THE FEDERAL DEMOCRATIC IEPDRUC IF ETHIOPIA MINISTRY OF WATER RESOURCES Arjo-Dedessa Irrigation Project Feasibility Study Report VOLUME - V ENVIRONMENTAL AND SOCIO-ECONOMIC ASPECTS VOLUME - V (b) Annexure - 22 Annexure - 23 Annexure - 24 Annexure - 25 Organization and Management Settlement Planning Physical Infrastructure Financial and Economic Analysis May, 2007 Addis Ababa WATER WORKS DESIGN 8, SUPERVISION ENTERPRISE . IN ASSOCIATION WITH INTTNCDNTINFMTDI CONSMTiHTS UMn TFCHNOCRATS INOIA PVT ITO P 0 Box 2561, Addis Ababa Ethiopia Tel (25J)I 614 501/631890 Fax (1251)1 6l537IE-inail w u d s.ez/ielecom net elARJO-DEDESSA IRRIGATION PROJECT FEASIBILITY STUDY REPORT CONTENTS OF THE REPORT SERIAL NO. 1 2 3 VOLUME NO. PARTICULARS EXECUTIVE SUMMARY MAIN REPORT Pan i - Report Part II - Maps & Drawings ANNEXURES 4 VOLUME -1 SURVEY AND INVETIGATION (ANNEXURES - 1 to 3) Volume -1 (a) Topographic Survey. Geomorphological Studies & Geological & Geotechnical Investigation Part I - Report 5 6 Volume - • (b) Part II - Appendices VOLUME -II NATURAL RESOURCES (ANNEXURES - 4 to 6) Forestry. Energy & Catchment Development Plan VOLUME - III WATER RESOURCES (ANNEXU RES - 7 to 11) 7 8 9 10 Volume - III (a) Meteorological & Hydrological & Hydrogeol ogical Studies Dam & Appurtenant Works Volume - III (b) Part I - Report Part II - Drawings /fo? *A volume-III (c) irrigation & Drainage /< v ___ % 11 12 13 Part I - Report Part II - Drawings Volume - III (d) Hydraulic Structures Part I - Report Part II - Drawings / I ;• ( '' X )• ^7/ ^Oatio*4 VOLUME IV AGRICUTLRUE (ANNEXURES - 12 to 18)“^^ 14 15 16 Volume - IV (a) Soil Survey & Land Evaluation Volume - IV (b) Agricultural Planning Volume - IV (c) Livestock, Fisheries, Agricultural Mechanization & Agricultural Marketing VOLUME - V ENVIRONMENTAL AND SOCIO - ECONOMIC ASPECTS (ANNEXURES-19 to 25) 17 18 Volume- v (a) Environment, Health & Socio-economic Aspects Volume-v (b) Organization & Management. Physical Infrastructure Resettlement. Financial & Economic AnalysisAnnexure - 22 ORGANIZATION AND MANAGEMENTFe&slblUty Study of Arjo Dedessa Irrigation Project Organization and Management Aspects TABLE OF CONTENT May 2007 1 INTRODUCTION 1 l Objective of the study 1.2 Scope of the Study...... 1.3 methodology....................................................................................................- 13 1 Review of Previous Imgation Feasibility Studies 1.3.1 1 Welenchiti-Bofa and Kesem-Keoena.................................................................................................... 1.3.1 2 Dabus and Amibara Projects ................................................................................................... - 1 3.1 3 Koga Irrigation Project.........................................................--- 1.3.2 Reviews of Irrigation Management Systems 1.3.2.1 Transfer of Imgation Management Services. Guidelines 1 3.2.2 Journal of the International Commission on imgation and Drainage...................................................... 1 3.2.3 Productive Water Points in Dry land Areas Guidelines on Interacted Planning for Rural Water 1 3 3 Review of Ethiopian Water Resources Management Policy and other Relevant Policies 1 3.4 interviews with Stakeholders ......................................................................................................... 1 3.5 Visits ano Observations from Small Scale imgation Projects in Oromia PROJECT FEATURE AND SOCIO-ECONOMIC CONDITION 2.1 Project area l 2. 5 2.2 Command area.......................................................................................................................................... 2.3 THE Dam aND RESERVOIR5 2.4 Features of the Project-....................................................................................................................... 7 2.5 Socio-Economic Conditions7 2.5 1 Population in the Command Area ................................................................................ 7 2.5.2 Major Diseases8 2.5.3 Health Services8 2.5.4 Water Supply 8 2.5.5 Road and Other infrastructures 8 2.5.6 Schools 9 3. ORGANIZATION AND MANAGEMENT-_... 11 3. l Review of Policies Related to Irrigation11 3.1.1 Ethiopia's Water Resources Policy/ j 3.1.2 Policies on Land TenureJ2 3.2 Current trend and Experiences in other Countries....................................................................... i3 3.2.1 Spainjj 3.2.2 Slovenia...........................................................................................................„jj 3.2.3 Hungary.....................................................................................................................................]j 3.2.4 The Expenence of India / 4 3.3 Institutions and Stake holders analysisj 5 3.3.1 The State.... ................... ........ ................................ ......... ........................ / $ 3.3 2 Non Governmental Organizations (NGOs)................. 3.3.3 The Pnvate Sector............................................ ...................................... /6 ............ J6 3.3.4 The Community............................................... 3.4 Current Governance Structure in Ethiopia for Irrigation Management 3.5 The Experience of Small Scale Irrigation Schemes in Oromia" 3.6 The Experience of the Koga Irrigation Project 3 6.1 Steenng Committee........... 3.6.2 Functions of Project Coordination Office 3 6.3 Project Site Office 4. PROPOSED ORGANIZATION AND MANAGEMENTM 4.1 Project Phase 4.1.1 Phase I: Planning, Design and Implementation 4.1 1.1 Proposed Organization Structure................... 4.1 1.2 Manpower Requirement for Phase I 4 11 3 Functional Descnption ot the Proposed Organizational Structure Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvl Ltd. ..........................................J6Arjo Dedessa Irrigation Project Organization and Management Study_________________________________________ May 2007 4.2 Phase II: Operation and Maintenance...................................... ~........................................................... 36 4.2 1 Manpower Requirement for Phase II: Operation and Maintenance..................................37 4 .2.2 Functional Descnptions of the Proposed Organizational Structure................................ 40 4.2.2.1 Organizing Functions.....................-...............................................................-............................... 40 4 2.2.2 Capacity Building............... -.................. -........-. ............................................. -....................... 40 4.2.23 Operation Functions............................. ~................................................ -................................................. 40 4 2.2.4 Maintenance functions......................... ............................................................................. -.................... 41 4 2 2.5 Agricultural Extension................................................................................................................................ 42 5. INTRODUCTION OF PARTICIPATORY IRRIGATION M AN AG EMENT...................................... 43 5.1 Background.........................................................................................................................................43 5.2 Important Features of Major Irrigation Projects...................................................................... 43 5.2.1 Implementation of Major imgation Project by Government 43 5.2.2 Components of Major imgation Projects....................................................................................44 5.2.3 Phases of Major imgation Project.......................................................................................... 45 5.2.4 Desirable Characteristics of Imgation Systems..................... ................................................45 5.2.5 Maladies of Existing Major imgation Projects ......................................................................... 46 5.3 Development of Irrigation rN Major Irrigation Projects..........................._............................. 47 5.3.1 Past Expenence ....................................................................................................................47 5.3.2 Outlet.................................................................................................................................... 48 5.3.3 On-Farm and Off-Farm Development Works........................................................................ 49 5.4 Experiences of PIM in other Countries....................................................................................... 50 5.4 1 Wond Overview................................................................................................... 30 5.4.2 The Philippines Case............................................................................................................ 30 5.4 3 The Mexico Case............................................................................................... 30 5.4 4 The Turkeys Case............ -..............................................................................................3 J 5.4 5 The Pakistan Case.............................................................................................. 3 J 5.5 The India Case.....................................-........................................................................................... 52 5.6 Role of PIM in arjo-Diddessa Irrigation Project....................................................................... 52 5.6 Introduction of PIM in arjo-Diddesa Irrigation Project.............................................................54 5 6.1 Level of Organization.................................................................... ........................................... 54 5 6 1.1 Outlet Level..................................... —.................................. -............................................. -.................. 54 5.6.1.2 Tertiary Level............. ............. ..................... ................................................................................... 54 5.6.1.3 Secondary Level. ............................................................................. -.................. -........................... 54 5.6.1 4 Project Level........................................................... -.................................................. —.................54 5.6.2 Jurisdiction of WUA...............................................................................................................55 5.6.3 Organization of WUA........ ........................................................................................................55 5.6 4 Responsibilities of WUA.................................................................................................. 55 5.6.5 Availability of Funds.............................................................................................................. 56 5.6.6 Transfer of the Scheme........................................................................................................ 56 5.6.7 Timing of Transfer ................................................................................................................56 5 6.8 Preparation for Organizing PIM................................................................... ............................ 56 5.6.9 Manual for Introducing PIM...................................................................................................... 57 6 TRAINING REQUIREMENT................. .................................................... . ..................................... 58 6.1 Need for training........................................................... ............................................................... 5 8 6.2 type and Scope of Training Required......................................................................................... 58 6.3 Training for Project Staffs....................................................................................................... 59 6.3.1 Training for imgation Engineers............................................................................................ 59 6.3.2 Training for Agncultural Aspects............................................................................... . 60 6.3.3 Training for Members of WUA........................................................................................... 6i 6.3 3.1 Participatory Irrigation Management.............................................................................................. 61 6 3.3.2 Aspects of imgation Engmeenng........................................................................................... 61 6.3 3.3 Agncultural Aspects . .................................................................................................... 62 6.3.3.4 Administrative and Financial Aspects.......................................................................................... 62 6.3 4 Training to Farmers............................................................................................................. 62 6.4 Training targets based on the proposed organization structure........................................... 63 6.4 1 Training for Management Positions. ................................................................................. 63 6.4.2 Training for Operation Staff............................................................................................... 63 6 4.3 Training for Maintenance Staff.......................................................................................... 64 6.4 4 Training for Farmers Representatives............................................................. 64 Water Works Design & Supervision Enterprise 11 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study 7 OTHER CONSIDERATIONS. 7.11 Community Ownership and Participations..................................................................... 7.2’ Membership by the Poor and the Marginalized............................................................. 7.3• Development of Organizational protocol by the Water Users associations May 2007 66 66 67 67 7.3.1 The Social Contract ........................................................................................... 7 3.2 The Constitution/Memorandum of Association.......................... -....................... 7 3.3 Multi-Purpose Onentabon of irrigation Systems................................................. 67 68 69 LIST OF TABLES Table 2.2 (a; Estimates of Population Distributions of the Kebeles in the Command Area, 2006.............. 9 Table 2.2 (b; Estimates of Population Distributions of the Kebeles in the Reservoir area, 2006 io Table 4 1 Manpower Requirement for phase I: the Planning, Design and implementation......................... 29 Table 4.2: Manpower Requirement for Phase II: Operation and Maintenance...........................................39 LIST OF FIGURE Figure 2.2 Location Map for the arjo-Diddessa irrigation Command and Reservoir........................... 6 Figure 3.1 The Organization of Oromia irrigation Development Authority......................................... 18 Figure 3.2 Proposed Organization Structure for Birr and Koga Project in the Amhara Region.................................................................................. „..................................................23 Figure 3.3 Proposed Organization Structure for the Koga Irrigation Project...............................24 Figure 4 1 Proposed Organization Structure for the Planning, Design and implementation ... 28 FIGURE 4.2 Proposed Organization Structure for Phase II: Operation and Maintenance Phase............. 38 Figure 5 i Role of WUA in optimization of agricultural Produces................................................... 53 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. IllArjo Dedessa Irrigation Project Organization and Management Study ORGANIZATION AND MANAGEMENT 1 INTRODUCTION 1.1 Objective of the study May 2007 The organization and management study component of the Arjo-Diddessa Irrigation Project is aimed at complete assessment of current policies related to irrigation development and management and other relevant policies involvement of stakeholders including institutions at federal and regional levels, options for future ownership ana management of the scheme ana possible ways of financing operation and maintenance costs. The study is also aimed at laying down important prerequisites and framework for future transfer of the project to the local ana/or regional government, user association or any other relevant body This part of the study also proposes the timing of management transfer, functions to be transferred or to be retained, and supports required from the federal and/or regional government. Proposals also include organizational options needed for project implementation and during operation phase, the detailed manpower requirement together with the functional as well as position descriptions for the management, operation and maintenance of the scheme, ana the training requirement for the proper running of the project during its operation phase. 1.2 Scope of the Study The scope of the study is limited to assess and define institutional and legal requirements for the ownership, supervision/governance and management of the irrigation system during the project implementation and operation phase. The scope also extends to assessing regional and local institutions and stakeholders to be involved in the various phases of the project cycle. Assessment of existing laws and policies pertaining to rural land ownership land use policy; water resources development and management policy particularly irrigation policy policies regarding federal and regional government structure and development strategy: and the local socio-economic condition; whicn are highly cntical are within the scope of the organization and management study 1.3 Methodology Review of secondary sources and primary data collection through interviews and observations are the major methodologies adopted for acquiring the relevant data and Water Works Design & Supervision Enterprise In Association with In tercon tin enol Consultants and Technocrats Pvt Ltd. IAr Jo Dedessa Irrigation Project Organization and Management Study May 2007 information for the organization and management study The major documents reviewed and the primary data collection methods which are the basis of this study are. (i) Previous Irrigation Feasibility Studies (ii) Literature on Irrigation Management Systems (iii) The Ethiopian Water Resources Management Policy (iv) Interviews with stakeholders, and; (v) Field Visits ana Observations 1.3.1 Review of Previous Irrigation Feasibility Studies The major previous irrigation feasibility studies reviewed for the purpose of this study are • Waianciti- Bofa Irrigation Project Institutional Study • Kesem-Kebena Dam Irrigation Project Institutional Study, • Dabus Irrigation Project Feasibility Study .Organization and Management and; • Amibara Drainage Project. Phase II, • The Koga irrigation feasibility study. 1.3.1.1 Welenchiti-Bofa and Kesem-Kebena The first two. Welenciti-Bofa and Kesem Keoena. have little relevance to the current project on the ground that the purpose of the irrigation is for the development of sugar cane as a raw material for sugar industry, the owner of wnich is predetermined, government through its sugar factory - existing or to be established. 1.3.1.2 Dabus and Amibara Projects The Dabus Irrigation and the Amibara Drainage projects feasibility studies have been used to a limited extent depending on the ownership and management option recommended. It has to be noted that the two projects are designed under government ownership and management, not under community or private ownership and management. The organizational options are dependent upon who will be the owner and the major purpose it is intended to serve The current project under study is different in scope purpose and the target community from these projects which were implemented under the socialist/command economy and. therefore, should be analyzed in that context. 1.3.1.3 Koga Irrigation Project The Koga Irrigation Project, which is currently under construction, has many aspects in common with the envisaged Arjo-Deddessa Irrigation Project, including its scope, approach Water Works Design & Supervision Enterprise 2 In Association with Intercontinental Consultants and Technocrats Pvt. Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 and the nature of state under which the project idea is conceived and developed. The experience and organizational recommendations of the Koga Irrigation Project «s. therefore, a useful reference as they have some reievance to the current irrigation feasibility study 1.3.2 Reviews of Irrigation Management Systems This includes reviews of documents and/or electronic materials on irrigation and drainage systems and their managements, irngation systems management transfer guidelines and practices in different countries, and other related secondary sources. Among the reviews made, some of them are discussed nere under 1.3.2.1 Transfer of Irrigation Management Services, Guidelines FAO’s Irrigation and Drainage Paper, no 58 provides important policy issues concerning irngation management transfer and the experiences in other African and Asian countries. According to this guideline recent trend in irrigation systems management and policy world over emphasizes locai/beneficiaries involvement and active participation starting early from the outset, i.e., from neea identification through preparation, design, construction, implementation ana finally operation and maintenance of the scheme The guideline also provides a numDer of alternatives for the ownership and management of the irngation scheme, including, a) Handover of the management to regional states, b) Handover of the management to the local water users association (WUA) c) Lease/contract out the management of the scheme. 1.3.2.2 Journal of the International Commission on Irrigation and Drainage The otner important source reviewed is the Journal of the International Commission on Irngation and Drainage (2002) vol.51 (3). This assesses the different policy issues, organization structures and expenences of different European countries in the transformation of irrigation management systems 1.3.2.3 Productive Water Points in Dry land Areas: Guidelines on Interacted Planning for Rural Water Supply A book entitled “Productive Water Points in Dry land Areas Guidelines on Integrated Planning for Rural Water Supply” by Chrid Lovell, has been published by ITDG Publishing London (2000) with the Centre of Ecology and Hydrology in Great Britain ano it provides useful information and guidelines on developing a new water point, making effective use of it, community participation, management of productive water points, and others. As most of Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 3Arjo Dedessa Irrigation Project Organization and Management Study May 2007 the management and community participation aspect of rural water supply is very much similar to irngation water the guideline ana other issues addressed in this book have relevance to this irrigation management ana operation study 1.3.3 Review of Ethiopian Water Resources Management Policy and other Relevant Policies The comprehensive Water Resources Management Policy has been critically assessed as it is the major guiding document of water resources development and management particularly irrigation. Other relevant policies such as agricultural policy and land-use and tenure systems nave been also included in the analysis of the organization and management studies 1.3.4 Interviews with Stakeholders interviews and discussions have Deen made with major stakeholders not only to acquire information on current practices but also to ascertain their views in assessing the future organization and management of the irrigation scheme. The Irrigation and Drainage Deveiopment Studies Department of the Ministry of Water Resources has provided important suggestions ana assistance required in the consultants endeavor towards collecting relevant data and information Officials and experts in the Woreda and Regional Agriculture ana Rurai Development, irrigation Development Autnority. and Water Resources Bureau nave also provided information on current practices in the locality and the region 1.3.5 Visits and Observations from Small Scale Irrigation Projects in Oromia Field visit was made to community based irngation sites, particularly the Balbala and Waaecna Irrigation Scheme of the East Shawa Zone of Oromia. The visits have to develop a very good understanding about how this local community is managing the irrigation scneme the relationship between local community and Woreda Agricultural Bureau and Zonal level Irngation Authority and issues concerning water charges and subsidy requirements. Current problems related to the operation and maintenance of the scheme, rights of access to water, especially at distribution and water course levels of irrigation systems have been also observed Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 4Arjo Dedessa Irrigation Project Organization and Management Study 2. PROJECT FEATURE AND SOCIO-ECONOMIC CONDITION May 2007 2.1 Project Area The proposed project is located in West Oromia at about mid-way between the towns of Bedelle and Arjo in tne Valley of Diadessa River. The right bank of the command area lies in Jimma Arjo Woreda jnder East Wollaga Zone of Oromia, and the left bank command area in Beadelle ana Gachi Waraaas under lllubabura Zone Until the recent new settlements, the command area was reportedly non-inhabited Currently, however there are new settlements areas namely Denaoa, Meta Beddessa and Cheti occupying the areas within the command area and the surroundings. 2.2 Command Area The gross command area is estimated to be about 17,825 ha falling mainly in Bedeie, and Jima-Arjo Woredas, very small portion of the irrigabie area falls in Gechi woreda Out of this 6827 ha is located on the Right Bank canai ana the remaining 10998 ha lies on the left BanK. The net command area is 13 665 ha wnich is 76.66 % of the gross command area. Out of this, about 7,450 ha (55%) of the net command area lies on the left bank and the remaining 6,215 ha (45%) on the nght bank of the Didessa River. The command area can be accessed through the all weather Beddele-Nakamte road. 2.3 The Dam and Reservoir The Arjo Dedessa Dam site and reservoir area is located in Jimma Zone The geographic position of the dam site (axis) in UTM is 257565 m E and 0907545 m N (E 36°48’ 20”, N 8°12‘ 20"). The reservoir area is estimated to be about 8,500 ha falling in Borecha and Limu seka Woredas. The dam site is located at about 7km on the road from Limu-Genet to Atango and 16 km to the left from Dora elementary school to Mero (Moga private farm camp). The Dam axis is about 5km from Moga camp. The location of the dam site reservoir area and command area are shown in Fig 2.1 The reservoir area can be accessed through Jimma - Limu Genet- Atango all weather road It is located at about 103km from Jimma to Atango and 48 km from Atango to Deneba settlement area Water Works Design & Supervision Enterprise 5 In Association with Intercontinental Consultants and Technocrats Pvt Ltd._____ Arjo-Dedessa Catchment and Command Areas 20CXU zrooco 240000 ETHIOPIA DAM SITE | FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA AJUO DEDESSA IRRIGATION PROJt CT UflHT Ml HI SI AV OF WATTR RESOURCES COHSU TANT LEGEND 220000 HAPrmx scmje WATER WORKS bill UN AND SUPERVISION ERItRFRISC »,A«oaAit WITH INTERCONTINENTAL CONSULTANT ' AND TECHNOCRATS PVT LTD LOCATION MAP OF TRI PROJECT ARSA - ---------- lT “I o*n OO® | 11» JOt iHoArjo Dedessa Irrigation Project Organization and Management Study 2.4 Features of the Project The proposed Arjo-Diddessa Irrigation Project consists of the following constituents: May 2007 a) 40 meters high earth dam on main stream of Diddessa River. The submergence area of the reservoir is 87 85 square km (8785ha) The gross and live storage 3 capacities are 1341.16 Mm and 466.49 Mm respectively b) Canal System: The length of main canal is 104 km and the total net command area is 13665 ha The details are as follows (i) Left Bank Main Canal - This is 60km long with a head discharge of 9 02 m3/s. The command area is 7450 ha There are 46 secondary canals off taking from the main canal. (ii) Right Bank Main Canai - This is 44 km long with a head discharge of 7 52 m3/s. The commano area is 6215 ha. There are 41 secondary canals off taking from the main canal. The Salient Features of the irrigation system are provided in Table 2.1 Table 2.1: Salient Features of the Arjo-Diddessa Irrigation System Particulars Unit Right Bank Left Bank Total Command Area hr 6215 7450 13665 Length of Canal km 44 60 104 Full Supply Level at off-taKe masl 1348 1348 Discharge/Canai capacity at off m3/s mJ/s 7.52 9 02 16.54 Number of secondary canals No 41 46 87 2.5 Socio-Economic Conditions 2.5.1 Population in the Command Area According to the results of the socio-economic survey, the population size of the rural communities of the two Woredas, Beddelle and Jimma Arjo. wnere the major part of the gross command area is located, are estimated at 117, 598 (85 % of the Worada total population) and 81, 504 (88 % of the Woreda total population) respectively The other woradas in the direct influence of the irrigation projects are Borecha with a total population size of 45,000, Gechi, 62, 739 and Limmu Seka, 156, 733. The socio-economic study further indicates that there are 15 kebeles falling partially within the reservoir and another 15 kebeies falling almost fully within the command area The Water Works Design & Supervision Enterprise 7 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management StudyMay 2007 estimated population size of these kebeles falling in the command and reservoir areas are estimated at 74, 46 people, and 13, 127 households. The details are available in Table 2.2 (a; for the command area and 2.2 (b) for the reservoir area. 2.5.2 Major Diseases The major diseases prevailing in the two Woredas where the major part of the command area lies, according to the results of the socio-economic survey, are malaria, upper respiratory tract infections, rheumatic pain, intestinal parasite, diarrnea, gastritis, anemia, urinary tract infections and skin infection. Most of the mentioned diseases are caused by lack of balanced diet, poor hygiene and sanitation, which can De alleviated through expanding primary health care services 2.5.3 Health Services According to the National Health Policy of Ethiopia, the ratio of health institutions to population is stipulated to be 5,000 people per healtn post and 25,000 people per health center The situation in the Woradas in the project area, however, shows 34 health posts with a ratio of 1:8,322 populations Most of the health institutions are with sub-standard facility and inadequate manpower 2.5.4 Water Supply Though the project area has high water resources potential and high rainfall from year to year (between 1600- 2400mm), rural population has inadequate access to potable water. Thus the people are compelled to use traditional schemes and unsafe water sources such as ponds, rivers, unprotected springs ana hand dug wells. Considerable numbers of population are, therefore, suffering from water bom diseases. 2.5.5 Road and Other Infrastructures In terms of infrastructure the command area is nearer to Nekemte, Jimma-Arjo and Beddelle towns with infrastructure facilities like electric power, telecommunication and postal services The Nekamte-Beddeie all weather road also crosses the command area of the project. Woreda capitals in which the command and reservoir area falls are accessible through all weather roads, among which Bedaelle and Gechi have asphalt link roads Postal and telecommunication services are available in all Woreda capitals in the command area; Atango and Yanfa towns have no electric supply Rural kebeles have no access to telecommunication services. Water Works Design & Supervision Enterprise 8 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study 2.5.6 Schools May 2007 According to the results of the socio-economic survey, currently, the numbers of primary schools available in the woredas in the command area are very low compared to the school age population. Furthermore, the available schools have awkward classrooms with critical snortage of facilities. The enrolment ratio is much more less for girls than boys in the areas Other problems related to primary education in this are, as identified during the socio-economic survey are • High Student per Class Ratio • Limited access to schooi due to economic problems • Inadequate School facility • Inadequate number and quality of teachers Table 2.2 (a) Estimates of Population Distributions of the Kebeles in the Command Area, 2006 Zone Woreda Household Population Kebeles Male Female Total Male Female Total Lilokarie 193 17 210 553 626 1179 Chafiejateia 384 42 426 1,258 848 2,106 Bedele Bekelichbiftu 366 48 414 833 665 1,498 Bildimadaru 392 13 405 1,488 1,225 2,713 Chilaiobildima 334 43 377 1,018 734 1,752 Ambeleta 388 16 404 1,199 819 2,018 Kolosirie 541 35 576 1,737 1,187 2,924 Harotatesa 310 12 322 1,688 1,499 3,187 Sub total 8 Kebeles 2,908 226 3,134 9,774 7,603 17,377 Chitubosena 273 8 281 871 815 1,686 Getchi Manis 244 9 253 784 734 1,518 Yebelo 260 12 272 843 789 1,632 Wakel 245 4 249 772 722 1,494 Sub total 4 Kebeles 1,022 33 1,055 3,270 3,060 6,330 Lugama 339 11 350 729 335 1,064 Jima-Arjo Meta 1,199 92 1,291 4,310 2,149 6,459 Bedhasadede ssa 303 31 334 813 861 1,674 Subtotal 3 Kebeles 1,841 134 1,975 5,852 3,345 9,197 Grand total 15 5,771 393 6,164 18,896 14,008 32,904 Source. Compiled based on information obtained from Bedele, Getchi, and Jima-Arjo Woreda Administration Offices Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. Eastern Welega Zone llluababoraAr jo Dedessa Irrigation Project Organization and Management Study Table 2.2 (b) Estimates of Population Distributions of the Kebeies in the Reservoir Area, 2006 May 2007 Zone Woreda Household Population Kebeies Male |Femal€ j Total Male Female Total Chewo 224 14 238 619 643 1,261 Nataro 459 T 29 488 1,269 1,318 2,586 Agidearba 362 23 385 1,001 1,040 2,041 Darasidan 255 42 297 552 638 1,190 Chulu 315 20 335 871 905 1,776 Borecha Golijo 321 20 341 887 921 1,807 Beleka 179 11 190 494 513 1,007 Marxafo 322 7 329 459 971 1,430 Buko 322 7 329 489 871 1,360 Belati 1.243 53 1,296 5 447 6,484 11,931 1 Gubahora 513 22 535 1.041 1,232 2,273 Sub total 11 Kebeies 4,515 248 4,763 13,129 15,536 28,662 /vmamaribo Medajaieia 624 35 659 1,918 1,980 3,898 376 8 384 1,450 1,461 2,911 (V E Limu-Seka iGemta ToKuma 481 12 493 1,110 908 2,018 IDamme 664 - 664 2,474 1 594 4 068 Ei Subtotal H I 2,145 55 2,200 6,952 5,943 12,895 Grand total IS 6,660 303 6,963 20,081 21,479 41,557 Source Compiled Daseo on information obtained from Borecha, ana ,Lemu-Seka Woreda Administration Offices Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 10 llluababoraArjo Dedessa Irrigation Project Organization and Management Study 3. ORGANIZATION AND MANAGEMENT 3.1 Review of Policies Related to Irrigation 3.1.1 Ethiopia's Water Resources Policy May 2007 The government of Ethiopia nas adopted a comprehensive Water Resources Management Policy in 1999. Among the fundamental principles on which this policy is cased, as stated in the preamble, are • In order to significantly contribute to development, water shall oe recognized both as economic and social good • Water resources development shall be underpinned on rural centered, decentralized management, participatory approacn, as well as integrated framework • Management of water resources snail ensure social equity economic efficiency, system reliaDility ano sustainability norms • Promotion of the participation of all stake holders, user communities, particularly women's participation in the relevant aspects of water resources management The above major policy principles emphasize efficient and effective utilization of water resources on the one hand and the public nature, i.e. communities rights to the use of water resources on the other It also underlines the necessity of community and other stakeholders involvement and participation in the planning, development and management of water based development schemes. The Irrigation policy (page 32), which is among the major water resources policy, also states that, among other things. The policy is • To promote decentralization and users-based management of irrigation systems taking into account the special needs of rural women in particular • Establish water allocation and priority settings criteria based on harmonization of social equity, economic efficiency and environmental sustainability requirements Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 11Arjo Dedessa Irrigation Project Organization and Management StudyMay 2007 • Enhance greater participation Dy the regional and federal governments in the development of large scale irrigated farms in high water potential basins but with low population density Furthermore, the policy (sub article B, page 33) provides for the following • Promote meaningful participation of individual farmers, cooperatives and all other stakeholders in all phases of the planning, studies, implementation, and operation and maintenance of small, medium and large scale irrigation farms • Develop systems for harmonious co-existence of indigenous people and irrigation projects The policy provides for local people/beneficiaries involvement and active participation through out the project pnases as this is one of the ways to ensure sustainability of the project and efficient and effective utilization of the scheme for the intended purpose. 3.1.2 Policies on Land Tenure The current Ethiopian government constitution states that land is a common property. Delonging to the state and the community. Article 40 (3) of the constitution states that the right to ownership of rural and urban land as well as of all natural resources is exclusively vested in the state and in the peoples of Ethiopia. The article further states that land is a common property of the nations, nationalities and peoples of Ethiopia and shall not be subject to sale or other means of exchange. Such ill-defined ownership or common ownership of rural lana usually leads to irresponsible use of the land and other related natural resources This has Deen observed over the past decades in the socialist military regime and the current government. Individual farmers, unless they are given exclusive rights ano ownersnip on their individual holdings, feel that they have the right to claim new and additional plot of land at any time without payment. Under such condition, farmers have no incentives to conserve and/or make long term investments on their present land holdings The absence of proper land use planning and the vaguely defined land tenure system, i.e. between state ownership and community ownership, have therefore, resulted in improper land use and lack of any conservation measure. The proclamation No.456/2005, on the other hand, gives the nght to hold and use rural land, allows transfer of rural land use, rights, and obligations to heirs. The practicality of this, however was limited because the allocation of rural lands to each individual farmer is still not realized in many places. Water Works Design & Supervision Enterprise I Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 3.2 Current Trend and Experiences in other Countries As studies and experiences show, varying level of participation is required by different role players for sustainable development to taxe place This is especially true in the case of irrigation projects. Success depends on achieving the right balance, in the process that is demand driven and people centered but which recognizes external support. Studies also show that the one element common to irrigation schemes is that they are all farmer managed. Cooperation in irngation management among stakeholders is oased on understanding of the common responsibility for the construction, operation and maintenance of the water delivery systems Village ana communities agree on cooperative structures for common water use The general trend follows a liberal water act wnere associations are given concessions, made responsible for the maintenance of networks, collecting fees, mediating in internal disputes distributing water and improving and modernizing irrigation systems, etc. These facts are evidenced in the following some European countries, as selected cases in the Journal of Irrigation and Drainage Vol. 51 (3), 2002, by International Commission on Irrigation and Drainage (ICID CIID) 3.2.1 Spain According to the Journal of Irrigation and Drainage Vol. 51 (3) 2002, the water code enacted in the 19th century in Spain entrusts the administration of the waters to the users, who have to establish their regulating organisms and authorities by popular election. The acknowledgement of farmer's associations as democratically organized instrument and their rights and duties has become a standard practice in Spain. There is a general consensus that water user associations are irreplaceable organizations of the private sector in water management ana should assume a leading role in the field of operation and maintenance of irrigation systems 3.2.2 Slovenia In Slovenia, for example, according to the Journal of Irrigation and Drainage two ministries are responsible for agricultural water management works: the Ministry of Agriculture, Forestry and Food, and the Ministry of Environment and Physical Planning System operations and management are carried out by an enterprise having a contract for these services with the Ministry of Agriculture Forestry and Food Farmers are obliged to pay for the operation and management on the basis of their plot size Payments are made through a regular state taxation system with a special account at the Ministry of Finance for that purpose. Water Works Design & Supervision Enterprise 13 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study 3.2.3 Hungary May 2007 The water law in Hungary puts a clear structure, accurate allocation of functions and responsibilities among the state, self government, and water users. The state has the responsibility for hydrological services and the management of the water systems. The functions of self governance in the field of communal drinking water supply, sewerage, waste water treatment and storm water drainage, local land drainage, control of inundation by floods and excess runoff are specified. In areas forming water management unit, interested parties may establish associations for performing public functions of local interest. Associations may be classified into two main groups water management associations for a particular catchments area in which the impact of an intervention at a point spreads out to the entire area, the benefits or harm of which accrue to all property owners in the catchments, and public water utility associations established for the implementation of the water supply or waste water facilities. The Ministry of Environment and the Ministry of Agriculture and Rural development are in charge of the majority of water affairs. All functions associated with the use of water in agriculture are assigned to the competence of the Ministry of Agriculture and Rural Development The operating enterprise also prepares financial planning for the next year on the basis of wnicn the Ministry of Agriculture, Forestry and Food determines the annual charges that nave to De paid by the farmers. However farmers do not pay any charge for water use A charge for irrigation water is explicitly excluded in the provision of the water act. 3.2.4 The Experience of India In India, as elsewhere in Asia, Irrigation Departments cannot and do not control irrigation systems right down to each farmer’s outlet Major components like head works (dam and/or barrage), main and branch canals and/or major distributions are managed by government organizations The components of the canal system like distributaries and minors are managed either by government organizations or by beneficianes/stakeholders. However, small systems like water courses and field canals are entirely operated and maintained by framers. The farmer organizations for irrigation management can be an important means of ensuring good system performance On large systems major components are controlled Water Works Design & Supervision Enterprise Id Association with Inierconttnenial Consultants and Technocrats Pvt Ltd. 14Ar jo Dedcssa Irrigation Project Organization and Management Study _May2007_ and managed by Irrigation Departments However, at tower system levels farmers organizations can perform the following functions a) Water allocation, i e , deciding now water will be distributed b) Water distribution, i.e., actually managing water flows c) Maintaining smaller channels and structures d) Solving disputes e) Collecting water charges For larger systems a public agency accountable to the water users is required wnich operate the mam system in consultation with the user groups so that an adequate water supply is delivered periodically and reliably to channel headwork through the command area of the system Below this headwork the relevant water user group would be responsible for day-to-day operation and maintenance activities. Beyond operating and maintaining the mam systems facilities, the agency aiso should have a role to provide technical assistances and occasional financial and other aid for emergency repairs or significant modernization programs. 3.3 institutions and Stake holders Analysis In general, the major partners in irrigation schemes worldwide are the following: 3.3.1 The State The state can be viewed at federal, regional, and local level. The roles the state at different levels plays are very crucial in bringing about sustainable development through different development programs, including irrigation schemes. The state ar national level should create a national strategy and enabling environment within which successful projects can develop The federal government, through its respective line ministry, Ministry of Water Resources, is responsible for acquiring the bulk of the capital investment both for the pnysicai investment and human capital development. The ministry is also responsible for large scale irrigation scheme identification, planning ano design, contract supervision facilitation ano community mobilization in cooperation with regional and local authorities, training of users in operation and maintenance of the system, and for providing technical advisory services Water Works Design & Supervision Enterprise 15 Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study 3.3.2 Non Governmental Organizations (NGOs) May 2007 NGOs can facilitate development at district and community levels. Sometimes they are employed on contractual oasis through the local authority to assist for institutional capacity Duilding at village level; formulation of social contracts, constitutions and bye-laws, community mobilization ano participatory planning; provision of training courses, contract supervision on benalf of the community: ana provision of contracting services for scheme construction and upgrading. 3.3.3 The Private Sector Private firms and individuals at district ana community levels can be employed on contractual basis througn the local authorities or NGOs or the community to provide design and construction services, training courses, agncultural inputs such as seeds, fertilizer and pesticides, to pilot marKeting arrangements, etc 3.3.4 The Community The users have an important role to play in developmental works. They should take initiative and responsibility for the development of their schemes, to make effective use of the services provided, ana to assume responsibility for ownership, operation, maintenance and payment for their water use. 3.4 Current Governance Structure in Ethiopia for Irrigation Management Ethiopia nowadays follows the decentralized system of governance. The Federal Ministry of Water Resources is responsible for overall supervision and policy issues related to large scale water resource developments and trans-regional and trans-national rivers. The Ministry is also in charge of conducting trans-boundary ana trans-regional river basin master plan studies and the preparation, detailed design and construction up to implementation of large scale water resources projects based on the identification under the master plan. As such projects entail huge financial outlays and hence raising of foreign funds through credit and financial aid, the responsibility for securing, negotiating and administering the proper spending of the fund is entrusted to the Federal Ministry of Water Resources The Federal Water Works Design and Supervision Enterprise (WWDSE) is responsible for conducting studies related to water resources development (reconnaissance master plan pre-feasibility feasibility) and the design and contract supervision of irrigation systems and Water Works Design & Supervision Enterprise 16 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 other water resources development works Water Works Design and Supervision Enterprises are also currently opened in regional states like Oromia to perform small water resources development studies, design and supervision under the regions jurisdiction Water Works Construction Enterprise is another government institution which plays a role in the construction of major water resources aevelopment structures (irrigation, potable water supply Water for industry etc.). Such enterprises are also established and operating in regional states like Oromia and Amhara. Regional and local governments have also a very important stake in development projects Regional governments througn the respective bureaus such as Water Resources Bureau, Irrigation Development Authority, Agricultural and Rjral Development, Environmental Protection and Rural Land Administration, and others are responsible for devising regional policies and strategies, for creating conducive environment and for providing the required technical supports. Since Regional States are autonomous in their internal affairs, the way different sectoral Bureaus are organized in different regions could be different though in most cases, there are similarities than differences. Such differences are evidenced, for example, in the way water resources bureaus are organized in Oromia and Amnara Regions. Unlike in Amhara, wnere Water Resources Bureau is in charge of Irrigation Development as well as waler supply, there is an independent authority, i.e.. Irrigation Development Authority, to look after irrigation development in Oromia. Accordingly, small scale irrigation development functions including the study, design and supervision, maintenance, control of water-borne diseases related to irrigation are entrusted to the Irrigation Development Authority. At present Irrigation Development Authority have branch offices at Zonal and Woreoa levels. The Zonal offices are established in four especial zones, i.e., Central Branch (Adama), Eastern Branch (Harar), Western Branch (Nekemte), and Southern Eranch (Bale- Robe). Where there are no Special Zones, there are Zonal Imgation Development Bureaus The organization of Oromia Irrigation Development Authority is indicated in Fig.3 1 Water Works Design & Supervision Enterprise 17 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management StudyMay2007_ Figure 3.1: The Organization of Oromia irrigation Development Authority. z > Study & Design Department z> Supervision Deoartment . z X Water Mgmt & . Extension Dept., Z------------------------------------ Water Resource . Studies Dept. . The Regional Agriculture ana Rural Development Bureau is responsible for agricultural extension services, the supply of agnculturai inputs, etc. Environmental Protection and Rural Lana Administration is another stakeholder responsible for sustainable developmental activities and the administration of rural lands. There are also other stake holders like the Water Works Construction Enterprise, Cooperatives Coordination Office, Women's Affairs and Zone and Woreda Administration Locai/woreda authorities are also the main actors in facilitating the development process through organizing the community - the main stakeholders 3.5 The Experience of Small Scale Irrigation Schemes in Oromia Weddecha ana Belbeia are small scale irrigation schemes located in Ada’aa Woreda of East Shawa Zone. These two irrigation scheme are built about 25 years ago, during the Derg regime. According to the views of the local people, traditional irrigation systems are in existence for generations in that area ana it is in support of this local knowledge and experience that the dam located at aDout 30 Km from Godino and Goha Warqu Kebele, the owner and main oeneficiaries of the irrigation, is constructed. The location of the dam is far away from the present owners, on the jomt/boundaries of the three waradas - Sandafa, Gimbichu ana Ada’a There is no river flowing into the dam during dry season. The source of the water in the dam is only rain. The volume of the water in the dam is, therefore, dependent upon the amount of rain and the level of usage Since the numbers of users are increasing from time to time, the availability of water is highly decreasing in recent times Water Works Design & Supervision Enterprise 18 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 The inhabitants surrounding the dam have no any direct benefit from the scheme. The people in the nearby area, therefore, have resentments towards the scheme They have lost the grazing area for their cattle Their cattle are taken away by the swamp and the water during rainy seasons. For them, the scheme has negatively affected their livelihood This resentments by the people surrounding the dam, is creating problems on the safety of tne scneme. According to me water committee members and the Worada Agricultural and Rural Development Bureau, an intentional damage was caused to the scheme by unknown people some time ago and it was maintained Dy the assistance from the Oromia Irrigation Development Authority, Central Branch. The guard at the site also has complaints on the misconducts of the people in the area concerning the scheme It is evident that the people in the surroundings cannot use the irrigation scheme due to the topograpny However, this cannot De an excuse to deny them any sort of benefit from the water that directly or indirectly affects their everyday lives and has covered large area of their grazing and farm land. Such social costs/benefits need to be properly addressed during project preparation. There are a number of ways to enable the people in the surrounding areas to be benefited from the scneme and creating feeling of ownership. EnaDling them to use the water for drinking and irrigation through the use of water pump witn the necessary trainings and advice can reduce or eliminate such resentments. Establishing social services like clinics, schools that also make use of the water and benefits the local community is also one of the options available. The irrigation scheme is totally owned Dy the down stream farmers - Godino and Goha Warqu Farmers Associations. Currently there are about 170 family heads using the scheme in the two kebeles, according to the information of a committee member from Godino The irrigation scheme is managed by a committee of 7 members - Chairperson, Secretary, Accountant, Auditor and other tnree members The members of the committee provide free services and will be on duty for three years unless there is emergency condition in which the general meeting is called for reelection of some or all of the committee members Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 The users do all minor maintenance such as clearing canals and other simple maintenances. The worada Agriculture and Rural Development Bureau provides occasional advices to the farmers Major maintenances beyond the capacity of the local people and the worada Agriculture Bureau will be referred to the Oromia Irngation Deveiopment Authority, Central Branch (Aaama). Operation costs saiary for tne three guards of the dam and the Water Usage Controller which are hired by the water committee, and some other operation costs are paid from the revenue from the water charges. The rate of water charges are determined by the user s joint agreement. The current rate/practice is 10 birr per Qart a year, i.e , 40 birr per ha The revenue from the water charge is inadequate to cover extra costs other than the routine operation and maintenance costs, according to the information from the committee member The three guards are paid 100 Birr eacn a month while the Water Usage Controller is paid 250 Birr a month Both the guards and the controller are recruited by the committee themselves. There are also upper stream users like Kataba and Ghimbi Farmers Associations These two xebeles, nowever, are not using the scheme in an organized manner They didn’t form a committee to administer its usage, they don’t pay water charges - generally they are not responsible for the management of the scneme. But there is no ground for any one to deny their rights to use the scheme 3.6 The Experience of the Koga Irrigation Project Koga Irrigation Project, located in the Amhara National Regional State, is currently under construction. According to the information obtained from the project manager, about 7000 ha will be cultivated using the irrigation scheme. The fund for construction of the project is obtained from the African Deveiopment Bank through long term loans and grants Chinese contractor is carrying out the construction of the scheme at present. 3.6.1 Steering Committee The organizational structure for the Birr ana Koga Project, as proposed in the Feasibility Study, indicates that both projects would be supervised under a single project management, a Steering Committee to be established at regional level. The regional administration would Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 2®Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 provide directions to the project through this committee. The composition of the steering committee, as provided in the proposal is as follows: Mead, Production ana Construction Sector of the Region Chairman Agricultural Bureau head Natural Resources Bureau Head Public Works Health Bureau Bureau Heaa Finance Bureau Member Member Member Member Member Planning and Economic Development Bureau Member Current practices, however show a slightly different structure with a major deviation in reporting relationship from what was originally proposea. The project is, in practice, under the direct supervision of Ministry of Water Resources, through a coordinating office establisned unaer the Ministry. The relationship Detween the Amhara Water Resources Bureau and the Koga Project Site office in Bahir Dar is loose. The regional steering committee which was recommended to play a supervisory role, is now serving as an agent for the main steering committee under the Ministry of Water Resources 3.6.2 Functions of Project Coordination Office The Koga Project Coordination Office under the Ministry of Water Resources, in addition to its supervisory role, is also a facilitator, in charge of fund administration including transferring funds to the project, communicating with relevant authorities such as Ministry of Finance and Economic Cooperation and the funding agencies for the release of funds. Functions like coordinating training programs for capacity building through grants from the African Development Bank, recruiting technical and professional project staffs and providing other administrative supports are also performed by the project office in Addis The Koga Project Coordination Office is currently staffed with a Project Coordinator, a Secretary, a Water Resources Engineer an Irrigation Engineer, an Economist (Monitoring and Evaluation Officer), a Training Officer and a Liaison Officer 3.6.3 Project Site Office The site project office, which is based in Bahir Dar. is responsible for the design, implementation, and for coordinating the construction phase. The coordinating and facilitating activities of the site project office includes functions such as follow up the Water Works Design & Supervision Enterprise 21 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 activities of the consultant/construction supervision, coordinating all stakeholders in the region sucn as Water Resources Bureau, Agriculture and Rural Development, Cooperatives Coordination Office, Environmental Protection and Land Administration Bureau. Women’s Affairs, the Woreda Administration, and Zone Administration, for the proper implementation of the project Identifying individual holdings requiring compensation, communicating with the relevant authorities for resettling those individuals/families to be moved from construction sites, and handing over freed lands to the contractor are also some of the responsibilities of the site project office The regional steering committee's major role is to create an enabling environment for the smooth flow of information and cooperation among stakeholders and the project site office. The proposed organization structure for the Birr and Koga Irrigation Project, in the Amhara Region, as given in the feasibility study, is indicated Fig 3.2. The organization structure proposed for Birr and Koga Project is divided in two phases, pre implementation ano implementation phases However, the proposal doesn’t depict what would be the organization of the irrigation project during post implementation phase, i.e during operation and management phase The detailed organization structure for pre- implementation and implementation phase, for Birr and Koga is indicated in Fig. 3.3 Water Works Design & Supervision Enterprise 22 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study Figure 3.2: Proposed Organization Structure for Birr and Koga Project in the Amhara Region. May 2007 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 23Arjo Dedessa Irrigation Project Organization and Management Study May 2007 Figure 3.3: Proposed Organization Structure for the Koga Irrigation Project Water Works Design & Supervision Enterprise 24 In Association with Intercontinental Consultants and Technocrats Pvt. Ltd.Arjo Dedessa Irrigation Project Organization and Management Study 4. PROPOSED ORGANIZATION AND MANAGEMENT 4.1 Project Phase The Organization and Management options for Arjo-diddessa Irrigation Project are seen in two major pnases: (i) Planning, aesign and Implementation Phase; and (ii) Operation and Management Phase 4.1.1 Phase I: Planning, Design and Implementation This pnase is divided into two: Pre-construction phase and construction and implementation phase During the pre-construction phase, the following work would be carried out: • Resource mobilization • Detailed ana final design preparation • Preparation of tender documents for construction of the scheme • Preparation of frameworks for farmer participation • Conducting land negotiations and formulating resettlement plans • Liaisonmg with funding agencies • Recruitment and training of project staff The construction and implementation pnase encompasses the period over which the actual construction is carried out and completed Defore operation commences. This phase involves administration of contract, supervision of contract works, quality control, and monitoring and evaluation, establishment of WUA. the provision of extension and other project services shall commence and all the necessary technical assistances and trainings for the operation and maintenance of the system will be undertaken intensively to facilitate the timely nandover of the system’s operation and management at quaternary and tertiary level to the Water Users Associations (WUAs). 4.1.1.1 Proposed Organization Structure Ownership and management responsibilities are entirely entrusted to the Federal Ministry of Water Resources at this phase of the project. The Ministry is. therefore, responsible for the overall management of the project through an independent project coordinating office for the preparatory works, detailed design and construction activities. The Ministry is also mandated for securing the necessary budget/fund for the project and for negotiating with funding agencies. Upon securing the necessary fund from internal and external sources, the Ministry will hire consultants and contractors for the design, supervision and construction of the irrigation scheme. Water Works Design & Supervision Enterprise 25 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 Tne current organization of the Koga Irrigation Project is designed on the basis of the above roles assigned to the Ministry of Water Resources by making the necessary adjustments on the proposed organization structure for the project Among the adjustments made is the establishment of steering committee and project coordination office at federal level under the Ministry The long hierarchies at regional level including the General Manager and Regional Development Executive Committee are, therefore replaced by the Federal level executive committee and the Ministry of Water Resources, the supreme supervisory body. This revised structure of the Koga Project is. therefore, recommended with some modifications for the preparation and implementation phases of the Arjo-didoessa Irrigation Project. Accordingly an independent Project Coordination Office similar to the Koga Project will be establisneo under the Ministry of Water Resources (MoWR) with its office in Addis. The Extension and Agricultural Services Departments which were separately proposed for the Koga project have been merged together under the current proposal for Arjo-Diddessa Project, because these two services are support services to be given by the Bureau of Agriculture and Rural development at full scale. The unit under the project only indicates temporary assignments to the project from the concerned Bureau for providing extension services ano agncultural advices in the irrigation command area The Audit Service proposed for the Koga Project has been cancelled under the current proposal since placing an Auditor in the Site Project Manger office is enough for this purpose The Project Coordination Office will be responsible for overseeing the proper project implementation and fund administration - transfer of funds, negotiating for release of funds with relevant government authonties and donors, investigating requests from the project office and taking decisions or forwarding proposals for the higher authority For this a competent and qualified Project Coordinator will be assigned or hired Additional technical and support staffs will also be assigned or hired as required under the Project Coordinator There will be a Project Office based in Jimma Arjc to coordinate and closely supervise project implementation The Project Site Office will be directly responsible to the Project Coordinator under the Ministry and will carry out both pre-construction/preparatory works and activities during construction up to final transfer of the scheme to the Regional Authority Such functions include coordinating and facilitating local resource mobilization, Water Works Design & Supervision Enterprise 26 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 detailed design preparation, tender document for construction, preparing frameworks for continuous participation of local communities in project planning, development and operation, organizing water users associations in coordination with relevant Woreda level sector bureau and Woreda administration, land negotiations and resettlement plans and recruiting and training local project staffs. The site office also will also perform functions such as follow up the activities of the consultant/construction supervision, coordinating all stakeholders in the region such as Water Resources Bureau, Agriculture and Rural Development. Cooperatives Coordination Office, Environmental Protection and Land Administration Bureau, Women’s Affairs, the Woreaa Administration and Zone Administration, etc for the proper implementation of the project. Identifying individual holdings requiring compensation, communicating with the relevant authorities for resettling those individuals/families to be moved from construction sites, ana handing over freed lanas to the contractor are also some of the responsibilities of tne Project Office. The proposed organizational structure chart and required manpower of the Project Office for planning, oesign and implementation phase for Arjo-Diddessa irrigation Project is given in Fig 4.1 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 27Ar Jo Dedessa Irrigation Project Organization and Management Study May 2007 Figure 4.1: Proposed Organization Structure for the Planning, Design and Implementation Phase 4.1.1.2 Manpower Requirement for Phase I The manpower requirement for Phase I: planning, design and implementation phase for Arjo-Diddessa irrigation Project is estimated based on the expenence of the Koga Irrigation Project which is currently operational. The estimated manpower as per the above organizational structure is given in Table 4.1. Water Works Design & Supervision Enterprise 28 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study Table 4.1 Manpower Requirement for phase I: the Planning, Design and Implementation May 2007 Minimum Requirement Location/Job Title # Education Experience Salary Estimate 1 Proiect Coordination Office 1.1 Project Coordinator 1.2 Engineer 1 3 Economist 1.4Trainmg Coordinator 1 5 Secretary 1 1 1 1 1 BSc .Civil/lrrigation Engineenng 12 Years BSc .Civil/Irrigation Engineering 10Years BA, Economics 10Years BA, Management 10Years Diploma Secretarial Science 6 years 4000 3500 3000 3000 1500 2 Proiect Site Office 2.1 Project Manager 2.2 Secretary 2.3 Auditor 1 1 1 BSc Civil/lrngation Engineering 10 years Diploma, Secretarial Science 6 years BA, Accounting 8 years 3500 1500 2500 3 Admin and Finance Unit 3.1 Project Admin & Finance 3 2 Financed Officer 3.3Accounts Clerk 3 4Cashier 3 5 Personnel & Record Clerk 3.6Purchaser/General Serv 3.7 Driver 3 8Guara 3.9Cleaner 3.10 Office Boy/Girl 1 1 1 1 1 1 R R 2 1 BA, Management 10 years BA, Accounting 8 years Diploma Accounting 6 years 12+1 10+1 6 years Diploma, Management 6 years Diploma, Management 6 years Grade 8 3 gr driving license 4 years r0 Litrate, and operate hand gun Read and write 1 years Read and write 2 years 3000 2500 1500 1000 1500 1500 700 250 200 200 4 Plannmq. M & E Team 4 1 Team Leader 4.2 Watershed Mgmt Eng 4 3Agricultural Economist 1 1 1 BSc, Civil Engineer BSc, Civil/Water Resource Eng BSc Agncultural Economics 10/12 yrs 8 years 8 years 3500 3000 2700 5 Irnqation Enqineennq Team 5.1 Team Leader 5.2 Irrigation Engineer 5.3 Surveyor 1 1 1 BSc, Civil/lrrigation Engineer BSc, Civil/lrrigation Engineer Surveyor 10 years 8 years 10 years 3500 3000 2700 6 Contract Admin Team 6 1 Team Leader 6 2 irrigation Engineer 1 1 BSc, Civil Engineer or Economist BSc Civil /Irrigation Engineer 10/12 yrs 10 years 3500 3000 7 Aqricultural Extension and Community Coordination T 71 Team Leader 7 2 Community Organizer 7.3Agriculturalist R = As Required 1 1 1 BSc, Social Work/Agriculture BSc, Social Work BSc, Agriculture 12 years 10 years 10 years 3500 3000 3000 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 29Ar Jo Dedessa Irrigation Project Organization and Management Study May_20Q7_ 4.1.1.3 Functional Description of the Proposed Organizational Structure (i) The Federal Steering Committee The federal steering committee is responsible for the overall management of the project. It also serves as advisory body for the highest decision making body - the Ministry of Water Resources In particular it performs the following: • Attracts screens ano selects a project coordinator and other professional and administrative staffs for the project coordinator office and the site office and submits proposals to the Ministry for final approval. • Evaluates progress reports and other periodic reports of the project, make the necessary comments and amendments and submits to the higher authority those requiring decisions. • Evaluates project performance through pre-established evaluation measures or standards and/or other means as deemed necessary and submits evaluation results for the decision of the higher body • Evaluates periodic budget requests from site offices and submits proposals to the Ministry • Evaluates consultant reports on construction progress and requests for payment from the consultant and tne contractor and submits proposals to the Ministry • Evaluates reports from regional steering committee and submits proposals to the Ministry for approval (ii) The Regional Steering Committee The members will be drawn from major stakeholders like the Regional Irrigation Development Authority, Water Resources Bureau. Agricultural Bureau, Environment and Land Use, Women s Affairs, Cooperatives Coordination. Health, and Bureau of Finance The Oromia Regional State will appoint the board members and the chairman. Preferably the chairman would be the Water Resources Bureau Head The regional Steenng committee will act as a branch office for the federal steering committee and will closely supervise the site project office In particular, the committee will perform the following major functions. • Evaluation of matters related to local disputes concerning the scheme, closely works with local and regional authorities to peacefully resolve such problems Water Works Design & Supervision Enterprise 30 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dcdessa Irrigation Project Organization and Management Study May 2007 • Submission of reports requiring tne federal level decision to the federal steering committee • Resolving conflict of interests between the different regional Dureaus concerning the project • Working closely with the site project office in mobilizing the local community’s participation during lana negotiations, determining resettlement requirements, and nanding over project site to contractors for construction. • Liaisoning between the project management and the beneficiaries • Performing other related functions as directed by the regional administrator (iii) The Project Coordination Office The project coordination office will oe responsible for overseeing the proper project implementation and fund administration, overall management, facilitating smooth communication between the donors and the supervisory body, the Ministry of Water Resources. In particular, the Coordination office will be responsible for • Administration and Transfer of funds negotiating for release of funds with relevant government authorities ana donors, • Scrutiny of requests from the project office ana forwarding decision proposals on the same for consideration of the higher authority • Monitonng and evaluation of the construction activities and supervision works • Reviewing ana evaluation of consultant’s reports and forwarding proposals to the higher authority • In coordination with regional stakeholders and steering committee, conducting long term and short-term training need assessments and coordinate its implementation • Administration of funds for capacity building of staff as well as beneficiaries training • Liaison between the site project office and the Ministry of Water Resources the owner of the project. • Performance of other reiatea functions as directed by the Ministry. (iv) The Site Project Office The Site Project Office will directly report to the Project Coordinator under the Ministry and will be responsible for close coordination and facilitation of the project planning, design and implementation and in particular will perform the following activities • Coordination and close supervision of project planning, design and implementation. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Lid. 31Ar Jo Dedessa Irrigation Project Organization and Management Study May 2007 • Carrying out Doth pre-construction/preparatory works and activities during construction up to final transfer of the scheme to the Regional Authority • Coordination and facilitation of local resource mobilization, detailed planning, design preparation of tender document for construction • Preparation of frameworks for continuous participation of local communities in project planning, development and operation, • Organizing Water Users Associations (WUA), land negotiations and resettlement plans • Recruiting and training iocal project staffs • Following up the activities of the consultant/construction supervision, • Coordination of all stakeholders in the region such as Water Resources Bureau, Agriculture and Rural Development. Cooperatives Coordination Office, Environmental Protection and Land Administration Bureau, Women’s Affairs, the Woreaa Administration and Zone Administration etc. for the proper implementation of the project • identifying individual holdings requiring compensation. • Communicating with the relevant authorities for resettling those individuals/families to be moved from construction sites, and • Handing over freed lands to the contractor • Evaluation of consultants repons and make payment approvals for the contractor • Conducting other related activities as directed by the Project Coordinator and/or the Regional Steering Committee (v) Administration and Finance Unit The Administration and Finance Unit of the site project office will be responsible for administering the numan, financial and material resources of the project and will ensure the timely preparation of financial reports, and proper utilization of project finance transferred to the project office The unit in particular will perform the following • Planning, organizing, coordinating and controlling the proper utilization of the human, financial and materials resources of the project. • Administration of the project finance in accordance with the requirement of the project owner and fmancer and submission of periodic financial reports to all concerned. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 32Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 • Ensuring timely preparation of periodic and annual financial reports of the project, checks for accuracy and report to management and donor organizations. • Recruitment of local staffs within the mandate given to the Project Office payment of salaries ana benefits according to the rules and procedures established for the project administration. • Follow jp the timely transfer of project funds from the Project Coordination Office, and its timely deposit in respective bank accounts. • Controi of project budget ana their utilization, ensunng proper fund utilization for intendea project activities • Ensunng that financial aocuments are well organized, maintained at a safe place, protected from any loss and damage and filed properly, • Organizing complete personnel record, ensuring that they are kept in safe place and protectea from any damage and loss. • Ensuring the fulfillment of logistic services to support project implementation and control their efficient utilization. • Effect small procurement of goods and services within the limits provided by the Project Coordination Office • Performance of other related functions as directed by the site project manager (vi) Planning, Monitoring and Evaluation Unit The Planning, follow-up and Evaluation Unit will be responsible for project planning monitonng and evaluation functions, developing monitoring and evaluation standards systems and indicators, monitoring and evaluation of project implementation, planning project budgets ana activities, preparation of monitoring and evaluation schedule The Unit in particular will perform the following • Evolving systems and procedures for project planning, monitoring and evaluation and ensuring its implementation • Preparation of semi annual, annual, short and long term activity and budgetary plan of the project. • Follow up and monitoring the proper implementation of the project plans and report to concerned authorities. Water Works Design & Supervision Enterprise 33 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study jfay2QQ7_ • Undertake project monitoring on project sites to ensure that projects are being implemented in accordance with designs, standards and the pre-set objectives and goals • Suggest remedial measures for any deviation and shortfalls observed on the project implementation. • Conduct mid-term and post implementation evaluation of projects together with concernea stakeholders using established standard evaluation procedures and indicators identify impact of the project, ano report on the finding. • Study the existing evaluation methodology and indicators, identify weaknesses and gaps, and suggest measures for updating and improvement. • Follow up and expedite project monitoring ano evaluation with well designed M&E schedule, make effective communication with stakeholders in order to undertake coordinated and planned M&E. • Prepare periodic and annual program performance reports and submit to the concerned authorities. • Undertake other activities as directed by the Site Project Manager (vii) Engineering Unit The Engineering Unit will be responsible for assisting the consultant and the contractor on technical/engineering activities, for evaluating contractors and consultants reports and proposing payment approvals revising the locations/ site delineation at the time of handing over the site to contractors, conducting surveys to delineate and quantify individual holdings within the reservoir ana command area. The Engineering Unit in particular will perform the following operations • Review aesigns, drawings and related documents of the dam and canal works and make the updates whenever considered necessary • Review specifications, bill of quantities ana tender documents and recommends the required changes. • Review and recommend contract assignment and sub-letting of works • Review engineers cost estimates of the dam ana irrigation systems • Review and update contract documents • Make site visits and prepare monthly construction progress reports • Review and recommend variation orders Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvt Ltd. 34Arjo Dedessa Irrigation Project Organization and Management Study May 2007 • Advise on claims ana dispute settlements, extension of time and nomination of sub contractors • Prepare completion reports and certify provisional acceptance from contractors • Approve payments for site workers hired Dy the project (viii) Contract Administration Unit The Contract Administration Unit will be primarily responsible for ensuring whether the consultant and the contractor are properly discharging their responsibilities, for following up the timely preparation of supervision reports, and adherence to the contract agreement. The Unit in particular will do the following: • Ensure the timely preparation of specifications, bill of quantities and tender documents • Ensure timely preparation of engineers cost estimate • Ensure that the construction of the project is being carried out in accordance with the designs and specifications • Control ana ensure quality of workmanship for civil works and equipments • Ensure that tne construction ana supervision work is being carried out in accordance with the contract agreement • Prepare technical proposals as well as proposals for resolving claims and disputes. (ix) Agricultural Extension and Community Coordination Unit This team will responsible for providing assistance and advice to the community/the farmers in proper utilization of irrigation water, modern farming, inputs utilization, ana cultivation practices providing training and experience sharing, organizing the farmers in water users associations etc in particular the Unit will be responsible for the following • Providing assistance and advice to water user’s association members and other farmers in the area of water utilization; improved farming methods, selected seeds and other inputs • Providing guidance and technical advices to the community to form associations, assisting in formulating legal and procedural works to establish such association, i.e, preparation of establishment protocol, administrative guidelines, and establishment of water service providers (WSP) • Providing trainings and clarifications on the relationship between WUA management board and the WSP, Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 35Arjo Dedessa Irrigation Project Organization and Management Study May 2007 • Assisting in legal and procedural works to establish such association t e preparation of establishment protocol, administrative guidelines, and establishment of water service providers (WSP) • Provides training on the preparation of contract documents to be used as reference between WUA and WSP and other related activities • Training and eaucating the local representatives in the management, operation and maintenance of irrigation systems, proper water usage, and other related matters • Performance of other related functions as directed by the project manager 4.2 Phase II: Operation and Maintenance Phase il relates to the period during which the scheme fully or partially becomes operational ana is transferred to the Oromia Irrigation Development from the Ministry of Water Resources operated and managed by the Authority and the local farmers Upon completion of the construction phase (Phase I), the Ministry of Waler Resources will transfer the site project office with its facilities and manpower and the irrigation scheme to the Oromia Irrigation Development Authority The project under the guidance ana support of the Irngation Development Authority tn particular and the relevant stakeholders in general will continue to provide technical supports and advices to the Water Users Associations (WUA) in the command area organize trainings and experience sharing programs, and enhances the confidence of the local people in the scheme through various awareness creation programs The Irrigation Development Authority will closely supervise and provide all the necessary budget, manpower and supports required for running the project The Authority will also be responsible for the operation and maintenance of the scheme, by involving local people Providing on-the-job training to enhance the capacity of locals to operate and maintain the scheme, establishing sustainable ana appropriate water charge, and fee collection systems will be among the major functions of the Irrigation Development Authority The Authority will also have the responsibility of building up the local community’s capacity for future management, operation and maintenance of the scheme through providing continuous on job training locally or abroad, transfer experience of elected members of the peasanVwater users associations facilitating of visits to areas with established water users associations Water Works Design & Supervision Enterprise Id Association with Intercontinontal Consultants and Technocrats Pvt LtdAr Jo Dedessa Irrigation Project Organization and Management Study May 2007 The Agricultural ana Rural Development Bureau will be responsible for providing effective extension services, for improved and modern farming for intensively irrigated agricultural system and water management in the field of irngation and advices on input supply such as selected seeds pesticides, fertilizer, etc. These functions will be carried out through assigning appropriate staff from the respective bureaus The proposed organization of the project for Phase II (operation and maintenance) will be as given in Fig. 4.2. 4.2.1 Manpower Requirement for Phase II: Operation and Maintenance The number of manpower required and the skill needed depend on the size of the scheme, the method of water distribution and the number and size of the farms. The proposed manpower for Arjo-Diadessa irrigation project is. therefore, might be revised and amended cased on the above operational requirements during the actual operation and maintenance Irngation operation staffs commonly required in large irrigation projects are Gate Operators. Pump Operators (when water pumps are used). Water Guards. Irrigation Assistants (Supenntendents), and Irrigation Engineers As large scale irrigation farms are new to Ethiopia, there is no domestic experience to be used as a base for estimating the manpower requirement. According to literature1 however, each Water Guard can look after 100 to 150 ha or more, depending on the type of system and the size and number of farms. An Irrigation Assistant can supervise four or more Water Guards covering about 500 ha. An irngation Engineer on the other hand, could be responsible for up to 2000 to 2500 ha or more. Depending on the above assumptions, the manpower requirement for operation and maintenance, management and support services are provided in Table 4.2. Melvyn Kay. Surface Irrigation Systems and Practice. Cranfield Press, England (1986) Water Works Design & Supervision Enterprise 3 7 In Association with Intercontinental Consultants and Technocrats Pvt. Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study Figure 4.2: Proposed Organization Structure for Phase II: Operation and Maintenance Phase May 2007 Water Works Design & Supervision Enterprise 38 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study Table 4.2: Manpower Requirement for Phase II: Operation and Maintenance May 2007 Minimum Requirement Job Titie/Location # Education Experience Salary Estimate 1 Proiect Manaqer’s Office 1 1 General Manger 1 2 Secretary 1 1 Irrigation/Civil Eng., BSc Secretarial Science Dip. 8 years 2 years 3500 1500 2 Operation Department 2.1 Department Manager 2 2 Irrigation Engineer 2.3 irrigation Assistant 2.4 Water Guard 2 5 Gate/Canai Operator 2 6 Reserve Weir operator 2.7 Main Canai Operator 1 2 10 30 R R R Irrigation/Civil Eng, BSc Irrigation/Civil Eng, BSc Irrigation, Diploma Grade 6. and training irrig Grade 6. and training Grade 6,and training Grade 6 and training 6 years 4 years 4 years 0 years 0 years 0 years 0 years 3200 3200 2500 500 400 400 400 3 Maintenance Department 3.1 Department Manager 3.2 Civil Engineer 3 3 Mechanical Engineer 3.4 Electrical Engineer 3.5 Maintenance Supervisor 3 6 Excavator Operator 3.7 Dozer Operator 3.8 Motor Grader Operator 3 9 Roller Operator 3.10Low Bed Operator 3 11 Small Crane Operator 3.12Heavy Truck 3 13Pick-Up truck Driver 3.14Semor Mechanic 3 l5Mechamc 3 16 Weiders 3 17 Carpenter 3 18 LaDorer 1 Mecnamcal/Civil Eng, BSc 1 Civil Engineer BSc 1 Mechanical Engineer, BSc 1 Electrical Eng, BSc 2 Irrigation Eng Diploma R 8,hGrade,appropriate license lh R 8 Graae,appropriate license 1/1 R 8 Grade,appropriate license R 8,hGraae,appropnate license lh R 8 Grade,appropnate license R 8,hGrade.appropriate license lh R 8 Grade,appropnate license th R 8 Grade,appropriate license th R 8 grade, driving license R Mechanic, Diploma 2 Welding, Diploma 4 Carpenter trainmg/experience R- 6 years 4 years 4 years 4 years 6 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 2 years 6 years 2 years 2 years 6 years - 3000 3200 3200 3200 2500 1000 1000 1000 600 1000 400 1000 500 1000 700 700 500 Daily 4 Aqnculturai Extension Dept. 4.1 Department Manager 4.2 Agronomist 4.3 Agricultural extension workers 4 3lrrigationExtension Workers 1 5 7 6 Agronomist, BSc Agronomist, BSc Agriculture, diploma Irrigation, diploma 6 4 2 2 3200 2700 2000 2000 5 Community Coordn and Training 5.1 Community Coordinator 5.2 Training coordinator 2 1 Social Work, BA Management, BA 6 4 3500 3200 6 Administration ana Finance Dept. 6.1 Department neaa 6.2 Secretary 6.3 Personnel Officer 6 4 Finance Officer 6.5 Clerk(personnel & Accounts) 6 6 Cashier 6 7 Driver Purchaser 6.8 Store Keeper 6 9 Janitor 6 10 Guard R= As Required 1 1 1 1 1 1 1 1 R R Management. BA Secretanal Science, certf. Management, diploma Accounting, diploma Secondary School Accounting, Certificate Secondary School, Driving Secondary School Read and Write Read & Write, operate gun 6 2 2 2 2 2 2 2 - - 3500 1000 1600 1600 700 700 700 700 200 250 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study 4.2.2 Functional Descriptions of the Proposed Organizational Structure May 2007 The project office will be responsible for organizing the community, for capacity building, providing assistance ana advices in agriculture and irrigation systems management, operation and maintenance of irrigation scnemes. In particular it will perform the following 4.2.2.1 Organizing Functions This includes advisory work for the need of organizing and strengthening WUA, preparation of the necessary legal ana procedural works to estaolish such association, i e.. preparation of establisnment protocol, administrative guidelines, and establishment of water service providers (WSP), the relationship between WUA management board and the WSP. preparation of contract documents to be used as reference oetween WUA and WSP, and other related activities These tasks are entrusted to the Community and Training Coordination Unit and will be the primary responsibility of the community organizer 4.2.2.2 Capacity Building This will include training and educating local representatives in the management, operation, and maintenance of irrigation systems, proper water usage, and other related matters. For capacitating the community, the training coordinator in coordination with other stakeholders, will organize on-the- job trainings, workshops, seminars, ana visits to established irrigation associations 4.2.2.3 Operation Functions The operation functions include the following major tasks • Maintenance of the irrigation system • Assessment of water requirements and water supply: • Conveyance and distribution of water; • Distribution of scarce water during water stress periods; • Drainage of excess water from fields and eventual reuse or removal Major operation staffs and their job descriptions are as follows: (i) Irrigation Engineer An Irrigation Engineer is responsible for the operation of the whole irngation system In particular he/she will perform the following: • Supervising irngation assistants • Preparing irngation plans Water Works Design & Supervision Enterprise 40 Io Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study May 2007 • Working closely with agricultural staff to plan the supply and demand for water • Reporting all maintenance needs to the maintenance department • Reporting to he general manger on the irrigation system and its future needs (ii) Irrigation Assistants The task of irrigation Assistants will be to coordinate the work of water Guards which include: • Collecting information from water guard on water requirements, maintenance needs and land preparation ana passing this to the Irrigation Engineer • Passing instructions on water allocations from the Irrigation Engineer to the water Guards • Organizing training courses for Water Guards, Gate Operators and irrigators. (iii) Water Guards Water Guards are tne main link between the engineers who operate the system and the irrigators in the field. Their major jobs will involve the following: • Helping irrigators with water management problems • Passing instructions to gate Operators • Collecting requests for water from irrigators • Reporting problems on land preparation and canal maintenance (iv) Gate Operator Gate Operator is responsible for adjusting the gates on head and cross regulators and canal outlets. Gate operators will normally work closely with the water guards who will pass on instructions to them about when to open or close canals or to change the flow Gate operators may also carryout routine maintenance on the gates such as greasing and removing trash which may cause blockage. 4.2.2.4 Maintenance functions This is the routine work which must be done to keep an irrigation scheme in proper working order It involves cleaning and repairing canals and drains, repairing structures and canal linings and cleaning and lubricating gates There are three types of maintenance (i) Routine Maintenance Routine maintenance refers to the simple ana regular jobs which are done as routine on fixed interval such as cleaning and greasing of gates, keeping structures clear of floating Water Works Design & Supervision Enterprise 41 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study debris and filling in small rain galleys on canal and drain embankments. (ii) Annual Maintenance May 2007 This is usually cleaning ana reshaping of canals and drains, repairs to structures and grading embankments to improve access roads, etc. This is done once in a tear (iii) Emergency These are problems that occur unexpectedly such as a canal bank breaching or gates jamming Normally machines and labor would be diverted from routine maintenance to nandle and emergency (iv) inspection An important pan of maintenance work is inspection. This is regular examination of canals, drains ana structures and the reporting of any problems to the group responsible for organizing maintenance. Day-to-day inspection of farm channel and water courses would normally be done by the irrigators. Distributaries, branch and main canals would be inspected by Gate Operators and irrigation system operating staff In addition to maintaining the irrigation and drainage system Maintenance Department is also responsible for maintaining its own machinery and equipment 4.2.2.5 Agricultural Extension The Agncultural Extension Department is responsible for providing assistance and advice to the community/the farmers in proper utilization of irrigation water, modern farming, inputs utilization, and cultivation practices providing training and experience sharing, organizing the farmers in water users associations etc. The Unit also provides advices in other areas of agriculture such as fishery, animal rearing, agricultural marketing and related functions like environmental protection. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 42Arjo Dedessa Irrigation Project Organization and Management Study 5. INTRODUCTION OF PARTICIPATORY IRRIGATION MANAGEMENT 5.1 Background May 2007 Irrigation deals with two most important natural resources - land and water With increasing pressure of explosively growing population, both these resources are becoming scarce day by day Significant conceptual changes have taken place in the field of irrigation dunng recent times although irrigation is practiced since time immemoriai. One of the significant changes in the field of irrigation is its transformation from subsistence to optimization Earlier, the objective of irrigation project was to protect the crop from the failure due to shortage or failure of rain and thereby provide subsistence to the farmers against famine, wnere as now it is intended to optimize the agricultural production from the available land and water resources. Another important conceptual change is regarding conservation of water by reducing the wastage/losses and improving the water use efficiency in order to meet the increasing demand of water for irrigation as well as that for other sectors Now it is being realized that a drop of water saved in one part can become a source of bread in another part of a country or a region. Participatory Irrigation Management (PIM) is expected to play a very important role to alleviate some of the deficiencies that prevail in the performance of irrigation projects It is considered worthwhile, therefore, to discuss in brief the conditions prevailing in the existing major irrigation projects, its major deficiencies and maladies in the background of the desirable characteristics as well as the expected performance of the irrigation projects This will help in appreciating the need for and the role of the PIM. 5.2 Important Features of Major Irrigation Projects Before discussing the introduction of PIM in Ajo-Diddessa Irrigation Project, it is considered relevant to discuss the important features/characteristics of major irngation projects which necessitate the introduction of PIM 5.2.1 Implementation of Major Irrigation Project by Government Water resources development projects in general and irrigation projects in particular act as a corner stone for all-round development of a region. It is generally planned, implemented Water Works Design & Supervision Enterprise 43 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management StudyMay2007_ and operated by government/public enterprise because of the following main reasons, besides others • The requirement of capital investment is very high • The gestation period is very long • The accrual of benefit is very slow • There are a large number of intangible benefits compared to tangible benefits. • Cost recovery is very siow and at times very poor • In view of increasing cost of operation and maintenance in most of the cases the project is not self-sustaining 5.2.2 Components of Major Irrigation Projects The main components/constituents of a major irrigation project are as follows (i) Head Works: This comprises dam in case of reservoir scheme and/or a barrage or weir in the case of run-off the river scheme. Sometimes it comprises both - a aam creating a reservoir and a weir or a barrage down stream of the dam from where the canals take off in case of Arjo-Diddessa irrigation system, the head work comprises a dam and canal systems take off directly from the dam. (ii) The canal system: This is another important component and it has the following elements: • Pnmary Canai (Distributaries) • Secondary Canal (Minors) • Tertiary Canals (Water Course) • Quaternary Canal (Field Channel) • Field Canals For the convenience of planning and operation the entire canal system has been broadly classified into the following two categories: a) Macro irrigation system - This comprises the primary and secondary canal systems b) Micro irrigation system - This comprises the irrigation system below secondary canals, i.e. tertiary and quaternary canals including the field canals It may be noted that while the primary canal plays the important role of conveymg/carrying the irrigation water inside the command area, the secondary canal helps in the distribution of irrigation water within all the parts of its command The most important and critical role of delivering the irrigation water to the fields of individual farmers is performed jointly by quaternary and field canals. The tertiary canals act as an interface between the macro and Water Works Design & Supervision Enterprise 44 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 micro irrigation systems and hence they are included in both the sub components for the purpose of planning, design and operation. It must be emphasized that interaction and involvement of real stakeholders — users of irrigation water, i.e., farmers is very essential and critical at micro irrigation level, though it is needed at macro level also but the level of interaction is of reduced magnitude. 5.2.3 Phases of Major Irrigation Project A major irrigation project passes through the following two phases. (i) implementation phase: This includes investigation, planning, design and construction. This is the initial period of the project and consumption of resources is very huge (ii) Operation and maintenance phase: At this phase the real accrual of benefits starts and continues throughout the life of the project. The requirement of fund is very small during the period as compared to implementation phase, but it is very critical as the quality of service to be delivered to the jsers (farmers) depends very much on the quality of maintenance of the irrigation system, in this phase the recovery of capital investment is also envisaged. Since the irrigation projects are implemented, maintained and operated by government agencies (public enterpnses) and services are to be finally delivered to the large number of farmers having small holdings, the interaction between the officials/managers or service providers and farmers (users of service) is very essential , which in present case is very poor or completely lacking 5.2.4 Desirable Characteristics of Irrigation Systems In order that the irrigation project performs satisfactorily and the accrual of benefit is as envisaged the following characteristics are desirable. (i) Reliability: The irrigation system should be reliable. This requires that the system snould be maintained well so that there is no disruption of service The system should be operated quite regularly (ii) Timeliness: The system should be able to supply quite in times as per the requirement of the crop so that optimum production is obtained. (iii) Adequacy: For optimum production, supply of irrigation in time is not enough Along with timely supply the irrigation water must be adequate to meet the requirement of crops. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 45Arjo Dedessa Irrigation Project Organization and Management Study May_2007_ (iv) Equitable Distribution: It is one of the most important characteristics The available irrigation water must be distributed equitably amongst the farmers (beneficiaries) in the entire command This characteristic assumes more importance during the shortage period. (v) Flexibility: There should be flexibility in the system to meet the situation arising out of sudden changes in demand or availability. It should also be capable to meet the requirement arising due to long range change in the system. 5.2.5 Maladies of Existing Major Irrigation Projects The performance evaluation of several existing irrigation projects in developing countries like India reveals tne following startling facts: (i) The development of irrigation (i.e. utilization of potential) is very slow and unsatisfactory Even after several years of full implementation of the project, entire area under the command (as envisaged in the project report) is not able to receive irrigation. (ii) The delay or lag in utilization of irrigation potential created at huge cost is having very adverse impact on overall national economy, besides the lack of accrual of benefit to the farmers in the command area. (iii) The water use efficiency is very low as there is huge water losses (iv) The distribution of water within the command area is not equitable - fields at the tail end of command area either do not receive adequate water or do not receive water at all. (v) The delivery of irrigation water is not to the requirement of crops and, therefore, the yields of crops is not optimum (vi) The system is not financially self sustaining. (vii) The canal system is not properly maintained as adequate fund is not available since the water rates are very low in view of poor paying capacity of the farmers in the absence of optimum yields of crops (viii) One of the main reasons for all these maladies is very poor or complete lack of interactions or involvement of local farmers - interaction between the real users of irrigation water and the officials/managers (service providers) of irrigation system Involvement of stakeholders - farmers in this case, in operation and management of the irrigation systems is considered essential as remedial measures for alleviating the maladies outlined above Water Works Design & Supervision Enterprise 46 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study 5.3 Development of irrigation in Major Irrigation Projects 5.3.1 Past Experience May 2007 Major irrigation projects are planned, designed, implemented, maintained and operated by the government agency or public enterprise. But the main objective of the project is to deliver irrigation water to the fields of each and every individual farmer. This task becomes very nuge and complex especially when the holdings are very small as it is the case in most of developing countries It is here that the role/involvement of farmers assumes greater importance. The experiences show that the development of irrigation takes a long time The process from when the scheme becomes ready to deliver irrigation water to the fields of individual farmers and it is able to cover the entire command as envisaged in the project report has been defined/termeo as Development of Irrigation. Since the task of constructing irrigation channels below quaternary canals is of very huge and complex magnitude because of large number of fragmented fields and small holdings of individual farmers, the government agency or public enterprise responsible for implementing and operating the irrigation projects limit their activities, in the beginning, to tertiary and quaternary canals, and subsequently the activities for expanding the micro irrigation system below tertiary canals are taken up which continues at very slow rate and takes a long time to complete the same in the entire command The experience in some of the major irrigation projects in Ethiopia, like Amibara and Metahara projects snow that small farmers were not involved as Amibara is a state farm and Metahara is owned and managed Dy sugar factory However, the experience in developing countries like India, where several major irrigation were completed as early as middle of the nineteenth century ano where a large number of major irrigation projects are being implemented for more than half a century, the development of irrigation is very slow and it acts as a major constraint for optimal accrual of benefits as envisaged from the project. The experiences in India show that earlier, when the major irrigation projects were implemented during the nineteenth century, the government agency responsible for implementation and operation of the project limited their activities for construction of irrigation channels up to a block of 200 ha. However, in view of delay, exorbitant delay in development of irrigation leading to delay in accrual of benefits notwithstanding the huge investment already made, and also in view of the urgent need for fast development of Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt. Ltd. 47Ar jo Dedessa Irrigation Project Organization and Management Study May 2007 irrigation benefits for economic reasons the size of 200 ha block was reduced to 100 ha which continued for some time and now this nas been reduced to 40 ha which is generally considered the command of quaternary canal (water course) The head regulator of water course (which is equivalent to quaternary canal) is popularly called as outlet 5.3.2 Outlet An outlet nas been defined as the last masonry structure on government owned canal system - minor (tertiary) canal and /or distributaries (secondary canal). It acts as the head regulator for the water course (quaternary canal). The government agency responsible for implementation, operation and maintenance of the system supplies irrigation water at this point to the group of farmers within the command of the outlet, i.e., the command of the water course (quaternary canal) The distribution is managed jointly by the farmers themselves Though the command area of outlet (and consequently its discharging capacity) depends on several factors - like soil type, slope of the land, type of crop, its water requirement and method of irrigation, the average command area is kept around 40 ha and the discharging capacity of the water course (quaternary canal) is kept around 30 to 60 liter /sec (1 to 2 cubic feet per second). The modern trend is to design a modular outlet depending on all the relevant factors In special case in highly sandy soil the capacity may be as high as 70 to 84 liter (2.5 to 3 cubic feet per second). The main consideration is that the capacity of water course (quaternary canal) should be such that the farmers are abie to manage the scheme by themselves conveniently and most efficiently. While a bigger size may result in unwanted wastage due to oversize, a small size will lead to inefficiency as water will not be able to flow fast and will trickle beiow resulting into losses. Though the delivery of irrigation water at outlet for use by farmers is the responsibility of the government agency in charge of operation and maintenance of the irrigation system: their responsibility does not stop there completely The government agency is expected to help and assist the farmers in managing and distributing the irrigation water among themselves The general concept prevailing at present is to provide channels so that canal water reaches a sub command of 5 to 8 ha within the command of water course These are constructed sometimes entirely at government or project cost; sometimes suitable grant is provided and sometimes left entirely to the beneficianes But in all cases technical guidance and assistance are provided by the government agency to the farmers for Water Works Design & Supervision Enterprise 48 In Association with Intercontinental Consultants and Technocrats Pvt. LtdArjo Dedessa Irrigation Project Organization and Management Study May 2007 planning, design and construction of the component inside the command of water course even though the cost is met by farmers themselves. In view of its role and importance in actual accrual of benefits and quality of irrigation service outlet has a key and pivotal position in PIM 5.3.3 On-Farm and Off-Farm Development Works The development of irrigation as discussed above takes a long time in normal way and the accrual of benefit is delayed causing adverse economic impacts In order to accelerate the development of irrigation the following two types of activities are required (i) On-Farm Development Works - This includes the following works a) Construction of water course (quaternary canal) and field channels - with associated structures like turn-out, road crossing if any, etc. b) Construction of field drains with the command of water course (quaternary canal) c) Construction of approach road right of way to facilitate individual farmers to reach their field d) Land leveling (ii) Off-Farm Development works - These relates to the infrastructural facilities for the following: a) Supplying and making available agricultural inputs like. • Seeds • Fertilizers • Insect sides b) Loan for working capital c) Facility for storage /processing and/or transportation d) Marketing of agricultural produce to help farmers in getting reasonable price While on-farm development works are taken care of by the government agency responsible for operation and maintenance of the system, off-farm development works which relates to infrastructural works are taken care of by other government agency due to the difficult nature of the activities On-farm and Off/farm development works are also very much linked with activities associated with PIM. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study 5.4 Experiences of PIM in other Countries 5.4.1 World Overview May 2007 The new paradigm of irrigation management can be called “usensm" or management control by the users in many countnes. The management of irrigation system is transferred to the local water users associations. In Latin America, irrigation agencies are transferring systems to users associations. In Eastern Europe water user associations are taking over management functions In Egypt and Morocco, strong irrigation Dureaucracies are encouraging the formation of water users associations to manage the secondary distribution system. In China, PIM has been an integral part of the irrigation sector for a number of years. In Indonesia, an existing management turnover program is being extended to units larger than 500 ha. In Pakistan, planning is underway to transfer irrigation management from government controlled system to farmers’ water users’ associations. The Philippines, Mexico and Turkey nave made significant progress in managing irrigation system by farmers. PIM is also getting importance in already existing or proposed irrigation systems in India and especial attention is being given for quick implementation of PIM. 5.4.2 The Philippines Case In Philippines PIM approacn began in 1970when president Marcos ordered the National Irrigation Administration to move towards self-financing. As a result, water users associations’ were formed at grass root level to take over operation, maintenance and to contribute to capital costs of investment of the system. Beginning in 1980, this organizing approach was applied to the state-run-systems that had no prior history of self management. Thus lot of improvement was made both through direct recovery of water fees and the replacement of some government functions by association's volunteers. In spite of all efforts only 5% of area has been formally transferred to water user associations The bulk of the area is still jointly managed by secondary level association. 5.4.3 The Mexico Case In Mexico dunng 1980’s when government faced extreme shortage of funds the state run management of irrigation systems was transferred to associations of users In 1990 Mexico transferred the first irrigation district to the users; by 1995 more than 75 % network was transferred to 316 irrigation associations As a result, the user’s organizations became financially self sufficient with users paying the fees to cover the costs of operations maintenance and administration The farmers initially reluctantly agreed for this new role Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 50Arjo Dedessa Irrigation Project Organization and Management Study MayjQQ7 However, many farmers who are commercially oriented agreed to take over entire system involving management, repair of system, etc For them it is a “win" situation and for the government as well. 5.4.4 The Turkeys Case In case of Turkey PIM is emerging as another example of dramatically rapid transfer of management responsibility from the government farmers. In Turkey the irngation policy has allowed tne transfer of irrigation systems to farmers since 1954 In 1993 government offered a more attractive pacxage to lure farmers into self-management and called the program as the Accelerated Transfer Program Any association that looks over full operation ana partial maintenance of the system would be excusea from any water fee The agency delivered water just below the head-works (usually a river diversion) and continue to provide eguipment for cleaning the main canals. The associations hire their own engineers and office staff and set their own operational plans Agency staffs that were displaced by the program were guaranteed reassignment. The results were impressive and within three years irrigation systems well transferred to 407 legally registered associations 5.4.5 The Pakistan Case On April 10, 2000, farmer organization in southern Punjab signed the histone Irngation Management Transfer (IMT) agreement. This was the first transfer in Pakistan and landmark in the irrigation management history of Pakistan. The government of Pakistan nas Deen introducing institutional restructuring in the irrigation and drainage sector with the aim of increasing farmers’ participation in system management. Pilot experiments on farmer organizations at distributaries level were initiated in early 1995. In the province of Punjab, the on-farm water management (OFWM) Department and International Irngation Management Institute (IIMl) undertook institutional reform experiment on three distributaries with financial assistance from the World Bank and the Royal Netherlands Government. The transfer agreement was singed by farmer's organizations (FOs) of the Sirjawah and Bhukan distributaries (organized by OFWAM) and the Harka 4-R distributary s (organized by 11 Ml) in southern Punjab. Officials from OFWM, INPLM and 11MI facilitated the negotiations on IMT Water Works Design & Supervision Enterprise 51 Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 After the I MT agreement, government staff were completely withdrawn from distributaries were farmers or organizations (FOs) were complete operation and maintenance (O & M) of the system and assessment and collection of tne irrigation fee through their own hire d staff At present, INPIM Pakistan has 245 registered members The membership covers a broad cross section of professionals and farmer members from government, NGOs, international and national research organizations and FOs. The PIM program nas also been implemented in other several countries like USA, Colombia, China, Vietnam, Holland, South Korea and Sri Lanka. 5.5 The India Case The introduction of PIM in India is being implemented on a very large scale. Since irrigation is a state subject in the country, the different state governments have enacted special laws to facilitate the speedy and effective implementation of PIM. Special funds are being made available and its implementation is monitored intensively by the central government. Several NGOs and international agencies are involved in the task. 5.6 Role of PIM in Arjo-Diddessa Irrigation Project Participatory irrigation Management (PIM) has assumed importance because of its role in improving the water use efficiency and quality of irrigation services in view of the followings • Huge financial requirement for irrigation sector • Increasing demand for other sectors • Overall scarcity of water Besides, there is a significant increase in demand for irrigation requirement as the irrigation facilities are being expanded considerably to meet the demand for the ever-growing population. PIM is also expected to play important role in improving the quality of irrigation services, which is essentially needed to obtain optimum agricultural production with available land and water resources as indicated in Fig 5.1 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 52Ar jo Dedessa Irrigation Project Organization and Management Study Figure 5.1 - Role of WUA in optimization of Agricultural Produces May 2007 The PIM is expected to perform the following tasks (i) Operation and maintenance of micro irrigation components (ii) Allocation of water among the farmers (iii) Actual distribution of water among the farmers in light of allocation (iv) Assessment and collection of water rates from the beneficiaries (v) Resolution of conflict among the farmers/beneficiaries (vi) Planning and implementation of plan for development/improvement/modernization of the already existing schemes. Water Works Design & Supervision Enterprise 53 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study 5.6 Introduction of PIM in Arjo-Diddesa Irrigation Project May 2007 In view of the role PIM is expected to piay in improving the water use efficiency and yield of irrigated crops, it is proposed to introduce the PIM into the proposed Arjo-Diddessa irrigation Project As discussed aoove, it is proposed to introduce the PIM at micro irrigation level Its organizational structure and other particulars are discussed below 5.6.1 Level of Organization 5.6.1.1 Outlet Level Tne pnmary or the lowest level of organization will be at outlet level. All the beneficiaries, i.e the farmers wnose land falls under the command of quaternary will become members of the General Assembly at outlet. The General Assembly will eiect Executive Committee comprising of five to seven members, which will manage the day-to-day affairs of the system The general body will also eiect two members to represent the outlet committee at the higher levels - one at tertiary canal and the other at secondary canal level. 5.6.1.2 Tertiary Level A tertiary level committee will be constituted with the elected members from all the outlets. This committee will manage the day-to-day work for the tertiary canal as outlet committee does for the quaternary canal. This will be responsible for resolving disputes out among farmers of different outlets. 5.6.1.3 Secondary Level A secondary Canal level committee will be constituted with elected members from all the outlets. The organization will be called Water Users Associations (WUA). All the elected members from the different outlets in the command of secondary canal will form a General Body of Water Jser Association. The General Body will elect an executive committee comprising of 5 to 7 members to manage the day-to-day affairs 5.6.1.4 Project Level There will be a project level committee of farmers’ representative having one elected member from each secondary level committee (Water User Associations). This committee will be responsible for: • Operation and maintenance • Water allocation • Resolution of conflict among different WUAs Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 54Arjo Dedessa Irrigation Project Organization and Management Study 5.6.2 Jurisdiction of WUA May 2007 in general the junsdictions of WUA should coincide with the jurisdiction of secondary canal However the area of WUA should not be too big or too small. A command area of 200 to 500 ha is considered quite suitable for WUA. The area under eacn WUA should be such that it is convenient to manage and at the same time it should be economically viable and self sustaining In case the command area of the secondary canal is less than 200 ha, it will be combined with other the secondary canal; and in case the command area of the secondary canal is very big (bigger than 500 ha), it will be divided into more than one WUA Dy adjustment of the command area with that of other adjoining secondary canal. In any case the area under WUA snould be clearly defined by hydraulic boundary and should form contiguous common area falling on omy one side of the primary and secondary canals 5.6.3 Organization of WUA The proposed WUAs may De organized jnder existing irrigation laws or cooperative society's laws Suitable modification or enactment may have to be made in light of the requirement for proper functioning of WUA. 5.6.4 Responsibilities of WUA The WUAs may be entrusted with the following responsibilities (i) To undertake the maintenance and up-keep of the canal system, including related structures; undertake routine /annual and/or especial repairs. (ii) To carry out the operation of the canai system to supply irrigation water (iii) To prepare plan for allocation of available irrigation water (iv) To deliver irrigation water to individual farmers in accordance with the approved plan for water allocation (v) To regulate supply in the canal for distribution of water in accordance with the approved pian for water allocation (vi) To ensure equitable distribution of irrigation water among the farmers (vii) To prepare assessment and collection of water rates from the beneficiaries (viii) To prepare annual budget for the financial year and maintain proper account of the same (lx) To undertake regular audit of the account (x) To prepare special plan for especial repairs/deveiopment /modernization and undertake the same Water Works Design & Supervision Enterprise 55 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management StudyMay2007_ (xi) To make arrangements for the funos required for special repair and/or modernization (xii) To resolve any conflict Detween individual farmers or between different committees 5.6.5 Availability of Funds A part of water rates collected by WUA will De made available to it for meeting its requirements of fund for discharging its day-to-day duties in case of especial repairs and/or modernizing the scheme special fund will be made available. The WUA will also make its efforts to mobilize its own resources 5.6.6 Transfer of the Scheme The ownership of the components of tne irrigation system falling under the jurisdiction of WUA will be transferred to WUA under a Memorandum of Understanding (MOU) to be signed Dy the government agency and representative of the WUA. 5.6.7 Timing of Transfer The organization of WUA requires motivating the farmers, organizing/establishmg WUAs registration of WUA before it starts working It also requires capacity building and imparting training to the farmers to prepare them to take up the responsibilities to be entrusted to the WUA. This is a very slow process and it is expected to take long time especially in Arjo- Diddessa command area as there is no experience to the farmers for irrigation from major canai. Therefore, till such time wnen the WUAs are well organized, the entire system will be managed Dy the government. When the WUAs are established/ organized the components of micro imgation will oe transferred to WUAs for maintenance and operation and other major components of the project like dam. diversion weir and primary and secondary canals will remain under the full control of government agency 5.6.8 Preparation for Organizing PIM Establishing WUA for introducing PIM is not an easy task. It is very huge and complex task It requires additional resources in terms of money ano manpower to establish WUAs. However, in view of advantages of PIM, it is considered necessary to invest additional resource to orgamze/establish WUAs for introducing PIM Water Works Design & Supervision Enterprise 56 In Association with Intercontinental Consultants and Technocrats Pvt. Ltd.Arjo Dedessa Irrigation Project Organization and Management StudyMay2QQ7_ 5.6.9 Manual for Introducing PIM A detailed manual for introducing Participatory irrigation Management will be prepared This manual will provide. • Guidance for organizing WUA • Define procedure to organize different committees • Define roies and responsibilities of the different committees • Rules for functioning of the different committees • Requirement of training for the officials involved in organizing the WUAs • Requirement of training for the • Farmers • Members of WUA • Other functionanes of WUA Water Works Design & Supervision Enterprise 57 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study 6 TRAINING REQUIREMENT 6.1 Need for training May 2007 in view of the change in concept of irrigation projects from subsistence to optimization and the overall scarcity of water in the background of rapidly increasing demands for water for irrigation ana other sectors as well, irrigation projects are required to oe planned, designed, constructed, maintained ana operated in such a way that agricultural products are optimized with available resources of land and water This can be achieved to a greater extent by adopting new methods and techniques developed for irrigation science and irrigated agricultural farming in the background of recent scientific and technological developments in the field of knowledge and eauipments Therefore, there is urgent and essential need for imparting training to all who are involved in irrigation management systems. These include the following: (i) Irrigation Engineers: including other supporting staffs that are responsible for activities related to the planning, design, implementation and operation. (ii) Agricultural scientists: including extension workers who are expected to provide assistances and guidance in the field of irrigated agricultural farming to the farmers (iii) Water users associations: These include the members and the officials of the Water User associations proposed to be formed for introducing Participatory irrigation Management. They are the representatives of the real beneficiaries, i.e , farmers. (iv) Farmers: They are the Deneficiaries and the important stakeholders They are tnose who are going to optimize the agncultural produces with limited land and water resources 6.2 Type and Scope of Training Required The type, level and scope of training required for the groups mentioned above will be different. Some may require extensive training and exposure to practical experiences in other countries having commendable experiences in irrigated agriculture, like India Others may require short term tours and local trainings for skill upgrading. Since large scale irrigation systems of the Arjo-Diddessa type are new to Ethiopia, project staffs, particularly those who will be responsible for the planning and management of the irrigation systems will required trailing. The personnel responsible for operation and maintenance will need to have practical orientation and experience transferred from other Water Works Design & Supervision Enterprise 58 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 countries. Local experience transfer and visits to existing irrigation schemes can also enhance the Knowledge and experience of newly recruited/assignea project staff It is not only the training which is essentially needed. Interactions among the various groups and professions are also very important. Proper interaction among the members of the various groups who are involved in irrigation systems management will help in understanding the real problem at the grassroots level and thereby in providing appropnate solution leading to optimization of the agncultural production. 6.3 Training for Project Staffs The major project staffs that require skill upgrading training and experience transfer are those wno are responsible for the overall management of the project, operation staff and maintenance staff. The details are as follows. 6.3.1 Training for Irrigation Engineers (i) Maintenance of irrigation systems • Irrigation channels • Structures at macro and micro levels (ii) Operation of the Irrigation Systems • Water distribution to command area • Delivering water to individual fields • To achieve: • Reliability • Adequacy • Equitability • Flexibility (iii) irrigation scheduling to suit the requirement for • Individual crop • Stage of crop development • Rooting depth • Climate factors-evapo-transpiration • Soil characteristics-water holding capacity • Depth and duration of irrigation Water Works Design & Supervision Enterprise 59 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management (iv) Water Management • Rational water supply/delivery turn-by turn as per fixed schedule • Method of irrigation • Measurement of discharge at different levels • Water allocation to: • Different irrigation systems • Individual farmers and fields • Assessment of water use efficiency at macro and micro level • Preparation of irrigation repons • Assessment of water rate 6.3.2 Training for Agricultural Aspects (i) Crop planning and cropping pattern with respect to • Land and soil characteristics • Prevailing climatic conditions • Crop characteristics • Availability of irrigation water • Socio-economic aspects • Availability of labor • Other inputs -seed, fertilizer • Marketing facilities (ii) Crop & farm budgeting (iii) Crop water requirement (iv) Water management (v) Methods of irrigation (vi) Irrigation Schedule (vii) Modem methods of irrigated farming It may be noted that while training for irrigation engineers are required to concentrate on the engineering aspect of irrigation, irrigation engineers are also required to acquire adequate knowledge about crop, soil land characteristics, crop water requirement, irrigation scheduling , water management and methods of irrigation. These items are common to all groups as they are very basic, especially in large scale irrigation farming. Water Works Design & Supervision Enterprise 60 Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study 6.3.3 Training for Members of WUA May 2007 The members of WUA are required to develop proper and adequate knowledge and understanding of the following aspects (i) Participatory Irrigation Management (ii) Aspects of irrigation engineering (iii) Agricultural aspects (iv) Administrative and Financial aspects These are discussed hereunder in orief 6.3.3.1 Participatory Irrigation Management This is a comparatively new subject and it nas got considerable importance in development of irrigation, accrual of benefits as envisaged in the project feasibility report, optimization of agricultural production with availaDle limited land ana water resources, improving the water use efficiency and achieving desirable characteristics of irrigation system like reliability, timeliness, adequacy, ana equitable distribution of water This has the following principal components: (i) Motivating and organizing WUAs initially (ii) Delineating the hydraulic boundary of WUA; and holding election for office bearers (iii) Performing field works which include the following: • Maintenance of canal system including irrigation channels and structure at micro level • Operation of the canal system for conveying, distributing , and delivery of irrigation water including regulating, discharges and measurement of discharge (iv) Performing office work and maintaining proper accounts and records (v) Assessment of water taxes and collection of the same 6.3.3.2 Aspects of Irrigation Engineering As discussed above in the previous section, the members and officials of WUA are required to maintain and operate the canal, regulate the discharge, distribute and finally deliver the irrigation water to individual field of the farmers. With this end in view they are required to have some basic/preliminary knowledge of the following issues for which training is very essential: • Maintenance and operation of canal • Regulation and measurement of discharge Water Works Design & Supervision Enterprise 61 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dedessa Irrigation Project Organization and Management Study May 2007 • Preparation of plan for water allocation and its implementation • Resolution of disputes relating to water allocation and its distribution • Methods of irrigation • Water management, etc 6.3.3.3 Agricultural Aspects The basic objective of irrigation project is to optimize the agricultural production for which the role of farmers is very crucial and vital. Farmers cannot achieve these objectives without sound Knowledge and Know-now of modern intensively irrigated farming This includes the following: • Crop planning and cropping pattern • Crop budgeting • inputs and cultural practices • Crop-soil-water relationship • Crop water requirement • Irrigation schedule 6.3.3.4 Administrative and Financial Aspects For performing the tasks assigned to WIIA, the members have to undertake several administrative jods like conducting meetings, functioning of offices, sharing responsibilities among office holders and recruited service providers, communicating with farmers and contractors about existing problems and alternative solutions, etc. Similarly they have to deals with finances in connection with discharging the duties assigned to them as WUA For this tney are again required to acquire adequate knowledge of book Keeping and maintenance of accounts and records including audit records 6.3.4 Training to Farmers Farmers are primary users of irrigation water; irrigation engineers, agricultural scientists and WUAs are there to help and play a role in achieving the basic objective of the irrigation projects to optimize the agricultural production. Science and technology have played a great role in increasing the agricultural productivity and will continue to play this role in future Therefore, it is very essential that tne farmers in general must be exposed and made aware of new methods and technology related to intensively irrigated farming. Items of training for the farmers will include all the items under irrigation engineering and agricultural aspects as Water Works Design & Supervision Enterprise 62 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 discussed above for the members of WUA. However, the training to the farmers will not be as intensive as required for the members of WUA 6.4 Training targets based on the proposed organization structure 6.4.1 Training for Management Positions Usually training for management ana supervisory positions should concentrate on enhancing the management ana supervisory skills, in proper utilization, maintenance and acquisition of human, financial and material resources, proper planning, follow up and evaluation, motivation and maintenance of harmonious relationships within and without. This can oe acquired trough experience sharing and exposure to developed irrigation management practices abroad Short term trainings are also available locally, such as the Ethiopian management institute These trainings should be arranged for the following: • General Manager • Department Managers • Operation and Maintenance Supervisors 6.4.2 Training for Operation Staff Operation staffs require short term trainings ana work visits on the following • Maintenance of the irrigation system • Measurement of water requirements and supply; • Conveyance and distribution of water • Distribution of scarce water during water stress periods; • Application and drainage of excess water from fields and eventual reuse or removal. • Preparing irrigation plans These training are required for the following positions. • Irrigation Engineers • Irrigation Assistants • Water guards • Gate Operator/Canal Operator • Reserve Weir operator • Main Canal Operator Water Works Design & Supervision Enterprise 63 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar Jo Dcdessa Irrigation Project Organization and Management Study 6.4.3 Training for Maintenance Staff May 2007 Maintenance staffs need to have trainings on the maintenance of irngation structures and the maintenance of their own machinery and equipments. The various equipment operators also require skill upgrading training on how to properly operate the machinery and equipments Such trainings can be organized by the local equipment dealers Equipment operator trainings are also available locally in government institutions such as the Ethiopian Roads Authority and the Productivity improvement Center and other private training institutions. The maintenance staff also requires trainings in handling emergency maintenances that occur unexpectedly such as canal bank breaching or gates jamming The maintenance staffs members for whom such trainings are required include • Civil Engineers • Mechanical • Electrical Engineers • Maintenance Supervisors, and • Excavator Operator • Dozer Operator • Motor Grader Operator • Roller Operator • Low Bed Operator • Small Crane Operator • Heavy Truck • Pick-Up truck Driver • Senior Mechanic • Mecnanic • Welders • Carpenter For operators and maintenance line personnel arranging local trainings and work visits will be more economical ano effective than foreign trainings. Advisory staffs such as extension workers and community organizers also require foreign short term trainings and work tours. 6.4.4 Training for Farmers Representatives This will include training and educating local representatives in the management operation, and maintenance of irrigation systems, proper water usage, and other related matters. For capacitating the community, the training coordinator, in coordination with Water Works Design & Supervision Enterprise 64 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study May 2007 other stakenolders. will organize on—the— job trainings, workshops, seminars, ana visits to established irrigation associations. Building local people s capacity for operation and management is given a hign priority because it is one of the activities most likely to enhance sustainability and effectiveness of irrigation systems Exposure visits to successful schemes, group meetings between new and well established schemes are useful ways for communities to exchange experiences, explore the various leadership styles and management options, and focus on gaps in their skills and knowledge. Training methodologies should focus on learning by doing Therefore, on the job training and participating locai representatives in the operation and maintenance of the scheme before transferring the scheme to WUA is highly recommended. The training should be in the local language, appropriate for different age. gender and class groups and the prevailing level of literacy. The training areas to be provided include, but not limited to • Community management structures and their roles (management boards, general assembly, water service providers) • Constitution and bye-laws for governing the use of irrigation systems • Members' rights • Participatory decision-making • Accountability of leaders • Transparency in financial management • Setting development goals and objectives • Planning and budgeting skills including setting of water charges • Leadership/management skills • Monitoring and evaluation mechanisms • Record keeping ana accounting procedure • Financial management skills • Community conflict resolution skills and mechanisms • Negotiation skills, contract with private sectors, with suppliers of inputs, buyers of their produces and with extension agents • Procurement and marketing strategies • Strategic planning • Social contracts with district/woreda councils • Constitution and bye-laws ratified by the woreda council • Registration of water committee/ WUA's management board by the district council • Security of tenure guaranteed by the district council • Arbitration mechanisms headed by the district council Water Works Design & Supervision Enterprise 65 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Dedessa Irrigation Project Organization and Management Study 7 OTHER CONSIDERATIONS 7.1 Community Ownership and Participations May 2007 Local ownership of the resource is now recognized a best approach for sustainable resource use and development. Recent trend in irrigation systems management and policy world over, therefore, emphasizes local/beneficiaries involvement and active participation starting early from the outset, i.e . from need identification through preparation, design, construction, implementation ano finally operation and maintenance of the scheme Communities are much more likely to look after and pay for the upkeep of their irrigation schemes and water supply systems if they know that they Delong to them and not to tne state NGO or other outside agency The local community should, therefore be involved at all stages of the resource aevelopment from its inception through planning and construction to maintenance and management. The state authorities must be very clear on handing over this responsibility for ownership to the local people concerned Obtaining the local communities trust and confidence and their consent is the most important step in developing community-Dasea projects. No work snould be done or meeting heia in an area until local leaders and officials have Deen consulted. The local leaders ana officials have the power and access to organize meetings to be attended by all prospective users. Such meeting will focus on aspects like: • The orientation of all prospective users on the policy and guidelines for implementation This will include initial discussion on responsibility for ownership construction, operation and maintenance, potential productive activities land allocation memoership, access for different user groups, non membership and why participation by the poor . requirements for domestic and productive water,, potential management arrangements and tariffs for services provided, ana formation of water users associations and committees. • Participatory village mapping of community structure, number and location of households, extended families, villages, wards, roads, schools clinics, business centers, administrative boundaries, and the anticipated user-group boundaries • Issues concerning down stream population should also be discussed with both the upper steam/user groups and independently with the down stream population themselves Down stream population have equal rights on the water and their consumption for domestic and other productive purposes should not be jeopardized Water Works Design & Supervision Enterprise 66 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dcdcssa Irrigation Project OrganizationandManageme^_^ay200^ • Discussions should also address the upper stream communities througn which the main canals pass but cannot make use of the irrigation scheme at their present land holdings. These people snould be provided some benefits in one way or another, for example through providing a plot of land in the irrigable areas so that they can be included in the user-group. The other option might be providing them with water pumps so that they can use the water for domestic as well as other productive purposes 7.2 Membership by the Poor and the Marginalized All necessary efforts snould also be made to ensure the membership of the poor and the marginalized such as women memoers. These groups are most in need of improvements out are often not reached because they luck capital, less healthy or live far from the water source. Developments that target specific group however, can create divisions within a community user communities should be encouraged to develop enabling strategies in the form of social contracts, constitutions and other mechanisms which ensures at least proportional representation by the poorest and most vulnerable groups. 7.3 Development of Organizational protocol by the Water Users Associations Obtaining legal status is the first and foremost important step for an organization to operate The prerequisite for this is to have organizational protocols and operating procedures developed in line with operational requirements and in the context of the national/local laws In spite of the differences in national/locai requirements for developing such organizational protocols and operating procedures many of the items to be included in such documents have become common or standardized Some of the documents and their common elements are the following: 7.3.1 The Social Contract The social contact is a document which sets out the agreement between the community and the local authority It outlines obligations, clarifies misconceptions and enhances community’s sense of ownership of the schemes It can be referred to whenever there are disagreements It should be drafted in local language and agreed by all prior to signing in public by elected community representatives and a government officer A format of Social contract developed for groundwater scheme and small dams are provided in the box 7 1 Water Works Design & Supervision Enterprise 67 In Association with Intercontinental Consultants and Technocrats Pvt. Ltd.Arjo Dedessa Irrigation Project Organization and 7.3.2 The Constitution/Memorandum of Association The constitution is a document that outlines how the irrigation system and associated productive activities will t>e managed It is a community initiative with the guidance of NGOs, ana government project staffs. Project staffs in cooperation with local authorities, explain the importance of tne constitution to sustainability and give examples of constitution that have oeen arafted by other communities. They facilitate meetings and can provide guidelines on drafting The community is asxea to come up with their own constitution. Then the draft will be commented by members and facilitators and finally the community adopts the constitution by vote The constitution provides guidelines on membership, equity in participation of the poor, financial contributions and user fees, cost recovery and operation and maintenance partner mechanisms, reinvestment of revenue, rights of access particularly for non WUA members wisning to jse the water for productive purposes, water committee/management board election procedures, the role of the committee and their period in office, treasury arrangements dispute resolution procedures, etc. An outline of the constitution is given in Box 7 2 Box 7 1- Social Contract for Farmer Managed irrigation Scheme Productive Local Ownership Construction Government The community will provide Community responsibility All management decisions Upkeep, maintenance and repair Any future improvements Agreement: Community Government Date . water point will name Authonty provide Source: Chris Lovell. Productive Water Points in Dry land areas Guidelines for _________ Integrated Planning for Rural Water Supply, ITDG Publsihing London.2000 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 68Ar Jo Dedessa Irrigation Project Organization and Management Study 7.3.3 Multi-Purpose Orientation of irrigation Systems May 2007 There is another increasingly important way in which irrigation management organizations are changing and this may require a fundamental change in the way irrigation systems are managed after transfer. In many developing countries the vast majority of public irrigation systems were originally designed and constructed for the sole purpose of delivering and disposing of water for agriculture Over the last three decades, population increases, economic diversification and increasing shortages of water have meant that people are often using irrigation systems to supply multiple uses of water, including for washing ciotnes bathing, livestock, recreation, industry, energy generation and even drinking water Where irrigation systems are being used for such multipie uses, new WSPs may need to re define the functions of the water service to incorporate such multiple use services into their formal management system. Such demands cannot be ignored and the WUA will have to organize itself to represent the needs of its widening case of stakeholders. This may mean that women who use water for domestic ano other purposes, those who tend livestock, industrial users and so on may need to oe represented in the organization. Water Works Design & Supervision Enterprise 69 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Organization and Management Study Box 7.2- Water Users Association s Constitution______________________ _ Name of the association Location Objective of the Association Objective of the constitution Membership: Rights of access. Termination of membership May 2007 New membership General meetings: Rights of the community Obligation of members Voting Quorum Management board: Election Term of Office process Duties Powers User fees: Payment for repairs and maintenance: Banking/re-investment of revenue Registers and records New projects/using water for other productive purposes (in cases of multipurpose use) For members of the initial project For non members of the initial project Settlements of disputes: Management board members: Government witnessDate Source: Chris Lovell. Productive Water Points in Dry land areas Guidelines for Integrated P[anning_for RuraLWater Supply, ITDG Publsihing London 2000 Water Works Design & Supervision Enterprise 70 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Annexure - 23 SETTLEMENT PLANNINGArjo Dedessa Irrigation Project Settlement Planning May 2007 TABLE OF CONTENTS SETTLEMENT PLANNING I INTRODUCTION 1.1. General Background1 1.1.1. Experiences in the Developing Countries 1 1.1.2. Current Discourse on Development and Displacement2 i 1 1.2. OBJECT!VES OF THE STUDY2 l .3. Scope of the Study-3 1.4. METHODOLOGY-..............................................................................................................................................4 1.5. RESETTLEMENT REVIEW OF ETHIOPIAN EXPERIENCES-....................................................................... 5 1.5.1. Derg s Resettlement Programs-.............................................................................................- 1.5.2. The Recent Voluntary Resettlement...................................................................................................... 6 2. LEGAL AND POLICY ISSUES.............................................................................................................................................. 8 2.1. International Provisions 2.2 Relevant National Legal Provisions9 2.2.1 The Ethiopian Constitution....................................................................................................................9 2.2.2 The Ethiopian Civil Code 10 2.2.3 Resettlement and Rehabilitation Framework of ERA JO 2.3. Experience of Koga Irrigation Project12 3. DESCRIPTION OF THE PROJECT AREA.................................... 13 3. l. Genera^ Features.......................................................................................................................................... 13 3.2 Highlights on the Socio-economic features.......................................................................... .................... 14 3.2.1 Livelihood................................................................................................................................................. 3.2.2. Kebeies Undo the Project impact Zone14 3.2.3. Population16 3.2.4. Major Ethnic Groups and Inter-Ethnic Relations 17 3.2.5. 3.2.4. Non-Govemment Organizations 20 3.3 Social Services21 3.3.1. Education:21 3.3.2. Health Services. 21 Traditional institutions18 3.3.3. Water Supply22 3.3.4. Other Infrastructures and Services 23 4. PROJECT IMPACT ZONES 4.1 General 4.2. Properties to be affected and Categories of Compensation 4.2.1. Communal Properties 4.2.2. individual Properties 4.3. Rehabilitation....................................................... „„ 4.4. Estimated number of Would-be Displaced Households 4.4.1 Households from the Reservoir Area 4.4.2 Households from the Command Area 4.4.3. Total house hold to be resettled: 5. PROPOSED RSETTLEMENT ACTIONS 5. i. Introductory Notes 5.2. Mechanisms 5.3.Options for Resettlement 5.4Cost Estimates 5.5 Important Considerations. 5.6. Resettlement Sites Water Works Design & Supervision Enterprise In Aseoeletlon with Intercontinental Coneultante and Technocrats Pvt Ltd. 24 24 25 25 27 28 29 29 29 29 30 30 31 31 33 33 IArjo Dedessi Irrigation Project Settlement Planning May 2007 5.6.1. Criteria for Selection of Resettlement Sites .................................................................................... 33 5.6.2. Selected Sites ..................................................................................................................................... 34 6. STAKEHOLDERS’ PERCEPTION AND PARTICIPATION.............................~........................................................ 35 6.1 SPECIAL SITUATION IN ARJO DEDDES A............................................................................................... 36 6.2 People’s Perception.................................................................................................................................... 37 6.2.1 Positive impacts.................................................................................................................................37 6.2.2 Negative impacts ............................................................................................................................... 38 6.3. Perception of Local Government Representatives................ ~............................................................. 38 6.3.1 Positive impacts ................................................................................................................................... 38 6.3.2 Negative impacts ..................................................................................................................................39 6.4. Proposed Mitigation measure..................................................................................................................... 39 6.5. Community Participation..............................................................................................................................39 6.6 Gender Issues..................................................................................................................................-............ 41 6.6.1. Introductory Notes.............................................................................................................................. 41 6.6.2. Gender issues in the Ethiopian Context ..............-........................................................................... 41 6.6.3. Situation of Women in the Project Woredas ...................................................................................42 6.6.4. Proposed measures............................................................................................................................43 7. RESPONSIBILITIES OF STAKEHOLDERS____________________________________-___~............................... 45 7.1 Local Government Bodies..................................................... ............................................................ 45 72 The Project....................................................................................................... -............................................47 7.3 Community Based Organizations.......................................................................................................... 48 8. CONCLUSION AND RECOMENDATIONS................................................... ..... ........... .......................................... 49 LIST OF TABLES Table 3.1 Population Distributions in the Commano and Reservoir Areas, 2006............................... 15 Table 3.2 Population Distributions in the Command and Reservoir areas. 2006................................16 Table 4.1 kebeles falling under the Project Impact Zone (Command Area)....................................... 24 Table 4.2 Summary of the Project impact Zone (Reservoir area) .................................................... 24 Table 4.1 Preliminary cost estimates of resettlement of people from the reservoir area............ 32 Table 4.2 Cost estimate for properties of people to be resettled from the command area...........32 Table 4.3 Estimated cost for Replacement of Social Service facilities............................................ 32 Table 4.4 Preliminary Cost Estimate of Compensation for Communal Properties at the Resettlement Sites.................. ~..... .................................................................................. 32 Water Works Design & Supervision Enterprise la Aiioeution with Intercontinental Coniultaiti and Technocrats Prt Ltd. 11Arjo Dedessa Irrigation Project Settlement Planning SETTLEMENT PLANNING 1. INTRODUCTION 1.1. General Background May 2007 The livelihood of the Ethiopian peasants depends on rainfed subsistence agriculture from time immemorial with no significant change to date This nas rendered the country unable to properly feed its people Moreover, several severe droughts tproionged dry-spells) have occurred in the last four decades entailing severe famines that claimed the lives of several people and nampered the country's socio-economic development. in fact, it was the impenal governments attempt to hide the effects of the 1973-74 famine that aroused wodd indignation and eventually contributed to Haile Selassie's demise. Between 1984 and 1986, drought ano famine again hit Ethiopia and may nave claimed as many as 1 million lives and threatened nearly 8 million more in several studies related to this problem, it nas been attempted to show the practical application of dry-spell analysis on tong records of daily rainfall data for justifying the failure of rain-fed agriculture, especially in semi-arid and and areas of the country Accordingly, besides resettling people from drought prone areas to many parts of the country perceived to have more dependable rain patterns and relatively less populated and more fertile lands, investing on the development of large scale irrigation projects is believed to result in providing a sustainable solution for the problem. However, both measures have required the involuntary displacement of people, with disastrous consequences, which the successive regimes could not adequately manage 1.1.1. Experiences in the Developing Countries Obviously, problems related td development-induced displacement and resettlement were not peculiar to the cases of Ethiopia. In the past, poor rural peasants have been the unintended victims of resettlement often induced by the introduction of large-scale development projects in the world's developing countries. Forced by an urgent desire to achieve rapid economic progress, many developing countnes particularly some In post independence Africa, resorted to the execution of large-scale development projects in the decades following the 1960s. This Water Works Design & Supervision Enterprise la Auodatian with titarcontlnaital Cannltuts and Taehnocnti Pvt Ltd. 1Arjo Dedessa Irrigation Project Settlement Planning MayJQQ^__ vogue saw the construction of large hydroelectric power plants, commercial plantations and the like around Africa during the post independence period, and was supposed to provide the investment prerequisites that paved the road to economic utopia. Many of these undertakings however resulted in the displacement of large numbers of poor peasants, and raised a lot of questions in academic and other circles about ignored anthropomorphic and poverty alleviation issues 1.1.2. Current Discourse on Development and Displacement Despite observable reluctance on the part of many national governments and/or relevant Line Mimstnes, there seems to be a growing concern both on the part of donor/lender agencies and implementing countries in terms of mitigating the negative impacts of large scale projects such as dams, and ensuring the safety and benefits to which dislocated people are legally entitled It is therefore with a renewed hope of sucn developments that this assessment and the resultant resettlement plan are pursued There is a general consent that displaced persons should be assisted in their efforts to improve their former production levels, income-earning capacity and living standards, or at least restore the levels they would have been without the project, as pointed out in the World Bank documents It is also believed that, in situations where specific resettlement policies or guidelines are not in place, other international covenants and treaties that provide specific or comprehensive rights for people displaced by development projects, may be relevant In line with this development approach, this assessment aimed at identifying the social adverse impacts that may be entailed by the envisaged irrigation project, with particular focus on the situation of people to be displaced, and pointing out possible mechanisms for mitigating such impacts. 1.2. Objectives of the Study The major objective of the settlement planning study is to assess and analyze the impacts of the Arjo Dedesa Irrigation Project on natural and social environments vis-A-vis the need for resettling certain proportion of the inhabitants of the project areas. The most significant part of the study is establishing baseline information on possible dislocation of people from the project area and related adverse impacts of the project so as to design mechanisms by which such Water Works Design & Supervision Enterprise 2 In Association vttk Intercontinental Consultants an< Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project SettlementPlannln^———May^07^^ occurrences are avoided or at least mitigated. The baseline information will also serve as a benchmark against which future monitonng and evaluation of achievements of the resettlement program will be measured. Specific objectives of the study include assessing and acquiring information on > Impact areas and population structures; property and common areas inventory; environmental and otner constraints where the project is planned to exist. > Resettlement Policy, if any Legal Framework, Definition of affected lands, Compensation and entitlement criteria etc. > Identification of traditional systems which regulate access to land, water forest; uses of resources in production systems, including farming, livestock rearing, etc, > Inventory of social service structures such as schools, medical facilities, communications/transport networks, water supply schemes etc. > Participation of Affected People - Strategies for direct or indirect participation in decision-making, implementation, operation, and evaluation of the resettlement of both settlers and host populations, > Gender specific problems and issues including traditionally ascribed status of women, its implications on their peculiar vulnerability to harms induced by resettlement. > Institutional Assessment, Department(s)/line agencies responsible for the resettlement program; Capacity of government organizations at various levels to co-plan and execute the resettlement programs, capacity building requirements (including training, logistics, and technical assistance). > Cost estimate, and implementation mechanisms for imbursement of compensation. 1.3. Scope of the Study This assessment pnmarily focused on the collection and analysis of data and information that have direct relevance to problems of settlement and which the settlement planning should necessarily take into account. All components of the feasibility study have a social dimension, and it should be noted from the onset, that there may be a lot of overlapping activities as regards the social assessment objectives of the various sectoral teams involved in the general feasibility study of the project It was thus inevitable to come up with a lot of similar data and information by different teams, and especially with those dealing with the socio-economic aspects of the project area. Water Works Design & Supervision Enterprise In Asssdatton with Intmonttnantal Consultants and Technocrats Pvt Ltd. 3Ar jo Dedessa Irrigation Project SettlemeD^lannln^———J«ay200^^ This is Decause all teams obtained statistical and other secondary data from the same sources, that is, the various sector offices of the project Woredas, and often interviewed the same government representatives. Moreover, some quantitative data that resulted from the household survey by the socio-economic team have been made use of in the report. 1.4. Methodology Qualitative research method with different techniques of data collection was used in this study The techniques included: • interviewing of Key informants • Conducting Focus Group Discussions • Review of Relevant Documents (Secondary data collection) • Literature review • On-Site Observation (i) Key Informants Interviews (KII) Key informant (in-depth) interviews were conducted with local people (farmers), informal leaders/esteemed elders, religious leaders, representatives of kebele and woreda level administrative bodies and heads of relevant sect oral offices (ii) Focus Group Discussions Focus Group Discussions (FGDsj were held with villagers ranging from eight to twelve in number and disaggregated in age, sex, and occupation. (Hi) Literature review Available and relevant literature, from all possible sources of such information including University libraries, libraries of MoWR and the Internet were reviewed so as to be informed of cunent theoretical discourse on such development undertakings as well as to team from the experiences (both successes and failures) of similar undertakings elsewhere in the country. (Iv) Acquisition of Secondary Data Second hand Information related to the land tenure and land use patterns of the people under study, population size, age and sex structure, and ethnic composition, social service provision institutions and their institutional capacities, livelihood situation and major economic activities, planned and ongoing development programs in the area, etc. were collected from the archives of the zones and Woredas of the project area. Water Works Design & Supervision Enterprise 4 la Assoelatlon with Intercontinental Consultants and Tschaoonts Pvt Ltd.Arjo Dedessa Irrigation Project Settlementplanning 1.5. Resettlement: Review of Ethiopian Experiences 1.5.1. Derg’s Resettlement Programs May 2007 Little is written about development induced resettlement programs in Ethiopia. But its experience in resettlement in general has never been applauded by academics and the international community Following the 1984 ana 1986, drought and famine, which claimed as many as 1 million lives ana threatened nearly 8 million more, the Derg’s government embarked on forced resettlement and villagization in the mid-1980s as part of a national program to combat drought, avert famine, and increase agnculturai productivity. Resettlement, the regime s long-term solution to the drought problem, involved the permanent relocation of about 1.5 million people from the drought-prone areas of the north to the south and southwest, where population was relatively sparse and so-called virgin, arable land was plentiful. Development specialists agreed on the need for resettlement of famine victims in Ethiopia, but once the process had begun, there was widespread criticism that resettlement was poorly planned and haphazardly executed and thus increased the number of famine deaths. Moreover, critics charged that the government forcibly relocated peasants, in the process breaking up thousands of families. Thousands also died of malaria and sleeping sickness because of poor sanitation and inadequate health care in newly settled areas. A Paris-based international doctors organization, Doctors without Borders (Medicine sans Frontiers), estimated that the forced resettlement ana mass deportation of peasants for purposes of resettlement endangered the lives of 300,000 because of shortages of food, water, and medicine. Other international organizations accused the Ethiopian government of moving peasants to resettlement areas without adequate preparation of such basic items as housing, water seeds, and tools. Because of widespread criticism, the Mengistu regime temporarily halted the resettlement program in mid-1986 after 600,000 people had already been already relocated. The program was resumed in November 1987 Some sources voiced suspicion that the regimes primary motive in resettlement was to depopulate the northern areas where it faced insurgencies. Resettlement, the argument went, would reduce the then guerrillas’ base of support. Another Western objection to the resettlement program related to the long-term government policy concerning peasant farms. Western countries, on whose support the resettlement program depended, did not want to Water Works Design & Supervision Enterprise la Association with Intercontinental Consultants and Teehnocnts Prt Ltd. 5Arjo Dedessa Irrigation Project Settlement Planning May2QQ7^ sponsor a plan in wnich recruits labored for communist-style collectives and state farms. Be that as it may, the resettlement program left a long lasting scar in Ethiopia's resettlement history 1.5.2.The Recent Voluntary Resettlement The more recent resettlement program of the present regime is hardly Detter as far as the response of the international community is concerned, despite the fact that this one is claimed to De voluntary as opposed to the clearly forced program of the Derg According to articles written by Marc <_acey (2004) and Rl BULLETIN (a bulletin of a Humamtanan Organization, Refugee International), the plan for this latter resettlement program was announced in June 2003 with the stated aim of moving 2.2 million people over three years Close to half of the total number to De resettled were to be drawn from the highlands of Amhara, the epicenter of the famines of the 1970s and 80s The Government appealed to the international community to provide $170 million to support the program, pointing out that it represented only half of wnat the US alone had provided in emergency assistance in 2003 In light of the bitter taste the massive and highly coercive resettlement program of the mid 1980s nad left in the minds of both donors and many Ethiopians, a new program four times larger than the previous one, gives rise to a host of questions The first set of questions revolve around the management and implementation of the project and the second around whether in fact resettlement is any sort of long term solution at all. These writers noted that the government manual for the resettlement program stresses its voluntary nature and lays out the guidelines for its management and implementation. However, donors fears have to some extent been substantiated as implementation of the program has on occasion deviated seriously from the procedures laid down in the guidelines It was further noted that during 2003 and 2004 the program was implemented in an inconsistent and hurried manner resulting in a variety of different problems dunng registration, transport, site preparation and service provision leading to a variety of health and environmental problems. As a result an unknown number of people died from disease and hunger. The overall picture is far from uniform, however and there is evidence that many resettlers have fared well and intend to make a go of it on their new lands. The writers claimed that there was evidence of settlers Water Works Design & Supervision Enterprise 6 In Assorts tina with Intareontlnaital Connitaats and Teeknoents Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May2007 returning to their original homes (e g. Wolayrta 38%; Konta 49%; Basketo 69 %.) as a proof for the shortcoming of the implementation as well as the question around its voluntary nature. Another major area of criticism revolved around the fact that many decisions are centrally made with the expectation that they would be regionally implemented without due regard to the training and capacity of local officials. This, according to the critiques, entailed much needless suffering that is the result of inadequately prepared officials implementing an over ambitious planning targets. Not only is the training and capacity of local officials inadequate, funding for site selection and preparation was also said to be grossly inadequate The result is that people are brought to resettlement sites that have no reliable water sources and adequate health services no sufficient agricultural land and that is often thickly forested. The access roads become inaccessible wnen it rains. It is noteworthy that the vast majority of the population in the project impact zone of which some are to be relocated, are resettlers who were brought here as a result of the 2003/2004 resettlement program. in sum, the resettlement programs and their implementation by both governments have evoked negative responses from academics and the international community at large, and have seriously marred the country's resettlement history Water Works Design & Supervision Enterprise Il Association with Intercontinental Consultants and Technocrats Prt Ltd. 7Arjo Dedessa Irrigation Project Settlement Planning 2. LEGAL AND POLICY ISSUES 2.1. International Provisions May 2007 The major constraint related to resettlement programs has been not only the fact that most states have not yet signed legally binding international documents that provide specific or comprehensive rights for displaced caused due to oevelopment projects, but have no national policies to deal with the problem Even at international level there were no specific policies for regulating displacement and resettlement, until the World Bank issued one in 1990 However many international treaties and covenants are thought to be relevant. These international instruments include the International Covenant on Civil and Political Rights (ICCPR), the International Covenant on Economic, Social and Cultural Rights (ICESCR), the ILO Convention Concerning Indigenous and Tribal People in Independent Countries, the Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters, and the Convention on the Elimination of All Forms of Racial Discrimination (CERD). “The most promising developments”, according to Barutciski (2001), are “soft laws - such as the resettlement guidelines of the World Bank" To this list could be added the OECD Guidelines for Aid Agencies on Involuntary Displacement and Resettlement in Development Projects ano the UNHCR Human Rights Guidelines on Development-Based Displacement. Unlike many developing countries, however. Ethiopia is a signatory of most of the major international treaties and covenants. The World Bank was the first multilateral lending agency to adopt a policy for Resettlement and Rehabilitation (R&R). The Bank's present policy is contained in the document "Involuntary Resettlement," Operational Directive (OD) 4.30, adopted in June 1990 Operational Directives (OD), 4.30 broadens the treatment of resettlement issues beyond hydropower and irrigation projects to all types of investment operations. It emphasizes the need for: • Minimizing involuntary resettlement: • Providing people displaced by a project with the means to improve, or at least restore, their former living standards, earning capacity, and production levels; Water Works Design & Supervision Enterprise 8 in Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project • Involving both resettlers and hosts in resettlement activities, • A time-bound resettlement plan, and • Valuation and compensation principles for land and other assets affected by the project It was meant that beneficiary governments would and should adapt the policy to the realities in their perspective countries and abide by it. In many situations however, project sponsors — be they governments, multi-lateral or bilateral development agencies, or private developers - had no policies or guidelines on involuntary resettlement. It was common for states to have policies on eminent domain, many of which dealt solely with the legal process of expropriation, a number of which them outlined compensation mechanisms, but none of them dealt in detail with resettlement in ways that would prevent possible impoverishment. 2.2. Relevant National Legal Provisions Despite the fact that a specific policy and guideline for resettlement does not exist, there are a number of national legislations and legal provisions (besiaes the international treaties), which could be said relevant to and applicable on resettlement processes and implementation. These are discussed here under in brief. 2.2.1 The Ethiopian Constitution The Constitution (FDRE 1995) contains articles, which are relevant to development projects. In the section that deals with democratic rights, Article 43 gives the right to people to improved living standards and to sustainable development. Article 92 of Chapter 10, includes the following objectives 'Development projects shall not damage or destroy the environment People have the right to full consultation and the expression of views in the planning and implementation of environmental policies and projects that affect them directly’ Article 40 states that ownership of both urban and rural land is vested in the State and the people, and is common property, which is not subject to sale or other means of exchange. Then it continues to say “Peasants have the right to obtain land without payment, and are protected against eviction from land in their possession. Full right to immovable property and permanent improvements to land is vested in individuals who have built the property or made the improvements, but government may expropriate such property for public purposes, subject Water Works Design & Supervision Enterprise !■ Aaioclatin wttk Iitareutlnaatal Coiraltuta sad Tadnoenti Fvt Ltd. 9Ar Jo Dedessa Irrigation Project Settlement Planning to the payment in advance of compensation commensurate to the value of the property or alternative means of compensation, including relocation with adequate State assistance 2.2.2 The Ethiopian Civil Code As per the Ethiopian civil code No 165/1960, Articles 1460-1488- expropriation is possible only for projects of public utility and only immovable could be expropriated. Therefore development projects that require the expropnation of immovable should not only be assessed on the basis of their objectives, but also on their contribution to serve public interest at large, since for no other reason or purpose could expropriation be effected Article 1474 underlines that compensation due to expropriation shall be equal to actual amount of damage caused by the expropriation as assessed by a committee organized for the purpose, while Article 1477 states that the decision of the committee on the amount of compensation due can be subject to appeal and the court of appeals shall give the final decision. In the event of partial carnage the civil code nas an article (article 1469), which states: “Where partial expropriation renders the remaining part useless, entitled stakeholders shall have the right to demand that the whole immovable be expropriated and compensation be paid for that too Where the court of appeal increases the amount of compensation, the additional amount shall be paid with in one month from the verdict. This includes any additional cash compensation to those who had received compensation in kind" In articles 1460-1488 of the civil code strict and compulsory principles are established like: “Those who have legitimate entitlements over immovable shall be properly and directly notified of the eminent expropriation" 2.2.3 Resettlement and Rehabilitation Framework of ERA Although there is no guideline for resettling households to be displaced by large-scale irrigation development projects, the resettlement and rehabilitation framework of Ethiopian Road Authority (ERA), which was published in February 2002, is found relevant to other development induced displacements. ERA’S Resettlement and Rehabilitation Framework (Feb.2002) clearly states that Water Works Design & Supervision Enterprise 10 In Association with InUrconttnental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May 2007 ■ By signing the credit agreements for the RSDPSP (credit 3032) and the RRP (credit 438) with international Development Association, the Federal Democratic Republic of Ethiopia committed itself to abide by the involuntary resettlement policy of the World Bank and both parties do agree on the fact that development projects should not be realized at the expense of the people affected by the projects Thus, the legal framework of the RSDPSP are the Ethiopian constitution as transcended into the ERA procedures and the World Bank Operational Directive (OD) 4.30 on involuntary resettlement ano its operational policy as spelled out in the resettlement and rehabilitation guidebook (ERA 2002: 13) This and other guiding principle of ERA s resettlement and rehabilitation framework emanated from World Bank’s operational directive 4.30. which states as follows “Where large-scale population displacement is unavoidable, a detailed resettlement plan, timetaDle and buoget are required Resettlement plans should be built around a development strategy and package aimed at improving or at least restoring the economic base for those relocated. Expenence indicates that cash compensation alone is normally inadequate. Voluntary settlement may form part of a resettlement plan, provided that measures to address the special circumstances of involuntary resettlers are included Preference should be given to land-based resettlement strategies for people dislocated from agricultural settings. If suitable land is unavailable, non land-based strategies built around opportunities for employment or self-employment may be used" With regard to projects that entail very small scale relocation of people the World Bank operational directives 4.30 specifies that wnere only a few people (eg., less than 200 Housenolds; are to be relocated, appropriate compensation for assets, logistical support for moving, and relocation grant may be the only requirements. However, the principles on which compensation is to be based are the same as for larger group. It is therefore believed that these resettlement and rehabilitation legislatives, policies and directives are relevant to and could be applied in planning and implementing of resettlement and rehabilitation programs of the project under discussion with minor adjustments as deemed necessary Water Works Design & Supervision Enterprise 11 In Association with Intareeattnental Consultants and Technocrats Pvt Ltd.Arjo Dedessi Irrigation Project SettlementPlannln^bii—. 2.3. Experience of Koga Irrigation Project Apart from ERA’S experience for resettlement, an Irrigation Project similar to the one under discussion, i.e., Koga irrigation Development Project is said to nave adopted a new resettlement guideline for households displaced from the command and reservoir areas Effort was made to contact people from the Koga project as well as the Ministry of Water Resources to get information on their resettlement directives and implementation processes However according to the project coordination office, the project is still under implementation, and the pianned resettlement program is not yet realized. Instead what has been done so far was paying out compensation for households whose immovable properties on the land that is being used for structure ouilding has been damaged or expropriated. As for houses that fall within the reservoir and command areas, the project took into account only the labor cost that is required to build a house similar to the one demolished by the project cased on the rationale that the material could be reused for the new building the new one - a logic that could not be very convincing. It is hard to understand how grass or corrugated iron sheet from a demolished nouse could be used for constructing new one Households that has lost their crop and forest land were also given compensation based on the average annual income from the land for three years (construction period). It is assumed that after three years, the households will have land from imgated areas that can generate better income. However, much of crops, that included coffee and fruit trees, not produced in Arjo- Dedessa command due to the difference in agro-climatic conditions between the two project areas and little can be leamt from the experience. As far as resettlement is concerned, there is hardly any replicable experience to leam from, since the project did not yet practically implement its resettlement program. Yet the plan suggested by the resettlement planning consultant is found to be not basically different from the one proposed here. Water Works Design & Supervision Enterprise In Auoditlan with Intemntlnenta] Consultants and Technocrats Fvt Ltd. 12Arjo Dedessa Irrigation Project Settlement Planning 3. DESCRIPTION OF THE PROJECT AREA 3.1. General Features May 2007 Arjo-Dedessa irrigation Project is one of the irrigation projects identified in the Dedessa River Sud Basin under Abay River Basin. The Project site is located in the Western Pan of Oromia Regional State, in Eastern Wollega, lllubabor and Jimma Zones. The specific Woredas are, Beoeie Gechi, Borecha, Woredas of llluoabore zone and Limu Seka and Jimma-Arjo Woredas of Jimma and Eastern- Wollega zones respectively. Bedele the capital of Bedele Woreda is aDout 480 km away from Addis Ababa. Arjo, the capital of Jimma Arjo woreda is about 56 km far from Beaeie town. Gechi Woreda is located between Dedessa River and Bedele town Borecha woreda lies between Gechi and Deaessa to the left side of the main road. Atnago the capital of Limmu seka woreoa is about 119 km away from Jimma town. The project implementation would provide irrigation facilities in about 13,665 hectares of land in the command area, and would involve submergence of 8,500 hectares in the reservoir The technical planning report also revealed that 55% and 45% of the command area lies on the left and right sides of the Deodessa River respectively The nght bank of the command area lies in East Wolega Zone (Jimma Arjo woreoa) and the left bank command area lies in lllubabor zone (Beddelle, and Gechi Woredas). Bedelle and Jimma-Arjo Woredas get the largest proportion of the command area while Gechi gets the smallest. The Arjo Dedessa Dam site and reservoir area is located in Jimma Zone. The geographic position of the dam site (axis) in UTM is 257565 m E and 0907545 m N (E 36° 48’ 20”, N 8° 12’ 20”). The reservoir area is estimated to be about 8 500 ha falling in Borecha and Limu seka Woredas The Dam site is located at about 7km on the road from Limu- Genet to Atango and 16 km to the left from Dora elementary school to Mero (Moga private farm camp). The Dam axis is about 5km from Moga camp. The reservoir area can be accessed through Jimma - Limu Genet- Atango all weather road. It is located at about 103km from Jimma to Atango and 48 km from Atango to Deneba settlement area Water Works Design & Supervision Enterprise 13 Id Association with Intercontinental Consultants and Technocrats Kt Ltd.Arjo Dedessa Irrigation Project Settlementplanning 3.2 Highlights on the Socio-economic Features 3.2.1 Livelihood May 2007 The socioeconomic features of the project area are fairly exhaustively described in the socioeconomic report. However, some of the major relevant socioeconomic features are considered as a preiuae, in this report too. The economy of the sub-basin is mainly based on mixed farming (crop production and livestock rearing). Mixed farming system with special emphasis on crop production (involving a lot of toiling, but with absolutely minimal potential to change the living standard of the farmers for the better), is the economic basis of the people in the stuay area. Livestock keeping is significant part of the nousehold investment. Fattening bulls for sell is particularly practiced by the new settlers mainly those who came from East Oromia Similar to the situation prevailing in most parts of rural Ethiopia, the living standard of the people here too is hand to mouth. The Arjo Deoesa Irrigation Project is primarily intended to enable the farmers to produce sufficient food so as to meet the requirements of the fast growing population and ensure food security at the household level, though it might also have the potential to contribute to the overall development of the country 3.2.2. Kebeles Unde the Project Impact Zone It is estimated that a total of 30 kebeles from the three zones and five woredas described above will fall within the command and reservoir areas of the project. Out of these, 15 kebeles, almost all partially, fall under the proposed reservoir and 15 kebeles, almost all fully fall, under the proposed command area The biggest number i.e, 23, of these Kebeles are from three woredas of Borecha, Gechi and Bedelle, from lllubabor Zone, Jimma Arjo under East Wollega, and Limu Seka under Jimma Zone have the smallest numbers, 3 and 4 kebeles respectively. The command area falls in eight kebeles of Bedelle woreda, 4 kbeles of Gechi woreda in lllubabor, and 3 kebeles from Jimma Arjo, under Jimma Zone. The reservoir area falls under 11 kbeles of Borecha woreda. lllubabor Zone, and 4 kebeles of Limu Seka woreda, Jimma Zone. This means that while the benefit of the proposed project is meant to reach all residents of the 170 kebeles in the 5 project Woredas and indirectly to the surrounding areas including urban centers, the negative impact will fall on those living in the 15 kebeles whose land and other unmovable properties will fully get submerged under the reservoir. The households under 15 Water Works Design & Supervision Enterprise 14Ar io Dedessa Irrigation Project kebeies falling in the command area will also be partially affected and some of them falling on the routes of canal systems and acsess roads, will be displaced and will require to be resettled However, other households in the command who are not likely to be displaced will get the most advantage of benefits Table 3.1, Population Distributions in the Command and Reservoir Areas, 2006 Zone Woreda Kebeie Household Population Male Female Total Male Female Lilokane 193 17 210 553 626 Chafiejaleia 384 42 426 1,258 848 2 106 Bekelichbiftu 366 48 414 833 665 llluoabor Bedelle Bildimadaru 392 13 405 1.488 1,225 Chilalobildima 334 43 377 1.018 734 Ambeleta 388 16 404 1 199 819 Kolosine 541 35 576 1.737 1 1871 2 924 Harotatesa 310 121 322 1,688 1 499 Sub total 8 3.268 835 4,103 9,414 6,994 Chitubosena 273 8 281 871 815 Gechi Manis 244 9 253 784 734 Yebelo 260 12 272 843 789 Wakel 245 4 249 772 722 Sub total 4 1.022 33 1,055 3,271 3,060 Total 1179 1 498 2,713 1 752 2,018 3 187 16,408 1 494 6,330 1 686 1,518 1 632 East Wollega Jimma Arjo Lugama 339 11 350 729 335 1 064 Meta 1 199 92 1,291 4,310 2,149 6 459 Bedhasadeoessa 303 31 334 813 861 1,674 Sub total 3 1,841 123 1,975 5,852 3,010 8,862 Total 15 6,131 891 7113 18,537 13,064 31,600 Water Works Design & Supervision Enterprise la AuocUtion wltk lnurtonttnentnl Consultants and Technoenu Pvt Ltd. 15Arjo Dedessa Irrigation Project Settlement Planning Table 3.2: Population Distributions in the Command and Reservoir Areas, 2006 May 2007 Zone Woreoa Household Population Kebeles Male Female Total Male Female Total Lilokarie 193 17 210 553 626 1179 Chafiejalela 384 42 426 1,258 848 2.106 Bedeie Bekelichbiftu 366 48 414 833 665 1 498 Bildimadaru 392 13 405 1 488 1,225 2.713 Chilalobildima 334 43 377 1,018 734 1 752 Ambeleta 388 16 404 1 199 819 2.018 Kolosine 541 35 576 1,737 1.187 2,924 Harotatesa 310 12 322 1,688 1,499 3,187 Sub total 8 Kebeles 3.268 835 4,103 9,414 6,994 16,408 ChituDosena 273 8 281 871 815 1,686 Getctii Manis 244 9 253 784 734 1,518 Yebelo 260 12 272 843 789 1.632 Wakel 245 4 249 772 722 1494 Sub total 4 Kebeles 1.022 33 1.055 3,271 3,060 6,330 Chewo 224 14 I 238 619 643 1,261 Nataro 459 29 488 1.269 1,318 2.586 ^Agidearba 362 23 385 1.001 1,040 2,041 Borectia Oarasidan 255 42 297 552 638 1,190 Chulu 315 20 335 871 905 1776 Golijo 321 20 341 887 921 1,807 Beleka 179 11 190 494 513 1 007 Markafo 322 7 329 459 971 1,430 Buko 322 7 329 489 871 1,360 Belati 1243 53 1,296 5.447 6.484 11,931 Gubahora 513 22 535 1.041 1.232 2,273 Sub total 11 Kebeles 4.515 248 4.763 13,128 15.534 28662 It Lugama 339 11 350 729 335 1,064 Jimma-Arjo Meta 1 199 92 1,291 4.310 2.149 6459 Bedhasadedessa 303 31 334 813 861 1.674 Subtotal 3 Kebeles 1,841 123 1 975 5.852 3.010 8862 Wmamaribo 624 35 659 1.918 1.980 3,898 Limu-Seka Medajalela 376 8 384 1.450 1.461 2911 =5 Gemta Tokuma 481 12 493 1110 908 2018 Damme 664 - 664 2,474 1,594 4,068 Subtotal 4 2.145 55 2,200 6,952 5.943 12,895 Grand total 30 12,791 1,294 14,085 38,817 34,540 73.157 Source: Socio-economic Interim report. July 2006 3.2.3. Population The population in the project area is given in Table 3.1, above. It is estimated that a total of 73,157 people, clustered into 14,085 households in the 30 DIZ kebeles. of which 47% are female will be affected at various degrees by the project. This means the rural Kebeles, which are falling in the DIZ (Command & Reservoir Area) consist of 15% of the total rural population of the above-mentioned five Woredas. It is also noteworthy that 9% of the households are female headed. Water Works Design & Supervision Enterprise 16 In Association with Intercontinental Consultants and Technocrats Pvt Ltd. llubaborAijo Dedess* Irrigation Project Settlement Planning May_2QC7__ 3.2.4. Major Ethnic Groups and Inter-Ethnic Relations Although different ethnic groups live in the study areas, the Oromo, including those native to the areas ana those recently resettled by the present government, is by far the largest group, 85% The other major group consists of Amhara which constitutes 7% of the total population. Other groups account for the remaining 8%. The latter groups and the overwhelming majority of the Amhara dwell in the urban centers predominantly engaged in business, though there are some living in rural areas Though the first batch of Amhara settlers, now living in rural areas are assumed to have come to then lllubabor Province, with Dejazmach Tessema Nadew, the first provincial Administrator of Minilik II, after the incorporation of the province into the newly built nation, there are some who came to reside there as a result of Derg's resettlement program intended to resettle people from drought-prone, less fertile areas of highland Ethiopia, in the aftermath of the 1984 famine. The said resettlement program also included Tigrians and Kembatas, though there are few of these in the project area The Gurage, (and of course some Amhara and Tigrians) are said to be voluntary migrants who came to pursue better life engaging in different kinds of small businesses predominantly in urban centers. In spite of the currently advocated ethnic politics and the restructuring of the regions along ethnic lines, which is often criticized by many for setting off inter-ethnic conflicts and social discord elsewhere in the country, the different ethnic groups in the study area so far live in peace and mutual respect. The fact that a lot of inter marriage has taken place between the native Oromos and the other groups must have contributed to the currently prevailing peaceful coexistence. While the recently settled Oromo groups from East and Central South Oromia have no difficulties to get along with their native brothers, the officials of the surveyed woredas noted that there are no significant conflicts attributable to ethnic differences, as a whole. The often observed minor conflicts are related to resource distribution and regulation of resource utilization, mostly between the native Oromos and the newly resettled ones, implying that the problem is predominantly economic than ethnic oriented. Water Works Design & Supervision Enterprise In Association with Inureontlnatal Consultants and Tsehnocntt Pvt Ltd. 17Arjo Dedessa Irrigation Project SettlementPlannlD^ ^JJay2007^^ — Despite the appreciaDly peaceful co-existence, however the study reveals there is still a need for targeted interventions by all concerned bodies, and particularly by government administrative structures, to further smoothen the relationships among the various groups irrespective of ethnic differences With regard to religion, the distribution appears to be more or less equivalent. According to the housenold survey 51% of the total surveyed households are Christians, 41% Muslims and the remaining 8% unspecified. 3.2.5. Traditional Institutions Ethiopia is a country of varieties of cultural groups with more or less distinct indigenous practices and traditional social institutions, the social service of which ranged from regulating communal labor and bunai ceremonies to administenng resource use and resolving all sorts of conflicts. The Oromo are one of the groups who have rich traditions and social institutions, such as the Gada institution These institutions ana the persons leading them used to claim a religious aelegacy and transcendental authority which were unquestioned and taken for granted by the society However, their religious aura ana associated respectability and acceptability were eroded by anti-religious, anti-tradition, Marxist propaganda and harsh measures during the 17 years of the Derg regime to the extent that some of them altogether ceased to exist (Kelklachew Gebba Hydro Power Project, 2004). The only community based institution, which demonstrated remarkable resilience in the face of the severe Marxist persecution is the bunai association called Idir in Amharic, (also called by the same name in many pans of Ethiopia), which is still existent in almost all Ethiopian communities, including the project areas, having more or less similar structure and functions. Though the main function currently undertaken and, probably that necessitated the establishment of Idlrs, is burring of the dead, and financially assisting and consoling the families of the deceased, there is an increasing interest among many international and local NGOs as well as donors to use these institutions as channels to local development. This interest emanated from the search for sustainable and human centered development strategies call for an active and genuine participation of the local people. It is believed that working in partnership with community-based organizations, would develop a sense of Water Works Design & Supervision Enterprise la Association with Intarconttnatal Coasnltants sad Tochnoerata Pvt Ltd. 18Arjo Dedessa Irrigation Project Settlement Planning May_2007__ ownership by communities, would smoothen the handing over of project out puts at the phasing out of projects, enhance self-reliance, facilitate genuine participation and hence, ensure sustainability (Kelklachew, ASDA, 2006) In Oromia too the role and authority of currently active traditional institutions do not formally exceed regulation of burial ceremonies, and coordination of labor force during peak agricultural seasons as well as houses and fences building; and other activities such as arbitrating minor conflicts, resource allocation, especially forest trees for honey production. Such institutions are locally called Tula and Tute. As just indicated, one of the main functions of the traditional social institutions in the study areas was conflict resolution of all sorts Although minor conflicts are still resolved through this traditional mecnanism, major conflicts, for example those involving homicides, are no longer dealt with these traditional systems out are referred to the court of law. Yet what ever the case may be it is always first taken to the Kebele administration and it is the Kebeie administrations that decides which cases should be taken to the iegai court and which ones should be arbitrated according to tradition. Despite the fact that the Kebeie is a formal government administration unit, the individuals in leadership are always from among the people and are part and parcel of the tradition. Thus in a way they seem to play the role of mediating between tradition and modernity Under all circumstances, the culture of respecting eiders and religious leaders, listening to and valuing their advices is still strong at community levels Thus there is no doubt that convincing these social groups of the benefits and rationale of development projects and winning their support has tremendous values in popularizing any development projects and ensuring the support and acceptance of the local people Indeed the formal government institutions, including the different sectoral offices and even the Police, more often than not, make use of the good will of such individuals and the local social Institutions in their effort to attain any developmental or political goals. The same method could be applied in relation to the project under discussion, and especially in terms of smoothening the resettlement process. Water Works Design & Supervision Enterprise 19 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning 3.2.6. Non-Govemment Organizations May 2007 NGOs activity in all the study Woredas is practically negligible. While the local ethnic- based NGO, Oromo Development Association (ODA) is involved in family planning and reproductive health activities in collaboration with Packard Foundation, in all Woredas of the three Zones, the only NGO active in some Woredas of lllibabor zone is Menschen Fur Menschen. The assessment team had the opportunity to witness a ceremonious reception for the founder and director of this NGO in Yanfa town, in relation to the organizations pledge to start operation in Borecha Woreda soon. Menchien fur Menchien is engaged in diverse development activities in lllibabor zone, which include building school infrastructures, opening of boarding schools, establishing vet clinics, provision of potable water and promoting reforestation. It could therefore be plausibly concluded that little can be expected of NGOs, as modern civil society organizations, to assist in and help to realize the resettlement program in the area. However the few NGOs operating in the area could be approached to involve in the rehabilitation phase of the resettlement program in terms of provision of social service facilities Water Works Design & Supervision Enterprise 20 la Association with Intercontinental Consultants and Technocrats Prt Ltd.Arj o Dedessa Irrigation Project Settlement Planning 3.3 Social Services 3.3.1. Education: May 2007 The distribution of educational institutions and student enrollment rate varies among Woredas falling under the project impact zone. However, a common trend for all emerges exhibiting a critical disparity between services provision and the demand for it. According to interviewed officials from the education offices of the Woredas, and statistical reports from the same offices, the number of educational institutions does not match the magnitude of school age population in the Woredas. It was confirmed that the educational problems in the Woreuas are not attributable merely to limitation of the number of institutions, but aiso to the lack or snortage of basic equipments including desks and chairs, all sorts of teaching aids, libranes and other educational material. The average ciass size and teacher-pupil ratio were reported to be 78 and 1:65 respectively More importantly, lack of teachers in the required number and qualification has tremendous adverse impact on the quality of service with long lasting repercussion on the desire to qualify students to join institutes of Higher Learning and hence producing well educated future citizens. Whereas Bedeie and Jima-Arjo have one preparatory school each, and Bedele has one technical school. There are no such institutes in the other Woredas. Moreover, the enrollment rate is generally low, while that of female is much less as compared to that of male, and the problem is more pronounced in rural areas. Structural problems that emanate from overall perception of women’s social status and their culturally ascribed roles, has significant impact on stranding girls education. 3.3.2. Health Services The current status of health care provision is much below the minimum standard as is the situation in the education sector Not only the health service provision facilities are in adequate as compared to the general population size, but also the capacity of service delivery of the existing facilities is below the expected standard Officials attribute this problem to lack of budget, high turn over of health professionals, and lack of necessary medical equipment and medicines. Community members, who participated in Water Works Design & Supervision Enterprise 21 la Association with Intercontinental Consultants and Technocrats Pit Ltd.Arjo Dedessa Irrigation Project Settlement Planning_______ May 2007 focus group discussions, while confirming the just mentioned problems, also mentioned lack of commitment on the part of service providers as one major factor that worsened the health service provision. The statistical reports from all surveyed Woredas that listed the top ten diseases in their respective Woreda also indicated that most of the diseases from which the people are suffering are potentially preventable, which include malaria, UPI, intestinal diseases caused by parasites, diarrhea, skin infections, etc. they could have been alleviated through the appropriate implementation of the preventive health care strategy that is given much emphasis in the current nealtn policy of the country Contrary to what is set as minimum standard in the health policy document, current ratio of health care institute and population in the assessed Woredas stands at 1 health post to 12,000 people on the average, while the recommended standard is 1:5000. Assuming that the existing service provision would further be negatively impacted by the project since some facilities will fall in the reservoir areas, ana need to displace some proportion of the population and might create problem of access to the existing facilities. It could be concluded that adequate attention should be given to healthcare provision aunng the implementation Lack of adequate health care services were stressed even more among the recently resettled population, who complained that the government offices have failed to live up to their words in this regard. They reported that much of the promises pledged by the government during the campaigns to convince these people to volunteer for resettlement remained unfulfilled. This encounter had a significant influence on people’s perception of the envisaged project and all the public life improvement promises to be expected. When discussing about the possibility of relocating some farmers from the reservoir and command areas and the projects’ intentions to do the relocation with the necessary measures to fulfill the social service provision requirements, most participants expressed their skepticism refemng to their recent experiences of unfulfilled promises. 3.3.3. Water Supply The scarcity is observed also in water supply in the study area. The number of potable water supply schemes as well as the capacity and regularity of the services of schemes is found to be much below the demand of the population. Water Works Design & Supervision Enterprise 22 bi Allocution with laureontlnrata) Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May 2007 Paradoxically, the project area is rich in water resources (which is the very reason for its identification for the envisaged project), but the vast majority of the people have no access to potable water in sufficient quantity and at reasonable distance It seems that the Amnaric saying “yabayin lij wuha temaw” (the children of Abay are dying of thirst) perfectly fits. Althougn the potable water service coverage is below the national standard in all Woredas, the situation in Borecna (where its 11 kebeles are estimated to be at least partly affected Dy the reservoir) is even more pronounced, the current coverage rate being only less than 3%, followed by Limu-Seka (10%). The highest is reported to be that of Bedele (39%) owing to its long-standing status as an Awraja. The fact that many of the top ten diseases are water oom ano related infections also confirms the magnitude of the problem 3.3.4. Other Infrastructures and Services Although all the major towns (capitals) of the project Woredas have all-weather roads almost all the rural kebeles including kebeles where the reservoir and the command areas fall in, have no all-weather roads and are accessible only during dry seasons All but Yanfa have postal and telecommunication services, though the systems is relatively modem in Bedele, and only three of them (Getchi. Bedele and Jimma Arjo) have electric power. Despite this fact however what focus group participants in the rural kebeles emphasized most was, lack of access roads to the nearest urban centers, which would have given them invaluable service in terms of getting better markets for their products, alleviate accessibility problems to health institutions, especially during the most frequent encounters of prolonged labor and complications of delivery of women. They bitterly complained about the fact that they are often compelled to carry pregnant women and senously sick or accidentally injured patients a long way whereby many cases of deaths on the process have been encountered. On the whole social service provisions and infrastructure facilities are at rudimentary stages in all Woredas and almost non-existent in the rural kebeles Water Works Design & Supervision Enterprise 23 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessi Irrigation Project Settlement Planning 4. PROJECT IMPACT ZONES 4.1. General May 2007 As has been already mentioned in the preceding parts, the project impact zone consists of five Woredas located in three zones (Eastern Weiega, lllubabor and Jima Zones) of Oromia Region There are 30 Keoele Administrations, which are affected by the project. Fifteen kebeles are falling in the command area. These are shown in Table 4.1. Another fifteen Kebeles are falling in reservoir area, are shown in Tabie 4.2 Table 4: 1 KeDeles falling under the Project Impact Zone (Command Area) Zone Woreda keDele Component Coverage Lilokane Command Fully Chafiejaieia Fully Bekelicnoiftu Fully Bildimaoaru Fully Bedelle Chilaiobildima Fully Ambeieta Fully Koiosme Fully narotatesa lllubabor _______________ Subtotal 8 Chitubosena Command Partly Mams M Partly Gee hi Yebeio ■ Partly Wakel • Partly Sub Total 4 Ljgama Command Fully East Woiga Jlmma Arjo Meta Command Fully Bedhasaaedessa Command Fully Sub Total 3 Total command Keoeies 15 Table 4 2 Summary of the Project Impact Zone (Reaervoir Area) Zone Woreda Kebele Component Coverage Chewo Reservoir Partly Naiaro ■ Partly Agidearba ■ Partly Darasidan ■ Partly lllubabor Borecna Chulu M Partly Golijo ■ Partly Beieka w Partly Merkato «• Partly Buko w Partly Beiati M Partly Gubahora H Partly Sub Total 11 Wmamaribo Reservoir Partly Jlmma Medajalela ■ Partly Llmu Seka Gemta Tokuma N Partly Damie Deneba ■ Partly Sub Total 4 Total Reservoir keoeies 15 Water Works Design t Supervision Enterprise 24 In Association with Intaramtlnatal Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May 2007 These Kebeles account to 18 percent of the total (170) Kebeie Administrations found in the five Woredas falling under the project impact zone. The benefit gained from the envisaged project will not De limited to kebeles falling in the commana and reservoir area, but will extend directly or indirectly to other members of the community found in the near by areas including urban centers Yet, the main project impact zones can be grouped into the following three categories. 1) The area to be inundated ^reservoir area), occupying about 8,500 ha of land, with about 2- 3 km radius of buffer area (area around the water body), 2) About 13,665 na of imgated land (commana area) with various levels of the canal systems and access roads, and 3) The areas in which the displaced people will be resettled 4.2. Properties to be Affected and Categories of Compensation As is common in any large scale development initiatives, it is inevitable that the implementation of this project will entail expropriation of land and certain magnitude of damage on properties of the people residing in the direct impact zones of the project. The properties that may befall such damages are categorized in to two categones These are communal properties and individual properties and the resource category determines the type of compensation 4.2.1. Communal Properties As has been mentioned in the preceding parts, the project covers vast area and most likely many social service facilities like schools, health posts, and potable water supply schemes located with in those Kebeles falling in the project impact zone will be affected. In addition, some religious institutions such as Churches and Mosques falling with in the project area will also be affected. This indicates that the resettlement program requires careful consideration, especially in preventing damage to communal properties with religious or cultural significance, since most of them could hardly be replaced or compensated for. 4.2.1.1. Community Compensation This includes compensations for loss of communal properties like social services (schools, health Center/Post, water supply schemes, etc), cultural centers, religious institutions, and grazing land. Here the compensation is not carried out on individual basis, but it is done on community level. Water Works Design & Supervision Enterprise bi Association with Intercontinental Consultants and Technocrats Pvt. Ltd. 25Arjo Dedessa Irrigation Project Settlement Planning May 2007 In Doth cases the people are entitled to De compensated for the loss of their properties, in line with the current development approacn as well as the relevant legal and policy provisions discussed in the preceding sections As indicated in the section that dealt with the socio-economic profile of the project Woredas, the status of social service infrastructures is much Delow recommended standard in the entire Woredas The situation in the project impact zone is no exception. In fact some of these latter KeDeies have no such facilities at all. But this ooes not mean that the people are not entitled for such services The project is thus obliged not only to compensate for fully or partially damaged or demolished infrastructure but also to provide the communities with new services and/or upgiade existing ones bring them closer to or at par with the recommended standard. 4.2.1.2. Communal properties Found in the Command and Reservoir Areas It is clear that the project should replace what ever service provision institutions /infrastructures there were within in the reservoir area, and in some parts of the command area, in which vanous systems of canals, access roads, and other project related infrastructures are to be constructed Obviously the project activities might not affect communal properties in the command area in the same degree as those in the submergence area, but some of the service provision facilities would somehow be damaged The project should make sure that all such facilities are restored and equipped at a different place within the same area, notwithstanding the need to further capacitate the non-affected ones. It is expected that while restoring the facilities at resettled sites their level and standard will not remain as existing, but would be improved in light of modem facilities. The assessment revealed that there are no communai properties of religious and or cultural significance in the reservoir area. It is true that there are a few mosques and religious centers within the recently established settlement areas. However, these are newly built in a temporary basis and have no historical significance and can easily be replaced. The few Churches in the old settlement areas (now mostly in the command area), which probably have historical Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 26Arjo Dedessa Irrigation Project Settlement Planning May 2007 significance, are also built on places not fit for irrigation, or canal routes and access roads, such as picks of hills and thus could hardly be affected Moreover, it is assumed that the project will take all technically possible precautions to avoid damage on such institutions There is therefore no need to replace such religious and cultural heritages, even if it were possible to replace them Nevertheless, available data showed that there are 30 schools, 34 health facilities, 30 residence houses of DAs. and 30 kebele offices, in the 30 project impact kebeles Of these, 15 of each Kind are within the reservoir area While the vast majority (at least 80%) of the latter may inevitably be demolished, it is assumed that only 20% of those within the command area will have similar fate. The 20% estimate is arhved at by considering that only 4 kebeles from Gechi fall within the command area only partially and that there is high probability of sparing some within the 11 kbeies of Bedelle that entirely fall within the command area. Based on this calculation the project will be required to build or rejuvenate a total of 15 schools, 15 health institutions, 15 kebeie offices, and 15 DA houses. Of these, 7 form eacn kind are to be built in the 7 selected resettlement sites, while the remaining budget should be expended for either repairing, or upgrading facilities and/or building new ones within the command area where from people may not be dislocated. The estimated cost for these is presented in the relevant section. As regards facilities in the resettlement sites, the responsibility of the project is not limited to compensating to what the people lost in their previous settlements, but to ensure that the facilities are of better capacity and quantity to be able to provide better services to resettlers as well as people from the host communities. 4.2.2. Individual Properties By individual property, it is meant the properties the individuals residing in the project impact zones may lose owing to the implementation of the project. The compensation in this case shall consist of paying out money for demolisned housing units, for home gardens and all perennial crops and trees on them; for loss of opportunities due to relocation; and compensation for time and labor used to set up new farms and homesteads elsewhere. Water Works Design & Supervision Enterprise la Association with Intarcontlaaital Consultants and Technocrats Pn. Ltd. 27Arjo Dedessa Irrigation Project The individuals whose properties would be expropriated or damagea are to be treated differentially according to the degree of damage and the probability of their dislocation and resettlement as presented in the following sub-sections 4.2.2.1. Individual Compensation Individual compensation shall consists of compensation for demolished housing unites, compensation for home gardens ano all perennial crops and trees on them, compensation for loss of opportunities due to relocation; and compensation for time and labor used to set up new farms ana homesteads elsewhere. The cost necessary for this is provided in section 4 4 below 4.3. Rehabilitation Besides compensation for the properties that the displaced people have to lose, both at individual ana community levels, as discussed earlier it is imperative that appropriate mechanisms of rehabilitating them are in place indeed rehabilitation is understood as part and parcel of resettlement in current resettlement approach Rehabilitation measures may include provision of a package of support items ana programs The package may consist of provision of grain aid till the resettlers collect the first harvest after resettlement, provision of loans, provision of fertilizers and processed seeds (free or for credit) provision of training in soil ana water management, livestock breeding, and other vocational training opportunities. Given that resettlers might not get enough grazing land for their livestock, or compounds with enough place for building bams for cattle, it might be necessary to train and help them own modern/cross breed animals with high level of yields with fewer livestock heads, the output of which might be much smaller in comparison, as well as methods of preparing feed from the by products of crops and even production of irrigated fodder crops. The cross breed varieties of oxen also have higher traction power than the local ones In short, the project has to consider the necessity rehabilitating in line with integrated rural development, with all its components at new settlement sites for the displaced people as well as their host communities. This may, however, require assessment study at a later stage of the project implementation process, to identify the people s felt needs and priorities. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pn. Ltd. 28Arjo Dedessa Irrigation Project Settlement Planning 4.4. Estimated Number of Would-be Displaced Households 4.4.1 Households from the Reservoir Area As nas been oescribea in the preceding sections, the project implementation would sumerge about 8,500 ha under the reservoir Based on the existing settlement pattern and population density of the project area, it is estimated that about 6,375 people clustered into 1,275 households, are living in kebeles and/or villages that are expected to De suDmergea permanently under the reservoir Despite the fact that all the 15 keDeles to be affected Dy the reservoir will De partially suDmergea, it is assumed that all residents would oe resettled just to De on the safe side. This is also essential from social and cultural considerations. Accordingly the number of households to be dislocated is 1,275 Of these 10% are estimated to have houses with roofs of corrugated iron sheet, while the rest have houses with grass thatched roofs 4.4.2 Households from the Command Area The total estimated number of people living in the command area is 10,696, the number of households being 2100 Given that most of these kebeles are sparsely populated and most are to be only partially affected, it is assumed that only 10% of the total population residing in these kebies might need to be resettled. Moreover it is assumed that there may De a possibility of accommodating some of them within the already existing settlements. The number of households to be dislocated will thus amount to 420. 4.4.3. Total house hold to be resettled: Thus the total number of house hold to be resettled would be 1695 say 1700 as given below HHs for full resettlement from reservoir area........................... 1275 HHs for partial resettlement from common area (Only 20% of 2100).................................................... 420 Total HHs to be resettled.......................................................... 1695 Say .......................... 1700 Water Works Design & Supervision Enterprise 29 li Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning 5. PROPOSED RSETTLEMENT ACTIONS 5.1. Introductory Notes May 2007 In proposing the resettlement plan of Arjo Deaesa Irrigation Development Project, the experiences of development projects in the road sector, discussed earlier, have been taken into account It should be reiterated that unlike previous large-scale irrigation projects implemented with the objective of improving the level of agricultural produce of the country as a whole, and which were owned and managed by the central government, the proposed irngation project is meant to be for the peopie themselves Hence, as a matter of pnnciple, the plan should, and of course gives, adequate attention to avoid altogether, or at least minimizing the possibility of displacing and/or resettling of people 5.2. Mechanisms The plan thus should involve mechanisms by which negative impacts that may possibly follow the implementation which may not to go beyond a rearrangement of the current settlement pattern And it is possible to arrive at a consensus with all stakeholders on how to go about the rearrangement, and how to ensure everyone would equally and fairly benefit from the project. This is especially true for most of the project area given the relatively sparse pattern of settlement and availability of uninhabited land. In addition, as the irrigated land is for the displaced people, it is proposed that no compensation for loses of land is to be made, instead resettlement site and the irrigated farm will be provided. The compensation will rather be for costs of relocation (transfer), demolished houses, fences, and damaged/abandoned perennial crops and trees. As observed, the types of houses in the area are dominantly two types: Wood and mud wall with corrugated iron sheet roofs, predominantly wood and mud wall with grass roofs. Most of the houses have wooden fences and around the houses few perennial trees, except those owned by the recent settlers. The perennial trees are estimated to be 10-12 on the average and sometimes include fruit trees such as mango. Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 30Arjo Dedessa Irrigation Project Settlement Planning 5.3. Options for Resettlement Two options could be proposea for resettling the would-be displaced housenolds. May 2007 2 The first option is paying out money for the individual HHs for the houses and other properties to be demolished so that eacn HH will rebuild as ne wishes in the area to be provided. The proposed payment rate based on previous experience is as follows: • Birr 1 200 per m for houses with corrugated iron sheet and wood and mud wall 2 • Birr 600 per m for houses with grass roof ana wood ana mud wall • Birr 80 for wooaen fence per meter length • Birr 1,000 for each HH assuming the cost of transferring and interruption. • Birr 60 for perennial trees • Payment for each HH to be displaced for the number of construction period (years in which farmers will not get benefit from the land) based on the average annual income of HH in their previous residence The second option is to construct standardized residence for all the displaced households at project cost ana provide the finished houses. Still payment has to be made for transferring to the new site and for trees 5.4 Cost Estimates Based on the above sample count and measurement aata, the cost of resettlement is estimated to be about 105 million and presented as follows: For resettlement of HH from reservoir area For resettlement of HH from common area For Replacement of Social service For compensation for command propertis Table Birr 37,961,220 00 (Table 4.1) Birr 12,589,880.00 (Table 4.2) Birr 5,815,700.00 (Table 4.3) Birr 6.647,300,00 Cfabte 4 4) Birr 63.009.100.00 Water Works Design & Supervision Enterprise la Association with Intercontinental Consultants and Technocrats Pvt Ltd. 31Arjo Dedessi Irrigation Project Settlementplanning Table 4.1. Preliminary cost estimates of resettlement of people from the reservoir area May 2007 Items Number Rate Total value Relocation costs 1,275 1000 1,275,000 Houses with Corrugated Sheet roofed 127X42 1200 6,400,800 HOUSES WITH GRASS ROOFED 1,148X28 600 19,286,400 Fences 1,275X65 80 6.630,000 Perennial trees 1,275x12 60 918,000 Sub Total Estimated Cost 34,510,200 Contingencies (10%) 3,451.020 Grand total Cost 37,961,220 Table 4.2. Cost estimate for properties of people to be resettlea from the command area Items Number Rate Total value Relocation costs 420 1000 420,000 Mouses with Corrugated Sheet roofed 44X42 1200 2,217 600 Houses with grass roofed 376 X 28 600 6,316,800 Fences 420 X 65 80 2.184.000 Trees 420x12 60 302,400 Sub Total Estimated Cost 11 440,800 Contingencies (10%; 1,144 080 Grand total Cost 12,584 880 Table 4.3. Estimated cost for Replacement of Social Service facilities Facilities Numoer required Estimated costs in Birr per unit Total Schools, 7 400 000 2 800 000 Health posts. 7 250,000 1,750,000 DAs houses 7 50 400 352,800 Kebele offices. 7 55,000 385,000 total 5,287,000 Contingencies. 10% 528,700 Grand Total 5,915,700 Table 4.4. Preliminary Cost Estimate of Compensation for Communal Properties at the Resettlement Sites Facilities Number required Estimated Cost m Biit Total Schools 8 400 000 3.200,000 Health Posts 8 250 000 2.000,000 DAs’ Houses 8 50,400 403 200 Kebele Offices 8 55,000 , 440.000 Total Contingencies. 10% 8,043,000 Grand Total 604 300 , 9,547,300 Water Works Design & Supervision Enterprise 32 li Auocudoi with iBurcoittiMtal Cauultuti ud Ttchaoenu Pvt Ltd.Ar jo Dedessa Irrigation Project Settlement Planning 5.5 Important Considerations May 2007 The following points are also among the factors of utmost importance, which need consideration at the latter stage of the feasibility study, for realizing effective resettlement program > Conducting census of housenoids located in the project impact zone > Conducting inventory of the household properties, which will be affected by the project (all properties liable to De aamaged including the type and size of each house, and holding and other immovable assets) should be identified and recorded. > As it has been cited on The Wond Bank Resettlement Guideline, the local people have to participate actively in all the process of the resettlement program through their representatives > Ensure that the institutional capacity of the concerned line agencies, at least at woreda levels is enhanced so as to enable them to implement the resettlement program efficiently In addition, difference in terms of resource possession, the magnitude of the project impact on of each household should be identified, i.e. some families may lose their homesteads by inundation but not their farm plots or vice-versa, others might be compelled only to rebuild their houses further back from the project structure while others might have to leave their Kebeles for good. This makes both compensation and relocation very complicated. 5.6. Resettlement Sites 5.6.1. Criteria for Selection of Resettlement Sites While selecting the resettlement sites the following criteria have been taken into consideration: • The sites must be marginal lands (not suitable for irrigated agriculture within or out of the command area) • The settlement sites must not be to far from the farm (not more than 5-10 KM) • The sites must, as much as, possible be doser to already established services (markets road, health services, education services, electricity, water supply, telephone, bank, administrative, etc.) • The community has to agree on the probable sites for settlement Water Works Design & Supervision Enterprise 33 Ii Auodatioa with lntareontinoiul Consultants aid Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May2007__ As indicated earlier, the irrigated farm is pianned for the community: the settlement area should oe close to the command area so that they can easily access their farms. Therefore the selection of the settlement area should take into account means in which the physical and psycnological convenience of resettlers is ensured without adversely affecting that of the host communities Existing social services as well as resources is another imperative consideration. Besides, the selected settlement area should be examined in terms of its convenience for health, for example it should not be water logged, which creates an atmospnere which will be conducive for mosquito breeding Since livestock and livestock products constitute considerable proportion of the household income in the project areas, the residential area must consider the availability of place for constructing bams and feeding troughs. 5.6.2. Selected Sites Accordingly, seven sites, 1 in Jimma Arjo, 1 in Limu Sexa, 2 in Borecha, 1 in Gechi, and 2 in BedeJe woredas are selected. All these sites are located at the peripheries of the command area from the respective directions of the mentioned woredas. It would be best if a block containing four residential houses, suitable for humans and livstock movements to and from residential area, with garden and barn areas (similar to the sketch shown in Fig 5.1) is selected Water Works Design & Supervision Enterprise 34 Id Aisoeution wltk Intereontlntnul ConraltaDU and Teclmocrati Pvt Ltd.Arjo Dedessa Irrigation Project SettlememPlanning^—— Figure 5.1 Proposed settlement sketch RRRRR RRRRR R H H H H H R H H H R R R H H R H R RRRRR RRRRR R R H H H H H R R H H RHHR RHHR RRRRR RRRRR As already indicated alternatives for minimizing the number of livestock currently owned by the community should be provided in the form of improved livestock breeds, along with training in methods of prepanng feed from the by products of crops and/or production of irrigated fodder crops Water Works Design & Supervision Enterprise In Ansoelntton with IntwconOnanul Connttuti and Teehnoento Pvt. Ltd. 35Arjo Dedessi Irrigation Project Settlement Planning 6. STAKEHOLDERS’ PERCEPTION AND PARTICIPATION 6.1 Special Situation in Arjo Deddesa May 2007 It should be noted from the outset that the situation in Arjo Dedessa is quite different, since the majority of the people to be affected by the project are new settlers not yet adequately established in the area. This has both positive ana negative influences on the current need to resettle the project affected people. The negative side of the situation is that these people left their homes in Eastern and South eastern Oromia with the expectation to escape the food deficiency resulting from recurrent araugnt, land shortage and soil degradation back at home. Although their resettlement was on voluntary basis, it is obvious that leaving one's birth, place once and for all, has multifacet psychological and social impacts and it is assumed that it has taken these people quite a long time to get over the trauma and nostalgia ana adjust themselves to the inevitable reality, although it may be difficult to conclude that they have already got over it. They might have come to think that the present settlement is their home and have surely tried to establisn themselves, and the process obviously has inflicted on them a lot in terms of psycnological and physical strains. Thus, the idea of resettling these people again might be perceived by them to pass in the same traumatic situation they already experienced Secondly, as discussions with vanous focus groups indicated, there are a lot of unfulfilled promises regarding the provision of social services, and other suppons in their efforts to rehabilitate themselves that might make them skeptical towards new, similar, pledges related to the project-induced displacement. This, presumably, would make convincing them and getting their consent and willingness rather difficult. On the positive side, the fact that they are new comers and still strange to the locality. This could mean that the sense of belonging to the area is not deep-rooted and not hard to deal with. The feelings like “the land of my forefathers", could not be there in the way we sensed it in Gumara. This will make displacement less sentimental and hence less difficult to implement. Moreover given the fact that the area is relatively dispersedly populated, there is a possibility in which the displacement will not go beyond a rearrangement of settlement within the affected Vater Works Design & Supervision Enterprise In Association with Intercontinental Consnltanu and Technocrats Pvt Ltd. 36Arjo Dedessa Irrigation Project Settlement Planning May 2007 Woredas and the areas they have now started to live in, and this will certainly have an appeasing effect to a certain extent 6.2. People's Perception In the FGDs conducted with community members at different sites in the study area, the participants were requested to express their perception of the project both positive and negative The results are discussed in bnef here under 6.2.1 Positive Impacts As regards positive impacts that they expect to result from the implementation of tne project, their response was encouraging It was nowever. difficult to determine at this stage whether the response emanated from expediency or it was a neartfelt one, given the pan-Ethiopian culture of secrecy and the longstanding tradition of government-people relationship. The positive impacts of the project as they perceive it included: • The access roads that they expected to have when they were resettled here but could not materialize would be constructed due to the implementation of the project, which would enhance local trade and sale of local products at better price • The project would create a lot of employment opportunity for them with the effect of augmenting their income. • Even thougn some households would be resettled, the project would pay reasonable compensation for amenities lost in the process and the resettlement area would not be far from their present residence • The resettlers would be provided with corrugated iron-roofed houses instead of their grass thatched ones • Social services, which they were aspiring for including health facilities, schools, vet clinics, and the like will be provided in the resettlement areas and the people would have the privilege of benefiting from these services. • Resettlers would be given better land, or at least equivalent to what they had before, and would be provided with all sorts of agncultural inputs free of charge, at least until they establish themselves in the new settlement areas. • They will engage in fishery as a result of the reservoir and supplement their agncultural income, etc. Water Works Design & Supervision Enterprise 37 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlemen^lannln^ 6.2.2 Negative Impacts Regarding their apprehension of the negative impacts the project may bring about, FGDs and individual interviewees stated as follows: • It would displace some households and it could not be Known for certain wnether the displaces would get enough land in the resettlement areas or whether they would still have access to envisaged irrigation • Part of the natural forest may be damaged • The resettling households, would lose grazing lands which will have negative impacts on keeping of livestock, especially fattening, that used to be one major area of economic engagement ano source of considerable portion of their housenoid income • It could be assumed from this fact that their previous experience in resettlement has had an effect on their acquisition of knowledge ano awareness relevant to resettlement issues Thus, it could be said that at least some proportion of the residents of the impact zone Woredas would not see negatively either the implementation of the project or the possible resettlement that would follow 6.3. Perception of Local Government Representatives Discussions were also held with the officials of the impact Woredas regarding the advantages and disadvantages of the project. They were of the opinion that the project has immediate and long-term benefits for the local people, the region, and the country at large, though it may also entail some negative impacts. 6.3.1 Positive Impacts The advantages of the project as envisaged by them were the following: • Provide employment opportunity to the people at the project construction phase • Provide employment opportunity, though may be limited, at the operational phase • Improve inter-Woreda and intra-Woreda communication, especially of roads • Be possible to introduce different fish vaneties in the reservoir and make the people benefit from fishery Water Works Design & Supervision Enterprise 38 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project SettlementPlannln^^^ 6.3.2 Negative Impacts Regarding the possible negative impacts they mentioned • The inevitability of resettling some households and the problems associated with it • Damage of a certain magnitude on the natural forest May 2007 • Possible spread of water borne diseases, wnich is already the main nealth problem especially of maiana as a result of the stagnation of water in the reservoir area 6.4. Proposed Mitigation Measure Both FGD participants including Woreoa level Officials and individual key informants were also requested to suggest possible means of mitigating the perceived negative impacts of the project Their suggestions are as follows • Precaution should oe taken in resettling people and ensunng that they would be able to improve their standard of living and income earning capacity they had pnor to the project implementation, or at least restore the levels they would have been without the project • Ensunng the fairness of compensation disbursement by involving the beneficiaries themselves and community elders and religious leaders in the committees or taskforces of the implementation of the program- precaution to avoid corruption, nepotism and partisanship • Taking appropriate measures of capacitating Woreda and zonal levei offices relevant to the implementation of the resettlement program (Specific areas of numan capacity building identified included: provision of training in participatory development practices; community based natural resource management, monitoring and evaluation, etc) • Training of beneficiaries in fishing and marketing of fisn • Mechanisms to prevent the possible occurrence of maianal infestation should be designed before the implementation of the project • introducing modem breeding system and vaneties of animal feed may compensate for the loss of grazing land and people s fear of its negative impacts on cattle breeding 6.5. Community Participation Participation is defined as "a process of communication among local people and development agents during which local people take the leading role to analyze the current situation and to plan, implement and evaluate development activities’ (FAO, 2002: 6). Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 39Arjo Dedessa Irrigation Project Settlement Planning May 2007 The word participation has become almost a clich6 often claimed by NGOs, and as of recent times, by government organizations as a basis for sustainable development But it is used witn a range of meanings While it can refer to genuine intent to hand over the power to interpret, analyse and come up with solutions to development problems to the communities themselves, in many cases, imposition of government interests have been justified by cursory consultation processes, which are then referred to as participatory. The common approach of government structures claimed to be ensuring community participation is, wonting in collaboration with traditional community-based organizations The other option, which is usually usea particularly in dissemination of information and obtaining consent from the community is using the new socio-political and administrative structures established by the current government at grass roots level Known as “yelimat budenocn" (development teams) that compnse 20-30 nouseholds. in both cases genuine community participation ooes not seem to be a reality in the complete sense of the term It was observed that in most cases government representatives seemed to tend to equate informing the communities about a development plan with the rhetorically up held approach of participating communities through out the project cycle Thus, despite a recognizable change in development approaches on the part of the government agencies, the long-standing top-down approach does not seem to have altogether ceased to exist. In current discourse around development-induced resettlement it emphasized that avoiding the negative social and economic impacts of projects on indigenous people and creating in people s minds the sense of ownership of the project, could be achieved only through the genuine participation of the same people through out the process. However, the field assessment in the Arjo Dedassa project woredas revealed that little is done by all concerned bodies in terms of information dissemination and awareness creation, which are the first steps in the process of involving the people throughout the project. Even the local government administration and the various relevant offices, which were supposed to play the leading role in the information dissemination and awareness creation campaign, were to a large extent, unaware of what their mandates, responsibilities and duties in relation to the project actually are. Thus a tot of ambivalence, misconceptions and/or misjudgments were observed. Water Works Design & Supervision Enterprise 40 In Association with Ln tert on tin ratal Consultants and Technocrats Pvt. LtdArjo Dedessa Irrigation Project Settlemenr Planning May 2007 Pan of the blame for failure to prepare the minds of the people to be genuine partners in the implementation process goes to MoWR, the project management, the project staff, who have been in the field, but they have done little in response to this deficiency, at differing degrees It is hoped that by now the officials of the woreoas are better informed and they are engaged in public consultations and convincing the people about the advantages of the project, informing them of possible side effects with plans to mitigate them. Despite the fact that sucn aspects of the project activity should nave been done right from the inception, one could hope that it still is not yet too late 6.6. Gender Issues 6.6.1. Introductory Notes As is the case in many development interventions, one crucial Dut often-neglected issue, in relation to deveiopment-induced displacement and resettlement, is gender consideration. In line with many research outputs, a World Bank research demonstrates compellingiy that greater gender equality translates into greater economic growth, less poverty and more sustainaDle development (World Bank 2001). World Bank investments in many countries mainly composed of environmental and infrastructure projects with environmental impacts, sadly have neglected gender considerations. It is therefore imperative to take all necessary a priori arrangements to ensure that women get the share they deserve, not only from the projects anticipated benefits, but also in terms of participating through out the process including playing of decision making roles. 6.6.2. Gender Issues In the Ethiopian Context Ethiopia is a signatory of The UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), and other major international human rights instruments, which provided a strong basis for a policy framework to integrate gender into the social, political, economic, and legal spheres of the country. A "Women’s Policy* was formulated in 1993. To facilitate policy implementation at the Federal and regional levels, the Federal Women's Affairs Office was established in the Prime Minister's Office and Women’s Affairs Departments and Water Works Design L Supervision Enterprise In Association with intercontinental Consultants and Technocrats Pvt Ltd. 41Arjo Dedessa Irrigation Project Settlement Planning May 2007 Bureaus have been organized in 16 sectoral Ministries and in all Regional Governments respectively Moreover, effort nas also been made to address women's issues and the problem of gender inequality ano gender based discrimination in the government's other key social sector policies, program documents, and legislations including the Education Policy, the Health Policy, the HIV/AIDS Policy, the labor Proclamation, the Civil Service Improvement Policy, the Poverty Reduction Strategy Paper, the Policy on Industrial Development, the Rural Development Policy and the Food Security Strategy Paper, among others Each of these policies, programs and legislations are intended to eliminate gender inequality ano the removal of legal ano customary practices that militate against the full implementation of womens economic ano social rights including property rights and access to gainful employment. Despite these all embracing legislatives and policy measures, however, the economic and social status of women in the country remained far from improved. Indeed a seemingly harsh statement forwarded by World Bank president Mr. James Woifensohn, when they were reviewing the report from Ethiopian perspective, tells an important pan of the story of what makes poverty, in Ethiopia so pervasive He writes. •On another level, gender inequalities hinder development. While disparities in the basic rights, in schooling, credit and jobs; or in the ability to participate in public life take their most direct toll on women and girls, the full costs of gender inequality ultimately harm everyone Evidence brought together in this report shows this unambiguously A central message is clear ignoring gender disparities comes at a great cost to people s well-being and to counties ability to grow sustainably, to govern effectively and thus to reduce poverty * (OHCHR: Fact sheet on Harmful traditional Practices, No.23). 6.6.3. Situation of Women In the Project Woredas In line with the just mentioned measures taken by the government to deal with gender-related problems, Women s Affairs Offices responsible to promote gender equity and eventually do away with women's subordination to men, are established in all project Woredas Notwithstanding the fact that perceptions and practices deep-rooted in culture and traditions could not be discarded overnight, accomplishments so far attained in terms of the Water Works Design & Supervision Enterprise la Association with Intercontinental Consultants and Technocrats Pvt. IM 42Arjo Dedessa Irrigation Project Settlement Planning May 2007 improvements of women’s social and economic status, is minimal to say the least. Traditional practices that violate the legal and human rights of women are still potent. Among the harmful traditional practices prevalent in the area, discriminatory property and inheritance rights, poiygymy. early marriage, levirate marriage (wife inheritance;, female genital mutilation (female circumcision), marriage by abduction ano rape are the main. Despite the legally acknowledged entitlement of women to own land equally with men since the land reform proclamation of the last regime which still remains enforce, traditionally they are neither entitled to inherit the wealth of their fathers, nor to take their share during divorce. Religion (Islam, Chnstianity ana Traditional Religions) and culture are the main contributing factors for this reality. Concerning gender division of iabor besides their role in reproduction, women s share of productive activities ano burdens of household chores are cumbersome as is the case in most societies Althougn considerable improvement is observed regarding school enrollment of girls during the last decade or so, undoubtedly parents still prefer to send their boys to school than their daughters. Even when they are sent to school it is very likely that they are the majority among dropouts owing to early marriage and also to the distance of schools from residences which makes the travel of gins by themselves very difficult. This latter problem has also to do with the prevalence of rape and abduction. Women have also no say in family planning, be it birth spacing or limiting the number of children. It follows then, that the envisaged irrigation project takes necessary precautions to ensure that the implementation of the project contributes to the improvement of women's lives in the area. 6.6.4. Proposed measures Possible measures to be considered in order to avoid or at least mitigate the vulnerability of women to various adverse impacts during the implementation of the resettlement program include the following: . Ensure the representation and presence of women from different socioeconomic groups in all meetings related to resettlement planning; • Ensure that meetings/consultations are organized at a time when women find it convenient to attend, so that their maximum participation can be ensured; Water Works Design & Supervision Enterprise In Association with Intercontinental Coasultants and Technocrats Pn. Ltd. 43Arjo Dedessa Irrigation Project Settlement Planning May2QQ7__ • involve Woreda and Kebele level Women’s Affairs Offices and various women s groups or networks (formal or informal) through out the processes of the resettlement program; • Involve women in the indemnification of affected persons; • Consider separate meetings for women; so that they can freely discuss their apprehensions and set forth possible solutions; • Ensure women s involvement in the preparation and review of resettlement plans as well as implementation, ana monitoring of the same, • It is important that women’s associations are vested with authority, both within their communities and within wider regional and state processes, so as to preempt situations where women are mere tokens in decision-making processes; • The project snould support the different government bodies in availing loan and credit scnemes for women; • The project should help promote awareness creation campaigns to the effect that women shall abandon or combat harmful traditional practices, and are enabled to assert their legal, economic and social rights; • The project snould lobby for the proper enforcement of the legislations that outlaw women's discrimination. • Promote FP/RH programs so as to alleviate women’s vulnerability to reproductive health problems (including maternal morbidity and mortality) and burdens of rearing unlimited number of children Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt. lm 44Arjo Dedessa Irrigation Project Settlement Planning 7. RESPONSIBILITIES OF STAKEHOLDERS May 2007 It is obvious that the project is of great importance not only for the immediate beneficiaries, the people living in the vicinity of the project, but at Regional and National levels and the responsibility of ensuring that the project is implemented as intended and the that the expected benefits at all levels are reaped. Particularly in relation to resettlement and rehabilitation, the lion’s share of the responsibility is vested in government organizations, starting from the Federal to the regional and woredas levels However in practical terms, more relevant are the project and the Administrations of the project Woredas, as well as the beneficiary communities. This because the Woredas are endowed with the responsibility and mandate of promoting, planning and implementation as well as overseeing development activities in their domains, as a result of the recent moves towards decentralization of administration and devolution of power. In the following sub-sections are attempt to has been made outline some of the institutional ana public responsibilities and mandates of these entities. 7.1 Local Government Bodies As pointed out above, the move towards centralization is affected following the proclamation No. 455/2005, which mandated the Woreda administrations to plan and implement all development initiatives as well as resettlement programs. The Federal government’s sustainable development and poverty reduction program (SDPRP) identifies decentralization as the key to reducing poverty and deepening democracy The reality is, however, that woredas have major capacity gaps, in levels of staffing, in the technical and professional skills of staff in planning and monitoring, and in coordination and management. Consequently there is a disparity between the responsibility they are endowed with, and the actual capacity they have in terms of human and other resources to carry out this responsibility It could thus be plausibly assumed that the project woredas have the same deficiency and may lack the capacity in properly implementing the settlement program. It follows then that the project has to plan and execute programs to the effect that the capacity of its local partners is adequately enhanced. One area of the problem related to this deficiency Water Works Design & Supervision Enterprise 45 la Allocution with Intercontinental ConiuKanti and Technocrat! Pvt Ltd.Arjo Dedessi Irrigation Project Settlement Planning May 2007 relevant to resettlement is assumed to be reluctance to recognize the legal entitlement resettires to participate in the process and to claim their rights, when they think, is violated. This problem is in turn assumed to be spill-over from previous experiences in resettlement, especially which of the Derg’s period, which was characterized by force and little concern to human and legal rights of the people. If this assumption is found to be true, the capacity building endeavor should commence from the enhancement of awareness of the woredas officials and familiarizing them with modem development theones as well as principles and legislations related to resettlement programs. Once this is ensured, the woredas administration and relevant sector offices should assume their roles and carry out their responsibilities, which include: • Engaging in repeated public dialogues and consultation with people in the project areas, so as to create awareness among the people that the project is meant to the latter’s advantage: • Counseling and nelping resettlers to get over the possible trauma as a result of their dislocation, • Partaking in the establishment of Resettlement Committees that will play decisive role in the execution of the resettlement and compensation processes with members from relevant woredas offices, the project staff ana the community • identifying appropriate resettlement land in consultation with the people, within their respective woredas • Investing adequate time on follow up of the resettlement process and ensuring that all the necessary social services are in place and the rehabilitation measures are properly planned and implemented, • Ensuring that compensations are executed fairly and are free of corruption and nepotism, . Ensuring the genuine and active participation of the affected people through out the project implementation in general and the resettlement process in particular 46Arjo Dedessa Irrigation Project Settlement Planning May 2007 • Creating enabling environment for appeal by people who feel mistreated or under paid, • Preventing possible conflicts or managing them properly when encountered of rehabilitation are in place, They should not, however, De left by themselves while doing all of these activities The close and timely support of the project as well as the Regional and Zonal Administrations, should be at hand Equally important, out often lacking factor, is the commitment of officials and staff at all levels in the administration ladder This is an issue that deserves close monitoring and prompts rectifying measures from all concerned Dodies. 7.2 The Project The project is responsible for the overall implementation of the irrigation scheme and all activities that are related to this task in one way or another. Besides the realization of the project, its major and challenging responsibility is ensuring that the project implementation is executed with little negative impact on the people and taking appropriate mitigating measures when such impacts are unavoidable One of the latter is the resettling of a certain proportion of the people from the kebeles falling in the project impact zone. To successfully carry out this latter responsibility, it is expected to. • establish an independent office to plan and execute the resettlement program and the paying out of compensations • strengthen the capacity of the woredas administration and/or the relevant offices thereof; • partake in the establishment of resettlement committees to help the execution of the resettlement program • ensure the active participation of the community in the resettlement process . allocate the necessary budget for resettlement and compensation as well as rehabilitation and replacement and/or provision of social service in the new settlement areas and in the command area, and properly expend the same Water Works Design & Supervision Enterprise 47 tn Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning 7.3 Community Based Organizations May 2007 Several studies attest that Ethiopia is rich in the range and diversity of its informal organizations However, while these organizations are often of the greatest importance in the social and economic lives of their memOers, they are not always appropriate vehicles for addressing wider development issues. On the other hand, the formal civil society sector is relatively new and underdeveloped as compared with neignboring countries but is nevertheless maturing and assuming the cnaracteristics of civil societies elsewhere In rural communities, in particular, these informal organizations are the bedrock of social and economic life The World Bank study of associational life found that most of the households in their sample Delonged to five informal associations, ano some were members of considerably more (Mapping Non State Actors in Ethiopia, World Bank/INTRAC, 2004). The same is true to the project woredas. Almost all adult residents belong to the traditional social institution known as idir, while various sub-groups belong to semi-religious associations sucn as Manber as well as labor and financial associations such as Jigge/Debo/wonfel and iqub, respectively However due to the organizational mandates ana vision these institutions/assoaations lack the capacity to carry out development activities in the sense that formal associations could. Nonetheless these community structures, especially Idirs, could play important roles in assisting the smooth execution of the resettlement program. More specifically they can help resolve possible conflicts, they can help identify illegal claimants (people who are not residents of the project area), they can mobilize labor, and can be effective vehicles of information dissemination and awareness creation It is therefore advisable that the local woreda administrations involve and make use of these associations in activities related to the resettlement program. Water Works Design & Supervision Enterprise 48 la Auodatioa wttt lattrtonttneatal Corattuta ud Ttehasoati Pvt Ltd.Arlo Dedessi Irrigation Protect 8. CONCLUSION AND RECOMENDATIONS Irrigation projects are pnmarily conceived with and implemented to improve people's well being and economic conditions Large numbers of people are likely to be benefited The Ago Dedesa Irngation Project is one of the most valuable projects for the people in the area, Oromia Region ano the country It will provide good security and improve living standard of per pied It will also enaDie creation of a number of new employment opportunities, increase foreign excnange earnings and will help creation of market for other sectors. The current discourse around development-induced resettlement holds that avoiding the negative social and economic impacts of projects on indigenous people and creating in people s minds the sense of ownership of the project could be achieved only through the genuine participation of the same people through out the process Resettlement and rehabilitation programs to oe successful need to be properly planned and efficiently implemented. For this to happen it requires adequate organizational capacity of not only the project and the organization behind but also of all stakeholders, especially Woreda and Zone relevant sectoral offices that would assume the lions share of the responsibility of the task. Equally important, may be even more so, is the direct or indirect participation of affected people in decision-making, implementation, operation, and evaluation of the resettlement program from the perspectives of Doth settlers and host populations. Development plans for the settlement areas, detailed engineering plans and layouts; agncultural development packages, nonagncultural employment packages, monitoring arrangements, and environmental protection mechanisms should be thought of well ahead of time and should be in place at the right time. Individuals and communities affected by the project have to be compensated for and implementing the resettlement and rehabilitation as well as compensation programs, a detailed investigation should be conducted; inventory of resources of each household, and degree of damage to be entailed by the project should be identified and recorded at the latter stage of the settlement planning. Information on the average local estimate of costs for big, medium and small houses both grass thatched and corrugated iron-roofed categories of houses, fruit and Water Works Design & Supervision Enterprise In SuodatlM wttk latarnatinatal CaanJtaau and Taeknocnt* Prt Ltd.Arjo Dedessi Irrigation Project other perennial trees, etc, should also be obtained and documented so that it would be possible to cleany know the compensation rates for each category of property Compensation and rehabilitation is not and should not be planned at individual household ievel alone The community should also be compensated for losses of communal properties like social service facilities (schools, health center/post, water supply schemes, etc), cultural centers, religious institutions (if any), and grazing land. It should also be noted that providing social service facilities does not necessarily and exclusively be limited to replacing losses of already existing ones But providing such facilities where there were none; and considering the status of those that exist in the host communities and expanding them so that they are capable to accommodate the settler population, should also be thought of; and appropriate study directed to identifying these shouid be conducted. Althougn basic information on most of the issues relevant to settlement and rehabilitation planning has been collected, understandably, accomplishing these prerequisites was not possible in the one-weex preliminary field assessment For one thing the taking of inventory of the individual amenities of potential resettles was not possible both due to the shortage of the field work and for the fact that a definite decision of the estimated command and reservoir area was not yet reached by then. Secondly the location of potential host communities was not yet identified and the accommodation capacity of each not known. The latter has also to do with the fact that the woreda officials were not aware of the magnitude of the task and were not sure whether there was land in their respective domains available uninhabited land that could meet the requirement More importantly, most of the community members with who the appraisal of the said plan and the inventory had to be done, had no adequate knowledge of the project by then. However, it is assumed that this has already been accomplished by now An independent office, which will have the mandate to mediate between the project and the local people, must be established for the success and smooth operation of the plannea development. The independent office to be established may have higher decision-making body may be a board, which will have members from relevant government offices, representatives of the community and the project-implementing agency. Water Works Design & Supervision Enterprise la Association with Intarnntinental Consultants aid Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Settlement Planning May 2007 The rural deveiopment office (Agriculture office) should play crucial role in organizing the farmers introducing modern agricultural production technology suitable for farmers settled (Dairy, poultry, bee Keeping, horticulture etc.) A continuous training on different aspects of agncultural development has to De given including family planning, environmental protection, and sanitation for all members of the community Follow up in the creating the community s awareness has to be seriously considered. Not to be left as it has Deen in the past. Pusning the community leaders so that they can bring the issue to the grass root level (to the vast majority of the community members, including women and children). The settlement pian nas to consider the already constructed service giving infrastructures such as the schools, health posts veterinary posts, in addition the settlement should consider the existing religious institutions. The rural development office (the woreaa agriculture office) together the cooperative promotion office at the Zone nas to start preparing the ground for the establishment of the cooperatives in the planned development area if it is decided to implement the proposed development project. Registration of households in each Kebele association has to De done as early as possible Otherwise, if late, may create problem by attracting people from Kebeles outside the Kebeles currently considered. Based on the results of the assessment presented in the report, it is recommended that • a second longer fieldwork De arranged to carry out the indicated investigation and detailed inventory of the properties of potential dispiacees and their resources, as well as identifying host communities and their potential, so that it would be possible to further improve the suggested resettlement ano rehabilitation plan and implement it in a more viable manner • An independent office which will have the mandate to mediate between the project and the local people must be established for the success and smooth operation of the planned development. The independent office to be established may have higher decision-making body, may De a board, which will have members from relevant government offices, representatives of the community and the project implementation agency • The rural development office (Agriculture office) snould play crucial role in organizing the farmers, introducing modem agricultural production technology suitable for farmers to be settled (Dairy, poultry, bee keeping, horticulture, fishing, etc.) Water Works Design & Supervision Enterprise In Anodatlon wttk luumdaantnl Conitutn ud Tnehnoents Pvt Ltd. 51Arjo Dedessa Irrigation Project Settlement Planning May 2007 • A continuous training on different aspects of agricultural as well as other development activities has to be given including family planning, environmental protection, and sanitation for all members of the community, etc • Follow up in terms of ensuring the enhancement of the community's awareness has to be seriously considered, and should not De undermined as it has Deen in the past. • It is important to make use of the informal community leaders to bring the issue to the grass root level (to the vast majority of the community memDers, including women and children) • The settlement plan has to consider the further capacitating of already constructed service giving infrastructures such as scnools, health Dosts, and veterinary posts, while providing new ones in the new settlement areas • The resettlement program should consider the existing religious institutions • The rural development office (the woreda agnculture office; together with the cooperative promotion office at the Zone has to start preparing the ground for the establishment of cooperatives in the planned development area to efficiently implement the proposed development project. • Registration of households in each Keoele association has to De done as early as possible Otherwise, if late, may create problem by attracting people from Kebeies outside of the Kebeles currently considered • Active and genuine participation of the Communities of the project impact zones In all activities of the resettlement program should be ensured; • Ensure the full participation of women in the resettlement program, as well as implementation of other measures that would help mitigate gender -specific problems, listed in section 7.3 above; • The various stakeholders especially the Administrations of the five project woredas and the Project, should exert all possible energy and time for the successful implementation of the resettlement and rehabilitation program by putting into action their responsibilities listed in section 8.1 and 8.2, respectively; Water Works Design & Supervision Enterprise 52 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.ARJO DEDESSA-COMMAND area Fig 5.2 SELECTED RESETTLEMENT SITES Chancho S S Kolati S.S Site "C" Legend A/ A/ A/ A/ Dam Site Main River River Existing All-weather Roads Proposed New Road Resettlement Sites Reservoirs .Area Command .Area Guche S.S 11 Ketketo Hot Spring Kolosire S.S To Bedele ari To Bedele 4 KilometersAnnexure - 24 PHYSICAL INFRASTRUCTUREArjo Dedessa Irrigation Project Physical Infrastructure May 2007 Table of Content ACRONYMS 1. INTRODUCTION 1.1 General 1 2 objectives- 1.3 Study methodology"" 1.3.1 Literature ana Map Review 1.3.2 Interviews............................................................................................................................................................... 2 2 2 3 1.3 3 Consultative Meetings 3 3 1.3.5 Data Collection 3 1.3 2 Direct Observation................................................................................................................................................. 2 EXISTING SITUATION.................................... ............................. -............ ..................... ............................................ " 2.l Road and Transport 2.2 Water Supply and Sanitation- 2.3 Energy Supply--..................................................................................................................................................................... 2.4 Communication.................................................................. -..................................................................................................... 2.5 Housing Units............................................................................................................................................... - 2.6 Schools................................................................................................................................................................. - 3. D2.I7 SPHLeaAlCthEMFaEcNiliTtieosf people 4. RESETTLEMENT OF THE DISPLACED PEOPLE----------------------------------------------------------- --------------------------- 5 DEVELOPMENT OF INFRASTRUCTURE--------------------------------------------------------------------- -------------- ------------ 11 5 1 access Roads-....................................................................................................................................................................... II 5.2 Water Supply and Sanitation..11 5.2.1 Affected Population and Projection11 5.2.2 Water Demand Estimates for Affected Population...........................................................................................................12 5.2.3 Sanitation14 5.2.4 Livestock Water-.................................................................................................................................................................. 14 5.2 5 Housing Units for Resettled Population............................................................................................................... /J 5.2.6 Energy for Resettlement Sites/ J 5.2.7 Education—..........................................................................................................................................................................jy 5.2.8 Health 6 ESTIMATED COSTS FOR INFRASTRUCTURE....................................................................................................................... I7 6.1 access Roads 6.2 Water Supply and Sanitation.................................................................................................................................. 6.3 Energy Supply........................................................................................................................................... ZZZZZZZ 6 4 Hosing Units.......................................................................................................................................................... ” " 6.5 Schools 6.6 Health Facilities ’ ’ 6 7 Project Staff accommodation 6 8 summary of Costs in Birr...................................................................................................................................................... 7 CONCLUSION AND RECOMMENDATION„.................................................................... ............................. REFERENCES........................................—.................................................................................................... annex— ------------- ---- — -------------------------------------------------------- Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure May 2007 List of Tables Table 5 l Projected population for each Resettlement Site Growth Rate 2.3%. Table 5 2 Projected Water Demand Estimates for one Resettlement site. Table 6 I Costs of Water supply Schemes and Sanitary Facilities Table 6 2 Estimates costof building required for project shaft Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo-Dedessa Irrigation Project Physical Infrastructure Acronyms ADD Average Daily Demand May 2007 BH CFT CT Bore Hole Community Facilitation Team Care Takers DW Deep Well DWD Domestic Water Demand HDW Hand Dug Well HDW Hanos Dug Well HH Household LU LWD m 3/c/d Livestock Units Livestock Water Demand Cubic Meter Per Capital Per Day MOD Maximum Daily Demand PA SF Peasant Association Sanitation Facilities SPM Strategic Plan And Management SW Shallow Well SWL TD TSP VIP Static Water Level Total Depth Technical Service Providers Ventilated Improved Latnne WaSH Water Sanitation And Hygiene WC Water Committee Water Works Design & Supervision Enterprise li Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure 1. INTRODUCTION 1.1 General May 2007 The Deaessa River is the largest tributary of the Blue Nile (Abay). It contributes about 25% of the totai annual flow of Abay at the Ethio-Sudan border The three major rivers that flow into Dedessa River are Angar and Wama Rivers from the east, and Dabana River from the west The Deaessa River has a watershed area of about 34,000 km2. The Arjo-Dedessa Project has been identified as a multi-purpose project having potential for power and irrigation in the study carried out by US Bureau of Reclamation in 1958 — 1964. The project area is located on both sides of relatively flat, bottomland adjacent to the river and a smaller pan of the adjoining higher and hilly lands The lower reaches of the command area are situated along the Deaessa River near Ago Town The topography of the area is characterized by large expanses of gently sloping land The gently sloping hills become progressively steeper on both sides of Dedessa River. The elevation of the project area averages about El 1350 to 1330 masl; and the annual rainfall averages 1452mm and is concentrated mostly from June to September The Arjo - Deaessa irrigation Porject consists of Dedessa Dam and Reservoir, primary and secondary canals, drainage cnanneis in the command area The grass command area of the Arjo - Dedessa Project is about 17,825 ha, and the cultivable command area is 13,665 ha. The project is located in East Woiega, ano lllubabor Zones and in Jima Special Zone of Oromiya Region The command area on the nght bank of the Dedessa River lies in Jima-Arjo Woreda of East Woiega Zone and in Limu-Seka Woreda in Jima Zone. The command area on the left bank lies in Bedele, Dabo and Gechi Woredas of lllubabor Zone. It is required to identify and finalise several sites such as sites for settlements, dams and reservoir agro-industries, markets, schools, health facilities, community centres. It is also require to provide access to these sites, both external and internal road networks, provision of energy, water supply, settlement shelters, markets, schools, physical health facilities, facilities for transport and communications, etc required for development of Arjo-Dedessa Irrigation Project for effective and sustainable development of the project area. Physical infrastructure 1 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure May 2007 planning will accommodate, therefore, the physical infrastructure requirements for different sectors in the Arjo-Dedessa Project 1.2 Objectives The objectives of the Rural Infrastructure Study are as follows. • To assess the existing situation of rural infrastructure for the Dedessa Catchment and command area • To assess the need and recommend solutions with costs the access road required in the catchment, command area and resettlement sites. • To study the social infrastructure requirements (scnools, health facilities, markets, etc) for resettlers and project personnel • To study the water supply and sanitation facility requirements for affected people and project personnel and water for livestocks. • To determine the housing needs at the resettlement sites for affected households. • To examine the requirement for residential and non-resiaential accommodations for officials ano staff required for operation and maintenance of the project • To study energy and communication requirements for resettlements sites • To estimate costs for the entire required infrastructure. 1.3 Study Methodology To meet the above stated objectives, the following methodology has been adopted; 1.3.1 Literature and Map Review At the beginning of the study relevant reports, documents, data ano information concerning the catchment and the command area have been collected, reviewed and analysed. in addition to the above documents, related policies, strategies, guidelines regarding roads, water supply and sanitation, environment, schools, health facilities, settlements, housing, tourism, etc have been also assessed and reviewed. Various maps on different scales were also collected and studied 2 Witer Works Design & Supervision Enterprise Id Association with Intercontinental Consultants ud Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure 1.3.2 interviews information has been obtained from interviews of resource persons in the MoWR, Orom y Water Bureau, Limu-Seka, Beaele ana Gechi Woredas etc on access and transport, wat supply and sanitation, settlements, housing patterns, population ethnicity, cultures religions, life style, etc 1.3.3 Consultative Meetings May 2007 Consultation with local people, in particular project affected people were carried out. Local administrative officials, local knowledgeable people, PA leaders, etc were contacted and consulted 1.3.4 Direct Observation Site visits nave oeen carried out Direct observations on access difficulties, water supply and sanitation problems, schools, sanitary facilities, dwelling patterns, reactions and attitudes of affected people on the project, etc have Deen made. 1.3.5 Data Collection Dunng the field work, data on construction materials, labour availability, local costs, site information, awareness about the irrigation project by local people, reaction of elders, local conflicts on water and grazing, etc have been collected and analysed. 3 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.2 EXISTING SITUATION 2.1 Road and Transport Arjo-Dedessa Irrigation Project can be reached from three directions through all weather road- Addis Ababa Jima-Bedele Road with a total length of 483 km, Addis Ababa-Ambo-Nekemt-Arjo Road having a length of 460 km; and Mettu-Bedeie Road 117 km. The Deaessa River is about 18 km from Arjo Town and aDout 36 km from Bedeie Town The Project area extends upstream from the Dedessa River Bridge for about 32 km on both sides of the river The middle part of the command area, on the nght bank, can be accessed from Argo-Bedele Road at a distance of about 10 km Bedessa-Meta settlement area is located at a distance 27 km on the left side of Arjo-Bedeie Road. The left bank command area is located at about 39 km from Gechi-Chara-Cheti settlement area The upper end of the command area can be reached through Jima-Limu Tenet-Limu Seka-Atnago all weather road. There is an all-weather road 26 km long from Atnago to Koma; and an earth road about 24 km long from Koma to Maribo near the proposed dam site. The Arjo-Dedessa Dam site and reservoir area are located in Jima Zone. The dam site is located 1.5 km u/s of Wama-Dedessa Confluence There is an all-weather road 26 km long Beoelle to Kolo Sire Settlement Clearing for a trail of bout 27 km from Kolo-Sire to the proposed dam site has been recently made. The all weather road from Jima passes through Mena, Limu-Kossa. Limu-Genet and Limu- Seka Woredas. For the most part the Jlma-Bilida-Babu-Ambuye-LImu Genet-Limu Seka and Atnago all weather road divides the Dedessa and Gibie Basins. Atnago is the Capital city of Llmu-Seka Woreda; and one has to turn towards west to reach the dam site through Koma and Maribo areas. The Llmu-Seka Woreda, where part of the reservoir area falls, has a very limited all weather roads with a total length of 72 km. There are several dry weather roads. The roads in Llmu-Seka Woreda area are as follows : 4 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physicalinfrastructure All Weather Roads: May 2007 1 Atnago-Aiga 2. Atnago-Koma Total Dry Weather Roads; 46km 26km 72km 1 Atnago-Cheri Alga 42km 2 Atnago-DeneDa 56km 3 Alga-Benja 36km 4 Koma-Maribo 24km 5 Santo-Alelwork 18km 6 Kiltu-Cheba 20km 7 Atnago-Omkaka 6km 8 Benja-Abayi 20km 9 Benja-Bilo Goshe 34km 10. Koma-Cheri Alga 24km Total The woreda rural roads office has a plan to cany out at the level of all weather roads the construction of the following roads 1 Atnago-Alga-Benja road 70km 2. Seka-Atnago 17km 3 Atnago-Deneba 56km Total 143km The zonal rural road office at Mere undenakes eonstnuetkrn of roads leading Io settlement sites The road from Bedefe to current settlement. site at Koto Sire 29km has been constructed by the zonal mad office The woreda mad office is understaffed and under-equipped The wored' mw activities are very much limited. Using labour force the following dry weather roads h»» been constructed. ave Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pn. Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure 1 Ras Yura-Dereni Teba 6km 2. Odo-Odo Odo 3 Kekecha-Lelistu 4 DaDo-Tjiema 5 Bosoxe-Bosoke Dakul 7km 6 Hana Leme-Alfe Gobicho 6km May 2007 4.5km 5km 6.5km The following road tracks provide limitea access in Dedessa catchment during the dry season using 4-wheel drive 1. Bedeie-Dedessa River 31km (Downstream of Dam Site) 2. Aijo-lhud Gebeya-Gombo 19km 3. Fanfa-Bisili 13km 4. DemDi-Sineso 12km 5 Arb Gebeya-Nunu-Woma Adere 42km The network of roads nave been shown in Fig2.1 2.2 Water Supply and Sanitation The major towns in the Dedessa River Basin near the project area are Bedele, Arjo, Gechi, Dembi, Toba, Limu Genet and Atnago. These towns have water supply coverage ranging from 25% to 100%. The sources of water supply for towns and rural areas are springs, hand-dug wells, shallow wells and rivers. Most of the rural areas use traditional sources of water like rivers and hand-dug wells. Shallow wells provide water supply for most of settlement sites. The water supply office of the Lmo-Sexa woreda has reported that there are 372 HDW 26 developed spnngs. and a tow shallow wetls. For new settlers at different settlement site. „ developed spnng, and 22 Shadow wells have teen provefed The depths of shallow ■--- range from 42 meters to 74 meters. The woreda water suppty coverage has been reported te be about 13% which is very low. “ 6 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.ROAD NETWORK MAP UNDER ARJO-DEDESSA PROJECT 180000 200 00C 20000 200000 Proiect Site i-'____ _V j ot spring pl 1 I1 LJ 1--------- DemtW %Jotoa An legend /\/Dam site Existing All Weather Road /\/ Existing Dry Weather Road Proposed roads /\/Rivers /\/ Catchment boundary ® Villages ® Towns S Kote Kato Hot Spring TEXT I Settlement sites 1§o-1r s* ------- -7T-------------------------------- FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA woxct ARJO-DEDESSA IRRIGATION PR0EC1 <ilint MINISTRY OF WATER RESOURCES consultant WAIT ft WORKS DEGIG N A'- 0 >N MSOCIAJE WITH th 20000 noooo 00000 MAP TITLE TA F ROADNETWORK M# UMOER ARJO DEDESSA PROJECT it rsouxjo WlJWT, 2007 No.Arjo Dedessa Irrigation Project Physical Infrastructure 2.3 Energy Supply May 2007 The major towns along the road from Jima to Bedele nave electrical energy supply The rural areas and the small towns in the project area use firewood, animal dung, agriresidue, Kerosene for lighting and cooking 2.4 Communication The major towns in the project area have better communication services such as telephone and postal services compared to energy supply The rural areas do not have telephone as well as postal services 2.5 Housing Units Except for the towns, most of rurai nouses in the project area have traditional tukuls with mud walls, ihatcneo roof and earth floors. In some tukuls animals are also kept in the house during the night. Most of the tukuls do not have windows and adequate ventilation is lacking The house units in the rural areas are scattered and this situation has maae it difficult to provide adequate water supply, schools, health facilities, etc for the rurai people 2.6 Schools The major towns in the project area have elementary scnools ana junior high schools. The rural areas have limited number of elementary schools The schools that are available provide generally basic education at 1-4 grade levels. 2.7 Health Facilities The major towns nave health centers, health posts, clinics, etc. But the rural areas lack even health posts in adequate number and they greatly suffer from water bom and water related diseases. Sanitation facilities in the major towns are generally traditional pit latrines; and they are not properly utilized. Environmental sanitation is very poor and many use “open-field' for defecation. In rural areas almost all people use “open-field" for defecation. There is considerable lack of hygiene education and sanitary promotion. 7 Water Works Design & Supervision Enterprise la JLisodatlon with Intareontinental Consultants and Teehnocnts Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure 3. DISPLACEMENT OF PEOPLE May 2007 Due to the Deaessa Irrigation Project, people in five woredas - Bedele, Gechi, Borecha. Jima- Arjo and Limu-seka - are partly or fully affected. The reservoir area affects partly the people in eleven kebeies in Borecna woreda and four kebeies in Limu-Seka woreda; while the command area affects fully the people in eignt kebeies in Bedele woreda and three kebeies in Jima-Arjo woreda. but partly the four kebeies in Gechi woreds. Infrastructure facilities, religious institutions and cultural heritages that currently exist in these kebeies will also be affected. The people affected by the project will also lose individual as well as communal properties The project is expected to compensate the people fully or partially for lost properties The Deaessa Irrigation Project is envisaged to displace 1275 households (HHs; in the reservoir area and 2100 HHs in command area Taking the household size as 5.1 the population to be displaced amount to 6503 in the reservoir area ana 10.710 in the command area. The population affected in the reservoir area will oe fully displaced and that in command area will be partially displaced Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Physical Infrastructure 4. RESETTLEMENT OF THE DISPLACED PEOPLE May 2007 The affected HHs in the reservoir area (1275 HHs) will be fully resettled The affected HHs in the command area 2100 HHs will be resettled partially. In order to arrive at reasonable number of HHs to be resettled from the command area, it has been assumed that 20% of the house nolds of the command area will be required to be resettled, Thus, the total number of households to De resettled will be as given beiow. • HHs for full Resettlement from reservoir area = 1275 HHs • HHs for partial resettlement (20% of 2100) = 420 HHs • Total HHs to be resettled = 1695 HHs It is generally considered fair to take the total HHs to De resettled is as 1695. During the preparation of the detailed "Resettlement Action Plan", this number should be finalised The resettlement of about 1700 HHs has been taken in preparing the current resettlement plan. It five resettlement sites have been selected each site having 340 HHs to be resettled These sites nave been selected on the Dasis of the following criteria: • The site should be closer to the commana area, where farmers are expected is adapted imgation farming • The site should be located on non-agricultural land • The site should be away from marshy area • The site should be closer to existing infrastructural facilities, the market, health facilities, telecommunication facilities. The map available in Fig5.2 shows the location of five sites selected for resettlements. The affected people, should not only be resettled but they should also be economically rehabilitated. They should get not less than what they have before they are dislocated. They should also have preference for employment. 9 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pn. Ltd.ARJO DEDESSA-CQmmaND AREA Fig 5.2 SELECTED RESETTLEMENT SITES Legend Kolati S.S /V Dam Site /V Main River River /V Existing All-weather Roads A/ Proposed New Road Resettlement Sites Ketketo Hot Spring 4 Kilometers siiiiimiii■ ■ ■ I I III■I ■ ■ ■ ■ ■ ■ ■ I I I I I I Iiiuiimiiiiiinii!i■ I ■■ I ■ I ■■ ■ I■ ■ ■ ■ ■ ■ ■ I I I I I■ I I I I I I I■ ■ ■ ■ ■ ■ ■ I I I I I I I II" W,C JI I III I I I I I I I I I I [ 850 JOO Q 12001] 1200 1200 850 900 .1200 1200 850 900 1 JI BR5 BR6 BR11 4000 BR12 4000 I50 ‘ ----II-I------- fc=----------- 1----------1 co T 7T H » G28CIS | I III —rn"“ f 2 SO o rz. p i D £0 I J > POINTED H C B WALL 1 Hiilillh I ill WI ELEVATION 1 PROJECT STAFF MOUSING NOUSS TYF« T>- Cf 5OfC«’ ChCCICC *'fl SECTION C-C 50 Cement screed 100 Miu concrete T— 200 Hard axe T- Compaaoa soil I ’CMNTED <CB WAL_ REV A revd C“<0 DATE DESCRIPTION feaerai Democrat* Repuouc of Etn>ops Mnsrv of Wutw ARJO DIDESSA 0AM ANO IRRIGATION PROJECT /WATERWORKS DESIGN AND SUPERVISION EN’EPPR'SE g> .•.TERCONTNCI-*. CONSUlTAHTJ AND TECMNQC«>*TS KC* PVT.’.' TYPE T>" SERVICE a MOUSE HARTER CAAA* ■* VS DATE jAHCX’ OEStAEDS' SCALE • T, O4CRE0 •' RtVSCN *• APRACNTO By DAAIMMa'UB '• ♦»Annexure - 25 FINANCIAL AND ECONOMIC ANALYSISArjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 TABLE OF CONTENTS TABLE OF CONTENTS LIST OF Table LIST OF ANNEX 1. INTRODUCTION 1. INTRODUCTION 2. METHODOLOGY i 2 24 Financial Analysis-4 2 11 Prices ' 2 12 Measures of Financial Viability 2.13 Project Life Period.................................................................................................................................................................... 2.2. Economic analysis...........................................................................................-.......................................................................... 6 2 2.1 Economic prices.................................................................................................................................................................... 6 2.3. 2 IS 4 D ensiitscivount ity aing F nalyacsistor7 ......................................................................................................................................... 3. RESULTS 3.1 Existing Situation............................... ..................... 3.1 I Existing Cropping pattern and Yield level 3.1 2 Returns from existing cropping system 3.2 Project Situation_.................................................. 3 2.1 Land allocation and cropping intensity 3.2.2 Development of irrigatea Agriculture 3.2.3. input and output prices 3.2 4 Crop Budget 3.2 5 Farm Budget.........................-......................... 3 2 6 Returns from the Proposed Crops 3.3. Result of the financial Analysis (base condition) 4. CONCLUSIONS. 3.4. Sensitivity analysis 3.5. Result of the Economic analysis......................— 3.6. Sensitivity analysis (Economic) ...8 8 ...9 .10 .10 .11 .12 13 .13 13 ..14 ..16 ..20 ..22 Water Works Design & Supervision Enterprise In Issoclite with Intercontinental Consultants and Technocrats Pvt LtdArjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 LIST OF TABLE Table 3 1 Table 3.2 Table 3.3 Table 3 4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 3.9 Table 3.10 Table 311 Table 3 12 Existing cropping pattern of the project area and annual expansion........................................... Net returns per hectare of _and under the exiting cropping pattern ......................................... Annual Net Return from Exiting cropping pattern (without project)........................................... LAND ALLOCATION AND CROPPING INTENSITY (WITH PROJECT) Yield Build-jp over years (With project) By-products Farm gate Prices of inputs over price years of per (With crops hectare and Net Returns project) seeds (financial) annual Net Returns from proposed cropping pattern (financial)................................................. Financial Analysis (Base case)............................................................................................................. Summary of Base Financial analysis and sensitivity tests............................................................... Table 3 13 Sensitivity test, INCREASE COST BY 5% ANO NO CHANGE ON BENEFIT STEAMS (FINANCIAL) Table 3.14 Sensitivity test, Table 3.15 Sensitivity'.—------- -------------- I tai, DECLINE IN BENEFITS BY 5% AND NO CHANGE ON COST STEAMS (FINANCIAL) TEST, DECLINE IN BENEFITS BY 5% AND INCREASE IN COST BY 5%.................... ““ —. *»... ./cm Table 3 16 National Parameters to be used for Economic Analysis................................................. Table 317 Result of the Economic analysis (Base condition)............................................................ Table 3.18 Summary of Base economic analysis and sensitivity tests Table 3.19 Sensitivity test, increase cost by 5% and no Change on benefit steams.... Table 3.20 Sensitivity test decline in benefits by 5% and no change on cost steams Table 3.21 Sensitivity test, decline in benefits by 5% and increase in cost by 5%............................ LIST OF ANNEX ,...8 ....9 ...9 .10 ..11 ..II ..12 .12 .14 ..14 ..15 .16 ..17 ...18 ...19 ...20 ...21 ...22 ...23 ...24 ...25 Annex 1 1 Annex 1 2 Annex 1.3 ANNEX 1.4 ANNEX 1 5 ANNEX - 6 ANNEX 1 7 ANNEX 1.8 ANNEX 1.9 Annex 1.1 Annex 2.1 Annex 2.2 Annex 2.3 Annex 2.4 Annex 2 5 Annex 2 6 ANNEX 2.7 ANNEX 2.8 Annex 2.9 Annex 2.1 ANNEX 31 ANNEX 3.2 ANNEX 4 1 CROP BUDGET PER HECTARE FOR Maize (WITH PROJECT) Crop Budget per hectare for Rice (with project) Crop Budget per hectare for Wheat (with project)................................................................ S Budget per hectare for Ground nut (with project) CROP BUDGET PER HECTARE FOR SOYA BEAN (WITH PROJECT)........................................................... Crop Budget per hectare for Potato (with project)............................................................... Crop Budget per hectare for Onion (with project) CROP BUDGET PER HECTARE FOR SESAME (WITH PROJECT) CROP BUDGET PER HECTARE FOR COFFEE (WITH PROJECT) CROP BUDGET PER HECTARE FOR ALFALFA (WITH PROJECT) ............................................................... CROP BUDGET PER HECTARE FOR MAIZE (WITH PROJECT/ ECONOMIC) CROP BUDGET PER HECTARE FOR RlCE (WITH PROJECT/ECONOMIC) CROP BUDGET PER HECTARE FOR WHEAT (WITH PROJECT/ECONOMIC) CROP BUDGET PER HECTARE FOR GROUND NUT (WITH PROJECT/ECONOMIC) CROP BUDGET PER HECTARE FOR SOYA BEAN (WITH PROJECT/ECONOMIC) crop Budget per hectare for Potato (with project/economic) crop Budget per hectare for Onion (with project/economic) CROP Budget per hectare FOR SESAME(W1TH project/economic) prop Budget per hectare for Coffee (with project/economic) crop Budget per hectare for Soya bean (with project/economic) farm budget (Net Returns) for typical smallholder farmer with project to . Farm BUDGET (NET RETURNS) FOR TYPICAL SMALLHOLDER FARMER WITHOUT PROJECT YEAR WISE ESTIMATION OF COST EXPENDITURE .27 .28 .29 .30 .31 .32 .33 .34 .35 .36 .37 ..38 .39 .40 .41 .42 ..43 .44 ..45 .46 ...47 ...49 ...50 2 ------ Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Aijo Dedessa Irrigation Project Financial and Economic Analysis May2007^^ 1. Introduction Arjo-Dedessa irrigation Project has identified numerous programmes for implementation over varying penods of planning honzon However, the programmes predominantly related to irngate agriculture have been considered for the Economic and Financial Analysis It is because, irrigation projects generally serve the agnculturai sector They not only reduce the risk associated with weather uncertainty Dut aiso exhibit a rapid visible and dramatic impact on agricultural productivity It is evident that the yields of cereal crops produced with irrigation in 1995 exceeded rainfed agriculture yields by 115 percent in developing countries collectively and by 150 percent in sub-Sanaran Africa. North Africa and west Asia (FAO). The new agricultural technology requires optimal soil moisture as a pre-requisite to effective utilization of other productivity enhancing inputs such as improved seeds, fertilizers, chemicals and improved farm equipments and machinery Moreover imgation schemes allow multiple cropping and thereby increase the levei of cropping intensity, which is essential to meet the challenge of acute land scarcity Besides irrigation schemes create employment opportunity for unemployed and under employed labour force and landless farmers A FAO study indicates that "if 10 ha land is irrigated, generation of employment opportunities increase from 8 to 24 persons." However, supply of water for irrigation is under pressure due to increasing demands of other water-using sectors Increases in household and industnal demand for water are expected to create scarcity of water for irrigation. Nevertheless, governments in developing countries as well as international funding agencies including donors have justified allocation of water to agriculture on grounds of food security and economic development in the developing world. of the magnitude and extent of abject poverty in the country, the government of Federal ' n '/'eW tic Republic of Ethiopia (FDRE) has committed towards poverty reduction by making it the Dem<orbit of development policy which aims at achieving this by linking water resources t process with growth process that is fast and broad-based. The key elements of the ' mments development strategy include among others, the Agricultural Development Led 9 ° r tion (ADLI). To this end, increasing productivity of land and water resources is the o°nly realistic onptnioon to raise the living standards of the common man and to ensure food security in w country througn Green Revolution. de /e Water Works Design & Supervision Enterprise 3Arjo Dedesu Irrigation Project Financial and Economic Analysis 2. Methodology 2.1. Financial Analysis May 2007 AU r The financial analysis is intended to assess the financial impacts on project participants In case of this project, therefore this analysis attempts to assess the financial effects on the farm families as well as on the public sector agency which will be involved in investing in, and operating the project It shows the rate of return to the project which indicates the degree of financial viability of the project The analysis aiso indicates the net returns, which will accrue to the smallholder farmers This analysis involves the companson of the financial situation "with project" with that of the "without project" In making this analysis, all the relevant cost and Denefit items with and without the project have been be identified and valued with appropnate pnces and incremental net returns with the project have been computed Direct benefits from increased production, in case of a production oriented project like this one, is the most important tangible benefit In financial analysis, only the tangible benefits have been quantified and analyzed in an imgation project, gross ano net returns with and without the project will be achieved out of crop production. Therefore, in order to estimate the gross, net and incremental net returns, crop budgets with and without the project have been prepared 2.1.1 Prices cost and benefit items have be assumed in constant terms. This means prices will not vary . wears The capital cost of the project used in the analysis are estimated by the with inflation over yeaia r design engineers amf tuhre scheduled rates for the year 2006, and pnces of inputs and outputs are the current market pnces at the farm gate tor the ,ear mentioned 2.1.2 Measures of Financial Viability I temai rate of return (IRR). net present value (NPV), and benefit cost ratio (BCR) have been used t0 determine the financial viability of the project Since costs a-rroe i™- incuu,,rcred at different levels and different quantities of benefits accrue in different years over tmhee life of a project, present values of both costs and benefits have been determined in 4 Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvt Ltd.Ar jo Deaessa Irrigation Project Financial and Economic Analysis May 2007 order to compare them The FIRR and FNPV have been determined by discounting the incremental net benefit (return) stream or incremental cash flow 2.1.3. Project Life Period The life of the major components of the project like dam, canal etc. is considered as 100 years. However the economic life of such capital assets is shorter The effect of sucn capital assets for whicn investment is mace at the initial stage on the rate of return based on discounted cash flow after 40 years is so insignificant that it makes little difference in the degree of viability of a project Therefore, a period of 40 years was considered appropriate for the project analysis. 2.1.4. Discounting Factor For this study the opportunity cost of capital of 10% was used as cut-off rate as recommended by DPSA (1990) and FDRE government recent policy. As indicated earlier, Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) are used in determining the financial viability of development projects. The three commonly used indicators of project viability were computed using the following formulae a. Net Present Value BC Where Bt = benefit in year t; Ct = cost in year t; t = 12 3 n = number of years, = interest (discount) rate b. Internal Rate of Return 1R Or IRR Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 5Arjo Dedessa Irrigation Project Financial and Economic Analysis Where. LDR = lower discount rate at which its NPV is positive; UDR = upper discount rate at wnich its NPV is negative; NPV1 = Net Present Value at the lower discount rate; and NPV2 = Net Present Value at the upper discount rate May 2007 The formal selection cntenon for the internal rate of return measure of project worth is to accept all independent projects having an internal rate of return equal to or greater than the opportunity cost of capital. The decision cntenon in the Ethiopian context is to accept a project if it's IRR is above the opportunity cost of capital i.e., 10%. c. Benefit Cost Ratio This indicator is equivalent to the ratio of the present value of benefits to the present value of costs If there is no iimitason of funds, the decision critenon is to accept any project hav.no BCR greater than 1. In this study the three measures of project viability were used to determine the viability of the project. 2.2. Economic Analysis The purpose of economic anaiysis of a project is to measure the reai contribution which h. project will make to the nadonai income in order to decide whether ,t is worthwhile to In project. As in the case of financial analysis, the economic analysis involves the the economic outcome of the "with project" with that of the "without project" TC°mpanson of the between the financial and economic analysis are prices used in the analysis 2.2.1. Economic prices Prices used in the economic analysis is real prices reflecting the true opportunity cost whereas market prices that are used in the financial analy Water Works Design & Supervision Enterprise in Association with Intercontinental Consultants and Technocrats Pvt Ltd. difference * a*Ue or the 6Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 such opportunity cost value because there are various imperfections in the market Economic prices are used to adjust the market pnce distortion in such a way that they reflect the real value of the investment, inputs and outputs that assure the rational allocation of resources at national level In order to determine the appropriate prices, conversion factors to convert financial values into economic values were used The National Economic parameters prepared by DPSA following well known Little and Mimees methods of project analysis, has been applied to adjust the market distortions in pnce for the economic analysis. 2.3. Sensitivity Analysis An assessment was mace of the extent to which the proposed investment implies risk for the country and for the project. Risks should have been identified and their possible impacts on the financial and economic viability of the investment and on its sustainability have been examined Three possible scenanos have been considered nere for sensitivity test: These are, A 5% increase in the cost stream and no change in the benefit stream A 5% decline in benefit stream ana no change in cost steam A 5% decline in benefits ano a 5% increase in cost Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 7Arjo Dedessi Irrigation Project Financial and Economic Analysis 3. Results 3.1 Existing Situation 3.1.1 Existing Cropping pattern and Yield level May 2007 The project area is located in Angar - Dedessa sub - basins Dedessa along with the Angar sub - basin is the left bank tributary of Abbay River These two sub-basins have catchments areas of 19630 sq km and 7901 sq km, respectively and are spread over zones of East and West Weiega, lllubabor and Jimma of Oromia Region, ano some parts of Kamashe zone under region 6 The existing cropping pattern includes both the cropping pattern of the command area and the area to be inundated oy the reservoir It is derived from Woreda level data that 17 65% of the total area is currently covered with crops The area to be affected by Arjo-Dedessa irrigation project includes the gross command area of 17,825 hectare and 8,500 hectare of land that will be inundated by the reservoir. This Drings the total area to be affected by the project area to 26,325 ha Therefore, the opportunity cost of 17 65% of the area to be affected by the project is calculated to be 4,646 hectare and is considered for the estimation of forgone benefits due to the project Table 3 1 shows the proportion of land allocated to major crops currently growing in the project area on 4,646 hectares In addition, annual expansion of cultivated land has been assumed to be 1% and estimated for foreseeable future. Table 3.1: Existing cropping pattern of the project area and annual expansion Crop Perce nt Area (ha) Y1 yz >3 y4 y5 y6 y7 Y8 1 Maize 21% 975.7 985.5 995.3 1005.3 1015.4 1025.5 1035.8 1046.1 2 3 Wheat 11% 511 1 516.2 521.4 526.6 1056.6 531.9 537.2 542.5 548 0 553.4 Barley 10% 464.6 469.3 474.0 478.7 483.5 488.3 493.2 498.2 503 1 ___ ^Fmqer millet Teff 1672.7 1689.4 1706.3 17234 1 36% 1740.6 1758.0 17756 1793 4 6% 278.» 281.6 284.4 287.2 1811 3 5 6 7 290.1 293.0 295.9 298.9 301 9 Filed peas 4%l 185.9 187.7 189.6 191.5 193.4 195.3 197.3 526.6 199.3 11% 511.1 516.2 521 4 531.9 201 3 Niger (noug)_ 537.2 46.9 474 542.5 1% 46.5 47.9 548 0 553 4 8 Potato 48.4 48.8 49.3 49 8 50 3 Total 100% 4646 4692.8 4739.8 4787.2 4835.0 4883.4 4932.2 . 4981.5 I5031.3 Water Works Design & Supervision Enterprise in Association with Intercontinental Consultants and Technocrats Pvt Ltd. 8Arjo Dedess* Irrigation Project Financial and Economic Analysis May 2007 3.1.2. Returns from existing cropping system The cost of cultivation ano yield levels of existing cropping system available from the agronomic report have been adapted to estimate the gross and net returns for a hectare of land The details are available in Table 3.2. Table 3.2:Net returns per hectare of land under the exiting cropping pattern S/N Crop Cost of cultivation /ha 859.00 1134.00 Yield (qt/ha) Price/qt 150 0< 260.0I Gross return /ha Net return /ha 1 Maize 2('Wheat 3Bar1ey 4Teff 5’Finger millet 6 Filed peas TiNiger(noug) 8 Potato 14 30 ’ 7.501 2145 00; 1286.00 1950 001 816 00 961 50 1062 00 928.00 933.00 890.00 2082.501 5 70 170.0C 4.00 300 01 969 00, 7 50 10 00 600 lOOOJ 300 01 — 138.00 72.00 4.00 320 01 50 00 867.00 390.00 lauic Perce nt ETB Y1 y2 __ Y __ 4 75 . y§ y7 Y8 91 <>4 , 11% 1254797 1267345 1280018 1292818 1305746 1318804 1331992 1345312 1358765 417057 421228 425440 429695 433992 438332 442715 447142 451614 Wheat in% 3485 3520 3555 3590 The annual net return from the crop patterning without project for future years is available in Table 3.3. Table 3 3. Annual Net Return from Exiting cropping pattern (without project) Cro£ Maize Barley___ T1pCflf' Finger 3626 3663 3699 3736 3774 36% 230831 233140 235471 237826 240204 242606 245032 247482 249957 6% 20072 20273 20476 20680 20887 21096 21307 21520 21735 millet Filed 4% 161136 162747 164375 166018 167679 169355 171049 172759 174487 ____ Niger 11% 199329 201322 I 203335 20536S 207423 209497 211592 213705 2158451 jnoug) Potato__ Total 1% 89094 89985 >| 90885 91794 92712 93632 ) 94575 > 95521 1 964761 100% 2375801 2399559I 242355J 244779C ) 2472265 2496991| 252196'1 25471811 2572652 9 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.I Arjo Dedessa Irrigation Project Financial and Economic Analysis 3.2 Project Situation May 2007 3.2.1 Land allocation and cropping intensity A total of 10 crops nave considered for ' with project' case. The food habit of the targeted community and productivity of each crops were considered in selecting these crops That is cereals, puises oil seeds ano vegetaDies are requirements for housenolds consumption Besides export crops such as coffee and sesame were considered from the national economic point of view Since livestock is also part of the livelihood of the people in tne command area, land is also allocated for a fodder crop Land allocation to different crops and cropping intensity have been considered for the net irrigable area of 13,665 hectare Since imgation allows two to three crops to be grown within a year, considering population growth and labor availability and effective use of the irrigation system, a cropping intensity of 173% has been adopted at full development phase Table 3 4 shows the development of cropping intensity over time with project Table 3.4: Land allocation and Cropping Intensity (With project) Total Command Area (ha) 13665 Total in each Years s/ i Crop 5 6 7 8 9 Aabove 1 Maize (%) 5°/ i 15°/ i 30°/ 0 40°/ o 50% H< a 683.2' 5 2049.7! 5 4099.! > 546f 5 6832 5 ’Rice (%) 1% 11°/ > 20% 45% . 45% Hs 136.65 1503.15 2733 6149.2! 3 6149 25 IWheat(%) 2% 10% 14% 25% . 30% Ha 273.3 1366.5 1913 1 341625 4099 5 4 Ground Nut (% 2% 5% 5% ■------------------- 6% Ha 273.3 683 25 6% 68325 819.9 819 9 5 Soya Bean(%) 2% 3% 5% 5% 273.3 409.95 10% 683.25 683.25 1366 S 6 Potato (%) 1% 2% 4% 5% Ha 136 65 273.3 546.6 683.25 683 25 7 Onion (%) 1% 2% 3% 5% coz Ha. 136.65 273.3 409.95 683.25 w /O fiR'X oc 8 Sesame (%) 1% 2% 3% 5% Ha Roz 273.3 409.95 683 25 9f Soffee (%) 10% 10% 10% 10% Ha 1366.5 1366.5 1366.5 O /o A1Q a o i w.y 1 n®/. ________ * V Zo 1366.5 10/ Mfalfa (%) 6% Ha 6% 819.9 819 9 _ ___ 1 otal (%) 25% 60% 100% Ha 152% 019.9 173% Water Works Design & Supervision Enterprise In Association with intarcontinental Consultants and Technocrats Pvt Ltd. 10Arjo Dedessa Irrigation Project Financial and Economic Analysis 3.2.2. Development of Irrigated Agriculture May 2007 The first 4 years of the project period is planned for the construction of irrigation infrastructure and land development On the 5th year only 25% of the command area will 0e covered under irrigation and by year 6 60% of the command area will be covered under irrigates By year 7 all the command area will De developed fully Year 8 and 9 area assumed to be period of intensifying the irrigated area to its full development. The annual development and yields build up for proposed crops and including by-products are shown in table 3.5 & 3 6 respectively Table 3.5: Yield Build-up over years (With project) Yield of main products (qtl/ha) S/n Crop 5 6 7 8 9 &above 1 Maize 35 37 39 41 50 2 Rice 30 33 36 40 60 3 Wheat 35 37 39 41 55 4 Ground nut 25 28 30 33 50 5 Soya bean 14 15 16 18 20 6 Potato 200 220 242 266 350 7 Onion 100 105 110 116 1701 8 Sesame 5 5 6 7 8 9 Coffee 0 0 0 10 12 10 Mfalfa 0 0 900 960 990 Table 3.6: By-products over years (With project) By-products qtl/ha S/n Crop 5 6 7 8 9 Aabove 1 Maize 70 77 85 93 100 2 Rice 55 61 67 73 100 3 Wheat 55 61 67 73 80j 4i 5 6 Ground nut 40 44 48 53 60 Soya bean 38 42 46 51 55 Potato 70 77 85 93 100 7 8 Onion 10 11 12 13 14 Sesame 35 39 42 45 47 9 10 Coffee 0 0 0 30 40 Alfalfa Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.M ■ Aijo Dedessa Irrigation Project Analysis_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ May 2007 3.2.3.Input and output prices A constant price of 2006 for inputs and outputs are used for the financial cost and benefit estimations Both the output prices and input prices are farm gate prices to reflect the income and expenses of the farm household in the project area These are available at Table 3.7 and 3 8 respectively 3.7: Farm gate price of crops and seeds S/N Crop Output Price/qt Seed Price/qt 1 Maize 150.0C l| 400 2 Wheat 260.00 400 3 Barley 170.00 170 4 Teff 300.00 300 5 Finger millet 100.00 100 6 Filed peas 300.00I 300 7 Niger (noug) 320 00 320 8 Potato 80. oo' 100 91 □inion 100.00] 30000 10 |Rice 250.001 500 11 f 11 Soya bean 360.00i 500 7 12 J Srouna nut 300.001 1000 >esame 550.001 800 13 C Coffee 18OO.OO|O.25 per seedling 14 dfalfa 8 00| 50000 Tible 3.8; Prices of inputs Input Price Unit Unit price Human Labor PD 8 Oxen labor OD 20 Fertilizer DAP J Quintals 395 ________ Chemicals Urea Quintals 330 Birr Tools________ Piece 30 Sacks Piece 3 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 12Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 3.2.4. Crop Budget Crop oudgets were prepared for all crops proposed for irrigated agriculture under with the project case baseo on the yield build up, land allocation, cropping intensity and input and output prices indicated in the relevant tables Land tax of ETB 35 and 70 per year was considered for annual crops ano coffee, respectively The crop budgets for ten types of crops for financial analysis are given in Annexes 1.1 to 1.10 and those for economic analysis in Annexes 2.1 to 2.10 3.2.5. Farm Budget Crop production under imgation involves much increased quantity of labor In view of the requirement of labor involved in imgation, it is considered that one hectare of irrigated land is more likely to De optimally utilized by a smallholder farm family. Majority of farm holding size is less than a two ha Hence one nectare model has Deen considered for farm budgeting The farm Dudget is prepared for typical small farm holding of one-hectare size considering family labor under irrigated agnculture and crop intensity of 173% at full development Allocation for individual crop for farm household follows the proposed cropping pattern for the whole area. It is also considered the consumption need of a smallholder household that is a combination of cereals, pulses, oilseeds and vegetables. Similarly farm Dudget was prepared for exiting situation to show tne forgone income of a typical farm household. The result shows that the annual net return to a small farmer household from the exiting cropping pattern from two hectares of land is estimated to be ETB 1022 while the annual net return from imgated agriculture from a hectare of land with 173% intensity and with application of improved farm input at full development is estimated to be ETB 24,327. This amount drastically changes the economic status of farm households in the project area. The details of the farm budget for both 'with' and without project' cases are given in Annex 3.1 & 3.2 respectively. 3.2.6. Returns from the Proposed Crops Even if the food habit of the targeted community is taken care of. highly responsive crops are also included in the proposed cropping pattern among which potato, coffee, soybeen and rice are the leading ones. A net return from a hectare of potato, coffee and rice at full development stage is estimated to be ETB 23,628; 19,876 and 15,540, respectively Estimate of net returns per hectare and returns from the whole command area for each crop using market prices are shown in Tables 3 g 4 3.10 respectively. I3 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Table 3.9: Nel Returns per hectare (financial) May 2007 Annual returns (ETB) / years S/n Crop 5 6 7 8 9 Aabove 1 Maize 5 635 T 6 124 6,651 7.217 8,836 2|Rice 6632 7 547 8 555 9 665 15,540 3 Wheat 8 489 9,143 9 842 10,587 14.564 4 Ground nut 5 516i 6 358 7 286 8 307 13 454 5 Soya bean 4 482 4,922 5 370 6 186 6.997 6 Potato 11 564 13224 15051 17062 23,6281 7 Onion 6,600 7,094 7614 8.1601 13419 8 Sesame 2 466 2 526 3 1401 3735 4,297 9ICoffee -4,608 -2 442 -2 4561 16098 19 8761 10(Atfatfa 0 0 4,0981 7,068 7 495] Table 3.10: Annual Net Returns from proposed cropping pattern (financial) Total Command Area (ha) 13665 _____________________ Total in each Years S/n Crop 5 6 7 8 9 Aabove 1'Maize 3 849 772 12 553,181 27,264 698 39 448255 i 60 369 397, 2'Rice 906 194 11 344 649 23 382 079 59 435 134 95,559 316, 3! Wheat 2.319 907 12 494 251 18 828 228 36 168 691 59 704,495 4Ground nut 1 507 386 4.344 104 4,977 989! 6 811 176 11 031 179) 5 Soya bean 1 224.794 2.017 569 3,669 326 4.226 666 9 561.0981 6 Potato 1 580.221 3614,119 8 226.877 11 657 441 16 143,693 7|Omon 901 890 1.938.790 3 121,236 5,575,651 9,168,830 SlSesame 0 690 356 1,287.038 2,551.778 3.523.420I 9|Coffee -6.296.149 -3,336 310 -3.356 397 21 998 416 27 160 770 lOiAtfatfa 0 0 3,359,540 5 794 643 6 145.151 [Total Returns 5.994,016 45,660,709 90,760,614 193,667,851 298,367.348, 3 3 Result of the financial Analysis (base condition) The NPV of the incremental benefits of the project at 10% discounting factor is estimated to be 607 5 million. With the same discounting factor the BCR was found to be 1.87 The internal . „ m riRR) for the financial cash flow is found to be 15.47%. The results indicated that the rate of return v ' rr ect is financially viable at 2006 constant price The result of the financial analysis is given in Table 3.11 '/ Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvt Ltd. I4Arjo Dedessa Irrigation Project Financial and Economic Analysis Table 3 11 Financial Analysis (Base case/ May 2007 Year investment O&M Total cool With out project Benefits With Project Benefits incremental Benefits Discount PV PV Factor (10%) Costs Benefits 0 19 304 241 19 304 241 2375801 -21680042 1 000 21680042 0 1 164 817 334 164 817 3-4 2399559 -167216893 0 909 152000156 0 0 2 277 196 174 277 196 174 2423555 -279619729 0 826 230965896 3 271 836 514 271 836.514 2e47790 -274284304 0 751 205987512 — 0 4 232 076 628 232 076 628 2472268 -234548896 0683 160196896 0 5 38,672.071 525000 39 197 071 2496991 5.994.016 -35700047 0621 25892013 3722283 69 6 1230000 1 230 000 2521961 45 660 709 41908748 0 564 2116106 25752640 7 2049750 2 049 750 2547181 90 760 614 86163683 0 513 235B225 4 46560194.9 8 2049750 2 049 750 2572652 193 667 851 189045449 0467 -------------------— 2158661 9 90442886.6) 9 2049750 2.049.750 2572652 298.367.348 293744946 0 424 1959898 6 126507756 10 2049750 2 049 750 2572652 298 367 348 293744946 0 386 1784247 3 115169796 11 2049750 2 049 750 2572652 298 367.348 293744946 0 350 1617840 8 104428572 12 2049750 2 049 750 2572652 298 367,348 293744946 0319 1474546 4 95179184 13 2049750 2 049 750 2572652 298 367 348 293744946 0 290 1340496 7 86526530 9 14 2049750 2 049 750 2572652 298 367 348 293744946 0 263 1215691 8 78470612.5 15 2049750 2.049.750 2572652 298.367.348 293744946 0239 1104754 2 71309796.2 16 2049750 2 049 750 2572652 298 367 348i 293744946 0.218 1007683.7 65044081 9 17 2049750 2.049 750 2572652 298 367 348 293744946 0 198 915235 67 59076734.9 18 20497501 2 049 750 2572652 298 367 348 293744946 0 180 832032 43 53706122 7 19 2049750 2 049.750 2572652 298.367.348 293744946 0 164 758073 99 48932245 1 20 21 2049750 2.049 750 2572652 298 367,348 293744946 0 149 688737.95 44456734 9 2049750 2 049 750 2572652 298 367 348 293744946 0.135 624024.32 40279592 22 2049750 2 049.750 2572652 298 367.348 293744946 0 123 568555 49 36699183 8 2049750 2.049.750 2572652 298 367 348 293744946 0 112 517709 07 33417143 24 2049750 2.049750 2572652 298 367 348 293744946 0 102 471485.04 30433469.5 25 27 2049750 2.049 750 2572652 298 367,348 293744946 0092 425261 02 27449796 2049750 2 049 750 2572652 298 367,348) 293744946 0088 406771 41 26256326 6 2049750 2.049.750 2572652 298,367,348! 293744946 0.083 383659 4 24764489.9 oft 2049750 2 049750 2572652 298 367 348 293744946 0.079 365169 79 23571020 5 2Q 2049750 2 049.750 2572652 298 367,348 293744946 0 073 337435 37 21780816 4 2049750 2 049 750 2572652 298 367,348 293744946 JU 21 0 067 309700 96 19990612 3 2049750 2 049 750 2572652 □1 298 367 348 293744946 0.063 291211 35 18797142.9 2049750 2 049,750 2572652 298 367 348 293744946 0 059 272721 74 17603673 5 33 24 IS 2049750 2 049 750 2572652 298 367 348 293744946 0 055 254232 13 16410204.1 2049750 2 049.750 2572652 298.367 348 293744946 r- — ----------- 0 051 235742 52 15216734 8 2049750 2 049 750 2572652 298 367,348 293744946 0 048 221875.31 14321632 7 36 JL OJt 2049750 2049750 2572652 298 367,348 293744946 0 044 203385 7 13128163 3 2049750 2 049750 2572652 298 367 348 293744946 0 041 189518.5 12233061 3 2049750 2.049.750 2572652 298 367 348 293744946 0039 18C273 69 11636326 6 39 40 2049750 ,2049750 2.049.750 2 049 750 2572652 2572652 298 367.348 298 367 348 293744946 293744946 0 036 0.033 Total 166406 49 152539 28 824632477 10741224 5 9846122 49 15.47%' 1.557] In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis 3.4. Sensitivity Analysis Sensitivity analysis was conducted following three conditions These are i A 5% increase in the cost stream ano no change in the benefit stream ii A 5% decline in benefit stream and no change in cost steam iii A 5% decline in benefits and a 5% increase in cost May 2007 The summary of Base Financial Analysis ana results of sensitivity analysis and given at Table 3.12 Table 3.12. Summary of Base Financial analysis and sensitivity tests Conditions Viability Criteria FNPV FIRR F B/C Base case 607 522,988.98 15.47% 1.867 5% increase in cost 570,062,785 14.97% 1.778 5% decline in benefits 539,686,636 14.95% 1.774 5% increase in cost and 5% decline in benefits 502,226,432 14.46% 1 689 The result shows that the financial prospect is very stable despite changing conditions in cost and benefit estimations. The result of the sensitivity tests is given in Tables 3 13, 3.14 and 3.15. Water Works Design & Supervision Enterprise Id Association with Intercontinental Consultants and Technocrats Pvt Ltd. 16Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 Table 3 13 Sensitivity test, increase cost by 5% and no Change on benefit steams (financial) O&M Wrih out project Benefits Wrtri Project Benefits Total Increment*! PV PV Cost Benefit* Cost* Benefits 0 20 269 453 q[ 2494591 0 22764044 -22764044 22764044 U 1 173 058.201 ”J 2519537 0 175577738 -175577738 159600164 0 2 291 055.982 2544733 0 293600715 -293600715 242514191 0 3 285 428 339 2570180 0 287998519 -287998519 216286888J 0 4 , 243 680 460 2595882 0 246276341 -246276341 168206741 0 5 , 40 605 675 55125ol 2621841 5994015 6 43778766 -37784750 27186613 372228369 6 0 129150ol 2648059I 45660709 3939559 41721150 2221911 3 25752640 7 2152237 51 2674540 90760614 4826777 85933837 2476136 7 46560194.9 8 2152237 d 2701285 193667851 4853522 188814329 2266595 90442886 6 9 2152237 5- 2701285 298367348 4853522 293513826 2057893.5 126507756 10 2152237 J 2701285 298367348, 4853522 293513826 1873459 7 115169796 11 2152237 d 27012851 298367348 4853522 293513826 1698732 9 104428572 12 2152237 5] 2701285 298367348 4853522 293513826 1548273 7 95179184 13 2152237 d 2701285 298367348 4853522 293513826 1407521 5 86526530 9 14 2l52237?5j 2701285 298367348 4853522 293513826 12764764 78470612 5 15 2152237.5] 2701285 298367348 4853522 293513826 1159991.9 71309796.2 16 2152237 5, 2701285, 298367348 4853522 293513826 1058067 9 65044081.9 17 2152237. d 2701285 298367348 4853522 293513826 960997 45 59076734 9 18 2152237.d 2701285 298367348 4853522 293513826 873634 05 53706122.7 19 2152237 d 2701285 29836724? 4853522 293513826 795977 69 48932245.1 20 2152237 d 2701285 298367348 4853522 293513826 723174.85 44456734.9 21 2152237.5] 2701285 298367348 4853522 293513826 655225 54 40279592 22 2152237.5 2701285 298367348 4853522 293513826 596983.27 36699183.8 23 2152237.5i 2701285 298367348 4853522 293513826 543594 52 33417143 24 2152237 5 2701285 298367348 4853522 293513826 495059.29 30433469.5 25 2152237 5 2701285 298367348 4853522 293513826 446524.07 27449796 26 2152237.5 2701285 298367348 4853522 293513826 427109.98 26256326 6 27 2152237 5 2701285 298367348 4853522 293513826 402842.37 24764489.9 28 2152237 5 2701285 298367348 4853522 293513826 383428 28 23571020 5 29 2152237 5 2701285 298367346 4853522 293513826 354307 14 21780816 4 30 2152237 d 2701285 298367348 4853522 293513826 325186.01 19990612 3 31 2152237 5 2701285 298367348 4853522 293513826 305771.92 18797142 9 32 2152237.5 2701285 298367348 4353522 293513826 286357 83 17603673 5 33 2152237 5 2701285 298367348 4853522 293513826 266943 74 16410204 1 34 2152237.5 2701285 298367348 4853522 293513826 24752965 15216734 8 35 36 2152237.5 2701285 298367348 4853522 293513826 232969 08 14321632 7 2152237 5 2701285 298367348 4853522 293513826 213554 99 13128163 3 37 38 2152237.5 2701285 298367348 4853522 293513826 198994 42 12233061 3 21522375 2701285 298367348 4853522 293513826 189287 38 11636326 6 39 JO 2152237 ! 2701285 29836734? 4853522 293513826 174726 81 1074199** 2152237 f 270128! 298367345 4853522 293513826 Total 160166 24 9846122 49 86586404S ~ IRR 14,177. 1531882908 [NPV •» 10^ ETfc 570,082,785 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 17Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 Table 3 14: Sensitivity test, decline in benefits by 5% and no change on cost steams (financial) Year investment O&M With out project With Project Total Incremental PV PV Benefits Benefits Costs Benefits Cost Benefits 0 19 304 241 0 2375801 0 21.680.042 -21,680.042 21680042 0 1 , 164 817,334 0 2399559 0 167 216 893 -167.216.893 152000156 01 2 277 196 174 0 2423555 0 279.619.729 -279 619 729 230965896 0 3 , 271 836.514 0 2447790 0 274 284.304 -274.284 304 205987512 0 4 232 076 628 0 2472268 0 234.548 896 -234 548.896 160196896 0 5 38 672 071 525000 2496991 5694314 8 41.694 062 -35 999 748i 25892013 3536169 5 6 1230000 2521961 43377674 3.751 961 39 625.713 2116106 24465008 7 2049750 2547181 86222583 4.596 931 81 625.653 2358225.4 44232185.1 8 2049750 2572652 183984459 4,622.402] 179,362,056 2158661.9 85920742.2 9 2049750 2572652 283448981 4622,402 278.826.578 1959898 6 120182368 10 2049750 2572652 283448981 4.622 402 278 826,578 1784247.3 109411307 11 2049750 2572652 283448981 4,622 402 278 826,578 1617840.8 99207143.2 12 2049750 2572652 283448981 4,622.402 278.826 578 1474546 4 90420224 8 13 2049750 2572652 283448981 4.622.402 278.826 578] 1340496 7 82200204.4 14 2049750 2572652 283448981 4,622.402 278 826 578' 1215691.8 74547081.9] 15 2049750 2572652 283448981 4,622.402 278 826 578 1104754.2 67744306.4| 16 2049750 2572652 2834489811 4,622.402 278 826 578 1007683 7 61791877.8 17 2049750 2572652 283448981 4.622.402 278 826 578 91523567 56122898.2 18 2049750 2572652 283448981 4,622.402 278.826.578 832032 43 51020816.5 19 2049750 2572652 283448981 4.622.402 278 826,578 758073 99 46485632 8 20 2049750 2572652 283448981 4,622,402 278,826,578 688737 95 42233898 1 21 2049750 2572652 283448981 4.622.402 278826.578 624024 32 38265612.4 22 2049750 2572652 283448981 4 622,402 278 826 578 56855549 34864224.6 23 2049750 2572652 283448981 4,622,402 278 826.578 517709 07 31746285.8 24 2049750 2572652 283448981 4,622.402 278.826.578 471485 04 28911796 25 2049750 2572652 283448981 4.622402 278.826.578 425261 02 26077306 2 26 2049750 2572652 283448981 4.622,402 278 826.578 406771 41 24943510 3 27 2049750 2572652 283448981 4,622.402 278 826.578 3836594 23526265 4 28 2049750 2572652 283448981 4.622.402 278.826 578 365169 79 , 22392469 5I 29 2049750 2572652 283448981 4.622,402 278.826 578 337435.37 20691775 6 30 2049750 2572652 283448981 4.622,402 278 826 578 309700 96 18991081 7 31 2049750 2572652 283448981 4.622.402 278.826.578 291211 35 17857285 R 32 2049750 2572652 283448981 4.622402 278 826 578 272721 74 1677*MRQ q 33 2049750 2572652 283448981 4,622.402 278.826 578 254232 13 ISRRQAQ'X o 34 2049750 2572652 283448981 4,622.402 278.826.578 235742 52 35 2049750 2572652 283448981 4.622 402 278 826 578 221875 31 iJ OO l l 36 2049750 2572652 283448981 4.622 402 278.826.578 203385 7 37 2049750 2572652 283448981 4 622 402 278 826 578 189518 c 38 2049750 2572652 283448981 4,622.402 Qv j I Ilf□□ 1 i 1041408.2 278 826 57e 180273 6C 39 40 2049750 2049750 2572652 283448981 2572652, 283448981 I 4.622.402 4,622 402 278,826 578 278 826 578 166406 4S 152539.2J 11UOA510 2 > 10204163 3 ? 9353816 3^ IRR~ NPVatio* ETB53 •Total I 14.S55 • .686 WM 12443242 BCR ------------------------ 11T74 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 18Arjo Dedessi Irrigation Project Financial and Economic Analysis Table 3 15: Sensitivity test, decline in benefits by 5% and increase tn cost by 5% May 2007 Vear lrivestment C )&M A/itfri out project With Project Total Incremental PV PV II Benefits Benefits Costs Benefits Cost Benefits 0 20 269 453 0 2 494 59? 0 22,764 0441 -22,764 044 22764044 0 1 173.058,201 0 2.519.537 0 175 577 738 -175577.738 159600164 0 2 ' 291 055 982 0 2 544 733 0 293,600.715 -293.600.715 242514191 0 3 I 285,428.339 0 2 570.180 0 287 998 519 -287 998,519 216286888 0 4 243.680 460 0 2 595.882 0 246276.341 -246.276 341 168206741 0 5 40 605 675 1 6 551 250 2 621 841 56943148 43 778.766 -38.084 451 27186613 3536169 5 1,291,500 2.648.059 43377674 3.939.559 39.438.115 2221911 3 24465008 7I 2 152,238 2 674,540 86222583 4 826.777 81 395.806 2476136.7 44232185 1 2 152 238 2 701 285 183984459 4.853.522 179 130.936 2266595 85920742 2 8 9 2,152 238 2 701.285 283448981 4 853 522 278 595.458 2057893 5 120182368 10 2.152,238 2.701 285 283448981 4,853.522 278,595,458 1873459 7 109411307 I 12 I I 11 2 152,238 2 701.285 283448981 4853522 278.595 458 1698732 9 99207143.2 2.152.2381 2 701.285 283448981 4,853.522 278 595 458 1548273.7 90420224 8 1 2.152,238 2 701,285 283448981 4.853 522 278 595.458 1407521.5 82200204 4 31 14 2,152,238 2.701,285 283448981 4.853,522 278,595458 1276476.4 74547081.9 2.152.238 2.701.285 283448981 4.853,522 278,595 458 1159991.9 67744306.4 15 I 2.152.238 2 701.285 283448981 4 853,522 278.595.458 1058067.9 61791877.8 16 2 152.238 2,701,285 283448981 4853,522 278 595 458 960997 45 17 56122898 2 18 J 2,152.238 2 701.285 283448981 4,853.522 278.595 458 873634 05 51020816.5 19 2.152.238 2.701.285 283448981 4 853.522 278 595,458 795977 69 46485632.8 20 2.152.238 2.701.285 283448981 4,853,522 278595.458 723174.85 42233898 1 21 2 152.238 2.701,285 283448981 4853 522 278.595 458 655225 54 38265612.4 22 2.152238 2 701.285 283448981 4.853 522 278 595 458 596983 27 348642246 23 2.152.238 2.701.285 283448981 4853,522 278.595 458 543594.52 31746285.8 24 2.152 238 2.701,285 283448981 4853522 278.595.458 49505929 28911796 25 2 152.238 2.701,285 283448981 4.853 522 278 595 458 44652407 26077306 2 26 2 152.238 2.701.285 283448981 4.853,522 278 595 458 427109.98 24943510.3 27 2 152.238 2.701,285 283448981 4,853.522 278.595 458 402842.37 235262654 28 2.152.238 2.701,285 283448981 4 853.522 278.595.458 383428.28 22392469 5 29 2 152.238 2.701,285 283448981 4.853.522 278,595.458 354307 14 20691775 6 30 2.152.238 2.701.285 283448981 4,853522 278.595 458 325186 01 18991081 7 31 2.152,238 2701.285 283448981 4.853.522 278 595 458 305771 92 17857285 8 32 2 152.238 2,701,285 283448981 4853.522 278.595 458 286357.831 16723489 9 33 2 152231 2.701,285 283448981 4.853 522 278.595 458 266943 74 15589693 Q 34 2.152.23 J 2.701.28! 283448981 4853522 278.595 458 247529.65 14455898 35 2.152,23 3 2.701,28! 283448981 4 853.522 278.595 458 232969 08 13606651 1 36 2,152,231 B 2,701,28! 283448981 4.853.522 278 595.458 . 213554.99 12471755 1 37 2 152.23 8 2.701,28! 283448981 4853.522 278.595458 198994 42 38 2.152.23 8 2701.28! 283448981 4853522 278.595.458 . 189287.38 11054510 9 39 2152.23 8 2.701,28 5 283448981 4.853 522 278.595.45d _ 174728 81 40 2152.23 8 2701.28 5 28344898 4853522 278.595.458 160166 24 Total 865864049 [|RR 14.46% |NPVStlO% ETB 502,226,432 ^bcr' -1------------------------ |1.W» Water Works Design & Supervision Enterprise In association with Intarcontinental Consultants and Technocrats Pvt Ltd. 19Arjo Dedessa Irrigation Project Financial and Economic Analysis 3.5. Result of the Economic Analysis May 2007 The economic analysis of the project is based on the cropping pattern, yield build up and land allocation as well as cropping intensity considered for the financial analysis. However the economic analysis considers the adjustment for pnces based on national and international situations Appropriate conversion parameters prepare by DPSA (1990) is used to reflect the economic prices of the inputs and outputs to farm operation and the capital investment. The ENPV of the incremental benefits of the project at 10% discounting factor is estimated to be ETB 1,311 8 million With the same discounting factor the EBCR was found to be 3.173 The internal rate of return (EIRR) for the economic cash flow is found to be 22.06%. The details of cash flow, for the economic analysis are available at TaDie 3.17 The results indicated that the project is economically viaDle. The conversion factors given at Table 3.16 have been are applied under the project. Table 3.16: National Parameters to be used for Economic Analysis Parameters Conversion factors 1 Unskilled rural labor 0.55 2 3 4 Fertilizer 0.99 Chemicals and chemical products 080 Construction 0.75 5 Crops Coffee Wheat Maize Rice Teff Barley Finger millet Vegetables Pulses Oil seeds Alfalfa 2.00 1.10 1 92 1.20 2.02 1.88 1.20 1 50 1.18 1.18 1.00 Discount rate 10% The Conversion factors are based on the World Price Numeraire Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 20Arjo Dedessa Irrigation Project Financial and Economic Analysis Table 3 17 Result of the Economic analysis (Base condition) May 2007 Year Investment Total cost With out project Benefits With Project Benefits Incremental Benefits Discount PV PV Factor (10%| Costs Benefits 0 14 478,18 14 478 18ll 809614 1 -22574326 1.00C ) 22574328 0 1 123 613 00 123 613,00 8177101 -13179010S 0.90$ > 1197972O9| 0 2 207 897 13C 207.897 13( ) 825888C ) -21615601C 0.826 178544864 u 3 203 877 38f 203,877.38! 8341465 -212218854 0 751 159376359 0 4 -74.057 471 174 057 47 842488C -182482354 0 683 124635448 0 5 29 004 054 52500C 29 529 054 8509132 13,432.524 -24605661 0 621 23621713 8341597 52 6 123000C 1 230 00C 8594222 67 584 164 57759941 0.564 [ 5540862 38117468 7 7 204975C 2.049.75C 86801661 132 088.232 121358316 0513 5504446.8 67761263 1 8 204975C 2 049 75C 876696? 284 256 177 273439460 0467 5051407 132747635 9 2049750 2 049 750 8766967 425 052 574 414235857 0.424 45862882 180222291 10 2049750 2 049 750 8766967 425 052 574| 414235857 0 386 4175252 9 164070294 11 2049750 2 049 750 8766967 425,052,574 414235857 0 350 3785851 1 148768401 12 2049750 2.349 750 8766967 425 052.574, 414235857 0.319 3450532.8 135591771 13 2049750 2 049 750 8766967 425052 574 414235857 0 290 3136848 123265246 14 2049750 2 049 750 8766967 425 052 574 414235857 0 263 2844796 7 111788827 15 2049750 2 049.750 8766967 425.052 574 414235857 0.239, 2585195 4 101587565 16 2049750 2.049 750 8766967 425 052 574 414235857 0.218 2358044 4 92661461 1 17 2049750 2 049 750 8766967 425 052 574 414235857 0 198 2141710 84160409 7 18 2049750 2 049.750 8766967 425 052.574 414235857 0.180 1947009 1 76509463 3 19 2049750 2.049.750 8766967 425 052.574 414235857 0 164 1773941.6 69708622 1 20 2049750 2 049 750 8766967 425,052.574 414235857 0.149 1611690 9 63332833 5 21 2049750 2 049.750 8766967 425 052,574 414235857 0 135 1460256 8 57382097 5 11 2049750 2 049 750 876696’ 425 052 574 414235857 0.123 1330456 2 52281466 6 23 2049750 2.049750 8766967 425.052,574 414235857 0 112 1211472 3 47605888 3 24 2049750 2049.750 8766967 425.052.574 414235857 0 102 11U33O5 2 43355362.6 25 2049750 2 049.750 8766967 425.052.574 414235857 0.092 995138 39104836 8 26 2049750 2049.750 8766967 425,052.574 414235857 0 088 951871.13 37404626 5 27 2049750 2,049.750 8766967 425 052.574 414235857 0083 897787 54 35279363 6 28 2049750 2.049.750 8766967 425.052 574 414235857 0 079 854520 67 33579153 3 29 2049750 2049 750 8766967 425.052 574 414235857 0.073 789620 37 31028837 9 30 2049750 2049.750 8766967 425 052.574 414235857 0.067 724720 06 28478522 5 31 2049750 2049.750 876696’ 425.052.574 414235857 0 063 681453 19 26778312 2 32 33 2049750 2.049750 8766967 425.052.574 414235857 0059 638186 32 25078101 9 2049750 2.049,750 8766967 425.052.574 414235857 0055 594919.45 233778916 34 35 2049750 2,049 750 8766967 425.052 574 414235857 0 051 551652 59 21R77RR1 -J 2049750 2 049.750 8766967 425.052.574 414235857 0.048 519202 43 36 37 2049750 2,049.750 8766967 425.052.574 414235857 0.044 475935 56 awwaDZJ.o 18702313 3 2049750 2.049.750 8766967 425.052.574 414235857 0 041 443485.41 17427144 4 38 39 2049750 2.049 750 8766967 425.052.574 414235857 0.039 421851 98 2049750 2049.750 8766967 425.052.574 loo<7050 4 414235857 0 036 "UKum so 40 2049750 2.049.750 8766967 425.052574 414235857 . 0.033 356951 67 Total 15301892.7 14026734.9 RR MPV BCR _____________ 22.06% ETB 1,311,7»3,7MJ4 3.173 0^4435988 2203484962 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd ' 21c Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 3.6. Sensitivity Analysis (Economic) Sensitivity test for the economic analysis was also conducted following three conditions as in the case of the financial analysis These are i. A 5% increase in the cost stream and no cnange in the benefit stream ii. A 5% decline in benefit stream and no change in cost steam iii. A 5% decline in benefits and a 5% increase in cost The summary of Base Economic Analysis & results of sensivity analysis are given at Table 3 18 Table 3.18: Summary of Base economic analysis and sensitivity tests Conditions Viability Criteria ENPV EIRR E B/C Base case 1,311,793,765.24 22.06% 3.173 5% increase in cost 1,280,298,618 98 21.43% 3.022 5% decline in benefits 1,214,708,930.72 21.40% 3.014 5% increase in cost and 5% decline in benefits 1,183,213,784.46 20.78% 2.871 The result shows that the economic prospect is very stable despite changing conditions in cost and benefit estimations. The result of the sensitivity tests is given in Tables 3.19, 3.20 and 3 21 Wiur Works Design t Supervision tttatta with InterrooWatul Console and TeSXeu Pvt. ltd. ------------------ 22Arjo Dedessa Irrigation Project Financial and Economic Analysis Table 3.19 Sensitivity test, increase cost by 5% and no Change on benefit steams May 2007 Year Ir ivestment C )&M f tWith out project Benefits yVitti Project Benefits Total Incremental PV PV Cost Benefits Costs Benefits 0 15 202 090 0 8500955 0 23703044 -23703044 23703044 0 1 129 793 651 0 8585964 0 138379615 -138379615 125787070 0 2 218 291,987 0 8671824 0 226963811 -22696381 ll 187472108 V 3 214.071.255 0 8758542 0 222829797 -222829797 167345177 0 4 182.760.345 0 8846127 “a 191606472 -19160647? 130867220 0 5 30 454.256 551250 8934589 13432524 39940095 -26507571 24802799 8341597 52 6 0 1291500 9023935 67584164 10315435 5726873oT 5817905 1 7 2152238 9114174 "32088232 11266411 120821821 5779669 1 8 2152238 9205316 284256177 11357553 272898624 5303977 4 38117468.7 67761263.1 132747635 9 2152238 9205316 425052574 11357553 413695021 4815602 6 180222291 10 2152238 9205316 425052574 11357553 413695021 4384015 5 164070294 11 2152238 9205316[ 425052574 11357553 413695021 3975143.6 148768401 12 2152238 92053161 425052574 11357553 413695021 3623059.5 135591771 13 2152238 9205316 425052574 11357553 413695021 3293690 4 123265246 14 2152238 9205316 425052574 11357553 413695021 2987036 5 111788827 15 2152238 9205316 425052574 11357553 413695021 27144552 101587565 16 2152238 9205316 425052574 11357553 413695021 2475946.6 92661461.1 17 2152238 9205316 425052574 11357553 413695021 2248795.5 84160409.7 ie 2152238 9205316 425052574 11357553 413695021 2044359.6 76509463 3 19 2152238 9205316 425052574 11357553 413695021 1862638 7 69708622 1 20 2152238 9205316 425052574 11357553 413695021 1692275.4 63332833 5 21 2152238 9205316 425052574 11357553 413695021 1533269.7 57382097 5 22 2152238 9205316 425052574 11357553 413695021 1396979 52281466.6 23 2152238 9205316 425052574 11357553 413695021 1272046 47605888.3 24 2152238 9205316 425052574 11357553 413695021 1158470 4 43355362 6 25 26 2152238 9205316 425052574 11357553 413695021 1044894.9 39104836 8 2152238 9205316 425052574 11357553 413695021 999464 68 37404626.5 27 2152238 9205316 425052574 11357553 413695021 942676 92 35279363 6 28 2152238 9205316 425052574 11357553 413695021 897246.7 33579153.3 29 2152238 9205316 425052574 11357553 413695021 829101 39 31028837.9 30 2152238 9205316 425052574 11357553 413695021 760956.07 28478522 5 31 2152238 9205316 425052574 11357553 413695021 715525.85 26778312.2 32 215223E 9205316 425052574 11357553 413695021 670095.64 250781019 33 215223E 9205316 425052574 11357553 413695021 624665.43 233778916 34 2152231 9205316 425052574 11357553 413695021 579235 21 21677681 3 35 215223* 9205316 425052574 11357553 413695021 545162 55 20402523 6 36 2152231 9205316 425052574 11357553 413695021 499732 34 18709^1 *a 1 37 38 2152231 3 9205316 5 425052574 11357553 413695021 465659.68 174771 * 2152231 3 9205316 3 425052574 11357553 413695021 442944.58 I6577n*;n m 39 40 215223 B 9205311 5 425052574 1135755: 413695021 408871.92 153D1RQ7 7 ______ IRR 21522381 920531 5 425052574 1 1135755: 413695021 Total 21.43% . 729157788 374799 28 l4rnR7”U n 2203484982 N?v«tio%----------------------------------------------------------------------------- etb BCR________________________________________________ 3.0221 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Prt Ltd. 23Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 no cnange on cost steams frea rl Investment O&M — PV With out oroiect With Proiect Total incremental PV Benefits Benefits Costs Benefits Cost Benefits 0 14 478 18 1 1 8096147' ) 22 574.326 -22.574 32£ 22574328 0 > 131 790 105 -131 790.10$ 11979720s 0 1 123,613 00 ( ) 817710* ? 207 897 13C )( 825888? )( 216 156 01C -216 156 01C 178544864 0 3 203 877 38? > c X 834146? ) c 212 218 854 -212.218.854 . 159376359 0 4 174 057 47“ c)| 842488. oi 182 482 354 -182 482.354 124635448 0 5 29 004 5/ 52500C 850913: 12760896 38 038 186 -25.277.28S 23621713 792451< o4 6 123OOOCJ 8594222 64204956 9 824,223 54 380 733 5540862 36211595 2 7 2049750 8680166 125483821 10.729.916 114 753.905 5504446 8 64373200 R 2049750 8766967 270043368 10,816 717 259 226.651 5051407 126110253 9 2049750 8766967 403799945 10 816 717 392 983.228 4586288 2 171211177 10 2049750 8766967 403799945 10 816 717 392 983 228 4175252 9 155866779 11 2049750 8766967 403799945 10 816.717 392 983,228 3785851 1 141329981 1? 2049750 8766967 403799945 10 816 717 392 983 228 3450532 8 128812183 13 2049750 8766967 403799945 10.816 717 392.983,228 3136848 117101984 14 2049750 8766967 403799945 10 816 717 392.983,228 2844796 7 106199386 15 2049750] 8766967 403799945 10 816 717 392 983 228 2585195 4 96508186.9 16 2049750 8766967 403799945 10 816 717 392.983.22sl 2358044 4 88028388 1 17 2049750 8766967 403799945 10 816.717 392 983 228 2141710 79952389.2 1R 2049750 8766967 403799945 10 816.717 392 983 228 1947009 1 72683990 2 19 2049750^ 8766967 403799945 10 816 717 392 983 228 1773941 6 66223191 ?0 2049750 8766967 403799945 10.816.717 392 983 228 1611690 9 60166191 9 21 2049750I 876696" 403799945 10,816,717 392,983,228 1460256 8 54512992 6 2? 2049750 876696’ 403799945 10,816 717 392 983,228 1330456 2 49667393 3 23 2049750 8766967 403799945 10816 717 392,983.228 1211472 3 45225593 9 24 2049750 8766967 403799945 10 816 717 392.983,228 1103305 2 41187594 4 25 2049750] 8766967 4037999451 10 816 717 392 983 228 995138 37149595 26 2049750 8766967 4037999451 10 816 717 392 983 228 951871 13 35534395.2 27 2049750 8766967 403799945 10 816,717 392 983 228 897787 54 33515395 5 28 29 2049750] 8766967 403799945 10.816 717 392 983,228 854520 67 31900195 7 2049750 876696" 403799945 10 816 717 392,983 228 789620.37 29477396 30 2049750 8766967 403799945 10 816.717 392 983 228 724720.06 27054596 3 31 2049750 8766967 403799945 10 816.717 392 983.228 681453.19 25439396 6 32 2049750 876696" 403799945 10 816 717 392,983 228 638186 32 23824196 8 33 2049750 8766967 403799945 10 816 717 392 983 228 594919 45 22208997 34 2O4975o| 8766967 403799945 10.816.717 392 983 228 551652 59 20593797 2 35 36 2049750I 8766967 403799945 10 816.717 392 983 220 519202 43 193823974 20497501 8766967 403799945 10,816.717 392 983,228 475935 56 177A71Q7e “37 2049750 8766967 403799945 10 816.717 392 983.228 443485 41 .38 2049750 876696" 403799945 10 816 717 392.983.228 2049750 8766967| 421851 98 39 403799945 10.816717 40 2049750 8766967 392 983 228 403799945 10 816.717 389401 82 392,963 228 356951 67 lojuj/y/ 0 1574A1Q7 O 2093310714 ies3o798 13325398 2 21.407. ETB 1,214,70030 72 — Water Works Design & Supervision Enterprise 1-014 24 Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Table 3.21 Sensitivity test, decline in benefits by 5% and increase in cost by 5 /□ May 2007 Year PV investment O&M With out project With Project Total Incremental PV Costs Benefits Cost Benefits Benefits Benefits 0 15.202.090 0 8 500.955 0 23 703.044 -23.703,044 23703044 1 129793 651 0 8,585 964 0 138 379.615 -138.379.615 125787070 0 2 218 291.987 0 8 671 824 — 0 226.963 811 -226 963.811 187472108 0 3 214 071 255 o 8 758 542 0 222 829 797 -222 829,797 167345177 0 4 182.760 345 0 8 846 127 0 191 606 472 -191 606 472 130867220 5 30 454 256 , 551.250 8 934.589 12760898 39 940 095 -27 179.1971 24802799 6 0 792451/ 64 36211595.2 1.291.500 9 023 935 64204956, 10 315435 53 889 521 5817905J1 7 2 152 238 9 114 174 125483821 11 266.411 114 217.409 5779669 1 64373200 8 ,, 2 152,238 2 152 238 9.205 316 270043368 11 357.553 258 685 815 5303977 4 126110253 9 9.205.316 403799945 11 357 553 392 442.392 4815602 6 171211177 10 2 152238 9 205 316 403799945 11.357,553 392 442.392 4384015.5 155866779 11 2.152,238 9 205.316 403799945 11,357 553 392 442 392 3975143 6 141329981 12 2 152,238 9 205 316 403799945 11.357,553 392 442.392 3623059.5 128812183 13 2 152 238 9 205 316 403799945 11 357.553 392 442,392 3293690.4 117101984 14 2,152,238 9 205 316 403799945 11.357 553 392 442 392 2987036 5| 106199386 15 2 152,238 9 205 316 403799945 11,357 553 392 442 392 2714455 2 96508186.9 16 2,152.238 9205.316 403799945 11,357 553 392 442,392 2475946 6 88028388.1 17 2,152,238 9 205.316 403799945 11.357 553 392.442,392 2248795.5 79952389.2I 18 2 152.238 9.205.316 403799945 11 357.553 392 442.392 2044359.6 72683990.2I 19 2 152,238 9 205 316 403799945 11 357 553 392 442.392 1862638.7 66223191 20 2.152.238 9.205.316 403799945 11.357.553 392 442.392 1692275.4 60166191.9 21 2,152 238 9.205.316 403799945 11,357,553 392 442.392 1533269 7 54512992.6 22 2,152 238 9 205 316 403799945 11.357,553 392 442 392 1396979 49667393.3 23 2 152,238 9.205,316 403799945 11 357.553 392 442392 1272046 45225593.9) 24 2.152.238 9205316 403799945 11 357.553 392.442.392 1158470.4 41187594.4 25 2.152.238 9.205,316 403799945 11.357.553 392.442.392 1044894.9 37149595 26 2.152.238 9205,316 403799945 11.357.553 392.442.392 999464 68 35534395.2 27 2.152.238 9.205316 403799945 11 357,553 392 442.392 942676 92 33515395 5 28 2.152.238 9.205316 403799945 11.357.553 392 442.392 897246 7 31900195.7 29 2 152.238 9205.316 403799945 11.357,553 392 442.392 829101.39 29477396 30 2.152.238 9,205316 403799945 11.357.553 392 442.392 760956 07 27054596 3 31 2 152.238 9205.316 403799945 11.357.553 392 442.392 715525 85 25439396 6 32 2 152.238 9205.316 403799945 11.357.553 392.442 392 670095.64 403799945 ■------------------------- 22208997, 23824196 Bi 9 205.316 1 33 2.152.238 11 357 553 392 442.392 62466543 34 2.152.238 9205.316 403799945 11.357 553 392 442.392 57923521 20593797 2 35 2.152.238 9205.316 403799945 11 357.553 392 442 392 545162 55 19382397 4 36 2 152.238 9.205.316 403799945 11 357 553 392.442.392 499732 34 17767197 6 37 2,152.238 9205.3161 403799945 11.357 553 392.442.392 465659 68 16555797 8 38 2.152.238 9 205.316 403799945 11 357 553 392.442.392 442944 58 157SA1Q7 a 39 2.152.23® 9205316 403799945 11 357.553 392 442 392 408871 92 14*nA7QA 40 2.152,238 9205,316 403799945 11.357 553 392 442 392 Total 374799 26 13325398 2 729157788 IRR 20.78% 2093310714 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 25Arjo Dedessa Irrigation Project Financial and Economic Analysis 4. Conclusions May 2007 Arjo-Dedesa Irrigation Project located in the western Oromia has significant contribution to socio economic situation of region and the project area The income of people in the project area will increase to the level that they can be able to pay for social services such as scnool, health et. The increase in production from a given area of land ano employment opportunity will create other contribution of the project. The project will also create a situation where the community will get access to technologies Moreover, the analysis of tangible benefits and costs has shown that the project is viable and stable in both financial and economic aspects 26Arjo Dedessa Irrigation Project Flnanclad and Economic Analysis Annex 1. Crop Budget for Financial Analysis Annex 1.1 Crop Budget per hectare for Maize (with project) May 2007 S.N ITEMS QT/ UNIT Total in each Years 5 6 7 8 9 Aabove 1 COST 11 Human LaDor in PD 56 I Pnce/unit 8 448 448 448 448 448 1.2 Oxen in Oxen Days 12 Price/umt 20 240 240 240 240 240 1.3 Seed in Kg 25 Pnce'umt 4 100 | 100 100 100 100 1.4 DAP in Kg 50 Pnce/umt 3.95 197 5 197.5 197.5 197.5 197 5 1.5 Urea 200 Price/unrt 3.3 660 660 660 660 660 1.6 Pesticides LS Price/umt 250 263 276 289 304 1.7 Tools LS Price/unit 30 30 30 30 30 18 Sacks Price/umt 3 105 110 116 122 150 1.9 Land Tax LS Pnce/umt 35 35 35 35 35 Total Cost 2,066 2,083 2,102 2,121 2,164 2 Return 2.1 field in qt.(main) field in qt.(by product)) 3ross Return 35 37 39 41 50 70 77 85 93 100 1 ’rlce/qt din product (ETB) 150 5,250 5,513 5,788 6,078 7,500 By-product (ETB) 35 2,450 2,695 2,965 3.261 3 500 rotal Gross Return 7,700 8,208 8,753 9,338| 11,000 Net Return (ETB) 15.635 6,124 6,651 7,2171 8.836 Water Works Design & Supervision Enterprise-------------------- In Association with Intercontinental Consultants and Technocrats Pvt. Ltd 27 ____________Aijo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.2 Crop Budget per hectare for Rice (with project) May 2007 Total in each Y ears s.h1. ITEMS QT/ UNIT 567 8 9 &above 1 iCOST 11 [Human Labor in PD 92 JPnce/umt 8 736 736 736 736 736 1.2 (Oxen in Oxen Days 27 iPnce/unit 20 540 540 540 540 540 I 1.3 'Seed in Kg 30 IPnce/unit 5 150 150 150 150 150 1 4 DAP in Kg 50 Pnce/unit 395 197.5 197 5 197.5 197 5 197 5 15 Urea 200 iPnce/unit 33 660 660 660 660 660 1.6 Pesticides LS Pnce/unit 355 373 391 411 432 17 Tools Price/unit 7 8 Sacks LS 30 30 30 30 30 Pnce/unit 3 90 99 109 120 180 i9 Land Tax LS Pnce/unit 35 35 35 35 35 Fotal Cost 2794 2,820 2,849 2,879 2,960 2 (IT' ( Return field in qt.(mam) field in qt (by product)) Sross Return 30 33 36 40 60 55 61 67 73 100 Price/qt A Ain product (ETB) 250 / r 500 8.250 9 075 9983 15,000 R Jy-product (ETB) otal Gross Return 35 1 925 2,118 2 329 2.562 3 500 I 1,425 10,368 11.404 12,545 18,500 ■ ' - '• ■ • Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt LtdArjo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.3. Crop Budget per hectare for Wheat (with project) May 2007 “I S.N. ITEMS QT/ UNIT Total in each Years 5I6 7 8 9&above 1 COST 11 Human Labor in PD 58 iPrice/umt 8 464 464 464 464 464 12 Oxen in Oxen Days 26 Price/unit 20 520 520 520 520 520 1.3 Seed in Kg 125 Price/unit 4 500 500 500 500 500 14 DAP in Kg 50 Price/umt 395 197 5 197 5 197 5 197 5 197 5 15 Urea 200 Price/unit 33 660 660 660 660 660 16 Pesticides LS Pnce/umt 300 315 331 347 365 17 Tools LS Pnce/unit 30 30 30 30 30 18 Sacks Price/unit 3 105 110 116 122 165 19 Land Tax I LS Pnce/umt 35 35 35 35 35 Total Cost 2,812 2,832 2,853 2,875 2,936 2 I Return 2.1 i Yield in qt.(main) Yield in qt.(by product)) Gross Return 35 37 39 41 55 55 61 67 73 80 Price/qt Min product (ETB) 260 9,100 9,555 10 033 10.534 14 300 By-product (ETB) 40 2,200 2 420 2662 2,928 3,200 Fotal Gross Return Net Return (ETB) 11,300 11,975 I 8,489 9,14S 12,695 9,842 13,463 10 ’587 17,500 l 14564 i Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. ' 29Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.4. Crop Budget per hectare for Ground Nut (with project) May 2007 Total in each Years S.N. ITEMS QT/ UNIT 5 6 7 8 9 &above 1 COST 1.1 Human Labor in PD 79 Pnce/umt 8 632 632 632 632 632 1.2 Oxen in Oxen Days 21 Pnce/umt 20 420 420 420 420 420 1.3 Seed in Kg 100 Pnce/unit 10 1000 1000 1000 1000 1000 14 DAP in Kg. 150 Pnce/umt 3.95 592 5 592.5 592 5 592.5 592.5 15 Urea 0 Pnce/umt 3.3 0 0 0 0 0 1.6 Pesticides LS Pnce/unit 400 420 441 463 486 1.7 Tools LS Pnce/unit 30 30 30 30 30 18 Sacks Pnce/umt 3 75 83 91 100 150 19 Land Tax LS Pnce/umt 35 35 35 35 35 Total Cost 3.185 3.212 3,241 3,272 3.346 2 Return 21 Yield in qt.(main) Yield in Qt (by product)) Gross Return 25 28 30 33 50 40 44 48 53 60 Price/qt Min product (ETBj 300 7 500 8,250 9 075 9.983 15,000 Bv-oroduct (ETB)___ 30 1,200 1 320 1,452 1 597 1,800 I Total Gross Retum__|______________ 8700 9^70 10,527 11,580 16,800 , liaaMBBdHiaagii Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvl Ltd " 30Aijo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.5 Crop Budget per hectare for Soya bean (with project) May 2007 ToU f In each Years S.N ITEMS QT/ UNIT 5 6 7 9 8 Aabove 1 COST 11 Human Laoor in PD 48 iPnce/umt 8 384 384 384 384 384 1.2 ,Oxen in Oxen Days 14 Price/unit 20 280 280 280 280 280 1.3 ISeed in Kg 60 IPnce/umt 5 300 300 300 300 300 1.4 DAP in Kg 50 IPrice/unit 3.95 197 5 197 5 197 5 197 5 197 5 1 5 lUrea 0 iPnce/unit 3.3 0 0 0 0 0 16 Pesticides LS Pnce/unit 240 252 265 278 292 1.7 Tools LS Pnce/unit 30 30 30 30 30 1.8 Sacks Price/unit 3 42 45 48 54 60 1.9 Land Tax LS Pnce/unit 35 35 35 35 35 Total Cost 1,509 1,524 1,539 1,558 1,578 2 Return 2.1 Yield in qt.(main) Yield in qt.(by product)) Gross Return 14 15 16 18 20 38 42 46 51 55 Price/qt Min product (ETB) 360 5 040 5.400 5 760 6 480 7.200 By-product jETB) 25 950 1 045 1 150 1,264 1,375 Total Gross Return__________ _________ 5,990 j 6,445 6,910 7,744 8,575 Water Works Design & Supervision Enterprise---------------------- bi Asiocladon with Intercontinental Consultants and Technocrats Pvt Ltd. 31Aijo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.6 Crop Budget per hectare for Potato (with project) May 2007 7 Total in each Years S.N. ITEMS QT/ UNIT 5 6 7 8 9 &above 1 COST 1 1 iHuman Labor in PD 122 iPrice/unit 8 976 976 976 976 976 1 2 Oxen in Oxen Days 12 |Pnce/unit 20 240 240 240 240 240 13 Seed in Kg 2500 Pnce/unit 1 2500 2500 2500 2500 2500 14 DAP in Kg 100 Pnce/unit 3 95 395 395 395 395 395 1.5 'Urea 200 'Pnce/unit 33 660 660 660 660 660 16 Pesticides LS Price/unit 40C 420 441 463 486 17 Toois LS Pnce/unit 30 30 30 30 30 18 'Sacks Pnce/unit 3 600 660 726 799 1050 1.9 Land Tax LS Price/unit 35 35 35 35 35 Total Cost 5.836 5,916 6,003 6,098 6,372 2 Return 2.1 Yield in qt.(main) Yield in qt (by product)) Gross Return 200 220 242 266 350 70 77 85 93 100 Price/qt Min product (ETB) 80 16,000 17 600 19360 21.296 28 000 By-product (ETB) 20 1 400 1 540 1,694 1 863 2.000 ^Total Gross Return 17,400 19,140 21,054 23,159 30,000 ' 9 2 ' Net Return (ETB) 11.564(13.224 15.051 17.062 -23u628 32Ar]o Dedessa Irrigation Project Financial and Economic Analysis Annex 1.7 Crop Budget per hectare for Onion (with project) May 2007 Total in each Years S.h 1. ITEMS UNIT 5 6 7 8 9 Aabove 1 jCOST 1 1 jLabor in Man aays 85 iPrice/umt 8 680 680 680 680 680 1.2 lOxen in Oxen Days 28 IPnce/unrt 20 560 560 560 560 560 1.3 Seed in Kg 3.5 (Pnce/unit 300 1050 1050 1050 1050 1050 14 DAP in Kg 100 Pnce/unit 3 95 395 395 395 395 395 15 Urea 100 Pnce/unit 3.3 330 330 330 330 330 16 Pesticides LS Pnce/unit 220 231 243 255 267 17 Tools —---------------------------------- Pnce/unit LS 30 30 30 30 30 18 Sacks Pnce/unit 3 300 315 331 347 510 1.9 Land Tax LS Pnce/unit 35 35 35 35 35 Total Cost 3,600 3,626 3,653 3,682 3,857 2 Return 2.1 field in qt.(main) field in qt.(by product) Sross Return 100 105 110 116 170 10 11 12 13 14 Price/qt 1 din product (ETB) 100 0,000 10 500 11 025 11.576 17.000 E 3y-product (ETB) 20 200 220 242 266 277 1 0,200 *rcBiafflHrssi otal Gross Return 1 10.720111.267) 11,842 17,277 Water Works Design & Supervision Enterprise ~ In Association with Intercontinental Consultants and Technocrats Pvt Ltd 33Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.8 Crop Budget per hectare for Sesame (with project) Total in each Years S.N. ITEMS QT/ UNIT 5 6 7 8 9 &above 1 COST 1.1 Labor in Man days 51 Price/unit 8 408 408 408 408 408 1.2 Oxen in Oxen Days 12 Pnce/unit 20 240 240 240 240 240 1.3 Seed in Kg 7 Pnce/unit 8 56 56 56 56 56 14 DAP in Kg. 0 Pnce/unit 3.95 0 0 0 0 0 15 Urea 0 Pnce/unit 3.3 0 0 0 0 0 1.6 Pesticides LS Price/unit 200 210 221 232 243 17 Tools LS Pnce/unit 30 30 30 30 30 1.8 Sacks Pnce/unit 3 15 15 18 21 24 19 Land Tax LS Price/unit 35 35 35 35 35 Total Cost 984 994 1008 1022 1036 2 Return 2.1 Yield in qt.(main) Yield in qt.(by product) Gross Return 5 5 6 7 8 35 39 42 45 47 Pnce/qt Min product (ETB) 550 2,750 2,750 3,300 3 850 4.400 By-product (ETB) 20 700 770 847 906 933 rotal Gross Return M50 3 520 4,147 4,756 5,333 Water Works Design & Supervision Enterprise--------------- In Association with Intercontinental Consultants and Technocrats PvtAjjo Dedess* Irrigation Project Financial and Economic Analysis Annex 1.9 Crop Budget per hectare for Coffee (with project) May 2007 Total in each Years S.f Iqt/ 'J.jlTEMS UNIT 5 6 7 8 9 Aabove h 1.1 ICOST (Labor in Man days 300 (Price/unit 8 12400 9o0 960 9b0 960 1.2 Oxen in Oxen Days 12 Price/unit 20 E40 0 0 0 0 1.3 ISeedlings in number ,2000 Price/unit 0.25 500 0 0 0 0 11.4 DAP in Kg. 150 IPrice/unit 13.95 592.5 592.5 592.5 592.5 592.5 1.5 Urea 150 Price/unit 3.3 495 495 495 495 1495 1.6 r----------—---------------------- Pesticides LS Price/unit 280 294 309 324 340 17 Tools LS Price/unit 30 30 30 30 30 lL8 Sacks Price/unit 31 3 0 0 30 36 1.9 Land Tax I.S Price/unit 70 70 70 70 70 T otal Cost 1.608 2.442 2,456 2,502 2,524 2 p.i ( Return field in qt.(main) field in qt.fby product) iross Return )( ) ) 10 12 ( ) ) 50 40 ’rice/qt] f 4 in product (ETB) 1800 k C ( ) 8,000 21,600 r Jy-product (ETB) 20 |0 C ( )( >00 800 ri oral Gross Return |0 c ( ) 8,600 22,400 2 j i^ Water Works Design & Supervision Enterprise 35 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Aijo Dedessa Irrigation Project Financial and Economic Analysis Annex 1.10 Crop Budget per hectare for Alfalfa (with project) May 2007 "I QT/ Total in each Years S.h I. ITEMS UNIT 5 6 7 8 9 &above LJ COST — I 11 Labor in Man days 125 Price/unit 8 1 000 250 62.5 1.2 Oxen in Oxen Days 12 Price/umt 20 0 0 240 0 0 1.3 Seed in Kg 3 Pnce/unit 500 0 0 1 500 0 0 I 1.4 DAP in Kg 50 Pnce/unit 395 0 0 198 198 198 1.5 Urea 0 Price/unit 3.3 0 0 0 0 0 I 1 6 Pesticides LS I 1.7 Price/unit 0 0 100 100 100 Tools LS n Price/unit 0 0 30 30 30 r”— 1.8 j Sacks Pnce/unit 3 0 0 0 0 0 1.9 and Tax LS D rice/unit 0 0 35 35 35 rotal Cost 0 0 3103 613 425 21 Return 2.1 fr Geld in qt.(mam) 0 0 900 960 990 Geld in qt. (by product) Sross Return 0 0 0 0 0 Price/qt It lin product (ETB) 8 0 0 7200 7680 7,920 IB y-product^ETB) 0 0 0 0 0 otal Gross Return 0 0 7,200 7,680 7,920 Net Return (ETB) ■^91 44 lKHWggflW.?3A':i u Water Works Design & Supervision Enterprise---------------------- 36 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2: Crop Budget for Economic Analysis Annex 2.1 Crop Budget per hectare for Maize (with project/ Economic) May 2007 QT/ p Tota I in eacn Years S.N ITEMS 6 78 9 Aabove 1 COST 11 Human Labor in PD Price/umt UNIT 5 56 44 1.2 Oxen in Oxen Days 12 Pnce/unrt 1.3 Seed in Kg Pnce/unrt 1 4 IDAP in Kg. Price/unit 11 25 7 68 50 3 9105 200 3.267 LS LS 246 4 132 192 195 525 2464 132 192 195 53 1.5 Urea Pnce/unrt 16 1.7 Pesticides Pnce/unrt Tools Pnce/unrt 1 8 Sacks Price/unit 1.9 iLana Tax 3 LS Price/unit Total Cost 2 Return 2.1 Yield in qt.(main) Yield m qt (by product); Gross Return 653 4 200 30 105 35 1.789 35 2464 132 192 195 525 6534 210 30 110 35 1.805 37 77 6534 221 30 116 35 1821 39 85 246 4 132 192 195 53 653.4 232 246 4 132 192 195.525 653 4 243 30 30 122 150 35 35 70 1.837 41 93 Min product (ETB) Price/qt 288 10,080 10584 11,113 11 669 By-product (ETB) 30 2.100 2,310 2 541 2.795 Total Gross Return __ 12,180 12.894 13,654 14.464 1,877 50 100 14 400 3,000 17,400 r __________________________ . 10.391-] 11,089 11.834|12.627 ■MB KM "‘A 1 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd 37Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.2 Crop Budget per hectare for Rice (with project/economic) May 2007 Total in each Years S.N ITEMS QT/ UNIT 5 6 7 8 9 Aabove 1 COST 11 Human Labor in PD 92 Price/unrt 44 404 8 404 8 404 8 404 8 404 8 12 Oxen in Oxen Days 27 Price/unit 11 297 297 297 297 297 1 3 Seed in Kg 30 Pnce/umt 6 180 180 180 180 180 1 4 DAP in Kg 50 Price/unit 3.9 195 5 195.5 195 5 195.5 195.5 1.5 lurea 200 Price/unit 3.267 653 4 653 4 6534 653.4 653 4 1 6 Pesticides LS iPnce/unit 284 298 313 329 345 1.7 Tools LS Price/unit 30 30 30 30 30 1.8 Sacks Pnce/unit 3 90 99 109 120 180 1.9 Land Tax LS Price/unrt 35 35 35 35 35 (Total Cost 2,170 2,193 2,218 2,244 2,321 2 Return 2.1 Tield in qt.(main) yield in qt.(by product)) Sross Return 30 33 36 40 60 55 61 67 73 100 Price/qt Min product (ETB) 300 9000 9,900 10,890 11 979 18,000 3y-proauct (ETB) 35 1,925 2,118 2 329 2,562 3.500 rotal Gross Return 13,2191 14,541 21,500 Net Return (ETB) ________ I 10,925 8.755 12,018 9.825 11,002|12.297 19,179 Water Works Design t Supervision Enterprise '~~ I. SnwUtta tmk lntereontla«iul ConsolUets ud TeclmKr>u LuArjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.3. Crop Budget per hectare for wheat (with project/economic) ---------------------- ---------------- ITEMS QT/ UNIT Total in each tears 5 6 7 8 9 &above 1 'COST 11 (human i abor in PD 58 |Pnce/umt 44 255.2 2552 255.2 255.2 2552 1 2 [Oxen in Oxen Days 26 (Pnce/unit 11 286 286 286 286 286 13 Seed in Kg 125 Pnce/unit 44 550 550 550 550 550 14 DAP in Kg 50 Pnce/unit 3.91 195 53 195 53 195.53 195 53 195.53 1.5 Urea 200 Pnce/unit 3 27 653 4 6534 6534 653.4 653 4 16 Pesticides LS Pnce/unit 240 252 265 278 292 1.7 Toois LS Pnce/unit 30 30 30 30 30 1.8 Sacks Pnce/unrt 3 105 110 116 122 165 1.9 Lana Tax LS Pnce/unit 35 35 35 35 35 - Total Cost 2,350 2,367 2,385 2,405 2.462 2I Return 2.1 h field m qt.(main) field in qt.(by product)) Sross Return I 35 37 39 41 55 55 61 67 73 80 ’rice/qt din product (ETB) 286 10010 10511 11 036 11.588 15,730 )y-proouct (ETB) 40 2,200 2.420 2.662 2,928 3,200 ’otai Gross Return 12,210112,931 13,698 14,516 18,930 Water Works Design & Supervision Enterprise '-------------------- In Association with Intercontinental Consultants and Technocrats Pvt LtdAi]o Dedessa Irrigation Project Financial and Economic Analysis Annex 2.4 Crop Buaget per hectare for Ground Nut (with project/economic) May 2007 Tota 1 in each Years S.N. ITEMS QT/ □NIT 5 6 7 8 9 &above 1 COST 11 Human Labor in PD 79 Pnce/unit 44 347 6 347 6 347 6 3476 347 6 12 Oxen in Oxen Days 21 Pnce/unit 11 231 231 231 231 231 13 Seed in Kg 100 Pnce/unit 11 8 1180 1180 1180 1180 1180 1.4 DAP in Kg. 150 Pnce/unit 3.91 586 58 586.58 586.58 586.58 586 58 15 Urea 0 Price/unit 3.27 0 0 0 0 0 16 Pesticides LS Pnce/unit 320 336 353 370 389 17 Toots LS Pnce/unit 30 30 30 30 30 18 SacKS Pnce/unit 3 75 83 91 100 150 19 Land Tax LS Pnce/unit 35 35 35 35 35 Total Cost 2.805 2.829 2,854 2.880 2,949 2 Return 2.1 Yield in qt.(main) Yield in qt.(by product)) Gross Return 25 28 30 33 50 40 44 48 53 60 Price/qt Min product ETB 354 8,850 9735 10709 11 779 17,700 By-product (ETBJ 30 1200 1,320 1,452 1,597 1,800 Total Gross Return 10,050 11,055 12,161 13.377 19,500 Net Return (ETB) 8,226 9.307 110,496 Water Works Design & Supervision Enterprise-------------------- 40 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.5 Crop Budget per nectare for Soya Dean (with project/economic) May 2007 ------------ 1------------------------------------------------------------------ S.N.I ITEMS QT/ UNIT 5 6 Total in each Years T----------- 7 8 9 Aabove 1 COST 1 1 Human Labor in PD 48 Price/unit 44 211 2 211.2 211.2 211.2 211 2 1 2 foxen in Oxen Days 14 Price/unit 11 154 154 154 154 154 1 3 Seed in Kg 60 Pnce/unit 59 354 354 354 354 354 1 4 DAP in Kg 50 Pnce/unit 3.91 195 53 195 53 195 53 195 53 195 53 1 5 Urea 0 Price/unit 3.3 0 0 0 0 0 1 6 Pesticides LS Pnce/unit 240 252 265 278 292 1 7 Tools LS Pnce/unit 30 30 30 30 30 1 8 Sacks Pnce/unit 3 42 45 48 54 60 1.9 Land Tax LS Pnce/unit 35 35 35 35 35 Total Cost 1,262 1,277 1,292 1,312 1,331 2 Return 2.1 Yield in qt.(main) Yield in qt (by product)) taross Return 14 15 16 18 20 38 42 46 51 55 Price/qt Min product (ETBj 424 8 5,947 6 372 6,797 7646 8.496 By-product (ETBj 25 950 1,045 1 150 1,264 1 375 Total Gross Return M97 7,417 ma 7,946 8,911 9,871 £01 41 id 4 Su|, 1 " ,,sto,1 Enterprise ConsDiunu ud Tectaoerau Pn Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.6 Crop Budget per hectare for Potato (with project/economic) May 2007 Total in each Years S.N. ITEMS QT/ UNIT 5 6 7 8 9 &above 1 COST 11 Human Labor in PD 122 iPnce/unit 4.4 536 8 536.8 536 8 536 8 536 8 1 2 Oxen in Oxen Days 12 Pnce/umt 11 132 132 132 132 132 1.3 'Seed in Kg 2500 Price/umt 15 3750 3750 3750 3750 3750 1.4 IDAP in Kg 100 IPrice/unit 3.91 391 05 391 05 391 05 391 05 391 05 1 5 lUrea 200 |Pnce/unit 3.27 653 40 65340 653 40 65340 653.40 1 6 Pesticides LS Price/umt 320 336 353 370 389 1 7 Tools LS Pnce/umt 30 30 30 30 30 18 Sacks Pnce/umt 3 600 660 726 799 1050 1.9 Land Tax LS Pnce/unit 35 35 35 35 35 Total Cost 6.448 6.524 6,607 6,697 6,967 2 Return 2.1 Yield in qt. (main) Yield in qt (by product)) Gross Return 200 220 242 266 350 70 77 85 93 100 Price/qt Min product (ETB) By-product (ETB) 120 24000 26 400 29.040 31.944 42.000 20 1 400 1 540 1694 1.863 2 000 Total Gross Return 125.400 27.940 30.734 33.807 44.000 RHII 3 CMJigSHfflL WltM w rks De l ° ’ <m& Supervision E„teniJZ;-------------------------’--------- u mm. n tamoMamui c<WUlo ua TXsocrits Pvl Lu 42Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.7 Crop Budget per hectare for Onion (with project/economic) May 2007 Total in each Years S.N. ITEMS QT/ UNIT 5 6 7 8 9 Aabove 1 COST 1 1 Labor in Man oays 85 Price/unit 44 374 374 374 374 374 ------ CTZ-------. --------- --------- Pnce/unit 1.2 Oxen in Oxen Days 28 11 308 308 308 308 308 —1--------------—-------------------- Pnce/unit 1 3 Seed in Kq 35 450 1575 1575 1575 1575 1575 1 4 DAP in Kg 100 Pnce/unit 3.91 391 05 391 05 391 05 391 05 391 05 1.5 Urea 100 Pnce/unit 3.27 326 70 326 70 326 70 326 70 326.70 1 6 iPesticides LS Pnce/unit 176 185 194 204 214 1 7 pools LS Pnce/unit 30 30 30 30 30 18 IsacKs Pnce/unit 3 300 315 331 347 510 1 9 Land Tax LS Price/unit 35 35 35 35 35 ------ 1 ----------- ----------------- - (Total Cost 3,516 3.540 3,565 3,591 3,764 2 Return 2.1 Yield in qt.(mam) Yield in qt.(by product) Gross Return 100 105 110 116 170 10 11 12 13 14 Price/qt Min product (ETB) 150 15000 15,750 16 538 17 364 25 500 By-product (ETB) 20 200 220 242 266 277 Total Gross Return 115,200 15,970 16,780 17,631 25,777 I Water Works Design & Supervision Enterprise--------------------- In Association with Intercontinental Consultants and Technocrats Pvt LtdArjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.8 Crop Budget per hectare for Sesame(with project/economic) May 2007 n -------------- Tot al in each Years S.N ITEMS QT/ UNIT 5 6 8 9 &above 1 COST 11 Laoor in Man days 51 I Pnce/unit 4.4 224 4 224 4 224 4 224 4 224 4 1.2 Oxen in Oxen Days 12 — Price/unit 11 132 132 132 132 132 1.3 Seed in Kg 7 Pnce/unrt 9 44 66 08 66 08 66 08 66 08 66 08 14 DAP in Kg 0 Price/unit 3.91 0.00 0 00 0 00 0 00 0 00 I 1 5 iurea 0 |Pnce/unrt 327 0 00 0 00 000 000 0 00 I 1 6 Pesticides LS Pnce/unit 160 168 176 185 194 1.7 Tools LS Pnce/unit 30 30 30 30 30 18 Sacks 3 nce/unrt 3 15 15 18 21 24 19 .and Tax LS F 3 rice/unit 35 35 35 35 35 1 otai Cost 662 670 682 694 706 2F tetum 2.1 V Y leid in qt.(main) ieid in qt.(by product) rows Return 5 5 6 7 8 35 39 42 45 47 Price/qt IlV in product (ETB) 649 3 245 3.245 3 894 4.543 5.192 v-product (ETB) 20 700 770 . 847 906 933 ITotal Grows Return 1,945 4 1 1,741 5,449 6,125 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Prt Ltd. 44Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 2.9 Crop Budget per hectare for Coffee (with project/economic) May 2007 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd. 45Ago Dedessa Irrigation Project Financial and Economic Analysis Annex 2.10 Crop Budget per hectare for Soya bean (with project/economic) May 2007 Total in each Years S.N. ITEMS QT/ UNIT 5 6 78 9 Sabove 1 COST 11 Labor in Man days 125 Price/unit 8 1 000 250 62 5 1 2 lOxen in Oxen Days 12 |Pnce/unn 20 0 0 240 0 0 1 3 Seed in Kg 3 IPrice/unit 500 0 0 1 500 0 0 1 4 IDAP in Kg 50 [Pnce/unrt 3.95 0 0 198 198 198 15 (Urea 0 IPrice/unit 3.3 0 0 0 0 0 1 6 IPesticioes LS iPrice/unit 0 0 100 100 100 1.7 Tools LS Pnce/unrt 0 0 30 30 30 1.8 Sacks Price/unit 3 0 0 0 0 0 19 Land Tax LS Price/unit 0 0 35 35 35 Total Cost 0 0 3103 613 425 2 Return 2.1 Yield in qt.(main; Yield in qt.(by product) Gross Return 0 0 900 960 990 0 0 0 0 0 Price/qt Min product (ETB) 8 0 0 7.200 7680 7,920 By-product (ETB) 0 0 J 0 0 0 Total Gross Return Net Return!® 0 J0 ! 7,200 7£80 7,920 0 — — 0 4.098 7.068 Water Works Design & Supervision Enterprise--------------------- 46 In Association with Intercontinental Consultants and Technocrats Pvt LtdArjo Dedessa Irrigation Project Financial and Economic Analysis Annex 3: Farm Budget Annex 3.1 Farm budget (Net Returns) for typical smallholder farmer with project to full development May 2007 Years S/n Crop 5 6 7 8 [94 above) IMaize 'Net return/ha (ETBi 5635 6 124 6,651 7.217 8.836 Crop intensity (%j 5%' 15% 30% 40% 50%] Area (ha; Roe 0 05! 0 15 0.3 0.4 OS 2886.81 2 Net return/ha (ETB) 6,632 7 547 8,555 9665 15.540 Crop intensity (%} 1% 11% 20% 45% 45%l Area (ha) 001 0 11 0.2 0 45 045j Net return (ETB) 1 3 Wheat Net return/ha (ETB) 8.489 9,143 9 842 10.587 14 564 Crop Intensity (%) 2% 10% 14% 25% 40% Area (ha; __________ 0 02 _______ 0 1, 0 14 'lcWr/V:*l 0.25 ______£4 4 Grouna nut Net return/ha (ETB) 5.516 6.358 7,286 8,307 13454 Crop Intensity (%) 2% 5% 5% 6% 10% Area (ha) Hancot Dean 0.02 0 05 005 0.06 0.1 498 44 1345.43 5 Net return/ha (ETB) 4.482 4,922 5.370 6,186 6.997 Crop Intensity (%) 2% 3% 5% 5% 6% Area (ha) — 0.02 00^ __ 0 06 6,Potato [Net return/ha (ETB, Crop I mens ty 1V564 ___ 1% 0.01 13224 ___ 2% 0 02 15,051 4%' 004 17 062 5% 23.628 ~7% Water Works Design & Supervision Enterprise 47 In Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis May 2007 Years S/n Crop 5 6 7 8 (9& above) 9lCoffee -------------------------------------------- Net return/ha (ETB) -4 608 -2,442 -2,456 16.098 19.876 Crop Intensity (%) 10% 10% 10% 10% 10% Area (ha) Alfalfa 0.1 01 0.1 01 0.1 r yZEBESl 10 Net return/ha (ETB) 4,098 7 068 7495 Crop Intensity (%) 0% 0% 6% 6% 6%l 0 0 0.06 C.06 0 06 0 P] 245.85 42405 449 7 - Area (ha) Household income per ha 463.30 3341.44 6641.83 14172.551 24327.75| Water Works Design & Supervision Enterprise 48 in association with Intercontinental Consultants and Technocrats Prt Ltd.Arjo Dedessa Irrigation Project Financial and Economic Analysis Annex 3.2 Farm budget (Net Returns) for typical smallholder farmer without project assuming existing situation to continue May 20 Years S/n Crop 5 6 7 8 (98. above) | 1 Maize I Net return/ha (ETB) 1,286 1,286 1,286 1,286 ______________ F^286 Percent of area covered 21% 21% 21% 21% 21% 0.21 0.21? n Area (ha) 0.21 0.21 0.21 Net return (ETB) 270.06 270.06 270 06 270.06 270.06 “7 2 Wheat -j d Net return/ha (ETB) 816 816] 8161 816] 8161 Percent of area covered 11% 11% 11% 11%] 11% “j Vea (ha; 0.11 011 0.111 o.nT 0111 d Net return (ETB) 89.76 89.76 89.76] 89.76] 89.76? 3 Barley________________ Net retum/ha (ETB, Percent of area covered Area (ha)______________ Net return (ETB)________ 4 Teff Net return/ha (ETB) _ Percent of area covereq Area (ha) Net return (ETB) 5 Finger millet___________ Net retum/ha (ETB) _ Percent of area covered Area (ha) (Net return (ETB) 6 Field peas____________ Net return/ha (ETB) _ Percent of area covered Area (ha) Net return (ETB) xNig_e_r_seea___ Net return/ha (ETB) Percent of area covered Ar—(ha) Netreturn_[ETB)_______ 8|Potato Net return/ha (ETB Percent of area covered Net return (ETB Housenoid Income per ha 42.901 1,918 1% 42 90| 42_90 1118 1.918! 19.18 511.33 511.33 Water Works Design & Supervision Enterprise--------------- 49 [n Association with Intercontinental Consultants and Technocrats Pvt Ltd.Arjo Dedem Irrigation Project Financial and EconomicAnalysls Annex 4.1 YEAR WISE ESTIMATION OF COST EXPENDITURE May 2007 N ITEMS TOTAL COST EXPENDITURE Pre construction Construction phase O&M phase 1 C apital cost Yeat 1st year 2nd year 3rd year 4th year Sth year 6th year 7th year 8th year 1.1 A- preliminary 3,740,772 1496300 1870360 374062 0 0 0 0 0 0 1.2 B Rehabilitation 133800000 6690000 40140000 53520000 33450000 0 0 0 0 0 13 K buildings 12680000 1902000 5072000 5072000 634000 0 0 0 0 0 1.4 R-communication 72000000 7200000 21600000 21600OO0 2I6OOOOO 0 0 0 0 0 1.5 X- Environment 178000 0 44500 44500 44500 44500 0 0 0 0 1.6 Dam construction except item 1.1 • 1.6 318482288 0 47,772.343 79,620.572 79.620,572 95.544.686 15.924.16 0 0 0 1.7 Canal construction 454958139 0 45,495,814 113,739,535 136,487.44? 136,487,442 22,747,907 0 0 0 Total capital cost 995,839,199 17,288,300 161,995,017 273,970,660 271.836.514 232,076,628 38,672,071 0 0 0 I DAM cost 5854500 0 0 0 0 0 525000 1230000 2049750 2049750 □ Irand total 1,001,693,699 17,288,300 161,995,017 273,970,669 271,836,514 232,076,628 39,197,071 l T,23O,OO6 2,049,750 2049750 Water Works Design & Supervision Enterprise In Association with Intercontinental Consultants and Technocrats Pvt Ltd 50Date Due MW AUTHOR TITLE ~~~~~~ call no. EDITION VOLUME CAcc. NO.
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