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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 3947-BA

STAFF APPRAISAL REPORT

BURMA

TANK IRRIGATION PROJECT

November 22, 1982

South Asia Projects DepartmentAgriculture Division A

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

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CURRENCY EQUIVALENTS

1.00 Kyat = US$0.14K 7.20 = US$1.00

WEIGHTS AND MEASURES

1 foot (ft) = 0.305 meters (m)1 acre (ac) = 0.405 hectare (ha)1 square mile (sq mi) = 2.590 square kilometers (km2)1 cubic foot (cu ft) = 0.0283 cubic meters (m3)28.32 liters (1)1 cubic yard (cu yd) = 0.765 cubic meters (m 3 )1 acre-foot (ac-ft) = 12,344 cubic meters (m3 )1 cubic foot per

second (cfs) = 0.0283 m3/sec1 pound (lb) = 0.453 kilograms (kg)1 ton = 1,000 kilograms1 Imperial gallon (Ig)= 1.2 US gallons = 4.5460 liters1 million Imperial

gallon (IMg) = 4,546.0919 cubic meters (m 3 )1 cubic foot per

second (cfs) = 28.3161 liters per second (1/sec)1 acre-foot per year

(ac-ft/yr) = 1,233.4818 cubic meters per yearI Imperial gallon per

minute (Igm) = 4.5460 liters per minute (1/m) (m 3 )1 Imperial gallon per

capita-day (Igcd) = 4.5460 literes per day (1/cd)1 million Imperial

gallons per day(IMgd) = 4,546.0919 cubic meters per day (m3/d)

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

Acronyms Used for Government OrganizationsAC - Agricultural CorporationAFPTC - Agriculture and Farm Produce Trade CorporationAMD - Agricultural Mechanization DepartmentARD - Agricultural Research DivisionARI - Agricultural Research InstituteCC - Construction Corporation

ED - Extension Division

GAD - General Affairs DepartmentHD - Housing DepartmentHVS - Horticulture/Vegetables SectionID - Irrigation DepartmentMAB - Myanma Agricultural BankMAF - Ministry of Agriculture and ForestsMHRA - Ministry of Home and Religious AffairsMPF - Ministry of Planning and Finance

FOR OFFICIAL USE ONLY

PIC - Project Implementation CommitteePMEU - Project Monitoring and Evaluation UnitSLRD - Settlement and Land Records DepartmentTexCorp - Textile CorporationTDC - Township Development Committee

Acronyms Used for Government OfficialsPEM - Project Extension ManagerSMS - Subject Matter SpecialistTEM - Township Extension ManagerVEM - Village Extension ManagerVTEM - Village Tract Extension Manager

Abbreviations and Other AcronymsERR - Economic Rate of ReturnGDP - Gross Domestic Product

HYV - High Yielding VarietyICB - International Competitive BiddingLSC - Long-Staple CottonM - Million

MSC - Medium-Staple CottonMSL - Mean Sea level

O&M - Operation and MaintenancePS - Prudent ShoppingPV - Present Value

PW - Present Worth

SCF - Standard Conversion FactorSV - Switching Value

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

BURMA

TANK IRRIGATION PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

I. SECTORAL BACKGROUND ..................................... 1General ........ 1......................................... IAgricultural Sector ..................................... 1Irrigation Subsector .................................... 2Water Supply and Sanitation Sector ...................... 2IDA's Involvement ....................................... 3Project Formulation and Preparation ..................... 3

II. THE PROJECT AREA ........................................ 4Introduction ............................................ 4Climate ................................................. 4Topography .............................................. 5Soils and Land Suitability .............................. 5Existing Irrigation Facilities .......................... 5Land Tenure ............................................. 6Population and Farm Size ................................ 6Present Agricultural Situation .......................... 6Agricultural Supporting Services ........................ 7Rural Credit ............................................ 8Transportation .......................................... 8Existing Water Supply and Sanitation in Mudon .... ....... 9

III. THE PROJECT ............................................. 9General ................................................. 9Principal Project Features ..... ....................... 9Detailed Description of Project Features ............. ... 10

(a) Kinmundaung Dam and Reservoir .................... 11(b) Azin Dam and Reservoir ........................... 11(c) Kinmundaung Irrigation and Drainage System ....... 11(d) Azin Irrigation and Drainage System .... .......... 12(e) Mudon Water Supply System ........................ 12(f) Water Courses and Field Ditches .................. 12(g) Construction Camp and O&M Headquarters .... ....... 13(h) Agricultural Extension ........................... 13

This report is based on the findings of an IDA mission that visited Burma inNovember/December 1981 comprising Messrs S.J. Baker, H. Azumi, J. Kampen, andMs. J.P. Tan (IDA), and Mr.J.W. Robins (Consultant), and Messrs. D. Campbelland A. Zagni (FAO/CP), and of a follow-up mission in February/March 1982 byMessrs S.J. Baker, T. Skytta and K. Stichenwirth (IDA).

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Table of Contents (Cont-d) Page No.

(i) Agricultural Research ............................ 14(j) State Orchard Farm ............................... 14(k) Strengthening of Implementing Agencies .... ....... 14

Status of Field Investigations, Surveys and Designs ...... 16Water Demand, Supply, and Quality (Irrigation &

Urban Use) ............................................. 17Equipment and Vehicles for Construction .................. 18Cost Estimates .......................................... 18Financing.19Fiacn ........................................................ 1Implementation .......................................... 20Procurement ............................................. 20Disbursements ........................................... 21Budgeting, Accounts and Audits .......................... 21

IV. ORGANIZATION AND MANAGEMENT ............................. 22Implementation Responsibility ........................... 22Project Management and Coordination ..................... 24Operation and Maintenance ............................... 24Monitoring and Evaluation ............................... 25

V. PRODUCTION, MARKETING, FARM INCOMES AND COST RECOVERY .... 26Agricultural Development With the Project .... ........... 26Agricultural Development Without the Project .... ........ 26Overall Agricultural Impact ............................. 27Marketing and Pricing of Project Output .................. 27Farm Income ............................................. 29Agricultural Cost Recovery .............................. 31Financial Aspects of Mudon Town Water Supply .... ........ 32

VI. BENEFITS, JUSTIFICATION AND RISKS ....................... 33Overall Impact .......................................... 33Employment Effects ...................................... 34Household Income Effects from Irrigation .... ............ 34Direct Foreign Exchange Effects ......................... 34Environmental Effects . ......................... 35Benefits to the Economy and Economic Analyses .... ....... 35Project Risks and Sensitivity Tests ..................... 37

VII. RECOMMENDATIONS ......................................... 38

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LIST OF ANNEXES

ANNEX 1: Project Area DataTable 1 - Climatological Data

Table 2 - Population and Farm Size DistributionTable 3 - Summary of Dam, Reservoir and Irrigation System DataTable 4 - Irrigation Water RequirementsTable 5 - Simulated Reservoir OperationTable 6 - Mudon Town Water Supply, Water Demand and Production ProjectionsTable 7 - Present and Projected Cropping Patterns, Yields and ProductionTable 8 - Crop Input Requirements Per AcreChart 1 - Crop Calendar - Kinmundaung

Chart 2 - Crop Calendar - Azin

Chart 3 - Implementation Schedule - KinmundaungChart 4 - Implementation Schedule - Azin Dam and Irrigation FacilitiesChart 5 - Implementation Schedule - Mudon Town Water Supply

Chart 6 - Procurement Schedule for Equipment and MaterialChart 7 - Training Schedule for Implementing Agencies

ANNEX 2 - Costs and Expenditure DataTable 1 - Summary Cost EstimatesTable 2 - Kinmundaung Cost EstimatesTable 3 - Azin Cost Estimates

Table 4 - Mudon Water Supply Cost EstimatesTable 5 - Strengthening of Implementing Agencies, Cost EstimatesTable 6 - Annual Operation and Maintenance CostsTable 7 - List of Equipment

Table 8 - Schedule of ExpendituresTable 9 - Proposed Allocation of the CreditTable 10 - Estimated Schedule of Disbursements

ANNEX 3 - Terms of Reference for Consultancy Services

ANNEX 4 - Economic and Financial AnalysesTable 1 - Prices Used in Farm Budget and Economic AnalysesTable 2 - Farm Budget and Rent Estimates

(a) Kinmundaung(b) Azin - Paddy(c) Azin - Private Orchard Farm(d) Azin - State Orchard Farm

Table 3 - Present Value of Project Incremental Cost RecoveryTable 4 - Summary Benefit and Cost Streams and Economic Rates

of ReturnTable 5 - Sensitivity Tests (Switching Values)

ANNEX 5 - Mudon Town Water Supply Financial AnalysesTable 1 - Proforma Income StatementsTable 2 - Assumptions on Financial Forecasts

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ANNEX 6 - Organization Charts

Chart 1 - Irrigation Department (Construction Organization)Chart 2 - Irrigation Department (O & M Organization)Chart 3 - Agricultural CorporationChart 4 - Urban Water Supply and Sanitation

ANNEX 7 - Selected Documents and Data in the Project File

MAPSIBRD 16262 - Kinmundaung Irrigation SubprojectIBRD 16263 - Azin/Irrigation and Multi-use FacilitiesIBRD 16388 - Mudon Town Water Supply Main Features

BURMA

TANK IRRIGATION PROJECT

STAFF APPRAISAL REPORT

I. SECTORAL BACKGROUND

General

1.01 Since 1962, Burma's guiding philosophy known as "Burmese Way toSocialism" has reflected a combination of traditional Burmese values andsocialist doctrine. Under this philosophy, public ownership of all sectorsof the economy has increased, and greater equality in income has beenachieved. However, the policies adopted have resulted in depressing Burma'sannual GDP growth, which averaged only 2.7% during the 1960s and early 1970s,or little more than the prevailing population growth rate of 2.2% p.a. duringthat period.

1.02 Faced with this unsatisfactory performance, the Government of Burma(GOB) initiated a series of reforms in the early 1970s to stimulate economicgrowth, cautiously liberalizing its policies and opening up the economy toincreased foreign assistance and capital. Some of its primary actions wereto substantially increase agricultural investment and agricultural procure-ment prices and launch a major program to increase paddy yields. Thisapproach proved generally successful, and growth in agriculture since 1975has been impressive. The GDP growth rate during the first three years of theThird Four-Year Plan (1977/78-81/82) averaged about 6.5% p.a. without sig-nificant inflation. However, Burma still remains one of the poorest nationsin the world as measured by per capita GNP (about US$180 in 1981 compared tomore than US$670 in neighboring Thailand). Sustaining the current economicmomentum should not be difficult given Burma's vast development potentialwithin its 260,000 sq mi area, a highly literate and mainly rural (75%)population of 34 M (end 1980), and a relatively low population density of 120per sq mi.

Agricultural Sector

1.03 Agriculture (including livestock, forestry and fisheries) is theprincipal sector of the economy, accounting for about 45% of GDP in 1980/81,65% of the labor force, and 80% of total exports. Rice is the major exportcommodity and is a significant source of government revenue. Rice is plantedon 55% of the total cultivated area and accounts for more than one-third oftotal agricultural output. Other important crops include oilseeds (18% ofthe gross sown area), pulses (7%), industrial crops (5%), and plantationcrops (5%).

1.04 Although favorable weather conditions played a part, the recentimprovement in agricultural production is mainly attributable to the massintroduction of high yielding rice varieties through the Whole TownshipExtension Program and to expanded irrigation. Under the extension program,

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increased amounts of improved seeds, fertilizer and other inputs were madeavailable at subsidized rates and extension services were intensified. Theprogram was initiated in one village in 1975/76 but has since been expandedto cover 72 townships (46% of the area sown to paddy) and other crops havebeen included. National paddy production increased by 41% (from 9.3 M tonsto 13.1 M tons) during 1977/78 to 1980/81.

Irrigation Subsector

1.05 Annual rainfall ranges from 20-40 inches in the Central Dry Zone to160-240 inches along the coastal areas of Arakan and Tenasserim, concentratedmainly in the monsoon period from May to October. There is practically norain from December to March. The heavy monsoon rainfall permits cultivationof a main season rainfed paddy crop in most parts of the country except thedry zone. In the Central Dry Zone, where rainfall is insufficient andunevenly distributed, supplemental irrigation is essential for paddy produc-tion in the wet season. Even in the highest rainfall areas, irrigation isnecessary to ensure a productive dry-season crop.

1.06 Of the 20 M ac net cultivable area, 2.5 M ac were irrigated in1980/81 versus an average of 2.1 M ac during the previous ten years. Since1961/62, about-270 Government irrigation and flood protection projects with atotal irrigable area of 390,000 ac and a flood- protected area of about890,000 ac have been completed by the Irrigation Department (ID). Theseprojects have increased the total irrigable area under Government schemes toabout 1.4 M ac and the flood- protected area to 2.7 M ac. Nearly 60% of theGovernment irrigation schemes are diversion schemes on five main tributariesof the Irrawaddy River. Private initiatives in irrigation at the communityand individual level include village diversion schemes covering about 700,000ac, widely dispersed in the Dry Zone, and village tank schemes covering about120,000 ac, largely concentrated in upper reaches of the Dry Zone catchmentareas.

1.07 Having utilized most of the run-of-river diversion potential in thecentral dry zone, GOB is now shifting its emphasis to storage developmentfor perennial irrigation. Two major multi-purpose dam projects (Kinda andSedawgyi) are under construction. GOB's current priorities are for smallerstorage developments which would diversify its investment in irrigation toareas in need of improvement not covered previously.

Water Supply and Sanitation Sector

1.08 In Burma about 26 million people live in some 65,000 rural villagesand about 8 million in 288 urban areas. Over 80% of these urban areas have apopulation below 20,000. About 14% of the rural population have access tosafe water supply through use of about 7,000 tubewells. The rest of therural population relies on pollution-prone shallow open wells, ponds, irriga-tion canals and rivers. In urban areas, about 35% of the population in 63towns have access to a safe water supply, of which 60% live in Rangoon andMandalay, the two major cities. Most systems provide only a few hours ofwater per day, mostly through standpipes. Including the rural population,nationwide coverage drops to about 19%. Rural sanitation service is

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estimated to cover about 15% of the population, whereas urban areas haveabout 33% coverage. Enteritis and Diarrhea have been identified as the maindiseases among out-patients nationwide and are the second leading diseasesamong hospital in-patients. Rangoon is the only place having a water-bornesewerage system, with a coverage of about 10% of its population. In othertowns, including Mandalay, the sanitary facilities in use range from surface,pit and bucket latrines to septic tanks. Nationwide service coverage isestimated to be about 20%.

1.09 GOB has set year 1990 service development targets of 50% and 54% forthe water supply and sanitation sectors, respectively. It is estimated thatinvestments of about US$320M for water supply and US$190M for seweragedevelopment (1981 prices) would be required to meet planned service targets.The program includes 30 towns for water supply improvements, in addition toRangoon and Mandalay. GOB's Environmental Health Program for FY82/83 toFY85/86 includes construction of 700,000 latrines in rural areas and 105,000in urban areas, in addition to providing sanitary facilities to a largenumber of schools, hospitals and rural health centers.

IDA's Involvement

1.10 IDA has encouraged GOB to give more priority to agricultural develop-ment. Since 1973, 19 IDA Credits totalling US$517.3 M have been approved forBurma, nearly 55% of which were for agriculture. These agricultural projectsinclude a large multipurpose dam, small pumps for lift irrigation, livestock,paddyland development, seed development, rubber rehabilitation, forestry, andgrain storage.

1.11 IDA does not yet have any lending operation in Burma for watersupply/sanitation projects, due mainly to lack of sector information andadequately prepared project proposals. The proposed inclusion of an urbanwater supply component under an irrigation project is expected to be thefirst step to future water supply sector operations financed by IDA in Burma.

Project Formulation and Preparation

1.12 IDA participation in tank irrigation projects was first proposed byGOB in 1978 for a series of small storage and irrigation schemes in MagweDivision in the central dry zone. The IBRD/FAO Cooperative Program assistedID in project preparation. In mid-1980, GOB added to its developmentpriority tank irrigation in Mon State in the southern coastal area, compris-ing a series of small storage and irrigation projects with possibilities ofproviding an urban water supply to nearby towns. First priority was given todevelopment of the Kinmundaung scheme in the Magwe Division and the AzinScheme in the Mon State, since they were in a more advanced stage of prepara-tion. The ID submitted feasibility reports for Kinmundaung and Azin schemesin 1981. The Housing Department (HD) of the Ministry of Construction sub-mitted a separate feasibility report for Mudon in April 1982.

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II. THE PROJECT AREA

Introduction

2.01 The proposed project would benefit two distinctly different regionsof Burma. The Kinmundaung subproject lies within Taungdwingyi Township inMagwe Division in the dry zone of central Burma (Map IBRD 16262). The Town-ship's largest center, Taungdwingyi, lies about 180 miles north of Rangoon.About 5,400 persons live in the project area and the population density isabout 225 per sq mi, almost twice the national average. About 80 percent ofthe population is engaged in agriculture. Per capita income is less than 300kyats (US$42) per year, less than one fourth of Burma's national average.The project area, covering 5,000 acres on both sides of the KinmundaungRiver, is fertile, flat and ideally suited for cultivation. However, becauseof scarce and unevenly distributed rainfall, yields in the area tend to below and cultivation is limited to the monsoon season.

2.02 The Azin subproject is located in Mudon Township within the southerncoastal area of Mon state (Map IBRD 16263). The area comprises a narrowlow-lying coastal plain bordered by terraces rising to the western slopes ofTaungnyo Hills. The irrigation command area has a population of about 2,200and Mudon Town about 40,000. In contrast to the Kinnundaung area, the Azinarea has abundant rainfall, principally concentrated in the June-Octoberperiod. Other than perennial orchard crops, agriculture is generally limitedto a single rainfed paddy crop on the lower-lying lands within the area.Less than half of the population is engaged in agriculture but because of thelack of irrigation during the dry season, a large segment of the farmingpopulation must seek seasonal off-farm employment outside the area. Theannual per capita income in the irrigation command area is estimated to beK 730 (US$104) and in Mudon K 1,000 (US$140).

Climate

2.03 The warm, tropical climate is favorable for crop productionthroughout the year in both subproject areas (Annex 1, Table 1). In theKinmundaung area annual rainfall averages about 38 inches usually betweenmid-May and end-October. However, dry periods of up to 15 days are notuncommon and wet season crops normally suffer significant yield reductionswithout supplemental irrigation. In the dry season, irrigation is essentialfor all proposed crops. Mean temperatures in the Kinmundaung area vary fromabout 72°F to 930F.

2.04 In the Azin area rainfall is much higher, averaging about 186 inchesannually, and occurs mostly during early May to mid-October. Rainfall duringthis period is normally sufficient to meet water requirements of all crops.Irrigation is essential, however, for all proposed crops during the dryseason. Temperatures in the Azin area vary from means of 72°F to 890F.

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Topography

2.05 Irrigable lands in the Kinmundaung area are flat to slightly undulat-ing, sloping gradually from east to west. The area is dissected by severalstreams generally running from east to west. Micro-surface undulations haveformed some low, slow-draining pockets as well as high spots which are dif-ficult to irrigate.

2.06 The proposed Azin command area also slopes gradually from east towest and is divided by natural westerly-flowing streams. Uplands in theeastern part of the area, mostly uncultivated or comprising orchards orrubber plantations, are gently rolling. The remaining area (alluvial plainof the Salween River) is relatively flat.

Soils and Land Suitability

2.07 Kinmundaung. Soils of this area are alluvial (loam to silty clayloam) and even the heavier soils are such that tillage by draft animals ispossible even in unsaturated conditions. The soils are fertile and charac-terized by high moisture retention capacity and well suited to growing a widevariety of crops under irrigation. With adequate fertilization and depend-able irrigation, paddy, cotton, sesame, groundnuts, maize and pulses can allbe grown satisfactorily, and a high cropping intensity seems feasible.

2.08 Azin. The proposed Azin command area includes about 1,000 ac offree-draining upland soils located along the foothills and a much largerlow-lying area of heavy-textured marine-alluvial soils along the SalweenRiver. The upland soils are of variable fertility, with orchards and gardenscultivated in the more fertile areas, rubber on the less fertile alluvium,and no cultivation of the least fertile soils. About 75% of the landsproposed for irrigated orchards are highly suitable for irrigated fruit treecrops and the remaining 25% have minor limitations in terms of depth and/ordrainage characteristics. No serious erosion problems are envisaged on thesepermiable soils of limited slope when cultivated to treecrops with intercrop-ping. The low-lying lands along the Salween River are typicallyrecently-deposited clay alluviums and are highly suitable for paddy cultiva-tion, with excellent yield potential. The transitional lands lying betweenthe uplands and low-lying coastal alluvial areas have lighter texture andcould produce sunflower, pulses, groundnut and/or vegetable crops.

Existing Irrigation Facilities

2.09 Kinmundaung. Existing irrigation facilities in the Kinmundaung areainclude a diversion weir located about four miles downstream from theproposed storage dam, two main canals serving the left and right bank commandareas and farmer-constructed distribution ditches serving about 1,000 ac.The diversion weir would require modification as well as repairs to serve theenlarged project area. The two main canals are about 4,000 ft long and wereoriginally designed for capacities of 100 cfs. They would require desiltingand reshaping and would need to be extended to serve the proposed projectarea, with new control and turnout structures. The existing distribution

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system is completely inadequate (both in size and location) and would need tobe totally replaced.

2.10 Azin. Existing irrigation facilities in the upland areas consist ofa few small farmer-constructed ditches leading from natural drainage channelsand some dug wells constructed to irrigate fruit trees and garden plots.There are no irrigation facilities in lowland paddy areas.

Land Tenure

2.11 Land reform laws and regulations enacted from 1953 to 1963 providedfor the nationalization and re-distribution of land to tenants and hiredworkers. Village land committees were established to assign cultivationrights, organize the collection of land revenue and settle disputes on landproblems. The Settlement and Land Record Department (SLRD) of the Ministryof Agriculture and Forests (MAF) was entrusted with responsibility toadminister the program at the national level. The Local Land Revenue Officesof SLRD are responsible for administration at the State or Division level.Individual land ownership is not permitted except for small plantations oftree crops. The allocation of land to a farm family is generally limited towhat the family can cultivate. Village Land Committees customarily assignthe rights of deceased cultivators to sons or other family members. Subdivi-sion or fragmentation of land holdings is a continuing problem and mostfarmers' holdings consist of small, non-contiguous plots. Families with nocultivation rights work as hired farm laborers.

Population and Farm Size

2.12 Data on population and farm size for the project areas are summarizedin Annex 1, Table 2. While reliable statistics on unemployment and under-employment are not available, field surveys indicate that surplus laborexists in the project area. In Kinmundaung virtually the entire populationdepends on agriculture for a livelihood, while in Azin some farmers engage inadditional part-time activities such as weaving or work elsewhere as hiredlaborers.

2.13 The average farm size in both areas is smaller than the nationalaverage, e.g. about 5 ac in Kinmundaung and 8 ac for paddy and 2.5 ac fororchards and vegetables in Azin. Most of the upland areas in Azin (whereorchard crop are proposed) are not presently cultivated or are in old rubberplantations. About one-third of the upland area is owned by GOB andtwo-thirds by private individuals, with holdings averaging about 4.4 ac.

Present Agricultural Situation

2.14 Cropping Patterns and Yields. Cropping patterns for various regionsin Burma are centrally determined in Rangoon by GOB. Farmers generally mustgrow at least one mandated crop such as paddy, Long Staple (LS) cotton,groundnuts or sesame. They are, however, allowed certain flexibility to growcrops such as vegetables, maize, beans, fruit trees, etc. Present averagecropping intensity in the proposed Kinmundaung command area is about 85%, themain crops being paddy, sesame, maize, country bean, other pulses, and small

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areas of sugarcane, groundnut and sunflower. Currently about one quarter ofthe total area is devoted to sesame from May to August, followed by tran-splanted paddy in about half of the area. Rainfall deficiencies and theunreliability of present irrigation systems often result in much of the paddybeing short of water in the later part of the season, resulting in veryvariable yields. Less than 25% of the paddy is currently sown to HYV. Ifmoisture is judged to be insufficient for upland paddy, it is replaced withbeans planted in mid-September and harvested in December. In a relativelysmall area, beans are also grown as a second crop after early harvestedmaize.

2.15 Average yields in the Kinmundaung service area are low and andextremely variable, and in bad years the area actually harvested of the areasown is relatively small. These factors reduce incentives for using pur-chased inputs such as chemical fertilizer. Except in Special HYV areas,fertilizer use is generally inadequate and is a limiting factor to improvedyields in years when rainfall is sufficient.

2.16 The Mon State coastal plain, which includes the proposed Azin serv-ice area, is cultivated almost totally to paddy during the wet season. Exceptfor some shallow wells, there are no irrigation facilities in the low lyingpaddy areas and most of the land lies fallow during the dry season. Inaddition to lack of irrigation water, physical properties of these coastalclays are a major barrier to expansion of the area planted to upland crops inthe dry season, particularly if such crops are to be cultivated in rotationwith paddy. Heavy texture, subsoil salinity and slow permeability posedifficult management problems for crops other than lowland paddy.

2.17 The cultivated higher elevation terrace lands in the Azin area areplanted to mixed crops. Generally, orchards (banana, coconut, durian, jack-fruit, pomelo, etc) and vegetables are grown near villages and rubber onadjacent foothill slopes. The orchard and vegetable crops are partiallyirrigated during the dry season from shallow dug wells. Estimated yields ofdifferent crops grown in the Azin area are summarized in Annex 1, Table 7.

Agricultural Supporting Services

2.18 The Agricultural Corporation (AC) has responsibility for agriculturalresearch and extension in Burma. Within AC, two research divisions areoperative, the Applied Research Division (ARD) at Gyogon (Rangoon) and theAgricultural Research Institute (ARI) at Yezin. The Extension Division (ED)is also located at Rangoon.

2.19 The ARD administers 24 seed farms and 18 central farms scatteredthroughout of the country. Its objectives are to multiply and produce highquality seed. The farms are organized by crop; those producing paddy,groundnut, cotton, jute and sesame are receiving development support,improved facilities and technical assistance from IDA (Cr.745-BA). Thecentral farms have responsibility for plant breeding, crop selection, yieldtesting, cultural and fertilizer experiments and training of extensionmanagers. The ED has responsibility for implementing agricultural plans,

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procuring and distributing agricultural supplies, and disseminating researchinformation to farmers.

2.20 In terms of the research work carried out by crop, paddy takespriority while cotton and groundnut receive more limited attention; fewresearchers work with sesame. Although cotton production technology isknown, major steps in making inputs available and strengthening extensionservices remain to be taken. Near Azin, there is one central farm primarilyfor paddy, although some preliminary experiments on upland crops such asmaize, sesame and sunflower also have been conducted. The proposed projectwould strengthen activities at this central farm.

2.21 A central orchard farm (165 ac) is located at Kangalay, just south ofMudon. The farm was set up in 1956 and now has well-established orchards ofcoconut, durian, rambutan and cashew. Besides research on the performance ofnew, mostly imported tree varieties and demonstration of improved materials,its main function is the distribution of seedlings. The most importantseedlings currently produced are coconut, rambutan, pomelo and durian. Thefarm is reasonably well equipped and its management and research staff is ofgood quality.

Rural Credit

2.22 The Myanma Agricultural Bank (MAB) was established in 1976 to reac-tivate provision of seasonal credit to farmers through Township Banks andVillage Banks. The current interest rate charged to farmers is 12% forseasonal and long-term loans. At present, 29 crops are eligible for MABloans, the main ones being paddy and oilseeds. The former accounts for 82%of the total volume of lending. Paddy owes its dominance to the terminationof the previously-used advance purchase system for this crop in 1978. MAB'sloan recovery rate is excellent.

2.23 At present, medium-and long-term agricultural credit is scarce,although this situation is being reviewed under technical assistance providedby UK. To date, MAB has not extended long-term credit for orchard develop-ment, although there are no legal obstacles to such loans.

Transportation

2.24 In the Kinmundaung area, a main highway from Rangoon to Prome andTaungdwingyi to Magwe runs along the western border of the project area. Aroad from Taungwingyi to Pyinmana runs through the center of the project areaand would be upgraded under the project. These roads would provide the majormeans of transportation for goods and produce related to the project. Abranch railroad line connects Kyaukpadaung with Pyinmana along the westernedge of the project area. In the Azin area, the main road from the port cityof Moulmein to Mudon, Tavoy and Mergui passes through the project. A rail-road line runs from Rangoon to Ye, just across the Salween River from Moul-mein. The Salween River also provides transportation for goods and produceto the Andaman Sea and ports beyond.

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Existing Water Supply and Sanitation in Mudon

2.25 Mudon does not have a public water supply system. Most of thepopulation (estimated at 39,700 in 1980) draws water from private shallowwells and ponds. The poorest depend on collecting rain water. All wells inthe area dry up during the dry season for at least two months each year.During this period, water is hauled from the Kangyi lake, at the outskirts ofMudon. Vendors transport water from the lake by trucks and bullock carts andcharge K 3 to K 6 per drum (48 Ig). Part of the population cannot affordsuch prices and carry their own supplies from Kangyi lake. Those living inthe western and northern outskirts of the town are faced with carrying dis-tances of several kilometers,

2.26 There are no municipal sanitation facilities in Mudon and onlyslightly more than 50% of the residents have private facilities of any type.The incidence rate of gastro-intestinal diseases in 1980 was about 25% oflocal dispensary in-patients and 9% of out-patients. The overall rate inBurma of these diseases, based on official hospital and health centre data,is about one half the rate in Mudon (100 cases per 1,000 population vs 200per 1,000). The incidence rates of water related skin-diseases and parasiticdiseases in Mudon are 7% and 2.5%, respectively, based on hospital records.These rates clearly indicate that many of the shallow wells and other watersources are contaminated. The Mudon Township Development Committee (TDC) isaware of this situation and carries out a general chlorination of privatewells during epidemic periods. The school and dispensary wells arechlorinated on a continuing basis. Drainage of storm water in Mudon isthrough open street drains, which are regularly maintained by TDC.

III. THE PROJECT

General

3.01 The proposed project would be the first medium tank irrigation schemeassisted by the Bank Group in Burma. The main objective of the project wouldbe to increase crop production and farm incomes in Kinmundaung and Azinthrough construction of storage dams and new irrigation facilities. It wouldalso improve health standards of the Mudon population by providing a pipedmunicipal water-supply system. Water supplies developed by the project wouldbe sufficient to irrigate two crops in the Kinmundaung area and a dry-seasoncrop in the Azin area, as well as a full water supply for Mudon. Assistancewould also be provided to strengthen the implementation capabilities of ID,AC and HD.

Principal Project Features

3.02 Works, facilities and programs to be implemented over a four-yearperiod would include:

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Kinmundaung:

(a) construction of an earthfill dam about 80 ft (24 m) in height;

(b) rehabilitation of the existing diversion weir and canal bifurca-tion headworks;

(c) rehabilitation and extension of two main canals and the construc-tion of an irrigation distribution system for 5,000 ac;

(d) buildings and facilities for construction and operation andmaintenance (O&M) use;

(e) improved facilities and services for agricultural extension andand training;

(f) facilities for a new research farm (50 ac); and

(g) equipment and vehicles for construction and O&M.

Az in:

(a) construction of an earthfill dam about 92 ft (28 m) in height;

(b) construction of main canals and an irrigation distributionsystem for 2,850 ac;

(c) buildings and facilities for construction and O&M use;

(d) improved facilities and services for agricultural extension,research and training;

(e) facilities for a State Orchard Farm (250 ac);

(f) equipment and vehicles for construction and O&M; and

(g) construction of a water supply system for the town of Mudon,including water treatment, pumping and distribution facilities.

Strengthening of Implementing Agencies

(a) technical assistance;

(b) training; and

(c) equipment and vehicles.

Detailed Description of Project Features

3.03 Design data for the dams, reservoirs and irrigation systems to beincorporated in each subproject are summarized in Annex 1, Table 3. Detailsof all project works are shown in the following paragraphs.

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3.04 Kinmundaung Dam and Reservoir. A homogeneous earthfill dam wouldbe constructed on the Kinmundaung River at a site located in the foothillsof the Pegu Yoma mountains, about 15 mi southeast of Taungdwingyi. The damwould have a maximum height of about 80 ft at crest elevation 630 ft MSL anda crest length of about 1,120 ft. A 200-ft wide service spillway (crestelev. 618) would be located in the left abutment, and a 300-ft wide emergencyspillway (crest elev. 625) would be provided in the right abutment, justbeyond a small (15 ft high - 185 ft long) earthfill saddle dike. Thespillways could safely pass a maximum probable flood (10,000 yr) of 24,000cfs. The outlet works, located on bedrock through the dam near the leftabutment, would have a capacity of 110 cfs at the inactive reservoir storagelevel (597 ft MSL) and a capacity of about 300 cfs at full reservoir capacity(10,520 ac ft). The reservoir would store river inflows from a 28.5 sq micatchment area and yield an average of about 16,750 ac ft of water annually.The maximum flood surcharge level would be about 627 ft MSL. Annual sedimentaccumulation in the reservoir is estimated to be 65 ac ft.

3.05 Azin Dam and Reservoir. The Azin Dam would be a homogeneous earth-fill structure and would be located on the Azin River about 1.5 mi upstreamfrom the town of Mudon. It would have a maximum height of about 92 ft atcrest elevation 125.5 ft MSL and a crest length of about 1,350 ft. The 90-ftwide service spillway (crest elev. 116.5) would be located in the rightabutment and would have a capacity of 3,550 cfs, which could safely pass amaximum probable flood resulting from a repetitive 1,000-yr design cyclonicstorm. The outlet works would be founded on bedrock through the left centralsection of the dam and have a design capacity of 50 cfs at minimum reservoirlevel. Since it would convey both irrigation and municipal water, it wouldhave an elevated intake structure to reduce turbidity. The outlet workswould consist of reinforced concrete pressure pipe from the intake to thecenter of the dam, where a steel pipeline would convey reservoir releases tothe downstream toe of the dam, bifurcating at that point to serve the town ofMudon and the irrigation system. The reservoir would have an active storagecapacity of 14,100 ac ft to regulate the high runoff resulting from the theintense rainfall within the small (2.3 sq mi) catchment area and an inactivecapacity of 500 ac ft, with an estimated annual yield of 13,235 ac ft.Estimated 50-year sediment accumulation in the reservoir is 90 ac ft.

3.06 Kinmundaung Irrigation and Drainage System. Irrigation releases fromthe reservoir would be diverted to the Left and Right Main Canals at theexisting diversion weir located about four miles downstream from the dam.The weir would be rehabilitated under the project as necessary to meet theneeds of the enlarged system. The irrigation distribution system wouldconsist of about 7 mi of main canals, 27 mi of distributary and minor canals,and necessary water courses and field ditches for delivery of project waterto the 5,000-ac service area. The canals would be unlined. The Right MainCanal would serve 2,250 ac and have a capacity of about 50 cfs, whereas theLeft Main Canal would serve 2,750 ac and have a capacity of about 60 cfs.The design capacity of the distribution system would be based on a water dutyof about 55 ac per cfs. Natural drainage channels would be improved andintermediate open drains would be provided as necessary to drain low-lyingareas and provide an outlet for storm runoff.

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3.07 Azin Irrigation and Drainage System. The irrigation distributionsystem would consist of about 12.7 mi of Main Canals and 9.1 mi of dis-tributary and minor canals. Water courses, field ditches (for paddy) andpipelines (for orchards) would divert from the canals to serve the 2,800-acirrigation service area. The Main Canal (2.6 mi long) would divide intoRight and Left branches, extending an additional 4.8 mi and 5.3 mi, respec-tively. The Main Canal would be concrete lined, as well as 2.0 mi of theRight Main and 1.4 mi of the Left Main. The remaining portion of the MainCanals and all distributaries would not require lining. The capacity of theMain Canal would be 60 cfs. The Right Main Canal would serve 650 ac oforchards and 750 ac of paddy and have a capacity of 30.5 cfs. The Left MainCanal would serve 200 ac of orchards and 1,250 ac of paddy and have acapacity of about 30 cfs. Design capacities of the Main Canals correspondto requirements during the peak day of the peak month. The design capacityof the irrigation system was based on an average water duty of about 50 acper cfs. Natural drainage channels would be improved and smaller inter-mediate drains would be provided in the paddy areas to prevent the build upof storm runoff and to provide drainage for harvesting.

3.08 Mudon Water-Supply System. Geologic conditions preclude groundwaterdevelopment in the Mudon area. Below 100 ft, the most common material islaterite with some limestone. The few drillings carried out in the past andthe geological character of the area suggest that there is little potentialfor finding a deeper aquifer that could provide an adequate and protectedsource of groundwater for a large-scale water supply system. In contrast,storage provided by the project on the Azin River immediately upstream fromMudon could provide a full water supply for Mudon, in addition to irrigationrequirements of 2,850 ac during the dry season. Water supply facilitiesprovided by the project would be designed to meet the projected demands ofyear 2001. First stage facilities would be adequate to supply a peak dailydemand of 2.36 IMg. These facilities would consist of: (i) a 1,000-ft longpipeline, with a capacity of 2,600 Igm (7 cfs) from the outlet of Azin Dam tothe filter plant; (ii) a filter plant with a slow-sand filter system and aclear-water reservoir; (iii) a pumping plant with two 850 Igm pumping units,chlorination facilities, and space for a third unit for increased supply;(iv) a service and head regulating reservoir with first-phase capacity of130,000 Ig; and (v) a water distribution network including about 13 mi ofpipelines, 30 fire hydrants, 140 public standposts and provisions forhousehold hookups. Distribution system pipe sizes would range from 3 to 12inches in diameter. Living quarters would be provided for O&M staff as wellas a workshop and storage facilities. Annex 2, Table 4, provides details andbasic costs of the water supply component. The average investment cost percapita, based on year 2,000 population, is US$62 equivalent in mid-1982prices.

3.09 Water Courses and Field Ditches. The water courses in the Kinmun-daung service area would convey water from the canal system to each farmblock, averaging 25-50 ac. Individual farm units within each block wouldaverage about 5 ac in size. The project would provide turnouts for each farmunit, however water users would be responsible for constructing field ditches

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from the water courses within the farm block. Some rough levelling would berequired (estimated at 10% of the area) and would be provided by the project.

3.10 The water courses in the Azin service area would convey water fromthe canal system to irrigation blocks averaging 25-30 ac in the paddy areaand 25 ac in the orchard areas. Average farm sizes would be about 8 ac inthe paddy areas and 4 to 5 ac in the orchard areas. The orchards in theupland areas would be developed primarily on new land. The project wouldprovide a low pressure piped-distribution system from the open canals in theorchard areas, with risers and outlets for each farm.

3.11 For both subprojects, service roads would be provided along the mainand distributary canals to provide access to each service block. Existingdrainage channels would be improved where necessary and intermediate surfacedrains would be provided in the paddy areas to remove excess surface water.

3.12 Construction Camp and O&M Headquarters. A construction camp,including office, laboratory, workshop and storage buildings and quarters forstaff would be constructed in the vicinity of each damsite. Servicefacilities (electric and telephone lines, water supply and sanitaryfacilities) also would be provided, as well as improvements to the dam accessroads. Upon completion of construction, the camps would be utilized as O&Mheadquarters for each scheme.

3.13 Agricultural Extension. Given the remarkable success of the WholeTownship Extension Program (para 1.04) in promoting known technology, stepswould be taken to strengthen the ongoing extension programs in both agricul-tural areas in regard to cropping patterns, water management and agronomicpractices. The extension program would require provision of additionalstaff, regularly scheduled farm visits, on-farm demonstrations and pest anddisease control (especially for cotton). Because of a lack of trainingfacilities for tree crops and water management in Burma, short-termin-service training abroad would be provided for Subject Matter Specialists(SMSs). Special attention would be given to the upland fruit orchards in theAzin service area, where the diversity of tree crops and intercropping wouldnecessitate a higher density of extension staff. Extension staffing require-ments are shown in Annex 6, Chart 3.

3.14 The project would operate research and demonstration plots at thecentrally located research farm at Kinmundaung and provide at least oneon-farm demonstration in each village tract as soon as irrigation water isprovided by the project. The demonstration plots would study water manage-ment for furrow irrigation and associated agronomic practices, test theperformance of various cropping and water management systems and train exten-sion staff in efficient on-farm development for irrigation and water manage-ment. At Azin, several trials and demonstrations would be set up at theexperimental orchard farm at Kanglay during 1983. At least one demonstrationplot would be laid out for every 200 ac of orchards, involving differentfruit trees, intercropping and spacing.

3.15 Agricultural Research. At Kinmundaung, the project would establisha new training and research farm of about 50 ac. Research farm activities

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would focus on agronomic requirements, management practices and irrigationwater utilization as applied to the cropping systems envisaged in the projectarea. Special attention would be paid to cotton cultivation and watermanagement, particularly rotational irrigation cycles for the range of cropsto be grown. The research farm would be coordinated by the AgriculturalResearch Division of AC. Equipment provided (Annex 2, Table 7) would includetractors, sprayers, power tillers, and irrigation equipment. Anagro-climatological station would be set up to facilitate experimentationon water management. Training equipment and transportation would be madeavailable to research and extension staff to facilitate their work.

3.16 The two existing research farms in the vicinity of the Azin sub-project would be expanded and strengthened by providing tractors, equipment,buildings and transport. A full agro-meteorological station would be estab-lished at one of the research farms, while rain gauges would be installed atthe other. Training facilities for extension workers and farmers would beprovided at one of the research farms. Double cropping of paddy and irriga-tion and rotational water management practices would receive primary atten-tion at the Central Paddy Research Farm at Mudon. Management practices,spacing arrangements and crop water requirements for different fruit crops(of varying maturity), with and without intercrops, would be researched atthe Kangalay farm.

3.17 State Orchard Farm. In view of the relative lack of experience ofparticipating farmers in orchard establishment, and based on the successfuloperation of the nearby state owned rubber estate (Cr. 879-BA), GOB wouldestablish a 250-ac (net) State Orchard Farm in one block of State-owned landin the upland area of the Azin service area. Unlike the existing KangalayResearch Farm, the proposed farm would be operated on a commercial basis bythe Horticulture/Vegetables Section (HVS) of AC. The main orchard cropswould be pomelo, durian, and mango, with inter-cropping of pineapples,bananas and vegetables during the maturing period of the orchards.Administration and storage buildings, shops, staff quarters, and equipmentand vehicles would be provided under the project (Annex 2, Tables 3 and 7).The remaining 600 ac (net) of the uplands are privately held and also wouldbe planted principally to orchards. The project would providepiped-irrigated facilities to all orchard farms. It is expected that about250 orchards held by about 370 families would be established. The State Farmwould provide storage facilities as a central depot for private holders.

Strengthening of Implementing Agencies

3.18 Consultancy Services. During the last few years, operations of theID have expanded rapidly. Sanctioned staff positions increased from about6,800 in 1973 to 19,500 in 1981 and the number of major projects underimplementation from 8 to 16. The budget has increased nearly seven-foldduring this period and the rapid expansion has created strains within theorganization. A major reorganization has been proposed including strengthen-ing of the central division, particularly Planning and Design, which have notexpanded commensurately with the expansion of ID-s overall activities.Strengthening of planning and design capability is a top priority and GOB hasagreed that consultancy services for this purpose be included in the proposed

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project. A total of 76 man-months of consulting services would be providedfor (a) in-house advisory services in general planning and training, (b)preparation of a second tank irrigation project, and (c) preparation ofdetailed designs for one major sluice structure for the proposed Lower BurmaPaddyland Development Project, Phase III. Five man-months of consultancyservices would also be provided to HD and Mudon TDC for review of detaileddesigns and tender documents for the Mudon water supply system and to assistin establishing necessary accounting, billing and collection system.

3.19 It is envisaged that the consultants provided to ID would be from aninternationally reputable consulting firm and those assisting HD and MudonTDC would be recruited individually. Draft terms of reference for the con-sultants are presented in Annex 3. Equipment to be provided (US$1.0 M) islisted in Annex 2, Table 7. Total costs of consultancy services areestimated at US$1.0 M. Average man-month cost would be about US$12,600including billing rates, travel, per diem and other reimbursable expenses.Detailed cost estimates are shown in Annex 2, Table 5.

3.20 Training. The rapid expansion of ID (para. 3.18) has increasedtraining needs for ID staff, especially at the assistant engineer level. Theproposed consultancy services would provide on-the-job training to thosestaff. In addition, a total of 84 man-months of overseas training would begiven to ID staff (especially Planning and Design Circle) in planning,design, implementation and management of irrigation projects. A proposedschedule for such overseas training is shown in Annex 1, Chart 7. In view ofthe special importance of agricultural extension for the project, a total of42 man-months of overseas training would also be provided for subject matterspecialists of AC in water management, oil seeds, cotton and horticulture.The tentative training schedule for AC staff is shown in Annex 1, Chart 7.The total cost of overseas training for ID and AC staff is estimated atUS$0.4 M. Training of Mudon TDC staff in operation and maintenance of thewater supply system would be organized by CC at the training center in Ran-goon, where courses in plumbing, mechanical work, electrical work and super-vision of civil works are being carried out. The CC will expand its courseprogram to include water meter and instrument maintenance and repair.

3.21 A Short-Term Specialist for Dam Review. A Dam Specialist, as agreedwith IDA, would review plans during various stages of design, perform peri-odic inspections during constructon, and provide advice to ID to ensure thesafety of the dams and allied structures. The specialist currently is undercontract to review the Kinda Dam in Burma and would be retained to make areview of each dam on an annual basis. Costs to the project for these serv-ices and in-country expenses total about US$20,000. An assurance wasreceived from GOB to this effect.

3.22 Maintenance and Inspection after Construction. An assurance alsowould be obtained from GOB that they would propose to IDA, no later than oneyear before the expected completion of the dams and allied structures,appropriate arrangements to continue periodic inspections of these structuresto ensure their safety and proper operation and maintenance.

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3.23 Agricultural Credit. The project would not provide additional funds

for credit. However, farmers' credit requirements in the Kinmundaung projectarea would be increased to enable them to meet additional costs associatedwith land development, greater use of inputs and purchase of new farm equip-ment for furrow irrigation. The establishment of private orchard farms inthe Azin upland areas would require special long-term credit arrangementsto enable the farmers to survive the maturing periods of the orchards.Although intercropping of the planted area may provide some early returns,long-term institutional credit would be required to some degree. Total

credit requirements arising from the project are estimated to be K 1.3 M p.a.for seasonal credits and K 2.9 M for long-term credits. COB has assured thatthe Government would make arrangements to review agricultural credit require-ments with the potential orchard farmers in the project area to arrive atadequate terms and conditions of such credit. The review would includeprincipal amount required, interest rate, repayment and grace period, as wellas method of repayment. The credit arrangements would be completed in timeto allow orchard growers to receive required credit for the first plantingseason under the project.

Status of Field Investigations, Surveys and Designs

3.24 Reservoir Storage and Irrigation Facilities. Engineering surveys,topographic mapping, geologic investigations, soils tests, land class-ification, hydrologic and runoff studies, plan formulation, and design andcost estimates were made by ID staff. Drilling explorations were continuedto mid 1982 to obtain information needed for final location and detaileddesign of dam features and appurtenant structures. The foundation of eachdam was found to be stable, and with moderate grouting the foundations and

abutments should be water tight. Borrow areas were explored at both sitesand an adeauate quantity of suitable fill material was located in closeproximity to each dam. The height of each dam was economically determinedand is near the optimal economic and technical limit.

3.25 Rainfall measurements have been made at Kinmundaung Weir since 1960,and streamflow measurements have been made since 1958. Maximum probableflood flows at the damsite for design purposes were estimated on a regionalfrequency basis. For Azin, metereological data from the Mudon station (aboutone mile from the dam site) was used for project studies. Daily water-levelobservations have been made since 1979 at Azin damsite and these observa-tions, correlated with recorded streamflows in the area, were used toestimate runoff at the damsite.

3.26 Design of Mudon Water-Supply System. Final Engineering Designs arebeing carried out between April and October 1982, with the completion ofnecessary field investigations and surveys scheduled prior to the onset ofthe monsoon rains. This is being done by HD's in-house staff with the assis-tance of engineers from the Construction Corporation (CC). Towards the endof this period tender documents will be prepared for the supply of requiredequipment and materials. The project provides for three man-months of con-sulting services of a water supply engineering specialist to review alldetailed designs and tender documents and to advise HD's staff on completionof drawings and documents. HD has also launched a program to collect and

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analyze water samples from the Azin river on a regular basis. As a result ofthis program, the quality of the raw water from the dam can be evaluated andfirm criteria for the design of the filter plant established.

Water Demand, Supply, and Quality (Irrigation & Urban Use)

3.27 Kinmundaung. As there are no competing water demands, the full flowof the Kinmundaung River would be available for irrigation in the Kinmundaungservice area. Currently, run-of-the river flows are used to irrigate alimited portion of the area. Streamflow records or estimates at the damsiteare available from 1959 to the present and estimated runoff during the1959-81 period averaged 22,770 ac ft. Project irrigation requirements wouldbe met from regulated releases to Kinmundaung river from the proposed reser-voir, diverted from the river to the main canals (left and right) at theexisting weir about four miles downstream from the damsite. A simulatedreservoir operation study (Annex 1, Table 5) was made for the twelve-yearcritical period to size the dam and reservoir and project service area. Inthe derivation of reservoir diversion requirements, river inflows wereassumed to balance conveyance losses in the four-mile reach of the river fromthe dam to the irrigation diversion weir and an overall irrigation efficiencyof about 50% (51% for paddy crops and 49% for upland crops) was used. Basedon the cropping pattern and cropping calendar assumed for the 5,000 ac serv-ice area (Annex 1, Table 7 and Chart 1), the average yield of the reservoirwould be about 16,750 ac ft. The annual irrigation shortage would be mini-mal, about 1% of average annual demand (a maximum of 9% in one year of thetwelve-year study period). Analyses of water samples from the river showsthe water to be of excellent quality for irrigation use.

3.28 Azin. Irrigation water for the Azin service area and urban waterrequired by Mudon would be supplied from the regulated runoff of the AzinRiver basin provided by the proposed Azin Reservoir. Although the catchmentarea above the damsite is only 2.32 sq mi, the extremely heavy rainfallduring the five-month rainy season (averaging 188 in per year) results in anaverage annual streamflow at the damsite of about 14,190 ac ft (or 13,500 acft if 1960-70 period of unusually high runoff period is excluded). A simu-lated reservoir operation study was made for the twelve-year (1968-79) criti-cal runoff period (Annex 1, Table 5) using the proposed cropping pattern andcalendar shown in Annex 1, Table 7 and Chart 2. The study indicates thatan active reservoir storage capacity of 14,100 ac ft would yield an aveageannual useable water supply of 13,235 ac ft, which could supply projecteddemand with only minimal shortage (less than 1%).

3.29 In the derivation of the Azin reservoir diversion requirements, watersupply estimates for Mudon were based on an average per capita water use of20 Iged for standpipe users and 40 Igcd for house connections, resulting in ayear 1998 total requirement of 1880 ac-ft (14% of the total reservoir yield).In this respect, assurance was received from GOB that an average dailyallocation of 1.4 IMgd and a maximum flow of 1,700 Igm would be made avail-able from Azin Reservoir for Mudon. Irrigation requirements were based onoverall irrigation efficiencies of 59% for the orchard areas (utilizingconcrete-lined canals and piped distribution systems) and 51% for the paddyareas. In addition to supplying the full water supply needs of Mudon to year

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1998, the project would provide the full irrigation requirements of theochards (850 ac) and the paddy crop (2,000 ac) during the dry season, as wellas a supplemental irrigation supply for paddy nursery and pre-irrigationduring the wet season. The additional water supply requirements of Mudonbeyond year 1998 levels of use would be supplied from the reservoir byexchanging some localized unused inflow from adjacent areas for irrigationuse. Although only one water quality sample has been taken from the Azinstream, analyses showed it to be suitable for irrigation without treatment.Additional samples will be taken and tested to design the sedimentation andtreatment facilities to be provided for the Mudon water supply under theproject.

Equipment and Vehicles for Construction

3.30 The project is envisaged as the first of a series of medium tankirrigation projects and would provide a significant amount of heavy construc-tion equipment and vehicles to be used initially on Kinmundaung and Azin andsubsequently on other tank irrigation projects in Magwe Division and MonState. Other equipment component, therefore, is tailored to these needs.

Cost Estimates

3.31 The project is estimated to cost US$27.1 M, including import dutiesand taxes of US$1.32 M, reserved procurement of US$1.0 M and US$3.57 M forprice escalation. Foreign exchange costs would be about US$13.1 M, or 48% oftotal costs. Costs were based on prices prevailing in December 1981 and wereupdated to July 1982 price levels. Administration and engineering costs arebased on proposed organizational arrangements and operational expenses, andwould amount to about 12% of construction costs. Physical contingencies wereestimated at 15% of civil works costs. Price contingencies were estimated onthe basis of annual inflation rates of 8% in 1982 and 1983, 7.5% in 1984, 7%in 1985, and 6% in 1986. Since about 50% of project costs would be for thepurchase of equipment and vehicles in the first year of the project, pricecontingencies would be only about 15% of base costs, including physicalcontingencies. Cost estimates are detailed in Annex 2, Table I through 8.and are summarized below:

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Summary Cost Estimate /a

Item Local Foreign Total Local Foreign Total F.E------ Kyats M ----- --- US$ M ------- %

Kinmundaung

Civil Works 19.4 2.6 22.0 2.70 0.36 3.06 12Equipment & Vehicles 6.7 26.4 33.1 0.93 3.67 4.60 80Subtotal 26.1 29.0 55.1 3.63 4.03 7.66 53

Azin

Civil Works:Dam, Irrigation &Agric. Support 17.8 2.3 20.1 2.47 0.32 2.79 11

Mudon Water Supply 11.9 3.7 15.6 1.66 0.51 2.17 24Equipment & Vehicles 8.9 31.0 39.9 1.23 4.31 5.54 78

Subtotal 38.6 37.0 75.6 5.36 5.14 10.50 49

Strengthening Imple-menting Agencies

Technical Assistance& Training 0.7 9.5 10.2 0.10 1.32 1.42 93

Equipment & Vehicles 2.5 5.4 7.9 0.35 0.75 1.10 68Subtotal 3.2 14.9 18.1 0.45 2.07 2.52 82

Engineering &Administration 10.4 - 10.4 1.44 - 1.44 0

Physical Contingencies 8.9 1.3 10.2 1.24 0.17 1.41 12

Project Base Costs 87.2 82.2 169.4 12.12 11.41 23.53 48

Price Contingencies 13.4 12.3 25.7 1.86 1.71 3.57 48

Total Project Costs 100.6 94.5 195.1 13.98 13.12 27.10 48

/a Includes duties and taxes amounting to US$1.32 M, and reservedprocurement of US$1.0 M. The total costs net of duties, taxes andreserved procurement amount to US$24.78 M.

Financing

3.32 The proposed IDA Credit of US$19 M would finance about 77% of totalproject costs, including the full foreign exchange cost of US$13.1 M andabout 51% (US$5.9 M equivalent) of local costs, net of duties, taxes andreserved procurement. GOB would finance about US$8.1 M equivalent includingUS$1.0 M for reserved procurement. Since the Mudon Water supply facilities

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would be constructed by CC under agreement with ID utilizing project funds,

there would be no on-lending arrangement between GOB and the Mudon TDC.

Implementation

3.33 The project is expected to be completed in four years (Annex 1,

Charts 3-5). The remaining months in 1982 would be spent mainly in finaldesign, and procurement of equipment and vehicles. Final designs of dams andappurtenant structures and irrigation facilities are expected to be completedby December 1982. Organizing and training staff, constructing camps andaccess roads, and clearing and preparing dam sites would be undertaken inearly 1983. Construction of the dams and irrigation facilities is expectedto start after the end of the rainy season in 1983. Dam fill would be placedin three working seasons. During the third dry season, river flows would bediverted through the outlet works while the final fill section is placed.

3.34 Construction of the canals and distribution systems is expected tostart in late 1983 and be completed by June 1986. Since no project waterwould be available until the dams are completed and water is stored, irriga-tion water deliveries would not start until November 1986. AgriculturalExtension and Research staff would be established and trained early in theprogram and extension facilities developed during the 1983-85 period. Theestimated annual schedule of expenditures is shown in Annex 2, Table 8.

3.35 Work on the Mudon water supply component is scheduled to start inApril 1983 with the tendering of equipment and materials. Actual construc-tion is scheduled to begin in November 1983 and is expected to be completedin June 1986 (Annex 1, Chart 5). During the period the reservoir is beingfilled (1986 monsoon), the treatment, pumping and distribution facilitieswould be tested prior to commencement of operations of the whole system. TheMudon TDC water supply operational staff (about 10 persons) will be requiredabout three months prior to water diversions so that they can be trained in

O&M procedures.

Procurement

3.36 Materials, Equipment and Vehicles. Materials, equipment and

vehicles, estimated to cost US$9.7 M including price escalation but net oftaxes, duties and reserved procurement, would be financed by IDA and would beprocured through ICB in accordance with IDA guidelines. However, individualitems, costing less than US$30,000 and for which international tenderingwould not be practical, would be procured after comparing prices from notless than three independent suppliers in accordance with GOB procurementprocedures acceptable to IDA. Such purchases, however, would be limited toan aggregate amount of US$400,000. A 15% preference margin, or the prevail-ing customs duty, whichever is lower, would be extended to local manufac-turers in bid evaluation under ICB procurement. Bidding documents for allprocurements estimated to cost $100,000 or more and all proposed awardsrelated thereto would be submitted to IDA for prior review. An estimatedequipment procurement schedule is presented in Annex 1, Chart 6 and detailedequipment lists are included as Annex 2, Table 7.

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3.37 Civil Works. The dams and appurtenant structures, irrigation anddrainage systems, construction camps and facilities, and land clearing(US$6.4 M) are unlikely to attract foreign contractors because of theirrelatively small size and diverse locations and would be carried out by ID,since no private construction industry exists in Burma. The ID has capacityand proven experience to carry out such works and has already designatedconstruction forces for this purpose. Costs of construction are less thatwhat would be expected under ICB. Construction of the Mudon water supplyfacilities (US$2.53 M) and the State Farm facilities in Azin (US$0.3 M) wouldbe carried out by CC, which has sufficient capacity and experience in itsspecialized di'½sion for water supply and sanitation works, as well asgeneral building and other construction works.

Disbursements

3.38 Disbursements from the IDA credit would be made for:

(a) 50% of expenditures for civil works, including the dams,irrigation and drainage systems, clearing, roads, cons-truction camps, and Mudon water supply facilities;

(b) 100% of foreign expenditures for directly imported equip-ment, vehicles and spare parts;

(c) 100% of local expenditures (ex-factory) for locally manu-factured equipment;

(d) 75% of locally procured equipment; and

(e) 100% of expenditures for consulting services and overseastraining of staff.

Disbursements for item (a) would be made against statements of expenditure,documentation for which would be retained by the implementing agencies forreview by IDA upon request and audited annually by an independent auditoracceptable to IDA. All other disbursements would be made against fulldocumentation. The ID would be responsible for preparation, review andsubmission of all applications for disbursement to IDA on irrigation worksand on Mudon Town Water Supply works. The proposed allocation of the IDACredit is shown in Annex 2, Table 9. The estimated credit disbursementschedule is shown as Annex 2, Table 10. It is expected that disbursementswould be completed by mid 1988. Experience on past IDA-financed irrigationprojects in Burma shows relatively quick disbursement profile. Disbursementsare estimated to lag expenditure projections by about one year.

Budgeting, Accounts and Audit

3.39 All GOB agencies maintain accounts according to procedures and formsestablished by the MPF. The Central Audit and Inspection Office, acting onbehalf of the Council of People's Inspectors, is responsible for auditingGOB agency accounts and is acceptable to IDA as an independent auditor for

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this project. The audit of accounts for the Mudon Water Supply componentwould be carried out by the Township Audit Office. Assurances were obtainedfrom GOB that:

(a) Separate accounts for each project component would be main-tained by respective implementing agencies and collated by theProject Implementation Committee (PIC) (para 4.09);

(b) these accounts would be audited annually in accordance withsound auditing principles consistently applied by the DirectorGeneral, Central Accounts Office, acting on behalf of theCouncil of the People's Inspectors of GOB; and

(c) PIC would send to IDA copies of the summary of the unauditedannual project accounts within four months after the end of thefiscal year, followed by certified copies of the auditedaccounts and auditor's report within nine months of the end ofeach fiscal year.

IV. ORGANIZATION AND MANAGEMENT

Implementation Responsibility

4.01 The following Ministries and agencies would be responsible forimplementing the various components of the project, however the Ministry ofAgriculture and Forests (MAF) would have overall responsibility for projectimplementation.

Agency Ministry

(a) Irrigation Department (ID) Ministry of Agriculture and Forests

(b) Agricultural Corporation (AC) -do-

(c) Agricultural MechanizationDepartment (AMD) -do-

(d) Mudon Township Development Ministry of Home and ReligiousCommittee (MTDC) Affairs (General Affairs Dept.)

(e) Housing Department (HD) Ministry of Construction

(f) Construction Corporation (CC) -do-

In addition, the Planning and Statistics Department of MAF and the GeneralAffairs Department (GAD) of the Ministry of Home and Religious Affairs, aswell as the Ministry of Planning and Finance, would be directly involved with

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implementing agencies in project coordination and management, while theAgricultural and Farm Products Corporation (AFPTC), and Myama AgriculturalBank (MAB) would be indirectly involved with project implementation.

4.02 The Irrigation Department (ID) would have overall responsibility forproject implementation and would be specifically responsible for:(a) construction of the dams and allied structures, including intake andoutlet structures for the Mudon water supply; (b) construction/rehabilitationof the Main Canals and irrigation distribution systems; (c) construction ofaccess roads, O&M buildings and camp sites; and (d) procurement of equipmentand material for construction and O&M. A new Division would be establishedin the ID to assume responsibility for project construction management. AProject Director (Superintending Engineer), would be appointed, stationed inRangoon, to head this Division, who would oversee the activities of theProject Managers stationed at Kinmundaung and Azin (Annex 6, Chart 1).

4.03 The Kinmundaung and Azin project offices would each be headed by aProject Manager (Executive Engineer) and staffed with a Geologic Investiga-tions Unit for explorations and foundation treatment, a Field ConstructionUnit for project layout and force account construction, a Mechanical Unit forequipment operation and maintenance, and an Engineering Design Unit. Thelast would be responsible for designs, laboratory analyses, constructionquality control, and quantity and cost computations. Each unit would beheaded by an Assistant Executive Engineer.

4.04 A moderate increase in ID staff would be necessary to implement theproposed project successfully within the scheduled time period. Staffassigned to the project would total about 680, including the SuperintendingEngineer, three Executive Engineers, eight Assistant Executive Engineers, and16 Assistant Engineers. Most of these positions would be filled by transfersor promotions within ID from other projects completed or nearing completion.The appointment of the Project Director and the Project Managers for Kinun-daung and Azin by the ID are conditions of credit effectiveness.

4.05 The Agricultural Corporation (AC) would be responsible for(a) strengthening extension services in the project sub-areas,(b) establishing a new research-cum-training farm in the Kinmundaung areaand strengthening the two existing farms near Mudon, (c) establishing a StateOrchard Farm in Azin, and (d) monitoring and evaluating the agriculturalaspects of the project. The AC would provide research support, intensifyextension activities, conduct training of area farmers at research/trainingfarms, and supply seeds, fertilizers and other inputs to project farmers.The AC's extension organization in both Taungdwingyi and Mudon Townships areheaded by Township Extension Managers. For the proposed project, however, ACwould appoint a Project Extension Manager (PEM) for each subproject, whowould report directly to the Division/State Extension Manager. The extensionorganization to be provided would be as shown in Annex 6, Chart 3.

4.06 Monitoring and evaluation of agricultural aspects would be carriedout by the Project Monitoring and Evaluation Unit under the Foreign ProjectsDivision in the AC Head Office in Rangoon, or other appropriate unit (paras4.13-4.15).

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4.07 The Agricultural Mechanization Department (AMD) would be principallyresponsible for land clearing and levelling in the project command areas(about 10% of the Kinmundaung proiect area and part of the 850-ac orchardarea in Azin).

4.08 The Construction Corporation (CC) would be responsible for construct-ing both the Mudon water supply facilities and the Agricultural Research Farmat Azin under agreement with ID. The Huusing Department (HD) would plan,layout and design the water supply facilities. These organizations havespecialized divisions for planning, design and construction of town watersupply facilities and no extra staff would be required. In early 1986 theMudon TDC would appoint ten staff during the final construction stages fortraining in O&M of the new facilities. The General Affairs Department (GAD)would be kept informed and consulted on the Mudotn water supply component atall times during its construction. The project organization for this com-ponent is shown in Annex 6, Chart 4e

Project Management and Coordination

4.09 To coordinate work of the various implementing agencies, a ProjectImplementation Committee (PIC) would be formed in MAF similar to the PICs forthe Lower Burma Paddy Land Development Projects I and II and Kinda Dam Multi-purpose Project. The PIC, chaired by the Deputy Minister of MAF, would becomposed of the heads of the implementing and related supporting agencies(Annex 6, Chart 1). The Project Director would serve as member-secretary ofFIC. The PIC would be responsible for: (a) administering, reviewing andapproving annual work programs and budgets; (b) reviewing quarterly progressreports; (c) establishing inter-ministerial project-related policies andsolving inter-ministerial problems; and (d) conferring with IDA on allproject-related policy matters.

Operation and Maintenance

4.10 O&M of Dams and Irrigation Facilities. After completion of construc-tion, responsibility for operation and maintenance of the dams and irrigationfacilities would be transferred to separate maintenance divisions of ID. Areview of the completed works would be made before transfer to ensure thatthe facilities are properly completed and are operational. The O&M Unit forKinmundaung would be formed under the Magwe District Headquarters section ofthe ID's Meiktila Maintenance Division. The Azin O&M Unit would be under theMoulmein District Headquarters of the Rangoon Maintenance Division. EachUnit would be headed by an Assistant Engineer. Details of the O&M organiza-tions to be established are showrn in Annex 6, Chart 2. Equipment andvehicles required by the various O&M units would be provided by the project.

4.11 The O&M Units would operate and maintain the dams and irrigationfacilities down through the distributary canals. Water courses and fieldditches would be operated and maintained by the water users under the direc-tion of the Assistant Canal Inspector. Water would generally be availablefull time in the distributary canals, and deliveries would be rotated in thewater courses and field ditches. The Canal Inspector would check the crops

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grown, time of planting and harvesting, and irrigation practices. Theseactivities would be coordinated with the project Agricultural ExtensionService. O&M of project facilities is estimated to cost Kyats 36-43 per acannually (Annex 2, Table 6).

4.12 O&M of the Mudon Water Supply. After completion of all projectworks, the Mudon TDC would take over responsibility for O&M during thetest-run period. This transfer would be coordinated by PIC. The projectwould provide two field vehicles for maintenance crews, as well as necessaryequipment and handtools. During the test-run period, the maintenance crewswould begin installation of house connections, so that about 1,700 houseconnections would be in place when full-scale operations begin in November1986. In 1986 and early 1987, during the last construction years, a finan-cial consultant, provided under the project, would train the finance staff ofthe Mudon TDC in appropriate public utility accounting, billing and collec-tion and help TDC to install the necessary accounting system.

Monitoring and Evaluation

4.13 Monitoring and evaluation efforts would be directed to determiningproject implementation problems and progress and to assessing the agricul-tural and socio-economic impacts of the project. The monitoring programwould evaluate (i) overall project implementation; (ii) establishment andfunctioning of the applied research-cum-demonstration farms and the StateOrchard Farm; (iii) water management activities and effectiveness; (iv)agricultural extension progress and effectiveness; (v) agricultural andsocio-economic impact of the project; and (vi) project implementation aspectsapplicable to planning and implementation of future tank schemes.

4.14 Agricultural surveys would be required to provide a consistent database for monitoring agricultural development. An assurance was obtained fromGOB that the Project Monitoring and Evaluation Unit (PMEU) of AC or othersuitable unit would conduct benchmark surveys at two years intervals begin-ning January 1984 and ending January 1992, covering inter alia, croppedareas, yields, use of farm inputs, and project related changes in area,employment opportunities and in farm and family incomes. An assurance wasalso received that AC would submit its monitoring proposal to IDA by June 30,1983.

4.15 For Kinmundaung, investigations would be conducted to determinesystem water-use efficiencies and the reliability and equitability of waterdeliveries. In Azin, the suitability of alternative irrigation systems fororchard crops would be investigated. Although studies would be initiatedafter the project construction is completed, they would be of considerablevalue to the success of future schemes. During the initial years of orchardestablishment in the Azin project area, regular surveys would be conducted todetermine the adequacy of credit and seedling and other input supply. Oncefruit orchards mature (6-9 years after project completion), transport andmarketing aspects would be continuously monitored by AC.

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V. PRODUCTION, MARKETING, FARM INCOMES AND COST RECOVERY

Agricultural Development With the Project

5.01 The proposed Kinmundaung subproject would provide supplementalirrigation for wet season crops in the full service area and full irrigationof a limited area during dry season. Special efforts would be made to betterutilize available rainfall. The cropping intensity is expected to increasefrom about 85% to about 150% in the project area within a few years of com-pletion of project facilities. While paddy would be the most important crop,cotton, groundnut, sunflower and sesame also would be cultivated. For thefinancial and economic analyses, the crop mix shown in Annex 1, Table 7 hasbeen used with the associated crop calendar in Annex 1, Chart 1.

5.02 In Kinmundaung, the area under paddy during the wet season wouldchange from about 2,500 ac of primarily local paddy at present to 500 ac oflocal paddy and 2,500 ac of HYV paddy. In the higher lying lands (about2,000 ac), the current crops (sesame, maize and beans) are expected to bereplaced by LS cotton, sesame, and sunflower. Depending upon wateravailability, groundnut also would be grown during the dry season. Actualachievement of this cropping pattern would be dependent upon successfulimplementation of the water management and extension programs. More reliableand expanded water supplies, introduction of HYVs, greater use of inputs, andimproved cultural practices are expected to result in significantly higheryields. Local paddy variety yields are expected to double (0.4 to 0.8tons/ac) and HYV paddy to treble (0.6 to 1.7 tons/ac).

5.03 In Azin (Annex 1, Table 7 and Chart 2), the existing paddy area isideally suited for a second paddy crop, and the future cropping intensitywith the project is expected to reach about 200%. In addition, the uplandareas would be planted to fruit trees and intercropped with bananas, pineap-ples, and vegetables until the main orchard crops mature. In the monsoonseason, paddy yields are expected to increase as a result of improveddrainage, more effective extension, and intensified use of inputs. Theaverage yield of local paddy varieties is expected to increase from 0.8 to1.0 tons/ac and HYV paddy yields from 0.9 to 1.5 tons/ac. Dry season HYVpaddy would average about 1.8 tons/ac. Expected yields of fruit trees andother crops in the upland area are based on results obtained in similar areasunder high levels of management, input availability and dependable irrigation(Annex 1, Table 7).

Agricultural Development Without the Project

5.04 Without the project, cropped areas and cropping patterns are expectedto remain broadly constant in both subproject areas. Although in Kinmundaungsome yield increases could result from continued progress of the Whole Town-ship Extension Program, such increases might well be off-set by furtherdeterioration of the run-of-the-river irrigation system, resulting in moreunreliable water supplies and discouraging use of higher levels of inputs.Thus, only marginal yield increases have been assumed without the projectfor local paddy and other rainfed crops such as sesame, maize, beans, and

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sunflower, whereas HYV paddy yields under irrigation have been estimated torise by about 15%. For Azin, no development of the upland area is expectedwithout the project, whereas paddy yields in the river delta have beenestimated to increase slightly, primarily due to progressive adoption ofimproved practices and higher use of fertilizer. However, inadequatedrainage in much of the low lying areas mitigates against significantincreases beyond these levels without the project.

Overall Agricultural Impact

5.05 Annex 1, Table 7 summarizes expected overall agricultural impact ofboth schemes under the project. At full development cropping intensitieswould almost double for both subprojects. Incremental paddy production wouldtotal about 8,100 tons p.a. and the value of cash crops is expected to totalabout K 8.8 M per year on average especially through introduction of LScotton in Kinmundaung and new orchard establishment in Azin.

Marketing and Pricing of Project Output

5.06 Paddy. Projected incremental paddy production is estimated at 3,900and 4,200 tons at full development for the Kinmundaung and Azin areas,respectively. Part of this production would be marketed through AFPTC.Since 1975, AFPTC has procured about one third of national paddy production.Incremental paddy production from the two subproject areas would enhance riceexports marginally. Moreover, the quantity of rice currently shipped by GOBfrom Lower Burma to alleviate deficits in the Kinmundaung area would bedecreased, thereby releasing rice from GOB stocks for export. Currently,official movement of rice within the country totals 1.8 M tons, of whichroughly 63% represents internal consumption supplies.

5.07 After meeting government procurement quotas, farmers are permittedto sell any remaining surplus, at open market prices. Depending on quality,market prices are about 50-100% higher than GOB-controlled prices, thelargest difference being in rice-deficit regions. Nevertheless, marketprices are still only about 35-50% of international market prices afteradjustment for domestic transport, handling, and processing costs.

5.08 In the Kinmundaung area, paddy is milled in Taundwingyi Township atthe AFPTC-owned rice mill or at private establishments. Their combinedcapacity is about 40 tons per day, but at present they operate for only a fewmonths annually. In the Azin area, milling is done almost exclusively byprivate millers; their capacity is considered adequate for anticipated addi-tional output. GOB-procured paddy is milled at the rate of K 26 per ton ofmilled rice. The rate charged by private millers is about 50% higher.

5.09 Seed Cotton. Officially, TexCorp procures 100% of all medium-staplecotton production (estimated to be 18,000 tons in 1980/81) and processes itto supply lint to its textile mills. Farmers purchase seed and othermaterial inputs from AC, financing these and other cultivation costs byadvance purchase payments from TexCorp. TexCorp is also responsible forcotton ginning, by-product processing, baling, lint marketing, and yarn and

textile manufacture. By-product cottonseed is either allocated for AC seed

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sales or is processed for oil and seedcake. Cake is exported through AFPTC,while cottonseed oil is distributed internally as cooking oil and for soapmanufacture. Incremental cotton products from the Kinmundaung subproject(estimatd at 750 tons p.a. at full development) would be processed at the

ginning, baling and oil extraction factory at Aung Lan, about 60 mi away.This factory currently operates below capacity for lack of raw materials.

5.10 Incremental cotton production would augment TexCorp's total procure-ment of LS cotton by about 4%, thus reducing imports by an equivalent quan-

tity. Currently, cotton imports (yarn, thread and fibre) account for about7% of total value of non-capital imports. Between 1974-76, the procurementprice of LS seedcotton was increased twice. At K 4,278 per ton, the currentTexCorp price is double the 1974 price; nevertheless, it is still about 20%below the corresponding farm-gate price based on international levels. Smallquantities of cotton are reportedly being traded in the private sector attwice the government price, however GOB considers this acceptable to provide

incentives to growers.

5.11 Other Annual Crops. Under guidance by the Ministry of Cooperatives,

township cooperatives are heavily involved in the procurement of cottonseed,groundnuts, sesame and sunflower for vegetable oil. From 20 to 50% of theseoilseeds, depending on the crop, are procured, milled and retailed bycooperatives. Almost equal amounts are procured, processed and marketed byprivate entrepreneurs. The remainder is kept for home consumption and milledby private millers. Open market prices are 30 to 50% higher than thoseoffered by cooperatives. Although at full development oilseed productionwould increase almost seventeen fold over the present production level,demand is high and the public and private processing and marketing facilitiesare expected to expand accordingly. Production of groundnut and other oil-seeds is currently encouraged to reduce the economy's dependence on foreignsupplies of vegetable oils. Between 1976-79, average annual import of thesewas valued at about US$1OOM. At present, the domestic oilseed market is freefrom government control, and production is not subject to Government procure-ment. Maize, beans and pulses are produced in the country mostly for domes-tic consumption, but a small amount is also exported through AFPTC. Thegovernment procures about 17% of maize production and 13% of beans andpulses. After procurement, any remaining marketable surplus is tradedprivately. For most pulses, procurement prices are about 45% of free marketlevels.

5.12 Orchard Crops (Azin). Mudon Township currently produces about 1,350

tons of fruit, all of which is marketed privately, mostly in fresh form.Fruits reach consumers mainly through two channels: (a) from the farmers

themselves, who harvest, grade, store, transport and retail their products;and (b) through traders who purchase the fruit from the farmers and thengrade and market the products. As a result of the project, incrementalproduction of orchard crops would reach about 7,450 tons by year 2000 and

intercrops (bananas and pineapples) about 3,300 tons by 1991. The bulk ofthe incremental production is expected to be marketed privately. The privategrowers would be given access to storage and transport facilities providedfor the State Orchard Farm. The private farmers who obtain credit from MABwould be expected to sell their products at the State Farm, at which point

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MAB would recover loans. Incremental production can be absorbed fully bynearby urban centers (Mudon, Moulmein, and Rangoon). The Azin orchard schemecould stimulate export promotion in potential markets like Singapore, HongKong, and Japan. The success of this scheme depends mainly on efficientmarketing channels. GOB is planning to conduct a marketing and storage studyfor fruits and vegetables to determine future local and export needs forthese facilities.

Farm Income

5.13 Non-orchard Farms. Farm budgets have been estimated for five-acnon-orchard farms in the Kinmundaung and Azin subproject areas. Theestimated farm budgets in Table 5.01 show a summary of present conditions andprojected development with and without project. Details of the farm budgetestimates are provided in Annex 4, Tables 2a and 2b. Corresponding croppingpatterns and physical inputs and output quantities are shown in Annex 1,Tables 7 and 8. These quantities have been valued at estimated 1990 finan-cial prices in 1982 constant kyats as specified in Annex 4, Table 1.

Table 5.01Present and Projected Net Farm Family Incomes

(Non-Orchard Farms)

ProjectFuture Future Related

Present Without With Increase

Farm Type (Acres) P W W ((W-W)/W)-------- Kyats '000s----------------

KinmundaungAnnual Crops 5 1.3 1.4 8.1 486%

AzinAnnual Crops 5 3.7 3.9 7.1 81%

5.14 As a result of the Kinmundaung subproject, average net family incomeat full development (year 15) is projected to be narly five times the levelexpected without the project. This dramatic difference is accounted for byincreases in cropping intensity and productivity, as well as changes incropping pattern. In particular, with an assured water supply, farmers wouldbe able to plant substantial proportions of their land to high value cropssuch as cotton and oilseeds. Indeed, on the average farm, total revenue fromcotton and groundnut cultivation would account for about 50% of projectedcash inflow from crop production.

5.15 Assuming with-project yields and input requirements, net benefit toHYV paddy cultivation would be about K 710/ac, assuming roughly one-third of

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production would be procured at the government price. 1/ Net benefits fromoilseed cultivation is about K 900/ac (sesame and groundnut). For cotton,the corresponding long-term figure is K 2,070/ac. These calculations indi-cate that pecuniary incentives implied by existing price conditions aresufficient to induce a high level of farmer participation in the new croppingpattern proposed in the subproject. 2/ At full development (1990), the Azin(paddy area) subproject would increase net income by about 80% over withoutproject levels. This increase is largely attributable to a two-fold increasein cropping intensity made possible with irrigation. Although income fromoff-season work would diminish, the reduction would be more than compensatedby increased income from agricultural production. As in Kinmundaung, part ofthe paddy production is procured at GOB-controlled prices, implying a netbenefit 3/ to HYV dry season paddy cultivation of about K 760/ac. Althoughthis return is comparable with the corresponding amount for Kinmundaung, netfarm family income at full development is lower in Azin because crop optionsare limited to paddy only, whereas farmers in the Kinmundaung area can planthigher-value crops such as cotton and oilseeds.

5.16 Orchard Farms. A Farm budget was estimated for a four ac-farm forthe privately-held Azin orchard farms (Annex 4, Table 2c). The assumedcropping pattern, production requirements and yields are shown in Annex 1,Tables 7 and 8. Due to the long maturing periods of main crops, the averageorchard-farm family would have a negative net farm income before financingduring the first year of establishment even with the cultivation of inter-crops. A significant amount of long-term credit would be necessary to reducethe initial burden of the farmers. However, once past the initial criticalperiod of about seven years, family income would dramatically increase and,at full development (about 20 years after settlement), average net familyincomes would be well over ten times the estimated current level of incomesof participating private farmers.

5.17 The Horticulture/Vegetables Section (HVS) of AC, which would beresponsible for the operation of the State Orchard Farm, is operated as agovernment department. As such, all revenues are paid over to GOB and bothcapital and operating expenses are met from GOB budgetary allocations.Annex 2, Table 2d, shows incremental costs of establishing the State Farm,and the financial cash flow of HVS. The cash flow shows a net outflow forHVS of about K 4.8 M during Year 3 to 5. From Year 6 onward, however, theproject would result in an annual net inflow to HVS increasing from K 0.1 Min Year 6 and reaching K 4.2 M by Year 20.

1/ In computing farm incomes, compulsory paddy quotas were valued at theGOB-controlled price and the balance of paddy production was valued at thelocal free market price. Net benefit is before excluding cost of labor.

2/ Assuming labor requirements given in Annex 1, Table 8, the implicit wageto family labor is as follows: HYV paddy K 14.2/md; sesame K 27.3/md;groundnut K 19.1/md; and cotton K 40.5/md.

3/ Before excluding cost of labor.

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Agricultural Cost Recovery

5.18 Unlike many other countries in Asia, Burma presents a unique case inirrigation cost recovery. By setting unusually low procurement prices, GOBrecovers not only the full cost of O&M but also a bulk of capital costs.Cost recovery was analyzed from two perspectives. In Case I, nominal GOBofficial supply and procurement prices increase by the projected inflationrate, 6% p.a. (1983-1995), so that these prices are maintained in real terms.In Case II, nominal prices are kept constant to reflect GOB's traditionalaversion to price adjustments. This policy implies that real pricesdeteriorate at 6% p.a. Cost recovery under Cases I and II for both sub-projects are summarized in Annex 4, Table 3.

5.19 Costs to GOB have been estimated in terms of present values (PV) 1/over the 30-year project life of: (a) total capital costs (excluding pricecontingencies, taxes, and duties), (b) recurrent O&M equipment replacementexpenses, and (c) subsidies on incremental fertilizer inputs based on dif-ferences between international prices and GOB-controlled prices.

5.20 Recoveries by GOB have been estimated in terms of PVs of GOB compul-sory procurement of paddy and cotton and land taxation. The compulsory paddyprocurement system imposes an implicit tax on paddy growers that increasesprogressively with farm size and yields, and provides a significant costrecovery source. This amount has been estimated as the difference betweenthe projected export price of rice and GOB's procurement price plus process-ing, storage and transport costs. GOB's compulsory purchase of incrementalseed cotton production in the Kinmundaung subproject area provides a similarcost recovery mechanism. This was calculated as the difference between GOB'spurchase price and the weighted average of projected border prices of cotton-seed oil, lint (import substitutes), and cottonseed cake (export),appropriately adjusted for processing, storage and transport costs.

5.21 Depending on land quality and the availability of irrigation/drainageinfrastructure, farmers in project areas currently pay land taxes ofK 0.50/ac for poor quality dryland, K 3.50/ac for irrigated paddyland,K 6.0/ac for fertile flood banks planted to onions, and K 12.0/ac for somegarden lands. Anticipating standard tax reassessment by the Settlement andLand Record Department (SLRD), incremental tax revenues in project areaswould be generated through increases in land taxes, conservatively estimatedto average about K 2/ac p.a. in nominal terms beginning in Year 10. Inaddition to land taxes, a new Water and Irrigation Tax Law was enacted bythe Pyithu Hluttaw (Peoples' Assembly) in March 1982. Under this law, anycultivated land supplied with water by irrigation works built and maintainedby the State will be subject to an annual tax of K 10 per ac.

1/ A discount rate of 8% p.a. was assumed to be the financial opportunitycost of capital to GOB. Capital costs are net of residual value of con-struction equipment, and include physical contingency costs.

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5.22 Cost recovery rates corresponding to Cases I and II are 47% and 71%

for Kinmundaung and 37% and 44% for Azin, respectively. In actuality, these

rates would likely fall betwen Cases I and II. Although any price adjust-ments would increase GOB's initial outlay, this may be offset by increasedprocurement if production proves sufficiently price-elastic. Additional costrecovery revenues could be generated through future increase of water chargesbut the present system of paddy and cotton procurement already imposes asubstantial tax on farmers, and further levies could lower overall recoveryrates by reducing farmers- production incentives.

5.23 Rent recovery rates at full development are over 100% for Kindmaun-daung and 200% for Azin paddy land, mainly through the indirect agriculturaltaxation by official procurement. Rent recovery for the Azin orchard is nilbecause there would be no official procurement of orchard produce and thecurrently envisaged land and water taxes cover only a fraction of the projectrent. The small rent recovery for orchard, however, is justified since itwould give an incentive to private farmers to enter into new ventures with

high risks.

Financial Aspects of Mudon Water Supply

5.24 General. Since Mudon does not have a public water supply at present,there is no specific basis on which to build a financial analysis based onhistoric data. In order to get an appreciation of the results of the firstsix years of project operation (1986/87-1991/92), the normal recurrent costof a water supply project of this magnitude has been extrapolated using theexpected price escalation for the future years to arrive at current annualprice levels (Annex 5, Table 3).

5.25 Revenues from Sales of Water. Proposed tariff levels have been deter-mined considering: (a) affordability based on annual family income; and (b)

maximum possible cost recovery and minimizing of subsidy needs. The affor-dability has been estimated as a percentage of family income. No recentinformation is available on income representing the absolute poverty level inBurma. However, there is every indication that the abosolute poverty pointis not higher than an annual family income of K 2,400. With a minimumreported family income level of K 2,500 per year (at 1982 price level) a"life line" tariff does not have to be taken into account in Mudon.

5.26 It has been assumed that families with annual income ranging fromK 2,500 (lowest reported family income at 1982 price levels) to K 4,000(overall median family income) would use water supplied predominantly throughstandposts. The cost for this water consumption should not exceed 2% of thelowest family income at 1988 price levels (K 3,350 per year - K 2,500 plus5% p.a. for escalation), assuring the lowest possible tariff for the compara-tively poorest segment of the Mudon population. The resulting tariff wouldbe K 0.59 (US cents 8.2) per m3.

5.27 House connections would be provided for those families with incomes

ranging from K 4,000 (overall median family income) to about K 30,000 p.a.(at 1982 price level). For those families with income higher than K 4,000,

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the annual outlay for water would amount to about 4% of the group-s averageincome. The resulting tariff would be K 1.86 (US cents 26) per m 3.

5.28 On average, the revenues from sales of water (current prices) areexpected to increase from K 1.17 (US cents 16) per m3 in FY1987/88 to K 1.30in FY1991/92 (US cents 13). The increase is mainly due to an increasingproportion of house connections. Based on 1982 constant price levels, thoserevenues would be K 0.92 (US cents 12.8) per m3. These are similar toprevailing tariffs in South Asia. Furthermore, family income in Mudon ishigher than in most developing countries and it is therefore likely that thepopulation would be willing to pay for water at the indicated price level.

5.29 Capital and Recurrent Costs of Water Supply. The assumptions under-lying the cost calculation as well as the results are shown in detail in

Annex 5. For the purpose of financial analyses, allocation of the jointcosts of the Azin dam and appurtenent structures to the irrigation and watersupply sectors has been made on the basis of water allocation (14% for thewater supply component) (para 6.08). Agreement was reached with GOB thatthe financial allocation of the capital cost of the Azin Dam to the Mudonwater supply component would be determined by GOB and IDA upon project com-pletion.

5.30 Financial Outlook. Under the assumptions described above, revenuesare expected to cover annual costs plus depreciation throughout the projectedperiod. Rates of return of up to 1.6% on non-revalued net fixed assets inoperation are likely to be achieved. In order to achieve and maintain areasonable financial position of the water supply activities in Mudon, agree-ments have been reached with GOB to permit the Mudon TDC to set tariffs atlevels to cover the cost of operation, maintenance, administration anddepreciation of the Mudon water supply facilities,as well as depreciation ofthe allocated portion of the Azin dam capital cost.

VI. BENEFITS, JUSTIFICATION AND RISKS

Overall Impact

6.01 Agriculture. The project would enable more intensive agriculturaldevelopment through construction of two medium tank irrigation schemes inareas where agriculture is currently dependent upon scarce or unevenly dis-tributed rainfall and run-of-the river diversions. The project would ensurefarmers a more stable irrigation supply, resulting in increased crop produc-tion and higher and more regular farm family incomes and employment. It wouldassist GOB-s efforts toward crop diversification, improve Burma's balance ofpayments, and reduce the regional imbalance in development activities.

6.02 Mudon Water Supply. Mudon lacks an adequate and safe drinking watersupply, which limits its further growth and economic development. Healthconditions can be expected to worsen as the population increases. Theproposed Azin Dam would provide a technically feasible, economically viable,

-34-

and long term solution for development of a public water supply throughprovision of 1.4 IMgd of safe drinking water.

Employment Effects

6.03 The Kinmundaung subproject would increase annual farm labor

requirements from about 120,000 mandays at present to about 400,000 mandaysp.a. at full development (Year 15). Currently, family labor on most farmsexceeds on-farm requirements because of low cropping intensities, andoff-farm employment opportunities are limited. The project would alleviatethese conditions by significantly increasing cropping intensities on mostfarms. Annual employment on paddy farms in the Azin subproject area wouldincrease from 61,000 mandays currently to about 179,000 mandays at fulldevelopment (Year 7), mainly in the dry season during which little farmingactivity goes on at present. Farmers' dependence on off-season work innearby urban centers would be substantially reduced. Additional employmentof about 158,000 mandays annually would be created during the first six yearsof orchard establishment; thereafter, annual labor requirements would bearound 86,000 mandays. In all cases, employment in processing, distributionand transport sectors would also be increased. This anticipated growth inlabor requirements would be sufficiently met in all cases by seasonal migra-tion from surrounding townships and through the projected increase in thelabor force in the project areas by full development.

Household Income Effects from Irrigation

6.04 Current per capita incomes in the Kinmundaung area are low (less thanK 300), principally due to the absence of an assured irrigation water supply.Subsistance agricultural conditions are likely to persist in the absence ofthe project, since little change is anticipated in the Kinmundaung economywithout it. With the project, about 40% of the population would be expectedto attain income levels above the current national average (US$180 percapita). Cotton growers would benefit relatively more than paddy growersin comparable farm size categories.

6.05 Current per capita incomes of paddy farmers in the Azin area (aboutK 730) are higher than levels prevailing in the Kinmundaung command area.The project is expected to result in significant increases in farm familyincomes in this area. At full development, per capita incomes of about 70%of the project area population would exceed the national average. The cur-rent incomes of the participating orchard farmers are similar to those of thepaddy farmers. However once past the critical period of orchard estab-lishment (about 7 years), even the smaller farms (2 ac) would surpass thenational per capita income average and later attain considerably higherincomes.

Direct Foreign Exchange Effects

6.06 The direct foreign exchange impact of the project has been assessedby comparing the gross foreign exchange value of incremental production oftradables with incremental recurrent foreign exchange costs for traded

-35-

agricultural inputs and those for replacement of O&M equipment incurred. Thefollowing table summarizes foreign exchange effects at full development:

Kinmundaung Azin---------US$…-----

Increased Production of Tradables 1.50 M 0.90 MIncremental Foreign Exchange Costs 0.15 M 0.15 M

Net Effects 1.35 M 0.75 M

Environmental Effects

6.07 The project is not expected to result in adverse environmentaleffects. Although malaria is one of the few water-related diseases found inBurma, the project is not expected to aggravate existing conditions. Inaddition to an intensified extension program which would stress increasedplant protection measures, training in the safe application of insecticidesand herbicides would be given. On the positive side, the project wouldresult in reduced flooding and improved drainage of lands within the commandarea and provide a safe and secure water supply for Mudon, resulting inenvironmental and public health enhancement in these areas. Sanitation wouldbe improved in Mudon under GOB's environmental health program. The projectwould also provide a firm water supply to two existing fish hatcheries in thelowland command area of the Azin subproject to facilitate their operation.In addition, both reservoirs constructed under the project would have sig-nificant fish production potential.

Benefits to the Economy and Economic Analyses

6.08 The Burmese economy would realize an overall economic rate of return(ERR) from total project investments, inclusive of physical contingencies, ofabout 13%. The following summarizes ERRs and NPWs from each project com-ponent and from the total project:

ERR NPW /a (K M) NPW /a (US$)

Kinmundaung 13.6 16.6 2.31Azin 12.3 17.6 2.44Project Total 12.8 34.2 4.75

/a Discounted at opportunity cost of capital (OCC) of 10%.

The economic cash flows for the subprojects are summarized in Annex 4,Table 4. For the Azin multi-purpose subproject, NPWs were also estimatedfor single-purpose options. The results show that through implementation ofthe multi-purpose project, significantly lower economic costs would beincurred to achieve anticipated output levels than were separate irrigationand water supply projects undertaken.

-36-

6.09 The following assumptions have been used for the economic analyses:

(a) Project Life and Phasing. The project life has been assumedto be 30 years including a four year construction period.Project benefits would start in Year 5 (1987). Agriculturalbenefits would reach full development in Year 15 for Kinmundaung,Year 7 for the Azin paddy area, and Year 21 for the Azin orchardarea.

(b) Prices. For internationally traded goods, prices were basedon the IBRD-projected world market prices expressed in mid-1982 currency values. 1/ Appropriate adjustments were madefor freight, handling, processing, and quality differences.Local costs and locally valued benefits were expressed inborder kyats through application of appropriate conversionfactors, principally a Standard Conversion Factor (SCF) of 0.80.Year-specific prices were used for inputs and outputs overthe 1983-1995 period, after which real prices were assumedto remain unchanged. Shadow wage rates of farm labor duringslack and peak periods were estimated to approximate respectivefinancial wages. However, during the intermediate period,shadow wage rates were estimated at 70% of financial wagesin Kinmundaung and 80% in Azin. Economic wages were derivedby adjusting weighted shadow wage rates in these periodswith SCF of 0.8 (Annex 4, Table 1).

(c) Benefits. Incremental crop benefits were based on most prob-able yields attainable with project investments with assumedbuild-up rates (paras 5.01-5.04). Town water benefits werebased on the estimated value of the consumers' willingness topay for safe drinking water. The estimates were based onweighted averages of the proposed tariff (for ten monthsa year) and the price of domestic water that Mudon residentsare currently purchasing from private suppliers during thedryest period (for two months a year at K 4.0 per drum of48 Ig or K 18.0 per m3 ).

(d) Capital Costs. For calculating economic capital costs, taxesand duties were excluded and were expressed on border bases.The project provides a significant amount of constructionequipment for this project, which can be used to developsubsequent tank irrigation schemes. Residual values weredetermined for this equipment. For the capital costs of theAzin subproject, the cost allocation between the irrigationand Mudon water supply components was based on the water

1/ Projections by the Commodity and Export Projections Division, IBRD inJune 1982. These projected prices of agricultural commodities are sig-nificantly lower than those available at the time of appraisal.

-37-

supply allocation (86% for agriculture and 14% for the Mudonwater supply).

(e) Crop Production Costs. Per ac input requirements assumed aresummarized in Annex 1, Table 8. Adjustments were made in cropproduction cost streams to reflect realistically the staggeredincurrence of costs and bebefits in agricultural activities.

(f) Other Project Effects. The following minor or non-quantifiableeffects have been omitted from the economic analysis:

(i) incremental employment generated from commodityprocessing, handling, transport, and marketing.

(ii) improved sanitation, reduced health care costsand improved labor productivity.

(iii) relieving manpower input (mainly by women) for productivefunctions such as family-based industrial activities dueto saved labor for carrying domestic water.

(iv) demonstration effects to farmers outside the projectareas; and

(v) remaining extractable timber and residual wood usablefor fuel.

Project Risks and Sensitivity Tests

6.10 The Kinmundaung subproject would introduce furrow irrigation in areasplanted to upland crops. This type of irrigation is not currently practicedin the area. Furthermore, in some years, LS cotton, which is new to thearea, has experienced heavy losses due to bollworm. To mitigate thisproblem, the project would, inter alia, (a) establish a research-cum-trainingfarm and demonstration plots to provide essential extension and researchservices to the farmers; (b) provide sprayers and chemicals for pest control;and (c) limit cotton cultivation to only one season and encourage properpost-harvest field sanitation. These efforts, together with furtherexperience to be gained from Agricultural Research Institute in Yezin and theIDA-financed Kinda Dam Multipurpose Project, are expected to reduce projectrisk considerably.

6.11 The agricultural component of the Azin subproject would be economi-cally viable even if limited to paddy/paddy rotation (estimated ERR 13.8%).However reflecting GOB's desire for crop diversification, the subprojectinclues 850 ac of orchard in the upland areas, which would enhance subprojectviability. Irrigated orchard schemes, however, have a higher degree of riskthan production based on annual crops because of the relatively long develop-ment period, commodity perishability, and current inexperience of participat-ing private farmers. The project would minimize such risks by(a) strengthening the existing research-cum-training farm for orchard crops;

(b) establishing demonstration plots; and (c) providing higher density of

-38-

extension staff (para 3.13). Assurances were also received from GOB thatnecessary long-term credit would be provided to the participating orchardgrowers (para 3.23).

6.12 Sensitivity Tests. Switching values (SV) 1/ were calculated toassess the impact of variations in costs and benefit streams on the project.The results are shown in Annex 4, Table 5. The SVs indicate that theeconomic viability of the project is more sensitive to changes in agricul-tural benefits (particularly paddy and cotton prices and yields) than con-struction costs. Sensitivity tests were also performed to examine possibleeffects of risks discussed in paras 6.10 and 6.11 and other factors such asfurther drop in economic prices of paddy and cotton. The results of thesetests are summarized below. As shown, the project would maintain itseconomic viability even if more conservative assumptions were adopted.

ERRChange Kinmundaung Azin

(a) Base Case 13.6 12.3(b) Economic Price of Paddy -20% 12.6 11.6(c) Cotton Yields with Project +20% 14.4 -(d) -do- -20% 12.6 -(e) Benefits of Orchard +20% - 13.0(f) -do- -20% - 11.6(g) Delay in Civil Works 1 year 12.2 10.6(h) (b) and (d) 11.6 -(i) (b) and (f) - 10.8

VII. RECOMMENDATIONS

7.01 Assurances were obtained from GOB that:

(a) arrangements would be made to provide adequate agriculturalcredit to project area farmers (paras 3.23 and 6.11). Inparticular, GOB would make arrangements to review agricul-tural credit requirements with the potential orchard farmersin the project area to arrive at adequate terms and conditionsof such credit. These arrangements would be completed intime to allow orchard growers to receive credit for the firstplanting season under the project (para 3.23);

1/ Switching Value is the percentage change in the specified stream (benefitor cost) that reduces the NPV of the project to zero at a specifieddiscount rate (10% is assumed for Burma, but SVs were also calculatedat OCC of 8% and 12%).

-39-

(b) consultarts would be appointed to assist the various imple-menting agencies, including short-term specialist for damreview (paras 3.18 and 3.21);

(c) a proposal would be submitted to IDA, no later than one yearbefore the expected completion of the dams and allied struc-tures, for appropriate arrangements to continue periodicinspections of these structures (para 3.22);

(d) with regard to accounts and audits,

(i) separate accounts for each project component would bemaintained by the respective implementing agencies andcollated by the Project Implementation Committee (PIC)(para 3.39);

(ii) these accounts would be audited annually in accordancewith sound auditing principles consistently applied bythe Director General, Central Accounts Office, acting onbehalf of the Council of the People½s Inspectors of GOB(para 3.39); and

(iii) The PlC would send to IDA copies of the summary of theunaudited annual project accounts within four months afterthe end of the fiscal year, followed by certified copiesof the audited accotnts and auditor-s report within ninemonths of the end of each fiscal year (para 3.39);

(e) The project Monitoring and Evaluation Unit of AC or othersuitable unit would conduct: agricultural and socio-economicbenchmark surveys at two-year intervals beginning January1984 and ending January 1992, and AC would submit itsmonitoring proposals to IDA by June 30, 1983 (para 4.14);

(f) The average daily water allocation of 1.4 IMgd and a maximumflow of 1,700 Igm would be made available from Azin Reservoirfor Mudon (para 3.29); and

(g) The Mudon TDC would set tariffs at levels to cover the cost ofoperation, maintenance and administration of the Mudon watersupply facilities as well as depreciation for these facilities.

7.02 A condition for credit effectiveness would be the appointment of theProject Director and two Project Managers (para 4.04).

7.03 With the above assurances and condition of effectiveness, the projectwould be suitable for an IDA credit of US$19.0 M on standard IDA terms. Theborrower would be the Socialist Republic of the Union of Burma.

BURMA

Tank Irrigation Project

Climatological Data

Kinmundaung Area Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Total(Lat.19 55N.,Long.95 45 E)

Mean Monthly Rainfallin Inches 0.04 - - 0.12 4.38 6.61 6.44 7.51 6.71 4.38 1.09 0.14 37.87

Mean Month Temp.- FMaximum 85.4 91.3 99.6 100.6 93.6 93.6 91.5 90.9 91.4 90.4 88.1 84.3 92.6Minimum 57.1 61.3 70.2 72.2 79.2 78.0 77.5 77.2 76.8 74.4 68.6 60.7 71.5

Relative Humidity - % 6.0 47.0 40.0 45.0 58.0 74.0 77.0 77.0 77.0 76.0 69.0 67.0 64.0Wind Speed - km/day 108.78 115.4 123.7 149.3 165.5 171.9 167.5 170.6 146.5 111.0 114.2 122.4 -Solar Radiation in Equiv.Evap. - mm/day 11.2 1.7 14.4 15.6 16.3 16.4 16.3 15.9 14.8 13.3 11.6 10.7 -

Mean Monthly Pan Evap.-Inches 5.1 6.1 9.2 10.1 9.4 6.4 6.2 6.2 6.1 5.4 4.7 4.8 79.7Water Use, ETo, by Ref. Crop -

mm/mo. 132.4 155.4 222.3 224.2 226.1 164.1 154.4 149.7 141.2 132.3 124.8 117.8 1965.3

Azin Area(Lat.16 17.5 N,Long.97 40 E)

Mean Monthly Rainfallin Inches 0.13 0.28 0.41 2.47 20.14 37.17 43.54 43.38 27.31 8.93 1.32 0.31 185.37

Mean Monthly Temp. - FMaximum 90.0 93.0 95.0 90.0 84.0 82.0 82.0 82.0 85.0 89.0 90.0 90.0 89.0Minimum 65.0 67.0 71.1 76.0 75.0 74.0 74.0 74.0 74.0 74.0 71.0 69.0 72.0

Relative Humidity - % 62.0 63.0 65.0 67.0 81.0 91.0 93.0 94.0 90.0 81.0 70.0 66.0 77.0Wind Speed - km/day 145.5 134.3 153.2 162.5 167.4 184.3 174.1 162.9 104.1 131.7 174.9 177.6 -Solar Radiation in Equiv.Evap. - mm/day 12.0 13.3 14.7 15.6 16.0 15.9 15.9 15.7 15.0 13.9 12.4 11.6 -

Mean Monthly Pan Evap.-Inches 5.6 6.4 7.6 8.2 5.9 3.8 3.5 3.2 4.2 5.3 5.6 6.2 65.7Water Use, ETo, By Ref. Crop- X

mm/mo. 164.0 167.7 204.3 213.6 168.0 114.9 103.2 107.6 120.6 155.9 157.5 162.4 1839.8

-41-ANNEX 1Table 2

BURMA

TANK IRRIGATION PROJECT

Population and Farm Size Distribution(1981)

AzinKinmundaung Subproject Area 2/Subproject Paddy- Other NationalArea 1/ land Land All (1979/80) 3/

No. of Families 1100.0 - - 450.0

Population 5400.0 - 2200.0

Size Distribution byFarm Families

Farm Size Interval (Acres)0 - 1.99 17.4 15.2 81.0 60.6)2.0 - 4.99 42.9 16.6 4.6 8.3) 61.45.0 - 9.99 37.1 29.4 6.5 13.6 24.1

10.0 - 19.99 2.4 34.3 6.4 15.0 11.820.0 - 49.99 2.0 4.2 1.2 2.2 2.650 and above 0.0 0.2 0.3 0.3 0.1

Total (%) 100.0 100.0 100.0 100.0 100.0

Size Distribution by Area

Farm Size Interval (Acres)0 - 1.99 5.9 2.2 19.3 9.1 24.82.0 - 4.99 34.0 6.8 7.5 7.1 30.75.0 - 9.99 51.4 24.6 17.9 21.9 29.510.0 - 19.99 7.6 53.8 31.1 44.7 29.520.0 - 49.99 1.1 10.8 11.6 11.1 12.750 and above 0.0 1.8 12.6 6.1 2.2

Total (%) 100.0 100.0 100.0 100.0 100.0

Average Farm Size (Acres) 5.0 8.8 2.6 4.9 5.4

1/ Source: The Kinmundaung Dam Project. Agro-Economic Data.Irrigation Department, Nov. 1981.

2/ Source: Report on Soil Classification and Land Classification of theAzin Project. Irrigation Project, June 1981.

3/ Source: Report to the Pyithu Hluttaw on Financial, Economic and SocialConditions, 1981/82..

-42- ANNEX 1

BURMA Table 3

TANK IRRIGATION PROJECT

Summary of Dam, Reservoir and Irrigation System Data

Sub-project

Dam and Reservoir Data Kinmundaung Azin

Dam

Dam Type Earthfill EarthfillCrest elevation (ft. MSL) 630 126Crest length (ft) 1,120 1,350Dam height (maximum) (ft) 80 92Volume (1000 cu yd) 387 617

Reservoir

Total Capacity (ac ft) 10,520 14,500Active Capacity (ac ft) 8,870 14,150Active capacity after 25 yr sedimentaccumulation (ac ft) 8,000 14,100

Max. W.S. elevation (MP design flood - ft MSL) 627.2 121.7Inactive W.S. elevation (ft - MSL) 597 70Catchment area (sq mi) 28.5 2.32Reservoir area @ max W.S. elev (ac) 460 475

Service Spillway

Crest elevation (ft - MSL) 618 116.5Width (ft) 200 90Length (ft) 450 400Design Storm (Yr) 1,000 1,000 *Discharge Capacity (cfs) 14,000 3,550Stilling basin length (ft) 75 60

Emergency Spillway

Location Rt. Abut. NoneWidth (ft) 300Crest elevation (ft) 625Design flood capacity (Yr frequency) 10,000

Outlet Works

Use Irrig. Irrig. & Town W.S.Capacity (at min. reservoir level) cfs 110 50

Irrigation System Data

Main canals:Length (mi,) 7 13Capacity (cfs) 49 & 60 30 to 60Concrete Lining (mi.) None 6StructuresCross - Regulators 2 8Checks and Drops 6 9Turnouts 12 16

Distributary and Minor Canals:Length (mi.) 27 9Capacity (cfs) 4 to 40 1 to 10Concrete Lining None NoneStructuresCross regulators 3 5Checks and Drops 80 5Turnouts 49 10

Farm Delivery FacilitiesArea served by open ditches (ac) 5,000 2,000Farm size per turnout (ac) 5 8

Area served by pipe conduit (ac) None 850Farm size per turnout (ac) 5

* Cyclonic storm - design based on repetitive (3) storms @ 2 hr interval.

-43- ANNEX I

Table 4BURMA

TANK IRRIGATION PROJECT

Irrigation Water Requirements

Azin Subproject - Orchards

Item May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total Remarks

Eto-Mod. Penuman - mm 168 115 103 108 121 156 157 163 164 168 204 214 -

Crop Factor - kc 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7 -

Consumptive Use - mm 118 80 72 75 85 109 110 114 115 117 143 150 - UUse basin around

Field Losses - Deep Perc. trees. 70-75% eff.and Surface Waste-mm 41 28 25 27 29 38 39 40 40 41 50 52 - plus deep perc.

= net 65%

Field Water Require.-mm 159 108 97 102 114 147 149 154 155 158 193 202 - -

Effective Rainfall - mm 247 607 792 688 430 137 16 8 4 2 6 40 - 70% of 75% proba-bility.

Irrigation WaterRequire. - mm - - - - - 10 133 146 151 156 187 162 -

Close under linedGross Irrigation Require.-mm - - - - - 11 147 161 167 173 206 179 1042 main canals. 90%

Gross Effic. 58%.Require. in Acre-Feet - - - - - 0.04 0.48 0.53 0.54 0.56 0.68 0.58 3.41 Acre-Feet/Acre

3.41 x 850 Ac. - 2898 ac ft

Azn Subproject - Dry Season Transplanted HYV Rice

Oct. Nov. Nov. Dec. Nov. Dec. Jan. Feb. Mar. Total Remarks

Eto - Mod.?enman -mm 156 157 - - 78 79 81 82 82 82 84 84 100 104 -

Crop Factor - kc 1.1 1.1 - - 1.1 1.1 1.05 1.05 1.05 1.05 1.05 1.05 1.0 0.9 -

Consumptive Use - mm 171 173 230 230 86 87 84 86 86 86 88 88 100 94 -

Perc. & Field Losses - mm 51 52 75 75 26 26 25 26 25 26 26 27 30 28 - 80% eff. plus deepx perc.-net 70%Field Water Requirement - mm 223 225 305 305 112 113 109 112 111 112 114 115 130 122 -Effective Rainfall - mm 100 11 10 5 6 5 3 2 2 1 1 1 2 3 - 80% of 75% Prob.Irrigation Requirement - mm 123 214 293 300 106 108 106 110 109 111 113 114 128 119 -

Gross Diver. Requirement - mm 147 257 352 360 128 129 128 132 132 133 136 137 160 137 - 80% conv. effec. -

Gross eff. 56%Adj. for Area & Time - mm 3.6 12.7 176 90 - 64 63 132 132 133 136 137 160 63 1302Requirement in Acre-Feet 0.01 0.94 0.58 0.29 --- 0.21--- --- 0.64--- --- 0.87--- --- 0.89--- --- 0.73--- 4.27 Acre-Feet/Ac.

4.27 X 2000 Ac.= 8540 A.F.

Kinmundaung Subproject - (Ac Ft)1/

May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. March Apr. TotalPaddy I - Second Crop

1500 ac - - - 1005 930 1140 1530 - - - - - 4605

Paddy II - Single Crop500 ac - 30 530 320 295 370 - - - - - - 1545

Paddy III - First Crop1000 ac - - 730 640 610 740 - - - - - - 2720

Cotton - Single Crop1500 ac - - - - 195 945 1275 - - - - - 2415

Sunflower - First Crop500 ac - 120 90 285 295 - - - - - - - 790

Sesamum - First Crop1500 ac 450 240 900 - - - - - - - - - 1590

Sub-totals 450 390 2250 2250 2325 3195 2805 C(Variable- SeeBeow) 13665

Groundnuts: Second Crop 250 Ac. 95 232 370 82 930(Depending Upon Water Supply) 500 Ac. 190 464 740 164 1860

750 Ac. 285 696 1110 246 27901000 Ac. 380 928 1480 328 31161250 Ac. 475 1160 1850 410 46501500 Ac. 570 1392 2220 492 5580

1/ Details of water requirement computations are available in Project File, Vol. I.

BURMA

Tank Irrigation Project

Simulated Reservoir Operation

Kindmundaung - Summary Reservoir Operation for Average CycleActive Capacity - 8000 Ac., Dead Storage - 2520 Ac. Ft.

(Units: Acre Feet)

Net Irrig. Res. Res. Spills Yr. Net Irrig. Res. Res. Spills Yr. Net Irrig. Res. Res. SpillsInflow Demand Str EMC Short & Mo. Inflow Demand Strge EMC Short & Mo. Inflow Demand Strge. EMC Short

e, _37 TT) -- Fj- z;--:T+)(- 6/()-) -i- ()-) - -T6 (+)-) 7T -@7 6+ IT

1961 1964 1967

May 241 450 -209 1731 - - 276 450 -174 453 - - - 450 - 450 680 -79

June 597 390 -207 1818 - - 2803 390 2413 2726 - - 494 390 104 684 -

July 521 2250 -1729 - -26 - 7609 2250 5359 7915 - - 1974 2250 - 276 318 -August 4369 2250 2119 1989 - - 6216 2250 3966 8000 +3711 - 4502 2250 2252 2440 -September 1095 2325 -1230 639 - - 9593 2325 7268 8000 +7098 - 4885 2325 2560 4850 -October 11124 3195 7929 8000 +398 - 7213 3195 4018 8000 +3848 - 2569 3195 - 626 4080 -November 1862 2805 - 943 6887 - - 1358 2805 -1447 6383 - - 127 2805 -2678 1286 -December - - 0 6717 1/ - - - 0 6213 1/ - - - - 0 1171 5/ -

January - 570 570 5977 - - 570 570 5483 - - - - - 1056 -

February - 1392 1392 4440 - - - 1392 1392 3951 - - - - - 941 -

March - 2220 2220 2090 - - - 2220 2220 1611 - - - - - 826 -

April - 492 492 1478 - - - 492 492 1004 - - - - - - 716 -

1962 1965 1968

May 333 450 -117 1246 - - - 450 -450 454 - - 483 450 33 639 -

June 74 390 -316 815 - - 173 390 -217 157 - - 3285 390 2895 3394 -

July 3371 2250 1121 1811 - - 2284 2250 34 111 - - 5275 2250 305 6249August 12725 2250 10475 8000 +4116 - 5773 2250 3523 3494 - - 5512 2250 3262 8000 +1341

September 9602 2325 7277 8000 +7107 - 7239 2325 4914 8000 + 238 - 2367 2325 42 7872 -October 6953 31995 3758 8000 +3588 - 6876 3195 3681 8000 +3511 - 2811 3195 - 384 7318 -November 1956 2805 - 849 6981 - - 1858 2805 - 947 6883 - - 288 2805 -2517 4651 -

December - - 0 6811 1/ - - - 0 6713 1/ - - - - 0 4511 3/ -

January - 570 570 6071 - - - 570 570 5973 - - - 285 285 4086 -

February - 1392 1392 4539 - - - 1392 1392 4436 - - - 696 296 3250 -

March - 2220 2220 2189 - - - 2220 2220 2086 - - - 1110 1110 2010 -

April - 492 492 1577 - - - 492 492 1474 - - - 246 246 1634 -

1963 1966 1969

May - 450 - 450 1012 - - 235 450 -215 1144 - - 355 450 - 95 1419 -

June 262 390 - 128 769 - - 457 390 67 1096 - - 1457 390 1067 2356 -

July 2387 2250 137 791 - - 3031 2250 781 1751 - - 3218 2250 968 3184 -August 4641 2250 2391 3042 - - 8306 2250 6056 7637 - - 2682 2250 432 3476 -September 4764 2325 2439 5326 - - 2817 2325 492 7959 - - 844 2325 -1481 1865 -October 6402 3195 3207 8000 + 363 - 3104 3195 - 91 7698 - - 2389 3195 - 806 890 -November 1066 2805 -1739 6091 1/ - 283 2805 -2522 5026 - - 401 2805 -2704 0 -1614December - - 0 5921 - - - - 0 4876 2/ - - - - - (- 60)5/ -

January - 570 570 5201 - - - 380 - 380 4356 - - - - - (-100) -

February - 1392 1392 3669 - - - 928 -928 3288 - - - - - (-140) - a -

March - 2220 2220 1329 - _ _ 1480 -1480 1678 - - _ _ - (-180) - a A

April - 492 492 727 - _ - 328 - 328 1230 1230 - - - - - (-210) - -

I/ Include 1500 Ac of groundnuts. 4/ Restrict groundnuts to 500 Ac.2/ Restrict groundnuts to 1000 Ac. 5/ No groundnuts.3/ Restrict groundnuts to 750 Ac. T/ End of month content (EMC)

including evaporation losses.

Note: Ave. annual project water yield through reservoir regulationwould be 16756 ac ft.

BURMA

TANK IRRIGATION PROJECT

Azin Reservoir - 14,100 A.F. Active Capacity - Summary Operation Study(Units - Ac. Ft)

Year Net Total Net Res Spill (+) Year Net Total Net Res Spill (+) Year Net Total Net Res Spill (+)& Month inflow Demand Storage FMC Short (-) & Month Inflow Demand Storage EMG Short (- & Month Inflow Demand Storage EMC _Sort (-)

1968 - (+) ( 2) - 1972 1/ C+m C-) 2/ 1976 (+) C-)

May 179 160 19 1655 - May 337 160 177 1810 - May 750 160 590 590 -June 2340 154 2186 3841 - June 2365 154 2211 4021 - June 3333 154 3179 3769 -

July 4051 160 3891 7732 - July 5914 160 5754 9775 - July 3674 160 3514 7283 -August 3808 160 3648 11380 - August 4547 160 4387 14100 +62 August 2819 160 2659 9942 -September 2450 167 2283 13663 - September 763 167 596 14100 +596 September 2205 167 2038 11980 -October 530 231 299 13962 - October 760 231 529 14100 +529 Ocotber 789 231 558 12538 -November 2243 -2243 11719 - November 2244 -2244 11856 - November 2243 -2243 10295December 2501 -2501 9218 - December 2503 -2503 9353 - December 2501 -2501 7794 -

January 2393 -2393 6825 - January 2393 -2393 6960 - January 2393 -2393 5401 -February 2448 -2448 4377 - February 2448 -2448 4512 - February 2448 -2448 2953 -March 2225 -2225 2152 - March 2225 -2225 2287 - March 2220 -2220 733 -April 654 -654 1498 - April 654 -654 1633 - April 647 -647 86 -

13358 13495 - 14686 13498 13673 1 348

1969 1973 1977May 870 160 710 2208 - May 342 160 182 1815 - May 392 160 232 318 -June 3399 154 3245 5453 - June 2835 154 2681 4496 - June 2554 154 2400 2718 -July 5241 160 5081 10534 - July 4668 160 4508 9004 - July 2671 160 2511 5229 -August 3948 160 3788 14100 +222 August 3632 160 3472 12476 - August 2947 160 2787 8016 -September 3243 167 3076 14100 +3076 September 1793 169 1621 14100 - September 3606 167 3439 11455October 536 231 305 14100 +305 October 272 232 40 14100 +40 October 355 231 124 11579 -November 2244 -2244 11856 - November 2243 -2243 11857 November 2243 -2243 9336 -December 2503 -2503 9353 - December 2501 -2501 9356 - December 2501 -2501 6835 -January 2393 -2393 6960 - January 2393 -2393 6963 - January 2390 -2390 4445 -February 2448 -2448 4512 - February 2448 -2448 4515 - February 2438 -2438 2007 -March 2225 -2225 2287 - March 2225 -2225 2290 - March 2210 -1853 154 -357April 654 -654 1633 - April 654 -654 1636 - April 647 -154 0 -493

17237 13498 13200 13495 12525 13461 (6Z)1970 1974 1978

May 379 160 219 1852 - Majy 542 160 382 2018 - May 377 160 217 217June 2574 154 2420 4272 - June 3299 154 3145 5163 - June 2747 154 2593 2810July 4058 160 3898 8172 - July 2577 160 2417 7580 - July 2486 160 2326 5136 -August 4028 160 3868 12040 - August 4375 160 4215 11795 - August 5241 160 5081 10217 -September 2403 167 2236 14100 +176 September 791 167 624 12419 - September 1638 167 1471 11688October 404 231 173 14100 +173 October 726 231 495 12914 - October 933 231 702 12390November 2244 -2244 11856 November 2243 10671 - November 2243 -2243 10147December 2503 -2503 9353 December 2501 8170 - December 2501 -2501 7646January 2393 -2393 6960 January 2393 5777 - January 2393 -2393 5253February 2448 -2448 4512 - February 2448 3329 - February 2448 -2448 2805March 2225 -2225 2287 - March 2225 1104 - March 2220 -2220 585April 654 -654 1633 - April 654 450 - April 647 -585 0 -62

13846 13498 12310 13495 - 13422 1344 (1%)1971 1975 1979

May 295 160 135 1768 - May 458 160 298 748 - May 1000 160 840 840 -June 4821 154 4667 6435 - June 2631 154 2477 3225 - June 2608 154 2454 3294 -July 4041 160 3881 10316 - July 3746 160 3586 6811 - July 3781 160 3621 6915 -August 3587 160 3427 13743 - August 4173 160 4013 10824 - August 5267 160 5107 12022 -September 885 167 718 14100 +361 September 1146 167 979 11803 - September 1428 167 1261 13283 -October 514 231 283 14100 +283 October 782 231 551 12354 - October 291 231 60 13343November 2244 -2244 11856 - November 2243 -2243 10111 - November 2243 -2243 11100December 2503 -2503 9353 - December 2501 -2501 7610 - December 2501 -2501 8599January 2393 -2393 6960 - January 2393 -2393 5217 - January 2393 -2393 6206February 2448 -2448 4512 - February 2448 -2448 2769 - February 2448 -2448 3758 -March 2225 -2225 2287 March 2220 -2220 549 - March 2225 -2225 1533 -April 654 -654 1633 - April 647 -549 0 -98 April 650 -650 883 -

13142 13498 12936 13483 (17) 14375 13491

1/ Includes Mudon M&D (1880 AF) Irrigation (11,440 AF) & Net Evaporation loss from Reservoir.

2/ End of Month Content - 1968 includes 1636 AF carried over from 1967. ' x

Average annual Reservoir Yield = 13,235 A.F. Average annual shortage = 17-

BURMA

TANK IRRIGATION PROJECT

Mudon Town Water Supply

Water Demand and Production Irojections

1986 1991 2001

1. Total Population (39,725 in 1980) (annualgrowth rate of 2.2%) 45,265 50,470 62,740

2. Served Population

(i) by house connectiona- persons 9,050 15,140 21,960- percentage of served pop. 27 35 39

(ii) by standposts- persons 24,900 27,760 34,510- percentage of served pop. 73 65 61

(iii) total served population- persons 33,950 42,900 56,470- percentage of total pop. 75 85 90

3. Water Demand per Capita

(i) house connections, Iged/lcd 30/135 35/160 40/180(ii) standposts, Igod/led 15/70 15/70 20/90

4. Water Production

- aver. productIon in IMgd 0.65 0.95 1.57- aver. production in m3 d 2,950 4,320 7,135- aver. demand per capita Igcd/lcd 19/87 22/100 28/126

5. Water Consumption

(i) House Connections0- total IMdg/m d 0.21/955 0.43/1,955 0.75/3,410- per capita Igcd/lcd 23/105 28/127 34/155

(ii) Standposts- total IMgd/m3d 0.23/1,270 0.33/1,500 0.59/2,680- per capita Igcd/lcd 11/50 12/55 17/77

(iii) Total Consurmption- IMgd/m 3 d 0.49/2,225 0.76/3,455 1.34/6,090- av. per capita Igcd/lcd 14/64 18/82 24/109

6. Unaccounted-for water

(i) percentage of av. production 25 20 15 H(ii) total IMgd/m3d 0.16/725 0.19/865 0.23/1,045

1/ includes provision for unaccounted-for water as in 6 of this Annex(public use, operational losses and users outside standpostservice radius)

-47-ANNEX 1

BURMA Table 7

TANK IRRIGATION PROJECT

Present and Projected Cropping Patterns, Yields and Production

Incr.Cropped Area (ac) Yield (T/ac) Production T Prod. I/

Crops P W W P W W P W W (T)

Kinmundaung:

Paddy-local 1091 1955 500 .43 .45 .8 469 475 400 -75

Paddy-'dYV 364 400 2500 .64 .74 1.7 233 296 4250 3954

Sesame 1454 1454 1500 .06 .065 .25 87 94 375 28.1

L.S. Cotton - - 1500 - - .60 - - 900 900

Sunflower 14 14 500 .16 .17 .30 2 2 150 148

Groundnut 1 11 1000 .15 .16 .95 2 2 950 948

Maize 984 984 - .24 .25 .60 236 246 - -246

Pulses 1082 1082 - .12 .13 .25 130 141 - -141

Azin:

Paddy

Paddy-local (M) 2/ 1800 1600 1000 .78 .8 1.0 1404 1280 1000 -280

Paddy-HYV (M) 2/ 200 400 1000 .93 1.0 1.5 186 400 1500 900

Paddy-HYV (DS) 3/ - - 2000 - - 1.8 - - 3600 3600

Orchards 4/

Durian - - 255 - - 7.5 - - 1594 1594

Mango - - 255 - - 10.0 - - 2125 2125

Pomelo - - 340 - - 9.0 - - 3060 3060

Banana - - 340 5/ - - 16 6/ - - 1285 1285

Pineapple - - 340 5/ - - 20 6/ - - 2013 2013

Vegetable (Groundnut)- - 170 5/ - - .95 6/ - - 65 65

1/ These are the production increases envisaged after the area and productivity build-ups are completed exceptfor intercropped banana, pineapple and groundnut where the Azin scheme's maximum production has been given.

2/ (M) = Monsoon cropped paddy.3/ (DS) Dry season paddy4/ Orchards:

Proj. Year. Yl-4 Y5 Y6 Y7 Y8 Y9-30

(a) Land development (ac) - 340 170 170 170 -(b) Maturity attained 5 years after planting for pomelo and mango and 9 years for durian.(c) Yield buildup is attained at the rates of Proj. Yr: Y5 Y6 Y7 Y8 Y9

20% 40% 60% 80% 100% in succeeding yearsafter maturity

(d) Proportional area for developed land to be planted to intercrops (%):Y1-4 Y5 Y6 Y7 Y8 Y9 YIO-30

Banana - 33 25 20 20 - -

Pineapple - 50 33 25 20 20 -Groundnut - 50 33 25 20 20 -

5/ Intercropped area proportionally decreasing with time.6/ Full non-intercropped yields, actual per acre yields are lower.

BURMA

TANK IRRIGATION PROJECT

Crop Iaput Requirements Per Acre

Unit Local Paddy bYV Paddy Cotton Sesame Maize Beans Groundnuts SunflowerPer _____________sam____ _aze_ansrou___u_s_uflo__

I. Kinmundaung Acre p W W P W W W P W W P W W P W W P W W P iW w

Fertilizers & Pesticides

Urea (46%N) kg 0 0 25 30 34.7 80 100 0 0 40 0 0 20 0 0 10 - - 20 0 25 75

TSP (46% P2 05) kg 0 0 12.5 0 0 40 50 0 0 20 0 0 10 0 0 5 - - 30 0 25 50

MP (60% K) kg 0 0 0 0 0 20 40 0 0 10 0 0 5 0 0 5 - - 30 0 0 20

Pesticides Kyats 0 0 0 0 0 85 220 0 0 70 0 0 35 0 0 0 - - 95 0 0 35

other Inputs

Seeds kg 25 26.1 20 25 28.9 25 10 6 6.6 3 7 7.6 5 15 16.8 20 - - 30 3 3 5

Parm Yard Manure Carts 1 1 1 2 2 1 1 1 1 1 1 1 0 1' 1 0 - - 0 1 1

Bullocks Pair-day 10.5 11 12.5 13.5 15.6 16 9.5 75 8.3 8 9.5 10.3 12.5 7.5 8.4 9 - - 11 5 6 9

Human labor Man-day 32 33.5 43 44 50.9 50 51 19 21 33 21.5 23.4 37 18 20.1 28 - - 47 15 15.5 25

Unit Local Paddy Monsoon HYV Paddy Monsoon bYV Paddy Dry Season

II. Azin Paddylands PerFertilizers & Pesticides Acre P W W P w W W

Urea (46% N) kg 0 0 20 12.7 20 80 100

TSP (46% P2 05) kg 0 0 10 0 0 40 40

MP (60%) kg 0 0 0 0 0 20 20

Pesticides kyats 0 0 0 0 0 50 60 ,

Other Inputs

Seeds kg 30 25 20 32 25 20 25

Farrm Yard Manure Carts 1 3 1 1 2 1 0

Bullocks Pair-day 9 9.5 12 10 10 13.5 15

Human labor Man-day 29 29.5 36 30 31 43 50

III. Azin Orchard landsUnit Main Crops (W) Inter Crops (W)

Per Pomelo Durian Man o Banana Fineapple Groundnut

Acre YI 17 Y2-5 Y6-30 Yl V1Y2-5 Y-100 YY l Y2-5 Y6-100 Yl 2J Y2-3 Yl 1Y2-3 Inputs Unit Per Acre

Fencing Kyats 1000 0 0 1000 0 0 1000 0 0 - - - - Urea (46%N) kg 20

Seedlings No. 70 0 0 50 0 0 50 0 0 300 0 12000 0 TSP (46% P2 05) kg 30

Fertilizer Kyats 0 93 93 0 93 93 0 93 93 124 0 65 0 MP (60ZK) kg 30

Fare Yard Manure Carts 7 24 24 5 17 17 5 7 7 4 0 7 0 Pesticides Kyats 100

Pesticides Kyats 200 60 60 100 40 40 90 64 64 40 0 40 0 Seeds kg 30

Other Material Kyats 630 150 150 630 120 120 630 80 80 220 120 220 200 Farm Yard Manure earts I

Labor Man-day 231 50 66 212 46 96 220 36 36 60 60 203 83 Bullocks Pair-day 12Human labor Man-day 47

1/ Corresponds to Project Year 5 (after 4 years of construction of dam and irrigation facilities).

-49-

ANNEX 1Chart 1

BURMATANK IRRIGATION PROJECT

Crop Calendar - Kinmundaung Subproject

May Jun Jul | Aug Sep Oct Nov Dec Jan Feb Mar Apr

ANursery p HYV) 1,500,.TAand

AT'.splant Second Crop

. I I I IAlNursery

andTransplant

N ursery .... (HYV) 1,000 .rand First Crop

__ . I I

Ground Nuts - Balance

dWSecond Crop

8

6

4

2

0

MONTHLY RAINFALL PATTERN

1/ Size of area planted determined each year by availability of irrigation water from reservoir.

World Bank - 23636

BURMATANK IRRIGATION PROJECTCrop Calendar - Azin Subproject

May June Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

6 iPddy~(HYV) 1,OOOA'& ~~~~~~First Crop

~ ~ ~~~~i. . . . . . . . ............../.~~~5' ,<,,,,,,,h " '. t, " n''

Paddy (HYV) 2r000Second Crop

....... ....... .. . . ....... ...~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.:::x':N..

50 _ _ _ _ _

407,77777

c c0~ 30777 // /

-t 20 7 <C>n10/77

. 7

MONTHLY RAINFALL PATTERN

World Bank - 23637 rt >X

BURMATANK IRRIGATION PROJECTKINMUNDAUNG SUB-PROJECT

Implementation Schedule

Calendar Year 1982 1983 1984 1985 1986 1987

Quarter 1 2 3 | 4 1 2 2 3 3 4 437 14 2 3 4

Wet Season Wet Season Wet Season Wet Season Wet Season i

PROJECT APPROVAL I

CREDIT EFFECTIVENESS i I I .

CONSTRUCTION CAMP i i i I iDesign and Layout I _ I I I j >Construction I

EQUIPMENT PROCUREMENT i I _ I B i c

Contracts Award I i T , u I i i

Delivery of Equipment i i I r I I i

KINMUNDAUNG DAM I i i i i I i i

Finalize Designs _ i I n I I i

Prepare Working Drawings Storage

Construction of Dam and Appurtenant Works I I = nPreparation and I

DIVERSION DAM MODIFICATIONS i Mobilization A i I - Intial

IRRIGATION AND DRAINAGE SYSTEM j D I Init alDesign irField Layout+

Detailed Design and Field Layout I U i I | Delivery i I

Construction of Canal System 1 I ,_I

Construction of Drain and Road FacilitiesI 1,590 Ac ~~~2,000Ac I I 1,500Ac. I

ON FARM DEVELOPMENT W A -j t IIFacilities and Staffing Training and Implementation Applied Resarch and Services I-IAGRICULTURE EXTENSION SERVICE i I | BrI

Baseline SurveyfiIMONITORING AND EVALUATION i I I iTRAINING PROGRAM i I I ! I

Continuous activity. V l n 2

w- __ Intermittent activity. World Bank 2

BURMATANK IRRIGATION PROJECT

AZIN SUB-PROJECTImplementation Schedule

Dam and Irrigation Facilities

Calendar Year 1982 1983 1984 198S 1986 1987

ITEM Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Wet Season Wet Season Wet Season Wet Season Wet Season

PROJECT APPROVAL . I I I i

CREDIT EFFECTIVENESS II

CONSTRUCTION CAMP I I j I I I

Design and Layout II I

Construction i _

EQUIPMENT PROCUREMENT > ~Contract Awards I i- i I

F ne I iz e 0 asi9 ns ; ; t i 1 | ! I n lt I I Ii| I I t'

Prepare Working Drawings InitIaio i ilZ tioatei i

Construction of Dam and Appurtenant Wroks i Mobil zation

IRRIGATION AND DRAINAGE NETWORKS Oisn iFedLyui i i i Inta i

Ie sgnI FilLy ~Inta

Detailed Design and Field Layout _ i t l Z Z * wDelivery i

Construction of System j| i | |i Z-sRoA oA 5 s.

I A I I K'~130 A .

ON-FARM DEVELOPMENT 250I A IniPrepare1 Facilities and Staffing raining and Implementati Applied Research and Services I S

AGRICULTURE EXTENSION SERVICE i| ZBslnSrr I r Z | |, | 1 111 *

MONITORING AND EVALUATION !| Z | I!| |

|TRAININ1xG PROGR{AM [-

_Contn oativity.orld Bn- Csco fa nA rn W Intermittent activity. Woks Mobiliza>onC3

I I I I I I A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~r

BURMATANK IRRIGATION PROJECTMUDON TOWN WATER SUPPLY

Implementation Schedule

1982 1983 1984 1985 1986 1987

1 2 3 4 1 23 4 1 2 3 4 1 2 3we 4 1 1 2 3 4

Iwe-t I wet Iwet jwet vvwet Iwe Ie season i | season s ason i sason season i I season i

Engineering:I II IIIII

(i) Feasibility Study 1e1111 I I I I I I I i

(i i) Final Design '4 ' a 1 I I I I I B

(iii) Tender Documents Arnie I _ I I L Test Run I

(iv) Supervision I i r r T rProcurement: I II III

(i) Major Supply Contracts Ii l li ti,_ 11... I I I I I

(ii) M inor Supplies I i i I o I

Civil Works:I I III II

(i) Treatment Plant i I I L I I El I

(ii) Pumping Station I I r(iii) Pumping Main >

(iv) Primary Mains II II-1

(v) Secondary Mains i I i iI * W ir

(vi) Service Reservoir I r I I _(vii) Operational Buildings L I { 11L I

*iii..... Major review of plans, designs and documents rt X~~ Continuous activity. tn

wAAw Intermittent Activity. World Bank-23860

CATEGORY il- eavyCntuto gi~s

BIJRMA ~~~~~~~~PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALSTakI ig i-P j t

OOONOITO PROCUR. COT3 84 8O5C 87 .z oC0

4 Craw ir Tractors, 1 PRIO -

300 IIP w/doZert & tippCet ICR3 1,325 OoTO -

6 Crawler Tractors, OPUOL -4-i200OHPw/dozer &ripper 1.3 nooo4 T-TT1

attach. t 4

5Front-en,d loader 4 c.y 1B 1,0 APROAIOOL -

wheci type

15 Dump Tracks, 12 cy. GB 1 25ORAaL-Heavy Cluty teat-cod ICB 1,2 IR-- - z

4 Poonp Trucks, 5c .y. CCB 120OPOILRear-end dloop tipperREIR

2 Motor graders135 lp Ilasy dory

2 Motor graders- ------------

70IIP read graders

2 IlydraolJic Excavators IAIA195 HP, Track type IC 48....

Sloeopfoor Roller IC COPURCTwin sets - towed typeREIO -

2 Mobile cranes5 t'on capacity ICB 250 essoI ~

PREoooLIF)COTION OCTIONS PROC RPOOC)OCO~~~ 00 A-TOC TOU ON t

0-IITATEPRPUTTIR P PROOLIICTIO OCOPNT PT OP RROOO GE O EECIICTINS 500,0eOLONTIIIIOeCAl T A TOI EITERUO50

--RNA T POLAIT 0C--A RP O0 IoIOoNE PSPi CTI S"CA""'PTTC_PIOU CL) -TC TOT .CoOUpOEPOc'O

0-oPRAAO ' OIIENROE RTTO 00INOO O 5PC ICN

EREPOPT O OONROOTO PREUACPIOOTI0 000 0 OOPpOIT Eo mo p PTUT 0OUT -ECOO(NOTIQN O C CC

C-RARITEAL-CTI R- -TSOTROONOiOOT O ... )0-TPOOoT T. O -0C0000IN

A- I - -PEOA-TPOT -ROMMEEO 1000..A11 . . ...

CATEGORY I - Heavy Construction Equipment, (Cont'd.)

COTNTTO BURKA PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALS Tank Irrigation Project

4EI"IONDF Core METHODrT = w 0 AIi ° | | u | olls, w z j 84 | 85 1ith 1 86

2 Roa Rlo ers ICB 88la

6 Power Augers, mounted2

bito (3c) rods and ICR 295

acpe css oror s 0GB 7 STOiTE - - -

4 concrete Mixers,g

Diesel motors ICB41 RV19E +ICB 63

4 Compressors, 600c.f.m. ICB 1725

ORSO ISOI

2 Tractors, Track type, IC 15

on35 HPc/.f4hm vibraitin ICB 195

4 roller ps hg

WOA-IRETITE*SEOSR0TIONODF PRROOOLITOO TIDN OCOMUENTE IINITIATE CRETOROT ION FC YESCITICATION9 ONDEI D1 OsCoOTNTT 9 INITIAL OSLIOFTY AT SITE IC-NEN CTIOOFONCIRMN TD Y

AND EOALONTIOR CRITERIA A TRANSMIT SFECIFICATION3SANL RIO DDCDMENTS TO ICC I0 INTRTIO DELIVERIES AT SIC, CTORTIITIVTR CIDING TO |F

*-TRASERdTODOCCRAESTROMD RITERIO TO IO 3 IDAOCLEARANCE CT SSCIT ICATSIONoANDEIDDOCUMENTS II C INALCDELIVETY AT SITE LCO -I,OO0I CDMFETITIVE 00-IRA CL EARASECE OF DOOuESJATST SEES CRITERIE S ISSUE INYIYTSION TO SIC 91DDING Nh

S-SENOR EREOOALITISATIOS NOTICE S OPE N 910S STTOTTSOTN UD

E-RECEIP*TOFEON'TROCTORPRIEOoSLITICATION Oars S TRONTSMIT ECOLCOCI5N RETOOT AN0 00000 TECDMMENDATIONS TO leO 50 ENAVTIOT ION

F-TRSRUIlT ETALOATIOSI RETORT ANO RECOEMERNSOTIhSE TO ISO I IOA CLTOSONCE CT TTCOTMTNCOTIONS0-100 CLEARANCE OF PEO EWRAETSTIOSS 9 AWAAD CONITRACT

CATEGORY II - Light Equi_ment

BURMA PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALSCOUNTRY _rTOCR

Tank 8rrigation Proiect

6 Pneumatic Drills PS 25 AP-AL - --- -

w~CCeSSories 2

12 Concrete Vibrators R P-nechoanical IE

4 Configural Pumps RIEO I)

1,200 gpmRP 4------

2 Bar cutting & Bending 5 - - - - - -

machines ICB 13

I Arc Welding Set ICB 19

2 Compressors, 150 c.f.s. 1CB 25 A A-

4 Water Supply pumps ,PA-A.EL

30 gpm (o&m) -GB 3

Telecommunications APPRAISAL

Equipme.t PS 25- - - -

Laboratory Equipment

mechanics -

Sibop Equip. & Tools fo NAIO

construction including I'S 38 ACNR

20 hoaydtY chaqosaus

-IT AT. MU"ATI.. .1 ---- ATI- OC..t- I "TIATI"IIAIATII I.ITIA1 -... ol~~~~~~~OTTA OF ROCTRORT P .~

A-IAITIATEPTEPRA^IRN or PREOAALIR ICOTION OOCUPARNTR INITIATE FTEFARATIAN CC ATECITICAT.ONR ANDO RIO DDCUMENTE 9 INITIAL OTLICERT AT RIOT ITR-INTCTNOTIONVL I/

ANR EVALUATION CRITERIA 2 TRANSMIT FECIF ICATIDNSANC E1O ODCUMENTS TO IRA 10 INTERIM OELIOERIESAT RITE COAPE'ITICRSIDOINA o I-l

_TRAUAPT AOCWAERPSAEO RITERIATO IRA A IDACLEATANCA OF EFRCIRICATION CNO RIO TOCUIMENTS ,I FINA, TTLIVRA AT CITE .ca .CRL-COCORTITIVE

C-I .O .JAEAN OE OOCU.MNTEANR CRITERIA 4 CASS-E INVITATION To SIC ROINA R

O-El PIR-O-ALIPICATION NOTICE N OENSIDS- PR--PLENT SERORIEC a'

5.-R IPTOF CO-OTRARRR PR--AALIPICATION RATA 6 --ANROIT EVALUATION AEPs-T AN- AWARD RECOMMENDATIONSTO 1* NRA --NETTIATION

-A R$MEIT -OALOATION REPORT AN- RECOEUN*-ATIONS TO IRA IOA CLEARANCE OF R[COMMENDATIDNS

A-IRA CLEAPANCE OP EAOENOATIONS a AWATO CANTEACT

CATEGORY II - Light Equipment (Cont'd . )

DOUNTRV BURMtA PROCUREMENT SCHEDULE FOR EOUIPMENT AND MATERIALS -0oire Tank Irrigation Project

DECiSINT OP TeRE OSUR ESTIMATED -92 _ _ -<_D _ Z8___ _ XIlil1 1;

AMA MET84A8 III 8A A 087

1 Sprinkler Set ICEA49 APPRAISAL AM

Irrigatio,n Equipssest ICE 33 - -E--S--

TatrIMplements PS 10- -E- -E- --

4 Power Tillers RP 12------

2 Power Mist BlOWers PS I MSSD-

AD-ULIPINDTIDM ATIOSEMTOCCOEES ACIN MESCCC3 ASSIDII.TEET

OEMS EoALDSEohNCRTERIAtoAlEA eOT ATSANSAIT EVASISISTIOSSA AIFDT CNOAWARTD S C ICCOINTETIA0> ToSIT ATA CIT CSMDeTCTT AIDDaNA OS

G-SEDAWT C ANANceET 5MM CRIMTERIA TIO lAAD CIDDCLEU CNC T SPCDTCTO US D I SAEMSISNLSISSC IE.0 DC ORTTA

C-EA SL AP SO 0 O CO SE DS A A RI E IUA SS E NS ST I N O-IDA1 01 0 5

A-ISiS S*EMUALISCASIOM PEOTICE OPEN - -C -S-.TU-ENTC-I-T-S- -

E-EEOEOIPTO COSETRADYA SREADDLIPCUTION AUT S TOCNSSDTSDCLAAT IO MASCOT US COCOA O-A-O-TT-CTI-STC ISA SEA-EA-T-CTIA

S-RUUITECLUTAT EPRTOA ECNSEATINSOIO IS CEOACASTACTASSTIN

A-ID AEURUNE O AESMEESAUSOSE 0 CSAO US-AUL

CATEGORY 111 - Vehicles

BURMA PROCUREMENT SCHEDULE FOR EOUIPMENT AND MATERIALS I-CT T.nk Irrigation Project

SECA R IPTIN eF ITEM F COC/E DATIDATRA |- _' _aOHtFOzOXI AND EDOCIRD. COST P A C

861 a

61 T,tucks - Water Bouse I' 14 A-PRAIAL -

A~~~~~~~~~~~~~~~~~~~~~~~ .. .~ 1.1 I 0

6 Trr,cks Fuel Tankers P 141500 gal.

7 Tracks - Flat bed A I -

8-ton

35- X2000, Mazda Jeep, E 3 PRIA

4x4

1 2 -X72000, Mazda Jeep NE-P-A-S-L

XV.

1itmotorcycles 100 cc. IGB 17 7DChRItat(StaLe Fart aTId 06W) AEA

O

2 Fatm Ttactorts - 60 HiP ICB 113 APPRIS-

su/dozet & bucke,t PSISA

7Fatrm Tractors - 50 HiP OPAR

u/trailer (construct ion) RP 6--------

3 Tippet a/winch RP 50 -SPA-SL-

41 Bicycles, ID, StateFarms, Research, & RP 5 AmD

Traisning Farms _

A-ISIdIKTC REPRSRATIAN OF PASS CALIFICAC ASA5CDDCMNTD - CN I AT CCSCPACAIC zCC O PCCCCICIAC 155 AhDIC S CCCCsAeTCT A I CIAC CC.IA5TT AT 01CC CR -IS.TSDSCT IINAC -S It :

ASS SCALUASCIN CRITERIA C CT ACTAIC COICCA sE llcThl>s 551. SIll IIIICTCMENS TO IDA oC INCSITCIIADlTCICnsAn CIA C< CCOSntT N'ITI-eCCIsA C

S-TRANRIT AAALRAPNTS ASS CRITERAI TA IDA C DCA ACCACATICS DF OTACIFCAT CC ASIC SIC CCIACIT S I T IDA1

DS <5V1C ATTISIT CR, aLA.LACTTTTITICS °

C--IDA CLEARANCE AS DACCAMENTS ANT CRITERIA ISU MrAoNo DEDOGD S-SUA PREAAALISICOCION NATICE C CPSN3FS

PSC CC CLC NT TEAsECINA 03

e.READISOtTOCANSRATTOR PMESAALICICOCA1NODATA ECrAANCsIaTCSAuA<ATI5C ACPECAC ANO AWARD TSC5TCTSCSAC CCC rs CDA T.CA REACTIACI

P-7RANUIT EAALUAAIAN ASSORT ANO SecoAREDRAT IONS TA IAS r CIA CLSACATCCE OF RLCC NOMMhATIONS

S-IDA ALSASANCE OF RECOMNENCATIANS AWOCNAT

CATEGORY IV - Small EquiPment and Material

BURMA PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALS Tank Irrigation Project

SAANIN RNTi ,RIC Tan Iriato V Z =

Land Classification PS 18 'LTINLt 1 -

Equipment and Supplies, aI-I.

Hydrologic Investigatio, PS 31 --instrument and supplie -s, - - - - - -

set AA

Eqvlimentfor gric PS 4 RelSeDt t<XX AFF g- -A ------

Survey InstrumentsSupplies PS 37

Office Machines &Equipment PS 98

Shop Equipment, Tools ICE 25and supplies tot OEMset ACTT-

Office Machines and EEquipment sec State PS 12 I I

Laboratory and office PS 44 AIPRAISAL

Equipment for Agric.Estension & ResearchAC-------

AerometeorologicalEquipment for Research PS 10 ADIE

& Training farms A-AL

Audio-visual Equipment PS 17 A -fur Training Centers se't

Office Equipment for - A Research & Training Farl PS 21 REVSE

set

PNISUALI-IAT-D ADYION A-UDDRENVAV-InNN AETAVY -RPE -SSDNT X

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CATEGORY IV - Smlall Equipmlent and Material (Cont'd.)

PROCUREMENT SCHEDULE FOR EOUIPMENT AND MATERIALScouNTRY- BURM,A eRRoOcC Tank IrrioatintioJ.Ec

URO8 2P8CUTE4 COST 8

D- O DULl*tTITY SENTC S 0NeD seRDN HW

Office Equipment fur PS 2

Monitoring & Evcaluation

20 Power Sprayers RP 2 REPTOiRIN T I

20 0D1V Sprayers PS 4

1 Peat Hole Digger PS 5 POES-

5 Elec. Pruning Saws PS 5 000

15 Power Scythes; PS 2 'RC,RRC-

Garden TolsPS 1

.. D EOALUAT-OCRITF.IC TCCUNRICI --CCUTICUCRI OUENCTC CO IDAEI EIVCE TCITOUEICV 15 o'0

P-T*ASIT [CALUOTI-E Rt.ROT -RC REC-1M4-ERT-OR TOIR TICCUC ' C.ACOUCOU ..- A1C0N$

0,IDA CUARARCE OP RERCNMENATIOPSS _ 00* CO_CAOT

CATEGORY V - Town Water Supply Equipment

BIJRMA PROCUREMENT SCHEDULE FOR EQUIPMENT AND MATERIALS Tank Project

SAUhTETO ERSIECT TakIrrigatiunPrjc

C_IDA PTIRE RE. ITEM oN ES T6 IM A

D_I"UE~ ~ ~ ~~~~~- iOUAflilAT10 NOIC S. OFE DID IS IRION S N IE_OlTO OTADDRPfULI CTD DEHATEA aN 6 TRANtMI OVIl-UAT,dRFR N AWADCS S REOMN AleO TO Rl-AIC NEGOTATION

M-RNITeAUADIT1 R109AN MECUUNDTIN TO DA)IOA 2SARNCAAF t-GMM,ATON

2 P-mps, 250 gpm fur ICE 27 TERMINAL -5-

Main pump station l.E

2 chlorination pu,Mps ICB 12I

1 Transformer HP 24 RESIDEDt

IGenerator -C- 27

3,000 Water meters ICE 92 T-IDE-

2Tapping machines IC-2-SIE - - -- ---

1 Hydraulic cutter ICE 2 RESISTSL ---- ----

Survey and drafting ICE 15 TIE

equipment------

Hand Tools P

Pipes[C 45I--------

PTTEMALIPICAITID ACTIOSTRCDMTTACIN-MI'T "IT 1-1 T.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~SN

R

STM RA EAWTRITER-IR T.'. CIRADILSIIAINAOTRTOONRT IA INTERIM AELC-LETISTRITCR-lIILMAAN

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,-M-IAE PRMEALTITTR-T-TI---SE M -R TEIIRENT E--TIN

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S-IMACLA.ATAEE ST TEREEEM-ANTI-N R-AL :11.

BURMATANK IRRIGATION PROJECT

Training Provision for Implementing Agencies

Total Requirements 1983 1984 1985 1986

SPECIALIZATION M an -22n d 4th 1st 2nd 3rd 4th 1st 2nd 3rd 4thStaff Months 1 St 2nd 3rd 4th 1 St 3r 4h 1S n 3Rainy

Season I I Season I eason I Season

IRRIGATION DEPARTMENT

PLANNING ENGINEERS (MULTIPURPOSE) 2 12 I I i 12 t II I I 12 I I I I~1

IRRIGATION SYSTEM DESIGNERS 2 12 I I I 1 I I

DAM DESIGNERS 2 12 1 1 I |

SOIL MECHANICS AND TESTING 2 12 12 I I I I I

CONCRETE DESIGN 1 6 r 6i

LAND CLASSIFIERS 1 6 I t I 1 I

I I ~~~~12 IIWATER MANAGEMENT ENGINEERS 2 12 I 1 r I

I 12 IENGINEERING SURVEYORS 2 12 r t I I I

SUBTOTAL 14 84 36 42 6

AGRICULTURAL CORPORATION 6 _6

OIL SEED CROPS 2 162

COTTON 1 6 L 6

HORTI CU LTUR E 2 12 LM 6 6 I 6

AGRICULURA COPOATO 66I

SAUTEROTAL 42 24 18

TOTAL 21 126 60 6 6

VVorld Bank-23815

-63-ANNEX 2Table 1

BURMA

TANK IRRIGATION PROJECT

Summary Cost Estimate 1/

Item Local Foreign Total Local Foreign Total % F.E.----------Kyats M -------- ----- Kyats

Kinmundaung

Civil WorksDam and Reservoir 7.9 0.9 8.8 1.10 0.12 1.22 10Irrigation & Drainage Facilities 6.2 0.4 6.6 0.86 0.06 0.92 6

Construction Camp & Roads 4.3 1.3 5.6 0.60 0.18 0.78 23Agric. Research & Ext. Facilities 1.0 - 1.0 0.14 - 0.14 -

Subtotal Civil Works 19.4 2.6 22.0 2.70 0.36 3.06 12

Equipment & Vehicles 6.7 26.4 33.1 0.93 3.67 4.60 80Engineering & Administration 4.1 - 4.1 0.57 - 0.57 -Physical Contingencies 3.5 0.4 3.9 0.49 0.05 0.54 9

Subtotal Base Costs 33.7 29.4 63.1 4.69 4.08 8.77 46

Price Contingencies 5.1 4.3 9.4 0.70 0.60 1.30 46

Subtotal Kinmundaung 38.8 33.7 72.5 5.39 4.68 10.07 46

Azin

Civil WorksDam and Reservoir 7.7 0.8 8.5 1.07 0.11 1.18 9

Irrig. & Drainage Facilities 4.2 0.3 4.5 0.58 0.04 0.62 6Construction Camp & Roads 3.5 0.9 4.4 0.49 0.13 0.62 21Mudon Water Supply Facilities 11.9 3.7 15.6 1.66 0.51 2.17 24State Farm Facilities 2.0 0.1 2.1 0.28 0.02 0.30 5

Agric. Res. & Ext. Facilities 0.4 0.1 0.5 0.05 0.01 0.06 17

Subtotal Civil Works 29.7 6.0 35.7 4.13 0.83 4.96 17

Equipment & Vehicles 8.9 31.0 39.9 1.23 4.31 5.54 uuEngineering & Administration 6.3 - 6.3 0.87 - 0.37 -Physical Contingencies 5.4 0.9 6.3 0.75 0.12 C.S7 14

Subtotal Base Cost 50.2 37.9 33.1 6.93 5.26 12.24 43

Price Contingencies 7.9 6.0 13.9 1.10 0.83 1.93 43

Subtotal Azin 58.2 43.8 102.0 8.08 6.09 14.17 43

Strengthening Implementing Agencies 2/

Technical Assistance 0.7 6.8 7.5 0.10 0.94 1.04 90Training - 2.7 2.7 - 0.38 0.38 100

Equipment & Vehicles 2.6 5.4 7.9 0.36 0.75 1.10 68

Subtotal 3.3 14.9 18.1 0.46 2.07 2.52 82

Price Contingencies 0.4 2.0 2.4 0.06 0.28 0.34 82

Subtotal Strengthening Implem. Agencies 3.7 16.9 20.6 0.52 2.35 2.86 82

Total Project Cost 100.7 94.4 195.1 14.00 13.10 27.10 48

1/ Includes US$ 1.0 M of reserved procurement items.2/ Includes Short-term Dam Specialist (US$ 20,000 total) and equipment

for monitoring (US$30,000 total).

-64- ANNEX 2Table 2

BURMA

TANK IRRIGATION PROJECT

Kinmundaung Subproject Cost Estimate

Item Local Foreign Total Local Foreign Total % F.E.Kinmundaung ------- Kyat M --------- _____----US$ M---------

Dam Structure 3.4 0.2 3.6 0.47 0.03 0.50 5Spillways 4.0 0.6 4.6 0.56 0.08 0.64 13Outlet Works 0.5 0.1 0.6 0.07 0.01 0.08 17Subtotal 7.9 0.9 8.8 1.10 0.12 1.22 10

Irrigation & DrainageFacilities

Rehab. Diversion Weir 0.6 0.1 0.7 0.08 0.02 0.10 14Canals & Laterals 1.8 - 1.8 0.25 - 0.25 -Drainage Channels 1.1 - 1.1 0.15 - 0.15 -On-farm Facilities 2.7 0.3 3.0 0.38 0.04 0.42 10Subtotal 6.2 0.4 6.6 0.86 0.06 0.92 6

Construction Camp & Roads

Construction Camp 3.4 1.2 4.6 0.47 0.17 0.64 26Access & Service Roads 0.9 0.1 1.0 0.13 0.01 0.14 10Subtotal 4.3 1.3 5.6 0.60 0.18 0.78 23

Agric. Research & ExtensionFacilitiesResearch & Training Farm:Storage Buildings 0.4 0 0.4 0.06 0 0.06Laboratory Building 0.3 0 0.3 0.04 0 0.04Staff Quarters 0.2 0 0.2 0.03 0 0.03

Extension Training Center 0.1 0 0.1 0.01 0 0.01Subtotal 1.0 0.0 1.0 0.14 0 0.14

Subtotal Civil Works 19.4 2.6 22.0 2.70 0.36 3.06 12

Equipment & Vehicles

Construction 5.8 25.2 31.0 0.80 3.50 4.30 810&M 0.6 0.3 0.9 0.08 0.04 0.12 33Research & Extension 0.4 0.9 1.3 0.05 0.13 0.18 72

Subtotal 6.7 26.4 33.1 0.93 3.67 4.60 80

Engineering & Admin. 1/ 4.1 - 4.1 0.57 - 0.57 -Physical Contingencies 2/ 3.5 0.4 3.9 0.49 0.05 0.54 111

Subtotal Base Costs 33.7 29.4 63.1 4.69 4.08 8.77 46

Price Contingencies 5.1 4.3 9.4 0.70 0.60 1.30 46

Total Kinmundaung Cost 38.8 33.7 72.5 5.39 4.68 10.07 46

1/ 12% of civil works, and construction equipment/vehicles (net of residual value).2/ 15% of civil works, engineering and administration.

-65- ANNEX 2

Table 3

BURMA

TANK IRRIGATION PROJECT

Azin Subproject Cost Estimate

Item Local Foreign Total Local Foreign Total % F.E.… Kyats M --------- -------- US$ M ---------

Azin Dam

Dam Structure 5.0 0.3 5.3 0.70 0.04 0.74 6Spillway 1.3 0.2 1.5 0.18 0.03 0.21 14

Outlet Works 1/ 1.4 0.3 1.7 0.19 0.04 0.23 18Subtotal 7.7 0.8 8.5 1.07 0.11 1.18 9

Irrigation & DrainageFacilities

Canal & Drainage Channels 2.2 0.1 2.3 0.31 0.01 0.32 4On-farm Facilities 2.0 0.2 2.2 0.27 0.03 0.30 9

Subtotal 4.2 0.3 4.5 0.58 0.04 0.62 7

Construction Camp & Roads

Construction Camp 3.4 0.9 4.3 0.57 0.13 0.60 21Access & Service Roads 0.1 - 0.1 0.02 - 0.02 -

Subtotal 3.5 0.9 4.4 0.49 0.13 0.62 20

Mudon Water Supply 2/

Water Production & Pump-

ing Works 5.4 0.6 6.0 0.75 0.08 0.83 10Water Distribution System 6.1 3.1 9.2 0.85 0.43 1.28 34Buildings 0.4 - 0.4 0.06 - 0.06 -

Subtotal 11.9 3.7 15.6 1.66 0.51 2.17 24

State Farm 2/

Administration Building 0.2 0.1 0.3 0.02 0.02 0.04 33Storage 0.2 - 0.2 0.03 - 0.03 -Staff Quarters 1.4 - 1.4 0.20 - 0.20 -Concrete Tanks 0.2 - 0.2 0.03 - 0.03 -

Subtotal 2.0 0.1 2.1 0.28 0.02 0.30 5

Agric. Research & ExtensionFacilities

Research Farm Buildings 0.3 0.1 0.4 0.04 0.01 0.05 25Extension Training Order 0.1 - 0.1 0.01 - 0.01 -

Subtotal 0.4 0.1 0.5 0.05 0.01 0.06 20

Subtotal Civil Works 29.7 6.0 35.7 4.13 0.83 4.96 17

Equipment & Vehicles

Construction 6.1 28.7 34.8 0.85 3.98 4.83 82O&M 0.6 0.1 0.7 0.08 0.02 0.10 20

Mudon Water Supply 0.8 1.1 1.9 0.11 0.16 0.27 59State Farm 1.0 0.4 1.4 0.14 0.05 0,19 26Research & Extension 0.4 0.7 1.1 0.05 0.10 0.15 67

Subtotal 8.9 31.0 39.9 1.23 4.31 5.54 78

Engineering & Admin. 3/ 6.3 - 6.3 0.87 - 0.87 -Physical Contingencies 4/ 5.4 0.9 6.3 0.75 0.12 0.87 14

Subtotal Base Costs 50.2 37.9 88.1 6.98 5.26 12.24 43

Price Contingencies 7.9 6.0 13.9 1.10 0.83 1.93 43

Total Azin Subproject 58.1 43.9 102.0 8.08 6.09 14.17 43

1/ Includes cost of Mudon Water Supply Pipeline to filter plant.2/ Not including Equipment and Vehicles.

3/ 12% of civil works, and construction equipment/vehicles (net of residual value).41 15% of civil works, engineering and administration.

-66-

BURMA, ANNEX 2Table 4

TANK IRRIGATION PROJECT

Mudon Water Supply Cost Estimate

Local Foreign Total Local Foreign Total x F.E.-------Kyat '000--------- --------US$ '000----------

Water Production & Pumping Works

Inlet Pipe (1000 ft) 30 110 140 4 15 19Treatment Plant:Slow Sand Filter (0.6 IMgd) 1/ 1,740 20 1,760 242 3 245Clear water Reservoir (500,000 Ig) 2,860 30 2,890 397 4 401

Main Pumping Station 2/ 740 430 1,170 103 60 163Subtotal 5,370 590 5,960 746 82 828 10

Water Distribution System

Water Mains (incl. 140 standpipes and30 fire hydrants) 3/ 3,040 3,020 6,060 422 419 841

Elevated Service Reservoir (100 ft high,cap. 130,000 Igs) 3010 80 3090 418 11 429

Subtotal 6,050 3,100 9,150 840 430 1,270 34

Operational Buildings 4/ 440 0 440 61 - 61 0

Subtotal 1-3 11,860 3,690 15,550 1,647 512 2,159 24

Engineering & Administration 1,710 0 1,710 238 - 238

Physical Contingencies (15%) 2,040 550 2,590 283 77 360Subtotal 15,610 4,240 19,850 2,168 589 2,757 21

Equipment & Vehicles 5/ 790 1,150 1,940 110 160 270 59

Subtotal 16,400 5,390 21,790 2,278 749 3,027 25

Price Contingencies 3,620 1,190 4,810 503 165 66b 25

Total Mudon Water Supply 20,020 6,580 26,600 2,781 914 3,695 25

1/ Includes inflow structure, filters and chlorination plant. (Cost of chlorination pumps includedin equipment costs).

2/ Includes 12 inch diameter pumping main, 7,000 ft long. Cost of two pumps (850 Igpm capacity), standbygenerator and transformer included in equipment costs.

3/ Includes 2,900 ft of 12-in pipe, 4,100 ft of 10-inch pipe, 9,900 ft of 8-inch pipe, 19,300 ft of 6-inchpipe, 31,800 ft of 4-inch pipe and 2,800 ft of 3-inch pipe.

4/ Includes three, 2-unit staff quarters buildings, one store/workshop and construction of a pipeyard andcompound fence at treatment plant site.

5/ Annex 2, Table 6.

-67-ANNEX 2

BU_MA Table 5

TANK IRRIGATION PROJECT

Strengthening of Implementing Agencies

Local Foreign Total Local Foreign Total % F.E.-------Kyat '000 --------- -------- US$ 000 …-----

Consultancy Services -/

Irrigation Department (76 mm) 660 6,240 6,900 92 866 958 90Mudon Water Supply ( 5 mm) 40 410 450 6 57 63 90

Subtotal (81 mm) 700 6,650 7,350 98 923 1,021 90

Dam Review Specialist 10 130 140 2 18 20 90

Overseas Training -/

Irrigation Department (84 mm) - 1,810 1,810 - 252 252 100Agricultural Corp. (42 mm) _ 910 910 - 126 126 100

Subtotal (126 mm) - 3,720 3,720 - 378 378 100

Equipment and Vehicles 3/

Irrigation Department 2,340 5.360 7,700 325 745 1,070 70Agricultural Corp. (monitoring) 220 20 240 30 3 33 9

Subtotal 2,560 5,380 7,940 355 748 1,103 68Base Costs 3,270 14,890 18,160 455 2,067 2,522 82

Price Contingencies 440 2,010 2,450 61 279 340 82

Total 3,720 16,890 20,610 516 2,34e 2,o62 82

1/ Estimated average cost per man-month:

Consultant's Billing Cost US$ 9,000Int'l Travel & Related Costs 2,000Other Reimbursable F.C. Costs 400Per Diem and/or Housing 1,000Other Local Costs 200

Total US$12,600

2/ Estimated average cost per month: uS$ 3,000

3/ Ref. Annex 2, Table 7.

-68- ANNEX 2

Tabie 6

BURMA

TANK IRRIGATION PROJECT

Annual Operation and Maintenance Cost

Kinmundaung Kyat US$

Staff Costs and Allowances 134,640 18,170

Diesel and Gasoline 32,400 4,500

Other Materials and Supplies 12,960 1,800

Total Annual Cost 180,000 25,000

Cost per ac (5,000 ac) 36 5.00

Azin

Staff Costs and Allowances 97,560 13,550

Diesel and Gasoline 21,240 2,950

Other Materials and Supplies 10,800 1,500

Total Annual Cost 129,600 18,000

Cost per ac of Irrigated Area (2800 ac) 1/ 43 6.00

1/ 46% of O&M Cost (K59,800) is on Azin Dam. Since about 14% of waterfrom Dam is for Mudon water supply, about 59,800 x 0.14 - K8,370 ofO&M Costs is for Mudon. K129,600 - 8,370 = K121,230 for Irrigation.

-69-ANNEX 2Table 7Page 1 of 7

BURMA

Tank Irrigation Project

List of Equipment and Vehicles

Estimated CostC.I.F. Rangoon

Quantity Unit Price Total Cost

Item --------US$'000--------

I. Construction Equipment - Kinmundaung _/

Tractor Dozer, w/ Ripper, 300 HP 2 265.0 530.0Tractor Dozer, w/ Ripper, 200 HP 3 180.0 540.0Frontend Loader, Wheeled, 4 c.y. 2 160.0 320.0Dump Truck, 12 c.y. 6 60.0 360.0Dump Truck, 5 c.y. 2 24.0 48.0Motor Grader, 135 HP 1 100.0 100.0Motor Grader, 70 HP 1 55.0 55.0Hydraulic Excavator, Track, 195 HP 1 270.0 270.0Sheep Foot Roller, Twin Type 2 6.0 12.0Water Bowser, w/ Spray Bar, 1200 Gal. 3 RP 2/ RP 2/Mobile Crane, 5 Ton 1 100.0 100.0Crushing Plant, w/ Classifier, 300 CFH 1 90.0 90.0Farm Tractor, w/ Dozer & Bucket, 60 HP 1 45.0 45.0Tracked Tractor, w/ Vib. Roller, 1.4 m, 35 HP 1 60.0 60.0Farm Tractor, w/ Trailer, 50 HP 2 RP 2/ RP 2/Grout Pump, High Pressure, w/ Accessories 2 15.0 30.0Concrete Mixer, 3/4 c.y. 2 20.0 40.0Compressor, 600 CFM 2 35.0 70.0Pneumatic Drill, w/ Accessories 3 3.0 9.0Generator, 35 KW, Diesel 2 8.5 17.0Concrete Vibrator, Mechanical 6 1.0 6.0Road Roller, Drum Type, 8-10 Ton 1 35.0 35.0Centrifugal Pump, 1200 GPM 2 RP 2/ RP 2/Bar Cutting & Bending Machines 1 5.0 5.0Arc Welding Set 1 15.0 15.0Oil Tanker, TE 11, 1500 Gal. 3 RP 2/ RP 2/Flat Bed Truck, 8 Ton 3 15.0 45.0X-2000, Mazda Jeep, 1/2 Ton 7 RP 2/ RP 2/Telecommunication Equipment L.S. 10.0 10.0Laboratory Equip. (Concrete & Soil Mech.) L.S. 25.0 25.0Misc. Tools and Equipment 3/ L.S. 15.0 15.0

Subtotal 2,852.0 4/

Spare Parts (25%) 718.0 4/

Subtotal 3,570.0 4/

Duties, Taxes & Port Costs 530.0 4/

Total - Group I 4,100.00 4/

1/ Some equipment to be transferred to operating office for O&M use after completionof construction work.

2/ Reserved Procurement (See ANNEX 2, Table 7, Page 6 of 7).3/ Includes 20 heavy duty chainsaws withi 100% spare parts.4/ Non-reserved Procurement items only.

-70-ANNEX 2Table 7Page 2 of 7

Estimated CostC.I.F. Rangoon

Quantity Unit Cost Total CostItem --------US$'000------

II. Construction Equipment - Azin 1/

Tractor Dozer, W/Ripper, 300 HP 2 265.0 530.0Tractor Dozer, w/Ripper, 200 HP 3 180.0 540.0Frontend Loader, Wheeled, 4 c.y. 3 160.0 480.0Dump Truck, 12 c.y. 9 60.0 540.0Dump Truck, 5 c.y. 2 24.0 48.0Motor Grader, 135 HP 1 100.0 100.0Motor Grader, 70 HP 1 55.0 55.0Hydraulic Excavator, Tracked, 195 HP 1 270.0 270.0Sheepfoot Roller, Twin Type 2 6.0 12.0Water Bowser, w/ Spray Bar, 1200 Gal. 3 RP 2/ RP 2/Mobile Crane, 5 Ton 1 100.0 100.0Crushing Plant, w/ Classifier, 300 CFH 1 90.0 90.0Farm Tractor, w/ Dozer & Bucket,60 HP 1 45.0 45.0Tracked Tractor, w/ 1.4 m Vib. Roller, 35 HP 1 60.0 60.0Farm Tractor, w/ Trailer, 50 HP 1 RP 2/ RP 2/Pneumatic Drill, w/ Accessories 3 3.0 9.0Grout Pump, High Pressure, w/ Accessories 2 15.0 30.0Concrete Batching Plant, 12-15 CYH 1 50.0 50.0Concrete Mixer, 3/4 c.y. 2 20.0 40.0Compressor, 600 CFM 2 35.0 70.0Generator, 35 KW, Diesel 2 8.5 17.0Concrete Vibrator, Mechanical 6 1.0 6.0Road Roller, Drum Type, 8-10 Ton 1 35.0 35.0Centrifugal Pump, 1200 GPM 2 RP 2/ RP 2/Bar Cutting & Bending Machine 1 5.0 5.0Water Supply Pump, High Lift, 30 GPM 2 6.0 12.0Oil Tanker, TE 11, 1500 Gal. 3 RP 2/ RP 2/Flat Bed Truck, 8 Ton 4 15.0 60.0X-2000, Mazda Jeep, 1/2 Ton 7 RP 2/ RP 2/Telecommunication Equipment L.S. 10.0 10.0Lab. Equip. (Concrete & Soil Mech.) L.S. 25.0 25.0Miscellaneous Tools & Equip. 3/ L.S. 15.0 15.0

Subtotal 3,254.0 4/

Spare Parts (25%) 798.0 4/

Subtotal 4,050.0 4/

Duties, Taxes & Port Costs 600.0 4/

Total-Group II 4,650.0 4/

1/ Some equipment to be transferred to operating office forO&M use after completion of construction work.

2/ Reserved Procurement (See ANNEX 2, Table 7, Page 6 of 7).3/ Includes 20 heavy duty chainsaws with 100% spare parts.74/ Non-reserved Procurement items only.

-71-

ANNEX 2Table 7Page 3 of 7

Estimated CostC.I.F. Rangoon

Quantity Unit Cost Total CostItem --- US$'000------

III. O&M Equipment- Kinmundaung

X-2000, Mazda Jeep, 1/2 Ton, 4x4 5 RP 1/ RP 1/Motor Cycle, 100 cc 4 1.0 4.0Compressor, 150 CFM 1 10.0 10.0Water Pump, 30 GPM 2 6.0 12.0Shop Equipment & Misc. Tools L.S. 10.0 10.0

Subtotal 36.0 2/

Spare Parts (23%) 8.0 2/

Subtotal 44.0 2/

Duties, Taxes& Port Costs 6.0 2/

Total - Group III 50.0 2/

IV. O&M Equipment - Azin

X-2000, Mazda Jeep, 1/2 Ton, 4x4 5 RP 1/ RP 1/Motorcycle, 100 cc 4 1.0 4.0Compressor, 150 CFM 1 10.0 10.0Shop Equipment & Misc. Tools l.S. 10.0 10.0

Subtotal 24.0 2/

Spare Parts (23%) 6.0 2/

Subtotal 30.0 2/

Duties, Taxes & Port Costs 5.0 2/

Total-Group IV 35.0 2/

V. Mudon Water Supply Equipment - Azin

Pump, 850 GPM (Main Pump Station) 2 11.0 22.0Pump, Chlorination 2 5.0 10.0Transformer, 300 KVA, 11/0.4 KV 1 RP 1/ RP 1/Generator 1 22.0 22.0Water Meter 3000 0.025 75.0Tapping Machine 2 0.75 1.5X-2000, Mazda Jeep, 1/2 Ton, 4x4 2 RP 1/ RP 1/Hydraulic Pipe Cutter 1 1.5 1.5Surveying & Drafting Instruments L.S. 15.0 15.0Hand Tools L.S. 3.0 3.0

Subtotal 150.0 2/

Spare Parts (23%) 32.0 2/

Subtotal 182.0 2/Duties, Taxes & Port Costs 28.0 2/

Total - Group V 210.0 2/

1/ Reserved Procurement (See ANNEX 2, Table 7, Page 6 of 7)2/ Non-reserved Procurement items only.

-72-

ANNEX 2Table 7Page 4 of 7

Estimated CostC.I.F. Rangoon

Quantity Unit Cost Total CostItem -- US$ '000--------

VI. Equipment for Strengthening ID

X-2000, Mazda Jeep, 1/2 Ton, 4x4 15 RP 1/ RP 1/Core Drills, w/ Bits & Rods 4 60.0 240.0Power Augers, w/ 35 HP Tractor 6 40.0 240.0Land Classifier Equipment & Materials L.S. 15.0 15.0Hydrological Equipment L.S. 25.0 25.0Surveying Instruments L.S. 30.0 30.0Office Equipment L.S. 80.0 80.0

Subtotal 630.0

Spare Parts (23%) 145.0

Subtotal 775.0

Duties, Taxes & Port Costs 115.0

Total - Group VI 890.0

VII. State Farm Equipment - Azin

Tractor with Trailer,50 HP 2 RP 1/ RP 1/Tractor Implements 2 5.0 10.0Power Tiller 4 RP I1/ RP 1/Power Mist Blower 2 0.5 1.0Power Sprayer 20 PP 1/ RP 1/ULV Sprayer 20 0.2 4.0Post Hole Digger 1 5.0 5.0Electric Pruning Saw 5 1.0 5.0Power Scythe 10 0.2 2.0Garden Tool Set L.S. 10.06.5 Ton Diesel Truck 1 RP 1/ RP 1/X-2000, Mazda Jeep, i Ton, 4x4 2 RP 1/ RP 1/Motorcycles, 100 cc 6 1.0 6.0Bicycles 12 RP I/ RP 1/Office Equipment and Furniture Set L.S. 10.0

Subtotal 53.0

Spare Parts (23%) 12.0

Subtotal 65.0

Duties, Taxes and Ports Costs 10.0

Total - Group VII 75.0

1/ Reserved Procurement (See ANNEX 2, Table 7, Page 6 of 7).2/ Non-reserved Procurement items only.

-73-

ANNEX 2Table 7Page 5 of 7

Estimated CostC.I.F. Rangoon

Quantity Unit Cost Total CostItem --------US$'000 …

VIII. Research, Extension andMonitoring Equipment

Kinmundaung

Research & Training FarmSprinkler Unit Set 1 40.0 40.0Tractor w/ Trailer, 50 HP 1 RP 1/ RP 1/Tipper w/ Winch, Model TE 2 RP 1/ RP 1/Laboratory Equipment L.S. 18.0 18.0Aerometeorological Equipment L.S. 4.0 4.0

Extension ProgramAudio-visual Equipment L.S. 15.0 15.0Office and Other Equipment L.S. 10.0 10.0X-2000, Mazda Jeep, ½ Ton, 4x4 1 RP 1/ RP 1/Bicycle 7 RP1/ RP 1/

Azin

Research & Training FarmIrrigation Equipment L.S. 27.0 27.0Tractor w/ Trailer, 50 HP 1 RP 1/ RP 1/Tipper w/ Winch, Model TE 1 RP 1/ RP 1/Laboratory Equipment L.S. 18.0 18.0Aerometeorological Equipment L.S. 4.0 4.0

Extension ProgramAudio-visual Equipment L.S. 15.0 15.0Office and Other Equipment L.S. 10.0 10.0X-2000, Mazda Jeep, ½ Ton, 4x4 1 RP 1/ RP 1/Bicycle 7 RP l/ RP 1/

Monitoring and Evaluation Program

X-2000, Mazda Jeep, ½ Ton, 4x4 2 RP 1/ RP 1/Bicycle 15 RP1/ RP1/Office Equipment L.S. 2.0 2.0

Subtotal 163.0 2/

Spare Parts (23%) 37.0 2/

Subtotal 200.0 2/

Customs, Duties and Port Costs 30.0 2/

Total - Group VIII 230.0 2/

IX. Grand Total Equipment (Without Price Contingencies) 10,240.0 2/

1/ Reserved Procurement (See ANNIEX 2, Table 7, Page 6 of 7)./ Non_reseryed Drocurenent items onl-.

-74- ANNEX 2Table 7Page 6 of 7

BURMA

TANK IRRIGATION PROJECT

List of Equipment and Vehicles for Reserved Procurement

Unit Total ScheduledI. For Construction Quantity Cost Cost Delivery Date

______-------(US$ '000)…------Water Boser, TEll, 1,200 Gal. 6 20.0 120.0 9/83Farm Tractor, w/Trailer, 50 HP 3 7.5 22.5 9/83Centrifugal Pump, 1,200 Gal., Diesel 4 10.0 40.0 9/83Oil Tankar, TEll, 1,200 Gal. 6 20.0 120.0 9/83X-2000, Mazda Jeep, 1/2 Ton, 4x4, Model XV.1 14 8.0 112.0 9/83

II. For O&M of Dams and Irrig. Facilities

X-2000, Mazda Jeep, 1/2 Ton, 4x4, Model XV.1 10 8.0 80.0 8/86

III. For Hudson Water Supply

Transformer, 300 KVA, 11/0.4 KV 1 20.0 20.0 8/84X-2000, Mazda Jeep, 1/2 Ton, 4x4, Model XV.1 2 8.0 16.0 9/83

IV. For Strengthening Irrig. Dept.

X-2000, Mazda Jeep, 1/2 Ton, 4x4 Model XV.1 15 8.0 120.0 9/83 (13 Nos)8/86 (2 Nos)

V. For State Farm - Azin

Farm Tractor, w/Trailer, 50 HP 2 7.5 15.0 9/83Power Tiller, w/Diesel Engine 4 3.0 12.0 9/86Power Sprayer 20 0.1 2.0 9/86X-2000, Mazda Jeep, 1/2 Ton, 4x4, Model XV.1 2 8.0 16.0 9/83Diesel Truck, 6.5 Ton, Model TE21AZ 1 14.0 14.0 8/86Bicycle, Mg Ba Ma 12 0.1 1.2 7/86

VI. For Research, Extension and Monitoring

Farm Tractor w/Trailer, 50 HP 2 7.5 15.0 9/83Tipper Truck, Model TE 3 14.0 42.0 9/83X-2000, Mazda Jeep, 1/2 Ton, 4x4, Model XV.1 4 8.0 32.0 9/83Bicycle, Mg Ba Ma 29 0.1 2.9 9/83

Subtotal 802.6

Spare Parts (20%) 160.4Subtotal 963.0

Price Contingencies (4%) 37.0Total 1,000.0

-75- ANNEX 2Table 7Page 7 of 7

BURMA

Tank Irrigation Project

Summary of Equipment & Vehicle Requirements

Estimated CostLocal Foreign Total-…-…-- -US$ 000---------

I. Procurement by ICB or Prudent Shopping 1/

Construction Equipment - Kinmundaung 600 3,500 4,100

Construction Equipment - Azin 670 3,980 4,650

O&M Equipment - Kinmundaung 15 35 50

O&M Equipment - Azin (Irrigation) 15 20 35

Mudon Water Supply Equipment- Azin 50 160 210

Strengthening Irrigation Department 145 745 890

State Farm Equipment 30 45 75

Research, Extension & Monitoring Equipment 35 195 230

Subtotal 1,560 8,680 10,240

Price Contingencies 170 930 1,100

Total 1,730 9,610 11,340

II. Reserved Procurement 1,000 - 1,000

III. Total Equipment and Vehicles 2,730 9,610 12,340

1/ Includes US$1,324,000 of duties, taxes and port charges.

-76- ANNEX 2Table 8

BURMA

TANK IRRIGATION PROJECT

Schedule of Expenditures(US$ 1000)

Total 1983 1984 1985 1986---------------- Calendar Years --------------

Kinmundaung

Dam, Res., Camp & Roads 2,000 550 450 510 490Irr. & Drainage Facilities 920 - 280 360 280Agri. Research & Ext.Facilities 140 65 65 10 -

Subtotal 3,060 615 795 880 770

Engin. & Administration 570 16-) 160 150 1)0Physical Contingencies _4) 125 14) _152 13)

Subtotal 4,170 895 1,095 1,180 1,000Price Contingencies 875 75 180 290 330

Subtotal 5,045 970 1,275 1,470 1,330Equipment and Vehicles 4,600 4,330 150 - 120Price Contingencies 425 360 25 - 40

Subtotal - Kinnundaung 10,070 5,660 1,450 1,470 1,490

Azin

Dam, Reservoir, Camp and Roads 1,800 295 580 545 380Irrigation & Drainage Facilities 625 - 220 210 195Mudon Water Supply Facilities 2,170 585 870 650 65State Farm Buildings 300 - - 100 200

Agric. Research & Extension Facilities 65 30 30 5 -Subtotal 4,960 910 1,700 1,510 840

Engineering & Administration 870 240 240 230 160Physical Contingencies 870 170 290 260 150

Subtotal 6,700 1,320 2,230 2,000 1,150Price Contingencies 1,360 110 370 500 380

Subtotal 8,060 1,430 2,600 2,500 1,530Equipment & Vehicles 5,540 4,750 490 30 270Price Contingencies 570 390 80 10 90

Subtotal - Azin 14,170 6,570 3,170 2,540 1 830

Strengthening Implementing Agencies 1/

Technical Assistance 1,040 410 240 330 60Training 380 180 180 20 -Equipment & Vehicles 10l0 770 330 - -

Subtotal 2,520 1,360 750 350 60Price Contingencies 340 110 120 90 20

Subtotal - Streng. Imp. Agencies 2,860 1,470 870 440 80

Total 27,100 13,7(0 5 , 0 4 4Z) 3 4__

1/ Includes short-term dam specialist (US$20,000 total) and equipment for monitoring(US$20,000 total).

-77-

ANNEX 2Table 9

BURMA

Tank Irrigation Project

Proposed Allocation of the Credit

AmountAllocated 1/ % of Expenditures

Category US$ M Equivalent to be Financed

I. Civil Works 6.6 50 % of total expenditures

II. Equipment & Vehicles 9.7 100% of foreign expendituresfor directly imported items.100% of local expenditures(ex-factory) for locally ma-nufactured items, and 75% oflocally procured items.

III. Consultants and Overseas Training 1.6 100% of expenditures forconsultants and short-termDam Specialist, and 100% ofoverseas training costs.

IV. Unallocated 1.1

Total 19.0

1/ Including expected price increases.

-78-

ANNEX 2Table 10

BURMA

Tank Irrigation Project

Estimated Schedule of Disbursements(US$ M Equivalent)

AccumulatedIDA Fiscal Year Disbursements Disbursements

and Semester ---- US$ M---- ---- US$ M----

198312 0.7 0.7

19841 2.3 3.02 3.1 6.1

19851 3.8 9.92 3.2 13.1

19861 1.6 14.72 1.5 16.2

19871 1.2 17.42 1.0 18.4

19881 0.6 19.0

-79- ANNEX 3Page 1 of 5

BURMA

TANK IRRIGATION PROJECT

Strengthening of Implementing Agencies

Terms of Reference for Consultancy Services

I. BACKGROUND

1.1. During the last few years, operations of the Irrigation Department(ID) have expanded rapidly. Sanctioned staff positions increased fromabout 6,800 in 1973 to 19,500 in 1981 and the number of major projectsunder implementation from 8 to 16. The budget has increased nearlyseven-fold during this period and the rapid expansion has created strainswithin the organization. A major reorganization has been proposed includ-ing strengthening of the central divisions, particularly Planning andDesign, which have not expanded commensurately with the expansion of ID'soverall activities. Strengthening of planning and design capability is atop priority and GOB has agreed that consultancy services for this purposebe included in the proposed project under the terms of reference includedin this annex. Technical assistance also is required by the HousingDepartment (HD) and the Mudon Township Development Committee (TDC) in thepreparation of the Mudon Water Supply. Consultancy requirements for thiswork are also included herein. It is envisaged that the consulting serv-ices for ID would be provided by an internationally reputable consultingfirm and those for HD and Mudon TDC through recruitment of individualconsultants.

II. Strengthening of ID's Planning and Design CircleA. Objectives

2.1. In order to strengthen the planning and design capability ofID, the consultants would provide in-house advisory services ingeneral planning and training. In addition, as a means of providingpractical training, the consultants would assist the Planning andDesign Circle in carrying out two specific tasks: (a) preparationof the Second Tank Irrigation Project, and (b) preparation ofdetailed designs for one major sluice structure for the proposedLower Burma Paddy Development Project, Paddy III.

B. Planning and Training

2.2. Consultants would advise the Superintending Engineer in chargeof Planning and Design Circle and his staff in the following:

(1) detailed scheduling of the ID's resources (staff, equipment,facilities) to meet the investment program proposed for theFourth Four Year Plan and other ID responsibilities;

-80- ANNEX 3Page 2 of 5

(2) identification of training needs in the light of (1) above, andafter assessing present and future man-power and skill require-ments;

(3) planning and implementation of training activities includingthe 84 man-month overseas training program tentativelyidentified in Annex 1, Chart 7 of the Staff Appraisal Report;

(4) any other activities related to planning and design and in needof strengthening.

C. Second Tank Irrigation Project

2.3. The proposed Tank Irrigation Project is envisaged to be thefirst of a series of tank irrigation projects to be considered forexternal financing. In the Yin Chaung Basin of Magwe Division, IDhas started preliminary investigations for Ngnamin, Bagone, Yinmale,Sun and Sadon projects. In Mon state, ID has completed pre-feasibility study of the Winpanon project and initiated preliminaryinvestigations for other small dams such as Abit, Kamawet andHnipadaw. Although final responsibilities for preparing feasibilitystudy reports rest with ID, the consultants would provide guidance,and, to the extent possible make themselves involved with the studyworks to prepare a bankable scheme for the Second Tank IrrigationProject.

2.4. In particular, the consultants would assist ID in thefollowing :

(1) Project Planning and Investigation.

Overall planning and evaluation of alternatives for selectionand formulation of feasible irrigation, and where applicable,multipurpose projects in the Yin Chaung Basin and Mon State;

(2) Design and Cost Estimates for Selected Scheme(s).

(i) preparation of feasibility - level designs and costestimates suitable for project economic evaluationand inclusion in project feasibility reports;

(ii) detailed investigations and surveys including foundationexplorations and evaluation, topographic surveys, floodhydrology and routing studies, water supply and

requirement studies, and reservoir operationstudies;

-81-

ANNEX 3Page 3 of 5

(iii) preparation of final structures design (utilizing

results of above investigations and studies), finalrealistic cost estimates, and preparation of tenderdocuments and working drawings;

(iv) feasibility - level design and cost estimates ofdistribution systems and on-farm irrigation anddrainage facilities, including economicevaluation of alternatives.

(3) Preparation of feasibility/project preparation report forthe selected scheme(s), which should include:

(i) detailed description of project areas;

(ii) detailed description of project features includingfinal sizing and design criteria, final cost estimatesimplementation plans, and personnel and equipmentrequirements;

(iii) organization and management including operation andmaintenance;

(iv) production, marketing, farm incomes and cost recovery;

(v) economic analyses of proposed schemes;

(vi) various supporting data provided in the form ofannexes.

D. Lower Burma Paddy Development III (Paddy III)

2.5. Paddy III is currently under preparation by ID withassistance from the World Bank/FAG Cooperative Program(FAO/CP). The project is located on the opposite bank ofRangoon, delineated by Twante town at north and Kungyangonetown at south. The project is mainly intended forprojecting the area from floods and salt water intrusionas well as for providing adequate drainage system from theinland polderized area of about 250,000 acres (gross). The mainproject works include the construction of flood protectionembankments along the polder, providing adequate drainage networkin the area, construction of two major and five minor one waydrainage sluices for evacuation of overland water from differentsubdrainage areas, construction of dry season intake sluice, andvillage feeder road network. Since the preparatory activities arewell under way, consultancy services required are more precisely

-82-

ANNEX 3Page 4 of 5

defined: two specialists are required to assist in the design

of drainage network and drainage structures;

(1) The Drainage System expert would review the data available,and the proposals presented in the FAO/CP preparation report.He would then assist ID to finalise the design of the drainagesystem prior to the start of construction. In particular he

would ensure that all tidal records are based on consistentdatums.

(2) The Drainage Structure expert would review the site

investigation data and the drainage regimes at each site forseven drainage structures. The structures will be 8 ft by 6 ftbox culvert type with tidal flaps on the river side and slide

gates on the country side. In these structures, a 15 ft widenavigation lock will be provided. The anticipated maximumhydraulic head over the sluice would be about 16 ft. Thestructure will be founded on clay, silty clay, on fine sandintermixed with clay and silt, typical of deltaic areas.

The expert would assist ID with the design of one majorstructure, and would produce a design manual for similarstructures detailing the design steps, essential constructionspecifications, operating procedures, bar schedules and

quantities estimate, and construction schedule. He would ensurethat the design of each structure is capable of meeting the

drainage requirements, and that the structures are stable andhave adequate factors of safety under extreme hydraulic condi-

tions which might occur. The stilling basin and downstreamchannel configurations would be carefully examined.

E. Composition and Duration of Services

2.6. The consultants would be required from Mid-1983 to mid-1986and their duty station would be Rangoon. They would report to the

Superintending Engineer of the Planning and Design Circle, Irriga-tion Department. About 76 man-months of consultancy services wouldbe required with the following breakdown:

-83-ANNEX 3Page 5 of 5

Man-monthsGeneral (Planning and Training)

Project Manager (Water Res. Pl. Engineer) 20Training Specialist 4Unidentified 10

Subtotal 34

Preparation of Second Tank Irrigation Project

Dam Designer 6Foundation Engineer (Soil Mechanics) 6Irrigation Systems Structure Designer 5Soil Scientist/Soil Classifier 5Engineering Geologist 4Agro-economist 6Subtotal 32

Design Works for Paddy III

Drainage System Specialist 4Drainage Structure Specialist 6Subtotal 10

Total 76III. Consultancy Services for Mudon Water Supply

A. Water Supply Engineering Specialist

(1) Location : Rangoon and Mudon in appropriate governmentoffices;

(2) Duration : 3 months at end - 1982;

(3) Duties : Review all detailed designs and tender documentsand advise HD staff on completion of drawingsand documentation.

B. Financial Consultant

(1) Location : Mudon

(2) Duration : 2 months at end 1985

(3) Duties : Assist the Mudon Township Development Committeein establishing the necessary accounting,billing and collection systems.

-84- ANNEX 4Table 1

BURMA

TANK IRRIGATION PROJECT

Prices Used in Farm Budget and Economic Analysis

Kinnundaung AzinEst. 1990 Est.1990 Est. 1990 Est. 1990

Crop (K/m ton) Finan. Price Econ. Price 1/ Finan. Price Econ. Price 1/

Paddy - 1,433 2/ - 1,317 2/GOB Controlled 478 3/ - 478 3/ -Free Market 837 4/ - 765 4/ -

Cotton (Medium Staple) 4,278 5/ 5,862 2/ - -

Sesame 4,518 4,686 6/ - -Groundnut 3,960 2,811 8/ 6,788 7/ 2,716 2/Sunflower 4,335 4,686 6/ - -Maize 1,847 8/ 924 9/ - -

Beans/Pulses 2,200 1,100 9/ - -Pomela - - 2,780 10/ 1,390 9/Durian - - 2,670 10/ 1,335 9/Mango - - 1,000 10/ 500 9/Banana - - 1,390 10/ 695 9/Pineapple - - 750 10/ 375 9/

FertilizersUrea 480 11/ 1,840 2/ 773 12/ 2,040 2/TSP 1,440 11/ 2,020 2/ 1,250 -7 1,860 2/MP 1,200 11/ 1,2802/ 6002/ 1,120 2/Farmyard Manure for Field 15 12 T3/ 35 28 T3/

Crops (Cartload)Farmyard Manure for Orchard - - 80 64 13/

Crops (Cartload) 14/

Other Inputs (K/m ton)HYV Paddy Seeds 720 15/ 2,150 16/ 720 15/ 1,980 16/Local Paddy Seeds 920 17/ 1,580 18/ 842 17/ 1,450 18/Cotton Seed (K/m ton) 920 1,410 2/ - -Animal Labor 8.5 6.8 13/ 15.0 12.0 13/

(K/pair/half day)Human Labor

P,W (K/Manday) 5.8 19/ 4.0 20/ 8.5 19/ 6.4 20/W (K/Manday) 6.8 19/ 4.9 20/ 11.0 19/ 8.4 20/

1/ In constant 1982 currency units.2/ Details on economic price derivation are provided in Project File, Vol. VII.3/ K10/basket (46 lbs).4/ Market prices vary between K15-K20/basket; assume an average of K17.5/basket

for Kinmundaung, and K16.0/basket for Azin.5/ GOB-controlled procurement price of K7.0/viss (3.6 lbs).6/ Estimated economic price of shelled groundnuts used as estimate.7/ Assumed to be the weighted average of government controlled price of K46/

basket (25 lbs)(10%) and market price of K80/basket (90%).8/ Includes value of sheats.9/ Local price converted to border Kyats at estimated consumption goods conversion factor of 0.50.10/ Assumed to be 50% of average market prices in Moulmein: Pomelo (K5/fruit),

Durian (K5/fruit), Mango (0.5/fruit), Banana (K5/bundle), Pineapple (K3/fruit).11/ GOB controlled procurement price, including delivery costs.12/ Assumed to be the weighted average of government controlled price of K360/ton

(67%) and market price of K1600/ton (33%).13/ Local price converted to border Kyats at estimated standard conversion factor of 0.80.14/ Mix of manure, bats remain, sesame waste, peat soil, etc.15/ Gob-controlled price: K15.0/basket.16/ Assumed to be 50% higher than paddy price17/ Assumed to be 10% higher than market price.18/ Assumed to be 10% higher than paddy price.19/ Weighted average of wage prevailing in slack, intermediate, and peak months of the years.20/ Assume that financial wages exceed shadow wage rates in the intermediate period (by 40% in

Kinmiundaung, and 2% in Azin), but approximate shadow wage rates in the slack and peak periods.Economic wages were derived by adjusting weighted shadow wage rates in these periods with theSCF of 0.8.

-85- ANNEX 4Table 2a

B U RMA

TANK IRRIGATION PROJECT

Farm Budget and Rent Estimates(Kinmundaung)

For 5 Acre Farm (Kyats)

Inflow P W W

Paddy 1/ 846 889 2,749Cotton - - 3,850Sesame 271 298 1,694Groundnut - - 2,508

Sunflower - - 650

Maize 170 185 -Beans 99 _110 _ -

Total Crop Production 2/ 1,386 1,482 11,444Off Farm Income 517 508 310

Total Inflow 1,903 1,990 11,754

Outflow

Crop Production Cost 3/, 4/ 566 607 2,646

Net Farm Family Income 1,338 1,383 9,108

Per Capital 5/ 267 277 1,822

Rent

Net Farm Family Income 1,338 1,383 9,108Less: Depreciation 6/ 60 60 260

Imputed Value of Family Labor 7/ 480 514 2,860Management and Risk Fee 8/ 82 88 1,320Land Tax 9/ 20 20 20Water Charge 10/ - 50 50Off Farm Income 517 508 310

Implicit Rent 178 143 4,288Project Rent - - 4,145

1/ Includes quantities for seed, on-farm consumption, and quota.2/ Based on Annex 1, Table 8.3/ Assumes as per FAO/CP estimates that farm family members can find

employment for 15% of their free time, at K6.50/md.4/ Includes cost of bullock, materials, and interest on fixed assets (10% p.a.)

and seasonal credit (12% p.a.).5/ Assume average family size of 5.6/ Assume in P, W situation, fixed assets value is K300; in W situation, assume

it is K1300 due to purchase of a sprayer and other implements. Expected lifeof assets: 5 years with no salvage value.

7/ Imputed wage rate of family labor in P, W assumed to be K4/md;in W, assumed_to be K6.50/md.

8/ Assume in P, W "fee" is 10% of net farm income; in W, it rises to 15% ofnet farm income on account of increases in cultivation intensity.

9/ Land tax varies from K3 to K6/ac. Assume average of K4/ac.10/ As per the Water and Irrigation Tax Law of March 1982 (Kl0/ac per year).

-86-

ANNEX 4Table 2b

BURMA

TANK IRRIGATION PROJECT

Paddy Lands Farm Budget and Rent Estimates(Azin)

For 5 Acre Farm (Kyats)

P W w

InflowPaddy Quota 1/ 397 446 1,929Surplus Paddy 2/ 2,215 2,459 7,607

Total Crop Production 3/ 2,616 2,905 9,536Off Farm Income 4/ 2,080 2,080 1,248

Total Inflow 4,692 4,985 10,784

OutflowHired-in Labor 5/ - - 336

Other Crop Production Costs 6/ 1,029 1,058 3,657

Net Farm Family Income 3,663 3,927 7,127Per Capita 7/ 733 785 1,425

Rent

Net Farm Family Income 3,663 3,927 7,127Less: Depreciation 8/ 80 80 88

Imputed Value of Family Labor 9/ 1,015 1,059 3,401Management and Risk Fee 10/ 158 184 882Land Tax 11/ 25 25 25Water Charge 12/ - 50 50Off-farm Income 2,080 2,080 1,248

Implicit Farm Rent 305 449 1,433Project Rent - - 984

1/ Assumed to be 1/3 of quantity remaining after allowing 1.25 m tons for on-farm consumption and seed requirements.

2/ Includes 1.25 m tons valued at market price.3/ Based on Annex 1, Table 8.4/ Assume in P, W, off-farm (off-season) work available for 5 months

(20 days per month), and in W, for 3 months at K8 per manday.5/ Assume in W, 5% of total labor requirement hired at peak wage rate

of K15 per manday.6/ Includes cost of bullock, materials, interest on fixed assets (10% p.a.)

and seasonal credit (12% p.a.).7/ Assume family size of 5 members.8/ Assume in P, W, fixed assets value is K400; in W, it is increased by 10%

to K440. Expected life of assets: 5 years with no salvage value.9/ In P, W, family labor value imputed at K7 per manday; in W, it is imputed

at K8 per manday.10/ Assume in P, W, "fee" is 10% of net farm income; in W, it rises to 15% on

account of increased cropping intensities.11/ Land tax varies from K3 to K6/ac. Assume average of K5/ac.12/ As per the Water and Irrigation Tax Law of March 1982 (KIO/ac per year).

-07-ANNEX 4Table

2c

TANK IRRI6ATION PJECT

AZIN: PILOT ORCHARD SDEE

Fm nUBSE

Future 4 AC FARN

Futuret-- Without --- -------------------------------------- ------- --------- Future With -----------------

Project Year 1-4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21-30 PV 12/---- ---- ---- -- _ - - -- - - - - - - - - --- - - -- - -- --- -- -- -- - - ---- - - - - - - - - - - - - - - -- - - - - - - - - - - - - --- - - - - --------- - -_

IWLIW

FPRr PRODUCTION 1/ - 1030 10692 12845 14883 16718 17967 18203 23694 31505 41443 50563 58564 65445 70245 73i26 75046 76006 211159OFF-FARM IEWSE 2/ - 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 1200 7509

TOTAL INFL0W - 2230 11892 14045 16083 17918 19167 19403 24894 32705 42643 51763 59764 66"45 71445 74326 76246 77206 218668

OUTFLOW

99R0D1CTION COSTS - 12383 10447 11362 12276 9052 8395 8092 7044 7595 7715 7775 7835 7095 7895 7895 7895 7095 58010LAND TAX T / 4 00 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 250WATER CHARGE 4/ - 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 250

- -- - - --- - --- - ---- - ---- - - - - ------ - - - - ------- - - -- -- - ---- - -- - - ---- - -- - - - --- - - -- - - - - - - - -

TOTAL OUTFLOW - 12463 10527 11442 12356 9132 8475 8172 7924 7675 7795 7855 7915 7975 7975 7975 7975 7975 58511

N.9F00 IL8.B.FIN. 2450 -10232 1365 2603 3727 8785 10692 11230 16970 25030 34847 43900 51849 58670 63470 66351 68271 69231 167923

FINANCING

LOAN RECEIPT 5/ - 11000 5000 - - - - - - - - - - - - - - - 9653

DEBT SERVICE 6/ - - - - - 5293 4993 4700 4441 4191 3955 - - - - - - - 9490

N.FAR0 INC.A.FIN. 2450 7/ 2450 768 6365 2603 3727 3492 5699 6522 12529 20039 3OB92 439O8 51849 58670 63470 66351 6B271 69231 168086

INCR FARM INC3 MEI1-W) - -1682 3915 153 1277 1042 3249 4072 10079 18389 28442 4145B 49399 56220 61020 63901 65821 66781 144990

PER CAPIT0 8/ - -336 783 31 255 208 650 814 2016 3678 5688 8292 9880 11244 12204 12700 13164 13356 28998

PROJECT RENT

N.INC.A.FIN.B.TWX 9/ 2450 848 6445 2683 3807 3572 5779 6602 12609 20919 30972 43908 51929 58750 63550 66431 68351 69311 168586LESS:IMP.'0L. FAM.LABOR 10/ - 883 700 802 903 569 514 490 473 456 504 528 552 576 576 576 576 576 3973

NOT I RISK FEE II/ - 200 200 445 782 2300 2872 3033 4755 7172 10118 12836 15219 17265 18705 19569 20145 20433 48255L4ND TAX 3/ - 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 250WATER CHARGE 4/ - 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 250

_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - --- - ----- - - - - -- - - - -- - - - - - --- - --- - --- - -

IMPLICIT RENT 2450 -315 5465 1357 2043 623 2313 2999 7301 13210 20270 30544 36078 40829 44189 46205 47550 48222 115858

PROECT RENT - -2765 3015 -1093 -407 -1827 -137 549 4851 10760 17820 28094 33620 38379 41739 43755 45100 45772 92762

1/ Reference Project File, Vol. IX.2/ Assume off-farm (off-season) work available for 3 months (20 days per month) at KR per man-day for average 2.6 working members per family.3/ Land tax for garden lands varies from K3.5 to K12 per ac. Assumed at KIO per acre.4/ KIO per acre of cultivated land.5/ About 80% of initial two year cost of fence, seedlings, fertilizers and other materials and farm implements.6/ Assume 10 year loan at 14% p.a. interest. Principals and interest are to be repaid in equal annual payments (K6680) after 3 years of

grace period. Amounts shown are deflated assuming annual inflation of 6%.7/ Assumed at about 40% (K490 in 1982 prices) of national average per capita income times the number of average family members (five).8/ Assume five member family.9/ Net income after financing but before Benefit Taxes.

10/ Wage rates assumed at KR per man-day.11/ Assumed to be 30% of the net farm output reflecting high risk of orchard operation.

12/ occ = 10%.

BURMA

TANK IRRIGATION PROJECT

AZIN SUBPROJECT ORCHARD COMPONENT

PLANTED AREA AND PRODUCTION

250 AC STATE FARM

(K1,000)

Project Year 1-4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20-30

PLANTED AREA(AC)

MAIN CROPS 1/

POMELO - 60.0 90.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0DURIAN - 45.0 67.5 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0MANGO - 45.0 67.5 75.0 75.0 75.0 75.0 75.0 75.0 75,0 75.0 75.0 75.0 75.0 75.0 75.0 75.0INTER-CROPS .

PINEAPPLE - 30.0 34.8 29.9 22.8 20.5 8.0 2.0 - - - - - - - - -

BANANA - 19.8 24.9 22.8 20.5 20.0 8.0 2.0 - - - - - - - - -

GROUNDNUT - 15.0 17.4 15.0 11.4 10.3 4.0 1.0 - - - - - - - - -

TOT CROPPED AREA - 214.8 302.1 317.7 304.7 300.8 270.0 255.0 250.0 250.0 250.0 250.0 250.0 250.0 250.0 250.0 250.0

PRODUCTION(TONS)

MAIN CROPS 1/

POMELO - - - - - - 108.0 270.0 450.0 630.0 810.0 882.G 900.0 900.0 900.0 900.0 900.0DURIAN - - - - - - - - - - 67.5 168.8 281,2 393.7 506.3 551.3 562.5

MANGO - - - - - 90.0 225.0 375.0 525.0 675.0 735.0 750.0 750.0 750.0 750.0 750.0INTER-CROPS

PINEAPPLE - - 600.0 696.0 598.0 456.0 410.0 160.0 40.0 - - - - - - - -BANANA - - 316.8 398.4 364.8 328.0 320.0 128.0 32.0 - - - - - - - - X

GROUNDNUT - 14.3 16.5 14.2 10.8 9.7 3.8 1.0 - - - - - - - - x

1/ Reference ANNEX 1, Table 8.

-09 -ANNEX 4

BRMRA Table 2dPage 2

TAW IRRIGATION PROJECT

AZINI PILOT ORCHARD SCHEME

PROENLTION BENEFITS AND COSTS

250 AC STATE FARM

(KI 000)

- - -- - - -- - - -- - - -- - - -- - - - -- - - -- - - -- - - ---- - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - -- - -- - - -- - - -- - -- - - - - - - -- - -- - - - - - - -- - -- - - - - - - -- - - -- - -- - - -- - -- -Project Year 1-2 3 4 5 7 0 9 10 11 12 13 14 15 16 17 18 19 20-30 PV-1

DROSS PRODUCTION VALUE

MAIN CROPS 2/

PONLO - - - - - - - - 300 750 1250 1750 2250 2450 2500 2500 2500 2500 2500 7015IHIRIAK - - - - 180 450 750 1050 1350 1470 1500 2603MANGO - - - - - - - - 90 225 375 525 675 735 750 750 750 750 750 2104

SUBTOTAL - - - - - - - - 390 975 1625 2275 3105 3635 4000 4300 4600 4720 4750 1 17 22

INTER-CROPs 2/

PINEAPPLE - - - - 450 522 449 342 308 120 30 - - - - - - - - 1046BANANA - - - - 440 554 507 456 445 170 44 - - - - - - - - 121 1DROONDAMIT - 7 112 96 73 66 26 6 - - - - - - - -247

SUBTOOTAL - - - 97 1002 0172 0029 064 770 304 74 - - - - - - - - 2504

TOTAL DRSS PROD VALUE - - - 97 1002 1172 1029 064 0160 0279 1700 2275 3105 3635 4000 4300 4600 4720 4750 04226

PRODUCTION COSTS

MAIN CROPS 2,'

PDMELO - - - 205 291 270 248 240 253 255 256 256 256 256 256 256 256 256 256 1 63 7IARIAN - - - 200 103 150 138 138 138 138 030 130 149 155 157 157 157 157 157 9800MANGO- - - 163 125 93 73 73 70 80 B 81 81 01 1 01 01 01 81 81 500

SUBTOTAL - - - 647 599 521 459 459 469 473 475 475 486 492 493 493 493 493 493 3196

INTER-CROPS 2 I------------ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~6

PINEAPPLE - - - 232 174 112 67 60 23 0 - - - - - - - - 9 67BANAA- 44 41 33 217 26 10 3 -96 - - -

OROODNUT - - - 13 15 13 10 9 3 I -33 - - -

SUBTOTAL - - - 288 230 157 103 95 37 9 - - - - - - - - - 496

OMIT. ESTAB, COSTS 3/ - 1156 2696 - - - - - - - - - - - - - - - - 27 10ADMIN, IDGEA, EOP 4/ - 20 30 58 80 08 0O 00 1000 300 300 100 100 1010 100 386 100 300 300 300 6 19

TOTAL PRODUCTION COSTS - 1176 2726 906 909 778 662 654 606 502 575 575 506 592 593 593 593 593 593 702 1

NET FARM INKDME - -1176 -2726 -809 93 394 367 210 562 697 11-25 1700 2519 3044 3407 3707 40,07 4127 4157 7 206

I/ Discount rate of 10%.2f/ Reference Annex 4, Table 2d.3/ Reference Annex 2, Tablea 3 and 7.4~/ Includes only the coat of management and other general expenaes. Labor costa are included in production cost of each crop.

-90- ANNEX 4

Table 3

BURMA

TANK IRRIGATION PROJECT

Present Values of Project Incremental Cost Recovery 1/

Kinmundaung Subproject

Cost Recoveries Recovery Rate

Case I Case II Case I Case II Case I Case II---- Kyats M ---- -----Kyats M----

Capital Costs 38.64 38.64 Paddy Procurement 20.47 22.62Recurrent O&M and Cotton Procurement 13.62 21.13

Replacement 2.69 2.69 Land Taxes 0.02 0.02Incremental Input 3.92 5.41 Water Charge 0.12 0.12

Total 45.25 46.74 Total 21.32 32.99 47% 71%

Azin Subproject

Cost Recoveries Recovery RateCase I Case II Case I Case II Case I Case II-----Kyats M---- Kyats M----

Capital Costs 34.73 34.73 Paddy Procurement 25.41 28.90Recurrent O&M and

Replacement 2.40 2.40 Land Taxes 0.01 0.01Incremental Input 4.71 6.01 Water Charge 0.07 0.07

Total 41.84 43.14 Total 15.35 18.93 37% 44%

1/ OCC = 10%.

BURMA

Tank Irrigation Project

Summary of Economic Benefit and Cost Streams and ERRs 1/(K1,000)

Kinmundaung Azin Project Total

WaterProject Irrigation Supply Total Total Net

Year Benefit Cost Benefit Benefit Benefit Cost Benefit Cost Benefit

1 0 31103 0 0 0 36617 0 67720 -67720

2 0 7249 0 0 0 15694 0 22943 -229433 0 6965 0 0 0 11646 0 18611 -186114 0 -98232/ 0 0 0 -9868 2/ 0 -19691 2/ 196915 5345 2600 3493 640 4133 4414 9478 7014 24646 7107 3092 5753 2758 8511 4592 15617 7683 79347 8455 3344 6788 3026 9814 5070 18269 8414 98558 10031 3583 7288 3359 10647 5176 20677 8758 11919

9 11561 3799 7373 3713 11086 4756 22647 8555 1409210 13036 3877 7979 4110 12089 4594 25125 8471 1665411 13453 3938 8581 4422 13003 4518 26456 8456 1800012 13789 5744 9901 4736 14637 6810 28426 12554 15872

13 14144 4053 11665 5050 16715 4438 30859 8490 2236914 14564 4058 13725 5362 19087 4438 33652 8496 25156

15 14607 4058 15122 5676 20798 4370 35405 8428 2697616 14607 4058 16264 5990 22254 4370 36861 8428 28433

17 14607 4058 17111 6302 23413 4370 38020 8428 29591

18 14607 4058 17621 6618 24239 4370 38846 8428 30417

19 14607 4058 17897 7256 25153 4370 39760 8428 3133220 14607 4058 18056 7256 25312 4370 39919 8428 3149121 14607 5805 18128 7256 25384 6705 39991 12510 2748122-29 14607 4058 18128 7256 25384 4370 39991 8428 3156330 14607 5805 18128 7256_ 25384 6705 39991 12510 27481

ERR - 13.6% ERR = 12.1% ERR = 12.8%

1/ Detailed Economic Cash Flow Tables for above are available in Project File, Vol. IX.

2/ Includes residual value of construction equipment.

(D4

-92-

ANNEX 4Table 5

BURMA

Tank Irrigation Project

Switching Values

% of Total P.W.Benefit or

Cost Stream % of Total Switching Values (Z) 1/(10% p.a.) Sown Area (8% p.a.) (10% p.a.) (12% p.a.)

I. KINMUNDAUNG

A. Incremental Benefits

1. Paddy 39 40 -96 -66 -31

2. Cotton 31 20 -99 -69 -33

3. Other Crops 30 20 -101 -69 -32

Total Benefits (in %) 100 100 -33 -23 -11(in KM or ac) (K73.4 M) (5,000 ac)

B. Incremental Costs

1. Non-recurrent Costs(a) Civil Works 24 +226 +125 +48(b) Construction & O&M Equipment 25 +254 +130 +47

(c) Other 14 +450 +247 +94

Subtotal 63 +95 +51 +19

2. Recurrent Costs(a) O&M Equipment Replacement 3 * +926 +438

(b) Agric. Production Cost 34 +110 +75 +35

Subtotal .7 +102 +69 +32

3. Total Costs

(in %) 100 +49 +29 +12(in Klt) (K56.8 '1)

It. AZIN (Agriculture)

A. Incremental Benefits

1. Paddy 59 70 -62 -33 -22. Orchard and Vegetables 41 30 -54 -31 -2

Total Benefits (in %) 100 100 -29 -16 -1

(in K4 or ac) (K67.5 M) (2,850 ac)

B. Incremental Costs

1. Non-recurrent Costs(a) Civil Works 19 +226 +99 +5(b) Construction & O&M Equipment 25 +209 +85 +4(c) Other 13 +429 +186 +10

Subtotal 57 +87 +37 +2

2. Recurrent Costs(a) O&M and Equipment Replacement 2 * +668 +44(b) Agricultural Production Cost 41 +81 +43 +3

Subtotal 43 +76 +40 +3

C. Total Costs

(in %) 100 +41 +19 +1

(in KM) (K56.7 M)

III. AZIN (Sdudon Water Supply)

A. Incremental Benefits(in %) 100 -40 -24 -6(in KM) (K28.2 M)

B. Incremental Costs

1. Mudon W.S. Share of Dam Cost 18 _383 +383 +177 +322. Treatment 18 +368 +175 +33

3. Distribution 30 +227 +107 +204. Other 22 +311 +147 +285. Recurrent Costs 12 +428 +249 +57

C. Total Costs(in %) 100 +65 +32 +6(in KM) (K21.4 M)

1/ Switching Value is the percentage change in the specified stream (Benefit or Cost) that reducesthe net present value of the project to zero at a specified discount rate.

* Estimated benefits decrease by more than 1000%, or estimated cost increase by more than 1000%.

ANNEX 5-91-Table 1

BURMA

TANK IRRIGATION PROJECT

MUDON TOWN WATER SUPPLY

Proforma Income Statements(in K million unless otherwise indicated)

Fiscal Years Ending March 31 1987 1988 1989 1990 1991 1992(starting 1/1/87)

Total Population (Increase of 2.2% per year) 45,265 46,260 47,280 48,320 49,380 50,470Served Population

- by houseconnections 9,050 10,040 11,150 12,370 13,730 15,140- by standposts 24,900 25,450 26,000 26,580 27,160 27,760

Percentage of Total Population Served 75% 77% 79% 81% 83% 85%

Specific Water Production (lcd)- houseconnections 135 140 145 150 155 160- standposts 70 70 70 70 70 70

Unaccounted-for Water (lcd)- houseconnections 30(22%) 33(24%) 33(23%) 33(22%) 33(22%) 33(20%)- standposts 20(29%) 19(27%) 18(26%) 17(24%) 16(23%) 15(21%)

Specific Water Consumption (lcd)- houseconnections 105 107 112 117 122 127- standposts 50 51 52 53 54 55

Total Water Production (Mm )- houseconnections 0.112 0.513 0.590 0.677 0.777 0.884- standposts 0.159 0.650 0.664 0.679 0.694 0.709Total Water Production (annual) 0.271 1.163 1.254 1.356 1.456 1.593

Total Unaccounted-for Water (Mm )- houseconnections 0.025 0.121 0.135 0.149 0.166 0.182- standposts 0.045 0.176 0.171 0.165 0.159 0.152Total Unaccounted-for Watsr (annual) 0.070 0.297 0.306 0.314 0.325 0.334

Total Water Consumption (Mm )- houseconr.ections 0.087 0.392 0.455 0.528 0.611 0.702- standposts 0.114 0.474 0.493 0.514 0.535 0.557Total Water Consumption (annual) 0.201 0.866 0.948 1.042 1.146 1.259

Average Revenues per m (K)- houseconnections 1.36 1.36 1.86 1.06 1.86 ;.d6- standposts 0.59 0.59 0.59 0.59 _0.59 0.59Total 1.17 1.17 1.19 1.23 1.26 1.30

Operating RevenuesWater Revenues from Houseconnections 0.162 0.731 0.846 0.982 1.136 1.306Water Revenues from Standposts 0.067 0.279 0.290 0.303 0.316 0.329Total Operating Revenues 0.229 1.010 1.136 1.285 1.452 1.635

Operating ExpensesOperation, Maintenance and Administration 0.045 0.279 0.296 0.319 0.340 0.371Water Charges to Irrigation Department 1/ 0.009 0.038 0.042 0.046 0.051 0.056Depreciation 0.173 0.693 0.699 0.720 0.730 0.750Total Operating Expenses 0.227 1.010 1.037 1.085 1.121 1.177

Operating Income 0.002 - 0.099 0.200 0.331 0.458

Interest - - - - - -

Profit _0.002 1.010 0.099 0.200 0.331 0.458

Rate of Return on Net Fixed Assets in Operatior. - - 0.3% 0.7% 1.2% 1.6%

1/ Part of operating costs.

-94-ANNEX 5Table 2Page 1 of 3

BURMA

Tank Irrigation Project

Mudon Town Water Supply

Notes and Assumptions on Financial Forecasts

General

1. At present, Mudon Town does not have any public drinking water supply.The proposed project will introduce for the first time piped water in thetown. Consequently, tariffs, revenues and operating costs of the projecthad to be estimated as of price basis FY88 and thereafter. Unless otherwisestated, an escalation factor of 5% p.a. has been assumed in arriving at thefuture price levels.

Revenues

2. The revenues from sales of water are a function of the estimated familyincome in Mudon. At 1982 price levels, family incomes range from K2,500 peryear. Data on the absolute poverty levels in Burma have not been updated since1978; however, it can be reasonably assumed that the absolute poverty line in1982 is not higher than Kl,000 p.a. Consequently, a "life line" tariff hasnot been taken into account.

3. To arrive at the annual revenues, the following assumptions havebeen made (FY88 price level):

(a) Standposts: The payments for water through standposts wouldbe made at a level of 1.7% of the lowest reported familyincome (K3,350 per year. K2,500 per year in 1982 escalatedat 5% p.a. up to FY88. No escalation thereafter).3 Thisassumption would result in a tariff of KO.59 per m (US cents8.2) and an annual family outlay of K56.37 (KlO.25/capita/year); and

(b) House Connections: The tariff for house connections wouldrepresent 4% of the median family income of the upper 50%of the reported income scale in Mudon (K9,400 per year. K7,000per year in FY82 escalated at 5% p.a. up to FY88. No escalationthereafter). This assumption would result in a tariff of K1.86per m (US cents 26) and an annual family outlay of K379.60(K69.00/capita/year).

4. Discounted to FY82 levels the proposed tariffs are as follows:

(a) Standposts: KO.44 per m3 (US cents 6.1). This is equivalentto an annual family outlay of K43.44 (K8.19/capita/year); and

-95-

ANNEX 5Table 2Page 2 of 3

(b) House Connections: K1.50 per m (US cents 21). This is

equivalent to an annual family outlay of K310.80 (K58.60/

capital/year).

Operation, Maintenance and Administration

5. Cost of Personnel. The following assumptions have been made

Annual Salary 1/

One Sub-assistant Engineer K 5,580 2/

One Filter Operator Grade 1 K 4,200 2/

One Filter Operator Grade 2 K 3,120 2/

Two Filter Operators Grade 3 K 4,500 2/Two Helpers K 4,212 2/

Three Pump Operators K 9,360 2/

Two Helper-Operators K 4,500 2/

One Water Tax Collector K 3,126 2/

One Meter Reader/Collector K 3,126 2/

One Helper (Collector) K 2,106 2/

One Accountant K 4,500 2/

One Bookkeeping Clerk K 3,000 2/

One Watchment K 2,106 2/

K53,435

6. Electric Power. It is estimated that 255,500 kWh p.a. will be

required for pumping of the average flow of drinking water plus other very

minor requirements. A tariff of KO.34/kWh has been assumed which represents

about twice the present tariff level.

7. Water Charges to Irrigation Department. At present, these charges

amount to KO.20 per 1,000 Imp. gal. of water produced. This rate has not

changed in a long time and it has, therefore, been assumed that it would

remain unchanged during the forecast period. The payments are for maintenance

work of the Azin dam to be carried out by the Irrigation Department.

1/ Price Basis FY82.2/ In accordance with feasibility study February 1982.3/ Appraisal mission additional estimate.

--96-

ANNEX 5Table 2Page 3 of 3

Depreciation

9. The following depreciation rates have been used:

Dam (portion allocated todrinking water supply) 1.25% p.a.

Investments for DistributionWater Treatment, etc. 2.50% p.a..

BURMATANK IRRIGATION PROJECTProject Construction Organization

Project lorplententarioo Committee

Deputy Monster Ministry of Aorrcirt-re and Fret-, Chairmen

Mem.rnoer

(1) Direc-orOeneral (Planninq and SteeIstics Dapar-menfl

(21 Director General Dlrriga-ion Geperemenel

(32 Manoging Director lAgrirattarel Corporat.on. Intigarion Depermens

(41 Dir--tot General lAgricultural Machanr -Dtioo Gspar-msnt Rangoon

(hI Director General (Lend fenorda and Ser.lerrnt Decar-mantl

(61 Director Gental (General Alfairs Gepar-nenel

(71 D-rtotor General lHooa-ng Depad mennProeo Directr ID El Dealt .c E I

(81 Mna-ingGr D-o0r lCooetroctianCotporee..n) Tank, I A-cunOfficer,

(RI Repaseneetice (Minisry of Planning nd F-cl Design and Constroo 2 Clerks TOpi-e

I(ID Praisce Dire tor Taok Irrigation Pruiene Rando on 3 ehera

Admin, svr0 "Of fi-er O Ad---erigaontuOffcto

H,,a, A-cu-nan H Head A-cunl-n

2 A.Prn A esisnani Drillera.s (_ d ill Fineg oi (E ec IA P I Mcns er (E E I I 2 Asn e dl en& A Mechanics p

1t C o ft Ce k I onmend Eung ginee 1 H&C, DoloG

3Clerks/T Pst 3 Cl,,,kIrfyp.-t

S ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ OaiporoOlcrfE 6ter MiSOtitr _______________

l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Spotn Stl hyiorn Opraio

.f'Design U Grol1gy UWork CuperyiUorUIDAPI Mechanical Eg ne A Guppocg D ealt 12 Wr Gkproor iSA( Mecha Engil UM PI

Chie0 D-sgn Eng,n-e (A E E I 2 G..ogss (A.E G ) Ch,ed Consr---i Eng-.,e M--.-nnc Worksop Ch,,f D-sgn En,n,-e (A F E) 2 G-1.osnn, (A E G I Ch..f C-ns1-c1- Eng-,,e (A E E I M-1--r.nc W.rklh.p

D.. DesI.e- (A E I 4 Ass;I-tn elos (S A E G I (A,EL I M.ch- ... I Enq,n-y (A M E I Dam D-s9-e (A E I 4 A_sstn -eoI.' - (S A F G I F,,ld Eng,r- - Dams (A E I M-hr.hncl Erg-., (A M E I

SlrucoureD-spgn (A E I 3D, DrI... (Gd I) F,.ld Engin-el Dam2 (A E o i D4 Mu rhonr7 o E uigpma_ 3 Drpll-t e (Getri I) Jr E e I0 ne erreg Gu:tosors RA IE0 Rea,s, upe

sista Drmn (A2 I Assistant- I (Gd I) Engineer i 0cl (A rhons I & D Syrfse D20Asnis (A E n 3 A--nl (G 11) FEnd E gnineer I & D (A Eu ) |8 Mhr--0 HIp-or

Oua fyCnrIDficer (A E )I 2 G-I-er Fd Enge I I & D (A E ) 8 G,--os W S Des,gn- (A E ) Grotl FnIld E.g,n-e T W S (A E ) |8 G-...rs|

2 M-,e Op-er,tr O-allty C-ntrol Off-,e (A E I 6 M,e Prvr

Sup00""n" S`ff Supp.rt,ng SIasf Eq.ip-e OP-rT " I S. .oetng SIaff E-up-en, 0-al-f12 Jr Engier.- IS A E I 10 Wqrk S.p-,-,or (S A F I M,,ch.ni,al Eng,n... (A M E.) SuPp.or1mg Slaff 12 Wo.rk S.P.1--or (S.A.E.) E Mehaic , n-i7 (A M E I

6 rf"se 2E 9--nerng Sreos 70 Heavy Eq,,,p-an Op-raq- )5Jr Engin.arn "S A Er ) 20 E,,n -,ein S_r yors 100 H-av E-upmnn prao

6 Assjstant Drattsmen ~~~~~~~~~20 Ass,-tn, Engmeerlng 20 rv1 s D:h,.,smen 20 A,.,,n 'Engm ,elnq S.-vy-r 30 Driver:

12 Tracers Sur-ey-s 20D Others 0 Aareranr Draftsmen 2P Gu,rep Aides (W S) 20 Others

6 Qu lltnsp--or (S A E I 20 S,,-,y A,d., 12 T""er 10 O'h_r

f 0 b Othr -i 10 O,h-r 6 ab Tech--,an (S A EI

101 Other

World Penk 23640

reDo

BURMATANK IRRIGATION PROJECT

IRRIGATION DEPARTMENT ORGANIZATIONIP,oject 0 & M Organization)

Dilector Genala ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ i-

~~~~~~~~~~~~~~~~~~~~~~~A p ; ...<L;X

lin- *- i11 ri 11 Makiaitiz MynenizzligaineaxexRagol g19 Tl.1u-. U. m .Molnbn Hnaa Mrn

-..pE,gi. i, A,lim-A <sTl T o& hIi

.~~~~~~~~~~~~~~~~~~~n (' i . ... I' . == -

..- o" ... I I IiOotgoOo 0000000 00,0000 LOot, Bottl Mejktda tOl t3OO O A,, 0

| ,oobqer 6 i t i 0;ot- 160 | oeMooo,o |*00- OOettOt A00,0 D ManOnac;W | Lao

0 - 23041

BURMATANK IRRIGATION PROJECT

Organization Structure for Extension, Project Monitoring and Evaluation

Agricu l rrMaging DM atgr|Agr-clt.re Corporation, R..q..n

V.llagn Iraur Managers l 31n.p,, |nr f s 2 V g Tc M a gA Ap.ld Reasarch Ma agme-t and E.teso and Mvlsrbumin G arips tnn )

L- _ _ __ _ - - - - - - - ---- -J

Maae Dlec-r Ma O p tar |t S4tl M a Head Statn Manag Maae

Manag~~~~~~~~~~~~~~~~~~~~~~~~~~~~ter Supuroet Sxtaffi I_ _f Sablt H eead__ rlch Ferrer!o Ma_ onagep

Research Farm! Matte Matter Trainin Cente Research Farm!

TrainingAslsan Centerl Specialist Ssecalnt ranig ene

121 . 141(Padyond hea(Ochad Caps

p U nq H-d p~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ildCutDpyM ager I -1-StatejFarm Deputy Manager 2 11 D M I TVl IT Managers I 2l1naq., V Ta Manger I 12 Village tra Mcn (geageM I d1

Village Managersag Maagr 421 Deputy Managers I(19VlaeMngrs)4 ilg ManagersI6Mngr _ uec __Other Suppuart Staff (14Vlag rc angr 1 Other Support Staff 120 4)ter Suppart _t_t 115tc1ar/Maae

r sInill r.rntel eimc a s1 Marver (Padd,y.nd.ung) and _T r-t ong net' (A-

RaV Maagre

Village~ ~~~~~~~~~~~~~~Awn T-ract A-m.ayer (T)V.l. TatMaaes )shl lrc Mngrs (3

Vlilage~~~~~~~~~~~~~~~~~" ' 2aagr Man... Mngr 2 llq angl ) llq alaes(6Othel~ ~ ~ ~ ~~ ~ ~~~~~~~~~~~M~ Supr Tr-ft M(20) 3llg JTract Offiqe- (2 3) Othe 41pr tf (0 te tSaf (5

-ger ,,,t fl:'g: M.nage,s (21 ~~~~~~~~~~V,I:ag'e Manag-r 9( 6)ltM.. M g,

Other Support Staffs (18)

8 ,cz

BURMATANK IRRIGATION PROJECT

ORGANIZATION OF URBAN WATER SUPPLY AND SANITATION

Ministry of Home and Ministry of Agricultuire and Forests Ministy o nstruX

General Affairs Department (GAD) ~~~~~~~~~~~~~~~~~~Housing Department (HD) Constructio_n Corporation (CC)General Affairs Department (GAD) Irrigation Department (ID) Urhan Water Supply and Water and Sanitation

- Coordination and General _Support in Administrative Coordination and General anitation Division (UWSSD) Division (WSD)

and Financial Affairs for Support in AdmniristrativeOperation and Financial Affairs during

- Policy Development Construction Period Project Implementation CommitteOl

Township Develop ment Committees | - Planning and Studies - Detailed Designi_. I _ - Engineering Design - Construction

MUDON Supervision Training of OperatorsTownship Development Committee (TDC) - Monitoring and Artisans

Operation and Maintenance

Existing Key Stuff Proposed New Staff(for Water Supply Operations) r'td

Executive Office I Filter Plant Operators 4Sub-Assistant Engineer 1 Pump Operators 3

- Township Accountanit 1 - Installation and Maintenance-- Township Health Officer I Technicians 4

Water Tax Collectors 2

aI See Annex 6, Chart 1World Bank-23859

-101-ANNEX 7Page 1 of 2

BURMA

TANK IRRIGATION PROJECT

Selected Documents and Data in the Project File

I. REPORTS

1.01 FAO/World Bank Cooperative Program: "Burma, Tank Irrigation Project,Supplement to Irrigation Department Reports on Kinmundaung andAzin Subprojects"', August 1981.

1.02 Irrigation Department, "Report on the Feasibility Study of theKinmundaung Reservoir Project, Vol. I (Main Text) and Vol. II(Drawings)", November 1981.

1.03 Irrigation Department, "Revised Flood Design of Kinmundaung",February 1982.

1.04 Irrigation Department, "The Kinmundaung Dam Project, Agro-EconomicData", November 1981.

1.05 Irrigation Department, "Hydrology Report on Kinmundaung Dam Project",March 1981.

1.06 Irrigation Department, "Geology Report on Kinmundaung Dam Project",March 1981.

1.07 Irrigation Department, "Feasibility Report on The Azin Dam Irriga-tion Project", November 1981.

1.08 Irrigation Department, "Azin Dam Project, Feasibility Report(Geology)", November 1981.

1.09 Irrigation Department, "Report on Soils and Land Classification ofthe Azin Dam Project (for orchard land)", December 1981.

1.10 Agricultural Corporation, "Marketing and Storage Study for OrchardCrops (The Azin Dam Project)", April 1982.

1.11 Housing Department, "Feasibility Report on Mudon Town Water Supply",March 1982.

1.12 Irrigation Department, "Domestic Water Supply Project (Mon State)",January 1981.

1.13 Irrigation Department, "Reports on the Proposed Tank IrrigationProjects", March 1979.

1.14 Irrigation Department, "Report on Rehabilitation of ProposedIrrigation Projects in the Union of Burma", March 1979.

-102-

ANNEX 7Page 2 of 2

II. Data Compiled by the Appraisal Mission

Vols. I and II - Detailed Engineering Support Data

Vol. III - Design Flood Analyses

Vols. IV and V - Detailed Agricultural Support Data

Vol. VI - Economic Capital Costs

Vol. VII - Price Calculations

Vol. VIII - Cost Recovery Calculations

Vol. IX - Farm Budgets

Vol. X - ERR Calculations

Vol. XI - Support Data for Mudon Water Supply

IBRD 16262To Thrr-oderiPi 90°36 95o40, 95044. APRIL 1982

90 30 BURMA IND A/CHINA

20000 TANK IRRIGATION PROJECT 20000 (

KINMUNDAUNG SUBPROJECT tBAN6 ,;-^ Nyauoigbinhl4

BA8CiAbE0H RURMA

Nyaut gbinla ,Proposed Irrigable Area S P

Marn Canals ,, Prefect ... ,

____Secondary Cana s Ae

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____ Existing Roads

. > ..... - Roads for Rehabilitation

_ 1 t\--N New Roads .

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IBRD 16263

9703E BURMA97 -40' 97°42' To Mo-/i-n 97044. MARCH 1982

BURMA ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~INDIA _ CHINA

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EI\ -' ^PROPOSED IRRIGABLE AREA -UPLAND(ORCHARDSI)

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I~L I( ELEVATED SERVICE RESERVOIR97'43' .jr-~:-:: FUTURE RESIDENTIAL AREAS

I - ~~~~~~~~~~~~~~~~~~RESIDENTIAL AREA BOUNDARIESINDIA ~CHINA 1 ADY IEDSWARD NUMBERS

INDIA PADDY FIELDS -7, y ~~~~~~~~~~~~~~~~ /93 POPULATION

-- .,-. - - ~~~~~~ROADSr ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~~~~RAILWAYSBA. O 113 E SH

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