had gone to irrigation development,yet only 50% of irrigable land in the public irrigation areas was regularlybeing irrigated. This situation prompted the Bank's interest in irrigationrehabilitation.

8. Rehabilitation and complementary land development projects in threepublic irrigation areas have been identified for possible Bank financingthrough two projects. The first is the Central Tunisia Rural DevelopmentProject, for which a detailed project request is under study by the Bank. Itcovers the Sbiba and Oued Derb irrigation areas, together with smaller irriga-tion areas and surrounding rainfed farming areas. The second is the IrrigationRehabilitation Project. It covers the Medjerda and Nebhana irrigation areas,and is the subject of this report.

December 1974

TUNISIA


Climatic Data

Item MypthUnit J F M A M J J A S O N D Total

Medjerda

Average temperature OC LI 11.0 11.7 13.3 15.8 19.1 23.5 26.0 26.4 24.6 20.4 16.2 12.2

Average rainfall mL2 73 54 41 33 20 6 1 10 36 45 53 78 450

Evapotransp irat ion potential rm L. 46 47 83 122 154 175 219 196 143 98 63 44 1,390

Water deficit mm - - 42 89 134 169 218 186 107 53 10 -mm/day -- 1.4 3.0 4.3 5.6 7.0 6.2 3.6 1.7 0.3 -

Nebhana

Average temperature oC L4 11.2 12.1 14.0 16.0 19.0 22.8 25.6 26.3 25.1 21.0 16.3 12.3

Average rainfall mm L 43 34 30 22 16 6 1 5 50 43 37 38 325

Evapotransp irationpotential .m L 41 51 86 113 156 180 213 195 138 98 55 47 1,373

Water deficit am - 17 56 91 140 174 212 190 88 55 18 9mm/day - 0.6 1.8 3.0 4.5 5.8 6.8 6.1. 2.9 1.8 0.6 0.3

Tunis, 1924-50 average.4 Project area, interpolated from Tunis records for 53 years.t3 Tunis, INRAT - Ariana Research Station.

Sousse, 1901-60 average.Sousse, 1914-51 average.Interpolated from Tunis, INRAT - Ariana Research Station Records, 1959-70.

Source: Ministry of Agriculture data.

December 1974

ANNEX 4Page 1

TUNISIA


Available Water Resources and IrriSation Developmentin Medjerda and Nebhana

A. Available Water Resources

MedJerda

1. The Medjerda River is the largest river in Tunisia. Its watershed,of more than 26,000 km2, lies mainly in the northwestern part of the country,which has the heaviest rainfall. Average annual discharge of the river isabout 1 billion m3, or almost half of the country's total surface water re-sources. Water quality varies according to the tributary and season involved:salinity ranges from less than 0.4 gram/i in some parts to 3.5 gram/i in thelower reaches during summer. The Medjerda Valley's total potential for irri-gable land is about 100,000 ha.

Nebhana

2. Nebhana has far less water than Medjerda. Water quality (0.6 gram/lsalinity), however, is better and a true asset for high value irrigated crops.On the other hand, such high quality water also is very attractive to satisfydemands other than irrigation in this part of Tunisia (para 12).

B. Irrigation Development

Medjerda

3. Existing_Projects. Development of the Medjerda River has beendetermined by water availability and flood control. The following medium-to-large dams have been built, as part of this development:

ANNEX 4Page 2

Year of Capacity Water SalinityDam Construction million m gram/1 Purpose

Ben Metir 1947-50 55.0 0.4 Tunis vater supply

Nebeur 1950-54 130.0 2.0-2.5 Flood control, hydro-power (17 MW), andirrigation

El Aroussia 1954-58 5.0 1.5-3.3 Irrigation and hydro-power (4.75 MW)

Kasseb 1967-70 52.5 0.4 Tunis water supply

4. Large-scale irrigation in the Lower Medjerda Valley, downstream ofthe El Aroussia Dam, was started in the 1950's. At the end of 1973, 20,000ha had been totally or partially equipped, of which only about half vas irri-gated. In addition, the Badrouna Project in the Upper Medjerda Valley IVascompleted in 1969. Irrigation water for this area (2,000 ha) is pumped fromthe Medjerda River.

5. At present, water stored or diverted annually for urban use (about100 million m3) is far greater than that for irrigation (not more than 50 mil-lion m3). Water available annually for irrigation, however, is as much as250 million m3, and more than 35,500 ha could be irrigated annually. Watersalinity (3.0-3.5 gram/l) can be high in summer; its impact on crops may beharmful, especially when soils are heavy and have poor internal drainage,such as those in the Cherfech irrigation section.

6. Winter rainfall (November-February), averaging 250 mm annually,is important in leaching soils irrigated with the saline water from theMedjerda River. Thus far, no large irrigated areas have gone out of pro-duction because of salinity, and significant decreases in yields in the areaswith heavy soils have been prevented by additional leaching through excessirrigation. Insufficient water is not likely to limit irrigation in theMedjerda Valley for quite some time.

7. Projects Under Construction. In the Upper Medjerda Valley, theGhardimaou Irrigation Project is important. As early as 1961 a series oftubewells was established, while drilling continued up to 1969. Resultshave proven the feasibility of groundwater irrigation for some 4,000 ha.This project is now being executed. In the Central Medjerda Valley, theBou Heurtma Dam, with a capacity of 55 million m3, is under constructionand will provide irrigation water (0.6 gram/1 salinity) for some 18,000 ha.Present plans call for implementation of two irrigation development stages(3,300 ha and 3,600 ha). In the Lower Medjerda Valley, about 12,000 ha arebeing equipped in addition to the existing 20,000 ha. Once completed, irri-gation works there would service up to 32,800 ha, which is the final objec-tive of the Minimum Plan, conceived in the 1950's.

ANNEX 4Page 3

8. Future Projects and the Northern Water Master Plan. As a resultof the increasing demand for water, primarily for Tunis but also for addi-tional irrigation projects, the Government outlined in 1968 a strategy fora Northern Water Master Plan. The Plan covers practical the whole north-ern part of the country, including the Medjerda River B , the IchkeulWatershed, the Djoumine, Sedjenane and Madene Rivers, an he Cap Bon Water-shed system. The Government and consultants started studies in 1969, withan initial Bank grant of US$150,000 and with the Bank acting as ExecutingAgency. The final report on these studies shows that multipurpose developmentof Northern Tunisia's water resources (flood control, irrigation, and urbanand rural water supply) would require a total investment of about D 108 mil-lion (US$248 million) up to the year 2000.

9. Within this framework, the Government is considering a first-stagedevelopment project which would include:

(a) construction of:

(i) a major multipurpose storage dam at Sidi Salem (450million m3);

(ii) the El Aroussia-Cap Bon Main Canal (90 km, 20 m3/sec);and

(iii) Tunis water supply system (40 million m3/year);

(b) irrigation of an additional 10,000 ha; and

(c) rehabilitation of some 6,000 ha of irrigated tree crops inthe Cap Bon area.

The total cost of the project is about D 43 million (US$100 million). Follow-ing review by the Bank and discussions between the Government and the Bank,the Government will carry out sensitivity tests to determine the effect ofmodifications considered essential by the Bank.

10. The Medjerda subproject fits well within the Northern Water MasterPlan. The quantity of water would be ample for the requirements of the 20,066ha area at full development, following rehabilitation, since the existing ir-rigation system is designed to irrigate more than the 38,000 ha under theLower Medjerda Valley's Minimum Plan. Full development of the area underthe Plan might be reached in about ten years. Meanwhile, new water storagefacilities and irrigation sources as conceived within the Northern WaterMaster Plan may continue to be built either in the Medjerda Valley or inthe Ichkeul Watershed to provide additional water of even better qualityfor irrigation.

ANNEX 4Page 4

Nebhana

il. Water ief ailable from two main sources: surface and groundwatar,Surface water is Ï plied from the Sidi Messaoud Dam (storage) (86 million m3)and the Bel Assoud Dam (diversion) (3 million m3/year) on the Nebhana River.Groundwater is obtained from a series of tubewells from the acquifers at BledSisseb (11 tubewells) and Bled Sbikha (5 tubevells). A 1969 study, based on40 years of inflow records, shows that even during the most critical yearsthe combined dam and tubewell system would be able to supply 80% of the 35million m3 annual irrigation requirement for 5,000 ha at the rate of 5,600m3/ha.

12. Meanwhile, since irrigation development has been slow, some 4 mil-lion m3/year of water have been diverted to satisfy growing urban, industrial,and tourist demands. Further, within the Northern Water Master Plan, supplyof the Sahel region (including the cities of Sousse, Monastir, and Sfax) fromthe Medjerda and Ichkeul water systems by means of a canal or pipeline fromthe Cap Bon area is being considered. This would be an extension of the ElAroussia-Cap Bon Main Canal, now under study. But the water, brought fromthe north at high cost by means of a major conveyor, would be of less desir-able quality (1.8-2.0 gram/l salinity) for urban, industrial, and touristuses than the high quality water available from Nebhana.

13. Enough water is available to fully irrigate the 2,000 ha under theNebhana subproject. The Government has agreed to ascertain whether sufficientwater would be available to irrigate the full 5,000 ha, taking due account ofnearby urban, industrial, and tourist demands. This would include investigat-ing the possibility of using treated sewage water from Sousse for irrigation.The study of water availability will be undertaken by the Ministry of Agricul-ture's Directorate for Hydraulic Studies and Major Works within the frameworkof the regional water master plan studies.

December 1974

ANNEX 5Page 1

TUNISIA


Legal Aspects and Present Situation of Land Reform

A. Land Tenure and Agrarian Reform Legislation Applicableto Irrigable Areas of the Lower Medjerda Valley

Land Tenure

1. The proposed subproject in the Lower Medjerda Valley comprises20,066 ha of irrigable land, or which 15,482 ha are fully equipped and4,584 ha are partially equipped, lack&ng tertiary and quaternary (field)distribution systems. Table 1 describes the present land ownership patternin the project area.

2. The fully equipped part of the subproject area (15,482 ha) con-3ists of:

(a) State Land'(1,850 ha). Most of this land is leased to statecooperative or private farms and the remainder is used forexperimental and training purposes (Table 2). Eventually,the State may distribute about 414 ha to private farmersas small holdings.

(b) Settler Land (7,531 ha). Land belonging to foreigners(mainly French) vas purchased or nationalized, with com-pensation to former owners, in accordance with provisionsof Law 64-5 of May 12, 1964, and was transferred to theState. The State divided this land into small lots, rang-ing between 3 ha and 12 ha depending on land use classifica-tion, and distributed it to settlers, such as farm workers ofthe former owners. Table 3 shows the size distribution ofholdings and number of holdings of each size per irrigationsector.

(c) Private Land (6,101 ha). Table 4 shows the size distributionof holdings and number of holdings of each size per irrigationsection.

3. The partially equipped part of the project area (4,584 ha) consistsof State land (1,410 ha) leased to private farmers, companies, and state or-ganizations as well as private land (3,174 ha). Tables 5 and 6 show the sizedistribution of private holdings and number of holdings of each size per ir-rigation section. Many privately owned holdings appear to be held merely asan investment, consequently there is a high degree of absenteeism.

ANNEX 5Page 2

Agrarian Reform Legislation

4. Law 58-63 of June 11, 1958, as amended by Law 60-6 of July 26, 1960,contains the agrarian reform legislation applicable to the Lower Medjerda Val-ley. Law 70-25 of May 19, 1970 and Decree 70-199 of June 9, 1970 regulatedistribution of State land to individuals. Under the overall responsibilityof the Ministry of Agriculture, OMVVM is entrusted with carrying out landreform activities under these laws.

5. The main features of the agrarian reform legislation (Law 58-63,as amended by Law 60-6) are:

(a) Contribution Toward Public Irrigation Investments in IrrigableLand. An owner of more than 2 ha of irrigable land has to con-tribute to public investments which enable his land to be irri-gated. A scale of contributions is set (varying from 25% to 70%of the acreage of irrigable land held by each owner), in accord-ance with the land capability class 1/. The Minister of Agriculturedetermines the class in which each holding or fraction of a hold-ing is to be included. Contributions may be either in cash or inkind (land). Cash contributions are compulsory for holdings under4 ha or for holdings planted with fruit trees in accordance withrequirements set by the Minister of Agriculture. The Ministermay authorize cash contributions to be spread over five or teninstallments bearing 5% annual interest. Contributions in kind(land) are required for those parts of holdings exceeding 50 ha.Each landowner is notified individually by order of the amountof his contribution and of the time allowed for payment. Ifpayment is not made within the allowed time, the amount dueis recovered in two ways. When a cash contribution is due,procedures provided for government claims are applied. Whena contribution in kind is due, expropriation procedures areapplied.

(b) Land Ownership Limitation. Land reform legislation applicableto the irrigated area provides for a 50 ha ceiling 2/ on theamount of irrigable land that may belong to one owner 3/. Anyland exceeding the ceiling is subject to expropriation. TheState may abstain from expropriation or expropriate only par-tially, however, if the owner carries out intensive irrigatedcropping on the land involved or pledges to do so in accordancewith a program approved by the Minister of Agriculture, or if

1/ OMVVM has estimated the present value of these lands between D 100 andD 200 per ha.

2/ This ceiling is determined after enforcement of the provisions of thelaw referred to under (a) preceding.

3/ Jointly owned and corporately owned holdings are considered to belongto one owner for purposes of this provision.

ANNEX 5Page 3

the owner divides and sells the land in accordance with a planapproved by the Minister of Agriculture. The State is to paycompensation for expropriated land in the form of 25-year Statebonds bearing 2% annual interests.

(c) Land Consolidation. OMVVM may proceed with land consolidationto achieve a land pattern enabling irrigated farming to becarried out rationally. To initiate consolidation proce-dures, the Minister of Agriculture issues an order. OMVVMthen proceeds with a land survey and a proposal land consolida-tion plan. The plan is posted on a notice board and sent toeach individual landowner. Three months are allowed from theposting date for landholders to submit comments. Next, a com-mittee is formed to make a recommendation on the plan. Thecommittee is chaired by OMVVM's General Manager (PresidentDirector General) and composed of representatives of theMinistries of Agriculture, Housing, Justice, and Public Worksand of three representatives of owners, designated by localauthorities. The committee sends its recommendation to theMinister of Agriculture. He reaches a final decision andissues an order effecting land consolidation and transferringtitle among parties involved. OMVVM then submits to the LandRegistry a detailed map prepared by the Ministry of Equipment'sTopographical Services or by a private surveyor licensed bythe Services and files the transfer of title with the Registry.Any liens or mortgages attached to titles on lands transferredto new owners under the consolidation plan are automaticallyattached to titles on lands acquired by mortgages under thesame plan.

To avoid undue splitting up of landholdings, those lessthan 4 ha may not be subdivided. Distribution or sale of landcannot take place if holdings below this size would result.

Until now, OMVVM has proceeded with three consolidationsin the fully-equipped, private land area (about 88 ha in ElMansoura section, 310 ha in Tebourba section, and 1,140 ha inHenchir Hamada section). The final stage of the consolidationprocedures in those three instances has not been reached yet,that is, obtaining an order from the Minister of Agriculturefor Tebourba and Henchir Hamada sections, submitting to theLand Registry detailed maps of the three sections, and filingwith the Registry transfers of title for the three sections.

(d) Obligation Imposed on Farmers to Irrigate Their Land. Farmersare obliged to cultivate their land regularly, that is, to ir-rigate annually at least two-thirds of the equipped irrigableland. Each owner is given two years of grace from the timethe irrigation conveyance system reaches his fields to carryout the necessary works for irrigation. In case of default,the owner has to pay an annual tax of D 5/ha.

ANNEX 5Page 4

(e) Miscellaneous. Landholders may be obliged to adhere to differ-ent types of cooperatives (production, marketing, or processing).

6. Under Law 70-25 and Decree 70-199, State land not required for es-tablishment of production cooperatives, public interest purposes, or exchangewith owners of publicly irrigated land may be sold to private individuals.Some sales have taken place, but the extent is not known. Based on the recom-mendation of a Regional Committee established under the Decree, the NationalAdvisory Council establishes a list of candidates eligible for assignment ofState land. Present occupants of the land have first priority. The Ministersof Agriculture and Finance jointly determine the list of beneficiaries ofsuch assignments. Assignments of State land are subject to certain termsand conditions and to payment of a price equal to the market value of theland, as determined by the Minister of Agriculture and Finance. The pricemay be paid either on signature of a sales contract drawn by OMVVM or inten annual installments. If a contract is signed for payment of the fullpurchase price, State land assigned to settlers cannot be transferred forfive years from the date of the contract, unless authorized by the Ministerof Agriculture. If installments are paid, the State, represented by OMVVM,takes a first mortgage on the land. Special payment conditions may begranted to settlers on the land to be distributed.

7. By a joint decision of the Ministers of Agriculture and Finance,sale of land may be forfeited in case of: (i) failure to pay the full pur-chase price on the agreed dates; (il) failure to farm the land before fullpayment of the purchase price or to improve it so that productivity is in-creased; (iii) sale of the land before full payment of the purchase pricewithout prior approval of the Minister of Agriculture; or (iv) failure tocomply with the terms and conditions imposed upon individual farmers byArticle 4, 1/ Law 69-56, Reform of Agricultural Resources, September 22,1969.

8. Regarding the fully equipped former State land distributed tosettlers, OMVVM is preparing provisional contracts with settlers. Whenthose contracts are ready, OMVVM will request a detailed topographic sur-vey of each parcel either by the Ministry of Equipment's TopographicalServices or by a private surveyor licensed by the Services. On the basisof such survey, OMVVM will prepare a final contract for each parcel to beregistered with the Land Registry. The settler then will have valid titleto his land.

1/ This Article requires private land to be farmed in accordance with theobjectives of the national development plans and in accordance withconditions in a statement of terms and conditions.

ANNEX 5Page 5

B. Land Tenure and Agrarian Reform LegislationApplicable to Nebhana

Land Tenure

9, The proposed subproject in Nebhana comprises 5,000 ha of land tobe developed under irrigation. Usually holdings are small, between 0.23 haand 1.33 ha, and of irregular shape. They are fragmented and dispersed ina number of non-contiguous parcels between 0.15 ha and 0.83 ha in size.

10. The land is privately owned and farmed, except 186 ha in Monastirand Enfida sections, previously held by State Cooperatives and the Bureauof State Land Management. The legal status of ownership is complex: oneowner may own the standing olive trees but another may own the land on whichthey stand; as many as three plots, usually non-contiguous., may exist perfarm; co-heîrs often may be joint owners; and legal titles often may be outof date. Most units are farmed directly by one of a number of possibleowners. In the case of absentee owners, a number of holdings are rentedor farmed by share croppers. Only in exceptional cases are holdings notfarmed.

11. Superimposed on this complex land use and ownership pattern is arectangular irrigation network laid out according to soil type and topography.The network cannot be fitted to the existing land use pattern as this wouldcause very costly distribution and sub-optimal irrigation practices and pro-duction levels. Thus, landholdings must be fitted to the network by consol-idation and realignment of parcel boundaries, and must be regrouped and ex-changed to form a new land tenure pattern.

Agrarian Reform Legislation

12. Law 63-8 of May 27, 1963, as amended by Law 71-9 of February 16,1971, contains the agrarian reform legislation applicable to publicly irri-gated areas (PPI) outside Medjerda. Under this Law, public irrigation areasare created by Decree upon recommendation of the Ministries of Agriculture,Finance, and Planning and of a National Advisory Committee for PPI establishedunder Law 63-8. Decrees have been issued for all sections in the Nebhana sub-project area, 1/ as shown in Table 7. Under the Ministry of Agriculture'soverall responsibility OMIVAN has recently been charged with the execution ofland reform activities in Nebhana.

13. The main features of the agrarian reform legislation (Law 63-8 andLaw 71-9) are:

1/ During appraisal, the Bank was asked to include 11 sections in the sub-project area. However, inclusion of only 7 of those sections (about2,000 ha) is feasible under the project. For the remaining 4 (about3,000 ha) a feasibility study for their development is proposed.

ANNEX 5Page 6

(a) Contribution toward Public Investment and Limitatins9 o#Size of Holdings. Any property jointly owned or corporatelyowned 1/ at the date of the Decree creating each PPI is deemedto belong to one owner. The Decree determines each owher'scontribution toward public investments in the PPI. The amountof each contribution has been determined for each section inthe subproject area, as shown in Table 8. This contributionmay be paid by the owner either in cash or in kind (land). Itmust be paid in land, however, by farmers owning within thesame section either less than a minimum amount of land (floor)or more than a maximum amount of land (ceiling), as authorizedby Decree. For the 11 sections in the subproject area, thesefloors and ceilings were authorized (as shovn in Table 8) bythe same Decrees referred to in Table 7.

By order, the Minister of Agriculture notifies each ownerof the amount of his contribution due in cash or in kind (land)as well as the time allowed for payment. For purposes of deter-mining the amount of each individual contribution, prior invest-ments by each owner in his land are taken into account. If pay-ment is not made vithin the time allowed, the cash contributionis recovered by the State and the contribution in kind is ex-propriated by Decree without compensation.

Owners may not hold in the same section either less thanthe authorized floor or more than the authorized ceiling ofland after deduction of the contribution toward public invest-ments. Owners of less than the authorized minimum may selltheir holdings or exchange land inside the irrigated sectionsfor rainfed State land outside the irrigated sections in ac-cordance with Law 70-25 (paras 6-9). These owners may enlargetheir holdings when State land is distributed in the irrigatedsection, as available, or when private land derived from hold-ings exceeding the maximum size is distributed or sold. Iftheir holdings remain below the floor in spite on these pos-sibilities, owners will be invited to group themselves tofarm at least a minimum size lot or to appoint one of thémto farm it. As a last resort, if the above proposals arenot acceptable to owners, their holdings will be expropriated.Also, owners of land in excess of the authorized ceiling willhave their excess holdings expropriated. In addition, wholeareas may be expropriated where land is overburdened withowners and where land ownership status is utterly confused.

1/ An exception is made, however, for property owned in partnership byfarmers who farm the land thenselves.

ANNEX 5Page 7

Land is expropriated by Decree. The State gains posses-sion of expropriated land upon publication of the Decree inthe Official Gazette. Based on market value of the land andupon recommendation of a committee composed of representativesof the Ministries of Agriculture, Finance, and Planning and ofthe National Farmers Union, compensation is paid by the SpecialFund for Agricultural Promotion, created by Article 5, Law 70-25.

For owners of less land than the authorized floor, compen-sation is paid entirely in cash. For owners of more land thanthe authorized ceiling, compensation is paid half as cash atthe time the amount is determined and half in 10-year StateBonds bearing 4% annual interest. For owners of land over-burdened with owners and where ownership status is confused,compensation is paid in full to farmers compelled to leavethe area and is set off against assignment of new land inthe same area for farmers remaining in the area.

(b) Land Consolidation. Land consolidation is to be undertaken,generally, to ensure more rational farming of land. No specificprocedures are set out under Law 63-8 or Law 71-9. The proceduresused are as follows:

(i) An agro-economic, land, and social survey is made foreach section. Three surveys have been completed inNebhana project area sections (Chot Mariem, Sidi BouAli, and Sbikha).

(ii) Detailed proposals are made for consolidation, realign-ment, and redistribution of holdings. These proposalstake into account proposed contributions toward publicinvestments in PPI to be charged to PPI landowners andproposed expropriation and exchanges of land to be madein PPI (referred to in (a) preceding).

<iii) Proposals are submitted to individual farmers and nego-tiations are started. Negotiations are conducted by alocal committee. 1/ After agreement is reached with afarmer, a record of possession is drawn and signed byall parties involved.

1/ When no agreement is reached, the Government may have recourse to ex-propriation.

ANNEX 5Page 8

(iv) Formal legal procedures are undertaken by issuing ordersto levy contributions toward public investments in thePPI, issuing expropriation decrees when necessary, andexchanging land outside the PPI if necessary.

(v) A detailed survey of the land covered by the con-solidation plan is contracted by the Ministry ofEquipment's Topographical Services or a privatesurveyor licensed by the Services.

(vi) A registration procedure for each parcel involved, coveredby Sections 319-357 of the 1965 Codé of Real Estate Law,is started. First, a registration request is filed withthe clerk of the Real Estate Court, 1/ who publishes therequest in the Official Gazette. Then land survey pro-cedures ((v) preceding) are started. At various points,information is published in the Official Gazette. Next,the clerk of the Real Estate Court receives objectionsabout the proposed land survey. Then Real Estate Courtproceeds with various inquiries and reaches a finaljudgment. Finally, this judgnent is sent to the LandRegistry, which proceeds with final registration. Theowner can then be considered to possess a valid title.

(c) Obligation Imposed on Farmers to Improve PPI. Farmers areobliged to improve their land in the equipped irrigable areasby annually growing irrigated crops on at least two-thirds oftheir holdings. Two years are allowed between the date irri-gation infrastructure is operational and the date irrigatedfarming begins. If farmers..fail to proceed accordingly, theGovernment may provide the necessary on-farm investments tomake irrigated farming possible. The farmers then have toreimburse such on-farm investments( ehose cash value isdetermined by order of the Ministry of Agriculture). Creditmay be granted for such reimbursement, in which case the Statetakes a first mortgage. Under exceptional circumstances, theGovernment may decide by Decree to proceed with such on-farminvestments before the end of the two years allowed. Suchinvestments are then to be reimbursed as indicated .earlier.

December 1974

1/ Up to now, most of the land in the Nebhana is not registered with theLand Registry. The Government is now proceeding with registration intwo sections of the project area (Chot Mariem and Sidi Bou Ali).

TUINISIA

IRRIGATION RERAILITATION PROJECT

Medlerda' Ownership Distribution by Extent of IrriRation Esuipment

Section Fully Bquipped Area Partially Kquipped Area

State- Settler- Privately State- PrivatelyOwned Owned Owned Subtotal Owned Owned Subtotal Total

--- ha----------------------------------------------- -------------

Bordi Toum 187 530 67 784 - 784

Tebourba 430 480 311 1,221 - - 1,221

Henchir Hamada 92 245 1,141 1,478 - - _ 1,478

Zouitina - 209 94 439 - 43 43 482

El Mahrine 222 809 1,082 1,977 - - - 1,977

El Bathaa 117 119 62 298 214 - 214 512

Nefissa - - 711 711 - - - 711

El Mansoura - 620 88 708 - 620 620 1,328

El Habibia 50 861 - 911 48 189 237 1,148

Douar El Bey - - - - 149 483 632 632

Manouba 51 68 387 506 300 191 491 997

Zahrouni 108 - 512 620 - - - 620Sidi Thabet 72 769 249 1,090 532 180 712 1,802

Cherfech 48 861 483 1,392 93 537 630 2,022

Djebel Amar Nord 170 115 39 324 33 267 300 624

Djebel Amar Sud - 152 43 195 - 117 117 312

Bejaoua 161 385 163 709 - - - 709

oued Elll1. 96 201 290 587 - 233 233 820

Utique - 1,107 - 1,107 - - - 1,107

Soukra 45 - 380 425 42 313 355 780

Total 1,850 7,531 6,101 15,482 1,410 3784,066

Source: OMVVM,

Dec,mber 1974

TUNI3[tA

IRRIGATION REHABILITATION PROJWCT

Medjerda: Distribution of State-Owned Land in Fully EquipPed Area by Type of Operator.

Sect:or __ _ _ Type of O2eratorSemi-Autonomous Private

Government IndividualsState Parme Agencies and Corporations Other Total

______________ -___-----------------ha------------------------------------

Bordj Toum _ 105 82 - 187Tebourba 430 _ 430

Henchir Hiamada 92 - 92Zouitina _El Mahrine 151 71 _ 222E1 Bathan 60 47 10 - 117NefissaEl MansouraEl Habibia 50 50Douar El Bey - - -

Manouba _ 7 44 51Zahrouni - - 108 - 108

Sidi Thabet - 59 - 13 72Cherfech - 30 18 48Djebel Amar Nord - 20 150 170Djebel Amar Sud - - - - -Bejaoua _ 26 135 - 161Oued Ellil - 74 22 - 96Utique - - - -

Soukra h /1 h /1 45

Total 733 /2 L9 /2 T451 /2 _8l 2 1,5 3

/1 Not available.72 Excludes Soukra.T Includes Soukra.

Source: OMVVM.

Lecember 19,

TUNISIA

IRRIOATION REHABILITATION PROJECT

Medjerda: Distribution of Settler-Owned Land in Pully âquipped Area by Number of Holdings

Section fi old:npf Si'zes- than3 ha 4 ha5ha -10- ha 10 ha + Total Total

--- --------------------number of holdings----_-____________________

Bordj Toum - _ 8 73 - 81 530Tebourba - - - 97 - 97 480Henchir Hamada - - - 49 - 49 245Zouitina - - 3 39 - 42 209El Mahrine 14 27 20 83 6 150 809El Bathan - - 1 19 - 20 119Nefissa - - - -El Mansoura - - 6 101 - 107 620El Habibia 30 1 26 81 - 138 861Douar El Bey - - - - - - -Manouba - - 1 12 - 13 68Zahrouni - - - - - - -Sidi Thabet - 1 7 90 6 104 769Cherfech - - - 26 47 73 861Djebel Amar Nord 2 - 8 10 1 21 115Djebel Amar Sud - 1 4 21 - 26 152Bejaoua 1 1 10 52 - 64 385Oued Ellil 4 8 10 17 - 39 201Utique 19 60 - 111 14 204 1,107Soukra - - - - - -

Total 70 99 104 881 74 1,228 7,531

Source: OMVVM.

December 1974L

TUNISIA


Medierda: Distribution of Privately Owned Land in Fully Equipped Area by Number of Holdings

Section Holding Size

Less than2 ha 2-5 ha 5-10 ha 10-20 ha 20-30 ha 30-40 ha 40-50 ha 50 ha + Total .'ctrL

------------------------------------------ 7____nualber of holdings------------------------------------------ -ha

Bordj Toum- - - - - - 1 - 1 67Tebourba 84 63 4 - - - - - 151 311Henchir Hamada 17 44 il 20 16 1 1 - 110 1,141Zouitina 24 7 5 1 - - - - 37 94El Mahrine 2 6 8 5 3 1 7 - 32 1,082El Bathan 5 5 1 1 1 - - - 13 62Nefissa 32 24 15 1 6 1 1 - 90 711El Mansoura - 3 4 1 1 - - - 9 88El Habibia - - - - - _Douar El Bey - - - - - - - - - -Manouba 49 36 il 3 - - 1 - 100 387Zahrouni 28 48 18 4 2 2 - - 102 512Sidi Thabet 1 5 - 6 - I - - 13 249Cherfech - - 5 - - 5 3 - 13 483Djebel Amar Nord 1 - 1 2 - - - 4 39Djebel Amar Sud 43Bejaoua 7 8 1 4 2 - - - 22 163Oued Ellil 6 10 3 2 3 1 - - 25 290Utique - - - - - - - -

Soukra /1 L - L L L /1 L L 380

Total 255 /2 260 -2 86 5 9 /2 36 22 1/2 14 /2 /2 722 /2 6,101 /3Total__ 25 26 _ _

/1 Not available.

/2 Excludes Soukra./3 Includes Soukra.

Source: OMVVM. a x> cnDecemiber 1974

TUNISIA


Medjerda: Distribution of Partially Equipped Area byKIoldinru Size

Hloldinig Size

Less than2 ha 2-5 ha 5-10 ha 10-20 ha 20-30 ha 30-40 ha 40-50 ha 50 ha + Total

Bordj Toum - _ _ _ _ _ _Tebourba - - - - - - - - -

Henchir Hamada - - - - - - - - -

Zouitina 2 21 8 12 - - - - 43El Mahrine - - - - - - - --

El Bathan 8 81 90 35 - - - - 214*Nefissa - - - - - - -El Mansoura 58 73 115 90 101 139 - /1 - 620El Habibia - 3 24 - 85 35 90 - 237

Douar El Bey 23 183 68 136 - 77 - 145 /2 632Manouba 15 29 25 65 23 34 42 258 /3 491Zahrouni - - - - - - - - -

Sidi Thabet - - - 19 - - 46 647 /4 712

Cherfech 78 41 67 66 138 32 - 268 7 630Djebel Amar Nord 15 72 104 116 100 35 - 51 493 /6Djebel Amar Sud 18 45 13 13 28 - - - 117

Bejaoua - - - - -

Oued Ellil 46 62 24 48 53 - - - 233Utique - - - - - - - - -

Soukra /7 /7 /7 /7 /7 /7 /7 - /7 355

Total 263 610 538 600 528 352 178 1,369

/1 48 ha rented to Tunisian Farms Company (SFT)./2 Saida Agricultural Training Center./3 258 ha rented to SFT./4 410 ha used for State horse breeding farm and 122 ha for State nursery./5 93 ha for State horse breeding farims./6 Only 300 ha are to be equipped in the Djebel Amar Nord Section. Therefore, the total area (ha) to be equipped amounts to x

4,777 ha - 193 ha = 4,584 ha. u u/7 Not available./8 Exclides Soukra.

Source: OYVVM,

bece,ecr 137h

TUNISIA


Medierda:,Distribution of Partially Epuipped Area by Humber of Holdings

Section HoldinR Size

Less than2 ha 2-5 ha 5-10 ha 10-20 ha 20-30 ha 30-40 ha 40-50 ha 50 ha + Total

----------------------------------------number of holdings---------------------------------------------------

Bordj Toum - - - - - - - -Tebourba - - - - - - - -Henchir Hamada - - _ _ _ _ _Zouitina 1 5 1 1 - - - - 8El Mahrine - - - - -El Bathan 4 22 12 3 - - - - 41Nefissa - - - - -El Mansoura 45 20 15 6 4 5 - - 95El Habibia - 1 4 - 3 1 2 - ilDouar El Bey 20 45 9 10 - 9 - - 93Manouba il 7 4 4 1 1 1 3 32Zahrouni - - - - - - - -Sidi Thabet - - - 1 - - 1 4 6Cherfech 23 12 10 4 5 1 - 4 59-Djebel Amar Nord 18 16 14 7 4 1 - 1 61Djebel Amar Sud 16 14 2 1 1 - - - 34Bejaoua - - _ - - - - -Oued Ellit 37 19 4 3 2 - - - 65tique /l - - - - - - - -

Soukra - - -_ _ _ _ _ _

Total /2 175 161 75 40 20 18 4 12 505

/1 Not available.

/2 Excludes Soukra.

Source: OMVVM1

[)ecerstUer ' )y'4

TUNISIA


Nebhana: Provisional Schedule of Land Reform Implementation

Section Elaboration of Decrees Elaboration of Implementation RateIrrigable Specif,ying Farmer Land Consolidation

Area Investment Contributions Pfoposals 1975 1976 1977 1978 1979ha ------------------ ha ------------------

Chott Mariem 573 March 31, 1975 June 30, 1975 200 200 100 73 -Sidi Bou Ali 938 June 30, 1975 August 31, 1975 - 200 200 300 238Akouda 205 August 31, 1975 November 30, 1975 - - 70 70 65Sahline 173 September 30, 1975 December 31, 1975 - 100 73 - -Monastir 200 March 31, 1975 -_ 200 - -Teboulba 153 November 30, 1975 December 31, 1975 - - 78 75 -Vieux Teboulba 280 June 30, 1976 December 31, 1976 - - 50 100 130Bekalta 363 November 30, 1975 December 31, 1975 - - 100 200 63Moknine 156 June 30, 1975 September 30, 1975 - - 100 56. -

Sbikha 1,163 June 30, 1975 Completed 1,163 - - -

Fadhloun 151 March 31, 1976 December 31, 1976 - - - _ 161Bembla 250 December 31, 1975 March 31,`1976 - 200 50 _

R Not given.

Source: OMIVAN

December 1974

TUNISIA


Nebhana: Farmers' Contribution Toward Past Public Investients and Legal Maximum and Minimum Holding Size

Legal limita to Holding SizeSection Area Amount of Capital Contribution Maximum Minimum

ha D/ha ha ha

Chott Mariem 576 900 3.6 0.88

Sidi Bou Ali 938 h20 ; 650 10 ; 4.5 2.5 1,1

Akouda 205 600 3.2 0.8

Sahline 173 650 3.2 0.8

Monastir 186 630 1 `

Bembla 660 420 ; 500 10 ; 3.2 2.5 ;.8

Moknine 156 650 3.2 0.8

Teboulba 156 650 3.2 0.8

Bekalta 363 500 ; 650 10 ; 3.2 2.e; o.8

Fadhloun 4 240 10 2.55 12 -IL.F 1 .A 12Sbikha 1,163 240 ; 270 ; 400 10 ; 62.5 .9

.1 For land that can support only a semi-intensive cropping pattern.

L1. For land that can support only a semi-intensive cropping pattern./ For land that can support a very intensive cropping pattern.e

Not yet determined./4 ot given.

/5 For land with an intensive cropping pattern. CD

Source: Ministry of Agriculture.

December 1974

AUNE! 6Table1

TUNISIA

IRRIGATION REHABILITATION PROJET

lledJerda: Area

Subdivision Area lquippedand Section for Irrigation Area

Gross Net Ful' Partial Under Settlers_ -- ------ ha-----------------------

Tebourba

Bordj Toum 960 784 784 - 530Tebourba 1,836 1,221 1,221 - 480Henchir Hamada 2,486 1,478 1,478 - 245

Zouitina ) - 482 439 ) 3 209Zouitina N. ) - (170) (170) - )Zouitina S. ) _ (176) (133) (L3) ) (209)El Mahrine N. ) _ (136) f136) -

El Mahrine ) 4,595 1 ,977 1 ,977 - 809El Mahrine S. ) - (372) (372) -Bir El Aouini ) - (675) (675) - (5L6)Sidi Na.i 0. ) - (227) (227) -Sidi Naji E. ) - (703) (703) - (263)

El Bathan 595 512 298 21h 119

Subtotal 10,472 6,454 6,197 257 2,392

Douar E1 Bey

Nefissa 1,381 711 711El Mansoura 1 ,483 1 ,328 708 . 62G 620El Habibia C+S 1,451 1,148 911 237 861Douar El Bey 650 632 - 632 -

Manouba 1,605 997 506 h51 68Zahrouni 720 620 620 . - -

Subtotal 7,290 5,436 3,456 1,980 1,549

Zidi Thabet

Sidi Thabet 2,666 1,802 1,090 712 769Cherfech 2,250 2,022 1,392 630 861Djebel Amar N. 2,222 624 324 300 115Djebel Anar S. - 312 195 117 .152Bejaoua 864 709 709 - 385Oued Ellil 1 ,230 820 587 233 201

Soukra 1,100 780 425 355 -

Subtotal 10,332 7,069 4,722 2,3L7 2,483

dtique

Utique 1,230 1,107 1,107 - 1,107

Total 29,324 20,066 15,482 b,5E4 7,531

Note: Figures in parentheses refer to double cropped area.

Source: OHVVMM.

Decel,tvr 1974

ANIJEX 6Table 2

TUNISIA

IRRIGATION REHABILITATION PRO JECT

Msd.ierda: Land Use. 1971

Subdivision Croo Doubleand Section Fruit Ve oetables ForaFpe Cereal Fallow Croppin-

___________________----__ ha--------------------------

Tebourba

Bordj To= 286 180 81 306 - 69

Tebourba 37 164 356 15h 510 -Henchir Hamada 46 413 52 522 440

Zouitina 173 1>48 2 157 2Zouitina N1.Zouitina S.El M3hirine N.

El Mahrine 468 322 84 664 439El Elahrine S.Bir El AouiniSidi Naji 0.Sidi Naji E.

ZL Bathan 295 59 585 19 -

Subtotal 1,305 1,291 629 1>883 1,41O 69

Douar El Bey

Nefissa 282 306 - 164 - hiEl Mlansoura 181 453 135 396 170 7El Habibia C+S 167 243 302 272 164Douar El Bey 389 - 65 69 109 -

Manouba 398 388 86 146 - 21Zahrouni 278 17L 52 130 - 14L

Subtotal 1 P695 1,564 640 1,177 4l43 83

Sidi Thabet

Sidi Thabet 152 237 202 1,123 88 -Cherfech 17 286 165 1,388 166 -Djebel Amar "' ) 634 202 24 128 - 52Djebel Amar S. )Bej_oua 199 157 13>4 150 69Oued Ellil 426 281, 36 70 - 5

Sou}ra 380 1: 5 - -3 5

Subtotal 1,808 1,211 561 2,868 678 57

Utique

Utique - 58 2 730 17 -

Total 4, 808 I1,2 1 632 2.5i03 _

Source: ONVl'J,I

Doceinher L974

Taible 3

TUNIItr

IsmmATfL1N MHLADfl.ITAT1W PROJSCT

Nadierda: Lni UbeS. 1972-l

Subdivlsihn CFro. Doubleend Section F Veetables ra Serol Fallow

--- _-_---_-__-__-_--_-_ -- a -- - ------------ -------

Tobo.rba

BordJ Totn 261 350 169 190 - 186

Teboufb' 107 510 350 65 189 -Henchlr HMda. 113 667 158 317 223 _

Zouitina 173 202 14 57 189Zouitlna N.Zouitdm S.E1 Ybhrine N.

Z1 Hahrine 497 787 242 228 223 _3l Nuie S. , Bir si louinisidi Maji. 0.sIdi NaOl. E.

El Bath 2 76 7 51 12 -

Sibtotai 1,Wu6 2,.592 1,011 908 836 339

Douar lil Bey

Neftise 213 452 24 56 - 34El Manmaou 270 615 375 252 - 18EL HabiLbl* C+S 160 328 352 99 209 _Douar ElBey 3,48 - 57 20 207 -NMaouba 335 340 277 110 - 65Zahroui _295 82 81 35 128 1

Subtotal 1,621 1,817 1,166 572 94k 21k

Sidl Th>set

SIdi Thabet 149 406 1007 646 _406Cherfach 70 306 1452 715 482 3Djebel arN. N 586 312 136 141 - 239Diebel Jhar S. )Bojaoa 271 232 276 80 - 150OuedEllil 1438 315 32 16 19 _

Sboukra 30 45 - 355

Subtotal 1,891 1,616 1,903 1,908 856 79

Utique

Utique _ 619 206 381 -

Total 6~96 itm

Somted t chw&

December 1974

ANNEX 7Page 1

TUNISIA


Agricultural Development in Medjerda and Nebhana

A. Medjerda

Agricultural Research, Training and Extension

t. The agricultural development of the area, both without and withthe project, is influenced by the research, training and extension facilitiesavailable. The Research Center of Rural Engineering (CRGR) at Cherfech, theExperimental Station for Vegetable Crops (SEM) at Manouba, and National Ins-titute for Agricultural Research in Tunisia (INRAT) at Ariana-Tunis carry outagricultural research for the area. CRGR has been active for eight years(originally with UNDP/FAO assistance) covering crop water needs, fertilizerresponse, and salt tolerance. SEM, of which the technical assistance compo-nent is subcontracted to the University of Ghent, emphasizes culturalpractices, disease control, and varietal research on irrigated vegetablecrops, especially artichokes, tomatoes, and peppers. INRAT extensivelystudies all common crops in the area.

2. Under supervision of the Directorate of Agricultural Research,Education and Training, formal agricultural education in Tunisia is providedat the National Institute for Agronomy (INAT), various technical specializedschools, 8 agricultural secondary schools, and 17 professional agriculturaltraining centers. Their average annual output is 40 agricultural officers,110 technicians, 350 extension workers, and 1,200 specialized workers. Train-ing is also provided through training centers for extension workers at Saidaand for cowmen at Sidi Thabet, and through a farm machinery and farm manage-ment institute at Medjez el Bab. Additional training ïn livestock productionis available through a USAID-assisted livestock project or directly byState livestock farms in the subproject area.

3. The extension service, officially entrusted to OMVVi-s Divisionof Extension, is virtually non-existent. There is little coordination betweenheadquarters and regional offices. Field extension staff is weak (one agentfor about 1,000 ha) and senior irrigation officers lack proper experience.Rural centers, established before 1969 to provide information and inputs,have been abandoned except to provide housing to a limited number of agents.Contacts with farmers are mainly confined to water distribution matters andsurveys for input requirements to be provided under the credit-in-kind prograx,.

Situation Without the Subproject

4. According to land capability studies, irrigated crops originallyplanned for the various soil classes in the Medjerda subproject area were:

ANNEX 7Page 2

USBR Soil ClassCrop

I and II III IV /a Total_________________----- ha --------------------

Vegetables 2,200 1,000 0 3,200Fruits 8,600 0 0 8,600Cereals, pulses,and forage 0 3,900 4,400 8,300

Total 10,800 4,900 4,400 20,100

/a Soils that are skeletal, heavily eroded, or saline, or have relativelyimpermeable calcareous crusts, which are suitable for some cereals,pulses, and forage crops.

Crops could easily be shifted in areas having the same soil class, but shiftswould be less desirable in areas having different soil classes.

5. Recent statistics from the Office for the Development of the LowerMedjerda Valley (Annex 6) show that cropping patterns have changed during1971-1973. The area under vegetables increased from about 4,400 ha to6,600 ha (double cropping from about 200 ha to 1,500 ha) and that under foragefrom 1,800 ha to 4,300 ha. These increases were largely at the expense ofareas under cereals, which decreased from 6,700 ha to 3,500 ha.

6. Of the 20,066 ha in Medjerda, 15,482 ha are fully equipped forirrigation and the balance partially equipped, but only 10,550 ha were ac-tually irrigated during the 1972-73 cropping season. This included practicallyall of the vegetable area, 70% of the fruit area, and 45% of the forage area.Most cereal crops are grown under dry land conditions, although new high-yielding varieties of wheat under irrigation have been introduced recently ona very small scale. The small agrarian reform settlers and private farmersin Medjerda use irrigation facilities to a greater extent than the largeprivate farmers.

7. Irrigation is mostly through the basin method, regardless of thetype of crop. The drawbacks of this method are: (a) water is unevenly dis-tributed to fields due to poor land levelling; (b) borders, ditches, andother small earth structures occupy much usable land; and (c) too much laboris required and mechanization is not possible.

8. Breakdowns and impairments in the distribution system have resultedin insufficient water to irrigate most fields. But adequate amounts arebeing applied to vegetables and more than average quantities are being usedto leach heavy soils of possible salt accumulation. At full development,leaching is expected to continue over a large part of Medjerda to controlsalinization following irrigation with water from the Medjerda River, whichis rather saline in summer.

ANNEX 7Page 3

9. The farming level in Medjerda ranges from fair to poor. Herbicidesand pesticides are almost never used. Fertilizers and farmyard manure arewidely used for vegetables, but hardly used for cereals and forage. Farmersmay obtain fertilizers through the Cereals Office or direct from privatedealers; however, distribution centers are scarce and inputs often have to becollected at Tunis. Several nurseries and a few private farmers in the areaproduce plant material of the major vegetables (tomatoes, artichokes, andpeppers). Vegetable seed is partly produced locally and partly imported, andis distributed by the Central Cooperative for Seeds and Selected PlantMaterials. The seed is often poor in quality, being diseased (nematode in-festation) and uneven in size and vigor. Seed varieties propagated in nur-series often are not authentic, but seeds produced through a new programunder bilateral technical assistance are more homogeneous and genuine.

10. Tractor services are provided by the: large farmers (contractors),OEMVM, and the Central Cooperative of Mechanized Farming. The latter owns55 tractors plus implements and has 9 Rural Centers strategically locatedthroughout the area. Its services are offered on a cash payment basis. Landpreparation and harvesting of dry land cereal is highly mechanized, even onfields of 1 ha to 3 ha. Harvesting and baling of vetch/oats is also mechan-ized, but harvesting of alfalfa and berseem is usually by hand.

11. Livestock production could be important in Medjerda's development,and could be closely integrated with forage production on soils where othercrops are of limited or no suitability. Pioneering work by OTD (with bi-lateral technical assistance), has resulted in importation of selected dairycattle (Friesian). Three State farms now have 1,325 head of selected cattle.Over the years, such cattle have been sold to private farmers and settlers.Large numbers of locally-bred cattle are also maintained on private farms.

12. The present cattle situation follows:

ANNEX 7Page 4

Farm ----- Selected CattleType Number Nuiber

Large enterprises /a 3 1,325-Settler farnms (7 ha average) 550 2,750Private farnma (20 ha average) 50 350

Total 603 4,425

Farn Locally-bred CattleType Number Nuaber

Settler farms and small private 50 485farns (0-7 ha)

Large private farms (10-40 ha) 267 1,090

Total 317 1,575

/a Including two State farms.

13. Each settler farm with livestock usually has a stable to accommodateeight head of cattle, including five or six cows and two calves. Veterinaryservices are adequate and no major animal diseases exist. But milk yields aredisappointing due to under-balanced and unbalanced feeding as well as poorhygiene. The lactation period is often reduced to 210 days instead of thepotential 300 plus. Annual milk yields of selected cows are thus between2,000 and 2,500 liters and often less.

14. Nilk is marketed through the Tunisian Company of Milk Industries(STIL). STIL has a collection center in Saida (capacity 23,000 1/day), whichmainly handles milk from the three large enterprises. Small farmers selltheir milk to private collectors, who pick it up at the farm gate, pay aslightly higher price, and do not levy the extra 3% charged by STIL. Thistype of sale is prohibited because of the price differential and the threatposed to public health due to possible milk contamination, but it is vide-spread.

Full Development with the Subproject

15. Considering climate, land capability, market potential, farm sizedistribution, and recent development trends in Medjerda, irrigation rehabili-tation is expected to result in significantly increased irrigated farmlngand decreased dry land farming. Greater diversification of irrigated cropsis also expected, due to varied market demanda and labor availability.

ANNEX 7Page 5

16. Development under the project would be concentrated on the 7,531 haheld by settlers and the 2,800 ha held by small private farmers. A fanm sizeof 10 ha vas, therefore, chosen as the upper limit for farms which would bedirect beneficiaries. Larger farms were not chosen because they have contri-buted relatively little to agriculture as provisions of agrarian reform legis-lation have been poorly applied and enforced. But area-wide improvements inirrigation, drainage, and roads will result in developmental effects on largefarms and even State lands, which cannot be quantified in terms of cultivatedarea and yield increases.

17. Land use versus land tenure has been analyzed (Table 1). For theanalysis, several assumptions were made: (a) no change in cropping patternswould occur on State lands, and (b) a shift in forage and cereal productionfrom dry land to irrigated farming and an increase in areas under irrigatedfruits and vegetables (including double cropping) would occur, largely onsettler and small private farms. Benefits would be largely noticeable onabout 10,330 ha of the 15,482 ha fully equipped for irrigation as follows:

- ----- Farm ---------… --Type Number ha

Settler 1,230 7,531 /aPrivate 730 6,101Less than 10 ha 600 2,800 /aMore than 10 ha 130 3,300

State lands 1,850

Total 1 960 15 482

/a Area receiving direct benefits (10,330 ha).

18. Although set patterns for different farm types do not now exist,distribution of farm sizes and gradual intensification of crop rotationsuggest three representative types of farms smaller than 10 ha:

Type Production Average Size Numaber Totalha ha

I Vegetable 4.0 700 2,800Il Fruit/Vegetable 6.0 567 3,402III Forage/Vegetable/Livestock 7.5 550 4,125

Total 1 817 10 327

Table 2 shows approximate cropping patterns for each farm type without andwith the subproject.

ANLEX 7Page 6

19. With the subproject, Type I would emphasize traditional vegetablecrops, plus small areas under fruit trees (0.5 ha), and irrigated wheat grownprimarily for consumption by the farm family (1 ha), substituting for a largerarea under dry land wheat (1.5 ha). Type Il would be at least half underirrigated fruit and the balance tomatoes, artichokes, dry land cereal, orforage. Type III would be at least half under forage and the balance underfruits and vegetables. It also would receive one or more head of selectedcattle to add to and upgrade its existing herd and gradually replace someor all of the local breeds. Tables 3-6 present the expected breakdown ofareas under different crops and their total production over seven years ofdevelopment as well as the potential development of livestock in Medjerda.

B. Nebhana

Agricultural Research, Training and Extension

20. The agricultural development of the area, both without and withthe project, is influenced by the research, training and extension facilitiesavailable. INRAT maintains two research stations in the area; the one atBekalta specializes in production of fruit crops, and the other at Teboulbain cropping practices of different vegetable varieties. In addition, anexperiment and demonstration station at Chott Mariem, run by UNDP/FAO inassociation with a USAID sponsored agricultural college, studies culturalpractices and production costs of irrigated vegetables. In addition, SEMwill create a special sub-station at Sahline for field trials with vegetablesand multiplication of seedlings.

21. The Deputy Director of Extension of OMIVAN is responsible foragricultural extension and distribution of inputs within the irrigationsections of Nebhana. The agricultural college annually trains about 40agricultural officers and assistant engineers. The extension service isweak and understaffed, with only four extension officers and eleven assistantsfor the entire subproject area. However, a Tunisian-Belgian extensionsupport project provides additional technical assistance, primarily forNebhana. This project (1973-80) will also provide inputs for demonstrationareas, seasonal financial support for farmers, training of extension staff,and collection of field statistics. The Belgian Government is provîding 85%of the cost, through which four foreign specialists and eight technicianswill be made available at its peak. This technical assistance is expectedto provide needed strengthening of the extension service.

Situation Without the Subproject

22. Farming is largely confined to the coastal sections (Chott Marlem,Akouda, Sahline, Teboulba, Vieux Teboulba, Moknine and Bekalta) and ie de-voted almost entirely to seasonal vegetables. Off-season (early and late)vegetables and fruits could be extensively produced under Nebhana's climate.

ANNEX 7Page 7

But relatively small quantities have been produced, mainly because exportfacilities are lacking.

23. A number of fruit orchards were established in 1968-69 under thecooperative movement. They comprise about 320 ha of apricot plantations inSbikha and Enfida (two inland sections) and about 90 ha of mixed peach andapricot plantations in Monastir (a coastal section). About 1,900 ha, in-cluding 1,500 ha of vegetables and 400 ha of fruits, are being irrigated inthe 5,000 ha of Nebhana equipped with main irrigation structures. Besidesirrigated crops, much of the area is covered with olive trees, at densitiesranging from 70-100 trees/ha. In some areas, olive trees have been removedto make room for intensive vegetable production; in others, vegetables andfruit trees have been planted between olive trees.

24. A major constraint to intensive irrigation development is the smallsize and fragmentation of farm holdings, which, together with the geometricregular layout of the irrigation distribution system, make rational exploita-tion of a single farm difficuilt. Moreover, the scattered stands of olivetrees, lack of land levelling, and disrepair of and need for complementarystructures in the irrigation system prevent further development by farmers atthis time.

25. The level of farming and knowledge of farmers in the vegetable pro-duction area is generally good. Inputs (fertilizers, chemicals, selectedplant material, plastic for plant protection, etc.) are available throughState organizations or local producers' cooperatives. Access to seasonaland medium-term credit for inputs and on-farm investments is difficult, however,and, combined with uncertainty about secure tenure, discourages the effortsof farmers. Consequently, crop yields have been only moderate. If the con-straints were removed, yields would increase considerably.

Full Development with the Subproject

26. In the absence of adequate feasibility studies for development ofthe inland sections (Sbikha, Fadhloun and Enfida) as well as two coastalsections (Monastir and Bembla), full development under the subproject canapply to seven coastal sections (Chott Mariem, Akouda, Sahline, Moknine,Teboulba, Vieux Teboulba, and Bekalta). These sections cover a net area ofabout 2,000 ha (the exact size of one section, Vieux Teboulba, is not known,but is estimated to be 400 ha). Most vegetables are being produced in thesesections.

27. After the irrigation system is rehabilitated, more intensive croprotation should be possible. Growing early and late vegetables in rotationshould be emphasized, and winter and summer crops (such as groufidnuts) shouldbe more diversified. In view of the potential market for early apricots, forwhich the coastal sections are highly suiltable, and certain types of citrus(Maltese oranges and clementines), plantations should be established over amodest area (400 ha). Fruit trees should be planted to cover only 60% ofthe area designated for orchards, leaving 40% for interplanted vegetables; or

ANNEX 7Page 8

fruit orchards and vegetable plantings should be separate. Existing olivetrees should be removed to establish fruit orchards, but most should be leftas windbreaks to grow vegetables. Table 7 gives estimates of areas and pro-duction over the development period.

28. Average farm sizes (currently about 1.0 ha, consisting of severalsmaller holdings) probably would not be much larger following land-consoli-dation and registration of titles than the minimum sizes fixed by the AgrarianReform Law (0.9 ha for vegetables, 1.0 ha for citrus, and 2.5 ha for atonefruits).

29. Although set patterns for different farm types do not now exist,distribution of farm 9izes and introduction of fruit trees in the area suggesttwo representative types:

Type ProductiQn Average Size Number Totalha ha

I Vegetablê 1.0 1,470 1,470II Vegetable/Fruit 1.0 570 570

Total 2,040 2,040

30. Farm budgets (Annex 19) indicate that a Type I farm in Nebhana, withan area of only 1 ha, would have the smallest net income of all farms underthe Irrigation Rehabilitation Project. This is because growing of off-seasonvegetables requires considerable investments in inputs (plastic sheeting,artificial windbreaks, etc.), which raise production costs disproportionately.Raising the income of these farms appears only possible by increasing theirarea. However, this can only be achieved by displacing an even greater numberof small farmers than will already be the case because of the implementationof the land reform procedure. Given the lack of alternative employmentopportunities, an increase in the minimum farm size beyond 1 ha (the minimumsize for a viable entprprise) does not seem in line with present Governmentpolicy.

December 1974

L'iXE 7Table 1

TUNISIA

IRRIGATION REHABILITATION ?ROJECT

N6d1erda: Land Use Versus Land Tenure Without and With the Subproiect

Type of Land and DwnerCrop Irrigated Land and Oh-ner D d ard Owner

Private Sub Prïv uState Settlers Parties total State Parties total Total--------------------------------- t.a---------------------

Without the Subproject

Fruits 443 - ---- 2,983 _ ---- 3,426 - 289 1,246 1,535 4,961Vegetables 375 (97) -- 6,269 (1,423) ---- 6,6'1-4 (1,520) - - - 6,644 (1,520)Forage 9 9 8L_- ---- 950 … ___ 1,9148 - 762 1,576 2,338 4,286 -Cereals 3 _ ____ 2 _ __ 3,459 - - - - 3,459 -Fallow - ---- -1525 - 360 __J51 711 2.236 m

Total 1.4 (97) ---- 13.3 (1.423) ---- 1vu482 (1,20) 1.5411 L1 484 Z20.066 (1.520)

With the SubprojectDi

Fruits 500 - 2,000 - 1,800 - 4,300 - 300 1,000 1,300 5,600 -Vegetables 350 (100) 4,300 (2,100) 2,500 (1,100) 7,150 (3,300) - - - 7,150 (3,300)Forage 1,000 - 1,800 - 1,000 - 3,900 - 750 800 1,550 5,35o -Cereals - - 1,200 - 500. - 1,700 - - 1,500 1,500 3,200 -Fallow 99 - 331 - 1 ,402 _ - 1,832 - 361 -12 7a 23 4 2,066

Total 1 (100) 7j (2.100) 6.102 (1.100) 15 482 (33) 1.411 l3 20.066(1 )

Yote: Figures in parentheses refer to double cropped area.

4 Includes about 200 ha of irrigated cereals.Gereals are grown under dry land conditions in irrigated or dry areas.

/3 Most figures have been rounded to nearest 50 or 100.4 Cereals may be grown under irrigated or dry land conditions on private farns.B Rocause cereals are grown under dry land conditiono in irrigated or cry aroao, fi,Ynres for fallow are interchangeablebetween irrir:ated end dry areas.

Source: Eased on FAO/3BRD Preparation Report and OMMM data.

December 1974

Table 2

TUNISIA


)adierdat Crouîing Patterrs and Famr Tvnes Without and With the Subnroiect

Farm Type 1 Farm Type Il Farm Type IIICrop (Veeetable - 4.0 ha) (Fruittleeetable - 6.0 ha) (?orage/Vegetable/Livestock 7.5 ha)

Withoùt With Without With Without WithSbuproject Subprro-ect Subproject SubDroiect Subnrolect Subaroject---------- ~~~~------------------------------ h-----------ha ----------- ------------------------ ------ -

Fruit$Fruit TreesL - 0.50 2.00 2.40 0.75 1.00Olives (Table) - - - 0.30 -

Grapes (Table) - 0.80 -

Yonng Orchards 1.00 -su)total 0..i 3.00 3.50 1.05 1.00

Xf*.'ta`CleeArtichokes - - 1.50 1.50 1.20 1.20Toeatoes 0.75 1.20 1.00 1.00 -Vegetables - s1nwmr i.50 1.50 - - -

- widter4 0.50 0.65 - 0.90 0.90Potatoes -- - 0 2à4

Subtotal 2.75 3.350 2.50 2.55

Forage and Cerealsllfalfa - - - 0.140 0.70Perseem - - - 0.90 1.25SorghuDr- -- 0.90Green B arleyAye Grass - - - 1.00J~etcWOatsAiweat (Dry) 1.50 - 1.00 0.50 1.75 -Wheat (Irrigated) - 1.00 - - 1.00

Subtotal 1.50 1.00 1.00 0.50

Total _ .25 __8_ 668 .10

Crppi5ing Intensity 1O6 121% 108% 10889% 112,

/A Pears, apples, peaches, and pomegranates.7 Especially peppers, melonis, and cucurbits.7: Peas, beans, and cabbages.

Source: Based on FAO/IHRD Preparation Report and OMVVM data.

December 1974

TUNISIA

IRRIGATIONI REHA»IITATION PROJECT

MedJerda: Area under Cultivation Without and Weth the Subproect

Crop Without Subpro1ect With Subvro1ectYeor O Year 6 Year 6

Irrlpated Dry Total Irrliated Dry Total Irrigated Dry Total--------------------------------------------- ha --------------------------------------

Fruits 3,400 1,550 4,950 3,800 1,500 5,300 4,300 1,300 5,600V getablea 6,650 - 6,650 6,800 - 6,800 7,150 - 7,150

Doubled cropped (1,500) (1,500) (2,100) - (2,100) (3,300) (3,300)Foroap 1,950 2,350 4,300 2,200 2,300 4,300 3,800 1,550 5,350Cerels- 3,450 3,450 400 3,000 3,400 1,700 1,500 3,2Q0Fallow ------2,2502 -- 2,250 ------2,200---__ 2,200 --- 2,100 ----- 2,100

Aroa 15,482 4,584 20,066 15,482 4,584 20,066 15,482 4,584 20,066

CroqwziLg Iuntan ity 78X - 96% 85% - 1O% 19m - 106%

Nots: FPIS=* ia ,pmanth ms refar to double croppd tar.

Sou»r Ie:ed on 1fA/IER Prspett Reort Mtd WV dta.

Decomber 1974

ANNEX 7

Table 4

TUNISIA


Medierda: Crop Production Without and With the Subpro1ect

Itell Without Subprolect With Sub ro1ect

Area Year O Year 6 Year 13 irea Year 6 Year 13

FruitOlives (Table) 100 100 200 200 350 825 1,400

Olives (Oil) 1,100 (D) 1,650 1,650 1,650 1,000 (D) 1,500 1,500

Pears 230 920 1"100 1,300 400 2,800 2,800

Peaches 360 1,620 1,850 2,100 800 7,600 8,000

Pos,egranates 950 3,800 4,750 5,250 1,050 8,400 8,400

Citrus 350 5,250 5,250 5,250 350 8,750 8,750

Grapes (Wise) 450 (D) 900 900 900 300 (D) 900 900

Grapes (Table) 50 250 250 250 600 4,800 4,800

Pistachios 0 - - - 200 20 - 80

YToug Orchards 1,410 - - - 550 - -

Total 3.450 + 1.550 (D) 4,300 + 1.300 (D)

VegetablesArtichokes 2,000 12,000 14,000 14,000 2,050 20,500 20,500

Tomatoes 1,500 25,500 31,350 31,350 1,800 50,400 50,400

Peppers 400 2,800 3,200 3,200 400 4,000 4,000

Cucurbits 1,000 10,000 12,000 12,000 1,000 15,000 15,000

Peas 700 2,100 2,800 2,800 850 5,100 5,100

Broad Beans 800 2,400 2,400 2,400 800 2,400 3,000

Potatoes 250 2,750 3,250 3,250 250 4,250 4,250

Total 6_650 7_150

ForageVetch/Oats 1,750 (D) 28,000 28,000 28,000 1,550 (D) 37,200 37,200

Alfalfa 750 33,750 33,750 33,750 750 52,500 52,500

Bersees 1,000 + 400 (D) 52,000 56,500 56,500 1,000 60,000 60,000

Green Barley 200 + 200 (D) 4,000 5,200 5,200 500 9,000 9,000

Hybrid Sorghwa - - - - 900 90,000 90,000

Rye Grass - - - - 650 22,750 22,750

Total 1.950 + 2.350 (D) 3.800 + 1,500 (D)

CerealsW.heat (Hard) 0 + 2,200 (D) 2,200 2,550 2,550 1,300 + 1,000 (D) 6,700 6,700

luheat (Soft) 0 + 250 (D) 300 300 300 400 1,800 1,800

Barley (Dry) 1,000 (D) 1,000 1,500 1,200 500 (D) 750 750

Total 0 + 3,450 (D) 1,700 + 1,500

YTar 7

Milk 6_310 9,345 9,345 16,380 16,380

Meat/2 826 1,685 1,685 3,194 3,194Calves ------------------------------------------- lv-weight t---------------------------------------------

50 83 83 192 192----------------------- _---------------------- --- umber ----------------------------------------------

Cows 275 582 582 1,200 1,200------------------------------------------- liveweight ton -------------------------------

165 287 287 720 720

/1 Figures represent areas under irrigated crops, except (D) = indicates aroas onde- dry oreps.

/2 With subproject , additional locally bred cattle sold between project years 2-6 = 530, with tctal liveveight nf 200 ton.

Source: Based os FAO/IBRD Preparation Report sud OMVVM data.

December 1974

ANNEX 7Table 5

TUNISIA

IRRIGATION RE'dABILITATION PROJECT

Medljerda: fDevelopment «f Cattle Herd Without pd With the Subproject

Situation Year

o 1 2 3 4 E 6 7

----------------------------------- number---------------------------------------------

Without the SubprojectSelected Cows 2,750 3,017 3,311 3,634 3,989 4,321 4,341 4,300

Mortality (6p) -165 -181 -199 -218 -239 -259 -260 -258

Sold (10-15a%) -275 -302 -331 -363 -399 -648 -581 -542

Balance 2,310 2,534 2,781 3,053 3,351 3,414 3,500 3,500

Calves (655%) 1,788 1,961 2,152 2,362 2,593 2,808 2,821 2,795M4ortality (12%) -215 -235 -258 -283 -311 -337 -339 -335

Balance 1,573 1,726 1,894 2,079 2,282 2,471 2,482 2,460

Bull calves sold -786 -863 -947 -1,039 -1,141 -1,235 -1,241 -1,230

Balance (heifers) 787 863 947 1,040 1,141 1,236 1,241 1,230Mortality (5%) -40 -43 -47 -52 -57 -62 -62 -60

Sold (5-30%) -40 43 -47 -52 -114 -247 -379 -370

Balance (heifers) 707 777 853 936 970 927 800 800

Total Cows and Heifers 3017 3,11 3,634 3^989 4,321 4.341 4_300 4.300

Locally bred Cows 500 500 500 500 500 500 500 500

Mortality (8%) -4Sotl ity -40 -40 -40 -40 -40 -40 -40 -40

BaSlance 420 420 420 420 420 420 420 420

Calves (40%) 200 200 200 200 200 200 200 200

Mortality (15%) 130 - - - - - - -

Balance 17 -85 - -85 -85 -85 -85 -3

Bull calves sold -85 -8 -8 -8 -8 -8 -8 -8

Balance (heLfers) as

BortaLity (5%) 80 80 80 80 80 80 80 80

Toa osad s500 500 500 500 500 500 500 500Total Cows and Heifers-,___

With the SubprojectSele ted Co 2,750 3,017 3,311 3,818 4,558 5,262 5,719 6,000

Morlali ty -165 -181 -166 -191 -182 -158 -114 -120

Sold (10-20,t) -275 -302 -364 -458 -684 -947 -1,144 -1,200Balance 2,310 2,534 2,781 3,169 3,692 4,157 4,461 4,680

Calves 12 1,788 1,961 2,218 2,672 3,418 4,104 4,575 4,800

Bought - - 200 400 300 - - -

Mortality L/ -215 -235 -242 -246 - -260 -246 -229 - -240

Balance 1,573 1,726 2,176 2,826 3,458 3,858 4,346 4,560

Bull calves sold -786 -863 -998 -- 1,229 -- 1,589 -1,929 -2,173 -- 2,280

Balance (heifers) 787 863 1,178 1,598 1,869 1,929 2,173 2,280

Mortality /4 -40 -43 -59 -64 - -75 -58 -44 -46

Sold (5-40%) -40 -43 -82 -144 - -224 -309 -590 -914

Balance (heifers) 707 777 1037 1,389 1.570 1 562 1,539 1,320

Total Cows and Heifers 3_017 3_311 3 818 4_558 5.262 5719 6,000 6,000

Locally bred Cows 500 500 500 400 300 200 100 -

Mortality (8%) -40 -40 -40 -30 -20 -12 -5

Sold -40 -40 -140 -150 - -140 -134 -95 -

Balance 420 420 320 220 140 54 -

Calves (40%) 200 200 200 200 150 110 60 -

Mortality (15%) -30 -30 -30 -30 -20 -12 -5 -

Balance 170 170 170 170 130 98 55 -

Bull calves sold -85 -85 -85 -85 - -65 -49 -55 -

Balance (heifers) 85 85 85 85 65 49 -

Mortality (5%) -5 -5 -5 -5 - -5 -3

Balance (heifers) 80 80 80 80 60 46

Total Cows and Heifers 500 500 400 300 200 100

/1 Mortality of cows decreasing gradually from 6% to 2%.

L2 Calving increasing gradually from 65% to 80%.3 Mortality of calves decreasing gradually from 12% to 5%.

M Mortalit- of heifers decreasing gradually from 5% to 2%.

Source: Based on FAO/IBRD Preparation Report.

December 1974

TUNISIA

IRRIGATION REI}ABILITATION PROJECT

Medjerda: Milk Production Without and With the Subproject

Situation and YearType of Cattle Unit 0 1 2 3 4 5 6 7

Wlthout the Subproject

Selected Cows Number 2,310 2,534 2,781 3,053 3,351 3,414 3,500 3,500l/head/year 2,550 2,550 2,550 2,550 2,550 2,550 2,550 2,550

ton/year 5,890 6,462 7,092 7,785 8,545 8,706 8,925 8,925

Locally bred Cows Number 420 420 420 420 420 420 420 420l/head/year 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

ton/year 420 420 420 420 420 420 420 420

Total 6,310 6,882 7,512 8,205 8,965 9,126 9,345 9,345

e&th the Subproject

Selected Cows Number 2,310 2,534 2,781 3,169 3,692 4,157 4,461 4,6801/head/year 2,550 2,700 2,850 3,000 3,150 3,300 3,400 3,500

ton/year 5,890 6,842 7,926 9,507 11,630 13,718 15,167 16,380

Locally bred Cows Number 420 420 320 220 140 54 - -

1lhead/year 1,000 1,000 1,000 1,000 1,000 1,000 _ _ton/year 420 420 320 220 140 54 - -

Total 6,310 7,262 8,246 9,727 11,770 13,772 15,167 16,380

Increased ProductionWith the Subproject ton/year - 380 734 1,522 2,805 4,646 5,822 7,035

Source: Based on FAO/IBRD Preparation Report,

December 1974

TUNISIA

IRRIGATION RERABILITATION PROJECT

Nebhansa Crop Production Without and With the Subprolect

Without the Subprolect With the Subprolect

Crop Year 0 -Ygr 3 Year 6 Year 9 Year 12+Off-

Season Season Total Production Winter Sumer Total Production Winter Sumer Total Production Production Production------------ ha ----------- ton ------------ ha ----------- ton ------------ ha ---------- ton ton ton

FruitsApricots - 220 - 220 440 1,320 2,640Citrus - Clumentines - - - - - 45 _ 45 135 405 810

- Oranges (Maltese) - - - - _ _ 135 - 135 675 2,025 4,050Olives - - 200 400 - - 160 360 160 400 480 560

Subtotal - - 200 - - 560 560

VegetableaCueurbits 320 170 490 5,880 170 320 490 6,860 - 245 245 3,920 3,920 3,920Peppers 285 50 335 2,680 200 170 370 3,330 245 125 370 3,700 3,700 3,700Potatoea 30 200 230 2,530 245 - 245 2,695 245 - 245 2,940 2,940 2,940Tonstoas 165 55 220 4,400 200 170 370 9,250 500 - 500 15,000 15,000 15,000Green Bemis 80 - 80 240 125 - 125 440 245 - 245 980 980 980Groundnuts - - - - - 125 125 190 - 370 370 925 925 925Winter Vegetables and Misc. 35 - 35 280 245 - 245 2,450 245 - 245 2,940 2,940 2,940Subtotal 915 475 1,390 1,185 785 1,970 1,480 740 2,220

Cropping Intensity 1,390/1,480 = 94% 1,970/1,480 = 133% 2,220/1,480 = 150'(

Fallow 450

Total 2,040 2,530 2,780

Cropping Intenaity 1,590/2,040 = 78% 2,530/2,040 = 12411 2,780/2,040 = 136%

Source- Based on FAO/IbRD Preparation Report.

December 1974;

ANNEX 8Page i

TUNISIA


Marketing

A. Present Situation

Introduction

1. Vegetable and fruit production is mainly for domestic consumption.Exports are important for certain commodities, such as artichokes, citrus andapricots. Produce processing is gaining in importance, especially for tomatoes.In general, marketing is carried out by a traditional, established, privatetrade sector. In Nebhana, however, part of the marketing function is beingperformed by the Cooperative of Teboulba and the Central Cooperative forFruits and Vegetables "Nebhana" (CCN).

Local Market

2. Fruit and vegetable production from Medjerda and Nebhana for localconsumption is being directed toward the wholesale market in Tunis, which iscongested and has no possibilities for expansion. An increasing amount isbeing sold to private and cooperative processing plants. Also, a sizeableportion of the coastal vegetable production in Nebhana is being sold on thewholesale market of Sousse. The latter is well laid out, functional, andlarge enough for expansion. Private traders, producers, or cooperatives(rarely and only in Nebhana) assemble and transport produce to Tunis, process-ing plants, and Sousse.

External Markets

3. Many studies and prospecting missions have looked into potentialexternal markets and have reported promising possibilities for Tunisian pro-duce. However, the production sector has failed to respond. The main reasonis lack of an efficient marketing organization to inform farmers of exportopportunities, consumer demands, and prices. Only through such an organizationwould farmers become interested in growing sufficient quantities of new varietiesof acceptable grade and quality so that a position could be established andcontinuity ensured in external markets.

4. Exports from the project area are limited to artichokes (30% of theproduction in Medjerda, either fresh or canned) and early season vegetables(mainly tomatoes from Teboulba). Private exporters in Tunis handle most pro-duce. During 1971-72, CCN tried export to France of tomatoes, peas, artichokes,and apricots, but lack of means and facilities for efficient direct export,such as conditioning stations, restrained development.

ANNEX 8Page 2

Produce Processing

5. Twenty-three plants, mainly located in and near Tunis, annuallyprocess more than 100,000 ton of fruits and vegetables. The following tableshows the importance of Tunis as a processing center in 1971:

Produce Processed Share of ProduceProduce in Tunis Processed in Country

X %

Tomatoes 81.0 50Peppers 10.4 8Artichokes 3.7 40Apricots 3.7 n.a.Others 1.2 n.a.

Total 100.0

6. Development of Tunisia's tomato processing industry began whenimports stopped of French and Italian processed tomatoes. Processing capacityis estimated at 240,000 ton, of which 150,000 ton or 64% is in the Tunisregion. Only 45% of the tomato processing capacity was used in 1972. Smallquantities of processed tomato paste are exported, mainly because the farmgateprice of tomatoes would have to be reduced more than 20% (from D 0.018/kg toD 0.014/kg) for the paste to become internationally competitive. Alternatively,the processing price would have to be reduced, but this seems unlikely assome expensive raw materials are imported and water and electricity costs arehigh. Producers estimate that tomato processing coets are between 20% and50% higher in Tunis than in Europe.

7. The only processing plants in Nebhana are two sardine processingplants in Sousse and three apricot processing plants in Mahdia. Theircapacity is insufficient to handle large quantities, and apricots must beshipped to processing plants in Tunis and Cap Bon.

Marketing Organization

8. The prevailing private marketing system places small producers ofvegetables and fruits at a distinct disadvantage because of sharp price fluc-tuations, lack of standardization, and the perishable nature of these com-modities. From 1961-69, the State introduced a system of service cooperativeswhich among other things were to replace the private marketing organization.This system failed, along with the effort to totally collectivize the agri-culture sector.

9. In the wake of this situation, the Office for the Development of theLower Medjerda Valley, Central Cooperative of Agricultural Mechanization,Cereals Office, and other Government agencies now provide part of the inputs

ANNEX 8Page 3

or services formerly provided by the service cooperatives, while using someremaining Rural Center facilities (office space, housing, and storage). Mostfacilities, however, are in disrepair or inoperative.

10. In Nebhana, two types of cooperatives function: local cooperativesand CCN. By far the oldest and most important, the local cooperative ofTeboulba was created in 1948. It numbers about 800 members and has its ownfield boxes, transport, short-term storage facilities, and vending stalls forfruits and vegetables at the Tunis and Sousse wholesale markets. CCN wasfounded in 1971 to improve and organize the marketing of fruits and vegetables,first at the regional level for the Nebhana area and second at the nationallevel for all Tunisia. CCN's Director is also Director of the Teboulba Co-operative. CCN is run like a private company and is commercially sound. Ithas four local distribution centers in the subproject area serving 341 members.

11. To facilitate export marketing, in particular, several nationalservices exist. These are the various trade associations: Trade Associationsfor Citrus and Fruit (GIAF), Trade Association for Food Processing (GICA), andTrade Association for Vegetables (GIL). These associations are not directlyactive in the project area, but they could provide definite benefits to theproject in promoting local produce to foreign importers. GIAF, founded in1972, is active in all aspects of export marketing, market research, andmarket news. But its activities have been limited to apricots and citrus.GICA, established in 1967, has similar functions for fruit and vegetableprocessing. Its impact on modernization of the industry is, however, not asgreat as that of GIAF as it is more concerned with policy matters than withtechnical assistance. GIL, only very recently formed, intends to controlprices of vegetables in the wholesale market by manipulating stocks for saleor storage.

12. Three possible markets exist for the increased production resultingfrom the project: domestic, export, and processing industry.

B. Situation at Full Development

Local Market

13. The local market for fresh produce is increasingly attracting newproducers in response to the high growth of urbanization and tourism as wellas the rapid increase of personal income of consumers. Adequate market facili-ties are essential. Initially, requirements would be relatively elementaryand unsophisticated, amounting to little more than improvements in collection,transportation, warehousing, and conditioning. Certain improvements arealready occurring through the private cooperative of Teboulba and CCN. Bystrengthening cooperatives and notably CCN, as proposed under the project,a start is intended on organizing, coordinating, and streamlining commercialmarketing from the producer to the consumer.

ANNEX 8Page 4

External Markets

14. As export opportunities to neighboring countries are practicallynon-existent, Tunisia has to depend largely on exports to Western Europe.Demand in Western Europe for foreign fruits and vegetables has noticeablyslowed down, mostly because of keen competition from producers all over theMediterranean, Middle East, and Western and Eastern Africa. But Tunisiacould well increase its share in the market of exotic and off-season fruitsand vegetables if sufficient quantities of good and even quality of desirablevarieties were made available at low prices. Tunisia has a price advantageover its competitors through its location and transport situation, which pro-vides for fast roll-on roll-off ferry services to three Southern Europeanports with ready access to the major markets.

15. For Tunisia to gain a foothold in the export market for exotic andoff-season fruits and vegetables, export organizations at the national levelwould have to be strengthened and opportunities for foreign importers toactively participate in production would have to be provided. This could beeffected in various ways, from merely signing contracts with local growers toestablishing demonstration plots in the fruit and vegetable area. Among themany advantages of such an arrangement, foreign importers would know exactmarket requirements in their countries and could make changes when needed aswell as provide technical assistance in choice of varieties, conditioning,timing, etc.

16. A recent study carried out by consultants looked into Tunisia'scompetitive position in the European markets for vegetables. The study pro-vides useful data about certain European markets and valuable insights intothe problems that have constrained Tunisia from capturing a greater share ofthese markets. However, the study is mostly descriptive, deals only withselected fresh vegetables, and does not contain specific recommendations tobreak down the barriers to an increase in exports. For this study to pay off,a follow-up is needed that (i) deals with fresh fruits and processed fruitsand vegetables, (ii) quantifies Tunisia's potential market share, under var-ious assumptions about producer prices in Tunisia and its major competitors,and (iii) formulates specific and action-oriented recommendations, first inthe areas of organizing production of export crops, their collection, condi-tioning and processing, and second in working out details for an effectivecentralized export marketing organization. This follow-up study is not essen-tial to assure markets for the additional output produced by the project, butis important for the longer-run market prospects of planned national production.

Produce Processing

17. The produce processing industry will be an important market forMedjerda's full-season tomatoes and, to a lesser extent, artichokes. Becauseof its scope for achieving economies of scale in supply, production, andsales, this industry has a large unutilized import potential. While the pro-cessing industry is active in the Tunis region serving Medjerda, it is oflimited importance in Nebhana. For this reason, but also because of itsclimatic advantage for producing early and late varieties, the proposedcropping pattern for Nebhana emphasizes growing of off-season vegetablesand fruit to be sent fresh to local and foreign markets.

ANNEX 8Page 5

Outlets for Individual Products

18. Tomatoes. Based on projections included in the 1973-76 DevelopmentPlan, local consumption of fresh tomatoes would increase from 145,000 ton in1972 to 200,000 ton by 1978 (2.2% annual growth rate of population and 3.8%per capita annual increase in consumption). Tomato production in the LowerMedjerda Valley now represents about 15% of domestic demand; assuming thesame or higher percentage would apply in 1980, at least 30,000 ton could besold then.

19. The share of production from the subproject area to be processedwould increase from 50% (12,000 ton) to 70% (23,000 ton), or 15% of the existingprocessing capacity in Tunis and Bejaoua. The market outlet for tomatoes fromMedjerda would be at least 53,000 ton, while projections are for 50,400 ton.Local market demand for tomatoes harvested in Nebhana between November andJune is about 6,000 ton. At full development, exportable surpluses of about10,000 ton would be available.

20. The French market for tomatoes during December-May is steady ataround 120,000 ton, while the entire European off-season market for tomatoesis as much as 300,000 ton. Export potential of tomatoes would be good ifproper varieties were grown.

21. Artichokes. Production from the Lower Medjerda Valley representsthe majority of the country's 12,500 ton output, of which 4,000 ton, or 35%,is exported. According to projections, production should double within thenext 3-5 years to meet increasing local and possible external demand forboth processed and fresh artichokes. Production from Medjerda would be des-tined as follows:

1978 1983-ton ---

Local market 9,500 11,000External markets 6,500 9,000

Total 16 000 20 000

22. Peppers. Next to tomatoes, peppers are the most popular vegetablein Tunisia. The very small quantities offered on the local market bring highprices, especially off-season. Peppers will be exported only after wholesaleprices have been reduced as a result of increased local supplies. In view ofimproved production methods in Medjerda and Nebhana, this goal should eventu-ally be achieved. At full development, about 2,000 ton will be available forexport. France will be a ready market for both sweet and pungent peppers.

23. Cucurbits and Melons. Output from Medjerda is abQut 9% of the107,000 ton production. Local demand is expected to reach about 150,000 tonby 1976, so project projections of 15,000 ton at full development are veryconservative. When the Nebhana production reaches the market in May/June,export market prices in France are already past their off-season peak andcompetition is growing. Export at rewarding prices will be difficult in June.

ANNEX 8Page 6

Eventually, however, a quarter of production (especially of early cantaloupes)can be sold in France during May. The local market will, most likely, con-tinue to offer a satisfactory outlet for a large variety of cucurbitaceousvegetables.

24. Other Vegetables. Local demand for broad beans is very good andthe present small production from the Lower Medjerda Valley is sold at veryhigh prices (up to D 80/ton). The projected increase in production of 2,400ton in year 6 is very small, however, compared with the present productionand the planned increase in local consumption. Practically no local marketexists for green beans, so almost all Nebhana production will be exported.France is the best European market for thin stringless beans of high quality.

25. Vegetables such as potatoes, cabbages, cauliflower, and the like arenot suitable for export and are only destined for local markets, with theexception of early potatoes. All face increasing local demand due to highrates of urbanization and income growth.

26. Groundnuts. Groundnut production for direct consumption startedonly recently in Tunisia when imports were stopped. A few hundred hectaresare being cultivated regularly in the Cap Bon area. Demand depends partly onthe almond harvest as the local pastry industry may substitute groundnuts foralmonds. The local market is for about 1,000-2,000 ton, while estimatedproduction in Nebhana would be less than 1,000 ton at full development.

27. Pistachios. A new and welcome introduction to edible nuts, the 80ton of pistachios to be produced would find a ready market in the major cities.

28. Fruits. Planting of peaches, pears, and apples in the Lower MedjerdaValley has recently increased significantly. But this trend is not expectedto continue indefinitely. With the maturing of existing orchards and relativelymodest additional plantings, peach, pear, and apple production at full develop-ment is estimated to increase from the present 2,300 ton to about 11,000 ton.Based on projections, increased local demand would reach 15,000 ton in lessthan 3 years.

29. Peaches command relatively high prices in the local fresh marketand processing industry. Pomegranates also have become extremely popular,with a ready local market. Increased production of table olives would beeasily absorbed by the local fresh market and processing industry, both ofwhich now take 7,000 ton annually. Table grapes are gaining in popularityon the local market, and the relatively small subproject output of 4,800 tonat full development would not make a significant impact. Muscat varieties,harvested in June, are among the earliest in the Mediterranean area, andcould also be successfully exported.

30. Despite growing supplies of citrus fruit on European markets, mar-keting difficulties are not expected. Tunisian Maltese oranges are much ap-preciated on export markets and have regularly performed better than othermid-season sanguine oranges. Production in the Cap Bon area is declining.

ANNEX 8Page 7

Maltese oranges are scarce, both in Tunisia and abroad, and Nebhana productionwill benefit from this situation. Tunisian clementines are less appreciatedin export markets, but the local fresh market is expanding and rewarding.

31. The quantity of early apricots to be marketed at full developmentin Nebhana exceeds the present European market volume during the harvestingperiod. The local Tunisian market will grow, but will remain unable to absorbmore than a small fraction of production. The European market during May isnot fully exploited, and no serious competitor exists for Tunisia. Under theguidance of GIAF, the Tunisian export sector has succeeded in expanding exportsof early apricots substantially during recent years, and as much as 10,000 tonfrom Nebhana could be placed abroad (production at full development is esti-mated at only 2,600 ton). This presupposes that efforts are continued to di-versify markets and extend air shipments. Present prices fluctuate consider-ably with quality and timing of shipments.

32. Cereals. Increased wheat and barley production in Medjerda, from3,700 ton to about 9,000 ton, would still be less than 1% of national produc-tion, and be largely consumed by farmers themselves.

33. Forage. Despite large increases in production, from 118,000-180,000ton, all forage output would be barely sufficient to provide adequate feedto the increased cattle herd in Medjerda. Thus no marketing difficulties areforeseen for this commodity.

34. Milk and Meat. Local milk presently supplies 40% of the productionof the Tunisian Company of Milk Industries. The remainder is reconstitutedmilk from imported milk powder (about 100,000 1/day of fresh milk equivalent).At present, room exists for an additional 36,000 ton of local milk producedannually. Additional production from the Medjerda subproject would be about10,000 ton at full development. Additional meat production from Medjerdawould be about 700 ton (liveweight) at full development. Based on projections,meat imports would increase from 3,000 ton in 1973 to 10,000 ton in 1976. Theadditional production would thus cause a welcome reduction of such imports.

Marketing Assistance Under the Project

35. The project provides for an expansion of marketing facilities,strengthening of the marketing organization, and prospecting of market outletsto assure marketing of Nebhana production in the best circumstances. Marketingfacilities to be provided include field boxes, field collection centers, con-ditioning station, offices, and vehicles (Annex 11). The existing marketingorganization will be strengthened through the recruitment of a marketing andcooperatives specialist and the formulation by OMIVAN of a plan of action,acceptable to the Bank, providing for the strengthening of marketing servicesincluding those of CCN. Finally, operational assistance in prospecting marketsfor Nebhana fruits and vegetables will be provided by two short-term special-ists; one specialist in foreign markets, and one specialist in domestic markets,including the processing industry (Annex 12).

ANNEX 8Page 8

Conclusion

36. No serious market constraints appear to exist for the additional

production generated by the project, provided full use is made of the facili-ties and specialists' services financed under the project.

December 1974

ANNEX 9

TUNISIA


Agricultural Credit

A. Introduction

1. Several groups of institutions are involved in agricultural credit.The first group includes the National Bank of Tunisia (BNT) and the MutualCredit Societies (CLCM) controlled by BNT, which are the only lending insti-tutions specializing in agricultural credit. The second includes severalspecial Goverument funds which are channeled through BNT. The most importantis the Special Fund for Agricultural Development (FOSDA). Others are ear-marked for specific purposes. The third includes numerous other agencieswhich have a primary responsibility for production or marketing but also havea role in credit distribution. These agencies include the Office for theDevelopment of the Lower Medjerda Valley (OMVVM), the Office for the Develop-ment of Nebhana (OMIVAN), Cereals Office, Livestock Office, Bureau of StateLand Management, and others.

BNT

2. BNT, 1/ the most important institution providing agricultural credit,was created in 1959 to replace an array of institutions reflecting the dualstructure of pre-independence agriculture. It makes short-, medium-, andlong-terms loans in the agricultural and commercial sectors, carries out alltypes of banking and financial operations, and participates in industrialenterprises through direct equity participation. Its lending conditions foragricultural credit are as follows: short-term loans for 9 months at 6% annualinterest; medium- and long-term loans on its own resources at 6% annual in-terest, for varying durations; medium- and long-term loans on special fundsranging in interest rate from 3.5% (FOSDA) to 8% (Bank/Association). Appendix1 shows details about this and other key information on BNT.

3. The Government intended BNT to be a driving force in agriculturaldevelopment. But BNT's legal status as a corporation, statutory objectives,and mixed public-private composition of shareholders soon forced its agri-cultural lending to be restricted to highly creditworthy medium- and large-scale farmers and to cooperative farms, the latter benefiting from a Govern-ment guarantee. Further, since most of BNT's resources come from demand de-posits and rediscount facilities with the Central Bank, BNT has been dealing

1/ Called National Agricultural Bank (BNA) prior to 1969.

ANNEX 9Page 2

mainly in short-term credit. When BNT deals in medium- and long-term credit,loan applications must be approved by the technical services of the Ministryof Agriculture and then BNT draws on and distributes funds from FOSDA andother special Government funds.

4. The volume of BNT's agricultural lending, by type and sector (Table 1),clearly shows that the great importance the Government accorded to the coopera-tive sector during 1964-69. The 1969 reorientation of public policy towardthe private sector resulted in increased public funds for loans and subsidiesto private farmers. More readily available medium- and long-term loans fromFOSDA (supplemented by funds from the United States Agency for InternationalDevelopment and the Bank/Association), channeled through BNT, have resultedin increased borrowing by large- and medium-scale farmers.

5. Several conditions attached to FOSDA credit (Table 2), however,constitute obstacles to its widespread acceptance, particularly among smallfarmers. First, large downpayments are required, especially for fruit treeplantations (up to 45%). Second, valid land titles are absent in Medjerdaand most of Nebhana. Finally, the maximum loan that may be requested islegally fixed at an amount which is too low in relation to the considerableincreases in prices of livestock, machinery, and local construction.

6. In 1973, the Government decided to redirect FOSDA lending from largeto small farmers. Among other things, this led to OMVVM and OMIVAN solicitingloan applications and channeling them to BNT. In the subproject areas, notablyMedjerda, smali farmers have been able to obtain loans from FOSDA for livestockbut not for land improvement works unless they hold valid titles (Table 3).

CLoe

7. The Government established the first CLCM in the Cap Bon region in1963 as the main source of institutional credit for small farmers. Gradually,other CLCM9 were established. Serious financial difficulties through poormanagerial and accounting practices beset the CLCMs by 1965 and they came underthe control of BNT, which restricted activity to short-term loans up to D 500(US$1,150) for production of certain crops. By 1971, the number of CLcMs was45, with a total membership of 78,000. Lending conditions are similar tothose of BNT: a 9-month term at 6% interest, which is deducted in advance.In addition, borrowers must be shareholders and pay a capital contribution of1% of the loan amount.

8. After the CLCMs merged with BNT, overall performance remained poor,largely due to reasons beyond their control. As a result of the Government'sfarm cooperative policy, CLCMs suffered substantial losses from insolventproduction cooperatives and from defaults by farmers who were obliged to joina production cooperative. These difficulties were compounded by a three-yeardrought resulting in massive delays in payments and defaults on loans. Finally,in 1969-70 most production cooperatives were dissolved, causing a large numberof defaults.

ANNEX 9Page 3

9. CLCMs now are heavily indebted to BNT, and various proposals arebeing considered for reorganization and stabilization. Table 4 providesadditional historical perspective. In Medjerda and Nebhana, the CLCMS' roleis rather limited due to their low activity and the 1970 creation of a specialcredit line for small irrigation farmers.

OMVVM and OMIVAN

10. Since 1970, OMVVM has run a seasonal credit program. This programprovides interest-free credit-in-kind for small irrigation farmers (generallysix ha or less) in public irrigation areas. Extension agents determineseasonal needs of individual farmers for seeds, fertilizers, chemicals, othermaterial inputs, and tractor services on the basis of the planned croppingpattern. They also complete loan applications for the farmers.

11. The loan applications are submitted for approval to a local technicalcommission, and the national technical and credit commissions. Then inputsare centrally ordered and delivered to local distribution centers where farmerscan obtain then. Upon taking delivery, farmers pay 10% down and sign a note,payable at harvest tLme, for the remaining 90%. Depending on local conditions,OMVM, the Cereals Office, the Central Cooperative for Seeds and SelectedPlant Materials, or local farmer cooperatives distribute inputs. OMVVM andthe Central Cooperative for Agricultural Mechanization provide tractor services.

12. The lending volume varies considerably depending on how many exten-sion agents are deployed to encourage farmers to submit loan applications.Since the program began, loans have increased to farmers in Medjerda andNebhana, with a substantial increase in 1973-74 (Table 5) reflecting thepresent Governnent determination to reach all qualifying farmers. Despitethis impressive growth, the program has significant shortcomings. Timelydelivery and appropriate use of inputs has not been assured due to a lack ofsupervision. Also, timing and quality of tractor services has sometimesbeen a problem. Most important, beneficiaries commonly believe that the in-puts and services are Goverrnment gifts. Consequently, repayment performancesare poor and likely to vorsen as the scale of the program increases.

13. In Medjerda, recovery percentages reported were 21% in July 1971-April 1973 and less than 10% in 1972-73. In Nebhana, recovery percentagesreported were 47% for 1971-72 and 45% for 1972-73; for the latter period, abreakdown by 10 irrigation sections ranged from 10% to 93%. So far, annualbudget appropriations have supported. this program. However, since the Govern-ment announced that the program was temporary, it can hardly be expected tomaintain annual support of these inefficient operations on the present scaleduring the life of the project.

ANNEX 9Page 4

B. The Proposed Credit Component

14. To meet the credit requirements of farmers in Medjerda and Nebhana,the flow of long-, medium-, and short-term credit must be increased. Thisrequires additional credit funds as well as institutional and policy changes.

Long- and Medium-Term Credit

15. To overcome the present shortage of credit the project wlll providefor D 1,452,000 (US$3.3 million) in medium- and long-term credit. Of thisD 383,000 (US$0.9 million) is needed for orchards in Medjerda, D 125,000(US$0.28 million) for orchards in Nebhana, D 209,000 (US$0.48 million) forstables and D 438,000 (US$1 million) for fanm houses in Medjerda, D 107,000(US$0.25 million) for stilling and storage basins and sprinkler equipment onNebhana fanms, and D 190,000 (US$0.44 million) for marketing support facili-ties to Nebhana cooperatives. The Bank loan will finance the estimated for-eign exchange cost of these investments.

Short-Term Credit

16. Incremental requirements of farmers in Medjerda and Nebhana forshort-ternm credit will be about D 700,000 (US$1.6 million) and D 300,000(US$0.7 million), respectively, as shown on Page 6. This represents a 130%increase over present short-term credit needs. In view of the inadequacy anduncertain future of the existing highly subsidized program of credit-in-kind,a new short-term credit scheme will be established in the project area and theexisting interest-free seasonal credit program will be discontinued followingimplementations of the agreement between the Government and BNT. The Bankloan will provide for the foreign exchange component (estimated at 33%) of theincremental credit needs (D 330,000 or US$759,O03).

17. Credit funds under the project will be exclusively available to theprincipal project beneficiaries--the 1,230 settlers and 600 samall privatefarmers in Medjerda and the 2,000 farmers in Nebhana. The Government hasconfirmed that the contract for sale given to Medjerda settlers encompassesa provisional land title, that provisional titles will be issued to all otherfarmers, and that this provision-il title has legal standing as collateral forcredit from BNT.

Agricultural Credit Policy Review

18. It vas agreed during loan negotiations to defer disbursements onsubloans to project farmers and marketin& cooperatives until the conclusionof an agricultural credit policy study. The study will encompass a critical,review of the conditions presently governing agricultural credit in Tunisiataking into account Tunisian credit conditions in general, the structure ofthe institutions concerned, agricultural income of farmers, and priorities andobjectives of production by crop or groups of crops. It will further propose

ANNEX 9Page 5

on-lending arrangements (including risk coverage) for the project, the agri-cultural credit agency chosen for the project, the latter's staffing require-ments for project purposes, and the terms and conditions for subloans to proj-ect farmers and marketing cooperatives. An agreement acceptable to the Bankviwl be concluded between the Government and BNT; this agreement will containthe conditions of on-lending of IBRD funds to BNT, the terms of subloans tobe financed in part from Bank funds, and the credit institution's staffingrequirements for project purposes. Should the agreement not be concluded byFebruary 1, 1976, the Bank would have the right to cancel the credit componentof the loan. Pending conclusion of the agreement, the Government will financethe credit component of the project entirely from its own resources.

19. The Government will designate representatives of the Ministries ofAgriculture, Finance and Planning, of the Central Bank and of BNT, who willform a commission responsible for the study. The study will be completed andpresented to the Council of Ministers on October 31, 1975, at the latest, inorder that its decisions may be taken in the end of November 1975. The Bankvill be kept informed of all stages in the advancement of the study.

20. In the interim, the Government will ensure full funding of theproject's credit component.

December 1974

TUNISIA

IRRIGATION REABEIIJTATIONi PROJECT

Working Capital Requirenents

- ~~~~~~~~~~/3Year Working Capital Requirement Inc,remental Workip£ Capital Requiremert

Med.jerda!- Nebhana-2 Medjerda Nebhara------ D thousand -------------------- _____

° 521 251 -1 111 52 23C! n13 385 355 1341 516 1825 599 2286 1,208 522 687 2717 690 2778 691 286o 5147 693 292

10 6914 298V . 695 30112 -- 696 301413+ 1,218 555 697 3014

/1 Estimated at 44% of production cost before the projeet and at 41% of production eostwith the project at full development.

/2 Estimated at 58% of production cost before the project and at 73% of production costwith the proJect at full development.

/3 Interpolated on the basis of expected rate of devélopme't of gross value of productionwith the project.

Source: IBRD Mission

December 1974

ANNEX 9Appendix 1Page 1

TUNISIA


BNT - Basic Information

Status: Co mmrcial Bank, mainby Government-owned.

Authorized capital D 2.0 million

Paid-in capital D 1.6 million

Distribution %Tuni.sian Government 25.0Government-oontrolled cooperatives and

corporations 35.7CLCMS 23.7Private ¶vrisian shareholders 15.6

Total 100.0

General OrganizationHead Office TunisAgencies Tunis - 2

Other cities - 22

Board: 9 Directors serving 6 years(Chairman i8 chief executive)

Staff: December 31, 1971 - 601

About 55% at headquarters and 45%at field oftices and CLCMs, inwhich personnel is seconded.

Resources: December 311971 1972----D thousand---

Equity funds (including provisions) 6,510 7,162Government 3, 345 3,149SDecial resources and long term resources 21,988 22,826Deposits (sight) 27,086 33,065Bonds and term deposits 5,308 6,304Banks 5,625 8,373Miscellaneous u1,445 14,496

Total 81,307 95,375

ANNEX 9Appendix 1Page 2

1971 1972Application of Funds: '--D thousand----Discounted loans -1?,-268 20,873Overdrafts 19,258 23,315Loan on special funds 17,151 19,889Government 3,345 3,149

Total 57,022 67 226-

Balance in cash and banks'accountsreceivable, fixed assets,and other assets.

Profits DividendsProfits and Dividends: ---- D thousand------

1967 302 51968 346. 51969 359 51970 379 71971 437 81972 510 -

Interest Rates:Loans on own resourcesRates on loans 6% annuallyOverdrawn current accounts 7% annuallyDelinquent balance 2% annual additional penalty

Loans on special fundsDifferent according to funds 3 ' to h½% annually from

October 1971 (iormerly % to 6%annually)

Loans from USAID 7% annualllyLoans from IBRD 8%-annually;

Terrms:Loans on ovmn resources Practically all short term.Other According to funds and

purposes (varies from 3 to15 years).

Banz Rate:5% annually. Rediscount rate for 1NT agricultural operations: 4%-annually.

Rates on Deposits:1% (sight) to -cs (term) annually

Source: BNTP

Dbcember 1971

TUNISIA


BNTts Agricultural Lending Operations, 1960-73

Landing 1960 1961 1962 1963 1964 1965 1966 1967 19(8 1969 1970 1971 1972 1973 L--------------------------------------------------- D thousand-----------__________________________________ -_

Short-TermIndividuals 1,133 1,424 3,284 3,053 1,617 1,687 1,660 1,326 1,148 963 2,217 2,431 2,857Cooperatives _ 702 z,853 Z,561 5,377 6,35 6.602 4,630 857 1,469

Subtotal 1,133 1,424 3,284 3,053 2,319 4,540 4,a21 6,703 7,523 7,565 6,847 3,288 4,326

Medium-and Long-TermIndividuals 702 635 589 777 3z5 361 830 455 491 2e5 1,845 2,695 4,617 3,069Cooperatives 1553 1.708 1,831 z.571 5,624 2.988 2.878 1,449 6.675 1.678

Subtotal 702 635 589 777 1,878 2,069 2,661 3,026 6,115 3,213 4,7k4 4,144 11,292 4,747

Total Shortem 2,o59 3.873 30830 4197 6,609 6.882 9!729 l = 7 7,43 1 46747and Long- erm.- --- - __ ___

IndividualShort -Term 1,133 1,424 3,284 3,053 1,617 1,687 1,660 1,326 1,148 963 z,t17 z,431 z,857 -

Medium-Term 702 635 589 777 325 361 830 455 491 225 1.846 6 95 4617 -

Subtotal 1,8

35 2,059 3,873 3,830 1,942 2,048 2,490 1,781 1,639 1,188 4,063 5,126 7,474 -

CooperativesShort-Term - - - 702 2,853 2,561 5,377 6,375 6,602 4,630 857 1,469 -

Medium-and Long-Term - - - - 5 1;708 1831 2571 52L 2.988 2.878 IUàZ 6,675

Subtotal - _ _ _ 2 4.561 4,392 7.948 11,999 9,590 7,508 23o6 6 _

Total Individualsand 1.835 2,059 3.873 3830 4.,197 6.,609 6,882 9,729 13,638 10,778 7,432 15618

Cooperatives

L First 9 months.

Source: BNT, Annual Reports 1960-1972, and Ministry of Agriculture. -|1December 1974

TUNISIA

IRRIGATION REtfABILITATION PROJECT

Conditions for Selected FOSDA Loans/1

MaximumType of Project Amount Term Interest Rate Grace Period Loan Grant Down Payment

Term InterestRate /2

D/ha Ytears X YearB------------__---- -_- % -------------------------------

Irrigated Tree Crops/3Citrua 665 15 4.5 7 3 50 5 45

Apricots 245 15 4.5 7 3 55 5 40

Peaches 245 15 4.5 7 3 55 5 40

Olives (Table) 475 15 4.5 8 3 55 10 35

D/headLivestock Production

Purebread imported cows 300 5 4 - - 70 10 20

Locally bred coWs 100 5 4 - - 60 10 30

Local sheep 16 3 4 - - 70 10 20

Draft animnals 100 5 3.5 - -- 0 10 20

Cow milking equipment 50 5 4 - - 7t 10 20

Sheep milking equipment 2 3 4 - - -Z 10 20

Sheep housing 3 10 3.5 - - 70 10 20

Stables 60-80 15 3.5 - - 70 10 20

D/ha 7

Pasture Improvement 80 6 4 1 2 60 20 20

MachineryTractora and rotovators - 5 4 - - 65 30 35

Combines - 8 4 - - 65 30 35

Animal-draun harvesters - 6 3 - - 70 10 20

Implements--tractor drawn - 8 4 - - 65 30 35

Implements--animal drawn - 6 3 - - 70 10 20

Seed and fertilizer drills - 8 4 - - 65 30 35

Spraying and duating equipment - 3 3 - - 70 10 20

Plastic, stak.s etc. forcultivation under plastic - 2 4 - - 65 30 35

Greenholues - 5 4 - - 65 30 35

Engines - 5 4 - - 65 30 35

Maintenance equipment - 3 4 - - 65 30 35Trailers, tanks, and pick-up trucks - 5 4 - - 65 30 35

I Includen amuadmants iade by Order of JanuarY 5, 19'74.

Il Interest incurred during grace perlod ls paid during last 5 years of the loan without additional interest.

/3 Includes. windbreaks erected to protect these cropse maximum smount allowable for windbreaks iL D 120/ha.4 According to BNT and Ministry of Planning no more FOSDA loans are made for large machinery items since January 1974; this is in keeping with the Goverrnment's

May 1973 decision to reorient FOSDA lending from large to small farmers.source: Ministry of Agriculture.

Dece"iher 197I4

TUNISIA


Medium-and long-Term FOSDA Loans Approved as of December 1973 /l

Subproject Area Type Number of Loans Amountboan Subsidy---------D ----------D -~~~~~~~~~~~

Medjerda Livestock 632 93,728 13,390

Plantations - 3,264 544

Equipment 87 5e236 748

Nebhana Livestock 11 3,969 567

/ This program was started in September 1973.

Source: OMVVM and OMIVAN.

December 1974

CD\

TUNISA

IRRIGATION RREISILITATION PROJECT

CLON'. 0peratioees, 1965-72

Item 1965 1966 1967 1968 1969 1970 19n

----------------------------_-___--_ D thou-snd - --------

Number of Societies /1 14 28 41 49 52 45 45 45Nubeer Of romdbr fmbers /l 7,651 22,303 32,292 36,450 37,068 - - -Total number of mnacibers L 14,701 34,089 53,046 63,548 70,631 77,690 77,688 77,921Initial capital a 44 133 215 268 293 - - -T tal capital 70 186 338 472 633 707 735 901

Nucber Or staf - - - 105 - 98 -Deposit. fron clients /L 495 1,156 1,502 2,536 4,332 3,236 4,461 5,574Debts to BN& or BNT L - 80 730 194 1,660 - - -State grantse / 290 290 290 290 290 290 290 -Nuimber of loan applications stbmLtted 2 _- - 89,230 - 135j5 -Number of:loans graztxd 1 - _ _ _ 66,340 - 02, -Nimber of loan applications refused 2 - - - - 224890 - 32e029 -Aoount of loans granted 2 .- _ _ 10,1496 - 13,908 15,364Axount of loans repad - - _ _ 6,838 - 10,361 -Amount of loans outatadizb L - - - - 3,658 - 3,546 _Not yet due: IndividuIes 3 427 908 1,028 1,096 664 ) 75

Overdue: Individuals ) 1,135 - 1,280 -Cooperatives 152 227 587 883 211 - 1,055 -

Contentious - 13 33 80 194 - 386 -Redtscounted - - - - 803 - 31 _

Number of loans granted during theyeur a - 14,882 19,129 14,811 10,990 17,236 8,536 -

Anount of loans grnted during they.ar 3- 1,532 ?s,55 1,9'1 3,645 2,610 1,593 1,456

Note: -- means figure miseing. Available etatistics are fragmentary and sometimes heterogeneous.L As of December 31 of the year indicated.1 Prom inception.L Prom Januar; l to December 31 of the year indicated.

Source: BNT,

December 19714

TUNISIA


Secson&l Credit-in-Kind Program

Sxibproject Area 1970-71 1971-72 1972-73 1973-74

Medjerda 1,J405 18,210 21,125 229e700

Nebhana 45,277 18,673 69,568 162,831/2

/1 Of which D 92,700 is flood dama;e relief grants and D 110,000 seasonalcredit estimated for the 1973-7b winter season.

2 As of December 4, 1973.

Source: OMVVM and OMIVAN.

December 1974

Hn

ANNEX 10Page 1

TUNISIA


Detailed Project Description

A. Prolect Objectives

1. The project is intended to result in more effective use of previousheavy investments and thus intensify farming, increase agricultural production,and above all, raise incomes and improve living conditions of about 3,870farmers, including 1,230 settlers and 600 small private farnmers with holdingsof less than 10 ha in Medjerda, and 2,000 farmers in Nebhana with holdings ofabout 1 ha, and strengthen agricultural institutions.

B. Medjerda

The Area

2. This subproject is located in the Lower Medjerda River Valley. Itincludes 20 irrigation sections, comprising 20,066 ha net of irrigable landscattered over 60 km from the Bordj Toum section (upstream of El Aroussia Dam)northward along the Medjerda River to the Utique section and eastward to Tunis(Map IBRD 10986).

Existing Irrigation, Drainage, and Road Networks

3. The existing irrigation network, constructed between 1952 and 1957,consists of:

(a) The Oued Mellegue Dam (on main tributary of the MedjerdaRiver) with a 130 million m3 storage capacity;

(b) The El Aroussia Dam (diversion) on the Medjerda River, equippedwith an automatic downstream control, su plying a 4.87 km concrete-lined main canal with a capacity of 13 m5/sec;

(c) Two main supply canals, emerging from the above main conduit.The Southern Canal, on the right bank of the Medjerda, is35 km long with a head discharge capacity of 7.8 m3/sec,and the Northern Canal, on the left bank, is 14 km long witha head discharge capacity of 5.2 m3/sec;

(d) 6 pumping stations, 4 on the canals and 2 on the river bank;

ANNEX 10Page 2

(e) 20 irrigation sections covering 20,066 ha, of which 15,482 hawere fully equipped with main irrigation and drainage struc-tures between 1960 and 1971, and 4,584 ha were equipped withtertiary and quaternary field channels and drains.

4. Water is distributed to the sections by secondary and tertiarycanals, and to the farms by quaternary or field channels. Constant levelcontrol by special floating valves and modules on the offtakes ensures con-stant discharge. Field ditches are equipped with simple offtakes. Most ofthe canals are either concrete-lined or prefabricated stressed reinforcedconcrete. Water losses are minimal. In general, the irrigation network hasbeen properly maintained, except the special hydro-mechanical equipment (valvesand offtakes).

5. The drainage network includes dikes and a relatively dense networkof open surface drains to protect low-lying areas from flooding. It alsoincludes tile drains installed in some 3,000 ha of heavy soîls to improveinternal drainage. The drainage network of open and tile drains has neverbeen maintained. From a 1971 study, lack of adequate drainage appears tohave been one of the main reasons why half of the farmers have not fully usedthe irrigation facilities in areas where they have been provided.

6. The road network, consisting of main (national), secondary, andfeeder roads, is sufficient to meet present transportation requirements. Mainroads are in satisfactory condition, but secondary and feeder roads lackmaintenance and need to be repaired or rehabilitated.

7. Heavy floods in 1973 damaged the irrigation, drainage and roadnetwork; in an area of about 6,500 ha floods damaged farmland, river dikes,canal offtakes, siphons, pumping equipment, and other civil work8.

Project Description

8. The main elements are:

(a) rehabilitation of the existing irrigation, drainage androad networks over a net area of about 20,000 ha;

(b) construction of 370 farmhouses, installation of facilitiesto provide 614 existing farms with electricity and 678existing farms with drinking water; rehabilitation andrepair of 7 existing rural centers and construction of 2new centers and housing for about 30 extension agents;

(c) establishment of windbreaks for crop protection over 5,000 ha;

(d) purchase and utilization of equipment and machinery foroperation and maintenance of the irrigation, drainage, androad networks over about 20,000 ha;

ANNEX 10Page 3

(e) strengthening the project authority, the Office for theDevelopment of the Lower Medjerda Vally (OMVVM), throughprovision of specialists, fellowships and vehicles;

(f) on-farm development on about 1,230 settler farms and 600small private farms (together about 10,300 ha), includingestablishment of fruit orchards over 850 ha, provision of900 selected dairy cattle, stables, and short-term creditfor crop production inputs, and farm machinery services;and

(g) assistance to OMVVM by consultants in preparing finaldesigns and tender documents for works financed under theproject.

9. Rehabilitation of Existing Irrigation, Drainage, and Road Networks.On the main canal, hydro-mechanical equipment (25 major valves) and cesspoolswill be repaired. On the secondary and tertiary distribution canals, equipmentwill be replaced (488 valves of various types) or repaired (525 valves, pipes,siphons, and various masonry or concrete structures). Pumping stations willbe rehabilitated through: repair or replacement of electrical equipment, suchas transformers, motors, and pumps for the Bordj Toum and Soukra sections;complete modification and installation of new pumping equipment for the HenchirTobias-Utique section; and replacement of parts of the pump-lift system in theBejaoua section. In addition, minor repairs will be made on small storagereservoirs scattered over the irrigation sections.

19. The drainage system will be completely rehabilitated. About 100,000m of main open drains will be cleared of weeds and brush and about 125,000 m3

of mud, stones, and other trash will be removed. Some 500,000 m2 of secondaryand tertiary open drains will be cleared of weeds and brush and 400,000 m3 ofmud, stones and trash will be removed. Concrete and masonry works throughoutthe drainage system will be repaired. Finally, of the 600 km of tile drains,300 km (50%) will be cleaned with special equipment.

11. The road network will be rehabilitiated through construction of mainasphalt roads (17 km), repair and resurfacing of secondary and feeder roads(145 km), and repair of farm roads (1,500 km).

12. Construction: Farmhouses, Electricity, Water, and Rural Centers. Infive irrigation sections, 370 new farmhouses will be built for about one-halfof the 1,230 settlers who were beneficiaries of 7,531 ha of land under theagrarian reform:

ANNEX 10Page 4

Irrigation Settlers FarmhousesSection (Number) (Number)

Henchir Hamada 49 50Tebourba 97 50El Makrine/Sidi Naji 150 100El Mansoura 107 70Utique 204 100

Total 607 370

These farmhouses will be supplied with electricity and drinking water. Also,in the subproject area, 614 existing farmhouses will be provided with electri-city and 678 with drinking water. Water mains and transmission lines criss-cross the project area and these utilities can be extended to individualfarmhouses without major investments.

13. Rural centers, which were originally for the use of service coopera-tives, have been neglected following collapse of the four collective system.Rehabilitation of seven centers and construction of two new ones is intendedto provide centers for extension services (meeting rooms, offices, and housingfor extension agents) as well as service buildings (warehouses for inputs,storage for farm produce, ànd garages for farm machinery and for repair serv-ices). Under the project, the following centers will be repaired or con-structed:

Investments CostD US$

Rehabilitation of 7 centers,including meeting room and office 38,500 88,550

Construction of 2 new centers 22,000 50,600

Parking for 110 tractors and implements 110,000 253,000

Offices for 9 clerks 9,000 20,700

Warehouse space for 8 units

6 existing units to be repaired 24,000 55,2002 units to be constructed 16,000 36,800

Housing for extension agents 117,000 269,100

Total 336,500 773,,950

14. Windbreaks. Crops, particularly fruit trees and vegetables, needextra wind protection in Medjerda. Windbreaks, consisting of double or

ANNEX 1 0Page 5

multiple rows of trees, will be established over about 5,000 ha of the small-holders' areas. Tree species for such windbreaks are eucalyptus, acacia,tamarind, and cypress. A complete system of windbreaks for a large area willconsist of a double row of trees along the periphery, single rows of treesalong the roads, and a secondary break or single row of trees on individuallot-borders, more or less perpendicular to the prevailing wind direction. Theaverage cost of establishing a complete windbreak system, including materials(tree-seedlings) and labor, is D 18 (US$41)/ha or D 90,000 (US$207,000)/5,000ha.

15. Equipment and Machinery for Operator and Maintenance. For operationand maintenance of the irrigation, drainage, and road networks, equipment andmachinery to be provided under the project will consist mostly of hydraulicequipment, earthmoving machinery (including trucks) and vehicles. Annex 11contains a detailed list of equipment and machinery.

16. On-farm Development. Fruit orchards (peaches, pears, table grapes,table olives, pistachios and pomegranates) will be planted over about 850 haat a cost of D 200 (US$460) - D 740 (US$1,700)/ha, depending on the tree type.Short-term credit will also be available to farmers for operation and main-tenance costs of the orchards. Total investment credit needed for the plantingprogram will be D 450 (US$1,035)/ha or D 382,500 (US$0.9 million) in total.The livestock development program will be for purchases of 900 two-year oldselected cattle, at D 495 (US$1,138)/head and for construction of adequatestables to more hygienically house the cattle. At full development, suffi-cient stable space should be available for 6,000 head of cattle see (Annex 7,Table 5); as adequate accommodation already exists for 3,630 head, the creditprogram would provide for stabling of 2,370 head at D 88 (US$202)/head.

17, As present investment credit is almost inaccessible to small farmers,adequate medium- and long-term credit would be provided under the project forthe establishment of fruit orchards and stables. Credit will also be providedto finance construction of farm houses (para 12).

18. Short-term credi< will be provided under the project by partialfunding (foreign exchange element) of the incremental working capital require-ments. The cost of this part of the project will be D 700 (US$1,610,000).

19. Farm machinery services -rill be provided by large farmers (contract-ors), COMECO and OMVVM.

20. Strengthening of the Project Authority (OMVVM). The followingspecialists will be provided to strengthen OMVVM and its services, especiallyits extension services. Two consultant extension specialists will be hiredfor a total of 48 man-months. An economist will also be recruited. Thesespecialists will be located at OMVVM's headquarters in Tunis. Provision hasalso been made for visits by short-term specialists (12 man-months) as maybe needed and for 10 man-months of short-term fellowships for in-service train-ing overseas of agronomic and extension staff of OMVVM.

ANNEX 10Page 6

21. The extension service of OMVVM will be strengthened by the creationof a full-time central pool of subject specialists to back stop the extensionagents in the field. This pool will comprise existing agronomic staff ofOMVVM (four agronomists covering vegetables, peppers, artichokes and fruittrees) and will be augmented, by secondment from other agencies of Government,with a cereal specialist, forage specialist, entomologist, plant pathologist,viticulturist, veterinarian, animal husbandry specialist et al as needed.Local extension and water distribution staff to be assigned to the projectwill be as follows:

Title Year1 2 3 4 5+

Senior Extension Agents(new) 9 9 9 9 9

Extension Agents (existing) 35 35 35 35 35

Extension Agents (new) 5 10 15 15 15

Watermen (existing) 50 50 50 50 50

Watermen (new) 5 8 il 15 20

22. About 31 vehicles and 112 motorbikes will be provided under theproject to guarantee sufficient mobility for consultants and extension staffand to transport limited number of farmers for training purposes.

C. Nebhana

The Area

23. The subproject is located in East-Central Tunisia. It extends east-ward over 130 km from the Sidi Messaoud Dam on the Nebhana River and Sbikha tothe Mediterranean Sea near Chott Mariem, and southeastward along the coast toMahdia, scattered over 13 irrigation sectios of various sizes, 1/ totallingabout 5,000 ha (Map IBRD 10987). As immediate intensive development of irri-gated agrizulture appears to be feasible in only the coastal sections of ChottMariem, Akouda, Sahline, Teboulba, Vieux Teboulba, Moknine and Bekalta (about2,000 ha), several of the project items are limited to those sections.

1/ Sbikha (1,163 ha), Fadhloun (168 ha), Enfida (119 ha), Sidi Bou Ali(938 ha), Chott Mariem (573 ha), Akouda (194 ha), Sahline (173 ha),Monastir (186 ha), Bembla (250 ha), Teboulba (153 ha), Vieux Teboulba(400 ha), Moknine (149 ha), and Bekalta (396 ha).

ANNEX 1 0Page 7

Existing Irrigation, Drainage, and Road Networks

24. The existing irrigation network consists of:

(a) the Sidi Messaoud Dam (rockfill) on the Nebhana River, whichwas completed in 1966. The total storage capacity of thereservoir is 86 million m3. Siltation of the reservoir shouldnot be a problem during the proposed project life;

(b) the Bel Assoud Dam (diversion) on a tributary of the NebhanaRiver. Its annual diversion capacity is 3 million m3 ; wateris conveyed into the Sidi Messaoud Reservoir by a 7 km pipeline;

(c) 2 groundwater aquifers, Bled Sisseb (11 tubewells) and BledSbikha (5 tubewells), from which water is pumped directly intoa pipeline system;

(d) main pipeline, 126 km long and 600-1,400 mm wide, designed tooperate on a 24-hour basis to convey water from various supplypoints (above) to the irrigation sections;

(e) 12 irrigation sections covering about 5,000 ha, and scatteredover a 100 km distance, equipped with buried low pressure pipes;with a flow regulator at the head of each section.

25. A highly sophisticated distribution system with available flowvarying from 10 1/sec to 40 1/sec has been designed for anticipated croppingpatterns under cooperative farming. Technical considerations, disregardingexisting land distribution and owernship, resulted in construction of rectan-gular irrigation units with a perfect geometric grid system and with farmroads crossing each other at right angles. At present, land ownership doesnlot conform to this system and water distribution is disorganized, using avariety of pumps, mobile pipes, small irregular ditches, and other primitivemeans. The most common irrigation method is basin irrigation. At the fieldlevel, irrigation effîcieerry is not of acceptable standards and losses maybe great. The overall water supply system is in fairly good condition, al-though it has not been maintained since construction.

26. Drainage works are satisfactorv to take care of the internal drain-age of most soils in the subproject area. However, flash floods occur, causingoccasional damage to surface drains. Consequently, rehabilitation of drainageworks is mostly confined to repair of surface drains, culverts, and structuresfor road/stream crossings.

27. The road network is adequate, but needs repair and surfacing ofsecondary and tertiary roads.

ANNEX 10Page 8

Project Description

28. The main elements are:

(a) assistance in land reform through consolidation and establishmentof farm titles for about 3,800 small private farmers with holdingsover about 5,000 ha and through the provision of supplementaryconsultant services;

(b) rehabilitation of existing irrigation, drainage, and road networksover about 5,000 ha;

(c) construction of irrigation and drainage works over about 2,000 ha;

(d) establishment of windbreaks over about 1,500 ha;

(e) purchase and utilization of equipment and machinery for operationand maintenance of the irrigation, drainage, and road networksover about 5,000 ha and for additional land development work;

(f) on-farm development on about 2,000 ha including construction ofstilling and storage basins, establishment of fruit orchardsover 300 ha, provision of sprinkler equipment for about 400 ha, ofshort-term credit for crop production inputs;

(g) improving marketing facilities through provision of credit forfield boxes, vehicles, buildings and equipment;

(h) strengthening the project authority, Office of the Developmentof Nebhana (OMIVAN), through provision of specialists and vehicles;and

(i) assistance to OMIVAN by consultants in preparing engineeringdesigns and tender documents for works financed under the sub-project and feasibility studies for development of irrigatedagriculture over about 3,000 ha not included in the subproject.

29. Land Reform Assistance. Except for 305 ha of State-owned land inthe Enfida and Monastir sections, all land is privately owned in the 5,000 hasubproject area. Average holdings are irregularly shaped and extremely small,ranging from 0.23 ha to 1.33 ha. The situation is so complex that it isimpossible to fit the land ownership and use patterns to the existing irriga-tion network. Therefore, an all-out program of land consolidation and re-alignment of parcel boundaries for about 3,800 small private farmers withholdings over 5,000 ha is essental for further development of irrigated agri-culture. This task will be carried out by OMIVAN.

30. By the end of 1973, the Ministry of Agriculture's Directorate ofLand Affairs and Legislation (DAFL) had completed social, agro-economic, andland surveys on only the Chott Mariem, Sbikha and Sidi Bou Ali sections. In

ANNEX 1 0Page 9

Chott Mariem and Sidi Bou Ali sections, most landowners now have a legalownership title. However, from a schedule submitted by OMIVAN, completion ofland reform, including consolidation and issuance and registration of landtitles, now appears to require up to six years with the present resourcesavailable (manpower and equipment). To ensure that these phases of Land re-form will be completed within two years for the 2,000 ha to be developedunder the project, OMIVAN will establish a special team, assisted by a land re-form specialist provided by the project to: carry out social, agro-economicand land surveys; interpret topographic and cadastral data; and demarcate andallocate land to be redistributed in accordance with the existing land reformlaws. DAFL will be provided with a second land reform specialist, to bestationed in Tunis, to assist it in evaluating results of past land reformactivities and advise on future programs. Total cost of this element, in-cluding staff, surveys, specialized equipment and vehicles will be D 152,000(US$351 ,000).

31. Rehabilitation of Existing IrriRation, DrainaRe, and Road Networks.Minor repairs will be made on the main irrigation pipeline (120 km), supply-ing the irrigation sections from the dams and tubewells system, where itcrosses stream beds and at other locations where additional protection needsto be provided against floods and erosion. In addition, many hydraulic equip-ment parts (automatic valves, air vents, outlet and safety valves, and cathodiccontrol) will be replaced on the main pipeline. Storage tanks, service build-ings, storehouses, houses for watchmen, fences, etc. will be repaired. Costof this element, including parts and civil works, will be D 75,200 (US$173,000).Surface drains constructed four years ago will be repaired at a cost approxi-mately 10% of initial investtent, or about D 80,900 (US$186,000). Secondaryand tertiary (farm) roads (about 50 km) will be surfaced at a total cost ofD 58,300 (US$134,000).

32. Construction of Irrigation and Drainage Works. To make the existingirrigation system more functional, some new works and equipment will be pro-vided over about 2,000 ha in Chott Mariem, Akouda, Sahline, Teboulba, VieuxTeboulba, Moknine, and Bekalta sections for rehabilitation or repair. Thisincludes:

(a) land levelling, including occasional uprooting and removal of oldolive trees and stands, and deep plowing to prepare for plantingof fruit trees (300 ha);

(b) six pumping stations in four sections to boost water pressurefor locations where topography and elevation require irrigationby sprinklers;

(c) accessory equipment, such as pipes, taps, turnouts, and metersfor infield water distribution; and

(d) construction of civil works involved with providing additionalsurface drainage facilities in low areas of four sections (215 ha).

ANNEX 10Page 10

33. Windbreaks. Windbreaks will be established in the vegetable grow-ing areas of the project (about 1,500 ha) by double rows of cypresses. Addi-tional protection against wind in these areas will be provided by prefabricatedartificial windbreaks, such as matting, furnished by the farmers. As fieldlayouts in Nebhana are quite different from those in Medjerda, the averagecost of establishing similar windbreaks (para 14) will be D 28 (US$64)/ha inNebhana versus D 18 (US$41)/ha in Medjerda. Total cost will be D 42,000(US$96,000).

34. Equipment and Machinery. Equipment and machinery for operation andmaintenance of the irrigation, drainage, and road networks over 5,000 ha aswell as for additional land development work over 2,038 ha consist primarilyof earthmoving machinery, trucks, and tractors. A mobile workshop, assortedtools, generators, and pumps will also be included. Total cost of theseitems, detailed in Annex 11, will be about D 168,000 (US$386,000).

35. On-Farm Development. Investment credit will be provided to assistfarmers with the construction of stilling and storage basins, the establish-ment of 300 ha of fruit orchards (apricots and citrus), and the purchase ofsprinkler equipment for about 400 ha. Total cost of these items will be aboutD 232,000 (US$534,000). In addition, short-term credit will be extended undera new credit scheme for crop production input (D 300,000 or US$690,000).

36. Marketing Services. Most technical aspects of marketing, consistingof market information, transport and storage facilities, and sorting, gradingand packing facilities, will be handled by marketing cooperatives, notably theCentral Cooperative for Fruits and Vegetables "Nebhana" (CCN), with guidancefrom OMIVAN. Under the project, the following items will be added to existingfacilities so a more effective marketing system is created in the area:

ANNEX 10Page 11

Item CostD US$

Field Equipment

Field boxes (25 kg capacity) 34,500 79,350

Vehicles /a12 Pickups (1 ton) 15,600 35,88010 Trucks (7 ton) 48,000 110,400

Storage Space /b5 existing centers 2Additional space (1,000 m ) 20,000 46,000Additional equipment 5,000 11,500

(office and weighing equipment)

Conditioning Station (Sousse)

Building, office, and storage 29,600 68,080Grading and packing equipment 17,800 40,940

(including installation)

Office of CCN (Sousse) /c

Building, furniture and equipment 20,200 46,460

Total 190,700 438,610

/a CCN now owns and operates two pickups (1 ton) and two trucks (5 ton)./b About 1,000 m2 storage space is presently available to CCN, either owned

(400 m2) or rented 600 mz)./c To replace temporary quarters.

37. Strengthening of the Project Authority (OMIVAN). To strengthenO01IVAN, it will be provided"with a Senior Advisor (36 man-months), a marketingand a cooperatives specialist (24 man-months), and a vegetable specialist(36 man-months). In addition, operational assistance (6 man-months) is fore-seen for protecting markets for fruits and vegetables produced in Nebhana.Provision has also been made for visits by short-term specialists (12 man-months)as may be needed and for 3 man-months of short-term fellowships for in-servicetraining overseas of agronomic and extension staff of OMIVAN. This staff willbe attached to OMIVAN's office in Sousse to assist the Director and his seniorstaff in project implementation.

38. The project also will provide for enlarged and adequate officespace for the gradually expanding staff of OMIVAN. In addition, to helpOMIVAN carry out its field activities more effectively, housing for field

ANNEX 10Page 12

extension agents (where this will not be provided under a Belgian TechnicalAssistance Program) and watermen, vehicles, a repair shop for vehicles, andequipment will be provided.

39. Feasibility Study and Detailed Engineering Design. The project willprovide for a team of five consultants to make a detailed study of the devel-opment of irrigated agriculture in 3,000 ha of the four inland sections of:Sbikha (1,163 ha), Fadhloun (161 ha, Enfida (119 ha), and Sidi Bou Ali (936ha) and the two coastal sections of Monastir (200 ha) and Bembla (280 ha).This study will include choice of method of irrigation for each individualsection or part of each section, preparation of designs for irrigation dis-tribution works in these sections, need for reallocation and consolidationof farm lands, and crop water demands at full development. The consultantswill use this study as the basis of a feasibility study which could be usedby the Government to request financing of the second development stage inNebhana. The consultants will also assist OMIVAN in preparing designs ofcomplementary works in the seven coastal irrigation sections included in thesubproject. Annex 12 contains detailed terms of reference for the team ofconsultants. In addition, the Ministry of Agriculture's Directorate forHydraulic Studies and Major Works (DGETH) will undertake a study of wateravailability for the subproject area within the framework of the regionalwater master plans (Annex 12 provides details).

December 1974

ANNEX 11Page 1

TUNISIA


Equipment to be Procured

Item EstimatedQuantity Cost

US$

Medjerda

Equipment, Material, and Partsfor Irrigation Rehabilitation,Operation, and Maintenance

Neyrpic EquipmentStop Valves 293 94,300Avio Valves 97 165,600Amil Valves 25 39,100Regular Valves 73 39,100Repair Equipment 260,000

Subtotal 598,100

Pipes and Various 270,000

Pumping StationsElectro-mechanical equipment(motor, pump, transformer,valves, spare parts) for7 stations (El Bathan,Douar El Bey, Manouba,Bejaoua, Sidi Thabet,Utique and La Soukra) 7 223,790

Subtotal 223,790

Operation and Maintenance EquipmentBulldozer, D6 1 55,200Bulldozer, D4 1 41,400Motor Graders, 125 HP 2 69,000Rubber-tire Crane, 4 ton 1 4,600Excavator Dragline, 1 m3 1 75,900Truck Mounted Dragline 1 39,100Rubber-tire Dragline 1 39,100Trucks, 10 ton 10 161,000Tile Drain Flushing Machine 1 11,500Rubber-tire Tractors, 70 HP 2 16,100Rubber-tire Sprayer, 1 ton 1 6,900Rubber-tire Tank, 1 ton 1 4,600Land Rovers, 4 wheel drive 2 11,500Spare Parts for above (20%) 105,800

Subtotal 641,700

ANNEX 11Page 2

EstimatedItem Quantity Cost

US$

On-Farm Development Equipment and VehiclesAutomobiles and Minibuses 16 91,600Land Rovers, 4 wheel drive 15 86,250Motorcycles 112 38,640Spare Parts for above (20%) 43,300

Subtotal 259,790

Total Medjerda 1,993,380

Nebhana

Equipment and Materials for IrrigationRehabilitation and New Works

Turnouts and water meters 840 115,920100 mm pipes and taps, 1 m 5,000 57,500Mobile Sprinkler Equipment (for 400 ha) 138,000Pumping Stations complete 6 115,000Spare Parts (5%/ for pipes and taps,

10% for sprinklers, and 5% forpumping station) 53,000

Subtotal 479,420

Operation and Maintenance Equipment

Crawler-tractor, 120 HP, with deep plough 1 53,820Wheel-tractor. Scraper, 150 HP 1 60,000Motor Grader, 120 HP 1 34,500Hydraulic ExcavaSor,100 HP, on tracks 1 33,350Traxcavator (1 m ), 90 HP 1 37,950Land Planer, small 10 10,000Dumper, small 2 6,000Tractor and Semi-trailer (low-bed type) 1 40,000Various (2 mobile pumps, 2 generators,

1 mobile workshop,tools) 46,000Spare parts for above (20%) 64,325

Subtotal 385,945

ANNEX 11

Page 3

Item Quantity EstimatedCost

US$

Equipment and Materials for Marketing Services

Conditioning EquipmentFeed Belt, 1/4 HP, 2 m 2 1,400

Roller Grader (sorting), 1/3 HP, 3 m 2 4,000

Roller Grader (grading), 1 HP, 5 m 2 7,000

Mechanical Sizer, 1/2 HP, 5 m 2 5,000Box Chain Conveyor, 1/2 HP, 10 m 6 7,000

Return Belt Conveyor, 1/2 HP, 10 m 1 3,000Box Packing Stand 24 1,400Miscellaneous Materials 2,200Packing, Freight, Insurance (207%) 6,200Installation 107% 3800

Subtotal 41,000

VehiclesPick-ups, 1 ton 12 35,880Trucks, 7 ton 10 110,400

Subtotal 146,200

Field Boxes 25 kg capacity 50,000 79,350

Office EquipmentTypewriters, Calculators, etc. 11,500

Subtotal 278,050

Equipment and Vehicles for

Feasibility Studies andStrengthening of OMIVAN

Soil Survey and Topographic Equipment

and Materials 34,500Repair Shop 11,500

Automobiles or Station Wagons 3 12,000Land Rovers, 4 wheel drive 6 34,500

Subtotal 92,500

Equipment and Vehicles for Land Reform

Topographic Equipment and Materials 11,500Land Rover, 4 wheel drive 3 17,250

Subtotal 28,750

Total Nebhana 1,264,665

Total Project 3,258,045

Source: IBRD mission

Decernber 1974

AMNN;EX 1 2Page 1

TUNISIA


Consultants

A. Introduction

1. Proposals will be invited from suitable consulting firms or indi-viduals acceptable to the Bank, to carry out the following:

(a) engineering studies, preparation of final designs and tenderdocuments for rehabilitation of Medjerda;

(b) extension services and management assistance to OMVVM;

(c) engineering studies, preparation of final designs and tenderdocuments for Nebhana, including a feasibility study for thedevelopment of the remaining 3,000 ha;

(d) cooperatives, marketing and management assistance to OMIVAN;

In addition, individual specialist consultants, under terms of referenceacceptable to the Bank, will be employed as follows:

(e) a land reform specialist who will be assigned to the Nebhanasub-project;

(f) a land reform specialist who will strengthen the Directorateof Land Affairs and Legislation of the Ministry of Agriculture.

B. Engineering ad Final Designs for Medjeda

2. Feasibility.studies, data on soils, water resources etc. are suf-ficient to enable OMVVM, with the assistance of two consultants (whom itagrees to recruit) to complete detailed engineering studies for rehabilitationof the irrigation, drainage and road networks as well as final designs andtender documents; these consultants will also assist OMIVVM in the evaluationof bids and supervision of construction during the two years of construction.The services of two consultants for about 48 man-months are expected.

C. Extension Services and Management to OMVVM

3. To assist OMVVM in coordinating its own activities and those ofother Government agencies and organizations concerned with implementing theproject, and in organizing an integrated extension service and undertakingin-service training, it will be necessary to strengthen the present team.Two extension specialists will be hired for a total of 48 man-months. Thetwo extension specialists' experience should be complementary (one should

ANNEX 12Page 2

have had animal husbandry experience); they should have had about ten yearsexperience of organizing and operating an integrated extension service andof in-service training of extension agents and be in a position to coordinatethe work of the pool of specialists, backstopping the agents in the field.An economist will also be recruited. He should also have had about ten yearsexperience in organizing and managing economic operations, particularly in theagricultural sector, as well as in the collection and monitoring of statisticalseries. It is expected that a Tunisian economist acceptable to the Bank canbe found. If external assistance proves necessary, the Government will notrequest IBRD financing of his services under the Project.

D. Feasibility and Design Studies for Nebhana

4. Detailed technical and economic feasibility and design studies ofthree inland sections (Sbikha, Fadhloun, and Enfida) and three coastal sections(Sidi Bou Ali, Monastir and Bembla) are required before bank financing for asubsequent project can be contemplated. The scope of work for the studieswill be to:

(a) review and evaluate existing data and documents, with specialattention to soil surveys, land classification and crop produc-tion and yields, irrigation methods, and identification ofmissing information;

(b) undertake field surveys to complete information on agro-economic and social aspects, in particular future croppingpatterns, taking due account of irrigation water limitations;

(c) prepare feasibility studies for each of the six irrigationsections, including all engineering, agricultural, economic,financial, organizational, and legislative aspects;

(d) establish a timetable for further improvement of irrigatedagriculture in the six sections (3,000 ha);

(e) study available irrigation water for the Nebhana irrigationarea (about 5,000 ha) taking due account of existing waterrequirements for the seven irrigation sections (2,000 ha) tobe developed under the project. The main objective will beto ascertain whether sufficient water will be available toirrigate all the 5,000 ha in the light of growing tourist andurban demand in nearby areas, and to examine the possibilityof using treated sewerage water from Sousse, Monastir, andother towns in at least some of the irrigation sections.In addition, evaluation will have to be made of the extentto which good quality water from the Nebhana supply system,presently allocated to irrigation, could, at economic cost,be diverted to other uses if the same could be replaced bywater less desirable for drinking, but acceptable for irriga-

ANNEX 12

Page 3

tion. The study of water availability will be undertakenwithin the framework of the water master plans prepared byDEGTII. No IBRD financing is foreseen; and

(f) assist OMIVAN with the preparation of:

(i) engineering designs and tender documents for works to befinanced under project; and

(ii) a final feasibility report for the development of partor all of the remaining 3,000 ha in Nebhana.

5. Study and preparation of the feasibility report as well as assistancewith detailed designs and tender documents for work to be financed under theproject will be completed within three years. The team of consultants for thestudy should include, but need not be limited to the following specialists:

(a) Civil Engineer/Team Leader (12 months), with practicalexperience in design and construction of pipelines, pumpingstations, and associated civil works;

(b) Irrigation Engineer (12 months), with practical experiencein design, construction, and maintenance of irrigation systems,including sprinkler systems, in semi-arid areas;

(c) Agriculturist (6 months), experienced in Mediterranean agri-culture, especially irrigated vegetable and fruit tree farming;

(d) Agricultural Economist (12 months), with practical experiencein small farm management and different systems of operation(such as owner-operator, sharecropper, and cooperative farming)as well as in the special requirements of off-season vegetablesand fruits for export;

(e) Soil Specialist (6 months), with experience in making andinterpreting soil and land capability surveys.

E. Cooperatives, Marketing and Management Assistance to OMIVAN

6. To assist OMIVAN in coordinating its own activities and those ofother Government agencies and organizations concerned with impletnenting theproject, strengthening its extension and marketing services and undertakingin-service training, a team of three consultants will be required, consistingof a Senior Advisor, one marketing and cooperatives specialist, and onevegetable specialist. The Senior Adviser shoulld preferably be an agriculturistwith experience in extension service organization as well as vegetables andtree crops, in order that he may effectively assist the management in theorganization of extension services. All other members of the team should havehad about ten years experience in organization and managing work in theirrespective fields. The marketing and cooperatives specialist will work mainlywith the Nebhana cooperatives, including the Central Cooperative for Fruits

ANNEX 12Page 4

and Vegetables "Nebhana" (CCN). The vegetables specialist will assist inOIMIVAN's extension services in the techniques of early vegetables productionand in in-service training. In addition, operational assistance is foreseenfor prospecting markets for production of fruits and vegetables in Nebhana.One specialist in external markets (3 months) and one specialist in internalmarkets, including the transformation industry (also 3 months) will berecruited, to define and elaborate a marketing system which will assuremarketing of Nebhana production in the best circumstances. In total, 102man-months are estimated to be needed for these tasks.

F. Land Reform Specialist for OMIVAN

7. A land reform specialist will be recruited by OMIVAN to participatein elaborating land consolidation plans and to assist in executing the differentphases of land reform (24 man-months).

G. Land Reform Specialist for DAFL

8. To strengthen DAFL, a specialist acceptable to the Bank will beassigned to its headquarters (12 man-months).

H. Short-Term Consultants

9. It is expected that short-term consultants will be hired for about.24 man-months.

I. Fellowships

10. Fellowships are foreseen for the staff of OMVVM and OMIVAN whichwill permit them to travel overseas and to observe how tasks they are expectedto undertake are organized and managed in comparable conditions. A total of13 man-months is foreseen for this purpose.

December 1974

ANNEX 12Table 1

TUNISIA


Summary of Consultants Requirements

Item Number of TotalIndividuals Man-months

Engineering studies, preparation offinal design and tender documents,Medjerda (OMVVM) 2 48

Engineering studies, preparation offinal design, tender documents,and a feasibility study for developmentof remaining 3,000 ha, Nebhana (OMIVAN) 6 48

Extension service ard managementassistance (OMVVM) 2 48

Marketing, cooperatives and managementassistance (OMIVAN) 5 102

Land reform specialist (OMIVAN) 1 24

Land reform specialist (DAFL) 1 12

Short-term consultantships 2h

Subtotal 3-0

Fellowships 13

Total r9

December 1974

ANNEX 13Tablei

TU6ISIA

IRRIGATION REEA.ILITATION PROJECT

Medierda: Monthly Water io1airesets ai YulilDevelormear bvy Tmy f Fora and Crap

ype of ?m end Crop Aren .tJ F M A M J h A S O _ D Total

ha ------ ~~------------------------------------ -------------- -3 /ha_______________________________________________---___________--__F s _

Omoia TormsFruits

Olive- (Table) 180 - 200 200 500 600 1,000 1,200 1,200 800 300 - - 6,000Peare 400 - 200 200 400 400 bo0 800 800 400 - - - 4,000Peaches ùOO 200 200 500 500 1,000 1,100 1,000 500 - - - 5000Posegaates 1,050 - 200 200 400 400 sOO 800 800 400 - - - 4,000Grapes (Table) 450 250 500 750 1,000 1,000 1,000 1,000 500 - - ( 6,000

Sobtoual ~~2,o80 (v) 4,715Vegetables

Artiehoesa 1,500 - 200 500 900 1,300 1,400 1,500 1,500 900 S00 200 100 9,000To.atoos 1,400 - - 600 1,000 1,400 1,800 1,800 1,200 600 - - - ù,400Peppers 300 - - 400 600 1,000 1,200 1,800 1,000 - _ _ _ 6,000Caucubits 750 - - - 600 1,000 1,200 1,500 700 - 5,000Peas 450 200 200 500 - - - - - 900 800 200 200 3,030Beans 500 200 200 500 - - - - - 900 800 200 200 3,000Potatoea 250 - - - 800 1,000 1,200 1,000 - - - - - 4,000

Subtotal 5,150 (ave) 6,730FTrage aad C-reals

Alfalfa 400 200 200 400 700 1,100 1,500 1,500 1,500 600 400 200 200 4,500lerseen 700 400 400 600 300 - - - - 900 600 400 400 4,000G-res arley 300 200 300 500 - - - - - 600 400 300 200 2,500Sorgh= 500 - - - 1,000 1,400 1,800 2,000 1,800 - - - 8,000Rya Grass 270 300 400 300 - - - - - 800 500 400 300 3,000Wh-at 1.230 200 200 400 400 - - - 800 400 400 200 3,000

Subtotal 3,400 (ave) 4,545

T.t.1~~~~~/Total 1,3

aorte l'arms

FraitaOlives - 00410) 170 - - - 400 600 800 800 800 600 - - - 4,000Citent 350 - - - 400 500 600 600 600 300 - - - 3,000Pistachios 200 - - - 400 500 600 600 600 300 - - - 3,000Grapas (Table) 150 - 250 500 750 1,000 1,000 1,000 1,000 500 - - - 6,000Orchards 550 - - 200 400 400 600 600 600 200 - - - 3,000

Sabtotal 1,420 (ave) 3,435Vegotablas

Artiehokes 550 _ 200 500 900 1,300 1,400 1,500 1,500 900 500 200 100 9,000Ta-ata.s 400 - - 600 1,000 1,400 1,800 I,bOO 1,200 600 - - - 8,400Peppers 100 - - 400 600 1,000 1,200 1,000 1,000 - - - - 6,000Cauarbits 250 - - - 600 900 1,000 1,000 500 - - - - 4,000Pea- 400 200 200 500 - - - - - 900 800 200 200 3,000B-as 300 200 200 300 - - - - - 600 800 200 200 2,500

Sabtotal 2,000 (ave) 5,930FPrage and Careala

Alfalfa 350 200 200 300 600 1,000 1,500 1,300 1,500 500 300 200 200 8,0005ersson 300 400 400 600 300 - - - - 900 600 400 400 4,000Grea barley 200 200 200 300 - - - - - 500 300 300 200 2,000Sorghos 400 - - - B00 1,200 1,600 1,tOO 1,600 - - - - 7,000Rye Grasa 380 300 400 300 - - - - - 800 500 400 300 3,000'.heat 470 200 200 300 300 - - - - 600 400 300 200 2,500

Subtotal 2,100 (ave) 4,530f2

Total 5,520~

/1 Total Ceea if irrigated stops osder sil faOras (inuluding ettllets ad faras s-alser thon 10 ha) i=ssludes 2,470 ha under double uroppiog, thus autoal crec is:11,430 ha - 2,470 = b,960 + 1,340 = 10,300 ha.

rotal area f irrigated urap. ialudas o3O ha nader doabla crappiag, thus acural area is: 5,520 ha - t3O = 4,960 + 510 ha fallo = 5,200 ha. Total area andersmall acd large facrs equipped with irigatios is: 10,300 ha + 5,200 = 15,500 ba.

Soure- 3-asd on PAOJ 8RD Prepacation Report crd lMiistr-y o? AgMioltue- dta.t

December 1974

TUNISIA

IRRIGATION REHAIILIIATION FROJECT

Medierda: bîonthly Water Requirements at Full Develo,ment by Ty,e of Farm and for Subproject Area

Type of Parm Area Monthced :ueol.-'- hJ1 F M A M J .1 A S D N D Tota

ha - ------------------------------------ - - - - m3!,ha

Smalt Farms 3 10,300t3husand e 937 1,892 4,199 6,470 7,888 10,270 1i0,9i 8,881 6,644 2,891 1,540 1,087 63,690n-ha 114 230 423 653 988 1,287 1,377 1,149 690 351 187 132 7,581

1/sec ha 0.04 0.1 0.16 0.25 0.37 0.50 0.51 0.43 0.27 0.13 0.07 0.05

Large Pa.es 5,200thosssand m3578 764 1,630 2,486 3,177 3,971 4,166 3,641 2.858 1,558 793 633 26,255M3 /h3san m3 132 175 335 586 916 1,144 1,200 1,049 599 356 181 145 6,818

1/secjha 0.05 0.07 0.13 0.23 0.34 0.44 0.45 0.39 0.23 0.13 0.07 0.05

Total 15,500tho-saod e

31,515 2,656 5,829 8,956 11,065 14,241 15,157 12,522 9,302 4,449 2,333 1.720 89,945

,e3,'ha 120 211 394 633 966 1,244 1,324 1,118 660 353 185 136 7,344

I/sec/ha 0.04 0.09 0.15 6.24 0.36 0.48 0.49 0.42 0.25 0.13 0.07 0.05

Source: Based on FAO/IBRD Preparation Report and Minestry of Agriculture data.

Dlecert1er 7

TUNISIA


Nebhana: Monthly Water Requirements at Full Development by Crop and for Subproject AreaJ

Crop and Imount _ F M A M Month _ A_S___-______-______

_ - - m3

h TO N D Tfotal-------------------------------------- ~~-~~~~~~~---------- el/he--------------- ---------- ---s-------------------------------~-------------~

CropTomatues -winter - 200 - - - - - - 800 600 200 100 1,900

-summer - 200 700 1,000 ',100 1,200 --- - 200 4,400

-early - 200 700 1,000 1,100 - --- - 200 3,200

Peppers -winter - 200 600 1,000 500 - - - 1,000 600 300 - 4,200

-s_ummer - 200 600 1,000 1,200 1,500 - -- - 300 100 4,900

Melons - early - - 400 NoO 1,200 1,500 1,000 - - - - 4,900

- late - - - 600 1,300 1,700 1,500 900 - - - - 6,000

Potatoes -early 200 300 500 - - - - - - - 300 200 1,500

Green 3eans - 200 - - - - - - 500 600 200 100 1,600

Groundnuts - - - 800 1,200 1,500 1,500 - - - - - 5,000

Winter Jegetables - 200 - - - - - - 800 600 300 - 1,900

Citrus - 200 300 700 l,000 1,500 1,500 1,400 800 400 200 - 8,000

Apricots - 200 200 500 500 1,000 1,110 1,000 500 - - - 5,000

Olives - - - - 300 500 500 500 200 - - - 2,000

AmountYear 3

thousand m3

(2,530 ha) 49 376 629 1,204 1,563 1,802 1,194 644 904 534 360 132 9,391

m3/ha 26 196 415 702 911 1,189 1,016 732 680 402 206 69 6,544

1/sec/ha 0.01 0.08 0.15 0.27 0.34 0.46 0.38 0.27 0.26 0.15 0.08 0.03 -

At full developmentthousand m

3(?,780 ha) 49 426 442 1,049 1,372 1,729 1,515 772 1,249 813 445 135 9,996

m /ha 23 197 367 679 888 1,330 1,289 959 696 453 206 62 7,158

1/sec/ha 0,01 O.O8 0.14 0.26 0.33 0.51 o.48 0.36 0.27 0.17 0.08 0.02

Source: Based on FAO/IBimi) Preparation Report and Ministry of Agriculture data.

Decenter 1 97b_

AWlEX 14Page il

TWNISIA

IRRIGATION RXAMBILITATION PRWECT

Cost Estimates

Project Elemnt Project CestForeignExolhege

Iocal Foreign Total tonal ForegnR total CmponntD D tousan ----- san_----

MedjerdaA. Rehabilitatios of Irrigation

Drainage and Road Networks

1. Neyrpic Equipmenta. New Equipment 22 125 147 51 287 336 85

b. Eqsip=ent kepairs 68 45 113 156 1o4 26o 60

c. Civil Wnras Repairs 30 20 50 69 46 115 60

Subtotal 120 94 310 97r7 -7r 61

2. Other Equiprenta. Pipes and Various 70 47 117 162 lom 27n 4o

b. Civil Worki Repaira 28 15 43 63 36 99' 36

Subtotal 7 X I 225 14 -39 3'9

3. PumpinF 3tationsa. Electromecenhical Eqoipment 10 57 67 23 132 155 S5

b. Parts snd Vsrious 4 26 30 10 59 69 05

n, Civil Wokrs 30 30 6o 69 60 138 50

Subtotal f 13 I5 If Sf m 68

4. Drai-age 239 16o 399 550 368 918 40

5. Rondo 190 190 38 437 437 874 50

Subtotal A 89-1 -7753 T39I37 77 3,236 51

P, On-farn Develo.p..st

1. Selocted ti-eot-ok 67 379 446 154 872 1,026 o5

2. Investnent Credita: Tree Plantations 268 115 383 616 264 880 30

b. Stables 15 94 209 265 216 481 45

3. Incremental Working Capital 490 210 700 1,127 483 1,61o 30

4. Windbreaks 68 23 90 155 52 207 25

Subtotal B É7; 1 8281 778 r377 7788 4,2031 45

C. BRilitoos1. Farm Houses 263 175 438 605 403 1,008 40

2. Electricity and Wster Supply 292 125 417 672 288 960 30

3. Rural Cesters 202 134 336 464 309 773 40

Subtotal j 757 4 3 1 ë9r ,74 1 1,000 2,74 36

D. Operation and Maintenance Equipent and ,pere Parts (20%) 42 237 279 96 546 642 85

E. Consultants, tndites Strengthesing OMrrVM

1. ConsultantS and Pellowships 57 173 230 132 398 530 75

2. Vehicles and Spare Parts (20%) 12 66 78 27 153 180 -5

Subtotal E M 239 309 159 551 If 78

Subtotal A tbrough E 2,5b7 5,013 5,903 5,630 1,-533 49

P. Contingescy Alluanses

1. Physical ( 9.6%) 246 238 483 566 544 1,1092. Price (36.2%) 1,016 976 1993 2 337 2245 4582

3ubtotal F 1,262 17377 8777 t2,0 2t7f 3

TOTAL Subproject Cnst 3,829 3,66e 78 8,806 8,419 17,225 49

Notes: Cost estimates are based on early 1974 price. Phyesical contingencies at l5% civil o,rks, 10% for stodies knd technic1 assistance, and 5% for eqoipeent.Price contingencies for impsrted equipsent are 14% in 1974, 11% in 1975 and 7.5% in 1976-1980; for civil serks (di stie conotractors) they are 8% in 1974and 1975, 5% in 1976 and 1977, and 4% in 1978-1980.

Discrepancies are due ts rounding.

December 1974

ANNE 14Page 2

TUNISIA


Cost Estimates

Project ElementForeignExohange

Local Foreign Total Local Foreign Total Component- - D tho.sand ------- ------ U thoad

NethanaA. Land Reform

1. CooaultaMtsa. ONIVAN 1 33 43 25 75 100 75b. DAFL 5 16 22 12 38 50 75

2. Eïuipoent 1 4 5 2 10 12 853. Vehicles 1 7 7 2 15 17 854. Field Survey. 40 10 50 92 23 115 20

Subtotal A 7° i27 13 29 55

B. Rehabilitation of Irrigation, Drainage and Road Networka

1. Main Pipeline Repair 37 16 52 84 36 120 302. Epare Parts for Pipeline 3 20 23 8 45 53 853. Surface Draina Repair 40 40 81 93 93 186 504. Roade Repair 29 29 58 67 67 134 50

Sûbtotal B 5 5 21 25 3 49

C. Conotrction od Irrigation and Drainage Worik

1. Land Lerelling 15 6 22 35 15 50 302. Cpen Drains 21 9 30 48 20 68 303. Deep Plowing 4 2 5 8 3 i1 304. Tùruouts and Metera 7 43 50 17 99 116 855. Pipes and Tapn 4 21 25 9 49 58 856. Pmping Stations

a. Equipment 7 43 50 17 98 115 85b. Civil Works 6 4 10 14 9 23 40

Subtotal C 6l 1r 192 1i5 59! 55! 64

D. Windbreaks 34 B 42 77 19 96 20

P. Equipoent ard Pachinery for Operation and Maintenance, and Spare Parts (20%) 25 143 168 58 328 386 85

P. On-fars Develop6ent

1. Stilling and Storage Basins 33 14 47 76 32 108 302. Sprinloler Equipment 9 51 6o 21 117 138 853. Tree Plantations 88 37 125 202 85 282 304. Incremental Working Camital 180 120 300 414 276 690 40

Sobtotal F 222 735 713 510 1,223 42

G. Marketing

1. Conditioning Stationa. Building 18 12 30 41 28 69 40b. Equipment 3 15 18 6 35 41 85

2. Cooperative Central Office 12 8 20 28 18 46 403. Field Buildings 12 8 20 28 18 46 404. Office Equipment 1 4 5 2 1o 12 855. Vehicles 9 54 63 22 124 146 856. Field Boxes 27 7 34 63 16 79 20

Subtotal G 55 r05 19! 1950 559 49 57

H. Strengthening of OMIVAN

1, Consultants and FelloshipS 55 166 221 127 382 509 752. Vehicles 1 4 5 2 10 12 853. Office anSd ousing 34 22 56 77 52 129 404. Repair Shop 1 4 5 2 10 12 85

Subtotal N 9 i97 -27 55! 535 9 69

I. Detailed and Feasibility Stodiea

1. Conoultanta 22 65 87 50 150 200 752. Equipment 2 13 15 5 29 34 853. Vehiclea 2 13 15 5 29 34 854. Miscellaneous 1 9 10 3 20 23 85

Subtotal I 27 100 I 5!7 5! 2-2 59 78

Subtotal A through I 800 1,080 1,879 1,842 2,483 4,325 57

J. Conttngoiry AIoVwenot

I. Phytical ( 7.7%) 62 83 145 143 190 3332. Price (41.7%) 364 481 846 836 1 108 1,944

Subtotal J n5 5M =99 9779 i1529 2,277

Subproject Cost 1,226 1, 6 4 2,870 2,821 3,781 =02 57

TOTAL PROJnCT COST 5.059 5.304 122 200 23,827

Noteo: Cost estimates are based on January 1974 pricea. Physical contingencies at 15% for civil worka, 10% for studies and technical asaistance, snd 5% foreqoipment. PFrice contingencies for imported equipment are 14% in 1974, 11% in 1975 and 7.5% in 1976-1980; for civil works (domestic contractors) they are8e in 1974 end 1975, 5% in 1976 and 1977, and 4% in 1978-1980.

Discrepancie6 are due to rounding.

Source: IBRD miancon.

December 1974

lRR2IATION POHABILITAlToiI PRO2ECT

Schedule cf lxFendctoa-ea

Fa-ojeot Flamat Fa-ojeot Coot OFniu1975 1976 1977 1976 1979 10981

Local Foreign Tota Local Foreig. Total Local Forig Totl Local Fore o Total Loca Forein Totl Local Fog Total T Locl Foreign Total

Medje-daA. Rehabilitation of -rigation,

Drainage and Road Notor-ks 1 590 1 646 3 236 - - - 1,250 1,294 2,544 340 352 692 - - -B. Conatriotion 1,741 1,000 2,741 - - h54i 311 852 699 401 1,100 501 288 789

C. Win"b'a-as 155 52 207 - - - 4 10 50 70 30 100 45 12 57 _ - _ _ _ _ _ - _D. Equip-eot and Machi-ery for

Operetionand Mainteinenc 96 546 642 - - - 96 546 642 - - - - - -E. On-fa-m Development 2,162 1,835 3,997 - - - 449 382 831 509 432 941 543 461 l,oo4 296 251 547 181 153 334 184 156 34C

F. Sta-egthening of 0MVVM 159 551 710 20 68 88 79 276 355 60 207 267 - - - - - - - - -Subtotal A-F 390! 35,30 11,533 20 2T 755 2,919 5,2 272 777 3i7 7iit

G. Con.tigenot diowanosa1. Phy2ic0l (9.6%) 566 544 1,109 4 4 8 26o 250 510 180 174 354 90 86 176 14 13 27 9 8 17 9 8 172. PFion (36.2%) 0.337 2,245 4,582 12 12 24 837 8o4 1,64l _64 541 1,105 436 418 854 189 182 371 137 132 269 162 156 318

Subtotal G 0. 29 903 195 1îr t33 715 -- 11 203

Total Subpa-oject Coot n7 5 122 3,552 3,73 7 425 222 r;7 1515 24 2 99 t 35327 7; 375

NebhanaA, Lad Refor- 133 161 294 5 - - 56 69 125 22 28 50 7 8 15 7 8 15 5 5 10 5 5 10B. Rehabilitation cf Ir-igatio-,

D-ai-age and Rond Netwr-ke 252 241 493 _ _ _ 113 107 220 83 B0 163 56 54 noC. Contr-otion of a-igntion

a-d Lrainage Wa-ka 245 442 687 - - - 75 137 212 81 147 228 72 129 201 6 10 16 7 12 19 4 7 nlD. Windbreake 77 19 96 _ _ _ 13 4 17 16 4 20 17 4 21 17 4 21 12 3 15 2 2 2E. Equipment and Faohinery for

Opea-ation und Mniot-nann 58 328 386 - - - 58 328 386 - - - - - - - - - - - - - - -F. Oc-far, DOeelo.pnnt 616 361 977 - - - 126 75 201 103 61 164 110 64 174 91 47 128 79 46 125 117 68 185G. Mr-keting 190 249 439 - - - 80 106 186 31 42 73 37 48 85 3 3 6 31 39 70 8 il 19

H9. Strengthening cf OLVAN 208 454 662 32 71 103 85 186 271 71 154 225 20 43 63I. Dteltaid and Fe.nibility Ftodila 63 228 291 23 82 105 25 89 n14 15 57 72 _ _ - _ _ _ _ _ _ _ _ _

Subtotla A-I 2;24 71 3t1 277 I 3 273F 2775 402 72 - 329 0 7 7

J. Contingency Allownpcea1. Plyaiol ( 7.7%) 143 l9o 333 9 13 22 60 77 137 38 50 R8 22 30 52 4 6 10 5 7 12 5 7 122. F-to (41.7%) 836 110 1,944 30 ho 70 250 334 584 180 _ 419 152 221 353 52 68 120 82 10î 190 90 n8 208

Oublolal J 979 T93I 0,277 39 31~~~~~~~~~- 98 33 73 21 =23 19% 507 74 53! 40 r 30 =97 =5I 202 95 125 020

total SOlbprojeolt C-ot 1 ___ 2;_3 9_971 _2_ _ 57Z;i r_;93 =__ =1_ = = = : 7

Bsas Coat 7,745 8,113 15,858 106 259 365 3,o86 3,920 7,006 2,100 1,996 4,095 1,408 1,111 2,519 41o 323 733 315 258 573 320 247 567

Contingency Allcwaeoaa1. hyaical ( 9.1%) 709 734 1,442 13 17 30 320 327 647 218 224 442 112 116 229 19 19 37 14 15 29 14 15 292. PFia- (37.7%) 3,173 3 353 6 526 42 52 94 1,097 1139 2225 744 780 1 524 58S 619 1,227 241 02 h91 2 240 459 252 274 526

(37.7%,)t IW 01 20 O -- '2 14087 11313 2 221 1 52 ___ ___ ___ __459__Subtotal _- 8 7 0 735 1,3 % 3 7<5v 7511 259 715

Total 11.607 12,200 03.927 161 328 489 4,493 5,305 9,873 3.062 3,000 6 6î 2,108o 1,846 3,954 669 592 1,261 548 513 1,061 586 536 1,122

Soca-ce, 090P misnion.

Discrepenoiea don tc rcunding.

Deacaea- 1974M

ANNEX 16

TUNISIA


Estimated Schedule of Disbursements

IBRD Fiscal Year Cumnulative Disbursementand Quarter at Ehd of Quarter

US$ thousand

1975/76:

September 30, 1975 -Decemnber 31, 1975 109March 31, 1976 219June 30, 1976 328

1976/77:

September 30, 1976 1,001December 31, 1976 2,347March 31, 1977 3,693Jure 30, 1977 5,ChOc

1 °77/78:

September 30, 1°77 5,713December 31, 1977 6,463March 31, 1°78 7,213June 30, 1978 7,963

1S78/79:

Septermber 30, 1978 8,713December 31, 1978 9,l7March 31, 1e7e 9,636Jure 30, 1979 1C'.CC.

Septemuber 30, 1979 1,5 99Decerber 31, 1079 1Q,7C7March 31, 1080 10,855Jure 30, 1980 1 ,003

1980/81:

December 31, 1980 11,279MNarch 31, 1981 il,lJ-ne 3C, 1981 11,535

September 30, 1981 11,66LDecember 31, 1981 11,798March 31, 19P2. 11>932Ju.c 30, 1982

Source: IBRD Mission.

December 197L

TUNISIA


Medjerda: Operation and Maintenance Costs

I t e m Y e a r1 2 3 4 5 6 7 8 9 10 11+

--------------------------------------D thousand-----------------------------------

Engineering

Irrigation NetworkManagement/l 144 154 166 174 191 198 205 213 220 228 228

Irrigation NetworkMaintenance/1 55 165 220 275 315 320 320 325 325 330 330

Road NetworkMaintenance/i 5 10 10 20 30 30 30 30 35 35 35

Electricity and WaterSupply Maintenance - 5 5 5 5 5 5 5 5 5 5Subtotal 204 334 401 474 541 553 560 53 585 598 598

Agriculture/2

Foreign Technical Assistance/3 117 117 99 99 - - - - - - -National Personnel 45 65 80 80 85 85 85 85 85 85 85Equipment and Vehicle Maintenance 50 100 150 150 150 150 150 150 150 150 150

Subtotal 212 282 329 329 235 235 235 235 235 235 235

Total 416 616 730 803 776 788 795 808 820 833 833

/1 For the entire network covering 20,066 ha./2 For the on-farm development area only covering 7,531 ha./3 Belgian technical assistance to be reduced after year 2 of the project and terminated after year CD.*

Source: IBRD mission.

Decemnber 1974

TUNISIA


Nebhana: Operation and Maintenance Costs

I t e m Y e a r

1 2 3 4 5 6 7 8 9 10 11+

--------------------------------------- D thousand-----------------------------__

Engineering/li

Irrigation NetworkManagement 90 90 90 90 95 100 120 140 160 170 170

Irrigation NetworkMaintenance 10 10 20 30 40 40 45 45 45 50 50

Road NetworkMaintenance 5 5 5 5 10 10 10 10 10 10 10

Subtotal 105 105 115 125 145 150 175 195 215 230 230

/2Agricultural Extenaion

Foreign Technical Assistance h4 PO O 4 - - - - - - -

National Personnel 36 41 50 59 59 59 59 59 5° 59 59

Equipnert and Vehicle Maintenar ce 4 5 5 6 6 6 6 6 6 6 6Subtotal 135 1057 7 7 -7 7 7; --67

Markietir g

Assewrbly ard Distribution Centers 10 10 10 10 10 10 1C 1C 1C 1C 10

Transportation - ho 55 70 80 90 100 110 120 130 ihoConditioning Center - - 56 149 209 254 269 294 309 339 358

CC1I Office 10 15 19 21 21 21 21 21 21 21 21

Subtotal 20 7 1h0 250 320 370 40 E0 5 5

Tot&al 205 296 390 480 524 584 640 695 740 795 824

/1 For the entire network covering 5,000 ha.

/2 For the on-farm development area only covering about 2,000 ha.

/3 Belgian technical assistance to the extension service during the first 4 years. CDN


December 1974

TUNIIS TA

IRRIGATION REHABILITATlIOM PR0JE7"U

Recovery of Project Investment Custs

Item Project Investment Cost Revenue from Capital CnargesMedjerda Subproject Riebhana Subproject Project Total

-a:l Att,ibutabl T t t]t Attributabt4 Total Attributable Medjerda Nebhana PDrojecLCot1 to l0,300 haL2 Cosr3h to200 a Cost to Deçelupment Area Subproject- upoec5 oa

---------------------------------------------------------- D thiousand ---------- _------______________________________________________--

Year 1 42 42 81 62 123 104 - -2 1,634 890 553 346 2,187 1,216 53 17 703 676 507 297 235 973 742 108 42 150

283 283 165 129 448 412 168 86 2545 176 176 17 13 193 189 178 126 3046 80 80 12 9 92 89 178 137 3157 94 94 6 3 100 97 178 137 3158-o - - - - - - 1'78 137 315il - - - - - 178 120 29812 - - - - - 176 94 27013 - - _ - - - 170 51 22114 - - - - - - 160 il 17115-21 - - - - - - 151 - 15122 - - - - - - 101 - 10123 - - - - - 51 - 5124-35 - - - - _- - - -

'otal 8 __72 T1131 _797 49,522

Preeent ValueLÉ 2,291 1,5fi5) 388 621 3,179 2,170 1,193 575 1,768

Present Valuie ofGovernment Subsidy 1,098 356 313 46 1,411 402

eco-very Index 52% 77% 65% 93% 56% 81%

/ All investment costs except the costs of: (a) on-farm investnents, to be repaid by farmers through credit;(b) rehabilitating the road netwnrk, to be recovered through user charges and gasoline taxes; and(c) electricity and water supply, tu be recovered through user charges.

2 Investment costs, except excluded items (see L>, attrit-table to the 10,300 ha on-farm development area, that is, the prorated cost of rehabilitation of irrigation anddrainage network and of operation and maintenance cquipment, but the full cost of other items.

/3 All investment costs except the ousts of: (a) on-farm investments, to be repaid by farmeis through credit;(b) road repairs, to be recovered through uiser charges and gasoline taxes; and(c) the feasibility study and detailed design for the 3,000 ha to be developed in the future,

Invertment costs, ercept excluded items (see L3, attri,utable to the 2,000 ha on-farm development area, that is, the prorated cost of land refors, rehabilitation works,and operatiorn arid main;enance equipment, but tle full cost of other items.

e Based on an average price of D400/ha for settlers' plots ropaid over 20 yearc without intcrest asud a l-year grace period; and an average capital contribution of D80/haby private farmers, paid over 10 years at 55 annuial interest and a 1-year grace period.

/É Based on an average capital cDntribution Df D650/ha, paid over 10 years at 5% annual ilterest and a 1-year grace period.L Assuming a social discount rate of 10%.


Decer.ber 1978

ANITEX 1 CTable

rJISI A


Med'erda: Farm. Income per Hectare Without Project

Item YearO 13

(full development)------------- D/ha ----- ________

Fu-J own er-Settlers operators

Gross Value of Production - 261 321 321Less: Productior Costs 115 123 123Net Value of Production 1 8 198Less:Fixed Charges /2,Water Charge - 17 18 18Land price/Capital Contributior/3 -0 10

Debt Service AInvestrert Credit/< - 7 7Short-termn Credit-- - _

N,et Cash Income 125J 129 15°

Plus: Imputed Incomne fromr Employmertof Family Labor/ 6

25,

Net Farmr Incorie 1h4 1 71h 1

/1 Base3a o- a-n average cropping patterr derivedi froni the presert cverall land u^esituaticr in the subproject area; this provides a more realistic picture of thewithoiat and with projeat situatior thar the cropping patternms in the three basicfarm moidels proposed for the project.

/2 -asned or est,imated resent+ water requiremenrt per erop ard the present watercharge of D 0.006/frn.

/3 Average price for settler lote (including improvererts) is DÙO0O paid over20 years wit-hout interest; capital contribution toward irrigaticn invest,mentsof DF() or! average (range i.s D25-1iO), paid over 10 years at 5% annual interest.In both cases a 1-year grace per_od is assurned.

fi Repaymert of principal ard irnterest at the currert 3. % FOSDh armual interestrate on a 135-year construction loan for a new- stable for the diiry coW.

/5 Assiriing that the present interest-free seagsonal credit program wil) he termrinatedard that 6% arnual interest will be charged.

/6 Based or estimated labor requiremrcnts, use of famiiy labor, and the present wagerate for unsk-illJd aricicultural labor (D 0.dCO/ran-da,).


December 1 974

ANNEX 19Table 2

TUNISIA


Nebhana: Farm Income per Hectare Without Project

Item O Year

(full development)------------D/ha------------

Gross Value of Production /l 361 361Less: Production Costs 216 216Net Value of Production 145 145Less: Fixed Charges /2 15 15

Water Charge - /3Capital Contribution -

Interest on Short-term Credit /4 - 6Net Cash Income 130 124Plus: Imputed Income from Employment

of Family Labor /5 40 40Net Farm Income 170 164

/1 Based on an average cropping pattern derived from the present overallland use situation in the subproject area. Full production potentialhas been reached, and further development is contingent on implemen-tation of land reform and completior of on-farm irrigation system.

2 Based on estimated presenF water requirements per crop and the presentwater charge of D 0.008/m->.

/3 The Government might not collect the capital contribution ofabout D 6UO/ha -'or past public investrents in the light of the st4agnartfarm income situation.

/4 Assuming that the present interest-free credit-in-kind program willbe terminated and that 6% annual interest will be charged.

L Based on estimated labor requirements, use of family labor, and thepresent wage rate for unskilled agricultural labor (D 0.600/man-day).

Source: IBRD Mission

Deceanber 197Li

ANNEX 1 9Table 3

TUNISIA

IRRIGATION REHABILITAIION PROJECT

Medjerda: Farm Budget WYith Project at Full Developmentfor Type I Vegetable Farm (Lha)

Gross Value Production Net ValueCrop Area of Production Cost of Production

ha ------------------------ D ------------------------

Pears 0.25 217 3h 183Peaches 0.25 232 48 184Tomatoes 1.20 1,041 355 686Peppers 0.50 285 120 165Cucurbits 1.00 615 197 418Peas 0.25 54 25 29Broad Beans 0.40 124 38 86T,heat (Irrigated) 1.00 192 65 127

Total 2___0 __ __

Settlers Full owner-Operators

Less: Fixed Charge 233 40Debt Service 2 43 43

Net Cash Income /3 1,602 ï ,79Plus: Imputed Income from Family Labor- 88 88Net Farm Income 1,690 1,3

Net Farm Income/ha 422 h71(US$972) (US$1,083)

/1 Based on operation and maintenance costs of the irrigation and drainage network(D 558,000/year at full development); recurrent expenditures for roads, electr-icity, and water supply and for agricultural extension services are excluded.Operation and maintenance costs are recovered through a water charge of D 0.006/m 3

based on stimated water consumption in the Medjerda subproject area of c0.6million m at full development. Average price for settler lots (including im-provements) is Dt00 paid over 20 years without interest; capital contributiontoward public ir'igation investments of D80 on average (range is D25-140), paidover 10 years at 5% annual interest. In both cases a 1-year grace period isassumed.

/2 Repaytnert of principal plus interest on medium- ard long-term credit and intereston seasonal credit.

/3 Valued at the market wage rate of D 0.600/day because of ready availability ofalterrat-;re employment opportunities.


December 1 Y74

ANNEX 10Table 4

TUNISIA


Medjerda: Farm Budget With Project at FuIl DevelopmentFor Type II Fruit/Vegetable Farm (6 ha)

Gross Value Production Net ValueCrop Area of Production Cost of Production

ha ------------------------ D-------------------------

Pears o.4o 347 55 292Peaches 1.00 930 192 738Pomegranates 1.00 536 137 399Olives (Table) 0.30 86 21 65Grapes (Table) 0.80 365 137 228Artichokes 1.50 930 485 ùh4Tomatoes 1.00 868 206 572'Wheat (Dry) 0.°5 36 21 15

Total _.__ h9i i -. 3hh8 2 75h

Settlers FNill owner-Operators

/1Less: Fixed Charge 2 3n2 60

Debt Service- 199 1'__Net Cash Inco-me /3 2, 03 2,45Plus: Imputed. Ircome from Fawi)y Labor 1 6P 16PNet Farm Incorne 2.''? 1 2663

Net Farm Ircome,/ha 3I5 )4'4(U5.$qCc) (uJs$1 ,C?1)

/1 Based on operation ard maintenance costs of the irrigation ar'3 drairage network(D 558,00C/year at ful,l development); recurrert expenditures for roads, electr-icity, ard water supply and for agricult,ural extension services are excluded.Operation and mainterance costs are recovered through a water charge of D O.Q06/mnhased on estimatel water consurotion ir. the Medjerda subDro-,ect area o-f 0.6million m3 at f,ull development. Average price for settler lots (i.ncl.udirg im-provemerts) is DÙlOO paid over 20 years vithout, interest; capital cortributicrnt,oward publir, irrigat.ion irvestments of DPO on average G'ange is D2<-14r), pai»Joe 10 vears grace period iF asS'lred.

/2 9.epaymert of prirsi' plus irterest or mediurn- arn Jong-term cre,.ît ard drtee-Aonr sE7-.7or,J cre'Yit.

/w V.Duedi at the Imarket wage rate of D Q. .6C/Hsy because of ready a vai1]abil.ity ofa+errbetr ve 197p4o,iert opportunities.

Decexnber 197h

ArOEX 1'Table 5

TIJ1ISIA

IRUGQATI ON REHABILITATI(OT FROJECT

Medjerda: Farmn Budget WiWth Proiect at Fuàl Developmertfor Type III Forage/Vegetable/Ïivestock Fanr (7.5 ha)

Gross Value Production Net ValueCrop Area of Production Cost of Productior

Pears 0.1 5 131 21 110Peaches 0.25 232 8 4>4l8Pomegrenates o.6C 321 82 239Artichokes 1.20 744 388 356Peas 0.90 1''h 91 103Potatoes 0.45 237 100 137Alfalfa 0.70 - - -

Berseer 1.25 - - -

Green Barley 0.hS - - _Sorghur 0.90 - - -

ltre Grass 0.55IWheat (Irrigated) 1.00 192 65 127

Subtotal 8 . 4 10 75 1,256

Head Settlers F%J) owner-Operators

Milk and meat fromnurber of cattle 8.C 3,205 P6 2,336

Total 5,256 1 h37

Less: Fixed Charge. 2 418 3)t3Debt Service2 74 74

Net Cash Income /3 3,100 3,177Plns: Irputed Ircome f rom Farily Laboi- 333 333Yet Farn Income =3250e

Net Fair Incore/ha 458 46P(uS$1,053) (TS$1,076)

/1 Based on operation and mair.tenance costs cf the irrigation ard drairage retwork(D 558,000/year at fu'l developmert); reeurrent expendrtures for roads, e)ectri-city, ard. water suppl.y and for agricultural extension services are exc]uded. 3Operation and madntenance costs are recovered through a water charge of D 0.C06/mbased on 3stimated water consuription in the Medierda subproiect area of 00.6millionn at fuli deve2opment. Average price for settler lots (irecludingimprovements) is D400 paid over 20 years without interest; capital contributiontoward public irrigation investments of D80 on average (rarge is D25-140), paidover 10 years at 5% annial interest. In both cases a 1-year grace period isassumed.

/2 Repayment of principal plus interest on medium- and long-term. credit ard intereston seasonal credit.

/3 Valued at the market wage rate of D 0.600/day because of ready availability ofalternative employmert opportunities.


December 1974

ANNEX 1 9Tabl e 6

TUNISIA


Nebhana: Farm Budget With Project at Full Developmentfor Type I Vegetable Farm (1 ha)

Production Net ValueCrop Area of Production Cost of Production

ha --------------------- D ----------------------

Olives (Oil) 0.1C 16 9 7Cucurbits - season 0.07 46 25 2l

- off-season 0.07 59 25 3hPeppers - season O.C7 ho 29 il

- off-season 0.15 100 62 38Potatoes - off-season 0.14 71 37 3hTomatoes - off-season 0.28 336 130 206Green Beans 0.il 56 26 30Grounrdnuts 0.22 37 29 8TFinter Vegetables 0.1. 60 22 38

Total 7.38 821 39T 27

Less: Fixed Charge§, 12hDebt Serv.ce' 17

Net Cash Income 2Plis: Imputed Income from Family Labor/3 73Net Farmn Income 3

Net Farm Income/ha 359 (US$826)

/1 Based on operation and maintenance costs of the irrigation systein, excludingcosts for non-agricultural uses, allocated to the total potentially irrigatedarea (D 220,000/year at full development for 5,000 ha); recurrent expendituresfor roads ard agricultural extension services are excluded. Operattion ardmaintenance costs are recovered through a water charge of D 0.00?/m . Based onan estimated consumption of 9.7 million m3 at full development. Operation ardmaintenance costs for the marketing facilities and vehicles are fully recoveredthrough the revenues of the marketing cooperative. Based on an average capitalcontribution of D 650/ha for partial recovery of the original irrigation system.Payment over 10 years with 4 years grace at 5% annual irterest (D 84/ha/year).

/2 Interest on seasonal credit.7- Valued at the going market wage rate of D 0.600/day.


December 1974

ANTEX 1 5Table 7

TUNISIA


Nebhana: Farm Budget With Pro.ject at Full Developmentfor Type II Vegetable/Fruit Farmi(1 ha)

Gross Value Production Net ValueCrop Area of Prodtction Cost of Production

ha - *-D -- - - - - -- - - - - -

Apricots - off-season 0.hO 192 64 128Clementines 0.07 59 1L h5Oranges 0.23 290 48 242Cucurbits - season o.04 27 15 12

- off-season o.o4 3h 15 19Peppers - season 0.04 23 17 6

- off-season 0.09 60 37 23Potatoes - off-season 0.08 40 21 19Tomatoes - off-season 0.17 20h 79 125Green Beans 0.08 32 15 17Groundnuts 0.13 22 18 4Winter Vegetables 0.08 35 13 22

Total - _

Less: Fixed Cha /1 146Debt Service2 38

Net Cash Income /3 478Plus: ImPuted Inccme from Faïriily Labe 3 83Net Farm Income 51

Net Farm Income/ha 561 (US$1 ,290)

/1 Based on operation and maintenance costs of the irrigation system, excludingcosts for non-agricultural uses, allocated to the total potentially irrigatedarea (D 220,000/year at full developmnent for 5,000 ha); recurrent expendituresfor roads and agricultural extension services are excluded. Operat'on andmaintenance costs are recovered through a water charge of D O.OC'/m . Basedon ar estimated consumption of °.7 milliom m3 at full development. Operationard maintenance costs for the marketing facilities ar,d vehicl,es are f`ullvrecovered through the revenues cf -he marketing cooperative. Based on theaverage capital contribution of D 650/ha fixed by Government for partial re-payrent of the original investment cost. Payment over 10 years with 5 vearsgrace at 5% annual interest (D 84/ha/year).

/2 Repayment of principal and interest on long-term credit for tree plantations.Interest on seasonal credit.

/3 Valued at the going market wage of D 0.600/day.


December 1574

ANNEX 19

Table 8

TDMSIA

IRRIGATION RERIBLITATION PRWJECT

MedJerda: Net IncoM. fer T_ype I Veg.tab~l. ?aam (4 ha) (8&tt3~er)

Crop Area Net Value of Production

YearL1-2 2- _6+ - 2 h691 6

--- ha ---------------------- - - D-------------------

Peare - 0.25 0.25 (19) (19) (1 0) 39 97 155 183 183

Peachea - 0.25 0.25 (24) (24) (2) i18 61 129 184 184

Tomxatoas 0.75 1.00 1.20 285 336 495 547 572 686 686 686

Peppera 0.50 0.50 0.50 12h, 145 145 165 165 165 165 165

Cuourbîts 1.00 1.00 1.00 281' 312 384 hî8 418 418 418 418

Pe4s ' 0.25 0.25 0.25 16 22 22 29 29' 29 29 29

8road BOan 0.25 0.40 0.40O 30 42 67 86 86 86 86 86

1ieat (fi 7 )' 1.00 0.50 - 14 22 il 15 15 - - -

1Wheat (Irrigated) - 0.50 1.00 - - 6h 6h 64 127 127 12,7

Vet.h/Oata (Dzy) 0.50 - - 17 20 - - - - - -

Total 4.2 46 4.85 - - - - - - - -

Net Value of Production 724 856 1,196 1,381 1,507 1,795 1,878 1,878

Less: ?ixed Chargea /i lOperation and Ma»Atenance- 153 153 153 153 153 153 153 153

Capital RecovexryLE. - 80 80 80 80 80 80 80

Subtotal r 3 9r3 1,1h _1, 27T _17 T7~ _

Lees: Dovrpayment 15 - ------

Debt Service pInvestasent Credit5 --- - - 21 21 -

Short-ter-m Credi e4 3 h h il il 21 21 22

Net Cash Inacome =E 137 1 ,263 _1 ~_ T71 =01,623

Plus: Imputed Income from r/5Fanloyment of Poenily labor 67 70 **~ 78 81 86 88 88

Net Farm Incomse 620 689 1_.029 1.1 1,344 _i626 1,6Q0 1_71 1

/l Based on operation anid imaintenance cotst of the irrigatîcn and drainage network< (D 558,000/year at full developasent).recurrent expenditures for roads, electricity, and vater supply and for agricultusal extension services are excluded.

Operation and maintenance costs are recovered through a ivater charge of D 0.006/m -based on estimnated i.water consump-

tion in the Medjerda subproject area cf 90.6 million at f'ull developasent./2 Average price for settler lots (including improvements) is D400 paid over 20 years without interest; capital contri-

bution tovard public irrigation investments of UB0 on average (range ls 125-1h0), paid over 10 years at 5% annualînterest. In both cases a 1-year grace period is assumed.Repayment cf principal pluis interest on medium- and lorng-term credit.Interest on seasonal credit.

7~Valued at the market wage rate of D 0.600/day because of ready availability of alternative employmen-t opportunitîes.

Source: IBBD msissior..

Deceasber 1 974

TUNISIA


Medjerda: Net Income for Type II Fruit/Vegetable Farm (6 ha) (Settler)

Area Net Value of ProductionCrop -Year

h-2 3-5 6+ 1 2 3 4 D 6 2 14-21 21+---- h--a ----------------------- - - D ----- --------- ------

Pears o.40 0.40 0.40 (-30) (-30) 16 62 155 248 292 292 292Peaches o.60 1.00 1.00 (-57) (-57) (-43) 6 144 341 541 738 738Pomegranates 1.00 1.00 1.00 (-70) (-70) (-10) 53 182 306 399 399 399Olives (Table) - 0.30 0.30 - - (-4) (-4) (-4) 4 28 65 65Grapes (Table) - - 0.80 - - - - - (-64) 3 228 228Artichokes 1.50 1.50 1.50 270 333 333 396 396 445 445 445 445Tomatoes 1.00 1.00 1.00 380 448 495 547 572 572 572 572 572Wheat (Dry) 0.50 0.50 0.50 7 11 il 15 15 15 15 15 15Vetch/Oats (Dry) 0.50 - - 17 20 - - - - - -

Total _ 5-0 6.50

Net Value of Production 517 655 798 1,075 1,460 1,867 2,295 2,754 2,754Less: Fixed Charges '

Operation and Ma tenance'- 232 232 232 232 232 232 232 232 232Capital RecoveryLf. - 120 120 120 120 120 120 120 120

Subtotal 275 303 0 753 ! 1,515 1,943 2,02 2,402

Less: Downpayment 52 - 17 - _ _ _ _ _Debt Service /3Investment Credit - - - - - 69 91 166 -Short-term CreditL- il 12 12 15 21 29 33 33 33

Net Cash Income 222 2 7- 707 1,417 2,20 3 2,369Plus: Imputed Income from Employment of Family Labor a 100 106 106 113 130 155 168 168 168

Net Farm Income 322 _9_ 7239 1,5723 =2 2,537

/l Based on operation and maintenance costs of the irrigation and drainage network (D 558,000/year at full development); recurrent expenditures for roads, electri-city, and water supply and for agricultural extension services are excluded. Operation and maintenance costs are recovered through a water charge of D 0.006/m

3

based on estimated water consumption in the Medjerda subproject area of 90.6 million at full development./2 Average price for settler lots (including improvements) is D400 paid over 20 years without interest; capital contribution toward public irrigation investments

of D80 on average (range is D25-140), paid over 10 years at 5% annual interest. In both cases a l-year grace period is assumed./ Repayment of principal plus interest on medium- and long-term credit.Interest on seasonal credit.

z Valued at the market wage rate of D 0.600/day because of ready availability of alternative employment opportunities.


December 1974 so

P ovi

T PJSI A

I1riSATIO`! }lJJQ' rj$ P'LErVT

Medjerda: Net Income for Type IIIForage/V getable/Livestock Farm (7.5 ha (Settler)

Crop Area Net Value of ProductionLYear

1-2 3-5 6+ 1 2 3 6 7 il 17+---- ha--- ------------ - D------------------

Pears 0.15 0.15 0.15 (11) (il) 6 23 58 93 93 110 110Peaches - 0.25 0.25 - - (2h) (24) (2) 18 61 18h 184Pomegranates 0.60 0.60 0.60 (42) (42) (6) 32 109 184 212 239 239Artichokes 1.20 1.20 1.20 216 266 266 380 380 356 356 356 356Peas 0.90 0.90 0.90 57 79 79 103 103 103 103 103 103Potatoes 0-45 °.45 0.45 95 113 131 137 137 137 137 137 137Alfalfa 0.40 0.14 0.70Berseem 0.90 1.25 1.25Green Barley - 1.00 0.45Sorghum - 0.90 0.90Rye Grass - - 0.55hheat (Dry) 1.00 0.50 - 14 22 il 15 15 - - - -Wheat (Irrigated) - 0.50 1.00 - - 64 64 64 127 127 127 127Vetch/Oats (Dry) 0.75 - - 25 30 - - - - - - -

Subtotal 6.35 8.10 8.40

Net Value of Production 354 457 527 730 864 1,018 1,089 1,256 1,256

Year1-2 3-6 7---- nueber

CattleSelected 4 7 8Local 1 0 0

Livestock products(milk and meat) 705 767 862 1,282 1,849 2167 2336 2 336 2,336

Total _1 ,059_ 1,2 -3- r 2,012 2,713 3,185-~ 3;,42 3,55,2

Less: Fixed Charges /2Operation and Mai,ntenance- 268 268 268 268 268 268 268 268 268Capital Recovery3l - 150 150 150 150 150 150 150 150

Subtotal 791 9 71- 1,h 2,295 2,767 3,007 3,174 3,17h

Less: Downpayment 31 55 55 16 - - - -Debt Service /4Investmnent Credit 7 - - 113 190 226 246 146 33Short-term Credit- 13 15 17 24 31 37 39 41 hi

Net Cash Income 77 -736 03 16 2,038 2 2,822 3,100 3,133

Plus: Imputed Income fr" Employmentof Family Labor i_ 277 288 299 310 321 332 333 333 333

Net Farm Income 1,02h 102 1102 1.674 2,359 2=i 3,155 3.33 3

/1 Forage production enters into livestock production as an input, hence, the latter reflects both the net valueproduction of forage and livestock.

/2 Based on operation and maintenance costs of the irrigation and drainage network (D 558,000/year at full development);recurrent expenditures for roads, electricity, ard water supply and for agricultu5al extension services are excludeo.Operation and maintenance costs are recovered through a water charge of D 0.006/mn based on estimated vater consum-ption in the Medjerda subproject area of 90.6 million m

3at full development.

/3 Average price for settler lots (including improvements) is D400 paid over 20 years without interest; capital con-tribution toward public irrigation investments of DB0 on average (rarge is D25-140), paid over 10 years at 5% annualinterest. In both cases a 1-year grace period is assumed.

/4 Repavyment of principal plus interest on medium- and long-term credit.77 Interest on seasonal credit.7g Valued at the market wage rate of D 0.600/day because of ready availability of alternative employment opportunities.

Source: IBRD miss-on.

Decerber 197L&

ANNEX 19Table 11

TUNISIA

IRRIGATIONJ REHAIWLITATION PROJECT

Nebhana: Net Farm Incomefor Tye I Vegetable Farm (1 ha)

Crop Area Net Value of Production

Year1-2 34 5-6 1 2 4 5 6---------ha -------- ---------------------D----------------__

Olives (Oil) 0.10 0.10 0.10 4 4 4 5 5 6 8Cucurbits - season 0.16 0.18 0.07 30 30 43 43 20 20 20

- off-season 0.08 0.10 0.07 26 26 41 41 34 34 34Peppers - season 0.ih 0.10 0.07 13 13 12 12 il il il

- off-season 0.03 0.11 o.15 5 5 24 24 39 39 39Potatoes - season 0.02 - - 1 1 - - - - -

- off-season 0.10 0.14 0.14 18 18 30 30 34 34 34Tomatoes - season 0.08 0.10 - 28 28 35 35 - - -

- off-season 0.03 0.11 0.28 12 12 62 62 206 206 206Green 3eans 0.0> 0.07 0.14 6 6 12 12 30 30 30Groundnuts - 0.07 0.22 - - 1 1 7 7 7Winter Vegetables 0.02 0.1h 0.14 3 3 30 30 38 38 38

Total 0,80 1.22 1. 8

Net Value of Production 146 146 294 295 424 425 427

Less: Fixed Charges -Operation and Maintenance 40 40 40 40 40 40 40Capital Recovery/2 - - - - 84 84 84

Subtotal 106 106 254 255 300 301 30--

Less: Interest on Short-term Credit /3 6 6 12 12 17 17 1i

Net Cash Income 100 100 242 243 283 284 28K

Plus: Imputed Income froxEmploymentof Family Labor 40 40 57 57 70 71 73

Net Farm Income 140 140 299 300 53 355 3

/1 Based on operation and maintenance costs of the irrigation system, excluding costs fornon-agricultural uses, allocated to the total potentially irrigated area (D 220,000/yearat full development for 5,000 ha); recurrent expenditures for roads and agriculturalextension services are excluded. Operation and maintenance costs are recovered througha water charge of D 0.009/m3 based on an estimated consumption of 9.7 million m3 atfull development. Operation and maintenance costs for the marketing facilities andvehicles are fully recovered through the revenues of the marketing cooperative.

/2 Based on an average capital contribution of D 650/ha for partial recovery ofthe original irrigation system. Contribution to be paid over 10 years writh 4 yearsgrace at 5% annual interest (D 84/ha/year).

/ Interest on seasonal credit.1h Valued at the going market wage rate of D 0.600/day.


Decemnber 1974

ANNEX 1 9Table 12

TUNISIA


Nebhana: Net Farm Incomefor Type II Vegetable/Fniit Farm (1 ha)

Crop Area Net Value of ProductionYear

1-2 3-1; 5-6+ 1 2 3 Y e 9 12 18+------ ha ----- ------------- - - C- --------------

Apricots - O.40 0.4O - (32) (24) (24) 9 114 128 128

Clementines - 0.07 0.07 2 - (6) (3) (3) 9 38 45 45Oranges - 0.23 0.23 - - (20) (1) (1) 62 185 242 242

Olives (o1) 0.10 - - 4 4 - - - - - - -

Cucurbits - season 0.16 0.11 0.04 30 30 26 26 12 12 12 12 12- off-season 0.08 0.06 0.04 26 26 24 24 19 19 19 19 19

Peppers - season 0.14 o.o6 0.04 13 13 7 7 6 6 6 6 6off-season 0.03 0.07 0.09 5 5 15 15 23 23 23 23 23

Potatoes - season 0.02 - - 1 1 - - - - - - -

- off-season 0.10 0.08 0.08 18 18 17 17 19 19 19 19 19Tomatoes - season 0.08 o.o6 - 28 28 21 21 - - - - -

- off-season 0.03 0.07 0.17 12 12 40 40 125 125 125 125 125Green Beans 0.04 0.04 o.o8 6 6 7 7 17 17 17 17 17Groundnuts - O.0o4 0.13 - - 1 1 4 4 4 4 4Winter Vegetables 0.02 0.08 0.08 3 3 17 17 22 22 22 22 22

Tôtal 0.80 1.37 1.45

Net Value of Production 146 146 117 147 219 327 584 662 662

Less: Fixed ChargesOperation and Maintenance /1 62 62 62 62 62 62 62 62 62Capital Recovery- - - - - - 84 84 84 O4

.Subtotal -8 F 177 -ll 75' 71 7

Less: Downpayment - - - 17Debt ServiceInvestment Credit /3- - - - - - 23 23 -

Short-term Credit 7 5 6 8 9 12 12 13 15 15

Net Cash Income 79 78 47 60 145 169 402 478 501

Plus: Imputed Income from Employment/5 40 44 47 47 50 55 76 83 83

Net Farm Income 119 12 94 107 195 224 478 561 584

/1 Based on operation and maintenance costs of the irrigation system, excluding costs for non-agriculturaluses, allocated to the total potentially irrigated area (D 220,000/year at full development for 5,000 ha);recurrent expenditures for roads and agricultural extension serSices are excluded. Operation and main-tenance costs are recovered through a water charge of D 0.009/m based on an estimated consumption of9.7 million m3 at full development. Operation and maintenance costs for the marketing facilities andvehicles are fully recovered through the revenues of the marketing cooperative.

/2 Based on the average capital contribution of D 650/ha fixed by Government for partial repayment of theoriginal investment cost. Payment over 10 years with 5 years grace at 57. annual interest (D 81/ha/year).

/3 Repayment of principal and interest on long-term credit for tree plantations.7/U Interest on seasonal credit.75 Value at the going market wage rate of D 0.600/day.

Source: IB'RD mission.

December 1971h

ANNEX 20Page 1

TUNISIA

IRRIGATION REhABILITATION PROJLCT

Economic Analysis

1. Tihe main economic benefits from the subprojects are:

(a) agricultural production increases resulting from:

(i) additional areas under irrigated crops; and

(ii) higher crop yields following rehabilitatiotn of theMedjerda and Nebhana irrigation and drainage systemsand completion of on-farrm development in Nebhana;

(b) yield increases resulting from strengthened agricultural serv-ices; and

(c) savings in rmarketing costs to Nebhana farmers flowing fromi in-vestments in marketing services to be provided by cooperatives,notably the Central Cooperative for Fruits and Vegetables" !rebhana" (CCN).

Tne Internal Economic Rate of Return is based on valuing these benefits overthe 35-year life of the project at economic prices reflecting import/exportparity prices in relevant markets (Table 1). Table 2 shows the financialprices used in the f arn incone analysis (Annex 21).

2. The econonic. costs were obtained by deducting from total projectcosts the:

(a) price contingencies, taxes, and subsidies;

(b) costs of electrification, water supply, housing, and roads(nio quantifiable benefits could be estinated for therm);

(c) suiare of capital ana operation and maintenance costs tlhatbenefit farmers outside tiie 2,038 ha on-farrm developmentareas of Medjerda and Nebhana (Tables 4 and 5).

Increased working capital was included as a cost when incurred during theinitial years and added as salvage value to tihe benefits in the last yearof the project.

ANNEX 20Page 2

3. All capital and recurrent costs incurred to date in the developmentof the two irrigation areas have been treated as sunk costs. The capitalcost of the Nebhana irrigation system alone is D 24 million (US$55.2 million).If these costs were included in the economic analysis, the Rate of Return forthe overall project would be negative.

4. Based on the economic benefits and costs, as defined above, a 28%overall Internal Lconomic Rate of Return was estimated for the 35-year lifeof the project. For Medjerda and Nebhana, the Rates of Return estimated were30% and 24%, respectively (Tables 3-5). A number of sensitivity tests weremade on the Rates of Return (Table 6). These tests showed that if the twomost adverse assumptions were to occur together, the Rate of Return would notbe likely to fall below 19% for the combined project and the Rates of Returnfor Medjerda and Nebliana would be 19% and 18% respectively.

5. The project will also result in the following benefits:

(a) improved income distribution because the sralallest farmers inIMedjerda and those with less than 1 ha in Nebhana would be theprincipal beneficiaries;

(b) better rural living conditions due to investments in socialinfrastructure, rural services, and farm housing;

(c) reduced migration to cities as a result of the precedingfactors;

(d) more secure land tenure through accelerated issuance of landtitles;

(e) substantially increased employnent, expressed in a 36% inMedjerda and 53% in Neblhana rise in employment of familylabor and a doubling of the demand for hired labor at fullproject development, thus creating full-time employment forsome 3,000 persons (Table 7); and

(f) net foreign exchange savings of about US$3.0 rxillion annuallyat full development through increased exports of fruits andvegetables and reduced imports of livestock and cereals (Table 8).

December 1974

ANNEX 20Table 1

TUNISIA

IRRIGATION REHÂBILITATIDN PROJECT

Connmodity Prices Used in Financial AniaLyais

Crop D/ton t

FruitsOlives (Oil) 47Olives (Table) 72Peaches 93Pears 124Clementines 47Oranges 2Pomegranates b7Pistachios 1,030Apricots - off-season 40Graues (Wine) 36Grapes (Table) 57

VegetablesTomatoes - season 26

- off-season 40Peppers - season 57

- off-season 67Potatoes - season 31

- off-season 42Cuevrbyit,s- season 41

- off-seeson 53Artichokes 62.eror Bears 100

Wirter Vegetables 36Broad Beans (Dry) 62Grc undnuts 67

AnimaJ ProductsNilk 67>eat (Livew.eight) 515

Cerea' sDu.rvm TAheat 485rreed -he-t 42Barley 28

/1 Ir 1974 dinars.


December 1974

ANNEX 20Table 2

TUNISIA

IERIGATION REHABILITATION PROJECT

Commodity Prices Used in Economic Analysis

Crop D/ton L

FruitsOlives (Oil) 36Olives (Table) 62Peaches 72Pears 72Clementines 47Oranges 31Pomegranates 51Pistachios 1,Q03Apricots - off-season 40Grapes (wine) 31Grapes (Table) 41

VegetablesTomatoes - season 21

- off-season 40Peppers - season 51

- off-season 67Potatoes - season 31

- off-season 36Cucurbits- season 31

- off-season 53Artichokes 57Green Beans 100Winter 1 egetables 36broad Beans (Dry) 62Groundnuts 67

Animail ProductsMilk 67Meaa (LivewTeight) 515

Ceroals 1974 1975 1976 1977 1978 1979 1980 1985Durum Wheat 152 117 104 h 8 8 F 71 69 71Bread Wheat 102 93 83 77 72 67 63 65Barley 6C 57 55 52 50 47 45 46

/1 In 1974 dinars.


December 1974

TUNISIA


Economic Costs and Returns

Incremental CostCapital l/ Operation and2/ Incremental Net Incremental

Year Investment- Maintenance - Total Benefits Net Cash Flow--------------------------------------------------- D thousand --------------------------------------------------------

1975 105 538 643 437 (206)1976 2,798 774 3,572 914 (2,658)

1977 1,638 911 2,549 1,475 (1,074)1978 992 957 1,949 2,189 240

1979 662 899 1,561 2,601 1,0401980 489 913 1,402 2,842 1,4401981 373 930 1,303 2,900 1,5971982 - 946 946 2,977 2,0311983 - 959 959 3,035 2,0761984 - 990 990 3,100 2,1101985 - 990 990 3,181 2,1911986-2008 - 990 990 3,226 2,2362009 990 990 3,975 2,985

Rate of Return: 28%

If For Medjerda: Excludes costs of rural electrification, water supply, and housing, coats are net of duties and price contingencies.

For Nebhana: Land reform and irrigation network rehabilitation costs allocated to total subproject area.s other capital costs assigned to the developmentarea; excludes costs of feasibility study and engineering design for second-stage development; costs are net of duties and price contingencies.

2/ For Medjerda: Operation and maintenance costs of the entire irrigation and drainage network and of the additional extension services are allocated to theon-farm development area.For Nebhana: Operation and maintenance costs are alleoated to the entire irrigation network and those of the extension service to the on-farm development tarea.


December 1971

TUNISIA


Medjerda: Economic Costs and Returns

Incremental Cost

Year Capital 1/ Operation and2/ Incremental Net Incremental

Investment- Maintenance - Total Benefits Net Cash Flow

------_----- --------------------------------------- D thousand ---------------------------------------------------------

1-975 43 416 459 400 (59)

1976 2,286 606 2,892 824 (2,068)

1977 1,263 730 1,993 1,274 (719)

1978 715 803 1,518 1,849 331

1979 581 776 1,357 2,148 791

1980 383 788 1,171 2,306 1,135

1981 272 795 1,067 2,334 1,267

1982 - 803 803 2,388 1,585

1983 - 808 808 2,416 1,608

1984 - 833 833 2,443 1,610

1985-2008 - 833 833 2,471 1,638

2009 - 833 833 3,039 2,206

Rate of Return; 30

I Ceets of rural electrification, watersupply, and housing are excluded; costs are net of duties and price contingenciese

2 Operation and maintenance costs are allocated to the entire irrigation and drainage netw.rk and those of the additional extension services te the >

*n-farm development area.

Decem'ber 1Ç7o

TUNISIA


Nebhana: Economic Costs and Returns

Incremental Cost Incremental Net BenefitsYear Capital 1/ Operation anq, Agricultural Marketing 3/ Incremental

Investment- Maintenance - Total Production Cooperative Total Net Cash Flow---------------------------------------------------------- D thousand -----------------------------------------------------------

1975 62 122 184 34 3 37 (147)1976 512 168 680 82 8 90 (590)1977 375 181 556 183 18 201 (355)1978 277 154 431 309 31 340 (91)1979 81 123 204 412 41 453 2491980 106 125 231 488 48 536 3051981 101 135 236 515 51 566 3301982 - 143 143 536 53 589 4461983 - 151 151 563 56 619 4681984 - 157 157 598 59 657 5001985 - 157 157 646 64 710 5531986-2008 - 157 157 687 68 755 5982009 - 157 157 1,008 68 1,076 919

Rate of Return: 24%

1/ Land reform and irrigation network rehabilitation costs allocated to total subproject area; other capital costs assigned to the development area;excludes costs of feasibility study and engineering design for second-stage development; costs are net of duties and price contingencies.

J.f Operation and maintenance costs of the irrigation network, prorated to on-farm development area; operation and maintenance costs of the extensionservice for the on-farm development area.

/ Net revenue of the Sousse regional office of the marketing cooperative, derived from savings on transport and other marketing services; these arebenefits accruing ta project farmers.


December 15'7!

ANNEX 20Table 6

TUNISIA


Sensitivity Analysis - Economic Rate of Return

Economic Rate of RaturnAssumptions Medjerda Nebhana Overall

_____________ %------------

1. Basic run 301/ 242/ 283/

2. All capital costs allocated to on-farm developmentarea (but excluding costs of electrification, watersupply and housing) 30 19 27

3. All capital costs allocated to on-farm developmentarea 27 19 25

4. 25% increase in capital costs 24 20 23

5. 12% increase in net benefits 38 27 25

6. 12% reduction in net benefits 24 20 23

7. 25% increase in O & M costs 24 21 23

8. 25% increase in capital costs combined with a 25%increase in O & M costs 19 18 19

1/ From Table 42/ From Table 53/ From Table 3

December 1974

TUtJISIA

IRRI(ATION REHABILITATION PROJECT

Labor Pequiremrients Without and With the oubprojects

Increase ofArea WLthout Pro,ject With Pro.ject With over Without Project

Faynily -Iired Total Famlly Ni red Total Fanily Hired Totalthousand man-days- ---------------

Medjerda

Farm Type I (vegetable)- per farn 112 212.4 324.4 147 567 71h

Subtotal - 700 farms 78. 4 148.7 227.1 102.9 396.9 h99.8Farm Type Il (fruit/vegetable)

- per farm 166.8 316.2 483 299 843 1,142Subtotal - 570 farms 95.1 180.2 275.3 170.à 480.5 650.9

Farm Type IIC (forage/vegetabletlivestock)- per farm 212 402 614 221 408.5 629.5

Subtotal - 550 farms 11i.6 221.1 337.7 121.6 224.7 346.2

Total (10,331 ha) 290 5,0 840 395 1,102 1jh97 36 100 78

Nebhana

Farm Type I (vegetable)- per farm 66.7 39.3 106 122 74 196

Subtotal - i,400 farms 93.7 55.o 148. 170.8 103.6 27L.LFar-m Type II (vegetable/frait)

- per farn 66.7 39.3 106 139 68 207Subtotal - 570 farms 38.0 22.h 60.)4 79.2 38.8 118.0

Total Project 42 2 62L7 1,0o9 65 12 .889 53 98 80


Decembber 1974

- `J

ANNEX 20Table 8

TUMNISIA


Estimated Foreign Exchange Savings Annually at Full Development

Item US$ thousand

Incremental Foreign Exchange Benefits -

Medjerda SubprojectFruits 1,030Vegetables 669Cereals 589Livestock 1 726

Subtotal -

Nebhana SubprojectFruits 531Vegetables 427

Subtotal 95

Total 4,972

Incremental Foreign Exchange Cost 2/

Medjerda SubprojectFruits 169Vegetables 276Cereals 35Livestock 184

Subtotal 664

Nebhana SubprojectFruits 43Vegetables 93

Subtotal

Total 800

Incremental Foreign Exchange Savings 4,172

Debt Service 1 1,143

Net Foreign Exchange Savings 3,o29

1/ Incremental production for export or import substitution valued at CIFprices.

2/ Foreign exchange component of the production cost.3/ Assuming a US $12.2 million Ioan repaid over 25 years at 8% interest per

year with a seven-year gr.ce.Tmri.


Becember 1574

TUNISIAIRRIGATION REHABILITATION PROJECT

Relationship Between Project Authorities & Other Government Organizations

PRIME MINISTER

MINISTRY 0F MIN(STRY 0F CONTRACTS MINISTRY' 0FPLANN=NG AGRICULTURE COMMISSION FINANCE

ADMINISTRATION //

COOROINATING PROJECT AUTHORITY CONTROLEURL~, _ _T E _ O_VVM/OMiVA N FINANCIER

'/ /Offic~e for the Development of theI CONSULTANTS Lower Medjerda Valley; and Office

_____ I / for the Development of Nebhanal

3 j AGRlC. MACHINERY j SEEDS & PLANT EOS, FERTILIZERS MEIUMDIRECT MATERIAL LE CT ICITDLIZERS, I _ I__To &AGR INPUTS3 INSECTI CCN

CGC EMO O~~~~~~~~~FFIC

(Central Coop. For Agric. (Central Coop. For Seeds & (Central CooP. (National BankMechanization) Selected Plant Materials) for Fruits and of Tunisia)

................................................................................................................................................

(D r----- - -INDIRECT i RESEARCH | | TRAINING I

I _____I_______I

INRAT l [AGRICULTURAL TRAININGINRAT ~~ ~1CENTERS/SCHOOLSINat L Inst. For Agric. Researchl

....................................................... ... ,,.,......................

(5) D~~~~~~IL -OFFICE MA RKET1 NG&OCCASIONAL M ETINAL

IForSpecial Purposes On1vl ) FFlW E ASSISTANCEj

LIVESTOCK OFFICE~FI3r- -|- ELECTRICIT-

BUREAU OF STATE LIVESTOCK 1 r NETWORK STELAND MANAGEMENT` PRODUCTION_ _

(OTD) L_* _(Tun. Company for Electricity and Gas)

TEMPORARY 1 ILODGING , WATER SUPPLY SOED

IMPORTED) I j SYSTEMCATTLE_ _ < }

(Nat'! Company for the Exploitation and..................................................... .............................. . . ...... . .,. ... ,,Distribution of Drinking Water

World Bank-8651 (3Ri

TUNISIA


ORGANIZATION OF OMVVM

.......................... --*..................

DIRECT_RATE 0F COORDINATING

BUEAUDRETRAEGEEALAMIITRTO COVMMTTEEBUReAU~~~~~~~~~~~~~~ &FINANCE }...... ..... .... | m~~~~~~~~-

SERVICES OR SECTIONS: * SERVICES OR SECTIONS:

DIRECTORATE 0F ~~~~~~DIRECTIORATE 0F DIRECTORATE 0F Artrnis.nrotion

SDIHESTORANEW FFUBLIC IRRIGATION AREAS Ar;;;;ttof LOWER MEDJERDA l&A tnSTUDIES & NEW (PP~ ~ ~ ~~~~~~I)FI & AccOoutring VALLEY & AccounfiIl

WORK5 SUFPLIES & MARKETING

_ u Englneerang f ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Documentaf ion

l Division of L -| IGrontm i' ; C ; Hvdraulics~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~reti Fovsir

_~ ~ ~~~~~~Arra Rtudies _&rclua Division 0f_prmn tto

SERVICES ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~D OR SECTIONS

; ;~~~~~~~~~~~~~~~~~~Mrs Frose-| DeofloPmslt |- | for Market Cropis

E L - L -C H 3 -| ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~reilnin 0f Extension|

BUREAU 4 Dl5pute5 -| DemoNsArNsCEv Flots

J r ~~~~~~~~KoWanti Frojeet Crdi D insi SoS-Division 0f 1

1 ~~~~~~~~~~~~~PU._IETRT OnFar DIeveloRAmen |OF

|~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ofso -TeEnur of

|-| c v | Works l | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Operatios of

X N _ Lu Topographic l >!f ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Western Sevfions

l l Supervision | | | u~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Tebourbe

: | Construction 1 1 | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Douar el Ben

DIIIECTIIRATF Il 1RR GATION AREAS LOWE~~~~~~~~~~~~~~~~~~~~~~FerMED ERDA ose efin

SERV S Oo Sidi Thabet

| | 7 | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Canals & Pumop

A,Roads & Dreikage

WorLd Bank-d64912R1


ORGANIZATION OF OMIVAN

DIRECTORATE -- COORDINATINGCOMMITTEE

DIVISION OF AGRICULTURAL BelgianHYDRAULIC WORKS EXTENSION Extension

DIVISION Project

l OPERATION l | ~~~~~~~~Sousse Area Sections: |OPERATIONSERVICE Akouda, Chott Mariem,

Enfida, S;di Bou Ali

Monastir Area Sections:NEW WORKS AND

MAINTENANCE Sahline, Bembla. Monastir,SERVICE Teboulba, Vieux Teboulba,

Moknine, Bekalta

Sbikha Area Sections:

Sbikha, Fadhloun

Souassi Area Sections

\Vorld Bank-8790(R)


Implementation Schedule

IBRO Fiscal Year 1975 1976 1977 1978 1979 1980 1981 82

Calendar Year 1975 1976 1977 1978 1979 1980 1981

MEDJERDA

Rehabilitation of Existing Irrigation, Drainage, and Road NetworksDesign and Bidding Documents _Cali for 8ids and Contract award _ _Construction - -

Construction: Farmhouses, Electricity, Water, and Rural CentersDesign and Bidding Documents _Call for Bids and Contract awardConstruction _ -

Windbreaks - -

On-farm Development -

NEBHANA

Land Reform _

Rehabilitation of Existing Irrigation, Drainage, and Road NetworksDesign and Bidding DocumentsCall for Bids and Contract awardConstruction

Construction of Irrigation and Drainage WorksDesign and Bidding DocumentsCall for Bids and Contract awardConstruction

Windbreaks _

On-farm Development _

Marketing Services -

Detailed and Feasibility Studies _

Project Year 1 2 3 4 5 6 7

* Critical date

Source: IBRD Mission WorNd Bank-8876(R)November 1974

f. ~~~~IBRD 10986

\ \ J ' 5' loB ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MAY f974I

T U N I S I A _,A/er/rr3SaBi-°

Irrigation Rehabilitation Project \ ( ° . _ 4 NIP, l

MEDJERDA \ < 2 Jtae $J /' ' ERDAÉne /

=.DIBRD p,oisct.r-(ZDP66ha) a>/ t| rn , ;7ozH0n3

ru Kuwnit p,ôjacl sector6t11,225 h.)\\/ t ig

_ Main cancIs \/tL3i _, ç < >J ? o3srN

* R u r .1 r e n t e r s K / t S aem

tl Rur.[ oent-r und., construction O/\

<, V O rr u f «of Ges

Elr.fctric t,c,,s.is,lon lines + --- cGal,bsL 9r4in.tollation, 0, a 10 12 14 16~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- Gos

e Electrical inatollORons ° 7 KILOMETER5S\ | j \; DJERID`

- M ain rusAI / .) `.t

Rcilroods / / Z 4 0n \ LIBYA?-

3 ~~~~~~GANTOUliX W$t <tSbh ~-

_ ,,CBGRSAID

CHQ1 M IFRt *` A -i\ \ v., 9 X ) J J / V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ )L

r a t k } \ V \ l / / / / / \~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Lkeo Tn COLET

r { ELEASSOStI j

T ,g FADHiOUN TUNISIA

IRRIGATION REH-ABLLITATION__\ .* PROJECT

t L \ » ==>__EADHLONEBHANA

NESSACTJD\~~~~~~~~~~~~~~~~~~~~ N ~~~LDSISSEXWELL -_IS -ORGAE PIPELINE

/Y PUMPING STATIONS

= g ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 SER 7 ' VOI <S

T -- *r _ * .;. ,; : . A* .- TE DtSTRlBTO P TS

"TEES

_____________ UT~~~~~~~~~~~~~~~~~~~~~~~~~~~IRIGATITN SECTIONS

PRE-INV/ESTMENT

WELL FIELDS RIWT

XSIUiTELT-UP AREASSALT LAKES

SBIKHA

X~~~~~~~~ \

TT0! MARIEMI

j~~~~~~~~~~~~~~~~~~~~~~~~~~~LD \KLD

ENNFID}L \ / _ .

KAlao K.6.a ~ ~ ~ BEKLT

11'

~~~~~~~~~~~~~~~~~~MNST/I jR \ < =

2 % X Dh v"301 d~~~~~~~~~~~~~~~~~~~~~~~~~~~Ri N bioaLTo

280~~~~~~~~~~~~~~~~~~5k

~~ ~ VIEUX

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