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THE PROVISIONAL MILITARY GOVERNMENT OF SOCIALIST ETHIOPIA
RELIEF AND REHABILITATION COMMISSION
LOWER D9DESSA
Large-scale Rainfed Settlement Project
PROJECT BRIEF
UNDP/FAO PROJECT ETH/75/025 ASSISTANCE TO SETTLEMENT JUNE 1980
111DRAFT
This report should not be reproduced quoted or cited in any form. It is
for the exclusive use of the recipi entsTABLE OF CONTENTS
COUNTRY DATA
x
PROJECT LOCATION HAP
3
1. 
SUMMARY AND CONCLUSION
4
2. 
INTRODUCTION
6
3. 
BACKGROUND
9
4. 
PROJECT AIMS AND OBJECTIVES
12
5. 
THE PROPOSED PROJECT
12
6. 
PROJECT COMPONENTS
13
7. 
COST ESTIMATES
15
8  . 
PROJECT BENEFITS AND JUSTIFICATION
16
9  . 
ISSUES OUTSTANDING
16
APPENDIX - 1 : SUMMARY OF PROJECT COST
18-1-
1. Area 
2. Population
COUNTRY DATA
:        1,220,000 square kilometers :     30,000,000 (1979 estimate)
Growth Rate
3. Official Language
:     2.5 percent Urban 10 percent
Rural 90 percent
:    Amharic
4. Adult Literacy rate :                     11%: 9% male, 2% female
5. Government Structure:
(a)      Provisional Military Administrative Council
(PMAC)
(b)     Council of Ministers of Provisional Military Administrative Council
(c)         National    Revolutionary    Development    Campaign (NRDC)   and   Central   Planning   Supreme   Council (CPSC)
(d)     Ministries and Commissions
6.     GDP 1976/77 (Current Market Prices) Birr 6,826.3
(US$3,297.7) millions
7.     GDP per Capita 1976/77: Birr 227.5 (US$1O9.9)
8.     Real GDP Growth Rate at 1960/61 Prices:                   0.9% (1972/73 - 1976/77)
9.     Sectional Distribution of GDP 1975/76 %
Agriculture 48.5
Manufacturing 
4.1
Buildings          and          Construction          4.9
Handicrafts and Small-Scale
Industries
4,6
Wholesale and Retail Trade 8.9 Transport and Communications 6.6 Other 22.4
Total
100.00-2-
10.       Foreign Trade (1978)
Export
(Birr 1000)
Import
Products
(Birr 1000)
Products
a.     Coffee
502,298
Machinery &
Motor vehicles
300,274
b.      Hides
& skins
66,262
Chemicals
108,040
c.      Pulses
17,303
Textiles
100,693
d.      Oil seeds
12,245
Metals and
metal Manufac turing • .
64,885
e.      Oilseed
cake
Electrical
3,901
material
63,901
f.       Other
30,314
Other
304,939
<  Total
632,323
Total'
.
942,732
(US$305,470,000)
(US$455,426,000)
iLOWER PlDESSA RAINFED SETTLEMENT PROJECT
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SnWARY AND CONCLUSION
1.1                   The problem of over-population in the highlands
of Ethiopia along with the frequent occurrences of droughts and the degradation of land due to wide
spread erosion has caused high food deficits, extreme poverty and even loss of lives to a large number
people especially in the Wollo and Tigre Administra
tive Regions. In order to find a permanent solution
to the prohlenr of drought and over-population, the second National Revolutionary Development Campaign gives much emphasis to the proper development of
under-utilized land for settling adversely affected
people.
1.2                   Lower Didessa Valley in the Wollega Administra tive Region has been little utilized for agricultural purposes and the preliminary steps were taken by
Relief and Rehabilitation Coamission in 1975 firstly
by contracting a new airphoto coverage for the area and then contracting the soil survey investigations. Positive results were obtained in all the
and in August 1978, the Permanent Secretary of the Ministry of Agriculture directed the former Settlement Authority with the assistance of the UNDP/FAO Project ETH/75/025, to prepare a project proposal for Lower Didessa Valley to settle the people from worst affect ed areas and provide them with a stable livelihood based on agriculture and related industries. Based on detail land capability study* 60,000 ha. was allocated
for rainfed mechanized/draught animal farming by aettl- ing 15,000 farm-families who are unable meet their
* Sogreah, December 19781.3
-5-
subsistence recrements due to natural calamities coupled with very land; .an ratio and largeiy
Hvlng on the relief food supplied by the Government through the Belief and Rehabilitation Commission.
Settlement structure will be in line with the policy of Relief and Rehabilitation Commission so that 500 farm families will be grouped together as a settlement unit. Hence there will be 30 settlement units in the whole project each with all weather
road access, water supply and essential services such as education human and animal health, extension, supply of farm inputs and consumer goods, marketing
of farm produces
landuse plan for
for 50 ha. to be
and   other  mechinery        services.        The
each unit
allocated
of     500     families     provides for individual household
plots, 1000 ha. for co-operative crop production, up to 500 ha. for co-operative grazing, 135 ha for co operative woodlots and also areas for roads, soil conservation grass strips and forest reserves.
Relief and Rehabilitation Comnission (RRC) will be the Government Agency responsible for the imple mentation and management of the project until the time the settlers take over fully through their own associations the complete management of their settle ment units, in order facilitate close administra
tion RRC will appoint an organization which is physi- located 1. the project „ea Md bavIng hlg|J
egree of autonomy with a Project Manager as the will 6XeCUtiVe- Slices of the project organization levels Pr°Vlded both at Project centre and unit centre-6-
The Project will be implemented over a period
of five years and the estimated total cost is
US$44.7 million. At the end of the fifth year 15,000 families will have been settled on 60,000 ha. of land
and will be involved in self-sustaining agricultural production increasing their net per capita income to nearly US$150. Settlement will have been possible due to the elimination of human and animal diseases which now tend to make the areas inhabitable. Surplus pro duction will be able to reach markets via the newly constructed road system which connects the project area to all weather roads.
1.6                  The ultimate beneficiary of the project will be the small fanners organized into producer co-operatives each comprising of 500 farm families. Positive effects on the beneficiaries will include enjoyment of a higher quality of life, entrance into the cash economy from
a subsistence level, an income well above the average small farmers in Ethiopia and the participation in so cial and political decission making at the basic or grass root level of Ethiopian Government .
INTRODUCTION
2.1
Availability of potential agricultural lands in
the Lower Didessa Valley had been observed from the production performances of few small scale settlement
•bile drought and soli erosion eonpled with over-popu lation In the high lands pushed down the traditional
armers well below the poverty line and frequently to deaths. Hence in 1977, Relief and Rehabilitation Con- mlssion contracted Messrs SOGHEAH consultants to under-7-
,.„d evaluation study of the Lower Dldessa take tbelau reconnendatioDS for its development,
’aney and "
study o„ April 1979 and
eX‘‘d‘tbe        suitability        for        raiufed        mechanized        or
draught animal cultivation of more
0{
 the Lower Didessa area. Due to
development programmes in the area,
than 100,000 ha.
other agricultural
the former Settle-
nent Authority had set aside 60,000 ha for a five
year programme to settle 15,000 families and the UNDP/FAO Project ETH/75/025 is assisting in the pre paration of this project for international
financing
and   to   serve   as   a   model   for   replication   in
areas.
2.2  The Project ETH/75/025 with Investment Center Mission prepared the working documents (formats) to be used as annexes for the feasibility study. Relief
comparable
and Rehabilitation Commission staff and the UNDP/FAO Project team collected the needed informations and presented in eleven annexes as listed below:
( ) Background informations
a
Annex 1: Institutions Concerned with Agri cultural Development and Settlement
Annex 2: Government Policies and Programmes (b)  fooJect propoasajg
^nex 3: Land Use Proposals
Agricultural Development forestry and Soil Conservation
nnex 6- Agricultural MechanizationAnnex 7:
Annex 8:
Annex 9:
Supplement to
-8-
Veterinary        Services        and        Tsetse
Control
Education and Health
Project         Access         roads,         Buildings and Water Supplies
Annex 9:     Group Water Supply
Annex 10: Extension, Training and Demonstra
tion
Annex 11: Marketing, Credit and Input Supplies Supplement to
Annex 1-11: Organization and Management Main report is in the process of preparation and
will be completed in two weeks. Essential elements are summarized in this Project Brief to supplement the
annexes.-9-
3.      BACKGROUND
Ethiopia, one of the World's poorest countries, has a population of about 30 million, 90 percent of whom are rural. 85 percent of the people live in the central and northern plateau most of which lie above an elevation of 2,000 meters. The majority of the
rural population live on small rainfed farms which
are barely able to meet their subsistence require ments. It is estimated that 46 percent of the popu lation live on farms of less than 0.5 hectare. Popu lation density coupled with traditional farming methods and over-grazing by livestock in these areas have resulted in severe soil erosion and land degra dation. Some five million hectares are threatened
with damage beyond rehabilitation. This will result
in a serious decline in the already inadequate food supply and make the country increasingly dependent on aid and commercial food imports. In addition, periodic droughts and pest attacks in the most sus ceptible areas of Wollo and Tigrai Administrative Regions aggravate the situation and widespread famines have occurred in two of the last six years causing death to over 100,000 inhabitants. Nevertheless,
there are vast areas at lower attitudes located mostly in the south and west of the country, where soils
and climate would permit satisfactory rainfed produc tion. These areas have, hitherto, been sparsely popu lated due to the prevalence of human and animal diseases, particularly malaria and trypanosomiasis.
3.2                  Since the 1974 revolution, the Government of
Socialist Ethiopia has embarked on programmes aimed-10-
at improving the living conditions of the broad
masses and the rural poor in particular. These pro grammes include increased food production campaigns, reduction of unemployment, income redistribution and rehabilitation of degradated land. Settlement of
people from the drought prone, densely populated
rural and urban areas in underutilized area, has be
come one of the major strategies of achieving the Government development objectives. In 1976, the Settlement Authority was therefore established as part
of the Land Reform Proclamation, to implement the settlement programme. In 1979, the Settlement Autho rity was merged with the then Relief and Rehabilitation Commission. This, apart from according the Settlement programme an Increased status in the Government machinery under a Coanissioner, was intended to con solidate the agencies dealing with settlement and land rehabilitation.
3.3                Because of the importance and urgent need for settlement of the most affected population, the second National Revolutionary Development Campaign, launched during the last Central Planning and Development Supreme Congress, gives much emphasis on the develop ment of large-scale settlements. 28,500 families will be settled in ten new sites during the 1972 EC (1979/80) Fiscal Year. In addition, 13,000 families, who are
going to be displaced as a result of other development projects will be resettled by the Government. Further more, existing projects, involving 33,259 families, will
be assisted and improved before they become self-reliant. Settlement targets during the next few years are to be 10,000 families annually.-11-
The settlement programme during 1972 EC (1979/ 80) Fiscal Year is estimated to cost the Government
a total of 75,404,221 EB. Of this, the Government
has managed to raise 26,823,126 EB out of the regular budgetary provisions. It is clear that the balance
of 48,581,095 EB will have to be raised from other sources. The Government is, therefore, soliciting international support for assistance to implement
its settlement programme. The European Economic Community;(EEC) has already pledged about 10 million EB towards this amount. The World Food Programme has also given an indication to provide food for work
in settlement projects to the value of 20 million US dollars during a period of four years. The Swedish Government, through SIDA have also indicated a will ingness to give budgetary support in the rehabili tation activities of Government. Finally, the US Government has pledged 2 m US dollars to assist in the development of livestock in the Bale rehabili tation project.
The absence of feasibility studies is making it difficult for Government to seek international finan cial assistances. This has prompted the Government to request for the preparation of the Lower Didessa Large Scale Rainfed Settlement Project with a view to obtain international finance and make it a model for further settlement projects.
Please see Annexes 1 and 2 for details.-12-
4.     PROJECT AIMS AND OBJECTIVES
The major aims of the Project would be:
a. 
to assist in alleviating hardship in over popu
lated drought prone regions, along with programmes
for rehabilitation of such areas.
b. 
to capitalize on the hitherto un exploited poten tial of the country’s vast unoccupied areas.
c. 
to establish a comprehensive and self-sustaining
settlement model which can be replicated in other
areas with modification as deemed necessary.
d.           to     achieve     a     more     equitable     distribution     of     income, to      improve      employment      opportunities      and      to      increase food production.
5.     THE PROPOSED PROJECT
5.1                  The project which would be implemented over a period of five years would settle 15,000 families on
an area of 60,000 ha. The area to be settled lies
in the Lower Didessa Valley—of Wollega Administra tive Region contiguous with other settlements for
10,000 families and also contiguous with over 25,000
ha under development by the State Farm Corporation for large scale food crop production.
The settlement design, in keeping with Relief and Settlement Commission policy, would consist of 30 units for 500 families each with road access, essential services such as education, health, extension, market ing, credit and mechanical services.
The land use plan for each unit of 500 families provides for 50 ha to be allocated for individual household plots, 1,000 ha for cooperative (collective)-13-
annual crop production, up to 500 ha for cooperative grazing 135 ha forcooperative woodlots and areas for roads, soil conservation grass strips and forest re
serves .
5.4                  The settlers would be provided with access to
water but each will construct their own dwelling
houses from local materials and develop their house
hold plots utilizing family labour. Development of
the co-operative crop area for each unit would con
sist of hand clearing followed by tractor ploughing
during the first three to five years. Maximum use
would be made of hand labour and oxen would be intro duced for cultivation as soon as conditions permit. Cropping patterns eventually to be decided by the
Settlers Co-operatives would concentrate on food
crops.
6.    PROJECT COMPONENTS
Main components of the project                will be as follows: (a)     Agricultural Development
The project would provide for the establishement of 15,000 individual household plots each of extent 1000 nr for the fruit, vegetable and small scale poultry production. Sbout 30,000 ha would be cleared and developed by 30 co-operative associations for annual crop production. Major investment items of the co-operative would entail co-operative storage, dwell ings, co-operative shop, workshop facilities, eight tractor with equipments for each unit and the cost of initial land cleaning (see annexes 3 and 4).(b)     Forestry and Soil Conservation
Development of each unit would:also entail introduction of soil conservation measures Including access tracks and establlshement of communal wood lots of about 135 ha per unit to satisfy the future fuel and building pole demand (see Annex - 5).
(c)     Water Supply
Domestic water demand of the settlers will be met by supplying water from surface water sources through a group water supply system (see Annex - 9).
(d)     Roads
Unit centers will have all weather access to the project centre either directly or indirectly through adjoining units. These primary roads whose total
. I.
length is about 200 kms. would provide adequate access for farm machinery project transport, heavy vehicles for public transport and crop extraction lorries with- ing thq. project area throughout the year. (See Annex-
9).
(e)  Education andHealth
Establishment and operation of a school at each unit would ensure education opportunities for each child at primary level. Bealth services provided
would ensure the necessary safeguards against and treatment for the important diseases in the area.
(See Annex - 8).
f                Veterinary and Tsetse Control Services
Adequate veterinary and Tsetse Control services will be provided in xhe area to control all the live stock diseases. (See Annex -7).
()-15-
(g)       Extension Services
The project would provide agricultural exten sion services consisting of subject mater specialists and extension specialists at project centre level with their assistants at unit centres (see Annex-10).
(h)
Administrative Services
RRC will appoint a project organization located
in the project area for the purpose of implementation
and management of the project until the time the
settlers take over fully the complete management of
the project. Services of the project organization
will be provided at project centre and unit centre
levels. (See the supplement on Organization and
Management).
(i)
Monitoring Services and Investigations
The project would include provision of a service
for monitoring and evaluation of project implementation
and make necessary arrangements for other investi gations .
7.     COST ESTIMATES
Total project cost during the first five years is estimated at US$44,690,000. Of this amount about 30% would be for agricultural development, 19% for water supply, 12% for road, 11% for education and health and
the balance for other services. It is assumed that settlers’
food will be given from World Food Programme and hence the food cost has not been included in the total project cost.
Break-down of total project cost is given in the appendix-
1.-16-
8, project benefits and justification
The project would assist in the settlement of 15,000 families from some of the most vunerable drought affected
areas. Besides providing these families ^1 th an income equivalent to about US$725 annually it would relieve pre
ssure and arrest the degradation of resources in their
areas of origin. In establishing a self-sustaining system
for rainfed settlement the project would also provide a
model for future replication and would produce land capa-
bility data for future development sites.
9. ISSUES OUTSTANDING
9.1      Animal Husbandry
At the present stage it was not possible to anti cipate with sufficient precision the possible speed of
the tse-tse eradication in the project area. Con sequently, the project does not have large scale animal husbandry component except for small poultry element. It is however likely that between year five and ten of
the project life a sufficient degree of tse-tse era
dication could be achetved to allow for gradual intro duction of livestock. This would then provide for
an expanded economic activities of settlers and their cooperatives as well as for a more diversified source
of income. At the. same time it will provide for ad ditional employment opportunities both for original labour force and for labour force resulting from natural growth of settlement population.
9.2   Water Supply
Data on water resources of the area are scarce and particularly there are little data on available ground water. Consequently, the design of water supply-17-
system Is based on reliable surface water sources only, resulting in relatively higher costs. How
ever, it is likely that additional investigations
on ground water resources would provide a base for design of less expensive water supply system re sulting in substantial savings on both investment and operational costs.
J-18
APPENDIX - 1 SUMMARY OF PROJECT COSTS
1
(For the first five years in OCX)  Eth. Birr)
Project Conponent
Agricultural Development
Co-operative Farm
Ibtal Cost Foreign Exchange Local Cost
Capital
Operating Expenses
21,305
3,365
15,552
2,019
5,753
1,346
Hcmestead
Capital
Operating Expenses
1,170
1,490
—
60
1,170
1,430
Forestry Development
Capital
Recurrent
350
897
300
8
50
889
Soil Conservation
Capital
Recurrent
698
238
505
188
193
50
Veterinary
Capital
Recurrent
Tsetse Control
189
690
618
1,370
68
132
618
294
121
558
Capital
Recurrent
Education
1,076
Capital
Recurrent
Health
6,166
789
1,776
876
46
Capital
Recurrent
Water Supply
108
333
6,120
789
1,668
543
Capital
Recurrent
16,799
704
9,645 •
293
7,154
411SUMMARY OF PROJECT COST (CONTINUED! (For the first five years in OOP' Eth. Birr)
Project Ccnponent
Total Cost
Foreign Exchange
Local Cast
Road
Capital
3,927
3,495
432
Recurrent
7,255
3,628
3,627
Extension & Training
Capital
3,187
710
2,477
Recurrent
2,331
813
1,518
Marketing
Capital
829
20
809
Recurrent
2,932
2,462
470
Administration
Units
Capital
2,626
645
1,981
Recurrent
5,018
900
4,118
Project Centre
Capital
1,685
Recurrent
1,214
471
3,230
1,455
1,775
Total Project Cost
92,510
45,511
46,999
Total Project Cost = 92,510,000 Eth. Birr
= 44,690,000 US$ Total Foreign Exchangee 45,511,000 Eth. Birr
= 21,985,930 US$ Total Local Cost » 46,999,000 Eth. Birr
= 22,704,830 US$ Percentage of Foreign Exhange = 50
RJESERVED

Summery

Lower Didessa Rainfed Settlement Project Summary

Lower Didessa Rainfed Settlement Project

Project Overview

The Lower Didessa Rainfed Settlement Project was a large-scale agricultural development initiative in Ethiopia, proposed in June 1980 by the Provisional Military Government of Socialist Ethiopia's Relief and Rehabilitation Commission (RRC) with assistance from UNDP/FAO Project ETH/75/025.

            Key Objectives
            Alleviate hardship in overpopulated, drought-prone regions
Capitalize on Ethiopia's underutilized agricultural potential
Create a replicable model for self-sustaining settlements
Improve income distribution, employment opportunities, and food production

        

Country Context

Ethiopia in 1979 had:

Population: 30 million (90% rural)
GDP per capita: $109.9
Agriculture accounted for 48.5% of GDP
Severe soil erosion and land degradation in highland areas
Recurrent droughts causing famines (100,000+ deaths in recent years)

Project Details

Location

Lower Didessa Valley in Wollega Administrative Region - 60,000 hectares allocated for settlement.

Settlement Structure

15,000 farm families to be settled (500 families per unit × 30 units)
Each unit would have:
- 50 ha for individual household plots
- 1,000 ha for cooperative crop production
- 500 ha for cooperative grazing
- 135 ha for cooperative woodlots

Implementation

5-year implementation period
Relief and Rehabilitation Commission (RRC) as implementing agency
Project organization with local autonomy and Project Manager

Project Components

Component	Description
Agricultural Development	Individual household plots and cooperative farming areas
Forestry & Soil Conservation	Woodlots and erosion control measures
Water Supply	Surface water systems for domestic use
Roads	200 km of all-weather roads
Education & Health	Primary schools and health services in each unit
Veterinary Services	Disease control including tsetse fly eradication

Financial Information

Total Project Cost: US$44.7 million (92.51 million Ethiopian Birr)

Cost Breakdown:

Agricultural Development: 30%
Water Supply: 19%
Roads: 12%
Education & Health: 11%
Other Services: 28%

Expected Benefits

Resettlement of vulnerable populations from drought-prone areas
Annual income of ~$725 per family (above national average)
Reduced pressure on degraded highland areas
Creation of a replicable settlement model
Increased food production

Challenges

Uncertainty about tsetse fly eradication timeline affecting livestock introduction
Limited groundwater data leading to potentially higher water supply costs
Need for international financing to cover 52% of project costs