IMPERIAL ETHIOPIAN GOVERNM^1
AWASH VALLEY AUTHORHY ADDIS ABABA
MELKA SADI-AMIBARA PROPOSED
IRRIGATION PROJECT
FEASIBILITY STUDY
PART in
OUTLINE OE THE
project
A IV A M <6
"I
11  MH ONS( I T
Rome JulyIMPERIAL ETHIOPIAN GOVERNMENT
AWASH VALLEY AtTHORTIY ADDIS ABABA
MELKA SADI-AMIBARA PROPOSED IRRIGATION PROJECT
FEASIBILITY STUDY
CONTENTS
PART I - GENERAL REPORT
PART II - STUDIES AND SURVEYS
VOL. I - HYDROLOGY AND CLIMATOLOGY VOL 2 - SOIL SCIENCE
VOL J • GEOLOGY AND HYDROLOGY
VOL. 4 - IRRIGATION ENGINEERING
VOL. 5 - AGRICULTURE AND LIVESTOCK
VOL. 6 - ECONOMIC AND FINANCIAL ASPECTS VOL 7 - SOCIOLOGICAL AND HEALTH ASPECTS
part | | |
OUTL|Nt or THE P
ROJF(..r
PART III- OUTLINE OF THE PROJECT
" '" OS'S, , ,
J“iy w.9CONTENTS
Page
I. INTRODUCTION 1
4.3.1
4. 3.2
4. 3. 3
4. 3.4
General
Field Drains
Unit Drains
District Drains
2.          GENERAL DESCRIPTION
2.1       THE PROJECT AREA
2.2       IRRIGATION AND DRAINAGE NETWORK
2.3       URBANISTIC LAYOUT
7
7
8
11
4.4         ROAD  NETWORK
COSTS
5. 1        MAIN  WORKS AND MINOR NETWORKS 5.1.1          General
Page
26
26
26
27
28
29
29
29
3. MAIN WORKS                                                                                                                            14
5.1.2          Main Works                                                                                         30
3. 1       genera l
3.2 DIVERSION WEIRS
14
14
3,2.1  Melka Sadi Diversion Weir 14
3.2.2  Melka Warar Diversion Weir 16
3. 3       MAIN CANALS
3. 3. 1          Melka Sadi Main Canal 3.3.2           Amibara Main Canal
3.4       MAIN DRAINS
3. 5       MAIN AND SERVICE ROADS
3.6       FLOOD PROTECTION DYKES 3. 6. 1          Western Dyke
3,6.2            Eastern Dyke
17
17
18
IH
19
21
21
22
5.1.3          Minor Networks
5.2         FARM   INVESTMENTS
5.2. 1          General
5.2.2          Land Reclamation Works
5.2.3          Land Settlement Works
5.2.4         Agricultural Development Investment 5.2.5          Processing Plants
5.3 COMPENSATION
30
35
35
35
41
43
43
44
6. THE SETTLEMENT SCHEME                                                                                                  48
6.1        INTRODUCTION
6.2        GENERAL CRITERIA
6. 3       SOCIAL ORGANIZATION AND PRODUCTION 6.3.1          Criteria for Selection
48
48
50
50
4.          MINOR NETWORKS                                                                                                       23
4. 1       general                                                                                                          23
4.2       IRRIGATION NETWORKS                                                                               23
4.2.1            General                                                                                              23
4.2.2            District Canals                                                                                   24
4.2.3            Unit Canals                                                                                       25
6.3.2         Organization of the Cooperative                                                       51
6. 3. 3         Assignment of House and Holding 6.3.4         Cultural Operations
53
53
6.3.5         Other Responsibilities of the Settlers                                                54
4.2.4            Field Canals 4. 3       DRAINAGE NETWORK
25
26
6. 3.6         Health Service and Insurance
6. 3. 7         Legal Status and Remuneration
6. 3. 8         Credit Policy
6.3.9          Contacts with Public Authority
6.4        ANALYSIS OF THE ORGANIZATION FRAME 6.4. 1         Selection Phase
6.4.2          Experimental Phase
6.4. 3         Assisted Management Phase
55
56
57
58
59
59
64
65Page
66
Page
6.4.4            Self-Management Phase
6.4.5  Forecast for Non-technical Personnel
9.           ALLIED WORKS AND ACTIVITIES
141
Requirements                                                                                     66
9.1        GENERAL                                                                                                            141
6.5               SETTLEMENT VILLAGES
69
9.2        HEALTH ORGANIZATION
142
6.5.1 
General Design Criteria 
69
6.5.2 
The Typical Village
70
9.     3 ELECTRICAL ENERGY
9.4  BUDGETARY CONSIDERATIONS
146
149
6.5.3 
Public Utilities
72
6.5.4 
Estimate of Cost
74
7.        IMPLEMENTATION AND RUNNING                 OF THE PROJECT                        77
TABLES
7.1        INTRODUCTION
77
7.2        FINAL SURVEYS AND         DESIGN                                                              77
7. 
3 
IMPLEMENTATION OF THE PROJECT
7.3.1            General
78
78
7.3.2            Construction of Works                                                                    79
7.3.3            Implementation of Cultivation
81
7.3.4            Timing of Project Implementation                                                 82
7.4     ORGANIZATION AND           MANAGEMENT 7.4.1            Introduction
84
84
7.4.2            Operation of the Network                                                                85
7.4.3            Maintenance of the Networks
86
7.4.4            Awash Valley Authority Management                                           87
7.4.5            Settlement Management
91
7.4.6            Management of Commercial Farms                                              92
8.     ECONOMIC AND FINANCIAL EVALUATION
94
8.1        INTRODUCTION                                                                                               94
8.2        ECONOMIC EVALUATION 8.3        FINANCIAL ASPECTS
94
105
I    - PRESENT LAND USE IN THE PROJECT AREA
2  - FARM SUBDIVISION ACCORDING TO THE LAND CLASSIFICATION
3    - MAIN WORKS ESTIMATE
4    - SETTLEMENT ZONE ESTIMATE
5   - MAIN WORKS AND MINOR NETWORKS - TOTAL INVESTMENT
6   - MAIN WORKS AND SETTLEMENT ZONE INVESTMENT COSTS
7   - MAIN WORKS AND SETTLEMENT ZONE INVESTMENTS
8   - EXTENT OF THE VARIOUS TYPES OF PLANT COVER IN THE PROJECT AREA AND RELATIVE COSTS OF CLEARANCE
9   - GROSS AND NET AREAS OF THE VARIOUS GROUPS OF SLOPES AND RESPECTIVE COSTS OF LEVELING
10   - FORECAST PERSONNEL FOR THE SETTLEMENT AREA
8.3.1 
Introduction
105
11 
8.3.2 
Accounts for a Commercial Farm
106
- SETTLEMENT SCHEME TIME PHASING AND COST OF REQUIRED PERSONNEL
8.3.3 
Accounts for the Settlement Scheme
121
8. 
3.4 The Financial Position of the AVA Branch in the Project Area 
12 
- MAINTENANCE COSTS
128
13 
- COSTS AND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS - CROPPING PATTERN "A"14    - COSTS AND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS - CROPPING PATTERN "B"
15   - COSTS AND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS - CROPPING PATTERN "C"
16    - COSTSAND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS AND BY SETTLEMENT SCHEME - CROPPING PATTERN "A"
17   - COSTS AND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS AND BY SETTLEMENT SCHEME - CROPPING PATTERN "B”
18    - COSTSAND BENEFITS DEVELOPMENT BY COMMERCIAL FARMS AND BY SETTLEMENT SCHEME - CROPPING PATTERN "C”
19    - COMMERCIAL FARM OF 1, 000 HA (NET CROPPED AREA) - IN COME STATEMENT: CROPPING PATTERN "C”
20    - COMMERCIAL FARM OF 1, 000 HA (NET CROPPED AREA) - GROSS SALEABLE OUTPUT - CROPPING PATTERN "C"
21    - MONTHLY FLOW OF FUNDS: FARM AND GENERAL EXPENDI TURES. GROSS SALEABLE OUTPUT, FIRST 10 YEARS - COM MERCIAL FARMS OF 600 HA (NET CROPPED AREA) - CROPPING PATTERN "C”
22    - MONTHLY FLOW OF FUNDS: FARM AND GENERAL EXPENDI TURES, GROSS SALEABLE OUTPUT, FROM 11th YEAR - COM MERCIAL FARM OF 600 HA (NET CROPPED AREA) - CROPPING PATTERN"A"
23    - MONTHLY FLOW OF FUNDS: FARM AND GENERAL EXPENDI TURES, GROSS SALEABLE OUTPUT, FIRST 10 YEARS - COM MERCIAL FARM OF 600 HA (NET CROPPED AREA) - CROPPING PATTERN "A"
24    - MONTHLY FLOW OF FUNDS: FARM AND GENERAL EXPENDI TURES, GROSS SALEABLE OUTPUT - COMMERCIAL FARM OF 600 HA AND 1, 000 HA - CROPPING PATTERN "C" - CURRENT FARM EXPENSES AND GROSS REVENUE
25    - INVESTMENT AND RENEWALS: COMMERCIAL FARM OF I, 000 HA (NET CROPPED AREA) - CROPPING PATTERN "C"
26    - COMMERCIAL FARMS OF 1, 000 HA (NET CROPPED AREA) - SCHEDULE OF MEDIUM AND LONG TERM BORROWING AND OF DEBT SERVICE CHARGES
27    - COMMERCIAL FARM OF I, 000 HA (NET CROPPED AREA) -
TAXES AND TAXABLE INCOME
28    - COMMERCIAL FARM OF 1, 000 HA (NET CROPPED AREA) - SOURCES AND APPLICATION OF FUNDS: CROPPING PATTERN
”C”
29    - COMMERCIAL FARMS: WATER RATE DETERMINATION
30   - SETTLEMENT SCHEME - INCOME STATEMENT
31    - SETTLEMENT SCHEME - INVESTMENTS
32   - SETTLEMENT SCHEME: INVESTMENT COSTS IN MACHINERY
AND IMPLEMENTS
33    - SOURCES AND SETTLEMENT SCHEME: APPLICATION OF FUNDS
34    - AVA BRANCH - INCOME STATEMENT: COMMERCIAL FARMS
AND SETTLEMENT SCHEME
35   - AVA BRANCH - COMMERCIAL FARMS AND SETTI^EMENT SCHEME DEVELOPMENT - INVESTMENT SCHEDULE
36   - AVA BRANCH - COMMERCIAL FARMSAND SETTLEMENT SCHEME DEVELOPMENT - GROSS REVENUES
37   - AVA BRANCH - SOURCES AND APPLICATION OF FUNDS: COM MERCIAL FARMS AND SETTLEMENT SCHEME DEVELOPMENT
38   - AVA BRANCH - INCOME STATEMENT: COMMERCIAL FARMS AND DEVELOPMENT
39    - AVA BRANCH - COMMERCIAL FARMS DEVELOPMENT - GROSS REVENUES
40    - AVA BRANCH - SOURCES AND APPLICATION OF FUNDS - COM MERCIAL FARMSFIGURES
1■
URBAN 1ST 1C LAYOUT
2 -      IRRIGATION DRAINAGE AND ROAD NETWORK
3 -      FARM SUBDIVISION
4 -      MELKA SADI DIVERSION WEIR - GENERAL LAYOUT
5 -      MELKA SADI DIVERSION WEIR - PLAN
6 -      MELKA SADI DIVERSION WEIR - SECTIONS
7 -      MELKA WARAR DIVERSION WEIR - GENERAL LAYOUT
8 -      MELKA WARAR DIVERSION WEIR - PLAN
9 ■     MELKA WARAR DIVERSION WEIR - SECTIONS
10 ■ - MELKA SADI MAIN CANAL - LONGITUDINAL PROFILE AND TYPICAL CROSS SECTIONS
11    - AM1BARA MAIN CANAL - LONGITUDINAL PROFILE AND TYP ICAL CROSS SECTIONS
12   - AMIBARA MAIN CANAL - MEASURING FLUME
13   - MAIN CANALS - WEIR TYPE 34 M
14   - MAIN CANALS - WEIR TYPE 16 M
15   - MAIN CANALS - SYPHON OUTLET 2x1,000
16   - DISTRICT ROADS - BRIDGE (6.00 m CARRIAGEWAY)
17   - MAIN ROADS - BRIDGE (7.00 m CARRIAGEWAY)
18   - MAIN DRAIN No. 1 - LONGITUDINAL PROFILE 19 - MAIN DRAIN No. 1.2 - LONGITUDINAL PROFILE
20     - MAIN DRAIN No. 2.3. 4. 5 - LONGITUDINAL PROFILE
21    - MAIN DRAINS - BED DROP
22    - FLOOD PROTECTION DYKES - MAIN AND SERVICE ROADS - TYPICAL CROSS SECTIONS
23    - WESTERN DYKE - LONGITUDINAL PROFILE
24    - WESTERN AND EASTERN DYKE - LONGITUDINAL PROFILE
25    - IRRIGATION UNIT AND MINOR NETWORKS - TYPICAL ARRANGE MENT A
26    - IRRIGATION UNIT AND MINOR NETWORKS - TYPICAL ARRANGE MENT B
27    - MELKA SADI SUBAREA - DISTRICT CANALS - SCHEME
28    - MELKA SADI SUBAREA - DISTRICT CANALS Nos. 1.2.3 - LONGI TUDINAL PROFILE
29    - MELKA SADI SUBAREA - DISTRICT CANALS Nos. 4. 5. 6. 7 - LONGITUDINAL PROFILE
30   - DISTRICT CANALS - INTAKE
31    - DISTRICT CANALS - WEIR TYPE 6D
32   - DISTRICT CANALS - WEIR TYPE 2DT AND 2D
33   - DISTRICT CANALS - SYPHON OUT LET I x 350
34   - DISTRICT CANALS - CULVERTS
35   - UNIT CANALS - INTAKE
36    - UNIT CANALS - CULVERT - OUTLET
37   - FIELD CANALS - INTAKE AND FIELD DRAINS OUTLET
38     - UNIT DRAINS - CULVERT - OUTLET39    - MELKA SADI SUBAREA - DISTRICT DRAINS - SCHEME
40    - MELKA SADI SUBAREA - DISTRICT DRAINS A.B.C. - LONGI TUDINAL PROFILE
41    - MELKA SADI SUBAREA - DISTRICT DRAINS D. E. F. G. H - LONGI TUDINAL PROFILE
42    - DISTRICT DRAINS - CULVERTS
43    - LAYOUT OF INSTRUCTION FARM VILLAGE
44    - LAYOUT OF 1 fit GRADE COOPERATIVE VILLAGE
45    - TYPICAL SETTLER'S HOUSE PLAN
46    - PARTIAL VIEW OF TYPICAL SETTLER’S HOUSES
A - SETTLEMENT SCHEME
B - IMPLEMENTATION OF THE PROJECT - TENTATIVE TIME SCHEDULE
C - AVA BRANCH - ORGANIZATION CHART
MAPS
1   - NETWORKS LAYOUT - MELKA SADI SUBAREA 2   - NETWORKS LAYOUT - AMIBARA SUBAREA- 2 -
1. INTRODUCTION
Part III contains the technical,  economic and financial outline of the Melka  Sadi- Amibara  Project.  The basic data  on which thia  has been formulated derive from two sources:
The Client's directives
The investigations and elaborations made by the Consultant and which form the subject of Part II of this Report.
The principal points which have led to the actual features of the Project are summarized below.
Extent. The area indicated in the contract was approximately 20, 000 ha. The southern boundary, Melka Sadi Gorge, and the northern boundary, Unda Bilen Swamp, were fairly well defined. The western and eastern boundaries, however, were only approximately defined by the Awash River and by the scarp leading to the Alledeghi Plains. In drawing up the soil survey, an area was defined limited to the south and to the north by the aforementioned boundaries, to the west by the Awash River and to the east by a contour line a few meters higher than the con tour line which, prima facie, appeared to be topographically suitable for gravity irrigation. The latter boundary was later verified and confirmed, when it became clear that water rather than land being the limiting factor, pumping water to irri gate higher lands was unnecessary.
The area covered by the soil survey was thus about 28, 500 ha. The Irrigation Area Boundaries were further defined on the basis of:
Quality of the lands;
The need to protect the area against Awash floods.
The definition of the eastern limit of the Area gave rise to a further problem. On the-eastern side, there were some lands that could be classified as Glass 3 lands, which were technically irrigable but which required ad hoc adjustments in the system of water conveyance. The selection criterion adopted was that
of including only those areas which would require an investment cost such as not to alter appreciably the level of profitability of the Project as a whole. In any case, it was later found that it would not have been possible to extend the Irrigation Area to such land since insufficient water would have been available.
Also in the western part some arable land had to be excluded because:
- a 100-meter strip had to be left uncultivated along the Awash in compliance
with Ethiopian conservation laws;
a    sufficient    high-flow    river    bed    had    to    be    ensured    to    avoid    the    floods    of    the Awash and its tributaries from endangering the Area.
The flood protection works should have been designed taking into account the risks - and the possible loss - to which the Project Area would be subjected. However, flood records are not sufficiently long to be fully reliable, even though flood calculations could have been extrapolated from existing data. Thus, flood protection works have been included as part of the Project. Their size is, in the judgment of the Consultants, large enough to ward off the danger of a flood whose occurrence probability is as long or longer than the assumed life of the Project.
Thus, the Project Areas are as follows:
Geographical area:
Gross area:
Net area:
17,770 ha
16,899 ha
13,809 ha
Farm Subdivision. Contract requirements were as follows: of the 20, 000 ha
5, 000 had to be reserved for a Settlement Scheme in which to place part of the Afar population at present living in the Area, and Highlanders. The remaining
15, 000 ha were to be used for commercial farms. The Consultant carried out calculations (see Part H, Vol. 6) based mainly on economic criteria, to deter
mine the optimal size of the Commercial Farms. The minimum feasible size turned out to be 400 ha and the cptimum one about 1, 000 ha. Taking account of the actual layout of the irrigation and drainage network, of the other infrastructures and of the applications for concessions already received by AVA, the following subdi vision of the Area has been made (see Maps 1 and 2).
Farm
Name
Geographical Area
(ha) .
Gross Area
(ha)
1
-
3, 865
3, 817
2
-
1,645
1. 603
3
Research Institute
710
617
4
Settlement Scheme
5, 020
4, 775- 3 -
- 4 -
Farm
Name
Geographical Area
(ha)
Gross Area
(ha)
The availability  of water has imposed the solution to  two  important aspects of the
Project:
5
-
1, 000
958
6
-
1, 315
1,249
7
-
900
880
8
1, 110
The type of river water diversion;
Daily time of irrigation.
Regarding the type of diversion, there were two alternatives:
-
I, 090
9
-
1,930
1,910
a)      Gravity diversion to irrigate the whole area with an organic network.
10
Future Township
275
-
b)      Diversion by pumping effected by each individual concessionaire.
Total
17,770
16,889
The Project Area emerged as smaller than indicated in the Contract. Neverthe less it was preferred to leave the 5, 000 ha indicated by the Client for the Settle ment Scheme, and to introduce in the following chapters dealing with the economic and financial aspects,the alternative assumption that the whole irrigable area would be occupied by the Commercial Farms. In this way, should the competent Au thorities wish to revise the area to be allocated to the Settlement Scheme, they have a whole range from 0 to 5, 000 ha at their disposal.
Water. The availability of water in the Awash today, and foreseeable variations in the future, have been carefully examined. The flow pattern of the river at the diversion sections touching the Project is commanded by:
- Discharges from the Koka Dam, manipulated by EEL.PA
Diversions for the Irrigation Areas between the Koka Dam and the Project Area.
As shown by the elaborations contained in Part II, Vol, 1, Chapter 3, enough water to irrigate Melka Sadi-Armbara can be obtained provided:
- EELPA undertakes in future to follow discharge patterns from Koka similar to those followed since 1962. This does not impose any noteworthy sacrifices.
Concessionaries between Koka and the Project Area maintain the present cropping patterns and expand the Area within the limits provided for in the 3rd Five-Year Plan. In any case water shall be diverted under AVA's strict supervision.
The latter solution, while more costly, offered the attraction of considerable elasticity both in time of execution and in modes of operation. It was however, rejected considering that at certain periods all the river water would have had to be diverted, in this case the concessionaries, especially those further down stream, would have had to construct barrage works on the river not dissimilar in size to those required for gravity diversion.
With regard to the daily time of irrigation, if the water available in the river had exceeded requirements, irrigating for less than 24 hours a day would have involv ed only higher conveyance capacities of the irrigation network. In the case under examination, however, at certain periods it is necessary to divert the whole of the river's flowing water. Limiting irrigation to under 24 hours therefore means having to provide storage. In view of the topography of the Area, such storage would have been quite costly. This consideration was decisive inXhe choice of the daily time of irrigation (see Part II, Vol. 4, Chapter 1).
Cropping Pattern. In Part II, Vol, 5, the possible cropping patterns for the Com mercial Farms and for the Settlement Scheme are defined. These have been se lected on the basis of:
Agronomic investigations
Soil investigations
Cultivation costs
Market studies
Labor requirements
Water requirements- 5 -
- 6 -
For the Commercial Farms, 3 Cropping Patterns emerged:
A Cotton based
B Tobacco based
C Based on both tobacco and cotton.
For the Settlement Scheme, 2 Patterns emerged:
A        Tobacco        based
B Cotton based.
For the Commercial Farms.  Cropping  Pattern B turned out to  be the most ad vantageous.  For the Settlement Scheme,  on the other hand,  considerations as to labor requirements led to selecting the cotton-based cropping pattern.
It should be noted that throughout this study efforts have been made to maintain a prudent line. Therefore, in both the technical and the economic part, when ever possible, a degree of flexibility has been maintained. In this way it is hop
ed that even if the implementation of the Project differs from the optimal solu tions indicated, the essential conclusions contained in this study will neverthe less retain their validity. Thus, for instance, in calculating whether there was sufficient water to irrigate Melka Sadi-Amibara, the values of the water require ments of all the alternative cropping patterns studied were considered, and not just the values of the water requirements of the cropping pattern selected.
Equally, when assessing the financial aspects of the Project, it has been prefer red to consider Cropping Pattern C for the Commercial Farms, instead of the more profitable Pattern B. Having fixed the guidelines described above, it was then possible to sketch the technical and economic aspects of the Melka Sadi- Amibara Project. These are set forth below.
First, a general description of the future set-up of the Area is given; the works which will be handled by AVA are then detailed (diversion weirs, main canals, main drains, and main roads), followed by an outline of the minor irrigation, drainage and road works to be dealt with by the Commercial Farms (or by AVA. in the case of the Settlement Scheme); the on-farm investments which include land reclamation works, land settlement works and investments for agricultural
development will also be the responsibility of the Commercial Farms (or/AVA
again in the case of the Settlement Scheme).
Investment requirements are given in detail. These also include the cost
of making available a grazing zone for the Afars who presently use the
Project Area.
The Report then goes on to discuss the way the Settlement Scheme will be organiz
ed and operated. Regarding the organization and management of the Project as a
whole, the responsibilities of AVA, the Settlement Scheme, and the Commercial
Farms are dealt with separately.
This     leads     up     to     the     economic     and     financial     valuations.     Two     cases     are     consider ed where the economic valuations are concerned:
a)      that the whole of the area will be developed as Commercial Farms, and
b)      that 5, 000 ha will be assigned to the Settlement Scheme and the remainder to Commercial Farms.
Part HI closes with an indication as to the allied measures required to com plete the development of the Area (health organizations, electric power supplies,
etc. ).- 7 -
- 8 -
.2. GENERAL DESCRIPTION
2. 1 THE PROJECT AREA
The Project Area  lies in the mid valley  of the Awash,  on the right bank of the river and some 40  km downstream of Awash Station.  Its Limiting coordinates are:
Class
III
IV
VI
Area
4, 542
411
226
Percentage
25. 6
2. 3
1. 3
1.0
100. 0
Latitude
9°      12’      0"          -            9°       30'       10"       North
Longitude             40°        05’    40"          -         40°        18'       00"      East
The average elevation is 735 m a. s. 1.
The    dimensions    and    the    boundaries    are    fixed    by    the    technical    and    econom ic dimensions of the irrigation network (see Maps I and 2 and.Figs. 1 and 2).
The eastern border is the Melka Sadi Main Canal and Main Drain No. 1. while the greater part of the western border is marked by the Western Dyke. The areas arc as follows:
ha
Rock                                                        173
17,770
Present Land-Use is shown in Table 1, while the Farm Subdivision of the Project Area according to the Land Classification is given in Table 2.(see also Fig. 3).
Some    2,    700    ha    between    the   Western    Dyke   and   the   Awash   could   be   for ested (see Part II, Vol. 5).
2. 2 IRRIGATION AND DRAINAGE NETWORK
D  Th ivee wrs at ioner We  reqirusi, on red fe at or i trhrei Mgateionlka S wiadll bi Ge torakgeen an frdom on teh at e A twheas Mh belky ta wo
Geographic Area
Deduction
17,770
871
173
358
340
16. 899
3, 090
13,809
Warar Gorge.
The diverted waters will be conveyed into the Area by two Main Canals
which will irrigate the Melka Sadi and Amibara subareas respectively. Water
(a)      Rock
(b)      Topographic
will be distributed through District, Unit and Field Canals.
The Drainage Network must collect excess rainfall and irrigation waters
(c)      Villages
and convey these outside the Project Area. It must also ensure water
Gross Area
Area occupied by works
Net Area
table control. The network consists of Field, Unit, District and Main
Drains, in ascending order of importance.
Main   Drain   No.   1   will   convey   the   waters   toward   the   Cadda 
Bilen
swamplying
to lhe north of Angelelc Plain.
The Land Classification breakdown is:
Class
I
U
A rea
931
1,487
Percentage
5. 2
64. 6
The    Project    Area    will    be    protected    from    floods    by    two    Dykes.    The    West ern Dyke must keep out floods from the Awash and its tributaries theTible 1
PRESENT LAND USE IN THE PROJECT AREA
Farm Name
Area Cleared
(ha)
Area Presently
Cultivated
(ha)
Crops Grown and Area
(ha)
Remarks
National Resources S/C
300
300
600 ha increase planned for 1970, no
program for 1971.
Agricultural Research
300
152
90 trial crops
53 productive investigations
9 fallow
30 ha increase in cropped area by 197
Awash Valley Authority
Settlement Scheme
800
fioo
570 cotton
30 maize
No program
Ambash
240
60
60 cotton
For 1971 an increase of 350 ha
Ethiopian Farm
360
110
93 cotton
By 1969-70 a total of 300 ha will be
cropped
Algbeita Private Coop.
40
40
For 1970-71 an increase of 50 ha
Total.
2. 040
1,262
90510 -
Table 2
FARM SUBDIVISION ACCORDING TO THE LAND CLASSIFICATION
—^Land Class
Farm No.
Class 1
2
s+sd+st+std
2
tfd+td
3
s+sd+st+std
3
t+d+td
4
6
Rock
Total
I
2
3
4
5
6
7
8
9
46
-
57
550
113
33
52
55
25
2, 781
777
550
1,545
474
796
53
52 1
841
67
47
91
761
380
427
782
420
174
449
623
11
1.786
4
3
-
26
790
89
248
73
-
2 37
22
37
13
88
43
232
88
-
69
-
-
-
-
27
Future Township
Total
39
38
-
30
6
2
-
-
30
81
3
4
I
42
I
17
-
-
-
105
3,865
1,645
710
5, 020
1, 000
1. 315
900
1, 110
I, 930
275
931
8, 338
3, 149
3, 781
761
411
226
173
17, 770Kcsscm    and    the    Kebena,    while    the    Eastern    Dyke    must    protect    the    Area
house the following facilities:
from     floods     coming     from     the     Alcidcgi
Plains
and
channel
them
towards
the Unda Eilen swamp and the Angelelc Plain.
Administration Offices
120-Bed Hospital
The problems posed by the foregoing works and the criteria adopted in their design arc discussed in detail in Vol. 4 of Part II, while the basic constructional features are detailed in Chapters 3 and 4 below.
Police Station
Post Office
Government Offices (taxes, health, public works, etc. ) Commercial Center with shops, bank agency, etc.
URBANISTIC LAYOUT
The future population of the area has been estimated at over 50,000. It is therefore necessary to plan a township where all the main services
will be concentrated, since it is inadvisable to rely on the scant services
existing in Awash Station or on those existing in Nazareth or Dire Dawa
on account of the distance of these two cities.
The township is therefore likely to become the thriving center of a rap idly developing area and should be planned with an eye to the future so as to avoid later revisions or alterations.
A plan for the town has not been drawn up as for now, but the minimum requirements have been established in order to estimate the cost of the scheme. The location of the town has also been determined, so that fu ture expansions will not intrude upon the irrigated area. The new town will be built mostly on a non-reclaimable area near the present Melka Warar village and will be directly connected to the new Awash-Tendaho Highway. The existing village should be restructured and inserted with in the frame of the new town.
The selection of the site has also been determined by its topographic features:          the area near Melka Warar is gently rolling, which will give an opportunity for an interesting town design and at the same time
permit good storm water drainage and good ventilation.
Primary and Secondary School
Fire Station
Christian Church
- Mosque
Social Center and Cinema
General Stores
Workshops.
The planned 10, 000 or so inhabitants in the Settlement Area will be housed in four villages each taking about 2. 500 people. Each village will, in turn, consist of three units about 1.5 km apart and each unit will be composed of two nuclei comprising 80 houses for the settlers, linked by a central area where the common services and the skilled workers dwellings will be located. Social functions call for a complex of services (education, training, religious services, health services, public meeting places, etc.).
Each Commercial Farm will possess a center formed of administrative buildings, stores, houses for laborers, dwellings for seasonal workers and school. There will be an electricity supply and drinking water will be obtained from wells. Two of the seven Farm Centers, one towards the extreme north and the other towards the extreme south, will be pro
vided with health facilities.
On account of the function it will be called upon to fulfill, the new town
will have the character of an administrative center rather than that of a
The    Area    will    be    served    by    an    airstrip    to    be    located
as
near
as
possible
residential settlement. The buildings will be mostly public and will
to the road linking the future township to the Awash-Tendaho Highway.- 13 -
- 14 -
The whole area will also have electric power which will be tapped off
the Awash-Dire Dawa transmission line at Metehara. Domestic water
for the villages will be drawn from underground sources
The road network will consist of Unit Tracks and District Roads linking the fields to the Farm Centers and to the main network, formed by two Main Roads running along the long sides of the Area, interlinked by four other roads. The Main Road Network will be tied into the Awash-Tendaho Highway by a Link Road.
The two bridges planned acrosB the Diversion Weirs will provide road access between the Awara Melka and the Bolhamo Areas (when these have been reclaimed) and the Township and the Awash-Tcndaho Highway.
3. MAIN WORKS
3.1. GENERAL
The classification "Main Works" has been applied to those works which arc of such importance and of such interest to the Area as a whole or a considerable part of it or which involve more than one owner, that it is advisable for them to be built and run by a Public Authority. These works
are:
Diversion Weirs
Main Canals
Main Drains
Main and Service Roads
Flood Protection Dykes
The    drawings    showing    the    layout    and    alignment    of    the    various    works    are contained in Figs. 2 and 3 and Maps 1 and 2.
3.2 DIVERSION WEIRS
3. 2. 1 Melka Sadi Diversion Weir
The    Melka    Sadi    Diversion    Weir    will    draw    from    the    Awash    River    the water necessary for the irrigation of the Melka Sadi subarea.
The    weir    and    its    appurtenances    will    be    founded    on    the    conglomerate    for mation occurring at the elevation of the low-flow bed.
The   average   elevation   of   the   low-flow   bed   is   74   5.   50   m   a.   s.   1.   After   con struction    of    the    weir    and    the    dykes,    the    elevation    of    the    water    surface    at maximum    high    flow    (I,    500    cu.m/sec)    will    be    about    754    m    a.    s.l,    down stream and 755 m a. s. L upstream.- 15 -
- 16 -
The diversion consists of two weir spans each 20 m long. The crest el
evation is 74 8. 30 m a. s. I. and the foundation elevation 738. 50 m a. s. I.
A 4-m deep concrete cutoff is planned beneath the upstream toe of the
weir to prevent syphoning and to reduce uplift pressures.
The water energy will be dissipated in a stilling basin consisting of:
one dentated roller bucket
one reinforced concrete apron
concrete-slab bed protection
gabion-mattress bed protection (1).
There will be two three-meter wide gravel passes, one on each side of
the weir. These will be controlled by manually operated 3 x 4 rn flat
gates.
A road bridge will run over the weir.
The intake to  the Melka  Sadi Main Canal consists of a  cellular structure in reinforced concrete.  It is also  founded on the conglomerate.  The off take has two spans, each complete with:
one trash rack with service gangway
one manually-controlled flat cutoff gate of 1.5x2. 0 m
one automatic downstream constant level gate, capable of passing
3 cu. m/sec with a head loss of between 0. 1 5 and 7.1'5m, i. c. capa
ble of operating, whatever the discharge which overflows the weir.
One Venturi type discharge measuring flume complete with control gate
and discharge recording apparatus is planned between the automatic gates
of the stilling basin and the Main Canal.
The    weir    will    be    tied    in    to    the    Melka    Sadi    hills    through    two    short    stretches of dyke on both banks (top elevation 7 57. 00 m a. s. 1. ).
(i ) This layout will have to be checked on a model at the Final Design
stage.
A watchman's house will be built near the diversion weir. This will have
a radiotelephone link with Melka Warar Diversion Weir and the offices of the AwaBh Valley Authority to be built near Melka Warar HiU.
The relevant drawings will be found in FigB. 4. 5 and 6.
3.2.2 Melka Warar Diversion Weir
The Melka Warar Diversion Weir will draw from the Awash River the water necessary for the irrigation of the Amibara subarea.
The works the right side will be founded on the bed of basalt after the recent silts have been stripped away, while the works on the left side
will lie on the compact clays after stripping the silts and the lavas.
The average elevation of the bottom of the low-flow bed is 73 I .00 m a. s. 1.
After construction of the weir and the dykes, the elevation of the water surface during high flows (1, 100 cu. m/sec) will be 740. 50 m a. s. 1. downstream and 742. 20 m a. s. 1. upstream.
The diversion consists of three spans of weir each 20 m long. The crest of the weir lies at 738. 00 m a. s. I. and the foundation at 724. 00. Two 4 m deep concrete cutoffs are planned beneath both the toes of the weir to protect against syphoning and to reduce uplift pressures.
The water energy will be dissipated in a stilling basin consisting of:
a dentated roller bucket
a reinforced concrete apron
concrete-slab bed protection
gabion-mattress bed protection.
One three-meter wide gravel pass is planned on each side of the weir to prevent silting up. Each of the passes is controlled by a flat. 3 x 4 m manually operated gate.
There will be a road bridge over the weir.- 17 -
The    intake    to    the    Amibara    Main    Canal    consists    of    a    cellular    structure    in reinforced concrete founded on basalt and made up of:
one trash rack with service gangway
one 3. 00 x 3. 60 m manually operated, flat cut off gate
one automatic downstream constant level gate, capable of passing
10 cu. m/sec with a head loss of being 0. 20 and 5. 0 m, i. e. capable
of operating whatever be the discharge over the weir.
The diverted discharge will be measured by a Venturi type measuring
flume equipped with control gate and discharge recording device; the flume is planned at station 1,00(100 of the Amibara Main Canal, where the Bol - hamo Main Canal intake will be constructed when that Area is reclaimed.
The weir will be tied into the Melka Warar Hill and Mount Dofan by two short stretches of dyke the top of which is set at an elevation of 743.50 m
a. s. 1.
A watchman’s house will be built near the Diversion Weir and this will be linked by radiotelephone to the Melka Sadi Diversion Weir and the Awash Valley Authority's offices to be built near Melka Warar Hill. For drawings sec Figs. 7-8 and 9.
3. 3 MAIN CANALS
3. 3. 1 Melka Sadi Main Canal
This will convey the water from the Melka Sadi Diversion Weir to the Intake Structures of the District Canals in the Melka Sadi subarea.
It starts from the discharge measuring structure and runs north between elevations of 750 m a. s.l. and 742 m a. s. 1. at the foot of the Alcidegi Escarpment; its total length is 1 1, 760 m. The initial discharge will be 5. 25 cu. m/sec. The bottom slope is between 0. 18 and 0, 20 m/km and the bottom width is between 2. 50 and 1 . 50 m. Usually it will have be tween 1 and 2 meters depth of water and the freeboard is 60-50 cm. The embankment width is 3 m.
7    District    Canal    Intakes    equipped    with    water    level    regulating    weirds    and    4 syphon outlets with Taildrain gates are planned on this Main Canal.
The    terminal    stretch    between    9.    820    km    and    11,760    will    serve    two    Irriga tion Districts belonging to the same Commercial Farm.
The relevant drawing is given in Fig. 10.
3. 3. 2 Amibara Main Canal
This    will    convey    the    water    from    the    Melka    Warar    Diversion    Weir    to    the Intake Structures of the District Canals in the Amibara subarea
As discussed in detail in Part II, the Canal has been so designed that
when the Bolhamo and Angelele Areas are reclaimed it will be capable of
carrying the irrigation water for them too.
The     Amibara     Main     Canal     starts     downstream     of     the     automatic     gates     stil ling    basin    and    runs    along    the    line    of    the    ridge    across    the    Amibara    Plain: its overall length is 20, 890m.
The bottom slope is between 0. 14 and 0. 20 m/km and the bottom width is
from 5,to I. 5 meters. The depth of water is between 2. 3 and 1. 1 m;
the freeboard is between 60 and 50 cm. The embankment width is 4.0m
wide up to km 17, 730 and 3. 0 m wide downstream.
ISDistrict Canal Intakes equipped with water level regulating weirs and
4    syphon    outlets    each    with    Taildrain    gates    are    planned    on    this    Main Canal.
The reference drawings are given in Figs.  11  and 12,  while Figs.  13, 14,  15,  16  and 17  set forth the reference drawings for the Melka  Sadi Main Canal and the Amibara Main Canal.Structures.
3. 4 MAIN DRAINS
The    Main    Drain    Network    consists    of    Main    Drain    No.    1,    plus    its    four affluents or subaffluents (Main Drains Nos. 2, 3, 4 and 5).- 19 -
Main Drain No. 1 collects the waters from the whole of the Melka Sadi
subarea and those from the eastern part of the Amibara subarea
After having collected the waters conveyed by Main Drain No. 2 (at the
northern border of the Area), it runs north along the thalweg of the An-
gelele Plain.
Because the banks of the Awash River are a few meters higher than
the plain, it has been thought advisable not to connect the Main Drain
to it,but to carry the waters towards the Cadda Bilen Swamp.
When the Angelele Area is reclaimed, it will then be possible to deepen
the last section of Main Drain No. 1 and prolong it northwards to act as
Main Drain for this Area too. If necessary, it could then discharge into
the Awash River.
Main Drain No. 2, and its affluents Main Drains Nos. 3, 4 and 5 serve
the western part of the Amibara subarea.
The     alignments     of     the     Main     Drains     generally     follow     the     natural     lines     of depressions.
The bank slopes of the Main Drains are 2 vertical to 3 horizontal, while
ed together at their ends, and by four transversal stretches. ThcServ-
ice Road of the Main Amibara Canal will be a further longitudinal
link.
A    Link    Road    will    join    the    Area    to    the    Awash-Tendaho    Highway,    whose alignment    will    extend    over    the    Aleidegi    Plains,    about    5    km    east    of    the Area.
Two bridges are planned over the Awash River, at the two Diversion
Weirs, so that when the Areas of Bolhamo and of Awara Melka are re
claimed connections will be facilitated both with the road system of the
Melka Sadi-Amibara Area and with the Awash-Tendaho Highway.
The Eastern Main Road will follow the eastern boundary of the Area and,
during the first 11,760 km, will also serve as a Service Road for the
Melka Sadi Main Canal. It wilL be constructed between the Eastern Dyke
and the Melka Sadi Main Canal first, and then between that and Main Drain
No. 1.
The Western Main Road will follow the western boundary,  i.  e.  the West
ern Dyke.
the bottom slopes varies from a minimum of 0. 1 0 m/km to a maximum of
With regard to the Link Road, in the absence of adequate maps which
0. 60 m/km. The bottom width varies from a minimum of 1. 0 m to a
maximum of I 0 m.
The roadswill be crossed by reinforced concrete bridges with spans of
would have enabled the alignment to have been ascertained with a suffi cient degree of approximation, the direction and junctions have been de fined, as shown on the attached 1:100,000 map, estimating the length
with a certain amount of caution. The link to the Eastern Road will be
from 10 to I S m, while the irrigation network will be crossed by means
made at the road junction envisaged at the Melka War ar Hill,
of canal bridges.
Bed-drops will be used where the ground slope is excessive and where
The    Service    Road    of    the    Amibara    Main    Canal    has    been
planned
on
the
there are changes of section. They will be built of reinforced concrete;
the bottom and the sides of the Drain will be protected with gabions.
left side of this Canal.
All the Main Roads will have a carriage way of 7 m. as well as two
The reference drawings arc given in Figs. 18, 19. 20 and 21.
3. 5 MAIN AND SERVICE ROADS
The Main Road network of the Area will consist of two Main Roads which will follow the east and west boundaries, and which will be link
1.5-rnwidc    shoulders   (1).    Only    the   Amibara    Main    Canal    Service   Road   will   have a 6-m carriageway as well as two 1-m wide shoulders.
(I) The Main Roads will be built by AVA; the Imperial Highway Au thority will maintain them. Therefore lHA's Standards have been
followed.- 2)
- 22 -
The carriageways of all the Main Roads are usually set some 50-cm a
bovc ground level, ramps for bridges and culverts and the few required for natural escarpments will have a gradient of not more than 4%.
The radius of bends, except at T-junctions, is in excess of 500 m.
In view of the various traffic intensities they will have to carry -at least
at the beginning and until the Awara Melka, Bolhamo and Angelele Areas have been reclaimed - the Main Roads have been differentiated with re gard to type of paving.
The Eastern Main Road and the Link Road to the Awash-Tendaho High way, which will have to carry most of the traffic from and to abroad,
will have a granular sub-base 20-cm thick, a 15-cm thick crushed stone base-course, and an asphalt surface treatment from I cm thick.
The Western Main Road, the four linking sections between the Eastern
and Western Main Roads and the Service Road of the Amibara Main Canal, whose function, at least at first,is only that of linking the internal
road systems of the various Commercial Farms and of the Settlement Zone with the Eastern Main Road, and whose traffic will, therefore, be much less, are planned with a 25 cm thick stabilized finish.
The length of the Main Roads are as follows:
Eastern and Link Road
Western Road and four branches Amibara Main Canal Service Road
The reference drawing is given in Fig. 22.
50 km
88 km
21 km
3. 6 FLOOD PROTECTION DYKES
3. 6. 1 Western Dyke
The Western Dyke will protect the Area from the floods of the Awash River and of its Tributaries the Kessem and Kebena.
It consists of two  stretches; the first,  20.  5  km long,  starting  at the Mel ka  Sadi Diversion Weir and ending  at Melka  Warar Hill; the second,  about 37.  0  km long  starting  at the Melka  Warar Diversion Weir and ending  7km beyond the northern boundary of the Area.
The height of the first stretch ranges from 2. 5 m to 6. 5 m; the height of
the second stretch ranges from 1. 5 m to 5. 0 m; the question of the height
of the dyke and the possibility of it being reduced is discussed in detail in
Volume 4, Part II.
The top of the Dyke will be 5  m wide.  The slope on the river side is 3 horizontal to  2  vertical while the slope of the Area  side is 2  horizontal to I vertical.
An    inverted    filter    in    sand    and    gravel,    3    m    wide    and    50    cm    thick,    is    plan ned at the internal toe of the Dyke.
The reference, drawings are given in Figs. 22, 23 and 24.
3. 6. 2 Eastern Dyke
The Eastern Dyke will protect the Area from flood waters coming from
the AleideghiPlains.
The Dyke starts at the Melka Sadi Diversion Weir, runs along the Melka Sadi Main Canal and Main Drain No. I and ends approx. 700 m beyond the northern boundary of the Area.
Its length is 42 km approximately; its height ranges from 1. 00 to 2. 50m.
The slope of the external side is 3 horizontal to 2 vertical while the slope
of the internal side is 2 horizontal to 1 vertical; the top width is normally
3. 0 m except in the stretch from km 0 to km 2, 250 where the Eastern Main Road runs along the Dyke; in that stretch the top w idth is then I 0.0 m.
The reference drawings arc given in Figs. 22 and 24.- 23 -
- 24 -
4. MINOR NETWORKS
4.1 GENERAL
The classification "Minor Networks" ha9 been applied to those parts of the irrigation, drainage and road networks which serve only one Com mercial Farm (or just the Settlement Zone); they may therefore be built and run by the individual farms. They include:
District Canals, Drains and Roads Unit Canals, Drains and Tracks
Field Canals and Drains.
The    drawings    showing    the    layout    and    alignment    of    the    various    works    are given in Maps 1 and 2.
4. 2 IRRIGATION NETWORKS
4. 2. 1 General
Each of the two  Main Canals will serve a  given subarea.  In turn each subarea  iB divided into  Irrigation Districts which are supplied by  Dis trict Canals taking off from the respective Main Canal.
The typical arrangement of each Irrigation District is as follows:
- The basic area is the Irrigation Plot 800 m long and 75 m wide (l).
(1) The figure - 75 m - is fixed by the spacing of the Field Drains which are set 75 m apart to ensure effective control of the water
table.
8    Irrigation    Plots    form    one    irrigation    Unit    (600    m    x    800    m    or    48 hectares).
In some cases the Irrigation Plots are 80 m wide and 600 m long and
the Irrigation Unit (always 600 x BOO m or 48 hectares) is formed by
10 Irrigation Plots. Several Irrigation Units form an Irrigation Dis
trict served by one District Canal fed by one Intake from the Main
Canal.
Each    Irrigation    Unit    is    served    by    one    Unit    Canal;    each    Irrigation    Plot is served by one Field Canal.
The reference drawings are given in Figs. 25 and 26.
4. 2. 2 District Canals
The District Canals serve from a minimum of 96 ha (two Irrigation
Units) to a maximum of I, 700 ha and the peak discharge varies from
100 1/sec to a maximum of 1, 730 1/sec.
The bottom slope is 0.20 m/km in stretches were the natural slope of
the ground is adequate or excessive and 0. 10 m/km in other cases.
The bottom width is between 0. 60 m and 1. 50 m, and the depth of wa
ter between 0. 50 m and 1 . 30 m. The top width of the embankment is
1. 20 m and the inside and outside slopes are 2 vertical to 3 horizontal.
The District Canal Intakes consist of a reinforced concrete Venturi
type measuring flume with control gate. Water level regulating weirs
are planned on the District Canals at each Unit Canal Intake structure.
A terminal weir with Taildrain gate is planned at the end of each Dis
trict Canal as well as syphon outlets with Taildrain gates in some
critical points of the alignment.
The canals will cross roads by means of reinforced concrete culverts;
the round ones will be up to 1-m in diameter while the rectangular ones
will have larger cross sections. The overall length of the District Ca
nals measured on the 1:20. 000 maps, is 1 46 km, equal to 8. 6 rryha of
Gross Arable Area.
The    reference    drawings    are    given     in     Figs.     27.     28,    29,    30,    31.    32. 33 and 34./
- 25 -
- 26 -
4. 2. 3 Unit Canals
Each Unit Canal will have to serve an Irrigation Unit and must therefore carry one Irrigation Module (50 l/sec). These canals lie along the up stream side of the Irrigation Unit and have a bed slope of 0. 20 m/km. The bottom width is 0. 40 m and the normal water depth is 0. 35 m with a freeboard of 0. 20 m and an embankment widlh of 0. 60m. The inner and outer slopes of the embankments are 3 horizontal to 2 vertical. The
Unit Canal Intake Structures will have a Venturi type measuring flume with control gate. Field Canal intakes arc planned every 75 m in Ar rangement A and every 80 m in Arrangement B. An Outlet Structure with Taildrain gate is planned at the end of each Unit Canal; this will consist of a bed-drop pit linked to the nearest drain.
Road crossing (which it has been endeavored to keep to a minimum) will be 0. 40 m diameter reinforced culverts. The total length of Unit Canal as measured on the 1:20, 000 map is 240 km, equivalent to 14. 1 m/ha of Gross Arable Area.
The reference drawings arc given in Figs. 35 and 36.
4.2.4 Field Canals
Each Field Canal must serve one Irrigation Plot and is designed to convey one Irrigation Module (50 l/sec). The bottom slope is between 0. 50 and 2. 00 m/km; hence in most cases it corresponds to the aver age slope of the ground.
The bottom width will be 40  cm and the water depth will vary  from 25-
30  cm.  The side slope will be 1:1  and the top of the embankments will
4. 3 DRAINAGE NETWORK
4. 3. 1 General
By and large, the minor drainage network is the mirror image of the corresponding irrigation network. In some cases, however, this mir ror-image correspondence is not maintained rigidly, especially as re gards District Drains which, as far as possible, have been run along natural depressions.
The reference drawings are given in Figs. 25 and 26.
4. 3. 2 Field Drains
The Field Drains are the smallest members of the drainage network. Normally they will be 1. 40 m deep, with a bottom width of 40 cm and side slopes of 1:1. The bottom gradient will be between 0. 50 and 2.00
m/km. Their normal spacing will be 75 m in Arrangement A and 80
m in Arrangement B.
The Field Drains will discharge to higher order drains (generally Unit Drains, sometimes District Drains, and exceptionally Main Drains) through culverts which will underpass the Unit Track or the District Road running parallel to the drain. When the difference in level be tween the bottoms of the two drains exceeds 40 cm, there will be a
bed-drop before the culvert. The culvertB themselves will be construct ed by means of 30cm internal diameter concrete pipes with bell and spig
ot couplings, laid directly on the bottom of the trench.
be 40 cm wide.
The total lenght involved,  assessed on the
ments is 2,400 km or 142 m/ha of Gross Arable Area.
basis
of
the
typical
arrange
There
are
no 
structures
along 
the
Field
Canals
apart
from
the
intakes
from the Unit Canals spoken of in para. 4. 2. 
. The total length involv
ed, assessed on the basis of the Lypical arrangements is 2. 300 km or 136. 0 m/ha of Gross Arable Area.
The reference drawing is given in Fig. 37.
i
The reference drawing is given in Fig. 37.
4. 3. 3 Unit Drains
The Unit Drains must collect and convey lhe water from the Field Drains. In general each will serve an area of 48 ha (Drainage Unit co inciding with an Irrigation Unit). They will be set 600 to 800 m apart- 27 -
- 28 -
and the bottom slope will be 0.  I 0  to  0.  50  m/km.  The bottom width is 40  cm and the minimum depth I.  50  m.  The side slope will be 3  hori zontal and 2 vertical.
Crossings of roads and - in rare cases - of irrigation canals will be by
means of 50 cm internal diameter reinforced concrete culverts. The
bottom and the sides of the drain upstream and downstream of the cul
vert will be protected by concrete and rip-rap.
The total length of Unit Drains, as measured on the 1:20, 000 maps is
1 50 km or 8. 9 m/ha of Gross Arable Area.
The reference drawing is given in Fig. 38.
4. 3. 4 District Drains
The District Drains collect the waters discharged from the Unit Drains,
and in some cases from the Field Drains, and convey these to the Main
Drains.
The theoretical spacing of these drains,an the basis of the typical arrangement b is 1,200-1,600 m_ However, in reality the spacing will be somewhat differ
ent since the alignments will follow natural depressions, as far as pos
sible.
Roads and irrigation canals will be crossed by reinforced concrete culverts. These will be circular up to 1. 00 rn diameter and rectangu lar or square when larger cross sections are required. The bottoms and the sides of the drains upstream and downstream of the culverts will be protected with concrete and rip-rap lining.
4.4 ROAD NETWORK
The     internal     road     systems     of     the     individual     Commercial     Farms     and     of the Settlement Zone will consist of District Roads and of Unit Tracks.
The latter do not serve more than one Irrigation Unit (48 ha approx. )
and, as a rule, run upstream of a drain. They are provided with an
overall width of 6 m, in order to allow two agricultural vehicles to
pass, and will be about 20 cm above ground level. They will be mere
ly formed of compacted earth obtained from the drain excavation.
x              The District Roads will, on the other hand, link a number of Irriga
tion Units of the same Commercial Farm (and of the Settlement Zone)
to the respective farm (or village) center and to the main road net
work.
It is provided that the carriageway will be 6 m wide with two 1 m wide
shoulders. Ab a rule the carriageway will be 40 cm above ground lev
el and will have a 25 cm thick stabilized finish.
The    total    length    of    District    Roads,    as    measured    on    the    1:20,    000    maps, is 175 km or 10.4 m/ha of Gross Arable Area.
The    total    length    of    Unit    Tracks,    as    measured    on    the    1    :20,    000    maps    is 150 km on 8. 9 m/ha of Gross Arable Area.
The reference drawing are given in Figs. 25 and 26.
The    total    length    of    District    Drains,    as    measured    on    the    1:20,    000    maps is 105 km or 6. 2 m/ha.
The reference drawing are given in Figs. 39» 4 0, 41 and 42.- 29 -
- 10 -
5. COSTS
5. I MAIN WORKS AND MINOR NETWORKS
5. 1. 1 General
The quantities of the individual works and relevant costs of construction
and maintenance have
siderations:
; been broken down on the basis of the following con
The main works (Diversion Weirs, Main Canals, Main Drains,
Flood Protection Dykes, Service Road) will be carried out by a
Contractor on behalf of the Awash Valley Authority, the Main Roads
will be constructed on behalf of the Awash Valley Authority and run
by the Imperial Highway Authority.
The minor networks and the other on-farm investments relating to
the Settlement Scheme will be built by a Contractor on behalf of the
Awash Valley Authority and run at first by a Public Body and later
by the Settlers' Cooperative.
-     The     minor     networks     and     the     other     on-farm     investments     relating     to the    Commercial    Farms    will    be    carried    out    and    run    directly    by    the respective Concessionaries.
The quantities relating to the Main Works (which have been designed one by one, even if with limits of approximation in line with the charac ter of the present study) have been ascertained by direct calculation,
The quantities relating to the District Networks have been ascertained for the Melka Sadi subarea and extrapolated on the basis of the re levant lengths to the Settlement Zone. The costs per unit of length calculated for the Settlement Zone have also been adopted (or the Com mercial Farms Zone, taking into account the actual lengths as measur ed on the 1:20, 000 maps.
The quantities relating to the Unit and Field Networks have been ascer
tained on the basis of the rates per hectare deduced from the typical ar
rangements. duly increased to take into account the changes occurring
when applied in practice.
The unit prices of the various items have been fixed on the basis of the
costs of labor, of materials and of machinery as gathered on the Ethiopian
market; on the basis of the costs of like works constructed in countries
where conditions similar to those of the Area prevail; and finally, and
especially with regard to the road networks, on the basis of the prices
taken from the Feasibility Study of the Awash Tendaho Highway increas
ed to bring them up from 1964 values, the year the project was drawn up.
5,1.2 Main Works
The     quantities,     unit     prices,     and     investment     costs     (net     of     contingencies and engineering) are reported in Table 3.
It must be borne in mind that, for a number of works, in particular Di
version Weirs. Main Canals, and Main Roads, part of the costs must
be attributed to the Bolhamo. Angelele and Awara Melka Areas.
For the sake of both simplicity  and caution it has been felt advisable not to  make reductions,  not least in consideration of the uncertainty  both of the reclamation of these Areas and of the dates of implementation.
5.1.3 Minor Networks
The     quantities,     unit     prices     and     investment     costs     for     the     Settlement Scheme, net of contingencies and engineering, are reported in Table 4.
Table 5, on the other hand, sets out the costs per linear meter of the
individual works, the relevant lengths for the whole Area, the overall
amounts and the costs per hectare, also net of contingencies and engi
neering.
Table 6 shows the investment costs for the Main Works and for the
Minor Works of the Settlement Scheme broken down by local and foreign
exchange components and by category.
Table    7    shows    the    same    costs,    broken    down    by    year    and    by    local    and foreign exchange components.- 31 -
Table 3
MAIN WORKS ESTIMATE
(Excluding engineering and contingencies)
Diversion Weirs
Dykes
Main Canals
Main Drains
Main Roads
Total
Description
Pay
Unit
Unit
Price
(Eth$)
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Clearing and grubbing Common excavation
Excavation from
borrow
Compaction
Field drains
excavation
Field canals
excavati on
Unit canal excavation
Excavation for
foundation
Rock excavation
Plain concrete
Reinf. concrete A Reinf. concrete B
Concrete lining
Reinf. steel
Stone lining
Gabions
Steel carpentry
Granular subbase Crushed stone base Asphalt paving Concrete pipes 0 30 Special devices
Dewatering
Watchman house
Total
sq. m
cu. m
cu. m
cu. m
1. m
1. m
1. m
cu. m
cu. m
cu. m
cu. m
cu. m
cu. m
ton
cu. m
cu. m
ton
cu. m
cu. m
sq. m
1. m
L. S.
L. S.
each
1 lO. 04
1. 75
I. 35
0. 30
0. 80
0. 70
1. 10
5. 00
6. 50
110. 00
1 30. 00
180. 00
145. 00
850. 00
35. 00
85. 00
2,300.00
13. 00
15. 00
3. 00
7. 00
100,000
10,500
140.000
70,000
4,000
18,375
189,000
21.000
1,900,000
10,000
3,040,000
3, 500,000
76.000
17,500
4, 104,000 1,050,000
825,000
250,000
500,000
500,000
33. 000
437,500
675,000
150,000
2,000,000
3,300,000
80.000
4,455,000
1,900,000
512,000
512,000
76,000
691,200
153,600
6,725, 000 270,500
7,492,000 4.582.000
269,000
473, 375
10,114, 200 1,374,600
1,500
17,000
11,100
18.700
7,500
110.500 1.221,000 2.431.000
5, 000
25,000
6,500
32,500
960
5, 100
205
2,200
816,000
433,500
47).500
28,600
3. 500
1,200
280
700
16
630,000
174,000
238,000
24,500
36,800
3.800
150
250
1,400
1,800
13
684,000
21,750
212,500
49,000
153,000
29,900
85,000
1. 105,000
300,000
52,000
350,000
J, 900, 000
780,000
1,050,000
13, 000
17,000
11.100
18.700
7, 300
I, 350
1.490
2, 100
6,900
234
387.200
52,000
350,000
30,000
2
300,000
1.000,000
60,000
2
50,000
60,000
4
65, 000
110,500
1,221,000
?,431,000
1.314,000
195,750
1.266, 500
73,500
586,500
538,200 5. 033, 600
780,000
1.050,000
350,000
1,000,000
120,000
7, 111. 975
6. 352. 500
>,533,800
5,717,650
6, 650,800
28,366,72532
SETTLEMENT ZONE ESTIMATE (Excluding engineering and contingencies)
District Canals
District Drains
District Roads
Unit Canals
Unit Drains
Unit Tracks
Field Canals
Field Drains
Total
Description
Pay
Unit
Unit
Price
(Elh. $)
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Quantity
Amount
Clearing and grubbing Common excavation
Elx cava lion from
borrow
Compaction
Field drains
excavation
Field canals excava* tion and compaction Unit canals excava tion and compaction Excavation for
foundation
Rock excavation Plain concrete Relnf. concrete A Reinf. concrete B Concrete lining
Reinf. steel
Stone lining
Gabions
Steel carpentry Granular subbase Crushed stone base Asphalt paving Concrete pipes
a 30
Special devices Dewatering and
provisional
sq. m
cu. m
cu. m
cu. m
I. m
1. m
I. m
cu. m
cu. m
cu, m
cu. m
cu. m
cu. m
ton
cu. m
cu. m
ton
cu. m
cu. m
sq. m
1. m
L. S.
L. S.
0. 04
1. 75
1 35
0. 30
0. 80
0. 70
1. 10
5. 00
6. 50
no. oo
1 30. 00
180. 00
145. 00
850. 00
35. 00
85. 00
2J30. 00
1 3. 00
15. 00
3. 00
7. 00
-
500, 000
35,000
120,000
120,000
20,000 61.250
162,000 36. 000
400.000
500,000
16,000 875.000
450,000
18,000
420,000
16,800
2 30,000
126.000
9,200 220.500
280,000
11,200
2000,000
80,000
X400.000
136.000
90,000
27.000
120,000
36, 000
680,000
544,000
655,000
458.500
2,500
12,500
2,800
14,000
70.000 2,000
77,000
10,000
1,000
5. 000
2.000
10,000
SOO
2,500
U30, 000
661,000
120.000
330,000
680. 000
655.000
70.000
10,800
307.200 IJ56. 750
162. 000
99.000
544.000
458.500
77.000
54.000
200
400
100
200
9
36,000
58,000
85,000
7.000
20,700
900
170
70
750
162.000
24,650
59,500
26,250
600
500
45
900
6
108,00C 72,500
38,250
31,500
13,800
300
10C
22
250
54.000
14,500
18,700
8,750
350
1.400
60
800
5
63,000
203,000
51,000
28.000
11,500
100
6
18.000 5,100
60, 000
780,000
2,450
2,570
303
2,900
20
60,000
441,000 372.650 257, 550 101,500
46,000 780.000
350
2,450
12,000
84,000
12,350
20,000
86,450
20,000
-
Total
518,450
1.177, 400
825,001
370.300
330,650
47, 200
905,000
789.600
4.963, 600S3 -
Table 5
MAIN WORKS AND MINOR NETWORKS
TOTAL INVESTMENT
(Excluding engineering and contingencies)
Settlement Zone
Commercial farms
Total
Item
Unit
Unit Cost
(Eth. $)
Quantity
Amount
103
(Eth. $)
Quantity
Amount
103
(Eth. $)
Quantity
Amount
103
(Eth. $)
A.      Main works:
Diversion weirs
Main canals
Main drains
Main roads
Dykes
B.  Minor networks:
District canals
District drains
District road
Unit canals
Unit drains
Unit tracks
Field canals
Field drains
Total
I. m
I. m
I. m
T. m
I. m
I. m
I. m
I. m
14. 40
30. 18
16. 50
5. 29
8. 71
1. 20
1. 38
1. 16
36,   000
39,000
50,000
70,000
38,000
39,000
655,000
680,000
518
1, 177
825
370
331
47
905
790
110.000
66,000
125,000
170.000
112,000
111,000
I.645,000
1,720,000
1. 584
1,992
2,063
900
975
133
2,270
1,995
146,000
105,000
175,000
240,000
150,000
150,000
2,300,000
2,400,000
28, 367
7, 1 12
2,  534
5,  718
6.  65]
6. 352
16. 873
2, 102
3,  169
2,888
1,270
1,  306
180
3, 174
2.  784
45 240
l- 35 -
Table 6
5. 2 FARM INVESTMENTS .
MAIN WORKS AND SETTLEMENT ZONE INVESTMENT COSTS (Excluding engineering and contingencies)
(103 Eth. $)
Description
F oreign
Currency
Local
Currency
Total
Labor
Plant
Materials
Camp
Staff
Overheads
Total
510
9, 200
1, 590
2, 440
2, 800
6, 530
3, 000
500
5. 300
960
500
-
3, 510
9, 700
6, 890
3, 400
3, 300
6. 530
23, 070
10, 260
I
33.330
Table 7
MAJN WORKS AND SETTLEMENT ZONE INVESTMENTS {Excluding engineering and contlrvjencier)
J
(J0  Elk S)
Deacrlptlon
let Year
2nd Year
3rd Year
4th Year
Total
Main Work.
Saltlament Zone
Total
of which:
- Foreign Currency
• Local Currency
1 000
1.000
1. 000
-
7. 400
600
5. 966
3. 364
21. 366
4. 944
B. 000
5. 600
2. 400
B. 000
5. 600
2, 400
B. 000
S. 600
2. 400
9. 330
6. 2?0
3. 060
33, 330
23. 070
10. 260
5.2.1 General
The estimate of these investments has been made by  direct investigations and by  reference to  the information collected on the farms situated in the vicinity of the Study Area.
On-farm     investments     include     all     the     measures     in     the     form     of     works and capital necessary to enable rational land-use. They include:
Land reclamation works
Land settlement works
Investments for agricultural development
Processing plants.
5. 2. 2 Land Reclamation Works
These     refer     to     all     the     preliminary     works     necessary     for     beginning     cultiva tion and for the irrigation of the lands and include:
-        Bush and tree clearing
Stone clearing
-        Grubbing
Land leveLing .
a)     Bush andTree Clearing
An estimate of the tree and bush cover has been made during vari
ous on-site inspections effected in the Area and by the interpreta
tion of the air photographs.
The    arras    already    under    cultivation    cover    905    ha,    and    obviously    no measures are contemplated on them. There are another 1, 135 ha- 36 -
- 37 -
which have already been cleared, and are due to be cultivated short ly. Lastly, there arc a further 3, 728 ha almost exclusively under graminaceae and therefore no special measures are needed to elimi nate them.
The bush of medium density is formed of xerophytes and covers a- bout 3. 244 ha. In order to eliminate this, the use of medium-power ed machinery is envisaged for an average of four hours/ha. The operation would be completed and the bush burnt by hand taking an average of 18 working days per ha. The dense bush or tree cover, trees being represented mainly by acacia, affects about 7, 887 ha. The tree clearing operation includes a first passage with a bulldozer for 5. 30 hr/ha, the work being completed by hand, including the burning of waste. Twenty-one working days and a passage with a bulldozer to uproot and eliminate the trunks for one hr/ha, would be required.
The cost per ha of the bush and tree clearing operation have thus been estimated as follows:
Bush Clearing
Table 8 EXTENT OF THE-VARIOUS TYPES OF PLANT COVER IN THE
PROJECT AREA AND RELATIVE COSTS OF CLEARANCE
Surface Area
(ha)
Cost of Clearing 1
(Eth. $)
Description
Gross
Net
(1)
per ha
Net
Total
machinery
labor
Total
Tree Clearing
machinery
labor
Total
Elh.     $     97.     00
Eth. $ 23. 00
Eth. S 120.00
Cultivated areas
Cleared areas
Areas       almost       exclusive ly graminaceae
Areas    under    bush    of medium density
Areas    with    dense    bush or tree cover
905
1, 135
3, 728
3, 244
7. 887
739
928
3, 047
2, 651
6, 444
-
-
-
-
120
180
318. 120 1, 159. 920
16,899
13, 809
1, 478, 040
Eth. $          154.00
Eth. $            26.00
Eth. $          180.00
The following Table 8 shows the gross and nd sizes respectively of the areas already cleared and of the various types of plant cover, in order to calculate the cost of bush and tree clearance.
(1) The net areas have been obtained by applying 18.3% deductions to the gross areas.
It is seen from Table 8 that the average cost per net ha is I .478,040 13. 809 = 107 Elh. $/ha.
The areas quoted for the cultivated lands and for those cleared of bush and tree cover were obtained from a direct check made at the end of May, 1969. It emerged from answers received on the same occasion from the owners concerned that the total extent of the cul tivated or cleared areas, now 2, 040 ha, would rise by early 1973 to about 3, 300 ha. The largest area will however be essentially
the bush-covered lands, sc that the average unit cost of land clear ance as now calculated should not change to any marked extent.- 38 -
- 39 -
b)      Stone Clearing
The area, represented by alluvial soils with large amounts of small and silty materials, is generally without stones and pebbles. Only in small areas, which are estimated to amount to about 2. 5% of the net area, will limited measures be necessary.
Stone clearing will be carried out with medium-power machinery equipped with a blade and a bucket loader, and a small supplementa ry labor force for finishing operations.
The     cost     per     ha     of     the     stone-clearing     operations     has     been     estimated as follows:
Ripper for 9tone clearing Loading machine and dumper
Hand finishing
Total
Eth. $ 100.00
Eth. $         80. 00
Eth. $          20.00
Eth. $ 200. 00
The total area concerned in stone clearing will therefore amount to (13, 809-739) x 0. 025 = 327 ha. The total cost of stone clearing will be: 327 x 200 = Eth. $ 65, 400. and the relative average cost per net ha will be: 65, 400 4- 13,809 Eth. $4.74.
c)      Grubbing
Since the soils in question are hard and have not previously been cultivated, and also in consideration of the mainly clayey or silty nature of many of them, it is considered that preliminary grubbing to a depth of 50-60 cm is essential. This would also eliminate the stumps and major roots of the plants already removed. This meas ure would precede land leveling, and would also facilitate the latter operation.
The   operation   will   take   in   a   total   area   of   13,   809   -   739   -   13,070   ha, at   a   total   cost   of   13,   070   x   45   =   Eth.   $   588.   150,   and   a   correspond ing average cost per net ha of 588, I 50 +• 13, 809 = Eth. $ 42. 59.
d)      Land Leveling
Land leveling  requirements have been calculated after careful con sideration of the contours on the 1:5,  000  map showing  the envisaged layout of the irrigation plots.
Land     leveling     is     subdivided     from     the     operational     standpoint     into     two stages:
Rough leveling, using trailed scarpers and dozers of varying
power. During this stage of operations, earth moving proper
will be effected and the planned level obtained.
Finishing of the leveled surfaces, by means of leveler scrap
ers or motor-levelers, which eliminate all the small local de
formities.
The cost per ha of this leveling varies according to the average
volume of earth to be moved. The cost per cu. m of earth has been
fixed as Eth, $ 0. 80. The cost of the finishing operations is con
stant, and may be put at about 50 Eth. $/ha.
Tha landB in the Area have been grouped on the basis of their slopes,
calculating the average volume of earthmoving necessary for each
group to obtain the required degree of leveling. The groups con -
sidered are as follows; the relative cost of leveling being indicated
for each group:
Eth. $
Grubbing     would     be     carried     out     by     medium-power     machinery     equip ped with grubbing ploughs or rippers.
Cultivated areas: no leveling
required.
Areas with slope of < 2%< . average amount to  be moved
300 cu. m/ha
The cost per ha of this operation is
estimated as Eth. $ 45,
Cost of leveling
Cost of finishing
Total Eth. $/h;
240
50
290- 40 -
- 41
Areas with slope of 2-4%  .
e
average amount to be moved
500 cu. m/ha
Eth. $
400
50
450
Areas with slope of 4-6%« , average amount to be moved
1, 000 cu. m/ha
Areas with slope>6%o , average amount to be moved
I,500 cu. m/ha
Cost of leveling 
Cost of finishing 
Total Eth. $/ha 
Cost of leveling 
Cost of finishing 
Total Eth. $/ha 
Cost of leveling
Cost of finishing
Total Eth. $/ha
From    the    costs    specified    in    Table    9    it    emerges    that    the    average cost per net ha of leveling is: 4, 741.740 * I 3,809 - Eth. $ 343. ^8.
Conclusions
To sum up, the total cost of the land reclamation works is:
800
50
850
Land Leveling
Bush and Tree Clearing
Stone Clearing
Grubbing
Cost per Net ha
343.38 Eth. .$
107. 00 Eth. $
4. 74 Eth. $
42. 59 Eth. $
497. 71 Eth. $
Total Cost
4,  741,  740  Eth.  $
1. 478, 040 Eth. $
65, 400 Eth. $
588, 150 Eth. $
6. 873, 330 Eth. $
1.200
50
1. 250
Hence    the    average    cost    per    net    ha    of    the    Project    Area    will    be Eth. $ 497. 71.
These costs exclude final de sign and stipe rvision of works, estimat ed at 2 and 3% respectively of total costs. Also excluded is a con tingency item (20%).
Table 9 shows the gross and net surface areas of the various groups and the total cost of the work required per group, applying the unit costs considered.
IaMe_2_
GROSS AND NET AREAS OF THE VARIOUS GROUPS OF SLOPES AND RESPECTIVE COSTS OF LEVELING
Surface Area
(ha)
Cost
(Eth. 8)
Average Amount of Earth
Worke Envisaged
Groee
Net
Per ha
Net
Total
5.2.3 Land Settlement Works
These include housing, offices and stores within the farms and the Set tlement Scheme. A fuller view of the layout of the Settlement Scheme has been given in Chapter 6.
For Commercial Farms, the layout is similar to that of the Settlement Scheme (see below) but simplified; communal structures are limited to an infirmary. A typical set-up for a farm of 1. 000 ha (net cropped area) is given below:
No, 
,
(thousands of Eth. $)
Cultivated areas
Areas with 500 cu. m/ha
Areas with M0 cu. m/ha
Areas with i.000 cu. m/ha
Areas with 1. 500 cu. m/ha
905
10.410
4.974
525
79
739
8. 511
4. 068
427
64
-
290
450
850
1.250
2.468 190
1.810.600
362.950
80. 000
Houses for permanent workers
Skilled workers
Foremen
Unskilled workers
6
810
455
Total
14.899
13.809
4. 741. 740- 42 -
- 43 -
No,
Cost
(thousands of Eth. $)
Dormitory places for seasonal laborers Skilled workers
- Foremen
Unskilled workers
Administration building
Infirmary
Workshop
Staff houses
Water supply and distribution network Village roads
Storage needs - except for tobacco, dealt with below - have been calcu lated separately, taking into account - also in this case - the most de manding Cropping Pattern ("A”). The storage capacity needed has been
calculated on the basis of the monthly calendar of production of different
6
crops. A unit all-inclusive cost of Eth. $ 50 per square meter has been
58
1, 500
1
1
1
7
455
30
30
8
105
320
80
used.
Such    costs    have    been    applied    to    commercial    farms    in
both
hypotheses
of
project development: Commercial Farms and Settlement Scheme and
Commercial Farms only.
5. 2. 4 Agricultural Development Investment
This item is composed exclusively of the investment cost of agricultural
machinery. A detailed account of the calculation is given in Vol. 5.
There is one particular machine fleet - and therefore one cost - for each
Total
1. 028
cropping pattern. The machine fleet for the Settlement Scheme can be
computed from the information given in Vol. 5 and it has also been
Construction standards are simple, and basically similar to those adopt ed for the Settlement Scheme. To these costs - which are calculated to
shown below (see Table .32 ). The machine fleet as provided at the start
include final design costs - should be added a contingency item (20%).
The need for housing and dormitories has been established by making
of the project requires to be strengthened when the second period of cul tivation begins - i,e. when double cropping is intensified.
It would have been necessary to allow for tooling the workshop foreseen
use of the labor diagrams shown in Vol. 5, distinguishing between per manent labor requirements and peak requirements, the difference be ing represented by seasonal laborers. It was further assumed that per manent laborers would also supply part of seasonal labor requirements
in each farm. However, current costs of the machine fleet, included in
cultivation costs (Vol. 5), already take into account - on an hourly basis -
all expenditures of this kind. While for Commercial Farms this proce
dure poses no particular problem, for the Settlement Scheme it should
from within their families, equivalent in peak periods to 50% of the la
bor force provided by the permanent laborer himself. For the purposes
be flagged, so that in planning the Scheme this item is not forgotten.
of economic and financial analysis, housing needs should have been cal culated separately for each cropping pattern, as labor requirements differ per cropping patterns. However, for reasons of prudence, it
was thought more appropriate to base the calculation on the most de manding among the three cropping patterns, that is Cropping Pattern C.
No maintenance costs for housing is considered, as this is assumed to be the responsibility of the inhabitants (at present, wage rates are so set as to include such types of expenditures). For other items, main tenance has been calculated at 2% per annum of the construction cost for structures, 6% for roads, 4% for water supply.
5. 2. 5 Processing Plants
These are flue-curing equipment, its housing and the necessary storage of the dry leaves. The investment costs are those quoted to the Tobacco Monopoly for a curing plant of 4 ovens and stores for stocking 1/5 of the dry leaf output, a basic unit for about 20 ha (or 1 0 ha if two consecutive growing seasons are concerned). It was found appropriate to express these costs on a per ha basis and per cropping pattern as follows:- 44 -
- 45 -
Flue-curing plant
Storage
Cropping
Pattern A (1)
810
37
Cropping
Pattern B
(in Eth. $/ha)
1,620
74
Cropping
Pattern C
1,215
56
The    value    of    the    machinery    included    in    the    flue-curing    plant    can    be    esti mated    as    30%    of    the    cost    of    the    curing    plant,    and    must    be    renewed    every 10 years.
For livestock two basic figures have been put forward: the present cattle population is estimated at 12. 000 head whereas not long ago it was thought to have been around 40, 000 head. No estimates have been made for sheep, goats or camels.
The drop in the number of livestock is due, according to some ex
perts, to a deterioration of the rangeland caused by the lack of pe riodic flooding of the plains following the construction of the Koka Dam,
This can only be based on an assumption, since the character of the
floods and their effect on the arboraceous, shrubby and herbaceous veg
To these costs must be added an allowance for final design and contingen cies, although of a more modest amount of 5% of the investment costs,
etation are not fully known. The drop in the number of livestock could
as the latter are already inclusive of the design of the plant - only its
location must be surveyed - and are based on firm invoices. Actually,
such costs are probably overestimated, as they are based on prices quot ed for the minimum size curing unit, and discounts are known to apply to
also be due to recent outbreaks of infectious diseases of cattle.
The general impression gathered from visiting the areas defined pre viously is that there are more than 12, 000 head of livestock. This im-:
buyers of multiple modules. On structures only, an annual maintenance
pression is confirmed by the fact that if population estimates are suf
ficiently reliable, the 5, 000 inhabitants (whose principal food is milk)
cost of 2% of the investment cost has been considered.
could not live on this livestock whose productive level is very low. Fur thermore. the individual stockbreeding units visited were always shown^
to consist of more head than had been estimated, especially when taking
into consideration the other species raised.
5. 3 COMPENSATION
The irrigation project for the Melka Sadi-Amibara area creates a prob lem of compensation for the Afar population which at present occupies the territory and which for various reasons will not settle on the newly irrigated land. In fact, the Afar who are entirely devoted to pastoral-
ism will see themselves deprived of the grazing resources of the plains and of their access to the Awash River for domestic and livestock water
ing purposes.
It is estimated that the pastoralist population consists of about 1,000 -
1,200 families comprising a total of about 5, 000 persons at present cen tered on the Project Area and on surrounding areas and depending on the stretch of the river in the Project Area for its water supply.
(1) 2nd period only.
The estimate of the carrying capacity of the plains situated along the river shows that about 4 ha per Animal Unit (1) are r equired during the course of the year (2).
The livestock that goes to drink from the stretch of the river included
in the Study Area during the dry season does not only use that particular area but also all the other areas as far as the ridge which borders the river flats, and also the Aleidegi Plains, upto a distance which per
mits the animals to come and drink every two days. They are estimat ed at about 30, 000 Animal Units.
(1)     Animal Unit « I cow. 1 carnal, 5 sheep, 5 goats (fully grown animala).
(2)     Thia corresponds to a production of about 40 ql/h» of feed for the animals. expreaaed in green forage: thia animate ia slightly mor* conservative than others, and is of course indicative. About 45 kg per day of green iorage with little leeo than 10 kg dry matter Is mumtd per Ani mal Unit, which for the weight of the animals tn the area is a limit which cannot easily be ex ceeded. Naturally, this diet cannot cover the feed requirements throughout the year: there
are tom* months when ths energy and protein requirement* are satlafied and others when the forage contain* *uch a high percentage of Indigestible matter, co that the animate gain and lose weight according to the seasons.- 46 -
- 47 -
In    order    to    compensate    the    loss    of    grazing    resources    and    water    it    is therefore necessary:
to    create    a    grazing    area    equivalent    to    the    20.    000    ha    which    will    be used for the irrigation project;
to    create    water    points    for    the    areas    at    present    centered    on    the stretch of river included in the Study Area.
The     alternative     rangeland     can     be     found     on     the     Aleidegi     Plains     which     are not used at present because of the lack of water points.
The rangelands of the Aleidegi Plains have a similar (if not greater)
carrying capacity to that of the areas along the river, with the disad
vantage, however, that the vegetation almost essentially consists of
a herbaceous layer, and there are no trees or shrubs, unlike the Proj
ect Area. There is therefore less possibility of finding differentiated
animal feed and above all there is no tree cover to protect the animals
from the sun during the hot season.
To be on the safe side, and with a view to avoiding overgrazing, the
stocking rate for thiB area can be fixed at 6 ha per Animal Unit (50%
more than for the Project Area). Hence the new rangeland, with wa
ter points, must cover an area of about 30, 000 ha (or 50% more than
the Project Area). During the dry season (about 5 months per year)
a water supply of 60, 000, 000 liters is required for 12, 500 Animal
Units(about 30 liters per day per Animal Unit).
Information available at present on the hydrology of the Aleidegi Plains
only makes it possible to envisage the construction of conservation re
servoirs. In order to satisfy minimum requirements ten 25x 25x10m
reservoirs are needed; a greater number of smaller reservoirs can
also be planned so as to reduce the animals' movements.
The     cost     of     the     reservoirs,     as     calculated     by     the     AVA     Technical     Depart ment (I) is Eth. $ 21, 000 per reservoir, i. e. a total of Eth. S 210. 000.
(]) See ’’Survey and Development of the Aleidegi Plains” by A. H.
Hunter.
The 30, 000 ha of rangeland and the reservoirs which will enable the
Area to be used must be located in good time to allow for the construc
tion of the works, so that the change to using the new forms of the re
sources occurs before the irrigated area comes into operation.
Along the eastern border of the irrigated area a series of water points
must then be created (deriving from the irrigation canals), for the
livestock which does not graze in the Project Area and which at present
drinks from the river. There wrill be about 5 km between each point
(about 10 water points in all). The w^atcr points shall consist of a pipe
line running from the irrigation canal and by a surge tank with an over
flow. so as to avoid the water ponding. The cost of each individual
water point is estimated at Eth. $ 3, 000 for a total of Eth. $ 30, 000.
The total costs for the works envisaged amount to Eth. $ 240. 000.
The     proposed     solutions     only     consider     compensating     the     Afar     and     do     not envisage the improvement of productivity and living standards.
It is therefore once more suggested that a study should be conducted without delay to assess the feasibility of a range management and ani mal production project for the entire pastoral area east of the Melka Sadi-Amibara area, so as to draw up a program for the better utiliza tion of available resources and enable a productive integration between pastoral area and irrigated area.- 48 -
- 49 -
6. THE SETTLEMENT SCHEME
6. I              INTRODUCTION
Vol.  7  of Part II analyzes the sociological requirements and the main features of a  Settlement Scheme,  which the Government and AVA in tend to establish in the Project Area.
The     following     pages     illustrate     the     organization,     structure     and     costs     of such a Settlement Scheme.
6. 2 GENERAL CRITERIA
The difficulty in understanding the fundamental concepts of cooperation and in living the complex reality of such a modern institution makes it advisable to have recourse to intermediate organizational formulae. These should allow for an efficient organization of production and for the planning of education and vocational training measures, while mak ing the settlers accustomed to living in sedentary groups correspond ing to future cooperatives.
The basic organizational formula will be in reality what could be named ’’precooperative'’. But during the course of this Report, for simplicity's sake, they will be called ’'cooperatives'’.
During the first five-year period there will be 1st grade cooperatives.
The size of these cooperatives is based on the following criteria:
-        Economic criteria: possibility in the future of bearing the highest possible proportion of expenses involved in technical management, in administration and in the distribution of services.
-        Organizational criteria: possibility of organizing the work in an or derly manner and without unnecessary complications.
Technical criteria: possibility of working on well-defined areas; in
this c.ise the basic module is a multiple of the fundamental irriga
tion unit (about 40 ha) i. e. 8 times that unit (320 ha).
Social criteria: 160 families can live on an area of 320 ha; this is
a considerable size for community work but is still reasonable
when recourse is had to expedients of an urbanistic character which
will be dealt with later.
The     precooperatives     will     become     independent     work     cooperatives     in     the
c ourse of 15 years according to the schedule described in paragraph 6. 4.
Each group of three cooperatives,  with a  total of about 480  families liv ing  in an area  covering  960  ha,  will be directed,  assisted and organized by an "Instruction Farm".
This will be transformed in time - once its educational function has
been completed - into a 2nd grade Cooperative of services. The nucleus
of this future large organized community will be a store for consumer
goods which should enter into operation as soon as the Settlement comes
into being.
There will be a  total of 4  Instruction Farms for a  total of about 3,$00  cul- tivable hectares which will come under a  General Management,  later be coming a General Consortium of the Cooperatives (see sketch No. 1).
In order to facilitate this transformation, the tasks for which the General
Management is responsible will largely correspond to those of the future
General Consortium.
The     organization     of     the     Settlement     Area     is     summarized     in     the     following diagram (Fig. A).
The    Settlement    Area    will    include    some    1.    920    families,    of    which    about 320 are from the neighboring Afar population.—
FIG. A
SETTLEMENT SCHEME
LEGEND
INSTRUCTION FARM-FUTURE 2"* GRADE COOPERATIVES B VILLAGE-FUTURE l1* GRADE COOPERATIVES
No. 27118
ITALcnv *UI r j
I- 50 -
- 51
6. 3 SOCIAL ORGANIZATION AND PRODUCTION
6. 3. 1 Criteria for Selection
The selected family must be composed as follows: the head of the fami
ly not older than 30 years: his wife; and his children who must not be
more than ten years of age.
The members of the family must be in good health.
The    head    of    the    family    should    have    no    land    elsewhere.    He    must    not    have a criminal record.
The    head    of    the    family    must    accept    the    rules    of    community    life    and    of group work which will be drawn up by the competent Authorities.
The head of the family must accept and respect the contractual regula
tions with relation to the land, to the forms of remuneration, to mone
tary and other types of obligations envisaged by the competent Authority.
As regards the labor output, the basic standard of judgement will be an
overall production assessed in monetary terms as not less than 80% of
the average production coming from family farms on the Settlement,
taking into account, naturally, any limiting factors which do not depend
on the choice or on the capability of the individual settlers.
The assignee who for physical reasons or because of his behavior shows
that he is not able to take part in community life and in the productive
activities of the Settlement will be dismissed and replaced.
The termination of the short-term tenancy contract (see below, para.6.3.7)
either by AVA or by the settler, means that the settler no longer has any
rights on the unharvested product.
At    the    time    the    settlers    first    come    onto    the    Settlement,    only    the    possi bility of short-term tenancy is considered.
The     alternative     of     keeping     the     settlers     as     wa^-earners     during     an     initial period has been excluded for the following reasons:
in the Pilot Settlement Scheme the Afar families did not go through
a period as wage-earners : the 67 Afar families at present settled in the Area are in fact short-te.rm tenants and it would not be consider ed advisable to bring them down to the position of simplewage-earners;
remuneration based on a wage would make the differences between the Afar and the Highlanders with relation to Lheir productivity in work-days and output, too pronounced.
the Highlanders, who account for over 80% of the settlers may
find themselves socially downgraded if they had to pass from the condition of farmers (tenant or share-cropper) to that of wage-earners.
6. 3. 1 Organization of the Cooperative
a)     All settlers will necessarily be part of the cooperative organization and the head of the family automatically becomes - at the time of the assignment of the farm and house - a full member of the 1st grade Cooperative (or Precooperative).
This also applies at the time of the selection, since it has already
been noted that the fundamental rules of selection include acceptance of and respect for the norms of cooperation and of work in associa
tion.
All those engaged in the services or at least who do not work direct ly on the land, do not form part of the Cooperative: they are wage earners (1) of Cooperatives (or of Precooperatives) of all grades.
b)     There is a 1st grade Cooperative for each village of about 160 fam
ilies.
AU heads of families (members of the Cooperative) belong to the Assembly.
(1) Wage-earners will naturally be able to make purchases in cash from the 2nd grade Cooperative store.- 52 -
- 53 -
The Assembly elects 6 advisers from among its own members (dur ing the first five years the election does not take place and the ad visers will be nominated by the Manager of the Precooperative).
An outside member representing AVA (of accountant standard) will
have a seat on the Board of Management, so that the Public Body can
have control over the board's decisions.
d)      Once the entire Settlement has been set up there will be 4 Presidents of 2nd grade Cooperatives. These Presidents will form the Board
of the General Consortium of the Cooperatives together with one out side member appointed by AVA.
The Board will normally meet 3 times a year. Every two years 3
advisers will be replaced.
The Board will elect a President from among its own members.
6. 3, 3 Assignment of House and Holding
As soon as the settlers have come into the Area they are settled in the
Hence the area of each Instruction Farm will include 3 Presidents.
c)      The three Presidents plus three advisers (one for each 1st grade
Cooperative) will have a seat on the 2nd grade Cooperative’s Board
villages. Each family is assigned a house and from that moment is re sponsible for the maintenance of the building and for all auxiliary serv
ices.
At the same time they are assigned a holding, with complete layout, in cluding canals and drainage. Each holding will cover 2 ha and will be
of Management. In this case also an outside member appointed by
AVA has a right to a seat on the Board of Management,
As already mentioned, as soon as the Instruction Farm comes into
divided into two plots of 1 ha each, for crop rotation reasons.
Since the irrigation unit will cover about 40 net hectares, and because
the crops will also cover the same area each assignee will have one plot
operation, the first nucleus of its future transformation will be for med in the 2nd grade Cooperative for services, with the constitution
of a community store for consumer goods (1).
in one unit and the other in another, so as to facilitate organization of production. The assignee will be fully responsible for the running of his holding.
The     2nd     grade     Cooperative     will     then     absorb     all     the     services     pertain
ing to technical and administrative assistance provided by the Ins
truction    Farm,    as    well    as    the    extra    functions    of
educating 
adults
and
of vocational training.
6. 3. 4 Cultural Operations
The Instruction Farm will be in charge of the mechanized cultural op
erations, and the manual work will be performed by the settlers. In
(I) There are considerable difficulties in running a community store for
consumer goods. A possible alternative could be to have a private
particular:
ploughing,      harrowing,      furrowing,      sowing      are      operatio
ns
to 
be
car
store manager under the control of AVA. However, since one of
ried out by the Instruction Farm;
the fundamental objects of the Instruction Farm is to educate the
settlers in cooperation, it would appear contradictory for the store
irrigation    will    be    carried    out    by    the    settlers    under
the
gui
dance
of
to be run by other than associated management.
a foreman;
weeding: between the rows it will be carried out by mechanical
means by the Instruction Farm and along the. rows it will be done
by hand by the settlers (each one works on his own plot);- 55 -
all    pest    control    treatment    is    carried    out    by    mechanical    means    by    the Instruction Farm;
transportation: transportation from the field to the village is effect
deriving    from    the    employment    of    labor    which    is    unskilled    and    hard to discipline (1); and finally because
c)         the settlement scheme does not appear to be financially capable of
ed by the settlers who carry the goods fcy their own means. In the
evening the product (cotton or groundnuts) will be carried directly to
the store of the village cooperative where the manager (technical su pervisor of the Instruction Farm) helped by the secretary book-keep er and by a foreman who is in charge of the weighing will check
paying even a minute part of investment costs.
Thus the settler may not be under the impression that he has something
at stake in the scheme. The only substitute during the initial period is a
great severity in making the settlers respect their work quotas and their
the quantity and quality of the product harvested by each family.
obligations -as mentioned below - so that they may fear to be expelled
This information will be recorded for each family separately and
from the scheme.
the entire village by the secretary book-keeper.
The product will remain in the Cooperative store overnight and thenext
morning the Instruction Farm will transport it to the farm stores by
tractor and trailer.
All the produce will necessarily be transferred first to 1st grade
Cooperatives,except for maize whose total or partial transfer is op
tional.
6. 3. 5 Other Responsibilities of the Settlers
When a new agricultural Settlement is being set up in a socio-economic
environment which is not so poor as in Ethiopia, the settlers are nor
mally required to contribute towards land reclamation investment through.
- a share in the initial investment, and/or
a contribution in kind to the initial reclamation works, and/or
the    deferred    payment    of    all    or    part    of    the    investment    and    develop ment costs.
In the case of Ethiopia, none of these forms of contribution can occur
because:
a)      of the lack of financial resources;
b)       works will be carried out by contractors in order to avoid delays
6.3.6 Health Service and Insurance
a)
The health service should be free during the first five years when
the difficulties encountered by the Highlanders in adapting them selves to the climate and by the Afar in adapting to the work aid
now diet are most pronounced.
After this period, the competent Authority will have to establish
the amount and method of payment for health service although all
forms of prophylactic treatment, vaccinations, etc., will remain
free and compulsory.
b)
The problem of sick leave is still to be solved, since it has a con siderable negative effect on the far ms’productivity.
In this case it is suggested that a measure which has already been suc
cessful in other parts of Africa with a similar settlement organization
should be adopted.
Every  2nd grade Cooperative should create a  social insurance scheme to  pay  the work of a  wage-earner when an adult member of a  family  of assignees is taken ill.
Because of the social utility of such a measure, the contributions of the members of the Cooperatives to the scheme should be made compulsory and should be fixed by the competent Authority even if they are adminis tered directly by the Cooperatives.
i(I) Land cleaning ia a simple. labor intensive operation where, In principle, future aeltlere could bi
ueed aa manpower, it la diMicult. however, lo isolate thia operation from other land preoaration works without disrupting the schedule of works carried out by contractors.
X- 56 -
- 57 -
6.3.7 Legal. Status and Remuneration
1) A short-term tenancy contract (5 years) will be drawn up for each
settler at the time of settlement in the Area. At the end of the se
lection phase the settler will have a long-term tenancy contract (10
years).
When    this    contract    expires    the    settler    will    have    the    right    to    renew his long-term tenancy for a period of not less than 30 years.
During the entire 45-year period the- contract can only be terminat
ed in serious cases of repeated unfuLfilment of contractual obli
gation by the settler.
In    the    fundamental    articles    of    the    contract,    the    following    should    be specifically mentioned:
Prohibiting     sub-letting     of     the     house     or     holding     to     third     parties: Indivisibility of the holding;
The automatic transfer of all contractual rights of the head of the family to one of the married sons, in the case of the set
tler's death.
The contractual regulations as a whole must be studied by the com petent Authority and approved by the Interministerial Committee (see below, para, 6. 3. 9).
2) The main criterion of remuneration is to ensure a minimum in
come to the settlers as from the initial phase.
It is suggested that this initial minimum should be of Eth. $ 750 for each family, which is equal to the national average of recent years, and slightly more than the average income of farming families in
Ethiopia.
In order that the remuneration for the various levels of productivity shown by the family may at least in part be reflected in the family income, it is suggested that the remuneration be divided into two
parts.
The first part should consist of the monthly advance paid by the In struction Farm, to each family. It is also suggested th.it this sum should amount toEth.$ 50 monthly (1), i.e. Eth.$ 600 per year.
At the end of the agricultural year (or at the end of each cropping cycle) the gross value of the product of each family will be assessed. From this value the following will be deducted:
a)      the total advances received;1
b)      the total cost of hired labor.
c)       the cost of social, technical and administrative services pro vided by the Instruction Farm, if financially possible.
The remainder (from a minimum of Eth.$ 150 upwards) will con stitute the second part of the remuneration, which will compensate the settlers' greater productivity.
Since productivity shall increase while overall costs decrease a gradual annual increase of 2% in the settler's income should be planned for, which is at least on a par with the rise in labor costs forecast for the entire project.
6.3.8 Credit Policy
During the first 15-18 years of the starting up period, the short, medi
um and long-term credit which the Cooperatives may require for pur chasing consumption or durable goodB will be granted by AVA on the ba sis of regulations drawn up by the competent Authority according to banking contracts existing in the country.
(I) In fact, from the investigations carried out by Prof. Van Li er, it
resulted that the advance of Eth.S 30, given in 1968 in the Pilot
Settlement      Scheme      was      insufficient,      since      the      average      expenses of the Afar families amounted to Eth.S 45-50,- 58 -
- 59 -
The beneficiaries will thus become accustomed to completing the neces sary formalities to obtain credit and to respect the relative contractual regulations, so that from the beginning of their self-management they will be capable of making direct contacts with the Credit Institutes. How ever. from the examination of the financial situation of the Settlement Scheme as a whole (sec para.8.3.3) it appears that the possibility of the Co operatives having recourse to Credit Institutions cannot be se
riously considered for the duration of the project. The necessity for credit, therefore, takes the form of a direct subsidy from the Govern ment to AVA. AVA could then be able to grant it to the Cooperatives in the form of a loan.
Representatives     of     agricultural     credit     institutions     will     also     belong     to     the Committee.
6. 4 ANALYSIS OF THE ORGANIZATION FRAME
6. 3. 9 Contacts with Public Authority
Contacts    between    the    Settlement    and    AVA    will    be    maintained    through    the following:
6. 4. 1 Selection Phase
A. GENERAL MANAGEMENT OF THE SETTLEMENT
i) FUNCTIONS
The     functions     foreseen     for     the     general     management     of     the     Set tlement may be broken down as follows:
a)
appointment of the General Manager of the Consortium of the Coop eratives; this will be made by AVA even after the assisted period
Coordination Duties
Liaison with the AVA central offices, involving:
will have been completed;
appointment     of     outside     members     of     the     Boards     of     the     Cooperatives at all levels.
Since the Settlement will continually present problems which are not directly connected with the productive organization but with the social organization (teaching, health, justice and security, etc. ) it is recom mended that an Interministerial Committee be formed and meet
at least once yearly at the invitation of AVA.
The functions of the Committee will be:
to be informed of the Area’s social problems;
to submit recommendations on them to the competent Ministries, to ensure collaboration and unity of action of the different Minis
tries;
to ensure that measures are taken when needed.
Cultivation plans
Administrative relations with the settlers
Marketing of produce
Measures regarding the health and sanitary
condition of the settlement
- Measures of an educational character and con
nected problems (schools meals, provision of texts,
teaching aids and audiovisual equipment)
Credit policy for the settlers.
b)      Technical Duties
Supervise     the     application     of     the     cultivation     plans;     check on     production;     control     the     distribution     of     the     irrigation water to the Instruction Farms; etc.- 60 -
- 61 -
c)      Administrative Duties
Check compliance with contractual commitments enter
ed into by the individual Instruction Farms
Overcome possible disputes between the organizations.
d)     Management of the Services
Ensure    the    sale    of    the    goods    on    the    market    and    their transportation
Run    a    workshop    for    the    major    repairs    to    the    tractor and transport fleets, with annexed spare-parts store
Acquire    on    behalf    of    the    farms    the    inputs    for    agricul ture and supplies for the cooperative markets.
ii) PERSONNEL
The    personnel    of    the    General    Management    of    Settlement    would    be appointed by AvA and include the following:
. Technical personnel
1                  General Manager (at agronomist level)
1                  Assistant (at non-graduale agriculturalist level) Administrative personnel:
1 Chief accountant (at senior accountant level)
I Assistant (at accountant level)
Subordinate technical personnel
1 Chief mechanic (at skilled mechanic level)
2 Assistants
General Personnel
1 Typist
1 Store-keeper
I Driver
1 Guard
2  Watchmen
Personnel coming under other Organizations
1 Nurse.
B. INSTRUCTION FARM
i) FUNCTIONS
The    functions    of    the    Instruction    Farms    may    be    classified    as    fol- 1 ow s:
a)     Production Duties
Draw up cultural plans for the whole area according to the indication supplied by the General Management: organize, coordinate and assist in the production work of the preco operatives; provide for the necessary additional personnel during peak periods on the farms.
b)      Services
Prepare the accountancy and administer the precoopera tives; administer the tractor and transport fleets and pro vide for the minor maintenance of the same; set up and run a market for the settlers’ main consumer goods (first nu cleus of the 2nd grade Cooperative).
c)      Adult Education and Vocational Training
. Provide for the vocational training of the settlers selec
ting the best elements for the particular duties they will be called upon to perform.- 62 -
- 63 -
Instruct     the     women     in     the     indispensable     rules     of     hygiene and domestic economy.
Educate the heads of families in cooperation.
Provide    for    the    replacement    of    the    families    who    are    not adapted to agricultural and social life.
Moreover     the     following     will     carry     out     their     activities     in     the Instruction Farms:
• The Ministry of Education, for both primary schools
and literacy courses.
. The Ministry of Health, to control the general sanitary
situation and follow through the effects of the changes
in diet.
ii) PERSONNEL
During    the    first    five-year    period    the    Instruction    Farm    will    h.rve    the following personnel:
. Technical personnel at manager level:
1 Manager (agronomist)
1        Assistant        (non-graduate        agriculturalist)        employed with the 1st prccoopcrative
1        Assistant        (non-graduate        agriculturalist)        employed with the 2nd precooperative
1        Assistant        (non-graduate        agriculturalist)        employed with the 3rd precooperativc
1     Assistant     employed     in     the     mechanization     and     trans port service
1 Assistant (farmer)
. Subordinate technical personnel:
1 Chief mechanic
1 Mechanic instructor
6    Head    foremen    (3    for    each    1st    grade    Cooperative) 9Tractor drivers
Administrative personnel
1      Book-keeper      accountant      (manager      of      cooperative
shop)
1 Accountant (employed by the Bhop)
1 Store-keeper
-        1 Assistant
Teaching personnel
2  Teachers for adults
3  Home economics teachers
I Vocational teacher
General personnel
1 Typist
1 Guard
2  Others
Personnel coming under other Ministries
8 Primary Teachers
3                  Teachers for adults
1 Male Nurse
C. THE PRECOOPERATIVES
i) FUNCTIONS
The functions of the cooperatives are:
a)     Instruct the settlers to work in functional groups within the framework of modern irrigated agriculture;- 64 -
- 65 -
b)      Form a mentality of cooperation and of market economy:
c)       Accustom the settlers to follow the basic rules of com
munal life;
d)      Develop the capacity of the natural leaders in the per
formance of special functions;
e)       Foster the development of a sense of self-government and
of responsibility.
ii) PERSONNEL
During the first five-year period the social organs of coopera
tion will merely be brought together for educational and training
purposes.
Thus    the    personnel    which    will    form    the    staff    of    each    cooperative will be as follows:
1       Non-graduatc       agriculturalist,       manager       (already       listed       in the technical personnel of the Instruction Farm)
1 Secretary-accountant - storeman
2      Head     foremen     (already     listed     in     the     subordinate     personnel of     the     Instruction     Farm)
8 Foremen.
6. 4. 2 Experimental Phase
A.     General Management of the Settlement
As for the Selection Phase.
B. Instruction Farm
Progressive reduction in the number of foremen.
Gradual reduction of training and of educational activities in
general.
Limited participation in running the 2nd grade precooperative.
C. Basic Cooperative
-      Cooperation      enters      the      experimental      phase:      the      Assembly      elects the     Board     from    personnel     selected     during     the    previous     phase    by the .Manager of the Cooperative.
The Board takes part in organizational meetings and discusses
problems concerning the work and communal life, but decisions
are taken by the Manager.
The    Board    is    notified    of    the    financial    problems    by    the.    Coopera tive Secretary.
The President is nominated by the Director.
6. 4. 3 Assisted Management Phase
A.      General Management of the Settlement
As     in     the     previous     period     with     the     progressive     integration     of local personnel in tasks involving less responsibility.
B.      2nd Grade Precoopcrative (Instruction Farm)
Progressive transformation of the Instruction Farm into a 2nd
grade Precooperative still staffed at management level by AVA
experts.
The    Board    takes    part    in    all    the    decisions    of    technical    and    or ganizational character.
C.      1st Grade Cooperatives
The Assembly is independent
Election of advisers with free nomination.- 66 -
FOR EC.A FT PDUONNEL FOR THE SETTLEMENT AREA
The Board takes part in all the decisions, even those pertain
ing to Administration.
Management is still in the hands of the AVA.
6. 4. 4 Self-Management Phase
A.      General Consortium of the Cooperatives (General Management of
the Settlement)
AVA still provides the General Manager.
All the other technical and social staff come from the settlers’
families.
B.      2nd Grade Cooperatives
Self-management with personnel taken from the settlers’ fam
ilies.
C.      1st Grade Cooperatives
Full functioning of the social organizations with a right to take
independent decisions except in commitments of contractual
character entered into with AVA.
6. 4. 5 Forecast for Non-technical Personnel Requirements
The     modifications     in     personnel     during     the     various     phases     and     the     gradual employment     of     cadres     coming     from     the     Settlement     arc     illustrated     in     Ta bles 10 and 11.
Table 10  also  indicates personnel salaries,  which have been adapted from the EELPA salary  scales.  Except for the General Manager of the Set tlement Scheme, all other employees are considered of local origin.Oil HI
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L
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.......................................................... ...... ....................................................................................... ............................................ 1
—- 69 -
- 70 -
This     assumption     may     appear     optimistic     at     least     for     teaching     personnel. However:
a)      primary school teachers are available in Ethiopia;
b)      literacy teachers arc available in Ethiopia, it would be desirable
for this activity to be connec ted with the UNESCO Mission which
during the next five years will carry out experimental projects in
this field in Ethiopia;
c)       vocational training instructors are available in the country;
d)      adult education teachers: at present trained at the Awassa Train
ing Center, but in view of the requirements of the Project their
standard should be improved as 1st, 2nd and 3rd grade Coopera
tive instructors and in managerial training. For this AVA could
collaborate with the Awassa Training Center (Ministry of Com
munity Development and Social Affairs) in organizing supplementa
ry courses for the already diplomated community workers, by us
ing outside qualified instructors;
e)          Home     Economics     teachers:     are     trained     at     the     Awassa     Center     and there    is    no    reason    to    believe    that    there    arc    not    enough    of    them    to fulfil the requirements of the Project.
For other types of personnel, the question is rather of policy and of
coordination with other Government departments: it appears that the
graduates' level is satisfactory, but their appointment by the Govern
ment to the Project or to other assignments must be based by the Gov
ernment on a judgement as to the priority of different assignments,
just as for any scarce resource. This judgement goes beyond the terms
of reference of the Consultants.
6. 5 SETTLEMENT VILLAGES
6. 5. 1 General Design Criteria
The design of the settlers’ villages has been based on a  program estab lished bearing  in mind the suggestions of the sociologists and the health experts in respect of size, layout and utilities.
The population of the Settlement can be evaluated to reach a maximum of 10, 000 within the first four years of operation. This means that ac commodation for this population must be provided between 1974 and 1978. The Instruction Farms will be four and will be identical; their
population will therefore be of approximately 2, 500 persons each.
This figure includes the farmers and their families, the administra
tive and management staff and all other employees not actually work ing on the land but closely related to the operation of the Project (mechanics, shopkeepers, teaching staff, etc.).
The villages (12) have been conceived as integrated communities able to fulfill various functions: residential, social and organizational (see
Fig. 0.
The residential areas will contain houses for the settlers and houfies
for higher-grade personnel in charge of the administration. The social function regarding the settlers and their families will be fulfilled by a complex of services (education, training and formation, religious ser vices, health services, public meeting places, etc. ) within easy reach
of the housing areas. Social centers will be provided where various problems of common interest may be discussed and analyzed and solu tions to them studied. The administration center will comprise the premises (offices , stores, etc.) necessary for the management of
the farm and relative services.
6,5.2 The Typical Village
a) General Layout
Each Instruction Farm will comprise three units spaced about
1.5 km apart. In turn, each unit will be composed of two nu
clei comprising 80 houses for the settlers linked by a central
area where the common services and the skilled workers' dwellings will be located. One of the three units will be some what larger than the other two, the quota of common buildings and staff quarters being higher, since it will cover the role of Management Center for the Instruction Farm (see Figs.43 and 44)- 71
- 72 -
The villages will be built off the main roads so  that no  through-traf
fic can occur and will be surrounded by  a  green belt to  protect them
from the wind.
In addition,  dormitories for seasonal workers will be.  provided,  in
the proportion required.
c)
The road network has been kept at its simplest. The main road
serves as a backbone from which the smaller lanes leading to the
Sery£ce_ajid^^drnini£tratjon_Build£n£s
The service and administration buildings for the management of the
houses branch off; adjacent to it and along it, the collective services
Instruction Farms will be located in each of the main units. They w ill
will be located.
be very simple one-storey constructions, in concrete blocks with
corrugated steel sheet roofing and will house the school, offices,
b)     y2  j l^
us  r
stores, shops, workshops, etc. The buildings will be so grouped as
A very simple type of dwelling has been selected for the workers,
to constitute a ’’heart" for the village and to create a live space. Ex
tensive use of planting is recommended so that the buildings will not
both from the standpoint of layout and of building material. The houses
appear to be scattered along the strerts and squares but will form a
are one-storey constructions with three, rooms, an open-air kitchen,
spatial composition, functionally sound and pleasing to the eye.
a store and a latrine. Each house has a garden plot of 500 sq.m (see
Figs. 45 and 46). Additional rooms can be easily built, depending on
d)
future family requirements, raising the number of rooms from three
to five. A timber frame with chica walls and roofing is envisaged
for construction. Openings will be provided with woven matting
Settlement Management
The buildings for the management will be located outside the irrigat ed perimeter in an elevated position. These will comprise a small
blinds. The floor will be in cement. The fencing between the plots
and along the roads will be constructed according to the local tradi
tion, with interlocked branches.
The choice of these features has been determined by both practical
group of houses for the staff and the technicians and the general ad
ministration and management buildings, including a 6 bed infirmery
and first-aid center. The management center will be linked to the
farm road network by means of a road branching off at the crossing
between the main transversal road and the peripheral road.
and social reasons. Chica houses have an excellent degree of heat
insulation, arc easily and economically repaired and additional rooms
can be built by the owners themselves without requiring the employ ment of skilled labor. Moreover, the type of dwelling proposed is al ready an improvement vis-a-vis the type of hut some of the future in habitants are presently accustomed to. The adoption of more advanc ed structures would mean too radical a change in ways and habits.
6.   5. i Public
Utilities
a)
For these reasons, a type of dwelling such as the one proposed was
;P£wer__S_upgly
Power for the villages will be supplied by means of an overhead line
also considered satisfactory by the Steering Committee.
The houses for the skilled laborers, the foremen, etc. . will also be
connected to the HV Awash-Dire. Dawa transmission line at Metehara
substation. A pole transformer will be installed in every village. A
very simple public lighting system has been e nvisaged for the main
constructed in chica but will be provided, in addition, with a simple
roads. Electricity will be supplied to the staff quarters and publir
electric system and slightly better finishings.
Houses for the staff will be constructed in concrete blocks with
buildings, whereas the workers' houses will not be provided with e-
lectricity.
galvanized corrugated sheet steel roofing and will be provided with running water and electric system.
Also    the    submerged    pump    for    the    water    supply    will    be    driven    elec trically.- 71 -
6
- 74 -
b) Water Supply
Each village will be provided with a well having a discharge of
Z;4ec. The distribution network will lead off from a water tower by the well which will have a capacity of about 8 cu. m.
The water requirements have been estimated as follows
for domestic uses
for cattle
100 1/day/person
25 1/day /he ad.
Each subsidiary village will therefore require approximately
1 35, 000 liters of water per day, whereas each main village will re
quire 160,000 liters. The distribution network will follow the roads
and will supply the drinking fountains, the washing troughs and the
cattle drinking troughs.
The public buildings and the staff houses will be equipped with a plumbing  system whereas the workers will collect the water they require from the public fountains.
c) Sewage ^.nd_ Drai nagc
The construction of a sewer system is not justifiable at the present stage since practically no building in rural Ethiopia is served by such a system. Instead, every building will be equipped with its
own cesspool, which represents a considerable improvement over pre sent housing conditions. The type of soil and the depth of the water table guarantee that no pollution of the water for domestic or irriga tion uses will occur. Seeping trenches will be provided at the cattle drinking troughs and washing troughs, to dispose of excess of soil
ed water.
Rainwater will be drained off the roads by means of open ditches discharging into the green areas. It is, however, of the utmost im portance that the ditches be properly maintained in order to avoid the growth of weeds or their clogging up with domestic refuse; this would turn the ditches into an ideal breeding place for mosquitoes and other insects and the result would obviously be an unhealthy environ ment with easily imaginable consequences.
d) P^me^iC—R^u^cD^posal^
Domestic refuse should be collected and brought to a village dump to
be incinerated or buried. The dump should be located outside the
village in such a position that the odors and the fumes cannot be blown
towards the house.s by the prevailing wind.
Alternatively, each settler could dispose of his refuse w ithin his own
plot by burning or burying. This method, however, obviously leaves
the door open to unsanitary conditions, since control is much more
difficult and should therefore, if possible, be avoided.
6. 5. 4 Estimate of Cost
It    is    clear    that    no    detailed    cost    estimate    based    on    a    precise    bill    of    quan tities    and    a    close    analysis    of    prices    can    be    made    at    this    stage.    On    the other    hand,    a    scale    of    current    prices    in    Ethiopia    has    carefully    been    pin pointed;     these     prices     have     then     been     applied     to     the    gross    volumes    which at this stage have been attributed to the individual buildings.
Settlement Management
Workers 1 houses
Staff houses
Rest house
Infirmary
Administration building
Workshop
Water supply and distribution
network
Roads
Eth. $
3,200
90.000
5, 000
30,000
35.000
8, 000
171,200
47, 000
12,000
Total
230,200- 76 -
Main Villag
Housing and dormitories Administration building Stores
Workshop
Staff houses
School
Mosque
Water supply and distribution network
Roads
Total
Eth. $
85,   600
30,000
35,  000
4, 000
420,000
100.000
15,000
690,000
97.000
36,   000
823,000
Summary
Settlement Management
Main Villages
Subsidiary Villages
Contingencies 20%
General Total
Eth. $
230,000
3,292,000
1.652.000
Total
5, 174,000
1.034.000
6,208.000
Maintenance and renewal costs on houses will be the charge of the oc cupiers. For other structures, costs should he charged to the Settle ment Scheme. Maintenance costs on structures have been set at 2 7“ per annum of the cost of construction, on roads at 6% per annum; and on water supply works at 4% per annum.
Multiplying by 4
Subsidiary Village
Housing and dormitories Administration building
Staff house
Water supply and distribution network
Roads
3, 292. 000
Total
73,000
30,000
7, 500
110,500
72,000
24.000
206, 500
Multiplying by 8
1,652. 000- 77 -
- 78
7.      IMPLEMENTATION AND RUNNING OF THE PROJECT
7.1 INTRODUCTION
To arrive at the operational phase of the Project it will be necessary to: Draw up the Final Design
Carry out the reclamation works and all other connected works.
A firm of Consultants should be commissioned to effect the Final Design. This solution 16 preferable both in order to cut down the time required and to obtain the best possible connection of the various sectors into which the design works will be divided: geology, foundations engineering, engi neering, hydraulics, structural engineering, etc. The design works will
be performed under the responsibility of AVA and will comprise not only the works which are to be performed by AVA, but also those to be per formed by Concessionaires. In point of fact, AVA will have to ensure that the works are carried out in such a way as to obtain the most reasonable utilization of the land and waters.
It is also advisable for AVA to turn to a firm of Consultants for super vision of the works.
b)      Improving the detailed knowledge of the geological conditions of the
preselected areas for the implementation of the Diversion Weirs
through a series of boreholes to supplement those already drilled
and a scries of geoseismic tests;
c)       Refining the geotechnical investigations already made especially in
relation to the identification of appropriate and economic borrow pits
where road making and building materials can be obtained.
d)       Performing tests on a model of the two weirs and in particular of
the energy dissipation devices.
Such a series of investigations will need a period of at least six months.
The final designs can be started while the investigations are under way,
but the completion date will undoubtedly be conditioned by the availabil
ity of the data and informations.
After    completion    of    the    final    designs    we    feel    that    a    period    of    6    months    is indispensable for:
The    examination    and    approval    of    the    final    designs    by    AVA    and    the    fi nancing organizations.
Inviting international tenders, receiving and examining the bids. Awarding the contract for the works and signing the same.
7.2 FINAL SURVEYS AND DESIGN
The    Final    Design    of    works    will    have    to    be    preceded    by    a    series    of    de tailed studies aimed at:
a)     Acquiring sufficiently precise maps of the region (scale 1:1 00, 000), of the areas adjacent to the course of the Awash River (scale
1:20, 000), and complete the topographic survey concerning the cross sections of the Awash, Kessem and Kcbena Rivers;
7.3 IMPLEMENTATION OF THE PROJECT
7.3.1 General
For     the     performance     of     the     works     the     following     basic     assumptions     have been made:
That the Awash Valley Authority commissions a Consulting firm of international standing to design all the Main Works, the District Net works of the whole Area as well as the Unit and Field Networks and the land preparation works of the Settlement Zone.- 79 -
- 80 -
That the Awash Valley Authority commissions a Contractor of in
ternational standing to perform all the Main Works and Networks,
as well as the minor networks, and land preparation works of the
An initial period of 4-6  months will be necessary  for the construc
tion of the Camp Facilities.
Settlement Zone.
- That the Awash Valley Authority commissions local contractors to
A further period of 4-6 months will be necessary for the training
of the local personnel and for the starting up of the various opera -
carry out the works of urbanization and of erecting the dwellings
tions.
of the Settlement Scheme, above all in relation to the latter's par ticular constructive type.
That the minor networks and land clearing, grubbing and leveling,
It is envisaged that a first part of the Main Works and. in partic ular, the southern part of the Western Dyke, the two Diversion
the buildings and other farm infrastructures on the Commercial
Farms arc carried out directly by the Concessionaries.
That     the     Awash     Valley     Authority     commissions     aConsulting 
firm
of
Weirs, part of the Main Canals and the Main Drains can be com pleted within 30 months from the beginning of the works; in oth er words that a first part of the Area can be brought into cultiva tion within thirty - six months.
The execution of the minor networks of the Settlement Scheme
international     standing     to     supervise     all     the     works     to     be     carried     out on behalf of AVA.
That the works of the international contractor will be completed within four years from the date the contract is awarded. This pe riod has been fixed also in relation with the suggestions received from the Employer during meetings of the Steering Committee.lt is our opinion, however, that this period has been conserva
tively estimated and that during the drawing up of the Tender Doc uments it can be reduced to 36-40 months.
could be started 12 months from the beginning of the works and completed within 30 months (see Fig. B).
b)     Supervision of the Works
As stated in paragraph 7. 3. 1, it is envisaged that the Awash Val ley Authority will entrust supervision of the works for which it is responsible to a Consulting firm of international standing. Bear ing in mind the nature of the works, and the fact that they are dis tributed over an area of 17, 000 ha, we consider that the field staff supervisory staff should be as follows:
7. 3. 2                Construction of Works
a) Timing
It would be advisable that the Awash-Tendaho Highway or at least
Chief Engineering 
Engineer (graduate level)
Engineers
1
I
3
Laboratory          Expcrt(graduate          level)          1
its first thirty kilometers be completed and open to traffic
Quantity surveyor
1
at the time the work starts. In this way by completing the Link
Road first, and the southern part of the Eastern Road, easy ac cess would be assured to the Area, especially for the supply of
Typist
1
Drivers
3
basic materials (cement, fuel, reinforcing steel).
Site boss
]
These assumptions have formed the basis for the time schedule.
Cooks and servants
3FIG. B
IMPLEMENTATION OF THE PROJECT
TENTATIVE TIME SCHEDULE
CALL FOR BIDS
AWARDING OF THE CONTRACT
No 27119
i i \l cnxju i j- 81 -
- 82 -
Although, with the exception of the Diversion Weirs, the individ
ual works are of a relatively simple nature, the complexity of
the scheme, the interdependence of the various works and the
Settlement
able land:
Scheme, 
and
by 
Commercial
Farms
only 
in
ha 
of
net
ar
high level of the supervisory staff induce us to consider that
AV A as at present structured cannot take on the task and that
it is advisable to have recourse, as already stated, to a firm
of Consultants.
Development by Cammertlal Arma
Development by Com mere 1*1 Farma
Ind Settlement Scheme
Ye*ra
c)      Costs
Cropplnf
F’altem
A
Cropping
patterne
A, BorC
Settlement
Scheme
CummertUI Farm*
Cropping Pattern
Cropping pattern!
A                                A. B or C
The cost of the works has already been discussed in Chapter 5.
The cost of the design, excluding investigations and model tests,
which may be put at about 300, 000 Eth. $, can be taken as equal
to 4% of the cost of the relative works, gross of contingencies.
The cost of supervision, taking account of the fact that the Staff
can make use of the offices and dwellings planned for the AVA
technicians who will have to run the works, has been assessed
at 8% of the cost of the relative works, gross of contingencies.
1974
1979
1979
1977
197H
1979
1990
J. 121
9.714
9. 199
9.199
9.941
1,449
■
991
4. F47 -1’*”
7. 741
11,119
13. 991
949
1.910
2.875
3,999
3. 958
3,959
3. B5fl
2. 193
4.814
9.564
9,564
4. 192
1, 750
*
-
691
3. 112
5.543
7. 975
9. 715
7.3.3
Implementation of cultivation
On the basis of the agronomic indications included in Vol. 5 it is
For purpose of simplification, in the calculation of benefits from the
R’oject, the land development rate in the Settlement Scheme does not
take into account the need for an initial period of cultivation without
groundnuts.
necessary to state the pattern and timing of cultivation in the Pro
ject Area.
Pattern and timing depend on two factors:
7. 3. 4 
a)      The rate of implementation (25% per annum), already mention
Timing of Project Implementation
Implementation could actually be faster, from a technical point of
ed;
view, but a conservative estimate has been adopted, in order to take
b)       The area covered by cropping patterns other than the final one,
for the purpose of correcting a number of land deficiencies.
account of unforeseeable events on the administrative and organiza
tion side, such as negotiations for loan finance, creation of a respon
sible body in the Project Area, tender invitation and examination of
bids,    policy    decisions    as    to    the    final    set    upof    concessions    in    the    area,
The     interaction     of     such     factors     gives     the     following     pattern
of
cultiva
tion, in the two hypotheses of development by Commercial Farms and
water rights legislation, negotiations with EELPA, etc.
Leaving aside the construction of public works, an estimate was nec essary for the implementation of all other works: in particular, mi nor networks, land clearing and leveling, land settlement works. For
these types of works, a distinction 6hould be made between works- 83
- 34 -
7. 4 ORGANIZATION AND MANAGEMENT
which fall under the responsibility of AVA (for the Settlement Sche- me), and works which pertain to Commercial Farms. The former would also be entrusted to contractors, and they could be builtpart- ly. at the same time as the public works arc constructed. However,
and for the usual reasons of prudency a more pronounced lag has been assumed, also in order to take account of the organizational difficulties which are bound to appear in preparing the Settlement Scheme. For works falling under the responsibility of Commercial Farms, time phasing has been based on an estimate of the pace of implementation of minor networks. Although individual farmers may all start implementation at the same time, and (with the exception of two larger size farms) implementation may not require a period lon ger than two years, again prudence dictated that, concerning the Ar - ca as a whole, a more lagged estimate should be made.
It has therefore been assumed that, starting the third year after the beginning of public works .land wi D be prepared for cultivation in four years, at an equal annual rate (25%). All works, therefore, would
take four years, - and end six years after the start ofthe final design. This is also applicable to investments for the machine fleet and for processing plants.
When these assumptions were submitted to the Steering Committee, they were considered reasonably conservative. However, the Com mittee felt that a sensitivity analysis should be carried out. for the purpose of assessing the effect of delays on the economic rate of re turn. Such an analysis has been effected by maintaining the sched ule of investments as established above (sec also para.82 Tables 13-18), but lagging benefits by one and two years. The rate of return on Crop ping Pattern C. for a Project development by Commercial Farms and by Settlement Scheme, changes from 14. 7% to 12. 3% and 10.5% if a lag of one or two years, respectively, in benefits is admitted.
This example shows that an even more conservative attitude with re gard to implementation, than that adopted here, will not substantial ly affect the economics of the Project.
7. 4.I Introduction
As already noted, responsibility for construction and running of the
works will be subdivided in the following way:
- Main hydraulic works (Diversion Weirs, Main Canals, Main
Drains, Dykes), to be performed by AVA.
Main roads (eastern and western main roads, the four trans
verse feeder roads, the link between the Project Area and the
Awash-Tendaho Highway) to be performed by AVA and then op
erated by the Imperial Highway Authority. Such a practice has
already been followed in similar situations.
Minor hydraulic network (District and Field Canals; Field, Unit
and District Drains): for the Commercial Farms part, to be con
structed and operated by concessionaries. For the part regard
ing the Settlement Scheme, the works will be performed by AVA
and management entrusted to a Settlement Authority and hence
indirectly to AVA, until such time as the Settlement becomes an
autonomous body.
Minor     road     system     (District     Roads     and     field     tracks):     the     situation is identical to that for the minor hydraulic network.
AVA will be responsible for management of the water as far as and
including the intakes of the district canals.
Maintenance of the works which arc its responsibility will be perform
ed using AVA personnel and material only as far as urgent measures
and small-scale routine works are concerned. The remainder will be
entrusted to contractors.
For     the     first     years     of     Project     life,     expatriate     personnel     will     fill     a number of posts, subsequently to be replaced by local personnel.
For    the    cost    of    the    expatriate    personnel    reference    has    been    made    to the salary scales of international agencies (FAO, UNO, World Bank).- 85 -
- 86 -
For the local personnel, to date AVA does not have its own salary
scale. Reference has therefore been made, at AVA's suggestion, to
the salary scale of EELPA. on the lines of which AVA’s salary sea
le will shortly be based.
It is envisaged that there will be a 12% increase in salaries every 5 years.
7.4. 2                 Ope ration of the Network
For the drainage and road networks no particular problems arise re garding interference between the activities of the AVA Branch and those of the Concessionaries, since the distinction between them xs clear-cut, not least from a territorial viewpoint.
For the irrigation networks, on the other hand, two months before the beginning of each farm year - a beginning which could be fixed as July - the Concessionaries and the Settlement Management will have to notify the AVA Branch month by month of the discharges they intend to derive at the intake structures of the respective Dis trict Canals; obviously such discharges must not exceed the limits fixed in the Concession contract. The Concessionaries can thus in dicate the discharges that, if available, they would like to derive, month by month, in addition to the maximum discharges of the con
cession.
In other words, if one of the Concessionaries, as a result of adopt ing a different crop plan from that envisaged, expected to derive dis charges below the fixed limit, the AVA Branch will be able to place the difference at the disposal of the other Concessionaries who might intend to adopt more demanding cropping plans.
The AVA Branch will thus be able to draw up the operational plan of the Diversion Weirs and of the Main Canals. On the basis of such an operational plan, the personnel of the AVA Branch will regulate, month by month, the gales on the District Canal intakes.
A similar procedure will be followed for the Settlement Zone,  abo\ <
all when the first phase will have passed on to  the subsequent ones,
so that the role of the Settlement Management and of the 2nd and
1st grade Cooperatives will become differentiated and gradually in dependent. In fact the General Management of the Settlement will continue to be responsible for the management and maintenance of
the District Networks whereas the management and maintenance of the Unit and Field Networks can be passed on to the 1st grade Coo peratives.
The organization necessary for the management of the Main Net works and the relevant costs will be examined below.
7.4.3                  Maintenance of the Networks
The annual maintenance of the works and, in particular, of the ir rigation networks, must be carried out over a short time period.
If this maintenance is carried out by personnel and equipment,belong - ing to the management assigned to the networks (AVA Branch for the Main Works and Settlement Management for the District and Unit Net works falling under their competence) the amount of workers and ma chines necessary would be excessive in relation to the extent of the work, w-hile for most of the year they would have virtually nothing
to do.
It is our opinion, backed up by experience acquired in many Irriga tion Areas in operation for decades, that the Operational Manage ments should ensure the running of the works, entrusting, year by year, the maintenance work to contractors.
The costs of maintenance, always on the basis of experience acquir ed in Irrigation Areas of similar character, have been ascertain ed as a percentage of the respective construction costs.
The percentages relative to the main works and those relative to the minor networks should be different, since the former include the Flood Protection Dykes whose maintenance cost as a percentage will be lower than that of canals, drains and roads.- 87 -
- 88 -
Il is, moreover, envisaged that the costs of maintenance will de crease during the first five years of operation in order to take into account the inevitable drawbacks which generally occur when the works arc first put into service.
The maintenance costs arc listed, in percentages in Table 12.
T.blt 12
MAINTENANCE COSTS (I)
Year of
Operation
Main Works
Settlement Zone
Minor Network*
Commercial Farms
Minor Network*
let
2nd
Jrd
4th
5th
6th
7 th
•th
4. 0
J. 5
J. 0
2. 5
2. 0
1.5
1.5
1.5
6. 0
50
4. 0
5. 0
2. 0
2. 0
2. 0
2. 0
5. 0
9. 0
4. 0
J. 0
2. 0
2. 0
2.0
2.0
Maintenance of the Main Works to  be assigned from time to  time to  contractors,  under the supervision of the AVA Branch, including calling and awarding of bids.
Check compliance with technical aspects of the Contrac
tual commitments entered into by the Commercial Farms
and the Settlement Management.
i i) Adm ini ^t£^tiy_c_Duti_e£
- Check compliance with the contractual commitments
entered into by the Commercial Farms and the Settle
ment Management;
Administrative      control       (accounting       documents)       of       the maintenance work carried out by contractors;
Payment of the contractors and of the personnel on
Project Management;
Administrative control (documents relating  to  payment) of the concession rents and irrigation dues by  the Com
mercial Farms and by the Settlement Management.
(I) Al % of th* construction coat: Excluding coat* of p*raonn*l of reepectiv* m*n*g*m*ata.
b)
7.4.4 
Awash Valley Authority Management
Personnel
The personnel of the AVA Branch may be made up as follows
(see Fig. C):
ON THE PROJECT
i)      T echnic a£ Perso an_el_
a) Functions,
The     functions
1     General     Manager     (at     graduate     senior     engineer     level
(E)
envisaged
for
the
AVA
Branch
in
the
ProjectArea
I Deputy Manager (at graduate engineer level) (L)
may be broken down as follows:
i)   T£.chpica^putic_5
- Operation of the Main Works (Diversion Weirs, Main Ca nals, Drains and Flood Protection Dykes) (1);
(1) The management of the Main Canals will also concern the Dis-»25cm trict Canal Intakes, whose gates will be operated and control led by the AVA Water Bailiffs.
1 Agronomist (at graduate agronomist level) (E)
1  Quantity Surveyor (at non-graduate engineer level) 2   Surveyors (at non-graduate engineer level) (E) 2 Surveyors (at non-graduate engineer level) (L)
Note: (E) = Expatriate
(L) = LocalFIG. C
A. V. A. BRANCH
ORGANIZATION CHART
27120
I TA Li Os mi I t- 89 -
ii)       A dmmis^r^atiye’.JJe r^sonnc_l
-     1 Chief Accountant (at senior accountant level (E)
-     2 Assistants (at accountant level) (L) iii)     Subordinate Jejchnicalpe r s onne 1
-     2 Weir masters
8 Weir watchmen
-     3 Head bailiffs
-     12 Bailiffs
(E) (L)
(L)
(2E - IL)
(10E - IL)
3 Roadmen (only for Service                  Road) (L)
1 Mechanic
iv) General personnel
-     2 Typist
1 Storeman
(L)
(IE - 1 L)
(L)
-     2 Drivers
(L)
-     2 Messengers
(L)
-     2 Watchmen
(L)
AT HEADQUANTERS
a) Functions
The    functions    of    the    AVA    General    Management    wLth    regard    to    the Area may be summed up as follows:
i)       Coordination, duties
-     Contacts with the various Ministries, public and private organizations;
-     Contacts with national and international institutions for financing the Project.
Call    for    bids    and    award    of    the    contracts    relating    to    the works to be carried out on itabenalf.
- Contacts with EELPA especially with regard to water re
quirements, the management of the Koka Reservoir and
the returning of the waters to the river bed.
ii)     J£,^_hjiical_dutiej
-    Supervision of the AVA Branch
Supervision on the Settlement Management
-     Control of the discharges returned to the river bed by the
EELPA hydroelectric plants.
-     Collection, coordination and processing of the hydrologic
al and climatological data
Collection,      coordination      and      processing      of      the      statistical data connected with the Project.
iii)    Administ£ative_duHe8
-     Supervision of the AVA Branch.
-     Supervision of Settlement Management.
b) Personnel
Since the duties involved are similar to the much more extensive
ones which AVA has already fulfilled, and which it will have
to fulfil as other Areas arc reclaimed, a specific staffing sched
ule for the General Management personnel for the Melka Sadi -
Amibara area has not been drawn up. Such staffing schedule de
pends also on agreements now under negotiation between AVA and
the UN Development Program.
c)      Personnel Costs
It    is    estimated    that    the    expatriate    personnel    can    be    replaced    by local personnel in three years' time.- 91 -
- 92 -
The cost of staff in AVA Headquarters Office, bearing in mind
Foreign personnel is assumed to remain on the Project for at least
that, at least for a certain number of years, the Study Area will
3 years, and to be replaced later by local personnel. As to the avai-
by the only Area in service, has been estimated as equal to 40%
of the cost of the staff of the AVA Field Management.
With the type of organization proposed it is estimated that the
ability of personnel the problems are mainly at the Director Engi neers and chief bailiff levels, for which the considerations advanced
present managerial level personnel will be sufficient also to take
in the previous paragraph are also valid.
The duties entrusted to them will be:
care of the new duties. On the other hand, more non-graduate
level and lower level personnel will be required.
Coordination
d)     Other Materials and Sundry
This item includes mainly vehicles for the AVA Branch (6 four- wheel drive vehicles, 2 35-ton trucks); for the Settlement Man agement (10 four-wheel drive vehicles, 2 35-ton trucks); for each Commercial Farm (2 four-wheel drive vehicles); workshop tooling for theAVABranch and other minor items. For vehicles, both investment and running costs have been considered, includ ing renewal needs on an annual pro-rata basis.
7. 4. 5                Settlement Management
For the technical side, the following personnel needs arc foreseen: Expatriate
Director (1)
Deputy Director (l) Engineers (high-school leavers) (2) Chief Water bailiffs (3)
Water bailiffs (30)
Road personnel (10)
Drivers (2)
Local
Contacts with the local Division of AVA regarding the irrigation water requirements and delivery at the intake of the District Ca
nals.
Tcchnica 1
Operation and maintenance of the District Canals, Drains and
Roads.
Operation will be effected directly by the Management using its own personnel, whereas maintenance (routine and periodic) could be contracted out from time to time, under the supervision of Management personnel.
7.4.6                    Management of Commercial Farms
The basic personnel structure has already been given in Vol. 6.
For a typical farm of 1,000 ha, adopting Cropping Pattern A, we ob
tain:
2
Entrepreneur/Manager (E) Assistants (including junicx- agronomists)
Accountant
Stores Officer
Driver-mechanic
1
4
l
j
193 -
Watchmen
Water Bailiffs
Othe r » 
2
8
8
If,    however,    Cropping    Pattern    B    or    C    is    adopted,    the    following    must be added to the above:
Tobacco Plant Manager
Assistants
Watchmen
1
3
2- 94 -
- 95 -
8 * ECONOMIC and financial evaluation
c)          Investment and running costs of certain processing plants, in par ticular vegetable conditioning, which will be handled by private en
terprise, and the addition of which to the Project, as well as the
8. 1 INTRODUCTION
The Project as defined above has been subjected to two distinct tests, one designed to assess its economic merits, the other designed to evaluate its financial position and the implication for the Awash Valley Authority, the Central Government and possible financing agencies.
8. 2 ECONOMIC EVALUATION
Given the non correspondence between certain real economic phenomena and their current market values (e. g. for the cost of labor), as discussed in Part. II, Vol. 6, an assessment of the validity of the Project muststart with an economic evaluation, independent from a financial assessment.
The evaluation has been carried out on the basis of the internal rate of re turn of the Project in its main alternatives. The previous chapters of this volume have indicated the cost structure of the Project. These coBts - cap ital and current - after a few manipulations, are the costs needed for the calculation of the rate of return. The manipulations introduced refer main ly to the cost of labor in cultivation costs which, for the economic excercise, have been taken at their real values. Of course, no allowance for taxes or for water rates is included anywhere in the list of costs, as the purpose oi the analysis is that of showing the profitability of the scheme for the econo my as a whole.
A number of smaller items have not been included in the calculation of costs, either because they are not sufficiently firmed up, or because their
actual realization is not directly dependent on the Project. These are:
addition of its benefits to the Project’s, may well distort the eco nomic evaluation of irrigation.
d)
Possible usage of land marginal to the Project Area itself (river
loops for forestry, pasture onAleidegl Plains, etc. ) has also been
excluded, because of its uncertainty as to costs and results and be cause of its limited linkage to irrigation.
Benefits are based on yield and price assumptions indicated in Vol. 6,
Part II. The time phasing of benefits is based on the implementation of cultivation. . referred to above (para.Z, 3.4). An important new assumpticn
is a more even time distribution of crop yields. Such distribution is es
sentially arbitrary, as in a modern agricultural environment yield in
creases are strictly linked with the technical level used in cultivation
practices,and in the framework of the present study the assumed technical level should immediately assure the yields assumed. However, for the usual pru -
dence in assumption, and to take account of the fact that at least some
of the future commercial farmers may need time to get accustomed to
the new techniques, the following time distribution of yields (in ql per
ha) has been taken:
Years of Cultivation
1-5
6-10
11-15          16-20
Tobacco
14
16
16. 5         17. 5
Groundnuts
18
22
24             26
Maize
28
32
36             44
Cotton
15
17
21              23
V egetablea
280
320
360           400
a)
Salvage values have not been considered as their calculation is high ly theoretical and because they have little or no influence on the
The distribution has been used for calculating Project benefits
Tables    13-18    illustrate    in    detail    the    costs    and    benefits    relating    to    all    the possible alternatives of the Project.
rate of return.
b)
Running costs of family plots in the Settlement Scheme, which de pend on the activity that will be carried out (e. g. vegetables vs.
small stock), and which it is difficult to foresee at present.-M•
IlWdUJ
CO1T9 ano PENirrTs nrvtbnrMCNT nr commcrciai. m>«j - chopping pattcmn a
*J Oitrin, M>< «nd 6*14 (1M|| *»4 4>><n
'I W» K^mua
aliawt* |  ika
n
ra*4».
ot Con”’>>H«l
«1
°«*dag^taM
iIm/Hj,
gnMiing,
l«*«Unf,
HmI
4««lg"
•   1*   «><   dlr»*l   work   <••'•
•I «
*a»U ,
f
•■fl
“•»«*. fl,<.costs ano benefits: development »r commercial farms cropping pattern "B"
1*1 tMatn«t. Uli and fl. Id canal a and dram. laaaar raada
I’l Ns sufwrviaie. work a all Mad ia ilx caaa ol Cowmar. lai O'"" '«! Hasrtaj.araaa claaHag.grahMng, lavtlinf ft"'
•»>                slur a. allied*.
" Z* “*
w ",k r“*'*
lf
Muhin, flirt.—
COSTS AND BENEFITS DEVELOPMENT BY CUMMER.LAL FARMS - CHOPPING PATTERN C'
Tabla l>
M 1*» i«R«rrt.iaA M -ck, *|1„.4 <n lb„ 
oiOmm.r.i.l (brn>».
■0 Clearing, •!«■« rioting. grabbing. l«valln|, «>nal daalgn - K at dleerl
CMU.
••> Hoalnj,
•<1 Mk.hllteQ.^
cfn„,COST! AND •t’ltHTV D£VTUarwrMT BT COMMTBClAt. MIMS *MO BT MCTTtXMXMT »O«« , CBOPPtW PATTCJIW '**
**“ 
of warka allawaB la O>a c»»a al O.m'a.r.lal hm",
'<1 CUarfaf. . tlaanaj.   >M>ln|. la.alinf. fiaal 4e«l|» • i*
gn
-•#»*
la)
lUn<, ofru.a.
*0 Mathlaa fl
aal.T«U« 1?
•) M»ln IrrtfitioB a*4 drainaga work*. mam road a
DalrUI, nnl, an4 QaM cau|. an(|
|«aaa> road
|r| N. r.^rHalun of work* allovad In the ma ol CommafaHl Jkrma
'*1 ««M- a'aoa claarmg, grubbing. lavallng. final dealgai - 2% ot daracl work co«‘a.
a
•! Hailing.
a ataJa>
i        ntficca.
10 Uaitana Q,at* H » 1 i J i « i i i • n t t J i * ’ M i U U M r i' i 1 1 H • i
,
.... 102 .
1GJ .
The altemalivpi
• re
r«.ult from the *n»l ... carried  „t in Part n.
y
o
And
I           D.v«lopm.„t of th. proJec| Ar„ by eonimerclal farm>
W.th.n th., basic choice, the three Cropping Pattern. (A, B and
C) dlu.tr.ted Vol. 6 have been awe.eed Cropping Pattern A
>• cotton-ba.ed during the initial 10 year.; later, a certain amour!
or tobacco cultivation .. allowed for Cropping Pattern B i. e..en-
t.ally tobacco-ba.ed. Cropping Pattern C include, both tobaccoand
cotton from the beginning of cultivation.
Development of the Project by Commercial Farms and by the Set
tlement Scheme - the latter occupying nearly 30% of the total net
arable area of the Project. Thia alternative responds to the de
sires of the Government and of AVA, Within it. Commercial
Farms arc allowed to use either Cropping Pattern A. or Cropping
Pattern B. or Cropping Pattern C. For the Settlement Scheme, a
special cropping pattern has been used (see Vols. 5 and 7).
Although the Government desire to arc a Settlement Scheme implement
ed docs define the Project, it soon became apparent Io the Consultants
that the policy decision on including a settlement scheme made the Proj -
ect economically inferior to development by Commercial Farms only.
Such comparison, of course, would only be valid if two conditions were
respected:
a)          lhat there existed in fact commercial farmers willing to invest in
the Project Area, and
b)          that it would be possible to assure the safely of commercial farm
ing, by providing compensation, adequate in the eyes of the popu
lations now occupying the Project Area.
Both     condition,     can     in     fact     be     rejected,     and     the     comp.ri.on     ..     there- fore valid.
Furthermore,     it     al.o     became     .oun     apparent     th.l     the     main     rea.on     for     the /     •       » 
economic inferiority of the Sclticmcm o 
one of maximising the Project's return.but <4 utilising it a# A vehicle (or
social progress. »he judgment on it must be referred to jts alternative
t   -  e   d rmeves oflop ommeinttte bdy C retomurnms, of erc iial ts F socarimala -  pu irnp or osed. Aer tnnd e sval  u< nuat ceos tth seh couoatld, i, n
obviously, be borne rather by the Central G"Vfff»'rent than by tn» Proj
ect itself.
Thus,    the    true    measure    of    the    Project’s    economic    tetorn    *«    given    by    !>»• first alternative mentioned above.
The    following    summary    table    shows    the    rates    of    return    of    tr.e    different alternative s
Internal Rat«- ! R«-; ,rr
I. Development by Commercial Farms
14 4
16. 7
15. 5
Settlement Scheme lay in its special need for
techntcal a....lance, tn .1. nee
. . . 
. 
__  .. epi in its need for a less intensive cropping pattern
and in its heavier investment in selllemcm
Ucl liti.. (.chool., hou..ng,
. 
etc. ). As the purpose of the acncm
.rheme - when seen in this light - is not
Cropping     Pattern     A
Cropping     Pattern     B
Cropping Pattern C
Z. Development by Commercial Farms
and Settlement Scheme
Cropping Pattern A
Cropping     Pattern     B
Cropping Pattern C
Only a few comments on these rates appear in order. A* usual, tne ab solute differences among the rates are not very significant. given the approximation In the data used. However, the general level of such rates - in excess of 10% on the worst hypothesis - can be considered as satisfactory, when measured against the common notion of the cost of capital in Ethiopia (around 10%. .u indicated in Vol. 6 above) Fur thermore. the ranking of alternatives is significant, although not unex pected. tobacco is the high-earning crop, and rates increase at the rise of the area cultivated under this crop. It is contorting to notice Lhat even when cotton is the leading crop (A), the rate of return remains at
11. 0
14. 0
14 7a satisfactory level, Between the two development hypotheses, the ranking is also s  nificant, and shows the inferiority of the Settlement
Scheme.
lg
For better highlighting thia aspect. it is interesting to isolate, from alternative Z, the rates of return applicable to the Settlement Scheme. This is not as simple a task as it may appear, due to the character of joint process the Project has: an allocation of common works would be imperative. If common works are allocated in proportion to the area occupied respectively by Commercial Farms and by the Settlement Scheme, a simple weighted average permits to unscramble the lat ter’s rate of return, but the result is that the Settlement Scheme has
a return differentiated according to the cropping pattern by Commer cial Farms. Thus:
Settlement Scheme
Cropping Patter A
Internal Rate of Return
(%)
2.4
Cropping Pattern B                                                                                     7.                 1
Cropping Pattern C
12. 7
This is, of course, an unsatisfactory measure, but is still indicative,
as the true rate of return of the Settlement Scheme must be clearly
less than or equal to that shown under Cropping Pattern A above which
is , for Commercial Farms, the more similar to the cropping pattern
selected for the Settlement Scheme. Rates of return under B and C
partake of the higher benefits occurring to Commercial Farms under
the more profitable crops implied therein. A more accurate measure
would, of course, be one wherein the entire Project Area is destined
to a Settlement Scheme, calculating costs and benefits accordingly.
This is not a feasible exercise, however, as the growth in size of the
scheme calls forth problems the solution of which implies changes in
costs that are certainly not proportional to the area considered. In
any case, the exercise would be futile, as the above rate of return
(2.4%) is clearly significant.
Rate,    of    return    are    applied    to    the    Project    Area    a.    a    whole:    the    area occupied    by    the    Research    Institute    has    been    cons.dered    as    run    by    a
commercial farming establishment.
These     rates     are     exclusive     of     all     indirect     benefits.     The     main     categories of such benefits arc:
a)         Agriculture: (i) expansion of the techniques used in the Area, to other area in the Awash basin; (ii) creation of a market point for agricultural produce to which can participate other irrigated fa n n s in the basin; (iii) creation of a large local market, which will de pend for its consumption on sales from both other irrigated farms and traditional agriculture.
b)         The Economy: (i) expansion of employment, directly provided by the Area; (ii) expansion of employment in activities serving the Area (construction, services, etc. ); (iii) creation of a reinvest- ible surplus; (iv) creation of a body of skills in a size unknown now in the country; (v) substantial contribution to the balance of payments as the main crop - tobacco - is for the export market, and the other leading crop - cotton - is in a position to competi tively substitute imports.
There is little need to quantify such benefits, as they depend not only on the Project, but on the ability of the sector and of the economy to utilize them. They should be mentioned, however, in order to indi cate the nature of the rate of return: a measure which can be consid ered as the minimum profitability indicator.
8.   3 FINANCIAL ASPECTS
8. 3. I Introduction
In this section, the accounts of a Commercial Far m of 1,000 ha (net cropped area) will be presented. The purpose is that of determining a feasible level of water rates, in lines with the payment capacity of commercial farming in the Project Area. The accounts of the Settle ment Scheme are then illustrated. Both accounts arc needed in order to build the financial picture of the AVA body in charge of the Project107
« 
P
o              ‘S necesBary in °rder to determine the mode of
financing      the      Project,      the      divi.ion      of      responsibility      among      benefi- ctar.es of possible loans, the financial feasibility of the Project
8. 3. 2 Accounts for a Commercial Farm (l, OOQ ha)
a)         G£neral_
Rather than examining the actual size of the proposed farms in the Project Area - a size which is still to be firmed up by AVA and which may well be subject to change before the Project is implemented - it was considered a safer procedure LhaL of build ing financial projections for a farm of 1, 000 ha net. This is a representative farm size in the Area, and can be used as the ba sic financial parameter, which can later be adapted by AVA if
it will need to subject future farms to further financial analyse^ Table 19 shows the income statement of the Commercial Farm, over the life time of the Project, before payment of waler rates.
b)         Re ven u e_ and_ Farm_ E xpen£e_s__
On the revenue side, the account is based on Cropping Pattern C, rather than on the more profitable Cropping Pattern A, for reasons both of prudence and of flexibility. The period of im plementation is four years: this is also a prudent estimate, as
it was already commented above. Two years of cultivation un der Cropping Pattern A have been allowed for, to take account of the soil survey indications (i. c. that natural fertility should be decreased before planting tobacco, mainly in order to reduce the nicotine content). Yields and prices are those quoted in the agronomic and market studies of this Report and Table 20 shows the details.
Tables? 1-24 give monthly and yearly progressions of revenues and operat.cn costs for farms of 600 and 1.000 ha They show the progressive increase in revenues over the implementatron period, as well as farm expenses. These are shown sepa rately, for cultivation costs (labor and input.) and general ex penses. The former include labor costs calculated at market
rates", and are increased, in Table 19, at the assumed rate of growth of the wage rate (see Part H, Vol. 6). The latter arc those already illustrated above (para. 8.2), also increased tluwgh time as mentioned. (These tables have also been used for the calculation of working capital changes, on which more will be said below.
c)
Tabic 25 shows the investment and renewals schedule for the Commercial Far m over the lifetime of the Project. It is assum ed that the farm will be responsible for the irrigation, drainage and road network, down from district canals. Land reclamation works (mainly leveling), structure for lodging and processing plants arc also part of the farm investment. The machine fleet has been calculated on the basis of the machine diagrams illus trated in Part II, Vol. 5. Il should be noted that, outside Lhe machine fleet, renewals are included only for the mechanical part of the tobacco curing plants (e. g. burners). All other works are to last throughout the lifetime of the Project, if properly maintained. Maintenance has also been calculated, at the same rates already applied to the calculation of rates of return. Ta ble 19 shows lhe need for equipment replacement and for main tenance through lime.
d)
Apart from short-term loans mentioned below-, this item in cludes long and medium-term loans. Long-term loans have been assumed to cover 50% of all investment (excluding renew als) except for machines and implements, at an interest rate of 9%, a total length of 10 years and a grace period of 3 years. With the exception of the rate of interest, these arc the terms applied by the Development Bank (DBE). In the way of interest, DBE charges 7% per annum at present. This is clearly a sub-* sidized rate, and discussions are now under way for raising it Assuming that the present high level in interest rates through^ out the world is not a passing feature, it was felt more prudent to raise the rate to 90%. Even this rate, on the other handU      |M
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*1 •'■•I- 10'’ -
COMMERCIAL FARM OF 1,000 HA (NET CROPPED AREA) - GROSS SALEABLE OUTPUT - CROPPING PATTERN "C"
(in Eth.S)
T obacco
Groundnuts
Maize
Cotton
Years
ha
Yiel4/ha
(ql)
T otal
Yield
(qi)
Pricq/ql
(Eth.S)
Gross Output (Eth.S)
ha
Yiel^ha
(ql)
Total
Yield
(qi)
Pric^ql
(Eth.S)
Gross
Output
(Eth.S)
ha
Yiekl/ha
(ql)
Total
Yield
(qi)
Pricq/ql (Eth.S)
Gross
Output
(Eth.S)
ha
Yiclc^ha
(qi)
Total
Yield
(ql)
Pric t/ql
(Eth.S)
Gross
Output
(Eth.S)
1-5
6-10
11-15
15 onwards
600
600
900
900
14.00
1 6. 00
16. 50
1 7. 50
8, 400
9, 600
14. 850
15, 750
130.00
130.00
190.00
190.00
1,092,000
1,248,000
2,815,000
2,299,250
300
300
150
150
18.00
22. 00
24.00
26.00
5. 400
6, 600
3, 600
3, 900
22.20
22,20
22.20
22.20
119,880 146, 520
79. 920
86. 580
225
225
300
300
28. 00
32. 00
36. 00
44.00
6, 300 7, 200
10. 800 13, 200
13.50
13,50
13. 50
13.50
85. 050
97, 200
145, 800
178,200
300
300
300
300
15.00
I 7. 00
21.00
23. 00
4, 500
5. 100
6. 300
6, 900
54. 00
54. 00
54. 00
54. 00
1,092,000
1,248,000
2,815,000
2,299,250ya,n
——----------
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e»orptna pattkiw^
may be considered low, when compared to the short-term rate
of 8. 5% assumed above. The latter, however, are for "crop"
loans, or loans secured only on future gales. The former is
assumed to be secured by the equity provided by the entrepre
neur. This is a strong assumption, since at present DBE lends
only against collateral, mostly in the form of real estate. This
requirement is also under discussion and may be soon liberal
ized.
Medium-term borrowing has been included for financing the pur
chase of the machine fleet. Suppliers of agricultural machinery
can, in some instances, extend credit for up to three yearsjnxire
frequently loans are for two years, covering 50% of the price of
the machine, and carry an interest rate of 10% per annum. Ta
ble 26 shows the schedule of borrowings and of debt service for
long and medium-term loans.
Borrowing     has     been     assumed     only     for     new     investments.     Renew als are considered to be financed out of internal cash generation.
c) Taxes
Table 27 gives the detail of the calculation for assessing the total tax burden on the farm. AVA concession rates - as im posed at present - have been included. Excluded are water ra tes, which are to be calculated at the end of the financial exer cise. This implies that a feed back is necessary, when water rates are set, so as to properly calculate tax deductions and hence the income tax burden. The difference in the tax is sig nificant. For assessing the income tax burden, it has been as sumed that the benefits of the "Investment Proclamation” No. 242 of 1966 would apply and that, therefore, the farm would en joy an income tax holiday up to the fifth year of cultivation. Two
methods of assessing taxable income are possible:
i) One based on the gross value of saleable output deducting l/3 of all taxes and interest on bank loans.
H) One based on income statements, if books are regularly
kept.- 116 -
117
Tabic 26
COMMERCIAL. FARMS OF 1,000 HA (NET CROPPED AREA)
SCHEDULE OF MEDIUM AND LONG TERM BORROWING AND OF DEBT SEVICE CHARGES
(In thousand Eth. $)
Borrowing
Long T erm
Medium Term
Year a
Total
Long
Term
Medium
T erm
Amorti
zation
Interest
Amorti
zation
Interest
Amorti
zation
Interest
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
I
1984
1985
68
576
576
576
576
37
15
25
10
2
-
-
7
4
4
2
1
i /
-
-
19
26
21
17
6
1
-
-
-
-
-
-
-
-
-
8
80
152
224
297
297
297
297
288
216
144
6
58
110
161
206
192
171
144
118
91
64
38
19
6
72
-
-
19
34
101
169
230
298
297
297
297
288
216
144
72
6
65
114
165
208
193
171
144
118
91
64
38
19
6
It may  perhaps pay  an entrepreneur to  follow method (ii)»  but present practice is based on method (i),  and even the Income Tax  Department appears to  prefer the latter.  In any  case,  it
is   unlikely   that   books   can   be   kept   to   the   satisfaction   of   the   In come Tax Department.
Income Tax rates applied are those of the "Income Tax Amend
ment Proclamation" 1967. They are as follows: 20% on the
first Eth. $ 30, 000 of taxable income, 30% on the next Eth. $
150, 000, and 40% on income exceeding Eth. $ 150, 000. Although
progressivity is mild, the rate (at 40%) is high, particularly
for agriculture, vis-a-vis other countries. The high rate is
compensated - or was caused by - bad reporting and faulty cal
culation of the gross value of output. Such reason cannot, of
course, be included in the present accounts, but should be
borne in mind when reading the table.
f)         PHEF-SS1-?—
In order to arrive at the concept of a financial rate of return,
comparable to that used in enterprises of all kinds and in dif
ferent sectors, depreciation was calculated (Table 19) thus per
mitting the calculation of the farm’s net profit. Straightlinc
depreciation over the life of the asset involved has been used.
It was, therefore, possible to calculate net fixed assets in op
eration.
g)        Rate i          B
The rate of net profit (adjusted to take account of depreciation
vs.renewals) on net fixed assetB in operation is shown in Table
19. Rates appear very satisfactory.
h)         Cash_Flow
A    statement    on    sources    and    allocation    of    funds    has    been    prepar ed (Table 28). The data derive from those of the income state
ment.    The    only    peculiar    feature    is    the    line    showing    working    cap ital changes. These have been calculated on the basis of Tables
1986
--118-
Table 27
COMMERCIAL FARM OF 1, 000 HA (NET CROPPED AREA) - TAXES AND TAXABLE INCOME
(in Eth. $)
Year b
D efl c r ipti on^
1974
1975
1976
1977
1978
1979
1980
1981
1982
198 3
1984
1985
1986
1987
1988
1989-2003
taxes
Health lax        ) Education tax ) AVA concession rates Income tax
Total Taxes
750
5, 000
-
750
15,000
-
750
15,000
-
750
15, 000
-
750
15, 000
-
750
15, 000 549, 870
750
15, 000 560. 750
750
15,000 571,150
750
15, 0OU 581. 950
750
15, ODO 592,750
750
15,000 1,055,722
750
15, 000 1.063, 322
750
15, 000 1, 068, 522
750
15.000 1, 070, 922
750
15, 000 1,070,922
750
15,000 1.155.872
5, 750
15,750
15, 750
15,750
15, 750
565. 620
576.500
586, 900
597, 700
608.500
1,071,472
1.079. 072
1. 084.272
1, 086, 672
1, 086, 672
1,171.622
TAXABLE INCOME
Gross value of output
Less: l/3
Less: Taxes and AVA
Less: Interest on Ion}* term loans
Less: Interest on short term loans
Income
to $ 150, 000
Income
40% on difference
-
£95. 600
98,434
5, 750
58.000
-
611,200
203, 530
15,750
110, 000
2, 400
-
1,065,400 354,778
15,750
161.000
4, 400
-
1. 582, 900 527,106
15, 750 206,000
4, 700
-
1,785, 600
594.605
15, 750
192,000
3, 600
1, 397. 175 2, 375,000
790, 875 15, 750
171, 000
200
51,000 498, 870
1, 424, 375 2, 375, 000
790, 875 15, 750
144,000
-
51, 000 509, 750
1.450, 375 2, 375, 000
790. 875 15,750
1 18, 000
-
51,000 520, 150
1. 477, 375 2. 375, 000
790, 875 15,750
91.000
■
51,000 530, 950
1,504, 375 2, 375, 000
790. 875 15.750
64, 000
2,661,805
4,071.300
1,355.745
15.750
38.000
2, 680, 805
4,071, 300
1, 355. 745
15. 750
19. 000
2. 69 3, 805
4, 071, 300
1, 355, 745
15.750
6, 000
2,699,805
4, 071. 300
1, 355. 745
15.750
2, 699. 805
4.071.300
1.355.745
15,750
2,912,180
4.389.700
1,461,770
15,750
-
51, 000 541,750
-
51.000 1.004,722
-
51.000 1, 012, 322
-
51,000 1,017, 522
-
51,000 1, 019. 922
-
51,000 I,019.922
-
51,000 1,104.872
1__
COMMUCUL FA»M or I.M«HA (HKT riOPMb A»CA| SOUACES AND A rPJJCAT.ON OT FUNMc OWPINC PATTmi* "C" <O
XUIOft- 120 -
121
thaVwoXVca 
actual L Z.U
actual    accumulation    only    up    to    the    third    year    It    is    assumed
SUmmarized « Table 24. This show, *»“>«• are neededupto the fifth year atri
b°vTo ^
by commercial banks on the basis of 180 day. lending at an
V
WOrklng ”P,lal
b ' “=
i)
interest change of 8. 5% per annum, starting with the third
year, decumulation of working capital balances can take place.
The cash flow statement ends with an unusual ratio, relating
the yearly cash surplus to the accumulated equity. After in
vestigations in Ethiopia among commercial farmers, it ap
pears that something akin to this ratio is used as a constant
yardstick to measure the profitability of an undertaking. This
is not a new phenomenon, in an environment where proper
accounting practices are rarely kept and entrepreneurs have a
high valuation of non-commercial risk*. After interviews
with farmers, it appears that a cash,/equity ratio of 20-35%
(i. e. recovering the original risk capital in 3-5 years) is con
sidered satisfactory.
The    latter    ratio    permits    a    judgment    on    the    paying    capacity    for water rates of Commercial Firms. Water rates must be set
at a level that will maintain an incentive to invest in and to ex
ploit the land, but should be high enough to reap all the excess
profit. This form of rate determination, therefore, docs not
take into account principles of marginal cost pricing: on the
contrary, it exploit, the monopol..tic po.llion of the water au-
thority. Marginal co.t pricing. >n fact, cannot be c.Ubli.hcd
in any meaningful sense when:
-     water consumers are few;
-     the project is an isolated effort.
-     the. future of further water con.ummg project. .. highly
uncertain;
-     the use. of available water are not conflicting.
The    Steering    Committee    and    AVA    have    approved    th.,    line    of reasoning.
Table 2? shows how the water rate has been determined. T-he*e is a feedback process involved: an initial cash-equity ratio of 20% has been fixed, to be raised at 35% starting in the 1 I th year cultivation. This yields, by difference, an annual pay able amount which must be’hor malized"(i. e. averaged out). In turn, since water rates are tax deductible, the net impact
on net profits and on cash is less than the full amount of the water rate. Table 29 shows also the new net profit which, starting in 1979, is still very satisfactory. Also shown is the new cash-equity ratio.
Marginally higher rates are always possible. However, a substantially higher rate is, in the opinion of the Consultants, dangerous and may well discourage entrepreneurs from invert ing in the Project Area.
8. 3. 3 Accounts for the Settlement Scheme
a) General^
The accounts for theproposed Settlement Scheme are present ed on the basis of a fractional size (I, 000 ha net). The actual construction of the accounts was based on a hypothesis of about 3, 600 ha under the scheme. The reason for giving the account on a fractional basis is that of permitting AVA in its further deliberation on this subject, to use them as it seems appro priate: it has already been shown ^Zhaptrrd) that the Settle ment Scheme, per sc, is an unprofitable undertaking from an economic point of view and, from the financial angle, it is
oven more so.
b) Income Statement
Table 30 shows the income statement for the fractional size throughout the lifetime of the Project.
Gross revenues have been calculated on the basis of the crop ping pattern already discussed as feasible for Settlement Sche me conditions (cotton-based). Farm expenses arc based on123
COMMERCIAL FARMS VATER RATE <*■
PETER MIX ATI ON
rt% |i
cultivation costs for 9uch a cropping pattern. General ex
penses are the same as those shown in para. 8.2 above, and
include personnel salaries for both technical, managerial and
technical assistance functions. A line shows also the payments
on account of family allowance, as these exceed at all times
the labor costs included in farm expenses.
During the initial 10 years of cultivation, a certain amount of
seasonal labor is required to supplement the deficient work
ing capacity of the settlers (particularly of the Afar settlers).
Such payments are considered as to be substracted from the
total income paid to farmers.
No interest payment has been allowed for. This implies that
the scheme's investment needs are totally taken care of by eq
uity contributions from the Government, directly or through
AVA. This was only an initial assumption, which would have
been relaxed later on. if the financial picture warranted it.
It was nut relaxed, however, in view of the dite financial
stringencies in which the Settlement Scheme would fall. Also
for this reason, no income tax is assumed to be levied on the
scheme.
The Settlement Scheme's investment schedule is shown in Ta ble .11. Investment in machinery is based on the machine
fleet work diagrams given in Part II. Vol. 5. Table 32
indicates the requirements of a 1.600 ha Settlement Scheme. Depreciation (straightline basis) has also been calculated.
There is. however, little need to calculate a rate of return,
as the scheme shows a negative net income and net profit,
before payment of water rates. with equity financing of all
tn eminent throughout the life of the
In those conditions, the scheme should obviously he Subsidiz
ed. b’or the calculation of the subsidy, and for observing the
cash position of the scheme. a cash flow statement has been
provided.1
1- 126
- 125 -
TabU »l
SETTLEMENT SCHEME - INVESTMENTS
(1,000 ba pannwhr, thousand Eth.*)
Table 32
Year
Canale
etc.
Land
Reclama
tion
Vorhe
Land
Settle
ment
Works
Plough
and
Planter
Harrow er
Ditcher
•«c.
Land
Leveler
Tractor
Land
Rovere,
etc.
Total
im
19?2
1973
1974
1975
197*
1977
1976
197?
1910
1911
19*2
1911
19*4
19*5 •
19*6
19*7
19*1
1919
1990
1991
1992
199)
1994
1995
199*
1997
199*
1999
2000
2001
2002
200)
60
3)2
-
199
1,11*
*
12
156
15*
15*
156
•
SETTLEMENT SCHEME: INVESTMENT COSTS LN MACHINERY AND IMPLEMENTS
(3, 600 ha)
411
411
in
431
-
2
2
2
2
2
2
2
2
-
2
2
2
2
-
2
2
2
2
-
2
2
2
2
2
2
2
2
9
9
9
9
9
9
9
-
9
9
9
9
-
9
9
9
9
-
9
9
9
9
-
9
9
9
9
2
2
2
-
2
-
32
32
12
52
12
32
32
32
12
32
32
32
32
32
32
32
•
32
52
12
12
•
32
32
32
12
16
a
•
8
16
B
R
B
1*
*
a
8
1*
8
B
a
l*
B
a
a
*0
344
5B7
B47
1,754
*38
91
43
59
91
53
a
43
43
59
51
fl
53
43
4)
59
B
51
51
43
45
1*
51
51
51
Type of Machine
and Implement
Ha per
Machine
Machine
Retail
Price
(Eth. $ )
Fleet
Require me nt
Total
Cost
(thousand
Eth. $ )
T ractor
Plough
Harrow
Furrower
Ditcher
Land leveler
T railer
Drill
Cultivator
Digger shaker
98
238
556
666
3, 333
769
149
588
147
526
12,500
1, 550
1, 550
1,050
730
1, 100
3, 000
1, 600
1, 050
1, 000
37
16
7
6
1
5
25
7
25
7
463
25
1 1
6
1
6
75
11
26
7
—. ijj -
c) Cash Flow
Table JJ Eire* th<- -------------------
•chyttw.     based     on     the     nboo?     tr-
*rs     the     negative     het
deri
m»nl.
-y.        . 
Th. Hemen. of „b jdy iB caJtoUud „ ,
* nd aPPUc*tion of fuMt OT> lhe account. Shown under "losses'’
' profits' —’■•*v*d from the income state*
.
Him. The account shows no _______________ __
Thereafter,      a      <a»h      surplus      is      formed, rary. Subsidies can be dl.countinued’
4)          C one iu ■: on p
---------
c **h •^cumulation until 1988.
although only  tempo  -
starting in 1988.
The     accounts     give     a     hopeless     financial     picture     for     the     Settle ment Scheme. The reasons are many:
a lower gross revenue than for Commercial Farms, due to
a leas profitable Cropping Pattern. The choice of Crop
ping Patterns had been made, taking intn account the Soci
ological r«~quirem<*nts of the scheme.
-     a high coat of personnel, duo to the heavy technical assist*
ance effort needed in order to make the scheme technical
ly viable;
-        a    somewhat    higher    investment    cost,    due    to    the    social    and education :nf ra st rue tur© s needed;
a    higher    labor    coat,    duo    to    the    minimum    family    income    as- su mption.
In the.. condition., lhe »ch.rnr would not .ppe.r nn.nd.lly v.ble. Under .lightly different .nd more orthodox ...un.p- non. (no charge for depreci.Uon or .mor. ..non, £'«• for inlore.l payment, on the .cheme mve.tment). the lo.. may re.ult m.^maBy lower, but no re.! g.in. would be ob-
lamed.
- b..1£
e^^^eun; vi.hu: th... .ndicted .r., .» lh. op.n.on of
the Consultants, minimum conditions for bavin* a Settle nt Scheme at alt. Thus, only a policy d-cislo* aS a Gov»mrtwnta• level can disentangle the scheme’* difEculti**. *C should be borne in mind that the financing assumptions included ifi the above accounts are extremely generous, from the po«nt of
view of Government standard practices, and She h /p^tbe«»*
a continuing subsidy is probably inctw*istont *ith present Got* ernment policies.
If it was decided to initiate the scheme, then the financial pi - Cure shown above leads to a conclusion which has a bearing on the character of the scheme itself: as it can never •Janrf
on its own financial rosults, the scheme shall always remain a Government "directed” enterprise, without much autonomy. In other words, the scheme is unlikely to create a Mfntar of independent small farmers, Such a conclusion, of course, begs th© question i>fwhe*h©r th© scheme is warranted aS all.
8. l, I The Financial Position of th© AVA Branch in the Project Area
a)
£?•£•£ *L.
Two basic accounts ar© presented in the following pages. The
first refers to a development of th© Project Area as desired
by the Government and AVA; that is. commerce! farming
together with a sixeable Settlement Scheme, The second ac count rofers to development by Commercial hrm« cmly. The
accounts are tailored around a new administralive body with
financial personality, which would supervise the Project Ar
ea development and would control and maintain ttw mai nwcrkx
b)        C o m rno rej • ^Farrns_andJta It tame n£ Sche me
The basic hypotheses used to build th© income statement ar.d
the cash flow statement are the same as those used Ur the
construction of the accounts for the typical Commercial ftrm
and for the Settlement Scheme. It should be noted that the en tire area of the Project has been considered: thereby taking121
SOfRCES AND SETTLEMENT SCHEME APPLICATION OF FUNDS (1.300 ha paraineler.lkaurattd Eth_ $)
Table 13
perrripnoa
IW1
1979
1979
197b 1977 1978
--
1979
19*2
1981
1904
1905
1906
1911
1909           1990
1991            1992
1991
1996
r
1995
1996
1997
1996
1999
2000
2001
2002
2001
—
Merter
1.097
J2
1.059
31
2,013
-•9
1,001
.'31
916
JJ»
22* u. >16
JM JJI 331 J_10
116
J21
>27
‘JI
200
JJ«
JS£
JJI
11!          !£•          197
JU A. JJZ
—
206
M0
_l30
J IP
JJO
1 10
J JO
. N«t lerante
prpreclaliaa )«»•
rrplM«n<atll(l 1
| jaStrflM 12)
, Merly
29
11
91
991
44
1 68
09 7
00
199
I. 751
199
219
618
1 Ml                101             138             122
t >0            129
17»            13.                1)8            122                 lift             I7J
70
128
264
126
1 18
264
269            M2
126            110
138           122
J2£
314_
161
173
111            in
J6l_ _lbl_
31                 >1
110 130
IT7 122 ill
J77             173            IJl 19              37              66
118 116 166
-
110
130
-
HO
186
JJi
9
101
U£
JJf
5
1 81
106 197 121 111 1*6 18*
51
IM               62
14
96
.*
■
I A ppi it uias
| biutmentt
LA46«S
I
1.09?
996
106
£J»L1
1.7*4
279
Luflfii
616
161
U±               HE          m                  *5<-               Hi           Hl 51                -
167                 370             259             2M                 316            116
JU            200              111                            JU
w
12
uU
11
127           200               4 52           IbN              168          199
12
12
11 12
99 99
12              «             99
99
176
176
176
176
176
-
697
212
50
12              12
17b
176
176
176
17b
ark « tegicaang af ye- r
I Cub turplui
Lark n red Ef year
L------------------------------------------------
■
I#
..
«•
■■
IM,
204
201
252
956
956 790
252 .'20
708 92 0
■ 22
1.250
1.250            1.312 ft.1                          62
1.312 1.374
1.371        1. 152         1.526 70              74            112
1.952 1.526 1.650
1.650
46
1.604
I 604
-16
l,55i
1.550
■ 46
1.512
1.512
10
1.522
1.5”
lo
1.532
L_____ .
_______
________
____ J
—
J
HI Artirmiaialad depreciation far I hr: year* 1971-1971.
(I) -ttuluo are d.., oniinu.4 after 19h? and lt.aees art thereafter iinan."d »•*' •» internal •the land occupied by the Respirrk t
ject to commercial farming. Thi^ Mmnlir 18 “ "Ub'
sed and agreed to by the Steering ro P • lCaUon “ dl9cU8_ theoretical bias to the following accoTm, 
AVA L7n7hon                                         34
AVA Branch on account of water charges, concession rate.
' S^8 ’
the
»f
Government contribution to cover subsidies needed by the Settlement Scheme, and the cash surpluses obtained in later years by the Settlement Scheme. Investments, in this case, include both main works and all other investments for the Settlement Scheme. Maintenance and depreciation charges,
on the other hand, cover only main works, as these charges
for the Settlement Scheme's own investments were included
in the accounts of the latter. Personnel and administration costs have been shown elsewhere (see para. 8.2).
The    financing assumptions are as follows:
i) The foreign exchange component of total investment (see Table 35) is financed by a loan from an international fi nancing agency at 6. 5% interest, 30 years of life of which 7 years of grace. Interest during construction is capit alized .
ii)       The foreign exchange component of three years of per- sonnel expenditures at AVA branch headquarters and at the Settlement Scheme head office is also financed by a loan
having the same characteristics as (i) above, except that
grace is 5 years, and interest is not capitalized. On both
(i) and (ii) above, a commitment charge on the und.sburs -
- 131 -
Net profit, after adjustment for depreciation, is heavily negative until 1984, or 1 0 years from the start of cultiva-, tion. The rate of return, in that year, works out at 11.6r/k In the same year, there appears the first cash surplus . However, the accumulated cash position is positive only starting in 1991.
c)         Comn^rcia^Farrns_Qnl^
The major differences with the previous accounts are in the calculation of gross revenues, which in this case in clude only water charges and concession rates; investment which only includes main works, as all other works are the responsibility of Commercial Farms; subsidie s to the Set tlement Scheme, which do not appear; and - on the financ ing side - no international financing of technical assistance expenditures (see Tables 38-40). Net profit is negative -
as in the previous case - up to 1984, although at a consid erably reduced level. Thereafter, it is positive and about double the level of the previous account. In 1984, the rate of return works out at 19- 6%. The first cash surplus also appears in that year, and cash accumulation becomes posi tive in 1987 (as against 1991 for the previous case).
d) Conclusions
Both schemes have a long period in which they will have to depend on outside help, in addition to what is already taken into account in the calculations themselves. There arc, however, important differences between the two, Lhat can be outlined as follows:
cd balance of the loans has been applied (0.75%). Inter
est and amortization payment, are annual and their annu
al sum is not equal throughout the life of the loans.
Commercial Farms
Commercial
and Settlement Scheme
Farms Only
(in thou sands of  Eth..$)
iii)     A11
 other --atment requirements are
.
Cash deficits
15,257
13,919
equity contribution by 
although it
 could be
Subsidie s
9,255
ment on this has been c
taken into account toward the
oint of the life of the
P
Equity
20. 326
10. 601
Project.
Total Government
Contribution
44,838
24,520I>i -
AVA BRANCH - INCOME STATEMENT COMMERCIAL FARMS AND SETTLEMENT SCHEME
Tablo M
•• Imlvd.ag np*?*i>af cenia of vehirloo,
-I EvtlMlng deyrarkation already eounted WtlM S»'ll«meM Srbomo. A4,-»atM net »■ traaa before lAMrent on BOt fined
in uperMlun133 -
114
Table. 36.
A V* BRANCH - COMMERCIAL FARMS AND SETTLEMENT SCHEME DEVr
investment SCHEDULE
(thousand F.lh $)
AV A BRANCH - COMMERCIAL FARMS AND SETTLEMENT SCHEME DEVELOPMENT
GROSS REVENUES
(thousand Eth. $)
Year
Water
Charges
Cash
from
Settlement
Government Contribution
for
Subsidies
to
Settlement
Scheme
AVA
Concession
Rates
Total
Settlement Scheme
Year
Main
Works
Other
Irrigation
Works
Land
Reclamation
Works
Land
Settlement
Works
Agricultural
Machinery
Total
2
14
68
34
a) Total Investment
1971
1972
1973
1974
1975
1976
1977
Total
b) Foreign Exchange
Component
1. 362
9. 072
10. 368
9. 600
7. 434
-
239
1.280
-
768
4. 306
•
-
287
604
604
604
604
-
-
-
60
1. 663
1. 663
1.663
i. 663
-
-
169
169
169
169
I. 601
10. 639
11.032
12. 804
1 4. 1 76
2.4)6
1. 832
1971
1972
1973
1974
1975
1976
1977
1. 362
6. 552
7. 488
6. 670
5. 163
23 9
920
530
2. 975
47
393
393
393
393
169
169
169
169
I. 601
7. 472
7. 535
7. 762
8. 700
562
562
34. 194
1 Total
1971
1972
1973
1974
1975
1976
1977
1978
1979
I9BC
1981
1982
1983
1984
1985
1986
1987
19«8
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
IJ
64
54.520
4.1
63
359
648
768
826
718
760
467
509
718
72 6
594
2 39
54
178
147
185
602
972
972
849
1.242
239
2 39
301
262
38
38
14
68
563
852
972
1. 030
922
2, 228
1,935
1,977
2. 186
2, 194
2, 062
5, 306
5, 121
5, 245
5, 214
5, 252
5, 669
6, 039
6. 039
5, 916
6, 3 09
5, 306
5. 306
5. 368
5, 329
5, 067
5, 067
5. 067
5, 067
5. 105
5. 1051H- in
Tabla 39
AVA BRANCH
COMMERCIAL FARMS DEVELOPMENT
Commercial Farms
and Settlement Scheme
Commercial
Farms Only
GROSS REVENUES
(thouaanrl |:th $)
Year
Water Charges
AVA
Concession Rates
Total
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
14
68
1,
766
14
68
204
204
2 04
2 04
204
1,970
External borrowing
Total capital and
current support
Tax collection
(1979-1988)
(in thousands of Eth. $ )
35,886
80, 724
68.901
27, 235
51,755
96, 235
6.
792
6.  »96
This summary has a number of significant implications. The first is the obvious superiority of the second casecKer the first. The total support implied in the first scheme is 56% larger than in the second scheme. Moreover, if tax collection is set against total support, no real support ap pears in the second scheme, while a substantial one is
still apparent in the first scheme.
Even more important is a conclusion that one derives from observing the high tax burden implicit in the second scheme. It is clear, throughout this analysis, that the second scheme would be financially viable almost from the start, if tax collections on Commercial Fhrms were lower and water rates higher, leaving unchanged the farmers assumed prof itability. In other words, there is nothing particularly wrong, financially, with the scheme, except for the dis tribution of residual incomes between AVA branch and the Government. This distribution has a bearing on the finan cial viability of the scheme also in a different direction. While collection of water charges is practically automatic, and effected by a body which is in the field at all times , income tax collection - as experience indicates - is farfrom being as automatic or as efficient. The result could be
that income tax receipts would be lower than indicated in the accounts, while water charges would be as indicated, thus increasing the farmers' profitability.I »* -
AVA RRANtM - 3OURCK3 AN[> APPUCAT1ON OX TUNflS - COMMERC1A1. FA X US BEVF LOF HEN I- 141
These considerations point to
a set of alternative solutions:
9. ALLIED WORKS AND ACTIVITIES
i)
H)
Hi)
that the Government refunds the AVA branch out of
tax receipts all the support it is caller! i
scheme;
P
called to give to the
.
that special tax allowances are given for 15 years - instead Of the 5 years now provided by the law - and that AVA raises water rates correspondingly;
that no change is made, and water rates are increas ed beyond what is assumed in this Report.
The latter course of action is feasible only if AVA finds, through negotiations with future farmers, that they arc in fact willing to invest in the Area at a return lower than that assumed in these pages.
Of course, points (i) through (ni) above are meaningful only for the second scheme. For the first case, only the Government can decide the form in which its support to
the AVA branch should be given.
9. 1                      GENERAL
When in full development, the Project Area will be very densely popu lated. An urbanistic layout of the Area has been provided above. It is based on a total permanent population of slightly more than 50, 000 peo ple. The calculation has been derived from the labor diagrams included in Part II. Vol. 5 for Cropping PatternC. as far as the Commercial Farms are concerned; and on the population of the Settlement Scheme, as illustrated above. Seasonal laborers, shall increase the population
to almost 70. 000 people, in one peak month of the year. These totals
refer only to agricultural manpower of all types. This should be aug mented to include all personnel - and their families - which will serve the agricultural population: profes sionals, shopkeepers, public employees, etc. The center of the Area will be the township of Melka Warar. The population will be distributed among Melka Warar, the 12 Settlement
Scheme villages, and the 7 Commercial Farms.
Between the first and the second case, lay a variety of al ternatives, linked with different sizes for the Settlement
For such a large population in an area hitherto practically empty, it
Scheme. Although the Settlement Scheme, whatever its
will be necessary to plan accurately all the needed amenities. In par ticular, health facilities, schools, public buildings, justice and police
size, does not appear as a financially viable undertaking,
services, road and sewerage networks will have to be set up.
the Project as a whole can include a smaller Settlement
Scheme and appear viable. No attempt is made to inves tigate this possibility from a financial point of view, as
Power     supply     should     also     be     planned     in     cooperation
with
EELPA, 
along
policy decisions are here imperative.
the lines indicated below.
The Project Area shall constitute the center of development also for
other new areas upstream and downstream the Awash River, that are
likely to be started during the next decade.
The planning of the new town will require a determined Government ef fort. The initiative, however, starts at the AVA level. It is this bodv which should immediately interest the Ministries involved (Health ph. cation Public Works etc. ) and set up a coordinating committee that should see to it that plans are drawn up. ministerial budgets aom-onr.^ ed. personnel detached. 
Opriat-- 142 -
- 143 -
Although the above measures are not attributable a;
eC. for a number of them some indicat‘"J
and amount of the measures required. 
HEALTH ORGANIZATION
The health organization, will comprise at least three health centers and a hospital. The health centers should be sited one at the center
of the Area, in the same area where all the other public offices will
be placed, and the other two one in each of the two sides in a more or less equidistant point.
The function of these health centers is the same as that carried out al present by the other health centers spread throughout the Ethiopian territory and which fulfil thc duty of health offices, that is the health control of a given zone (control of schools, barracks, food shops, new buildings, control infectious diseases, vaccinations, etc. ). Besides this function a field ambulance service could also be developed (medic al inspections, injections, treatments, first aid, etc.).
The creation of a hospital is essential to this organization. Initially the hospital should be able to receive 120 bed patients, this number to be increased progressively in relation to the increase in the popula tion, until about 300 beds were made available.
The distribution of the 120 beds should be as follows; 20 bed places {oT isolation of infectious diseases; 50 beds for medical cases including
men, women and children; and the other 50 beds for surgica
(men. women and children) and including a department for
ow  °n thc typc
The     medical     personnel     needed     to     operate     the     hospital     from     tl     '     g ning should be made up (as a minimum) as follows:
Head physician and one medical assistant
Head surgeon and one assistant surgeon
Radiologist and laboratory assistant
Ward sister for each department
A proportionate number of nurses, technicians and staff for the
various services.
With     the     further     extension     of     the     hospital     the     personnel     should     also     be proportionately increased.
Furthermore for the three infirmaries which would be in operation in the Area,  at least three medical assistants and three nurses would be required.
This medical personnel should ensure adequate medical assistance for
all the population residing on centering on the area of the Project in
question lor longer or shorter periods.
For the health organization to  be efficient,  it must not be merely  cura tive,  but also  and partic ularly  .preventive.  For the latter purpose,  two main lines of action should be followed:
a)      community sanitation, and
b)      irrigation control.
a) Community Sanitation
and gynecology. During the subsequent expansion a p   * 
ac
(eves
found for the Vetting up of a number of apeciaHzed depa,rt™M. (eye
1) The establishment of villages and f
farm settlements should be
ear-noee-and-throat. etc. ). The  O.£t.. ^uld
h
B
ur Ly.
g
strictly     controlled     to     ensure     the     best     comm special consideration being given to:
unity environment.
ning all the services ol general inter ( laboratories. X-ray department, kit he ’
L
P d>.infestation, phar-
, he center of the
Planning:
macy, etc. ) and should be situated more o
Area.
to  prevent congestion and to  allow for proper drainage,  and such community street cleaning, refuse collection, etc
open spaces,
works as- 144 -
- 145 -
Location:
to take advantage of the and to allow an open-flpacc munitie. and surface waters;
environment
b «*«n com-
Size:
mun
8t abl
mumty 
i     h hw1? hich    would
mlnimum            Population        for        each        com- mean    the    autonomy    of    its    own
environmental control facilities and service
2) Essential environmental
in every community, as
control facilities should be provided
follows:
Water
Supply:              Adequate      quantities      of      pipe-borne      potable      water for a LI human uses.
Sewerage:          Sanitary     facilities     for     safe     disposal     of     excreta     or sewage.
Drainage:           A    system    of    drains    for    the    prompt    removal    of    all storm water.
Housing:             Houses       of       ample       rapacity,       structural       stability, and all other aspects of healthfulness.
3) Environmental control services should be maintained at all times in every community to carry out at leaBt the following
works:
Feat
Control:
SaniLa r y
Inspection:
The     control     of     such     common     pests     as     rodents, flies, mosquitoes, etc..
Health
Education:
Routine inspections of eating establishments. schools, public places, etc
Verbal environmental health advice
school             children.workers, 
officials,
to householders.
etc.
The urbanistic layout shown in para
ments into account.
.2.3
has taken such require
b) Irrigation Control
It has been suggested that snail control through canal Lining or
piped water distribution ought to be considered as part of the
Project, as a means of chocking bilharzia. It is not however en
tirely clear whether such expensive system could be an effective
control device: even if main and district canals and drains could
be lined, unit canals and especially field ditches and drains could
not be, unless only one crop - and always the same - is cultivated
Since the dangerous parts of a canal and drainage system .are those
where water velocities are lowest, and since these arc precisely
at the unit and field level, not at the main and district levels, it
follows that Lining may not in the end really improve snail con
trol, Care should be taken, on the other hand, in an earthern
canal system to;
allow for a canal velocity in excess of 0.3 m/sec wherever
possible;
exclude areas of water stagnancy;
allow for distance between canals and inhabited areas;
allow for the efficient dewatering or flooding of any section
of the system, or for flow measurement or any other aspect
of water management;
prevent overflowing,  seepage and other effects of uncontrol; include drainage ditches for the removal of runoff and exces irrigation water;
control weeds and other aquatic plants in canals.
These requirements have been taken into account in designing the future canal system in the Project Area, but it is much more im portant to take them, into account in the Final Design and in the implementation phases.
By and large, implementation of the development program will and reduce the incidence and spread of infectious diseas™- 146 -
- 147 -
Another great benefit will stem from the fact that
be  devoted to the cultivation of cotton and other c
tensive pest control. Thus all the Area will nrofiTT W u rcquire in" of a large number of insects, many of which carrv inn?/  ®  ®
°/ thC Ar<?a WiU
11      d    8truction
• y miectious diseases.
The proposed connection with Metehara substation consists of 15 kV line (two three-phase circuits), with steel poles and 3 sq. mm stranded copper conductors.
The above length of 65 km represents:
However it must not be forgotten that the introduction of irrigation
will doubtless increase the amount of bilharzia as has
f
a)
the distance between Metehara substation and the nearest limit of
red in the other two Areas which are now being irrigated by river wa ters (Metehara and Wonji). Nonetheless, it has been shown that the
the Study Area (25 km);
incidence of bilharzia in existing irrigation area, is not so great as to
b)
a further distance of 40 km across the Area.
endanger irrigation and cultural operations.
Along the above mentioned 40 km line three phase branch lines (single
circuit), using 25 sq.mm stranded copper conductors, will be connect
Another negative factor which could ensue from the scheme is that in fectious diseases might more easily be carried into the Area because
ed to feed a certain number of pole mounted substation transformers
of the number of people being brought in from outside.
rated 1 5. 000/220 V.
It has been estimated that in addition to the connection of Melka Warar,
All these facts underline the need for a hospital in the Area.
the total length of the 15 kV branch lines is 32 km and that the number
of pole mounted transformer substations will be: one per village
(20 kVA) in the settlement area and four per village (4 x 40 kVA) in the
farm area.
1.3 ELECTRICAL ENERGY
Single-phase      or      three-phase      L.      V.      lines      will      distribute
power
from
each
With reference to the points made in Part II. Vol. 4 concerning the
various alternative solutions for power supply to the Study Area, it is
substation to private consumers and public lighting installations. The total length of the low voltage lines has been estimated as about
pointed out that the most convenient alternative is that of providing a
300 km including connection for each village in the Settlements and
medium - voltage line connecting the Study Area with the Metehara sub
farm areas (in addition to 540 individual connections), and for the fu

station. This substation is connected with the 132 kV Awash I (Koka)
ture Melka Warar township.
Dire Dawa power line.
The     total     cost     of     the     above     installations,     related
to 
the
1980     situation
The     .mount,     of     energy     required     to     meet     the     estimated     forecast     demand
of full development, should roughly be as follows:
in the Study Area are as follows:
Year
1973
1977
1980
Note:
Net Consumption
kWmax kWh/annum
385               1,‘ 100, 000
615                1, 760, 000
770               2. 1 94, 800
Gross Consumption
kWmax kWh/annum
428           1,  1 75, 000
685           1, 880. 000
855           2.  350. 000
, ♦ « t-Kf* energv mcasur
15     kV     lines,     including     branches     lines     (65     km
double    circuit    35    sq.mm    +    32    km    single    cir
cuit 25 sq. mm)
Pole mounted transformer substations
(32 x 40 kVA + 1 2x 25 kVA +Melka Warar)
ed
The_gross figures shown           *?°                                                   Metehara.
corre<IT
on the 15 kV system supplied by .th-------------------------
L. V. distribution lines
(300 km single-phase and three-phase)
Eth. $
730. 000
85, 000
600, 000- 148 -
- 149 -
Connections       to       private       consumers       and public lighting installations
(about 6, 720 consumers)
Total
Eth. $
480. 000
1, 895, 000
budgetary considerations
While the financial position of the Government will be, off co>ur deciding factor in determining the adequacy of planning '
it is important to show that, as defined by AVA. the Project does y leld directly a substantial amount of direct tax revenues. According financial projections shown below, direct tax revenues during the
The cost per consumer connected is therefore equal to  about 280Eth.$. while the cost per kVA installed is slightly  over 1.  200  Eth.  $,  and that
yer ha served is about 95 Eth. $.
of the Project
will be as follows:
Direct Tax Revenues - Annual Averages
(thousand Eth. $)
For indicative purposes only, a comparison has been made between
data of an Italian Reclamation Consortium in Southern Italy and the
Study Area; the results arc given below:
Reclamation Consortium                      Melka Sadi-Ami bar a.
Area
Population
Density
Installed power
Cost per kVA
Cost per consumer
Cost per ha
•■or what concerns of the
13 7 sq. km
about 8, 000
58.  5  inhab.  /sq.  km
I, 450 kVA
965 Eth $/kVA
875 Eth. $/kVA
102 Eth. $/kVA
annual operating and
the proposed distribution system.
it must be c<
tern will not be administered as an independent unit Part of the EELPA Interconnected System.
An assessment of the above mentioned costs an Burner sale tariffs can thus be more realistica y
1 70 sq. km
50.    000    (excluding    sea
sonal)
294 inhab. /sq. km
1, 540 kVA
1. 200 Eth. $/kVA
280 Eth. $/kVA
85 Eth. $/kVA
maintenance costs of
onside red that this sys-
— it, but will be run as
d of the subsequent con-
gELPA.
Fe riod
1974-1983
1984-1988
1989-2003
Development bv  Com
mercial Farms Only
3, 973
14. 78 3
16, 030
Development by
Settlement Scheme
and Commercial Farms
2, 734
10. 164
1 1.021
As     against     these     figures,     the     costs     for     the     main     structures     that     will     be required are as follows (1):
Thousand Eth. $
Health buildings
Education buildings
Church and mosque
General urbanization facilities, including Road Network, Water Supply, Sewerage and Electricity
2, 400
2, 200
200
3. 600
(I) Th. coal. are bated on unit price, for eimllar .tructure. performed in E.fat quantities derived from building project, .tudied for rural sett!.™....
ment..
In     particular,     the     coat     of     the     hospital     correspond,
tai, and includes full equipment,
»"<l applied tA
with comparable require.
to the coat of coft.truction of the
Wonjl Ho.pl.- 150 -
Public buildings (police station, post office,
fire station, etc. )
Air strip
Total
Thousand Eth. $
650
160
9. 210
Thus, direct tax revenues alone will, by 1977. have accumulated suf
ficiently to cover the cost of urbanization. It ought to be mentioned,
however, that the Government must also invest in the Project itself
through equity-like contributions and may have to remit tax payments
in favor of higher water rates to AVA. On the other hand, the tax
accumulation above does not include any revenue from indirect taxes
both on farms sales and on sales to the general market of the Area,
nor docs it include personal income tax receipts on salaries paid with
in the Project Area.
The    comparison    above    is,    of    course,    a    rough    one.    In    addition    to    in vestment     costs,     the     Government     will     need     to     budget     the     recurrent     costs of     health,     education,     justice     and     other     similar     activities.     In     particular it    will    be    necessary    that    the    coordinating    body    mentioned    earlier    includi careful     planning     of     these    continuing    activities,    mainly    in    order    to    avoid unnecessary     duplications     of     work     among     different     administrations     and     to avoid dilution of responsibilities among such bodies.
fc reflecting on the budgetary burden of these activities, it should be taken into account that in principle none of these expenditures is addi tional, vis-a-vis what the Government should already be doing. In fact, the Project Area attracts people from other regions and had People remained there, they would have claimed the same basic serv ices that are to be provided in the Project Area.FIGURES•
legend
AREA boundary
farm boundary o
SETTLEMENT AREA ©
<1FARMS AREA                           □ FARM No                                    A
future township
grade cooperative VILLAGE 'NSTRUCTiON FARM village HEADQUA^TE RSMANAGeMENT
T
.— __
main ROADS                             ▲ FEEDER ROADS
FARM center
farm     center     with hheeaalltthh facilities
TO AWQRA MEL KA
LHAMO
AREAS (FUTURE)
MELKAJiWaHAH )
DIVERSION WEin
ETHIOPIAN GOVERNMENT
urbanistic LAYOUT
W *8H VALLKY AUTHORITY
ADDIS AhAtiALEGEND
MAIN CANALS
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DIVERSION I
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TO AWORA MFLKA<
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MEi- a
Ethiopian government
IRRIGATION DRAINAGE AND ROAD network
GENtRAL LAYOUT
**ASH VALLEY AUTHORITY
ADDIS ABABA
>»O000Ha 3865
..      1645 Sub-total Ha 5510
5080
1930
Sub-total Ha 12 260 Total Ha 17770
future
.TOWNSHIP
MEIKA SADI
diversion WEIR
FARM
FARM       BOUNDARY CANALS
DIKESMELKA SADI DIVERSION WEIR
GENERAL LAYOUT
L Ethiopian government
VALLEY AUTHORITY ADDIS AHAHAFIG.
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awash valley authority
ADDIS ABABAFIG 21
L Ethiopian government
**A3H VALUKV AUTHORITY ADDIS ABABAMnLAMt QRAmnuBt
WESTERN DYKE
EASTERN DYKE
MAIN ROADS
EASTERN ANO LINK ROADS
main ROADS —
AMIBARA MAIN CANAL SERVICE ROAD
irrigation project
|TV
BTUOY
FLOOO PROTECTION DYKES
MAIN AND SERVICE ROADS
TYPICAL CROSS SECTIONS
‘*TT ~ ----------
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ETHIOPIAN GOVERNMENT
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MELKA SADI-AMIBARA IRRIGATIO
Z-.-.A.TN Dc,
IRRIGATION UNIT AND MINOR NETWORS ITALCONSULT,
mroject
- tuOV
TYPICAL ARRANGEMENT A
, moi to ichi
lAL Ethiopian government
AUTHORITY ROWS ABAbAr
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t?ONSULT
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WIlo kak
,■»>« *»» IHI >»•**LEGEND
MAIN CANAL
DISTRICT CANAL
CANAL NAME
UNIT CANAL INTAKE NON RECLAIMABLE ZONE
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MELKA SADI SUBAREA
DISTRICT CANALS - SCHEMEFIG. 28FIG. 30FIG. 31
SECTION <£>
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melka sadi-amibara irrigation project
FEABIBILITY STUDY
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DISTRICT CANALS
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------------------------
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- ----------------------------- Fu HHj. —'_________________
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fBABi«ilitv BTUOY
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_
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31
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aiwtn
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valley authority
ADDIS ABABASECTION Zc\
SECTION
UNIT    DRAIN CULVERTLEGEND
a SADI-AMIBARA irriqatiom project
MELKA SADI SUBAREA
DISTRICT DRAINS - SCHEME
(VlEl-KA
•▼UOV
•MPERIAL ETHIOPIAN GOVERNMENT
AWASH VALLEY AUTHORITY
ADDIS ABABAFIG *0
ORA IN
CUWUATIVfS
MELKA SADI SUBAREA
....L.W -TUOV
DISTRICT DRAINS ABC
LONGITUOINAL FROFILF
ETHIOPIAN GOVERNMENT
"**,M valley authority
ADDIS ABABA■ LAD
MAM    NOAOS    1000
OtSINKT NQADS 100
-SECTION
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■--- --------------            AODtS ABABA
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LAYOUT OF INSTRUCTION
FARM VILLAGEFIG
w/ator tank maetinn
administration
building
*orksrs‘ house*
drinking trough
155.00 dormitory
AMIBAPA IRRIGATION project
r ,as.siu.tv stuov
LAYOUT OF 1st GRAOE
COOPERATIVE VILLAGE
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**A8H VALLKY AUTHORITY ADDIS ABABA
—1-----------------------------------------------------------------------------------------------------
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i Mi
AHV IM*                     —
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- -----FIG 46
<WX5H VALLKY AUTHORITY
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< <

Summery

Summary of Melka Sadi-Amibara Irrigation Project Feasibility Study

Melka Sadi-Amibara Proposed Irrigation Project Feasibility Study

Summary

Project Overview

The Melka Sadi-Amibara Irrigation Project is a major agricultural development initiative in Ethiopia's Awash Valley, designed to irrigate approximately 17,770 hectares of land. The project includes diversion weirs, main canals, drainage networks, flood protection dykes, and settlement villages.

Key Components

Component	Description
Project Area	17,770 ha geographical area (13,809 ha net irrigable area)
Water Source	Awash River via two diversion weirs (Melka Sadi and Melka Warar)
Main Works	Diversion weirs, main canals, main drains, flood protection dykes, roads
Irrigation Network	Hierarchical system from main canals to field canals
Drainage Network	Field drains to main drains to control water table
Settlement Scheme	5,020 ha for settlement villages (planned for 10,000 people)

Technical Details

Diversion Weirs

Melka Sadi Weir: 2 spans (20m each), crest elevation 748.30m
Melka Warar Weir: 3 spans (20m each), crest elevation 738.00m
Both include stilling basins, gravel passes, and road bridges

Main Canals

Melka Sadi Main Canal: 11,760m long, initial discharge 5.25 m³/sec
Amibara Main Canal: 20,890m long, designed for future expansion

Land Classification

Class	Area (ha)	Percentage
I	931	5.2%
II	11,487	64.6%
III	4,542	25.6%
IV	411	2.3%
VI	226	1.3%

Economic and Financial Evaluation

Cropping Patterns

Commercial Farms: Three patterns (A: Cotton-based, B: Tobacco-based, C: Mixed)
Settlement Scheme: Primarily cotton-based for labor requirements

Economic Rates of Return

Development Option	Cropping Pattern	Rate of Return
Commercial Farms Only	A (Cotton-based)	14.4%
	B (Tobacco-based)	16.7%
	C (Mixed)	15.5%
Commercial Farms + Settlement	A	11.0%
	B	14.0%
	C	14.7%

Implementation Timeline

The project is planned to be implemented over 4-6 years, with cultivation beginning in some areas within 30 months of construction start. The Settlement Scheme would require about 15 years to become fully autonomous.

Key Findings

The project is technically feasible and economically viable, especially with commercial farming
Water availability is sufficient if current discharge patterns from Koka Dam continue
The Settlement Scheme has lower economic returns but serves important social purposes
Commercial farms of about 1,000 ha appear optimal for economic viability
Compensation measures are needed for the Afar population currently using the area