DOM=t of

The World Bank

FOR OFMCAL USE ONLY

Report No. P-6229-EC

REPORT AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIYVALENT TO US$20.0 MILLION

TO THE

REPUBLIC OF ECUADOR

FOR AN

IRRIGATION SUBSECTOR

TECHNICAL ASSISTANCE PROJECT

APRIL 19, 1994

MICROGRAPHICS

Report No: P- 6229 ECType: PR

This document bas a resticted distibuton and may be _d by reipiens ost the ofonmatce oftbeir offici duties. Its contnts may not otherwise be dicdoed widout Wodd Bank autodrization.

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,CURRECY QnAEI

Currency Unit - Sucre (S/.)

E3XCHANGE RtAIM('as of August 31, 1993)

US$1.00 = S/.1,948

January 1 to December 31

WEGT tS AND oBAS oute

The metdc syst:n has been used tbroughout the zeport.

FOR OFFICIAL USE ONLY

ABBREVIATIONS AND ACRONYM

CAS Country Assistance StraCEDEGE Commission for the Development of the Oua River Basin

(Comisi6n de Estudios par el Desarrollo de la Cuec del Rio Guayas)CIES (Central Irrigation Execudve Secetaia)CNRH National Commission for Water Resoumes

(Comisi6n Nacional de Recursos HEdricos)CONADE National Development Commision

(Comisi6n Nacional de Desarrollo)CONAMA National Commission for the Environment

(Comisi6n Nacional de Medio Ambiente)CPO Provincial Council of El Oro

(Consejo Provincial de El Oro)CREA Center for the Economic T on of Azuay, Cdar and Morona

(Centro para la Reconvsin Econmica del Azuay, Cadar y Morona)C2M Corporation for the Rehabilitation of Manabi

(Corporaci6n para la Rehabilitaci6n de Manabi)ETA Environmental Impllat Att

(Evaluacidn de Impacto Ambienhl)ICB International Competitive Biddirg1DB Inter-American Development BankIDEA Institut for Agriculral Strtegies

(Institub de Estrategias Agopeuarias)INAMHI National Institute of Meteorology and Hydrology

(Institub Nacional de Metereologia e Hidologi)INEFAN Ecuadorian Institute for Forestry and Natuwal Reservne

(Institub Ecuatoriano Forestal y de Areas Naturales)INERHI Ecuadorian Institute of Water Resouves

(Institute Ecuatoriano de Rexuwos Hidrulicos)LCB Local Competitive BiddingLIB Limited International BiddingMAO Ministry of Agriculture and Livestock

(Ministerio de Agriculture y Ganaderfa)NGO Non-Governmental OranizationO&M Operation and MainlenancePAT Technical Assistance Project

(Proyecto de Asistencia TVcnica)POA Annual Workplan

(Plan Opeativo Anual)PREDESUR Regional Program for the Devopment of Southem Ecuador

(Progtama de Desarrollo Regional del Sur de Ecuador)SENDA National Secretariat for Administraive Development

(Secretara de Estado de Normninicidn y Desarrollo Adminis ivo)SOB Statement of ExpendituresTA Technical AssistanceTOR Terms of ReferenceUEP Project Executing Unit

(Unidad Ejecutora del Ptoyecto)

Tbi document has a restricted distribution and may be used by redpiets only in the perforallee of their officialduties Its contents may not otherwise be disclosed without World Bank authorization.

TADLQNIDA3GAT-ION SUBSFdm TECHNICAL ASSISIANCE: EM=

T,<) CONTM

Ea No.

BcgUround ad Ka Irrigation Issues ...... ............................... 1Institutional Framework ............................... 2Constraints to Irrigation Development ...................... 2Goverment Iigation Development Sttegy ..................eop n 3Rationale for Bank Involvement .......................... 3Lessons Learned fom Previous Operations ............ 4

Ite Project ............................................. SStrategy and Rationale ........................ 5Project Objectives and Description ...................... 5 Public Institutional Strengthening and Reform ...... ........... 6Private Sector Development ............................ 7Public Sector Irrigation Investment Plan .......... ........... 7Project Management and Implementation ........... ......... 8Reporting, Supervision and Evaluation .......... ............ 9Costs and Financing .............................. 10Procurement ............................ 10Disbursement, Accounts and Audits ...... ................ 11Environmental Aspects ............................. 12Poverty Alleviation . .............................. 12Project Perfbrmance and Sustainability ..... ................ 13Benefits and Risks .......... .................... 13Agreed Actions ............................. 14Recommendation ............................ . . 16

Tiis Report vs prepawd on the bais of an appmisl mission that vWised Ecuador in Decembr 1993. The missionva comppdsed of Michael Carnli Icsk Manager, LA4AP) and Dvid kola ELGLA). It is also based oncontributions made during the prepartion proce by Steven Schonbeer, Anna Roumani, Plorencia Casbo-Leal,Andrde Abmmovich and Gum"n Gawcfa-Rivero (LA4AP), Edgudo FlOtD (PAOICP), Moris Whtalhr (Consultant),and Pblo Anguita, Alvao d; Pobtul and Michael Raazynsli (Consultas, PAO/CP). Peter Wttenberg (LA4AP)assistd in the preparation of the procurement and disbuenent sections. Ms. Corina Bermudez was responsible forthe production of this report. Peer revieaa wem Alain Ibbelem (LATPS) and Hyke Lae endecker (EClAG), whileGeore Ledoc Richard Huber (LATEN) and Pernando Manibog (LA4DR) rviewad enomentl aspects of theproject Mark Wilson is Managing Division Chief (LA4AP), Stefan Albew is Project Advisor, and Ping-Cheug Lohis the Department Director (LA4).

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lhble of Contents (Continued)

Schedule A: Project Cost Summary and Financing PlanSchedule B: Procurement Methods and DisbursementsSchedule C: Tlme Mhble of Key Processing EventsSchedule D: Status of Bank Group Operations

Annex 1: Institutional ReorganizonAnnex 2: Detailed Cost ThblesAnnDx 3: lTrms of RefereceAnnex 4: Implementation ScheduleAnnex 5: Perforance IndicatorsAnnexc 6: Supervision PlanAnnex 7: List of Documents in Project Files

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ItRIGATION SUBSECIOR TEHNCAL ASSISANCEi ELQDC

LOAN AND ELRO. SUMR

Borrower The Republic of Ecuador

Beneficiarie: MAG, CONADE, INERHM , CEDEGE, CRM, CREA, andPREDESUR

LoaLAmnmA : US$20.0 million equivalent. Retroactive financing up to amaximum equivalent of US$1.0 million is proposed.

emns: Repayable in 20 years, including 5 yas of grace, at fteBanies standard variable interest e.

inancinf Plan: US$ milion

Govemment 5.5IBRD AQIbtal 25.5

Economic Rate of Retumn: Not applicable

Bum Categoy: Progam of lTrgeted Interventions

EMdMnmental R&M: B

REPORT AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSIRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN

TO THE REPUBLIC OF ECUADORFOR AN

IRRIGATIO SUBSECrR TELUL ASSEMACE POJEC

1. I submit for your approval the following report and recommendation on a proposedloan to the Republic of Ecuador for the equivalent of US$20.0 million on standard IBRDterms with a maturity of 20 years, including a 5-year grace period, to help finance anIrrigation Subsector Technical Assistance Project.

Baround and KeW rrigation Issues

2. Over the last tw decades, Ecuador's development strategy has relied on oil revenuesand significant Government intervention in the economy. In the 1980s, however, decliningpetroleum revenues and reduced external financing strained this strategy. After sporadic andlargely unsustained attempts at stabilization and adjustment, Ecuador is now embarking on amore fundamental structural reform process. Tne current administration took office inAugust 1992 in the midst of difficult economic conditions, with an electorai mandate to shiftto a development strategy based on a streamlined and more efficient public sector, andgreater reliance on private market forces as the engine of growth. The new Administrationimplemented immediately a strong stabilization package, and announced the liroad outlines ofa medium-term reform program.

3. Some important measures have already been taken: Congress has approved a BudgetLw, that will greatly increase fiscal control, and a comprehensive Modernization of theState Law, that would provide the legal basis for privatization, public sector reform anddecentralization. Additionaly, the Government has also accelerated trade and financialmarket liberalization and streamlined foreign investment regulations. The major chaUl ,eswill be to reduce and reform an overdimensioned and ineffective public sector, create theenvironment for increased investment and productivity, ease Ecuador's high external debtburden and address pervasive poverty. The progress achieved to date and the agenda for theon-going reforms are fully documented in the Country Strategy Paper.,

4. Ecuador's agriculture is by far the dominant sector in the country and it continues tohave significant growth potential. In 1992, agriculture accounted for about 18 percent ofGDP, 25 percent of foreign exchange earnings, and 35 percent of formal and the bulk ofinformal employment. Government plans major reforms and development of the agriculturalsector which will significantly impact both growth and poverty alleviation. Past agriculturalsector growth has resulted predominantly from expansion of the area planted, whileproductivity improvements have been very low, or even negative (e.g. bananas). In someareas, the conversic. of land to agriculture has also creatad potential ecological concerns.

1. See ECUADOR: County Strat Pape, LAC Deartment IV - Country OpemionB, June 17, 1993.

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5. In terms of the agricultural resource base, Ecuador is divided into two distinct areas:the highlands and the coast. The highlands (the Sierra) are characterized by small-scale,traditional farms primarily dedicated to fobd crops (potatoes, vegetables, temperate fruits,and wheat) and livestock (cattle and sheep) production. In contrast, the coastal plains (theCosta) are comprised largely of medium and large-scale commercial farms where the mainagricultural products are bananas, cacao, sugarcane, rice and shrimp.

6. Ecuador is endowed with abundant water resources, with 84 river basins, the majorityflowing into the Pacific Ocean, which discharge 300-500 billion cubic meters per annum.Irrigated agriculture is the largest user of water, accounting for over 80% of the country'stotal annual consumption. Actual annual irrigatd land ranges between 420,000 and 530,000hectares, of which approximately 120,000 hectares are irrigated by public infrastructure.Government funding for irrigation projects has lacked a consistent development strategy andan adequate normative framework to define priorities for investments at the national level.Resource use efficiency is low, both in terms of infrastructure desigr., construction,management, and operation and maintenance (O&M), as well as in water resourcemanagement itself. Protracted construction schedules are common, currently resulting inover 30 unfinished irrigation schemes. Water distribution is inefficient in most publicirrigation systems, which combined with the absence of complementary infrastructure, basicsupport and extension result in the very low impact that irrigation has had on agricultumalproductivity. Furthermore, most of the existing public irrigation projects have been heavilysubsidized and inadequate funding has constrained completion and maintenance of schemes.

7. _m1httioiaLhmwrk. In addition to the Ministry of Agriculture (MAG) and thePlanning Secretariat of the National Development Commission (CONADE), five key publicinstitutions are involved in irrigation in Ecuador. The Ecuadorian Institute for WaterResources (INERHI) has a nation-wide mandate, and the largely unfulfilled responsibility ofenforcing the 1972 Water Law. The other four institutions are semi-autonomous regionalagencies: (a) Commission for the Development of the Guiyas River Basin (CEDEGE); 0b)Center for the Economic Transformation of Azuay, Cafiar y Morona (CREA); (c)Corporation for the Rehabilitation of Manabf (CRM); and (d) Regional Program for theDevelopment of Southern Ecuador (PREDESUR). In addition, some irrigation projects areoperated by provincial or municipal institutions, of which the Provincial Council of El Oro(CPO) is the most important in terms of irrigated area. The present institutional arrangementis entangled in an enornous dispersion of functions and responsibilities, a lack of a coherentstrategy, and considerable overlapping and competition for the allocation of funds forirrigation. As a result, major problems exist with respect to general institutional morle,service quality, equipment obsolescence, and poorly trained personnel.

8. Constraints to Irrigation Development. Despite its disproportionate share of thepublic agricultual sector budget (over 60% in 1992), public sector irrigation in Ecuador isnot functioning well. The basic problem with the Government's involvement in the sectorhas been the lack of a clear subsectoral strategy. The process to identify, design anddetermine the technical and economic feasibility of irrigation projects is deficient.Therefore, many of the existing projeca have been selected on the basis of politicalconsiderations and constructed with inadequate or incomplete designs. No priority has beengiven to the completion of irrigation systems under construction or to the rehabilitation of

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existing ones; rather, available funds are generally allocated to new projects. INERHI doesnot focus its efforts on this task despite the technical knowledge it allegedly possesses.Mcreover, beneficiaries have never been fully incorporated in the approval, construction oroperation of irrigation systems and they pay very little in the way of water tariffs.

9. In summary, the poor performance of the irrigation subsector to date can thus beattributed to: (a) historically inadequate subsectoral policies, strategic planning and selectionof projects; (b) excessive public sector intervention, thus restricting private sectorparticipation; (c) deficient construction, operation and maintenance of projects; and (d)insufficient public services supporting irrigated agriculture.

10. Government Irrigation Development Strategy. The irrigation subsector offersopportunities for substantial growth and development, provided significant improvements aremade to increase water use efficiency, substantial modifications are introduced to the currentinstitutional structure, the process for rationaWizing investment priorities is improved, andreliance on private sector participation is expanded.

11. To address these prerequisites, the Government has recently begun to outline anambitious strategy involving the redefinition of the role of the state in irrigation and theseparation of normative and operational functions. At the national level, a much smallerpolicy-oriented agency would replace INERXI and wuld limit its tasks to the evaluation,planning, and regulation of water resources. Consequently, responsibilities for projectdesign, execution, operation and administration wcauld be decentralized and transferred tostrengthened regional agencies. Additionally, the reduction of government intervention in theirrigation subsector would gradually lead to the transfer of O&M activities from the regionalagencies to water users' associations and the increased participation of the private sector inirrigation development. The overall strategy is fully consistent with the decentraliztionefforts being promoted by the National Secretariat for Administrative Development(SENDA).

12. Consistent with the modernization priorities of the present administration, MAG hasdecided to formulate and implement a comprehensive institutional reform of the publicirrigation subsector and to develop the framework for the preparation of a medium-termIrrigation Investment Prgram. Given the capacity-building requirements of the initiative,MAG has requested the Bank's support to implement a precursor technical assistance project.

13. Rationale for Bank Involvement. The proposed pzoject seeks to make the planningand management of irrigation water resources more efficient and responsive to user needs,thereby reducing Government budget expenditures for publicly-provided services, andestablishing conditions under which future Bank lending to the subsector will have greaterimpact, and be more cost-effective and sustainable.

14. The project is fully consistent with the Bank's current Country Assistance Strategy(CAS) for Ecuador as discussed in the Board's meeting of June 1, 1993; in terms of helpingto redefine the role of the state and to improve conditions for private sector development.Specifically, it supports the Government's efforts to: (i) implement public sector reforms andrationalize institutional responsibilities; (ii) improve the regulatury framework and required

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irrigation infrastructure for private sector-led growth, including the transfer of specificpublicly-held facilities to private ownership and/or management; and (iii) lay the groundworkfor rational investment in, and management of, critical infrastructure aimed at primarilybenefitting lower income groups. In addition, the project is in line with therecommendations made by a joint World Bank/IDB mission and a subsequent FAO/CP studyconducted in 1990. The latter concluded that future financing of irrigation projects shoulddepend on the completion of a comprehensive institutional rationalization.

15. The project incorporates key elements of the Bank's revised water ResourceManagement Policy Paper2 which was recently revised to take account of accumulated Bankexperience. This is reflected in support for: (a) the adaptation of national and regionalinstitutions and the development of an appropriate administrative and regulatory framework;(b) the decentralization of water resource management to regional institutidns; (c) the transferto private ownership of selected public irrigation facilities; and (d) the active participation ofwater users in the planning, design, and management of irrigation projects, therebyimproving service provision, users' sense of ownership, and incentives for cost recovery,which are central tenets of the project. A modernized institutional framework is expected toimprove procedures for the evaluation of new and existing projects including appropriateinformation systems, and to institute water tariffs reflecting the real costs of irrigation water.

16. LeSSons Learned from Previous Opemtions. Although lbchnical Assistance (TA)projects are the mechanism most frequently used by the Bank to promote capacity-buildingand institutional development, the overall impact of the Bank's TA lending has not beenwholly satisfactory. Based on past experience, the project clearly defines responsibijities andfunctions of the executing agencies. It also provides adequate support for projectadministration including monitoring and evaluation. lb promote sustainability, specialattention was given during project design to promote users participation on administration ofirrigation schemes, limiting the long-term uirden on government's recurrent budget.Overall, the project has been designed to provide adequate support to the initiation and/orimplementation of critical policy changes in the irrigation subsector.

17. The demand-driven nature of the project and the strong leadership demonstrated byMAG officials, combined with the extensive consultation process that took place during thepreparation stage of the project, provide reasonable assurance of adequate involvement andcommitment of Government and recipient agencies. Furthermore, components, activities,and outputs consistent with the objectives of the project were clearly defined during projectpreparation. Finally, the potential difficulties resulting from the multi-agency approach beingapplied under the project, which are essential to promote the desired changes throughout thesubsector, would be minimized by intensive supervision and the establishment of a projectmanagement unit comprised of qualified consultants with proven expertise in projectexecution and monitoring.

2. Water Resource Manasement Policy Paper, World Bank, September 1993.

18. $mgyJ and Ratiole. The central thrust of the project l to assist Government inundertaking the process of modernization of the irrigation subsector, the major user of waterresources in the country. The required institutional rform would be addressed sequentally,first by strea um the normative and regulatory role of the public sector in thedevelopment of the irrigation subsector. This would be accompanied by actions to initiate aprocess of decentralization and privatization, in which existing regional institutions would bestrengthened to effectively assume the lead role in assitng user organizations to take overthe management of existing public irrigation systems. Once these subsectoral reforms areunderway, the project would promote the incorporation of other subsectors (urban watersupply, hydro-electricity) in order to establish a sustainable and integrated approach to watrresource policies and management in the country.

19. From a legal standpoint, the current iter Law does not restrict the implementationof the proposed restructuring of institutions involved in irrigation. If required, the reformprocess would thus be carried out initially through administrative mechanisms, to be laterformalized within the revised new Wr Law. Such legislation would also complement thebroader policy reforms currently being adopted by the Ministry of Agriculture.

20. A second key element of the project would be the development of a comprehensiveset of technical, economic and environmental criteria to be applied in the prioridzation andselection of future public investments in iigaion. These criteria would form the basis forthe analysis of all existing irrigation works to determine those that objectively meritiwestments for completion and/or rehabilitation. As a result, an impotant oitput of the

chnical assistance to be provided under the proposed project would be the full pipatonOf a medium-term Investment Plan, to be implemented witiin the legal and opeatonalframework developed during the project.

21. Weet OebJetives and Dn dptlon. The main objecdves of the proposed technicalassistance project are:

(a) to improve policy design and implementation, rationalize public expenditures,and modernize institutions in the irrigtion subsector;

0b) to promote the sustainable participation of the private sector as a means ofimprovmng the utiliation and efficiency of public irrigaton systems; and

(c) to develop the necesary technical, regulatory and administrafive f wameork toensure the effectiveness of future public investments in irrigationinfrastructure, which would form the basis for a follow-up investmnt loan.

22. The proposed project would have a total cost of US$25.5 million (detailed costesmates are provided in Schedule A and Annex 2) and woud be implemented ova fiveyeaW The loan, amoundng t US$20.0 million, would finance the necessary lontermtchnical advisors (US$6.5 million), short-term consulancies (US$1.7 million), technicaland policy studies (US$1.5 million), fasibility sdies (US$3.0 million), tWaining

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(US$1.1 million), equipment (US$ US$1.5 million), civil works (US$3.1 million), andincremental recurrent costs (US$1.6 million) required to implement the components desribedbelow.

23. P ub itutional Strenghening and Reform (US$10.1 million Ibtal Cost). Thiscomponent would enable Government to develop the policy and administrative frameworkrequired to reduce its role to normative and regulatory functions, while simultaneouslyreorganizing and strengthening all relevant institutions to perform their new role andfunctions. The component would include the following activities:

(a) The organization of a streamlined national entity, responsible for subsectomalpolicies, planning, regulation, and coordination of water resource utilization(Annex 2). Initially based on the existing INERHI, later to be replaced by aproposed National Council for Water Resources (CNRH), the board of thisagency would include the Ministry of Agricultuire, the Ministry of Finance, thePlanning Secretariat of CONADE and representatives of relevantenvironmental and water-related agencies. During negaligQons it was agreedthat INERHI's Board of Directors would be restructured by no later t 1an 30doy after efhenem (pam. 48(a)). CNRH's functions would be supportedby a project-assisted Cential Irrigation Executive Secreaiat (CIES)responsible for policy formulation, public resource allocation, definition oftechnical guidelines, and monitoring of Govemment programs and projects.At neotiations, agreement was also reached on the appointment of the headof the CES, with functions and responsibilities satisfactory to the Bank, byQlater than 60 dAs after effectiveness (pam. 48(a)). This would becomplemented by providing specialized technical assistance to MAG and thePlanning Secretariat within CONADE.

(b) Support to the decentrlization process by strengthening the operational andenvironmental assessment capacity of existing regional institutions (CEDEGE,CRM, CREA, PREDESUR, and agency to be designated by the government inthe province of EL Oro) and INERHIs regional offices in the areas notcovered by the existing regional agencies. As a condition of disbummentagainst the Institutional Strengthening component, the government wouldsubmit signed Transferral Agreements, acceptable to the Bank, betweenINERH and each regional agency formalizing the transfer of all projectscurrently under INERHI's administraton (pam. 50).

(c) The preparation of the regulatory and administrative framework required forthe operation of the new decentralized institutional structure, involving a seriesof studies to define procedures and mechanisms to implement new subsectorstrategies and policies related to: (i) water resource management; (ii) waterrights and concessions; (iii) water charges and cost recovery mechanisms foroperation, maintenance and investments; and (iv) participation of the privatesector in the identification, construction, and O&M of irrigation systems.

24. Wfi tor Devel (US$9.6 milon lbtal Cost). The component wouldassist Government in developing the most suitable and sustainable mechanisms for theregional agencies to promote user-financed rehabilitation of irrigation infrastructure, andimplement the transfer of public iipgation schemes to the users. It would include:

(a) A Pilot Project Program, involving a limited number of selected projects(tentatively, seven representative projects were agreed on during negotiations).This would require investments in rehabilitation or completion of irrigationschemes. The pilot projects would be transferred to beneficiary-managedorganizations in order to validate cost recovery and tansfer mechanisms andmonitor the pracical impact of improved subsectoral policies and regulations.Agreement was obtained during negotions on the process and schedule,acceptable to the Bank, to be applied for the selection of pilot projects(pan. 48(b)). As a condition for diabuement against the Pilot ProjectProgam, the Board of Directors of each regional institution would approve aresolution formnaizing the selection of the irrigton systems to be included inthe Pilo: Project Program (pam. 51).

(b) Thining and targeted technical assistance to strengthen newly-created orexisting mwter users' oranizations witin the Pilot Projects Program in orderto ensure a sustainable tansition to private management, administration, andutilizaion of public irrigation infrastructure.

(c) Implementation of a comprehensive outreach training and communicationprogrm within the geographical area of each regional agency, aimed atdisseminating the eWperience obtained in the pilot projects to the irrigatedfarming community, particularly to those farmers involved in all other publicirrigation schemes.

(d) Comprehensive review of the current status of privately-developed rigation,in order to determine the need for specific policies to stimulate increasedproductivity of private irrigated agriculture.

25. PabL Sector Bkdgatono lestment Ian (US$3.7 mlon Ibtal Cost). Studies forthe preparation of a medium-term program for ccmpletion or rehabilitation of existingprojects under the new administrative and regulatory fmmework, would ivlve the follngactivities:

(a) Detiled national inventory of existng public projects, restricted to thoseschemes that either were not completed or are currently in need ofrehabilitation.

(b) Development and application of comprehensive criteia for screening andselection of future public irrigation projects

(c) Preparation of feasibility studies of irrio n schemes representing the basisfor a medium-term investment program. The implementation of this follow-p

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project would incorporate policies, legal framework, and operationalprocedures developed during the technical assistance project.

26. During gotiations, agreement was reached on the schedule for the preparation ofthe Public Investment Plan, which would be developed and submitted to the Bank forapproval by no later than December 31, 1994 (para. 48(c)). It was also agreed that thepreliminary list of projects requiring feasibility studies would be developed in consultationwith the Bank (para. 48(c)). A Cooperative Agreement, satisfactory to the Bank, specifyingthe terms and conditions under which feasibility studies of selected projects would beconducted, would be signed between MAG and the Planning Secretariat of CONADE as acondition of disbunement against the Public Investment Plan component (para. 52).

27. Poect Mangemnt and Impm atio (US$2.1 million Tbtal Cost). Theoverall executing institution would be MAG, which would provide funds, goods and servicesto the central and regional institutions participating in the project, utilizing procedures agreedupon during appraisal. Detailed terms and procedures, satisfactory to the Bank, for thetransfer of project resources would be specified in Subsidiary Agreements between MAG andeach regional institution. Agreement was reached (during negotiatioQ) on the format andcontent of these Subsidiary Agreements, including the necessary clauses to: (i) ensureadequate allocation of counterpart funds to the project by each agency and (ii) annual budgetsare discussed with UEP and the Bank (para. 48(d)). Submission of the signed individualSubsidiary Agreements (para. 230)), to the Bank, between MAG and each regionalinstitution participating in the project would be a condition of disbursement against theInstitutional Strengthening component for the respective regional institution (pam. 50).

28. lb assist with the execution of the project, MAG has agreed to recruit a core team ofqualified consultants and support staff with proven experience in project execution andmonitoring, to fonn the Project Executing Unit (UEP). The UEP to be created byMinisterial Decree for the duration of the project would report directly to the Minister ofAgr:culture in his capacity as President of the Board of Directors of INERH (and later ofthe proposed CNRH) (para. 23(a)). The UEP would have the primary function of providingmanagerial and administrative support to the project, including procurement processing,hiring of consultants, contracting of studies, accounting, and monitoring and inter-institutional coordination of implemnentation activities, based on the Implementation Scheduleoutlined in Annex 4. The UEP would also be the contact point between the Bank and theGovernment on project matters, providing follow-up on agreements and conditionalities,consolidating annual workplans of the individual participating agencies, as well as activelyassisting in project supervision. In order to assist MAO in finalizing aU necessaryarrangements prior to initiatng project implementaion, a highly qualified short-termconsultant was recruited for six months. The draft text of the Ministerial Decree, terms ofreference, and staff recruitment timetable for the establishment of the UEP was agreed uponduring negotiations (pam. 48(e)). As a condition of the loan effectiveness the oranizationalstructure and staffing requirements for the establishment of UEP would be approved bySENDA (pama 49(a)).

29. Tb avoid delaying the institutional reform process until the improved legal frameworkis deeoped and later approved by Congress, the Government has established that the

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proposed new institutional arrangements could be initially implemented utilizingadministrative mechanisms under the existing %ater Law. For the tansition perod, pror tonegotiations INERHI's Board of Directors issued a resolution approving the reorganization ofINERHI into the following agencies:

(a) A streamlined central agency, using INERHrs current legal mandate, thatwould perform the normative role and functions to be eventuaUy transferred tothe proposed CNRH under the new Water Law or the Modernization Law.This agency would be primarily staffed by a reduced number of selectedprofessional and administrative personnel currently employed by INERHI, andwould be headed by an Executive Director, reporting to the National IrrigationCoordinator, a senior official appointed by thbc Minister of Agriculture. Priorto negotiations, the lbchnical Subsecretary of MAG was formally designatedas the National Irrigation Coordinator.

(b) Regional agencies, udliing part of INERH's staff and the existing officeslocated in Ibarra and Ambato (or Riobamba), that would be responsible fordecentralized functions in the areas of the country presently not covered by theexisting regional institutions (i.e. the northern and central part of the Sierra).Initally, these agencies would be administratively lkd to INERHI, butwould become autonomous once the proposed CNRH is established(para. 23(a)). As a condition of loan effectiveness, the new organiionalstructure and staffing requirements for the reorganiion of INERI would beinitiated with the formal approval from SENDA (pam. 49(b)).

30. In order to implement the decentralization objectives of the project, responsibility ibrpublic irrgation projects located throughout the country that are currently centralized underINERHI would be transferred to the respective existing regional agencies. Prior tonegotiations, INERHI's Board approved a resolution authorizing the transfer of all irrigationprojects.

31. Reoring, SuisM andaluntl. All participating agencies wuld berequired to submit full progress reports to the UEP every six months, in a standard formatsatisfictory to the Bank, no later than October 30 and April 30 of each year. In turn, theUEP would consolidate these progress reports and submit them to the Bank by MU 31 andNovember 10 of each year. stdrng in MUy 1995 (pam. 48(f)). The report for the secondsemester of the year would include a consolidated proposed annual workplan (POA), whichwould be approved by the Bank prior to its implementation. [b xpedite communicationsand reportng, the possibility of establishing electronic linkage between MAG/UEP and theBank will be explored.

32. Given the prcect's highly decentralized nature, intensive supenrision will be required.Partal supervsion, mainly conducted by LA4AP staff in the Bank's resident office in Quitoand locally-recruited consultants, would take place on a quarterly basis, while fullsupervision missions would monitor project progress every six months (tentatively scheduledfor May and November of each year). In addition, it is expected that FAO/CP wouldparticipate in the preparation of the Public Investment Program, thus assistng the Bank in the

- 10 -

supervision of a major component of the project. During negotiations agreement wasreached about the organization of the project launch workshop, including the preparation ofthe Project Implementation Manual to be finalized no later than 90 days after loaneffectiveness (para. 48(g)). Internal annual evaluations by no later than November 30 ofeac year, as well as a mid-term project evaluation by no later than November 30, 1996,would be carried out with the purpose of providing a detailed analysis of implementationprogress, status of performance indicators (Annex 5) and recommendations for any requiredadjustments. The Supervision Plan for the project is outlined in Annex 6.

33. Costs and Financing. The estimated total project cost is US$25.5 million, includingUS$2.5 million for contingencies. The project would be financed by a Bank loan ofUS$20.0 million (78% of total project cost), net of taxes and duties, and a Governmentcontribution of US$5.5 million. All incremental operating costs are included. The Loanwould finance 100% of the cost of about 1,500 months of specialized consultancies, of which380 would be required to have international experience. With the exception of theincremental staff to be transferred from INERHI to the regional irrigation agencies, thesalaries of permanent state employees performing project related activities have not beenincluded as part of the project cost.

34. The Bank loan would cover 100% of the Project's foreign exchange costs byfinancing the cost of foreign consultant services and the foreign exchange cost of works,equipment and training. It would also finance about 65% of the project's costs in localcurrency, including fees of national experts, works, equipment, services, training andincremental operating costs. The Government's share would cover the remainder of localcurrency expenditures to support project coordination, office overhead and incremental localstaff, works and equipment. Detailed cost estimates and financing plan are provided inSchedule A. Assurances were obtained during negotiations that adequate counterpartfunding would be made available to the project, by (i) allocating funds in the annual budget,accorinding to the proposals to be submitted to the Bank no later than June 30 of each yearfollowing the requirements specified in the project's Annual Workplans; and (ii) opening andmaintaining an account, under terms and conditions satisfactory to the Bank, for the purposesof depositing the required counterpart funds for project implementation (para. 48(h)). Nlater than 45 days after effectiveness, the account would be opened and an initial deposit ofUS$200,000 would be made. One year before project completion, arrangements wovad bemade to ensure future funding of recurrent costs to support core aetAivities.

35. Procurement. During neggiations, agreement was reached with the Governmentthat the procurement of works, goods and services would be carried out in accordance withBank Procurement Guidelines (May 1992) (para. 48(i)). Similarly, the use of LCB standarddocuments acceptable to the Bank was also agreed upon. Consultants to be financed underthe Loan would be selected and hired by the Government in accordance with the "Guidelinesfor the Use of Consultants by World Bank Borrowers..." (August 1981). The legaldocuments for this project would contain a set of provisions dealing with points ofdifferences, either in substance or in interpretation, between Bank guidelines--forprocurement and for the use of consultants-and Ecuadorian legislation. Assurances werealso obtained during negotiations, that in case of conflict between local legislation and theBank's procurement policy, the latter would prevail if the aforementioned prwvisions are

- 11-

included in the Loan Agreement (pam. 480)). lb assist in procurement implementation,MAG would appoint procurement consultants under the UEP (para. 28).

36. In order to ensure adequate quality, the feasibility studies required for the preparationof the Public Investment Plan, estimated to cost about US$3.0 million, would be groupedinto packages of not less than US$0.6 million to attract reputable consulting frms withrelevant experience. Procurement of goods would represent about US$1.5 millionequivalent, and wuld include purchases of vehicles, computer softwae and harduare, offlceequipment and other equipment. Vehicles and computers would be procured through LIB,using Bank Standard Bidding Documents, among suppliers with appropriate servicing andrepair facilities in Ecuador. Tb the extent feasible, procurement under LIB would be done inpackages costing more than US$150,000. Furniture and other equipment up to an aggregateamount of about US$60,000 equivalent, two vehicles urgently needed for the initial activitiesof the UEP, and goods which cannot be packaged in contracts larger than US$50,000 wwldbe purchased through local shopping procedures acceptable to the Bank, requiring thecomparison of price quotations from at least tee eligible suppliers. The total walue ofgoods to be procured under shopping procedures would not enceed an aggregate amount ofUS$150,000. Civil works to be procured and financed under the project would representabout US$4.2 million, and would include exclusively the rehabilitation and/or completion ofnfrastructure within the seven projects selected for the Pilot Project Prgram. Due to therelative simplicity and estimated cost of such works (US$250,000-US$750,000 per project),contracts would be procured hough LCB procedures. A summary of procurementarrangements is provided in Schedule B.

37. Except for activities to be defined during the early stages of project implementation,draft terms of reference for key consulting services and studies (Annex 3), reviewed atappraisal, were agreed upon during negotiations. Unless implementation requirements justifythe recruitment of individual consultants, the Bank would emphasize the use of consultingfirms to provide technical assistance and conduct specific studies.

38. All procurement documentation and decisions under LD3, with the exception noted inpara. 36 for the start-up of the UEP and other related goods, and for works contractsexpected to cost US$500,000 or more, would be subject to prior review by the Bank. Theprior review of consultant contracts would be in accordance with Bank Guidelines.However, consultant contracts estimated to cost below US$100,000 for firms and US$20,000for individuals, up to an aggregate amount of US$1.5 million and US$400,000, respectivelywould include only the review of the terms of reference. The proposed review procedureswould result in a prior review by the Bank of about 75 percent of the total value of contasunder the project.

39. Disbursement. Accounls and Audits. The proceeds of the Loan would be disbursedover a five and one half year penod (six months more than implementation) with a closingdate of June 30, 2000, against: (i) 100% of ependitres for intemational and localconsultancies, studies, and training; (ii) 75% of works; (iii) 100% of foreign exchangeexpenditures, 100% of local expenditures (ex-ictory cost) and 80% of penditu in loeacurrency for goods; and (iv) 75% of incremental opeating costs (vehicle O&M and domestictravel expenses during implementation) on a declining base (100% up to an aggregat amount

- 12 -

of US$1.0 million; 66% up to an aggregate amount of US$1.45 million; and 33% up to anaggregate amount of US$1.6 million). Disbursement of loan proceeds would be made underfive categories: (i) consulting contracts, including studies (US$12.2 million); (ii) workscontracts (US$3.1 million); (iii) goods , including equipment and vehicles (US$1.5 million);(iv) incremental operating costs (US$1.6 million); (v) training (US$1.1 million); and (vi)unallocated (US$0.5 million). A Special Account would be established in the Central Bankof Ecuador with an authorized allocation of up to US$1.0 million. Eligible expendituresfrom the date of appraisal may be retroactively financed up to a maximum equivalent ofUS$1.0 million, but would not include expenditures incurred more than 12 months prior tosigning of the loan agreement. Disbursements would be made on the basis of Statement ofExpenditures (SOE) for all expenses except those covered by contracts requiring prior reviewby the Bank. The allocation of loan proceeds is summarized in Schedule B.

40. During negotiations agreement was reached that the UEP and the regional agencies(paras. 7 and 23(b)) vould maintain detailed accounts, utilizing an Accounting Plansatisfactory to the Bank, and process payments for all project expenditures (para. 48(k)).Prior to neeotiation, MAG submitted the proposed general outline of the Accounting Planfor the project. Project Accounts, the Special Account, and procurement, includingStatement of Expenditures (SOE), would be audited annually. For this, independent auditors,satisfactory to the Bank, would be appointed for at least three years. Audit Reports would besubmitted to the Bank no later than six months after the end of Government's fiscal year.

41. Environmental AspcU. Environmental considerations represent an importantelement of the project. A significant proportion of the technical assistance and training to beprovided is aimed at strengthening the environmental capacity of public agencies, both at thecentral (planning) and regional (implementation) levels. This would include about 120months of environment-related consultancies, as well as approximately US$100,000 onenvironmental taining of local staff. Furthermore, the project would promote a shift in thecurrent approach to regional planning, by financing studies to define guidelines for asbedplanning and management. In addition, the strategy for the pilot project component and thepreparation of the Public Investment Plan incorporates several environment-related elements,including (i) the application of environmental criteria to screen all projects included in theinventory of irrigation schemes requiring investment for completion and/or rehabilitation;(ii) individual environmental impact assessments (EiA) as part of the feasibility studies to beprepared for each project selected as a pilot scheme and for the future investment program;and (iii) the incorporation of a public environmental agency acceptable to the Bank, to theBoard of Directors of the proposed CNRH (pam. 23(a)).

42. IoIr Alleviati . The project would have a strong focus on rural poverty, giventhat a considerable proportion of vater users within public irrigation projects aresmallholders living in poverty. Through targeted interventions (technical assistance, timingprograms, and pilot projects), a substantial amount of project resources would be aimed atdeveloping a more efficient, sustainable and economicaly viable alternative for themanagement and operation of irrigation infrastructure, thus providing poor farmers and theirfbmilies the opportunity to improve their income levels and living conditions.

- 13 -

43. Project Fbrformance and Sustlnablilty. The overall performance of the projectwill be closely monitored, primarily based on a comprehensive set of clearly definedperformance indicators prepared for each of the individual components of the project(Annex 5).

44. To some extent, the impact and sustainability of project activities would depend onhow effectively the institutional reforms are carried out and integrated into the formulation ofsectoral policies. However, given that one of the primary objectives of the project is todecrease Government's role and intervention in irrigation, the success of the project islargely dependant o.i the interest and participation of the private sector in project activities.The expected reduced role of the public sector should also avoid possible negative impacts ofconsultant withdrawal after project completion. Furthermore, a considerable proportion ofproject expenditures would be directly (pilot projects and strengthening of user oranizations)or indirectly (improved policy formulation and targeted assistance to regional institutions)aimed at implementing a sustainable transfer of irrigation schemes to private management.In addition, project initiatives are expected to be consolidated and expanded through theimplementation of the proposed Public Irrigation Investment Plan, to be prepared as part ofthe project.

45. The interim institutional arrangements to be implemented under the project shouldensure sustainability of the policy reorms even if the approval of the improved legalframework is delayed. The decentralization of the decision-making process in the irrigationsubsector, combined with the restructunng and strengthening of regional agencies and theincreased role of water users associations in irrigation development, would be carried outbeyond the life of the project.

46. .ne and i. The propose project wuld promote changes in policy,planning and management at the national and regional levels, which would set the frameworkfor fiuther subsectoral lending by the Bank. These critical adjustments, combined withincreased private sector participation, would achieve: (a) greater ovall efficiency in theutiliztion of wmter resources; (b) significant rationaliztion of public institutions (anestimated reduction of over 2,000 employees is envisaged), and investments in irrigation; and(c) considerable reduction of the public budget for irrigation, through an important decreasein staff costs (estimated at US$8.6 million/year) and O&M expenditures (about US$1.0million annually), and increased cost recovey from future investnents. Furthermore,additional benefits would be generated by the gradual privatizaon of public irrigationschemes through their transfer to water users' associations, involving a systematic sharing ofresponsibilities with the private sector in irrigation system management. A total of about 450oganizations and 60,000 farmers would be direcly assisted by the project through the pilotprojects and the training and outreach program. Improved irrgation management willprovide the basis for the sustainable expansion of Ecuador's irrigtion system, benefitting alarger proportion of the predominantly poor population of rural areas.

47. The major risks include: (a) the magnitude of the proposed institutional reform; (b)the limited administrative and technical capacity of participating agencies; (c) the possiblereluctance of farmers to support the privatization process; and (d) the potential shift in keysubsectoral priorities resulting from the mandatory change of Government every four yearL

- 14-

In addition to the work done during project preparation to address these issues, these riskswould be mitigated by:

(a) the implementation of a considerable capacity-building progr., combinedwith close monitoring and supervision of the proposed reforms;

(b) the establishment of a highly-qualified Project Executing Unit, with a clearlydefined mandate to facilitate project execution;

(c) the current pressure from farmer organizations to reduce Governmentintervention in O&M of public irrigation infrastructure, combined with theestablishment of a comprehensive program of pilot projects and training tostrengthen users' organizations and demonstrate the benefits of a privatelyoperated irrigation systems; and

(d) the leadership shown by MAG's current administration in executing theGovernment's modenization program, and the formal commitment toimplement the required reforms rapidly in order to avoid delays in initiatngthe Public Investment Plan.

48. Amed Actions. During nuo.tlalhu, agreement/assurances were obtained fromGovernment on the following:

(a) restructuring of INE 's Board would be formalized by no later than 30 dyafer effeceite, and the head of the CES would be appointed, withfunctions and responsibilities satisfactory to the Bank, by no later than 60 doysafter effectiveness (para. 23(a));

b) the process and schedule, acceptable to the Bank, for selection of pilot projects(pam. 24(a));

(c) a detailed schedule for preparation of the Public Investment Plan, including thepreliminary list of existing projects requiring feasibility studies for completionand/or rehabilitation, which would be submitted to the Bank for approvl bno later than December 31, 1994 (pam. 26);

(d) the format and content of the Subsidiary Agreements, including the necessaryclauses to ensure adequate allocation of countepart funds to the project byeach agency, to be signed between MAO and all participating institutions(paras. 27 and 50);

(e) draft text of the Ministerial Decree, TORs, and staff recuitment timetable forthe establishment of the UEP (paras. 28 and 49 (a));

(f) all participating agencies would be required to submit full progress reports tothe UEP, in a standard format satisfictory to the Bank, na later than Oc30 and April 30 of each year, and submitted to the Bank once consolidated by

- 15 -

the UEP by Ma 31 and November 30 of each year. starting in May 1995(para. 31);

(g) the preparation of the project launch workshop and contents of the ProjectImplementation Manual, to be finalized not later than 90 days aftereffectiveness, as well as the timing for the internal annual evaluations Iimlater than November 30 of each year, and a mid-term project evaluation kJUQlater than November 30, 1996 (para. 32);

(h) mechanisms for adequate and timely counterpart funding to be made availableduring project implementation, including the establishment of a project accountnot later than 45 days after effectiveness and the submission of budgetproposals by June 30 of each year (para. 34);

(i) the utilization of Bank Procurement Guidelines (May, 1992), and standardbidding documents, acceptable to the Bank, for procurement under the project(pam. 35);

(j) Bankes procurement policy would prevail over local legislation in cases ofconflict, for which purpose appropriate provisions were included in the LoanAgreement (pam. 35); and

(k) the general requirements for project auditing satisfactory to the Bank(pam. 40).

49. As a condition for Loan Effectivne, the Borrower would obtain formal approvalfrom SENDA regarding:

(a) the organizational structure and staffing requirements for the establishment ofthe UEP (para. 28); and

(b) the reorganization of INERHI (pam. 29(b)).

50. As a condition of dlsbummnt against the Institutional Strengthening component ofeach regional institution, the Borrower would submit sigried Thns&frral Agreements,satisfactory to the Bank, between INERHI and each regional agency formaliing the transferof all projects currently under INERHI (pama. 23(b)); and the respective SubsidiaryAgreements, satisfacory to the Bank, between MAG and each regional institutionparticipating in the prqject (pam. 27).

51. As condition of fdisbuemnt against the Pilot Project Progrm of the Private SectorDevelopment Component, the Borrower wuld formalize, through a resolution from theBoard of Directors from each regional Agency, the selection of the irrigation systems,acceptable to the Bank, to be included in the P:lot Project Program (pam. 24(a)).

52. As a condition of disbursement against the preparation of the Public Investment Plan,the Borrower would sign a Cooperative Agreement, satisfactory to the Bank, with the

- 16 -

Planning Secretariat of CONADE, on the specific terms and conditions under whichfeasibility studies of selected projects would be conducted (para. 26).

53. Recommendatin. I am satisfied that the proposed loan would comply with theArticles of Agreement of the Bank and recommend that the Executive Directors approve it.

Lewis T. PrestonPresident

AttachmentsVashington, D.C.

April 19, 1994

- 17 - Scheule A

-OR

PROJEC COSTSUh

Prtojectoon LllWm1

-U USS million

A. Public Iuutltutional Stent & RdonnMistry of Agricult 0.1 0.2 0.3Planning Seretaia 0.1 0.2 0.3Cential Irigation Executive Seariat 0.7 0.9 1.6CEDEGE 0.4 0.4 0.8CREA 0.7 0.3 1.0CRM 0.6 0.3 0.9Agencies in the pvince of El Oro 0.7 0.3 1.0iNERHI None 0.5 0.3 0.8INERH CenO 0.5 0.3 0.8PREDESUR 0.4 0.3 0.7Tocical and Policy StAdios 0.6 0.6 1.2Component Sub-Tbtal 5.3 3.8 M

B. Public Irrigatieuon Invsent Plan 1.7 1.7 S

C Private Sector DeveopmetPilot Projecs 4.4 2.1 6.SUser Group Tiainng and Outreach 1.0 1.2 2.2Component Sub4Rbtal 5.4 3.3 LZ

D Plriject Eecution Unit (UE) 13 0.6 Li

Tbtal Baseine Cost 13.7 9.4 lZ

Physical Contingencies 0.9 O.S 1.4Price Contiencies 0.6 0.4 1.0

Total Project Cost 15.3 10.2

PROJE UiNANCTING PLN.Law Foie

US$ milion

Govement s.s s.sBank 9.8 10.2 20.0

Ibtal 153 10.2

- 18- Schedule B

ECUADOR

IRRIGATION SUBSECIOR TECHNICAIM ASSISANCE JSOJECT

-PROCLJREnMI METHODS AND PISBURSEMENIS

A. PR OM (US$ million)

ProcueIm ent_Methods U

Prjtject Element LCB Other NMIE . W __

1. Thchnical Assistance k'

* Consultants 8.8(8.2) 8.8(8.2). Studies 4.8(4.5) 4.8(4.5)

2. Works 4.2(3.1) 4.2 (3.1)

3. Goods

. Office lTchnology 0.7 (0.6) 9' 0.7 (0.6)| Furniture and Other Equipment 0.1 (0.1) Y 0.1 (0.1). Vehicles 1.0(0.8)' _ 1.0(0.8)

4. Trainin _ 1.1 (1.1) 1.1 (1.1)

5. Inrmenta Operational Costs l 2.1(1.6) 2.1(1.6)

6. Other Recurrent Costs 2.7 (-) 2.7 (-)

Total 4.2(3.1) 18.6 (16.9) 2.7 (-)W 25.5(20.0)

Sotes:

WI Figures rounded; those in parenthesis are the respective amounts financed by ffie Bank.hi Includes pruement of technical assistance sevices according to Bank Guidelines for ontratn

consultants.g/ Procurement by LIB aimited Intrational Bidding).4/ Intemational or local shopping procedures._/ Tnn will be conttacted fllowing procedures for consultants; matea inputs wiU be prcared

by shoppig procedures, acceptable to the Banl.f/ Incmel opeOtional costs, including vehicle O&M, trael, per-diems, etc. Not subject toprocurment.

gI Not-Bank Financed.h/ Counte"art funding include salaries of INERBrs currt staff to be twansfrred to the regional

irrigation agencies under the project.

- 19 - Schedule B

ECUADOR

IRIGTIN UBSECTO-R 9C ASSLSTC PROJEC

PROCLMEM ISODS AND DISBURSDWMEI

B DISISEMENIS

Withdrawal of the Proceeds of the Loan

CATEGORY A| nount % of Expenditures to be financed(US$ nmlllon)

1. Consulting services and studies 12.2 100%

2. Wrks under pilot projects 3.1 75%

3. Goods 1.5 100% of ibreign expenditures; 100% oflocal expenditures (ex-ieory cost); and80% of local expenditures.

4. Incremental operating costs 1.6 100% until withdrawal has reached an(vehicle O&M and travel) aggregate amount equivalent to US$1.0

million; 66% until the aggregate reachesUS$1.45 million; and 33% for theremainder.

5. riaing, 1.1 100%

6. Unallocated 0.5

btall 20.0

E stimated ][BRD Disbursenent(US$ million)

IBRD F ltar FY94 FY9S FY96 JFY97 FY98 FY99I Annual 2.0 4.0 7.2 4.0 2.4 0.4

Cumative 2.0 6.0 13.2 j 17.2 T _19.6 20.0

-20- Schedule C

EC VA=

MWAN STMA EICLAm& EMEL

-_ K

(a) Tw5e takn to prepare 10 months

(b) Pepaed by Govement of Ecuador, local consultants andFAO/CP assistance

(c) First Bank miion January 1993

(d) Appraisal mission deparure December 1, 1993

(e) Negotiations January 1994

(f) Planned date of effectiveness October 1994

- 21 - Schedule D

IRSGA'ION SUBSECTlOI TECHNCAL ASSISTANCE PROlECr

STATUS OF BANK GROUP OPERATIONS

A. Statement of Bank Loans and IDIA Credits (as of Marsh 31. 194)

. 1 .j US$ MillionLoan or Fiscal Amount (less cancellations)

Credit No. Year Borrower Pwpose _ __ _____j_Bankj~~~~~AjUndwb~Undsbsed

39 loans and six credits fully disbursed 873.2 37.5 0.0

2713 1986 INCEL Pawer Sector 8.5 . 1.7I_________ Improvement

2752 1987 Ecuador Agriculture Credit 1I 48.0 2.7

2774 1987 EMAP-C; Guayaquil Water Supply II 31.0 . 7.1

2898 1988 Ecuador Housing 60.0 7.1

3052 1989 IETEL Telecommunications 1.4 0.9

3162 1990 Ecuador 4th Small Scale Enterprise 50.0 . 21.9

3276 1991 Ecuador Lover Guayas Flood 59.0 52.0I ______ _ 1Control

3285 1991 Ecuador Municipal Development 104.0 86.4

3390 1992 Ecuador Rurel Development 84.0 52.9

3425 1992 Ecuador 1st Social Development 89.0 76.5

3510 1993 Ecuador Soc Dev Il/Health 70.0 66.0

3609 1993 CNF Private Sector Dev 75.0 62.3

3655W1 1994 Ecuador T.A. Mining 14.0 - 14.0

3707t' 1994 Ecuador Social Investment Fund 30.0 30.0

TOlAL | 1,708.7 37.5of wEhich has been repaid |554.1 9.1

TTAL NOW OUTSTANDING | 1,154.6 28.4

AMOI)NT SOLD | 3.21of which has been repaid _ 3.21

TOrAL NOW HELD BY BANK | 151.4

ML D IDA z __ __ _ _ __ _

TGrAL UNDISBURSED485

I/ Not yet effective.2/ Not yet pgned.

ECUADO-R

RRGATION SUBSECOR TECEICAL ASSANCERO

STATUS OF BANK GROU OPERATONS

B Statement of IFC nwestments (as of March 31. 1994)(US$ Millions)

Odgina Gross Commitments UndisbumedHeld Held by (includiz

Fihsl Year IFC l Parcipants Total by wc Paicipckas Patticipan)Commitled Obligor Type of Buiness Lam Equity

1966r/2 la Internaciond S.A. sT lexiles 2.45 0.28 1.24 3.96 - - -

19S0 Adamas Andina S.A. V Specilty Papers 3.00 1.25 4.25 - - -

1981 Minh Towhi S.A. f Minig 1.00 0.25 1.25 - - -

1976 Sociedad Agrfcols e Industial San Sugar 5.00 . 5.00 - - -

Carlo. S.A. Y I

197U/801S2183184 La Cemenb Nacional Y Cemen 12.00 1.06 _ 13.06 - - -

1969m/75m/81 Ecuatrian de De*atmo Dwelopmet Fnncizg 4.00 0.59 _ 4.S9 1.87 - -

1982/SS Compasa Financier (CO }EC) 1988 FacEuinsa V Small & Med.Scabe Ent. - 0.09 _ 0.09 - _ _1987 Miners.Kb S.A. Y Miniqg 9.00 4.40 _ 13.40 - _1993 Triptm Caude Petroleum 10.00 - - 10.00 10.00 _1994 Rybap A B 10.00 - 5.00 15.00 10.00 _

Total Go" Commitmes if 56.4S 7.91 6.24 70.60

Less: Cas_laio, TenninationRepamen & Sales 34.S8 7.61 6.24 48.73

Total Commitmntd Now Held Y 21.56 0.31 - 21.87 21.87 0.00 0.00

Pendim Commitment:Endesa-Doba res Products 4.00 1.00 - 5.00

Totdal Commitnt* Held andPendhe coma _mem 25.56 1.31 0.00 26.87

Total Undisbud Commitmens - - - 0.00 .

Nose: O

LI -nsstmsa which bae been ly camceled, trminaed, writt off, sold, redeemed or repaid.kl Ows Commimets cons of apved and signed pwjects.gi Held C u cons of disbured and undisbuaed inmestments.

-23- AnnexI

IRWrIATION SUBSRAZ LA ASSifANCE PIOEC

RSMU?IONAB REORGANIIZAfO-N

1. CENTRAL AND REGIONAL ORGANIZATION

MINISTRY PLANNING NINISTRY OF NINISTRY MINISTRYOF ENERGY (CONADE) AGRICULTURE OF FINANCE OF URBAN DEV.

NATIONAL COUNCILFOR WATER RESW RCES [ADVISOY COITTEE

UEP

EXECUTIVE SECRETARIAT

EXECUTI E DIRECTOR

rLEGAL DEPARTNENT r PLNIGDPRMNT

rAUDITING l|ANNSRTO

FINANCIAL DEPARTNENT WATER CONCESSIONS

f REGIONAL | r PROJIECT l l OPERATION ANDg DEVELOPMENT l l EXECUTION lMAINTENANCE

AGRICULTURE

-24- AnnexI

ECUADOR

IMCGATION SUBSECTR TY CL ASSISTACE PROJ

J!TlTIrQNAL REORGANIZATION

2. CENTRAL ORGANIZATION (TRANSMTION)

ImIIEH A DVISiDIY|COTITTEE|

I UEP FA

DI

| IIILII6 <H

REGIILEL

IIOSIZISTffiTIW __ Fll 1 r~JPERISIO

umica~~ I IIORTIERI CENTAL. l ~~~~~~ ~ ~~SIERRA SIERRA

TECHNIICAL HATERIDEPT. ADNI.

1UNN E 1IERN 1OIC

- 25 - Annex I

ECUADOR

IRJGATMO SUBSECIrOR TECGfCA ASSLSTACE PROJEC

INSfrIT QONAL REORGANfZATINQ

3. CENTRAL ORGANIZATION (FINAL)

NATIONAL Corn.ILiFOR MATER RESCEC_S COITTEE

iEa IUTIVE

SECRETARIAT

| «O~AITIIIG lEGA

| DEPT. | tMDNINISTRATIONDE PT.

PlNNN ENIERN POI

- 26 - Annex I

ECUADOR

BUtIGATION SUBSE(7IOR TECHNICAL ASSISTANCE PROJECr

SllTITQMNAL B REORGANIZATION

4. PROJECr EXECUTION UNIT

NINISRY Of ASRICtULUE

ADNIUISTRTIVE FINANIALDEPARET DEPARTMENT

LEGAL REILIC PILOTAND INESTlENT PROJECTS

INSTITUTIOalL PLN ANDNftTTERS TRAINING

-27 - Annex 2

ECUADO-R

IRRIGA1IO SUBSECTOR MEHNCAL ASSISACE PRtOJECT

P1oect Cost S_Umry" by Wroject Component

(USS '000) Foreign BaseExchange Costs

A. Public Institutional Streqgthening and Rdwrm1. MAO 157.8 127.0 284.8 45 12. Planning Secretriat 107.7 151.5 259.2 58 13. Centml Irrigation Excoutiw Secretariat 433.7 763.7 1,197.4 64 54. Regiona Agen Strengtheuing and Refrm

a. CEDEGE 438.3 345.9 784.2 44 3b. CREA 756.5 278.5 1,035 27 4c. CRM 671.1 248.9 920 27 4d. El Oro 735.1 278.9 1,014 27 4e. INERHI Nort 471.1 278.9 750 37 3f. INERHI Cento 471.1 278.9 750 37 3g. PREDESUR 431.1 278.9 710 39 3

Suba Regional Agency Strengthening and 3,974.3 1,98.9 5,963.2 33 26Reform

S. Leoi und Fblcy Stdies 625.0 625 1,250 S0_ _ 5

Subtotal Public Instiduional Streogthening and 5,298S 3,656.1 8,954.60 41 38Reborm

B. Public Irrgation Investaent Plan 1,690.0 1,690.0 3,380.0 50 15C Private Sector Developmedn

1. Pilot Project 4,391.1 2,121.1 6,512.2 33 282. User Group Itining and Outwach 1,062.0 1,134.8 2,201.8 52 9

Subtotal Plivate Sector Devdopment 5453.l 3,260.9 8,714.0 37 38

ft Project Execution Unit 1,312.1 645.7 1,957.8 33 8

'btal BASELINE COSTS 13,753.7 9,252.7 23,006.4 40 100Phytica Contingcaces 866.5 582.9 1,449.4 40 6Price Contingencies 632.6 425.6 1,058.2 40 5

Total PROJECr COSiS 5 .0 40 111

1/ Values may vary due to rounding.

- 28 - Annex 2

IRRAION SUB-SECTR IFAHNIAL ASSISTANCE P-ROJECT

Prqject Cost Summary by Expenditure Account

Foie;p TOWbLA TOW Ee_e Boose Cosk

I. Invasmm CoskA. Tbcbnlak Assistane

1. Loerm T.A.| Local Mvisom 3,198 - 3,198 - 13F*wiga Advis0r 237.7 3,158.3 3,396 93 14Subtota Long-Term T.A. 3,426.7 3,1583 6,585.0 48 27

2. Short-Tabm T.A.Local Consulwncies 500.0 500 - 2FPreign Conulnucies 84.8 1,127.2 1,212.0 93 5Subtotda Short-tem T-A 584.8 1,127,2 1,712.0 66 7

Subtotad Teebbdnal Assistance 4,011.6 4,285A 8,297.0 52 34

1. Slaff aTining 447.6 447.6 895.2 50 42. Usr Grup Tranirg 26.S 26.S S3.0 S0 -

Subtotal Tirabil 474.1 474.1 948.2 S0 4

C. lurbnic, Fblicy and Feasibility Studis 2,422.S 2,422.S 4,84S.0 So 20IX Civil wb¢rb 2,800.0 700. 3,50O 20 14B. Wcles - 892.5 89^ 100 4F. Equipuit

Office Technokgy 62S 62S 100 3Frmihu, 62.S 62.S .Odher Equipsent 29.4 12.6 42.0 30

Subtotal Equipsuecmt 91.9 637.6 729.5 87 3

ToWal Jaestieot Cosis 9,800.7 9,412.1 19,212.2 49 79

11. Recurnat CostA. Ofce Oyedabed

SeciuarilSupport 216 216 9OCficc RenWal 48 -

OM" oelbohnolcgy O&M 5410 S10 2Supplis 220 220 I

Subtotal Oflce Overhad 994 4

B. lclesO&M 91 961 4C. Tael 630 630 3D. h_runDl Lwl Staff

7bohnical 980 980 4AdmiaisUtive 221 221 IMiscellaneous Serices 1OS 105

Subtotal Jngnaa*bl Loa Staff 1,306 1,306

lblal ROerut Cosks 3,891.0 3,891 2

IIT BASELNE COSIS 13,691.1 9,412.1 23,103.2 41 100Phyial Cowencies 852.5 540.6 1,393.1 38 6Pce CotinIes 629.8 388.4 1,018.2 38 4

TAWI PROJECT CO )S I I 641 ga M"4 40 110

- 29 - Annae 2

ECUADOR

IRRIGAON SlUBSEClTO TEkIICAL ASSISTANCE PRQM

Prflect Cost by Component by Year(US$'000)

i994 1995 1996 1997 1998 TOW

A. Public nsdtaitInal Streugtheng andRdorm_

1. MAO 32.0 64.6 116.4 65.0 45.2 323.2

2. Planning Sconiat 28.3 56.6 102.0 57.0 39.1 283.0

3. CeMl Iriaon ecutiv Secaiat 135.3 270.6 487.1 270.6 189.4 1,353.0

4. Reional A4gency Stwetha*Wg and

a. CEDEGE 88.0 175.8 316.4 17S.8 122.8 878.8

b. CREA 117.2 235.0 421.8 215.0 182.6 1,171.6

c. CRM 104.0 208.0 328.0 170.0 230.3 1,040.3

d. El Oro 114.0 228.2 411.0 208.0 179.8 1,141.3

e. DNERHI None 85.0 169.7 305.4 160.0 128.3 848.4

f. INERHI CenMtD 85.0 169.7 305.4 160.0 128.3 848.4

g. PREDESUR 72.0 159.0 287.3 170.0 109.7 798.0

SuboWl Rqoal Agen Seghenin 66S.2 1,345.4 2,375.3 1,258.8 1,081.8 6,726.5Rdbrm

S. Tbchniod and Pblicy StudiesY 432.0 693.0 261.0 14 - 1,386.5

Subtotl Pubi InsL Strengtheing and 1,252.8 2,430.2 3,341.8 1,651.4 1,355.5 10,086.3Rd"m

5. Pubbic Irrnation Investmedt Plan 446.0 1,848.0 1,454.0 - - 3,748.0

C Prvate Sector Devdopment

1. Pit Projeos 720.0 1,589.0 2,745.0 1,440.0 728.0 7,222.0

2. User Group ¶Tining and Oubxacb 240.0 490.0 875.0 537.0 300.0 2,442.0

Subtoa Private Sector Development 960.0 2,079.0 3,620.0 1,977.0 1,028.0 9,664.0

D. Ptoet Ebxcuton Unit 260.0 450.0 760.0 420.0 126.0 2,016.0

"l PROJUCr COStS I=,I M WM, UL 4

J/ esidbily sudies (US$3.0 milion) am ncoluded as pan of the Pubic Irigaion Invetent PFlan, and Pilo Pojctsb.

- 30 - Anne 2

ECUADOR

G4RIGAI SUBECOR TiCAL ASSISANCE FROA

Project Cost Smm by Expenditue Account by Year(US$000)

ITol hiduding Contigencie

1 1995 199 1997 199 TOW

1. lvedment CosA. Ibnical Asdstance

1. Long-tIr T.A.Local Advison 260 703 1lS51.0 618 415 3,547.0ForeIp Advisor 176 592.2 1,356.0 958.7 683.1 3,766.0Subtot LoMnTeeJrm T.A. 436 1,295.2 2,907.0 1,S76.7 1,096.1 7,313

2. Shwrt-sra T.A.Local Consasuhcie 62.4 128 224.6 154 55 624Foreign Consuancis 137.3 274.6 494.3 315 51.8 1,273Subtotl Short-term TA. 199.7 404.6 718.9 469 106.8 1,897

Subtota lbcdbn$c Asdsane 635.7 1,697.85 3,625.9 2,045.7 1,204.9 9,1210

B. 1lning1. Staff aming 25 195.7 347.8 184.3 187.2 9402. User Group Tuning 14 23 29.0 18 98 98

Subtotal Traiing 39 218.7 376.8 202.3 201.2 1,038

C. Studies 806 1,642 1,150.1 800.4 415.9 4,814.9D. Civil Wors 187.3 1,387.6 2,287.9 - 3,862E. %hiaol 442 447 - 889F. Equdpmnt

Ofm"c lbcbnolqgy 263 230.5 200 693.5FurnItre 69 - - 69Odior Equipntw 17 21.6 30.4 69

Subtotal Dupmunepnt 349 232.1 230.4 . 831.5

alwa Invesbtent Costs 2,459 5,645.2 7,671.1 3,048.4 1,822 20,645.4

H. Recurrnt cowA. OffCe O"vrhead

SecetarialSupport 38 53 48 51 56 246Offic RnalW 6.4 23 28 29 31 117.4OfflCT Tchnolqgy &M 84 110 126 135 151 606Supplis 28 41 52 67 70 258

SubtoalW Ofce Overhead 15C.4 227 254 282 308 1,227.4

El Vbicles O&M 91.1 298 287 210 271 1,157.1C flaed 64.3 173 160 164 140 701.3D. inclmeal Loca Staff

Tochakal 109 204 218 228 230 989Admlnhlstauive 38 70 73 77 81 339Mlceilan.ousSorvxcss 41 48 124 III 130.8 454.8

Subtotal Incremntal Loal Saff 188 322 415 416 441.8 1,782.8

lbTawReuentCasts 499.8 1,020.0 1,116.0 1,072 1,160.5 4,868.6

Tasl ROir COr mas ,., MM 4204 L "j/ Cost osmalis hnude pipical and pricot

-31- Ann 3

ECUADORMRGTION SUBSECTOR 1sICAALL ASISTANCE }!ROJW

CONSULTING SERVICE AND SlITES

PRELDIMNARY TERS OF REFERNCE

I. lanelmn Technical Assistance

Pbsition: Project Director

Lation: Quito, Ecuador

Duration of assignment: 48 months

Qualifications: An advanced degree in engineering, management, economics ora related field. At least 15 years of international expeience inproject management, monitoring and evaluation, and agricultuwaldevelopment. Fluency in spoken and written Spanish andEnglish required.

Duties andresponsibilities: The Project Director will work under the direction of the

Minister of Agriculture as President of the proposed NationalCouncil of Water Resources (CNRH), and in close cooperationwith the Executive Secretary of CNRH. His/her specific dutieswill include:

1. Coordinate and manage the Project Executing Unit (UEP) incharge of the execution of the assistance in the decision-maingof the NCWR in policies for selection of investment alternativesin irrigation projects, norms and procedures, transfer ofirrigation systems to their users, and to decentralize theexecution of projects regionally.

2. Assist and coordinate the technical assistants to the RegionalIrrigation Agencies, especially with the monitoring andevaluation of subprojects.

3. Supervising the administrative and institutional strengtheningreform in the subsector.

-32- Anm 3

4. Assisting and supervising the definitions and studies ofmethodologies and work program for the PAT.

5. Assisting and supervising the definitions and studies of normsand procedures, regulations and management systems for theproject execution.

6. laining project implementation personnel.

7. Preparing lbrms of References for studies and short termconsultancies; overseeing implementation of studies andconsultancies.

8. Assisting and supervising the definitions of study related toPriorization Criteria for Irrigations Investment Projects.

9. Assisting and supervising the definitions of a special studyrelated to set Guidelines for Environmental Impact Assessment.

10. Assisting and supervising the definitions of study related tonorms for lechnical Standards for design and constructionworks.

11. Assisting and supervising the definitions of study related toManuals for Operation and Maintenance of Irrigation systems.

12. Assisting and supervising the definitions of study related to theformulation of a National rrigation Investment Plan.

13. Assist and coordinate the technical assistants to the RegionalIrrigation Agencies, especially with the monitoring andevaluation of pilots projects and the strengthening capabilities afwater users' organization.

14. Assist and coordinate the technical assistants to the Regionalkrigation Agencies, especially with the water managementsresources and database inventory.

15. Executing other activities as requested by the President of theproposed CNRH.

- j3 - Anneac 3

IOL Ianz Tchnial Agiatanc

Position: Prect lTchnical Advisor

Locaion: Quito, Ecuador

Duration of assignment: 24 months

Qualifications: An advanced degree in engineering, management, economics ora related field. At least 10 years of experience in projectmanagement, monitoring and evaluation, and agricultumaldevelopment. Fluency in spoken and written Spanish andEnglish required.

Duties andresponsibilities: The Project Director will work under the direction of the

Executive Secretary as Project Technical Advisor. His/herspecific duties will include:

1. Coordinate and give advise to the Executive Secretary of theExecutive Secretriat of the Technical Assistance Project (PAT)in charge of the execution of the assistance in the decision-maldng of the NCWR in policies for selection of investmentaltenatives in irrigation projects, norms and procedures fordevelopment of them, transfer of irrigation systems to theirusers, and to decentralize the execution of projects regionally,and advise and follow up forms and procedures concerningplanning, evaluation of projects and policy-makdng and watermanagement.

2. Coordinate the technical assistants to the Regional IrrigationAgencies, especially with the monitoring and evaluation ofsubprojects. Developing with the Project Director, a plan formonitoring and evaluation with the Regional planning andappraisal Specialists and taining Development Agents.

3. Advise and monitoring the legal and institutional strengtheningreform in the subsector and in special with the Secretariat.

4. Advising and follow up of studies of methodologies and workprogram for the PAT, including administrative and accountingprocedures.

5. Advising and follow up of studies on norms and procedures,regulations and management systems for the project execution.

-34- Ana 3

6. Follow up of training project implementation personnel.

7. Preparing Terms of References for studies and short termconsultancies; overseeing implementation of studies andconsultancies.

8. Advise and follow up the definitions of study related toPriorization Criteria for Irrigations Investment Projects.

9. Advise and follow up the definitions of a special study related toset Guidelines for Environmental Impact Assessment.

10. Advise and follow up the definitions of study related to normsfor bechnical Standards for design and construction works.

11. Advise and follow up the definitions of study related to Manualsfor Operation and Maintenance of Irrigation systems.

12. Advise and follow up the definitions of study related to theformulation of a National Irigation Investment Plan.

13. Advise and coordinate the technical assistants to the RegionalIrrigation Agencies, especally with the monitoring andevauation of pilots projects and the strengthening capabilities ofwater users' oanition.

14. Advise and coordinate the technical assistants to the Regionalrriigaton Agencis, especially with the water managements

resources and datase inventory.

15. Exeuting other activities as requested by the ExecutiveSecretary of NCWR.

-35- Annex 3

mL Feasft Studie

1. Scope of Civil Engineering Works

1.1 Background Review

1.1.1 Sedimentation Study

Bibliography on the subject will be reiewed as wel as the available studies orstatistics on solid washout of the tributaries sving the project wok, in order toestimate the importance that the silt deposits could have on the usefdul life of theworks, and the need to design sand traps or other works in the feede channel.Unless considered essential by Proponent, land rech in connection with thissubject is not contemplated.

1.1.2 Geology

Geological reports on the area will be collected and reviewed, in order toharmonize or adapt the designs to the area.

1.1.3 Geotechnical Information

Available information on land surveys will be coLected and reviewed, withemphasis on borings, test pits, materials assays, seismic profiles, etc., material fills,etc., in order to have the necessary infration fbr the design of the works.

1.1.4 Works Built

Through site visits, and specially through the review of prject plans and theWas built' plan, which will be surveyed by the Consultant, and of fte reports inINERHI's files, a diagnosis of said works will be made, with a view to establish thebasis for the design of the new workL

1.1.5 Existing Infrastructure

Interferences of the project with existing infras will be established.

-36- Anna 3

1.1.6 Agro-Economic Information

Previous studies will be collected and reviewed, including the existingagricultural situation.

1.2 Studies to be Conducted

1.2.1 Hydrology

Consultant will carry out a hydrological study enabling to determine themonthly mean flows, producing statistics covering at least 30 consecutive years Theestimate of the seasonal flow variation for different spillage probabilities will beincluded. In addition, the work's designed freshet will be revewed using the mostrecent information, and freshets of brooks will also be studied in order to design theintakes.

In the methodology the Consultant will point out the manner in whichcorrections, fillings and the extension to historical series will be made in order tohave homogeneous and reliable statistics.

The study should make available a 30-year series of monthly mean lows. Inhis methodology the Consultant must point out the procedure he will use to thateffect, not discarding the use of rainfall-runoff simulation models. Consultant willdeliver the seasonal variation curve for different spillage probabilities.

The study will also include in his report the original and modified statistics,together with a description of the model he might use, clearly indicating theassumptions involved in its designing and in measuring the parmeters of said model.

Furthermore, the hydrological study will include an analysis o freshets, andmust deliver the hydrograms associated to freshets with 25, 50, 100, 200, 500 and1000 years return periods. lime separation for the hydrograms will be two hours.Consultant must use the freshet hydrograms to design the needed diversion works andto design the spillway talang into account the return periods adequate to said works.

Notwithstanding the preceding, all other hydrological aspects assodated withthe design of the distribution civil works must be satisfied.

1.2.2 lbpography

In the technical proposal the Consultant will indicate the special technicalspecfications applicable to the topographic works.

1.2.3 Operational Simulation Model

The Consultant will develop an operational simulation model of the resevi,taking into account different regulatory capacities and different alternafives for the

-37 - ADD 3

reservoir feeding works. In each case the irrigation security asscated with eachdelivery alternative must be determined for the area benefitting from such reservoir.

Complete documentation on such a model will be delivered, including the flowdiagrms, data used and computation programs in diskettes, IBM-PC formats, BASIC,FORIRAN or PASCAL languages.

1.2.4 Engineering Study

1.2.4.1 Conduction Works

A detailed topographic work must be carried out, in order to determine thebest altenative for flow conduction from their natural channels. A drwing with thesuggested solution must be included, showing the location in horizontal projection andsectional view, and detail of the interbasin transfer canal exavations and works

1.2.4.2 Proposal and Preliminary Design of Work

The Consultant must present conceptual solutions, making possible a betterutilization of the works. All works to be modified, should be designed at preiminarylvel.

All works to be designed must include computation of volumes, budget,drawings, technical specifications and execution programs for each work and theoverall project, all at pre-feasibility level.

1.2.4.3 Improvement of Secondary and Other Channels

1.2.4.3.1 Diagnosis of Present Situation

The Consultant must prepare a complete diagnosis on the present situation ofthe entire channel development, including the following aspects:

Intake status, concrete structures and deliveries.Water rights.Organization of water users.

A descriptive report will be delivered, with drawings at adequate scales andwith all necessary background, in order to establish the engineering solutions to beimplemented.

1.2.4.3.2 Preliminary Designs

Consultant must carry out preliminary designs, with computation of volumesand budget for aU works which, according to his own diagnosis, are necessary toassure optimum functioning.

- 38 - Annex 3

1.2.4.4 Analysis of Soil Erosion Problems

Consultant must quantify the areas with erosion problems in the presence of aneventual gravitational irrigation and at the same time recommend the type of irrigationsystem to be applied to avoid the problem.

1.2.5 Identification of the Irrtgable Area

Based on existing cartography, aerial photography, mosaics, orthophotos andthe soil study carried out, the Consultant must identify the area capable of beingirrigated with the resources coming from the reservoir under study.

1.2.6 Surveys

For all works indicated under 1.2.4 above, as well as for the fill areas, theConsultant must carry out the surveys and laboratory assays which will enable todefine in an appropriate way the materials to be used, as well as the material to beexcavated, to build the works. In his offer Consultant will indicate the type andminimum number of surveys and assays to be performed.

Furthermore, the necessary soil sampling and analyses must be carried out, soas to enable complementing the existing information and determine the maincharacteristics of the area soils. The number of samples and analyses should becompatible with the available information in the area, should be performed bylaboratories approved by the Client, and would include the following:

- lbxture next to the distribution of particles by size, expressed inpercentage (%).

- Hydric constants of soils: field capacity and permanent wilting point.

- Apparent density.

- Organic matter content (%).

- Water pH.

- Electrical conductivity.

- Interchange cations (Ca, Mg, K and Na).

- Soluble anions and cations.

1.2.7 Improvement of access and side roads

The Consultant must survey all existing roads, in order to design the requiredworks to achieve their correct functioning.

-39- Annrtc 3

2. Study of the rigation Area

2.1 General Methodology and Background

2.1.1 Description of Methodology

The methodology, procedures and criteria to be employed in developing thestudy must be described as well as the relatonship between its different pordons.This description must clearly state the selection criteria of the model farms. Financialanalysis of the smaller farms will receive special attention.

2.1.2 Collection of Available Background

A critical analysis and an eWaluation of available background will be made,specally of that to be used in the study.

2.1.3 General Description of the Area

In general terms, the Consultant must:

Specify the geographic location, including situation, extension andboundaries.

- Define its physical and ecological charaterisdcs.

- Describe the political and administrative stucure.

- Describe the characteristics of its population.

- Define the services infrastructure by economic activity.

2.2 Diagnosis of the Present Situation

In this chapter the Consultant must define and comment on the maincharacteristics the area under study presents, pointing out the eqecd limitaions forits development. The Consultant must also describe the present limitations of thearea, justifying the development of the proposed irigation prqect. Wgith this purposein mind, the following aspects should be analyzed:

2.2.1 Evaluation of Existing Basic Resources

(a) Climate and Agro-climate

Based on previous studies, it should be detrmined the possibility ofdeveloping crops for each sector of the agzoimatic wne belonging to the area of thestudy. Among other items the following will be considered:

- 40 - Annea 3

Climatic Parameters: Rainfall, minimum and maximum temperatures,evaporation, relative humidity, cloudiness, sun-hours, solar radiation,atmospheric pressure, prevailing wind etc.

Agro-climatic Pammeters: degree days, cold hours, frosts, period ofvegetative recess, potential evapotranspiration, frost free period, etc.

In its technical proposal the Consultant must indicate the methodology ofanalysis that will used for each parameter.

(b) Soils

The Consultant must review previous soil studies where the taxonomic andcartographic units of the area under study are defined. In the report corresponding tothis Chapter the main limitations of the soils, in a summarized form, must bespecified, in accordance with the classifications and the analyses as per theConsultant's own conclusions.

(c) Agroclimatic Management Groups

Units of potential agricultural use must be defined, taking into account thebackground infomation on climate and soils for the entire project area.

(d) Water Resources

In addition to what is stated in the preceding section 2.2, the Consultant mustreiew the background information rearding water quality for agricultural use

2.2.2 Present Agrkult Situation

A productive and economic characton must be made of the presentagricultural situation and the recent deelopment of the whole area under study, interms of the model inms to be defined. At least the following aspects must be Wninto account in this chaactwerition:

2.2.2.1 Present Gross and Net Area of:

Irrigated land (permanent and temporary)Amble dry landNon arable dry landUnproductive land due to drainage problemsUnproductive landForestry use

- 41 - Annex 3

2.2.2.2 Structure of the Agricultural Property:

According to classification by sizeAccording to classification between smallholder and commercial sectorsAccording to characteristics and types of farm units

2.2.2.3 Productive Characterization:

For each identified crop and livestock item, main characteristics andproduction systems under which they are being developed will be analyzed.

2.2.2.4 Economic Characterization of Production:

The Consultant must determine the cost and income composition for each crop,item, model irm, sector and total area of the project, with a view to determine netincomes. A description of demands for manpower for each crop and item throughoutthe year must be included.

2.2.2.5 Markets and Mrketing and Support Institutions

The Consultant will present a brief analysis of present marketing channels ofaicultural products, their financial and economic prices, separating them bymarkets. Information related to credit systems and other support services, such asinput supply, extension, manpower availability, etc. will be added.

3. Agricultunl Development

A development program must be prepared embracing the whole project area,structured on the farm model previously defined. A projection of the epected developmentfor each crop should be made available, per farm model and for the overall project.

The Consultant must define the assumptions under which the general objectives of theagricultural program will be achieved, mentioning the mechanisms to be used to achieve suchobjectives which must conform to the general rules of the agricultur policy in force.

At least the following aspects must be taken into consideration by the proposeddevelopment programs:

3.1 Proposed Production Structure

According to the main production factors defined for the project area, the mostsuitable production alternatives will be chosen, considering their relative profitabilitiesand advantages, climatic conditions, soils, benefit-ost ratio and marketing, presentand projected land tenure system and renewable natural resources conservation

- 42 - Annex 3

criteria. The yields or crop patterns to be adopted must be clearly justifiedshould they differ from the present situation.

3.2 Determination of Required Investments

Necessary investments to achieve the proposed development program must bedetermined and analyzed, both in physical and monetary terms. Expropriation costsand others indirectly involved in the project must be included. A realistic bankfinancing must be considered.

4. Irrigation Development

4.1 Adapting Farms to Irrigation

The most adequate irrigation systems or methods should be recommended,considering the possibility of establishing highly efficient systems, clearly justifyingtheir design parameters and indicating the system effliciencies at farm, distribution,etc. levels.

Necessary studies should be carried out for the preliminary work design anddefine the costs of irrigation start-up or improvement for each of the identified farmmodel.

4.2 Irrigation Water Needs

The water needs at farm, sector and entire project area levels must bedetermined in terms of the proposed development programs.

4.3 Hydric Balance

Total irrigation area will be detemined from an operational simulation modelof the reservoir, considering the available resources as 'input', and the water deliveryfor irrigation and estimated evaporations and losses as 'output.' Deliveries will bedetermined based on irrigation rates, or water demands, estimated according to thedevelopment plan. The simulation model will be prepared on a monthly basis, unlessthe Consultant shows that an annual model or any other time unit is equally valid.

5. Operation and -intenance Costs of the Irigaton System

Personnel, equipment and machinery requirements will be determined, and annualoperation and maintenance costs of the system will be calculated, by water availability and byarea unit. This will be done by farm model, for each sector and for the entire area.Thaining and technical assistance costs for the initial opeation of the project must beincluded, and the financing systems defined.

- 43- Annex 3

6. Implementation Programs

The Consultant must present alternative programs for project implementation instages. Based on the implementation programs, expressly defining the main activities to becarried out during the project execution period, goals and committed resources must bedefined.

7. Economic Evaluation

Economic evaluation will be perfomed in order to determine the repment capacityof the beneficiaries and, therefore, their installments and repament period to Government.

Project evaluation will be performed both in economic and social terms, and in bothcases the updated net benefit, internal rate of return, the benefit-cost ratio and the capitalrecovery time will be calculated. Tb these effects, FAO recommended updating rates andnorms for agricultural investment projects will be used. Finally, Consultant must analyz theinfluence that a possible farim subdivision might have on the project rate of retun.

Based on the determination of the works proposed by the Consultant, unit cost ofoperations at the reservoir site will be determined, and budget and construction progam willbe prepared.

Considering all this and the benefits expected from the project, the correspondingeconomic evaluation will be made, calculating project's present net wlue (VAN) and theinternal zate of return (IR) for a 30-year period.

7.1 Evaluation of the Development Situation

The stated development situation must be evaluated, in der to clearly identify costsand benefits attributed to the water allocation generated by the project. In each analyzedcase, the calculation of the net incremental man-day tate of return must be included.

7.2 Levels o Employment

Leves of employment must be defined, distinguishing between employment generatdunng the constructon period from fhat conresponding to the normal operadon of theproject.

7.3 Profitabity Evaluation Criteria

At least the criteria of the present net walue (VAN) and the internal rate of returnMR) must be used to measure project profitability. Indirect benefits credited to the projectmust also be subject to qualitative and quantitative analysis.

-44- Annex 3

7.4 Sensitivity Analysis

A sensitivity analysis, both at farm and overall level, must be carried out, withrespect to costs, incomes, rate of discount used, implementation period and rate ofincorporation. With respect to these parameters and others which the Consultant maysuggest, it must also be analyzed how much they could vary before the project becomesunprofitable.

8. Legal Aspects

In the preliminary design of the works, the Consultant must take into considerationthe legal and administrative background supporting its feasibility with respect to water nrghts,use of private land and interference with existing works, whether private or public.

9. Environmental Aspects

EvWaluation of the direct or indirect impact the project may cause to the environment,must be made.

The study will basically focus on identifying the environment factors the project willmodify, and determine and quantify the positive and negative effects it would create.Furthermore, measures must be proposed to prevent and/or reduce the negative effects thatmay be caused both during construction and operation of the works.

Evaluation of expected specific environmental impacts will include as a minimum thefollowing:

(a) Description of existing basic environment conditions.(b) Description of possible environment impacts the project may produce, modifying site,

technology design, etc.(c) Comparison, from the environment point of view, of other design options.(d) Proposal of measures to mitigate the identifted negative effects, with its costs and

follow-up measures.

The information must be structured and delivered in the manner of an EnvironmentalProfile and following the norms on the attached check list. The Consultant must also checkwith affected local groups and NGOs regarding ideas with respect to the project,environmental aspects, cost incidence and benefits, institutional relations, etc. The reportmust include a summary of consultations and concerns, supported by an annex contaning theminutes of each meeting with a detail of questions, answers and comments made by theparticipants

-45 - Anna 3

10. Cost Recovery

In accordance with the existing policy, the Government would recover directly aportion of investments made in irrigation works. lb this effect, a separate collection fromthe project beneficiaries will be determined, depending on their socio-economic category andthe net benefit generated by the irrigation project. Therefore, it will be necessary for theConsultant to establish a farm model for each representative category in the project area, forwhich a financial evaluation at farm level will be made.

11. FSnal Feasibility Report and Preliminay Design

The Consultant must prepare a brief and precise report, incorporating in Annexes, inan orderly manner, every calculation detail, numerical information and cost analyses.

Every table and figure must be assigned a number. Bibliography used, identified witha number, will be listed at the end. Every time the speciflc bibliography is mentioned in thetext, the corresponding number should appear in parenthesis.

-46- Anna 3

IV. Peliminry Guidelies for the Imlementation of Pilot Projects

Develop a general work plan for they. Prepare awork plan for the year in thecontext of the life-of-project design.

-Include the study outlined in 18.2, and focus on organizing and strengthening waterusers' organizations;

-Emphasize training of farmers to manage their association, operate their system,improve on-farm water management, and improve productivity through better farmmanagement and cultural practices; and

-Revise the general work plan and add detail, based on the results of the benchmarkstudy (see 18.2).

2. Ca out a benchm£k stuy of the pilot project area. Define and complete abenchmark study of the pilot project area in order to: design more detailedinterventions to train farmers; develop a more detailed and refined work plan; and tomeasure progress toward objectives.

-Focus study on technical irrigation, agricultural, economic, and social aspects of thearea;

-Include for each farm, the irrigted and dry land areas, water use patterns andtechnologies, cropping patterns, cultural practies, and a detailed farm budget withincome and expenses;

-Evaluate the irrigation system including needed rehabilitation, operation andmanagement practices, and efficiency; and

-Review and analyze socio-economic aspect of the irrigation system including wateruser oanitions, income levels, conlicts and other social aspects that might bear onsuccess of the pilot project.

3. Help to o Ie and develo a water users association. Assist firmers to orgwnizeand strengthen a water users' organization, or if one exists, help to forify andstrengthen it.

-Provide specialized and on-the-job training (see 18.4) and help prepare legaldocuments as needed;

-Become acquanted with and establish a friendly rlationship with the official andnaural leaders among the farmers;

-47 - Annex 3

-Meet with water users regularly on a group and individual basis both for trainingsessions and for social and events; and

-Help the association to elect officials from the water users' association to representwater users from the pilot project in various venues and to serve as a board ofdirectors for managing their collective interests and needs.

4. Train water users to operate and manage their system. Give various kinds of formaland informal training to water users.

-Provide training in democratic and oTganizational processes to facilitate organizationand strengthening of the water users' association;

-Give special training to the Board of Directors to effectively manage the association.Tlach them to plan and direct various operation and maintenance activities (e.g.,organizing work parties or mnngas), collect water tariffs, contract for specializedservices and interact with various other entities, including the PMU, as ofcialrepresentatives of the association;

-Give all farmers intensive, special taining in: organization and administration ofwater userse associations; on-farm water management; primary and secondary systemsoperation; water measurement and cost recovery; and irrigated crop production. Suchtraining sessions will be given during a morning or afternoon, with one or two subjectareas being treated;

-Once these courses have been given to all farmers in the pilot project, provide day-to-day advisement and follow-up training one-on-ne or and with small groups offarmers, on a more spontaneous basis;

-Repeat the special, intensive training sessions, as needed, throughout the life of theTAP in order to enhance understanding and strengthen bonds among members of thewater users' association;

-Hold field days to illustrate principles taught in prior formal and infbrmal trainingsessions and to demonstrate their applications; and

-Give, at field days, specific "hands-on" training, build esprit de corps, discoverproblems and resolve conflicts.

S. Assess and secify the need for systm rehabilitation or completion.

-Working closely with the water users' association and individual farmers: identifyproblems with the system's infrastructre; propose solutions; and prepare a generalplan for financing the proposed improvements;

-48 - Anu 3

-Based in this exercise, advise farmers on the funding available for such investmentsunder the pilot project and educate them about new government policy for repaymentof costs;

-Develop detailed design plans in conjunction with the engineering department of theregional agency; and

-Prepare, in consultation with the water users' association, contractual commitmentsfor the repayment of debt under terms negotiated with the association.

6. Monitor construction of project rehabilitation or completion.

-Provide oversight of the construction process and facilitate consultation with waterusers about progress and any needed modifications in design;

-Help organize farmers to provide in-kind inputs that may have been agreed to in thefinancial plan;

-Train farmers to use the rejuvenated system, including the use of water measuringdevices installed as part of rehabilitation;

-Hold an additional special training program to teach farmers the collective andindividual benefits from measuring water use. Stress the need to eliminate subsidiesto inefficient system management and individual on-farm water use; and

-Help the association to collect water tariffs on measured water use.

7. Repeat the special intnsiyescourses.

-Repeat the special intensive courses mentioned in 18.4 above in light of theexperience from measuring water use and the experience gained by the farmers;

-Help the water users' association to fully internalize the costs of operation andmanagement of their system; and

-Provide additional training, both formal and informal on a needs basis throughout thelife of the project.

-49- Annex 3

V. Preliminary Terms of Reference for the Development of Viable ProductionSystems In Iigad Areas

A. OBJECrIVES:

1. Determine, per region and public irrigation project, the net benefit of the main crops,based on presently used and improved technologies. In addition, establish tlleimportance of the irrigation component (under present and proposed tariffs) in totalproduction costs.

2. Determine the most suitable alternatives to increase individual crops and/or acombination of crops, as well as improving productivity and existing irrigationtechnologies to maximize the economic rate of return for different sizes of farmingunits in irrigation projects.

B. SPECIFIC ACIIVrITES:

1. Identify the present and potential main crops in public irrigation projects. In the caseof potential main crops the possibility should be analyzed to include products ofdomestic consumption, export products to substitute imports, and products forindusti use.

2. Identify the possible sources (foreign and domestic) of technological information onirrigated crops, which could be made available through coopertion agreements.

3. Determine empirically and based on primary and secondary information, the valueproduction costs per hectare, excluding the present irrigation value, for the mainirrigated crops, according to the different potential and existing technologies.

4. Determine the gross and net income for the main irigated crops under differenttechnologies and price scenarios, based on a sensibility analysis.

5. Estimate the incidence of irgation tariffs on the most profitable crops under differentpresent and potential technologies.

6. Analyze the economic impact of establishing a aiff that recovers opemtion,maintenance and investment costs. Discuss and recommend triffs and technologies.

7. Define the best crop altenatives as wel as rotation systems in the different projectareas. Altematives must include recommendations on the most convemienttechnologies based on the present state of technological knowledge.

8. Define as specifically as possible the research priorities for pilot projects and calcuatethe cost of the proposed research progamsm

-50- An= 3

9. Determine specific research activities where the assistance of foreign and domestcinstitutions could be obtained, and identify relevant local and internationalorganizations.

10. Define, the methodology and efforts required to cafry out an efficient technicalassistance program, based on the selection of crops, production systems and tpe ofbeneficiaries. Calculate the cost of technical assistance progmms.

11. Define the need for technical personnel for research and technical assistanceprograms, and their availability in the country. The time required and the cost ofinternational personnel should be calculated in detail.

12. Calculate the ex-ante cost-benefit ratio for the research and tchnical astanceprograms.

C. PERSONNL REQUIREMES

1 ternational Level

1.1 Agricultural Economist Cream Leader)

A professional graduated in economy, preerable with an M.Sc. or Ph.D. degree, withexperience in administration, design and evaluation of iration projects. At least five yeaof experience in Latin America. Fluent in Spanish.

1.2 Specialist in Irrigated Agriculture

A professional graduated in agronomy or economy, specializing in iigated agicule, withan M.Sc. degree, at least five years of eperience in research, prefeable in irrigatedagriculture in developing countries, experience in Latin America and oical agcluedesirable. Fluent in Spanish.

2 Local Personnel

2.1 Specialist in rrigated Agriculture

A proonal with an M.Sc. degree, with at least three years of professional epeience inthe area of research and technical assistance in irigated agriculture.

2.2 Production Speciali

A professional with an M.Sc. deree, with at Least tee years of experience in producdionproams. Experience in irrigated production desirable.

-5S1 -Amex

2.3 Tlchnical Assistants

Two/he technical assistants per pilot project. A total of 16 technical assistants areanticipated.

2.4 Information Analyst

A profassional graduated in statistics, with at least three years of professional experence.Knowldge and experience in computation essential.

D. TM LIMIT AND COST ESTIMATE:

Three and a half months estimated for the execution of the project and an estimated cost ofS240,000.

-52 - Annex 3

VI. Preliminairy Trms of Reerence for Studtes on Pofleles. Markets and Prices fogr.etad Cro

A. OBJECllVE:

1. Analyze the potential market and marketing problems, international and/or domesticprice structure for products presently grown or having a good developmentpotentiality. Market and price studies should be designed to support the productionselection to be defined in the 'Study on Agricultural Production Systems'.

B. SPECIFIC ACWlVITIES:

1. In coordination with the "study on production systems", determine the products whichshould be considered in the irrigation projects.

2. Classify the products in tradable and non-tradable goods.

3. Analyze the incidence of specific policies that affect or may affect prices of theselected products at farm level. This should include price controls, export and importtaes, and taiffs and bans on import or export of products or inputs needed forproduction.

4. Define the relevant markets for each product, taking into account the possibility ofdomestic consumption, increase of exports or import substitution. This productclassification does not imply a preference, and should be used as a guidance toprepare specific studies.

5. Analyze domestic and export markets potental for each one of the selected products.In the case of products for industrial use such as cotton and sugar cane, the studyshould include a market analysis for by-products and processed products.

6. Analyze for each of the selected products, the marketing problems which should beconsidered during project implementation phase. The market analysis should befocused with greater intensity on the export products where quality, transportation andpacking requirements must be given particular consideration.

7. For each one of the selected products, analyze price trends and seasonal variations inrelevant domestic and export markets.

8. Based on market and price studies, recommend the products which should bepromoted in the irrigation projects; also analyze market and price risks, filures andlimitations for their future expansion.

-53- Annex 3

C. PERSONNEL REQUIREM IS:

1. Interational Level

1.1 Economist Specialist in Marketing (Consultant Level)

A professional with a degree in economics or agricultural economics, PhD or M.Sc. degreepre&rred; with at least five years of experience in agricultumal marketing tariffs and priceanalysis. Specific work in Latin America desirable. Fluent Spanish.

2. Local personnel:

2.1 Economist Specialist in Marketing Cream Leader)

A professonal with an M.Sc. degree in economics or agricultural economics; five years ofexperience in merchandising, tariffs, marketing and price analysis of agricultural products.

2.2 Price and Market Analyst

A prokssional with an M.Sc. degree in economics or agricultural economics; three years ofeperience in price and market analysis of agricultural products in tropical areas.

2.3 Technical Assistants

One technical assistant per pilot project

2.4 Information Analyst

A professional with a degree in statistics, with at least three years of professional experience.Computer knowledge and experience essential.

D TIME LIMi AND COST ESTIMATE:

Three and a half months is estimated for project execution with a cost estimate ofUS$90,000.

-54 - Anne 3

VII. Preliminary lrns of Reference for Study on Water Tlriffs and Cost Recoveryin Public Irrigation Projects

A. OBJECTIVE:

1. Define a methodology based on a cost-benefit analysis to estimate the tariffs waterusers should pay in each of the public irrigation systems in operation. Thismethodology must be analyzed in two irrigation systems (the pilot project and anotherirrigation system) for each regional institution.

B. SPECIFIC ACTIVITIES:

1. Develop the theoretical and mathematical frame of the methodology to be used incalculating the tariffs. Specify procedures and parameters to be considered in theanalysis of costs incurred in the project, and determine the benefits generated and therepayment capacity of farmers.

2. Select in each regional institution, two irrigation systems to calculate the tariffs.Whenever possible, systems should be selected presenting different conditions (social,economic and technical), so that the methodology may be tested under differentsituations.

3. Apply the methodology to the selected projects and obtain the corresponding tariffs.

4. Prepare a manual with the methodology and make it available to the regionalinstitutions and the proposed CNRH.

5. Share and transfer the conclusions and possible recommendations of this study to thecorresponding personnel of the proposed CNRH and the regional institutions, so thatfollowing the approved methodology they may be able to calculate the tariffs for eachone of the other projects under their responsibility.

C PERSONNEL REQUIREMQN':

1. International Level

1.1 International lbchnical Consultant

A professional with a Master or PhD degree in agricultural economics. Must be specializedin the area of economic evaluation and irrigation.

The international consultant must work with the party responsible for the study in order todefine the methodology to be applied in calculating the tariffs (3 weeks), and to consolidate

-55- Annex 3

with the rest of the team the cost-benefit analysis of the sytems conserd in the study(3 weeks).

2. Local Personnel

2.1 Agricultural Economist Cream Leader)

A profesional with a Mlaster or PhD degree in agnicultural economics. Must be specializedor have experience in the area of economic eWaluation and irrigation.

2.2 Agricultural Economists

A professional with a Master degree in agricultural economics. Must be specialized or havexperience in the area of economic evaluation and irrigation.

2.3 Agricultal Engineers

A professional with a degree in Agricultual Engineer, specalized or with experience inirrgate crops

2.4 Resachers

TWO profsionals with degees in economics or agronomy, with experience in the area ofirrigation, with knowledge in computers prefered.

The group of economists together with the intrnational technical consultant will prepare themethodology for the calculation of tariffs. Once the methodology has been established, thepersonnel would be divided in two groups, so that each group will be rewonsible to collectan consolidate the basic information required from three institutions. Initialy a workinggroup would be assigned to the regional INERM and CREA; and another for CEDEGE,CRM and PRBDESUR.

1A TIME LIMIT AND COST ESTIMATE:

Four months esfimated for project execution and a cost estimate of US$75,000.

-56- AnneK 3

Vi Prelminary Tlerms of Reence for the Inventory of Undrund and Surfaee

A. OBJECTIVES:

1. Present a reliable, quantitative and qualitative inventory of surfIce and undegroundhydric resources in Ecuador.

2. Based on the homogenization and updating of existing information, carry out ageneral compilation of all studies in order to have an overview of water resources inthe country.

3. Evaluate the hydro-meteorological parameters to enable the identification of the waterresource availability in the country's hydrographic watersheds.

B. SPECIFIC ACTIVITIES:

1. Prepare methodologies including calculation rules to obtain data in areas withoutsuffacient information.

2. Describe the characteristics of the watershed, including the general data ontopography, hydrography, vegetation and soils.

3. Collect all basic climatic information on temperature, humidity, winds andevaporation. In addition, pluviometric information, its updating, arrangement andrliability analysis should be included.

4. Complete missing inbrmation and expand the series to an homogeneous period.Drawing of pluviograms, isohyetal lines and intensity-duration-frequency curves.

5. Elaborate a climatic regionalization.

6. Collect all the hydrological information, its updating, arrangement and analysis fordata consistency.

7. Complete information based on extrapolation of data from existing stations toirrigation areas, and fill in the missing data by correlation in order to completemonthly flow series.

8. Gage a rain-flow model.

9. Prepare hydrograms and duration curves.

10. Present a balance at regional level (hydrological infrination).

-57 - Annex 3

11. Estimate probable floods with different periods of occurrence, as well as the volumeof sediments camed by the river.

12. Express opinions on the quality of the existing hydrometeorological net and presentalternatives of gauging campaigns and installation of hydrometric and pluviometricstations.

13. Carry out an inventory of wells, capacity, water quality, water tables andpermeability.

14. Based on the infbrmation about legal concessions and grants from INERHI, carry outan inventory of current uses of water for: (a) drinldng water supply, (b) irrigation, (c)hydroelectricity and (d) other uses.

C PERSONNEL REQUItEMEIS:

1. IaternatIonal Level

1.1 Technical Coordinator

A professional with a M.Sc. or PhD degree in Hydraulic Engineering; at least five years ofexperience in meteorological and hydrologic aspects and preservation of water resources andthe environment. Experience in Latin America desirable. Fluent Spanish.

2. Local PeNrsonnel

2.1 National Study Coordinator

A professional with a M.Sc. or PhD degree in Hydraulic Engineering; at least five years ofexperience in meteorological and hydrologic aspects and preservation of mater andenvironmental resources.

2.2 Geologist

A professional specialist in geology, with at least two years of experience in soils and soilanalysis; knowledge of computers preferred.

2.3 Hydrologist

A professional specalized in hydrology, minimum two years of experience in flows, gaugingand water quality analysis; knowledge of computers preferred.

-58 - Annex 3

2.4 Research Assistant

Wo professionals specialized in hydrology, minimum two years of experience in hydrologicand meteorologic aspects.

2.5 Draftsman

A technician specialist in technical drawing, minimum two years of experience as draftsmanin works connected with hydric and watershed resources.

2.6 Computer Itchnologist

lTchnician with a minimum two years of experience in management of systems forprcsing meteorological and hydrological data.

2.7 Bilingual Secretary

Administrative assistant with a minimum one year of experience and knowledge incomputers. Fluent English.

D. TIME LlMll AND COST ESTMATE:

Fifteen months estimated for project execution and a cost estimate of US$305,000.

-59- Annex 3

Ie. Preliminaly lhms of Reference fgr the Management of Hydro2hiWatersheds

A. BACKGROUND:

Hydrographic watersheds constitute a natural geographic division from the hydric point ofview, and they embrace the teritory limited by the dividing line of the waters it drains up tothe river reaching the ocean.

The general objectives of a program for the complete management of a hydrographicwatershed, are basically the following: (a) protect and preserve natural resources--water,soils, flora and fauna--present in the watershed's area of influence, as well as optimizing theuse of such resources under a scheme of equilibrium with the environment; (0) minimize thersks associated with events of extreme hydrometereologic nature and (c) to have availablethe socioeconomic and technical information to improve and adjust the activities for naturalresources management.

B. OBJECIMVES:

1. The main objective of this study is to carry out the diagnosis of the current situationof the country's hydrographic watersheds. Based on such a diagnosis the outline ofthe program for the integral management of watersheds will be defined, andwatersheds which should be included in the aforesaid program will be identifiedaccording to the degree of urgency in being incorporated.

2. Outline, at feasibility level, the program for watershed management for two criticalhydrographic watersheds, to be defined possibly one in the northern inter-andeanzone, and another in the central inter-andean zone.

C SPECIFIC ACTVITIES:

1. Prefeasibility

a. Background collection

Collection of primary and secondary information to carry out the characterization ofeach watershed at national level, covering the following aspects: (a) naturalbiophysic; (b) socioeconomic and environmental; and (c) existing infrastructure.

Identification and analysis of relevant programs and projects related to watershedmanagement that public and private institutions are carrying out or may carry out inthe short and medium tern.

- 60 - Annex 3

Collection and delivery of background information will be arranged methodically andwill consider the following aspects:

- Cartography, including aerial photography and satellite information.- Climatic background: temperature, rainfall, evaporation, relative humidity, etc.- Geology, geomorphology and hydrogeology.- Water quality and contamination.- Water use.- Development infrastructure.- Erosion.- Forestry inventories.- Vegetation.- Phytosanitary aspects- Flora and fauna.- Socioeconomic background.- Legal aspects.

b. Dhignosis

Qualitative and quantitative identification and analysis of the principal problems andnatural phenomena affecting each of the watersheds at national level, describing theoriginating causes and their more relevant interrelationship. The more conflictiveareas will be demarcated from the point of view of system imbalance, and projectionswill be made of the watersheds' present situation for well-defined horizons.

The main elements to be considered by the consultant in this phase are:

Cartog=4y

Basic cartography and thematic cartography, depending on the watershed area and thelevel of detail used.

Aerial photography and satellite pictures: the most updated material available for thearea under study will be used.

Climate

Climatic definition of the watershed and its principal characteristics. As a minimumthe following variables will be considered: (a) temperature, (b) evaporation, (c)rainfall and (d) relative humidity.

In addition, the corresponding hydric balances and thematic charts of Isohyets andIsotherms will be presented.

Geology and Geomorphology

-61- Annac 3

Description and geological delimitation of the watershed and the maingeomorphological processes in the area.

Identification of formations presenting extraordinary and unique characteristics, with ahigh scientific and/or educational walue, areas of touristic and/or recreational interest,as well as thermal outcrops or other interesting phenomena.

Soils and Utilization Capacity

Description of soils and utilization capacity. This report will be prepared based onexisting information.

Preparation of a thematic chart, showing the types of soils, limiting factors and theutilization capacity of soils in the watershed.

Land TInure and Present Use of Soils

Land tenure will be analyzed and limitations in applying the programs and projectsproposed in this study wiU be identified.

Characterization of vegetation existing in the area. This infbrmation will be submittedby means of a detailed cartography. Arrangement of existing vegetation types andspecies, and their present condition of development will be specified.

Socioeconomic Analys

An analysis will be made of:

- Demographic aspects and population dynamics.- Educational levels and work force qualification.- Socioeconomic indicators and poverty levels.- Global socioeconomic indicators of the watershed.

L1g Asc

Analysis of the legal provisions affecting the watershed, in relation to the purpose ofthis study.

Environmental Aspects

Environmental problems of the watershed will be identified: water contmination,erosion, generation of solid and liquid waste, etc.

Diagnosis of the present situation and the specific activities enabling the solution ofproblems identified in the watersheds, should be aimed at the following aspects: (a)

-62 - Ann 3

management and control of forestry and soil resources, (b) management andpreservation of hydric resources, and (c) flood control and river bed management.

2. Feasibillty

a. Watershed Development and Management Plan

According to the diagnosis of the present situation, a Development and ManagementPlan will be proposed for two selected watersheds. This Plan should include the mainactivities to be developed, in order to obtain the optimum utilization of existingresources and solve the problems identifed with aspects of Watershed Management.

The Wtershed Development and Management Plan will include actions in thefollowing areas:

Eorestv and SoiMagent

Program for the recovery and sustained utilization of natural vegetation.Progrm for the recovery of eroded areas, aimed at stabilizing sectors subjectto severe erosion processes.Identification and proposal of projects contributing to strengthen theimplementation and management of the forestry legislation in force.

Propose strategies and general lines of action to develop the hydric resources,inciuding studies to be carried out for the supply of future demands andgenel development of the watershed hydrc resources. The planning horizonshould be for a minimum of 25 years.Propose a program aimed at implementing an information system coveringlegal, administrative and physical infrastructure aspects in the use of thewatershed hydric resources.Propose a preliminary monitoring plan for quality and quantity control ofexisting hydric resources.

Flood Control and River Bed Management

- Propose technical solutions, at preliminary design level, of the required riverdefenses to protect critical sectors

- Define in general terms the studies and research required to regulate the riverbed use, as well as the cost associated with the development of such activite

- Identify actions needed in order to have a systematized cadastre of the highrisk zones within the watershed..

- Identify plans to regulate floods, with a preliminary estimate of the resrvoircapacity and costs.

-63 - AnDex 3

b. Structure of Programs and Projects

At this stage, programs and projects at design level, identified in the VUtershedDevelopment and Management Plant, will be developed to allow an inteted balanceof the watershed system. All background to define and execute the recommendedtechnical solutions will be supplied, including its economic valuation. Thequantitative and qualitative needs of hum. resources for each one of the activitiesand programs will be defined, as well as the respective work schedules.Furthermore, an investment timetable according to the priority classification of theactivities defined in each progrm will be included.

C PERSONNEL REQUIREIENIS

1. Iternatlonal Level

a. Project Tbchnical Coordinator

A professional with a PhD or M.Sc. degree in Management and Planning of HydricResources; with at least 10 years of experience in watershed and hydric resourcesmanagement. Experience in Latin America desirable. Fluent Spanish.

b. Specialist in Soil Conservation and Recovery

A professional with a PhD or M.Sc. degree in the area of natural resources; with at least 10years of experience in soil conservation and recovery. Experience in Lain Americadesirable. Fluent Spanish.

c. Specialist in Natural Resources Economics

A professional with a PhD or M.Sc. degree in the area of natural resources; with at least 10years of experience in natural resources economics. Experience in Latin America desirable.Fluent Spanish.

d. Specialist in Environmental Impacts

A professional with a PhD or M.Sc. degree in the area of natural resources; with at least 10years of experience in environmental aspects. Experience in Latin America desirable.Fluent Spanish

2. Local Personnel

Seven specialists are required in the following areas:

a. Hydrologyb. River Defensesc. Geology and Geotecnique

-64- Ann 3

d. Hydraulic Workse. Forestry Resources Cartography and Evaluationf. Forestry-Agricultural Extension

The seven local specialists must be professionals with a PhD or M.Sc. degree in the requiredarea; with at least 5 years of experience in the area where they will work in this study.

a TIME LIMIT AND COST ESTIMATE:

A period of 12 months is estimated for project execution and a cost estimate of US$675,000.

65 - Annex 3

X. U a ¶rms of Refeac for the 11osls and ensus of Private

A. OBJECtVES:

1. Carry out a diaposis of privat irrigaon at national level and based on it prepare theguideines for a promotion program for tis setor. The study must define the specificvariables of a possible credit progm (amortzaton peiod, intest, etc.).

B. ACTIVITIES:

1. Carry out a private irrgation census at the national level.

2. Investiga and colect secondary information on private irrigtion.

3. Asses the situation of private irriftion in quantitative and qualitaive terms, andanalyze its economic pfance.

4. Prepare the guidelines for a plan or program aimed at the development of privateirrgation in the country.

C IPERSONNEL REQUDUIREMEI:

1. Local Nrsonnel

1.1 Hydraulic Engineer (National Priject Coordinator)

A prossional with a degree in Hydwlic Engineering, with at least five years of epeiencein hydrologic aspects and management of irrigation projects. Knowledge of economicevaluation and nahual resources ement prefred.

1.2 Hydruic Engineers

TIk profssionals with a degree in Hydruic Engining, with at least five years ofaeeience in hydrologic aspects and irrigation projects management.

One of the engineers iould work full time (8 months) and the other part time (four months).

1.3 Agricultural Economist/Credit Specialist

A professional with a degree in Agricultural Economica Experience in economic evaluationof irigated agriculture and agricultural credit required.

-66- Annex 3

1.4 ¶Ichnical Assisats

71w technical assistants per regional istitution

1.5 Infornation Analyst

A profssional with a deg in statistic.% with at least thWe years of professional expenence.Knowledge and experience in computers desrable.

IL TIME LMT AND COsr ESTEMAT

Eight months esimated for study extion and a cost estimate of US$150,000.

- 67- Annex 3

XI. Reporting Statements and Reports

Three reports will be submitted for each one of the required studies:

- The first one will be a progress report to be submitted in the middle of the periodestimated to prepare the study.

- The second one will be a diift report on the completed research. This document, withits corresponding annexes, would contain the prlminary study with diskettes and allthe information collected, as well as surys, conclusions and recommendations,among other things. This will be submitted 21 days before the time limit agreed tofinalize the study, with the purpose that it may be weviewd prior to its approval, with15 days left for the document to be corrected acording to the suggestions andrecommendations made by MAG, the proposed CNRH and/or the regionalinstitutions.

- The third report, will be a final repoft conaining the sug ons made and will besubmitted 15 days after the return of the peliminary report with the respectivesuggestions, thus fulfilling the time limits establhed for the preparation of the study

All submitted reports will include costng, incorporating me schedus duly detiled by taand investment disbursements.

ECAPDOR

UWION SUIIE R 1BHWL ASlBACT

IPEMETTION PLA

PROJECT ACTIVITIES IMPLEMENTATION PERIOD.~ ~ ~ ~ ~~~~X .ZI al

(Quass) _Ssi) _ _AGENCY/

II II N INSTTUTIONAListlb 2uI1Yar I 3rd 1m 4& j r1Sth yew RESPONSBILiTY

CODE DESCRIMTON Q3 I | I | I | 111111

A. PROJCT EXECUTING UNIT (UEP) ._,._._..__

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A.6. Ril994wokplan *rUEP X UEP, MAG, WE,

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A. S Ogn= pied gait-up p _ x UEP, MAO

A.9. Pmpemaal wk plan for UEP X X X X | | |__ UEP, MAO

A.10. Piwide ebuicals upport to CNRH . X X | X I X X x I 1

A.11I ooeinb t prame x x x x a p

A.12. Mange pummew and di&Aneoo XmmX x - x x | x - x - - UEP -

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PROJECT ACTIVITIES IMPLEMENTATION PERIODIMPLEMOn

(QuarS) e ) AGENCY/INSTITUTIONAL

1st Year 2ad Yar 3nl Yw 41h Sa 5th RESPONSIEILETY

CODE DEISCRIFION Q1 Q2 Q3 Q4 I n I n I I1 LL n

A.15. Pipau em-annaproject zpoi withinputfrom X X X X IX X X X UEP

A.16. CoAtmc am-oa pmjec audits - - JR X I X I Hx I 11x UEI Comw ozfa

A.17. 0pize mid-tm zew and wrbhop UEP|X Outd Con|ibn|B

IL INDTrUTNONAL DEVELO'MENT

31. MA AND PLANNDiG SECRELAI

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3.l.b. Cosbactn1oir -tetcomeosnt| | X X X X X | MAO,P"anni Seeauat,____________ ~~~~~~~~~~~~~~~~~~~UEP

B.l.c. Caatmct iniczmez*I Staff X X X X X X X X X I I MA, niaSecSetarc t

3.1.d. Purells, *quipment and vehicle. x X MAO, P1anuiag Secretariat,____________ ~~~~~~~~~~~~~~~~~~~IUEP

3 BI.e. OraniNesaff aWiiz an kentify patticipan X X X X MAO, Phnniz Secideriat,_ _ _ __. | hahdioaofT.A.: Cu_ _ _ _ _ __Lve l l l | X | | | l ll | | P I ni g e c | 4UEP

3.1.f. Buluati of cT.A.: Co.KdmaWt and tzainiz XX MAO, Plannizg Secetariat,I I I ~~~~~~~~~~~~~~~~~~~~~~UEP

ECUADOR

IRRI4TION ,SUIISECR TRaFfIC4L ASCE JECT

DALAENTAON MAN

PROJECT ACTIVITIES IMPLEMENTATION PERIOD. MPLEMENTIG

(Quas ) (Sanest) MENCYI

1st 2nd Year 3rd Yew 4th Year | Year RESPONSIBILITY

CODE DESCRIT1ION Q1] I IQ2 I _ I IOnL

3.2. CENTRAL IRIUGATION EXBCUTVE SECREDARA (CIES)

B.2.a. P.pa TORsa fr loX .n comuln1 X UEP,CNRH 2B.2.b docat loqbrom oozlhnb X X X X X X X UEP, CNRH, CIES

R.2. ContXat inXrsmX staff X X X X X X X X X CNRH, CIES

W.2A. Puthas eqinad oWh ckls X X UEPI CIES

3.2.e. Ptepaz TM for 5,orthotm co_mics - X X | X - X | X - CES UEP

B.2.f. Contat d-ot-wrn coaaulcs X X x x 1 1x IS UEP

B.2.S. OraM stff _tzIn and ldeify ptticipana X X X X X X X X d ES, UEP

R.2Jh. EwBuadio of T.A.: Comaubnb and miniz I X | x I CS xUEB.2.i. Pmpaztion of nmal work as X p x X H I CIES

IS2.;. Rviw of aal work pan K X X X C_ d CES,UEP

W3. RBINAL AGECES R-

1L3-P. P Mtforo r lots-Wm m - - - - - - - -R,UEP RCO3. 08WIM I IM x Ix Nx Ix Ix Ix IxIxI x I 1u v- lt - -I - -I U- - I K

;334. Cot ( hqt. coa ( X K X X X K1 X K X___|X1 X| 1 RA,E, _ X Li I L _ _ _ _ _ _

1] PEMETATION PI

PROJECT ACTIVITIES IMPLEMENTATION PERIOD

(QOMas) <_sew ) AGENCY/I ~~~~~~~INSFITUTIONAL1st Towr 2011 lir 3rd _ | 4dk Sr Sf Yew RES;PONSIBILIY

CODE DESCRIPON Q1 Q2 Q3 Q4 I __1 1_ I _ I _

9.3.d. Pncue oquipmt and vdi X X __| UEP, RA

I l _ l 'f_ _ _____ILB3.e. Puel TR$for ot-onm c oomw _ I_ RA UEP<BL3.f. Cont_e____ s ______ ___ X X _ RA, UEPB3.g. Ognmsff UWMa difyptucaf x x x x RAXE,CnbfB3.h. B___o__f__T.A_: C__ain_ _g X X X H RA, UEPB3.1. Ph*am of annl wsk plans X X X_ XKl

B.3.j. Review ofam l work X L X X X tAUEP

3.4. LEGAL AND POLICY SrUDES

3.4.a. Pap TORs for legaltud-o X _ CmS, UE

3.4.b. Contmat and prpep.. lega audio. X X XI__ UEP, ConsulantB

B.4.c. Paap of |w wa la - -k w , Natioal Coa

B.4.d. Inplmn of h water law reguations X X X X X X X CNRH,,MAr,RA >

B.4.e. Prepas TrRa w policy Itds X CI% HUEP.4.. Caizact and prpa policy sbdio X X X _ Um} CoXndw 4

3.44 Pepr Tons Lw stersudo manx CUM uEP

ECUAOR

DIRIUGsUON SIBE'OR TECHNICAL ASSISTANCOEC

DEMPIEWTAlION PLAN

PROJECT ACTIVITIES IMPLEMENTATION PERIOD

(Quar) (s ) AGENCY/B g , O~ ~~~~~~~NSFTJTO

lot Year 2nd Year 3nl Year 4th Yer 5th Year RESPONSIBILITY

CODE DESCRIPTION Q1 Q2 ]Q3 |Q4 I _ I r I _ I |

B... Contmat and prspam oder studies a UP o

3.4.i. Dh5o15o p - in Wm C R l xax 1 R nn-B*4gecie _I_ __ __ ___X_X___ l____a=&or Qw"&du of nsallt m iomv aln &=eftScc a6 UEP

C. YUC IRRIGATION INVES`MENT PLAN

C.l. IINVESrTM PRWCEDURBS AND GUIDELINES

C.I.a. Pssepa TORs for invesm pmoodusd and X C Egudelincs C 11 1E1

C.l.b. Conact and prepai inestment pnceduis and X X UEP, CS, Consum

Cl.c. Diwsuion andincoapotn of procedums and X CNRH. Pannie Secaiat,guidelines in investment scmning processes MAM, RA

C.2. P INVE NSTUDIES

C.2.a. Piepae TORs for pct hasiitsudies R -d L UEP, ICES

C.2.b. C4vtwat and piepa. pject hailbilty stuWies X X X X UEP, CNRH, Conndbns- - - - - -N I 1 - I n- -i - -r

C.2.c P wseas nmet plan X CIES, UPR, CNH,

I .. I I TIs r It a Iie x I C24d. 1 TORs brpv d e &sg Mdm X UEP | Cm

ECUDOR

IRRIGATION SUBSECTOR TECHNICAL ASSISTANCE PROJECT

IMFUMINTATION PLAN

PROJECT ACTIVITIES IMPLEMENTATION PERIODILEMENTING

(Quailm) f mS demeAENCYiir INSTITUTIONAL

_st hat 2f d Year 4th Year S _ RESPONSIBILITY

CODE| DESCRIFI`ION Ql Q2 Q3 Q4 I 11 I I I II

Cs =R±utO- glI-II -- ICES_D6 PRIVATE SEC1OR DEVEL*PhflM

LI. PILGr FRoJCIS

nXl.a. Piepm list of canxd pilo projec X CflmII|U, MAO

Ill.b S deeto of pio pmect (am per _esi=C = agency) X RA

D.l.c. Paepm TORs fDr NGO/conuhig firma to mnap x I RA- ~ ~ ~ ~ ~ ~ _ _ _ _ . . .

Dl.d. Contact NGOIconu_a X L 1 11 IRADl.e.. Puasbas equpment and vewhiic X UE______RA_

D.I.f. Benchmark studies of piot pmjecs X Consitous, RA

D.l.g. Taning of lona stff wotiz on pilot proeob X X X Coasul t C RA

Dl.h. Pfep TORn for obt-erm cownhancicas X x x X I RA, Consu1taUEP U3

D.Ii. Contc short-Wm conauta X x X x RA I UEP

DI.j. Tainig of ue geups in O&M and inigtion X X X X x x x Coaulnt x RAmanageenit ___ II - -I

Dsl.k. Roailbion firgaioninfu=t= =t X X Coaana 1.4 U r n

OUAnN SUBSRIIIC10UUM

IMUIATizTION PLAN

PROJECT ACTIVITIES IMPLEMENTATION PERIOD|~~ ~~~ _. ... ... ...

(Qrnts) (smuim) AGENCYIINS.UTIONAL

i st irw2d Vow1 3rd _ 41h _w 5111 YO RESiPONSELrY

CODE | DESCRIFFION Q1|Q2 |Q |4 i t _I I I I _

TI - - _ - - __

D.14. EBalation of TA.: C4.s,wzu and tihS - - X_ RA. CornIbX X UX |, UEP

Di... Piupamlon of anwal wukt plan Ix II X COuinAinis, RA -- ~~~ - - -_ --

D.1. vw oatmlwokprk u plo- X X X X RAH UEP112k~_ .ortG?omlgm X -1-I [ __ _ _.

DL2. USER GOUP TRAINING AND OUTRECH IN NON-LOAr SYSrEM

DX2.a. Pmp.. Tb for NGO(cotsf Sr ( X f ( x UE, RAcosOcesa with T1bR for pilot pnject) _ _I n

IX2.b. Cbo-tNGO /c_mW fim || | §X I I I I | | UEP, RA(in cooju.won with ooniacth Sth pikot pmjeow)_ _ _ _ _ _

D2A. Pa*r o quipmntI and Iinch X UEP,RA

112d. Pupa. TORO f Xpclimd ns.. X I I RA, Coimaba, UEP

D.2.*. Contat e Xia d eai. X RA, UEP

D.2.f. 2TWW giofsmi doff ifs wihbur gan sp X X X Couunkaim , RA

D.2g. lwr Iof swap. - X X X X X K X X - CARoMN6RA

DL2.h. P_ S Ia bTMp l k cow I| X X X RA, CouIwao

D.2.i. C fat bup oonK*acles X X X RA, UEPD- --- I B I - - C I U IP

D23. Ruh,tloofT.A.I t l X 11 IX U IX nA Coba. Use., UN

IIRRIUGTION ,SUB,WORS TEC11CL AROJENCT

D4PIMNUION PLAN

PROJECT ACTIVITIES IMPLEMENTATION PERIODl I~~~~~~~~~~~~~dLEI>NG

(Quarie) (s ) AGEINSrITUTIONAL1st Yer 2nd Year 3rd Year 4h i, 5*h yewOSBl

CODE DESCRIMON Ql QZ @ | I I | E |LI |_n_I

:-- _ 1 IE.24. R.viow of annul work pa -X RA, UEP d

DOf. Peepemteio V/Ofammal wo pns= '__L L1 x L L WR2 ' UEP

IRRGATION SUBSECWR TICHMCAL ASSISIANCE PROJECT

PROJET tIURBNCE DIDICATORS

inslltuds DESCRIIEMON EXPECTRD OUTPUT OPhyal Obeecived STARTDNG &AcnTIry RapaudWily OF PROBLEM AND DeACT ( lermente hideom _ ENDING DATES

A. PROJECT EXECUTING UNIT (UE)

A.I. PrAject Manageme UEP (al), MAG, * Lack of capacity within * PrDject illplemen11tion (i UEP ognized ad (1) lanuay to June

proposed CNRH the curxent instittis to manalt staffed 1994

* RPcuit UEP coordite and supervise * MonBiti Of projec (i) Prect implemntion (i) March to June

* Prepare project pzoect activities. implenmenltto mnrnal prepared 1994

implementation manual * tProuret on schedule and (di) TORs fDr conDuta (ii) July 1994 tD hoe

describig 16th ewecution of in accordne with WB and suxdies 1998

the prject (Iv) Semi-anal project (iv) July 1994 to June <

* Mane and supevis * Technia backoppg pDgress rpo 1998

projec atvities prvided tD nation and (v) Anual TA evaluation (v) July 1994 to Juaereiol agencies reports, work plan and 1998

auditB(vi) Quality and tmelin (vi) Jldy 1994 to June

of procurent acdvites 1998

B. PUULC NTUTONL STRGT NG AND REFORM

5.1. MAM MA, UEP * Lack of tecnil capacity * Progm of tecbical () Handbook on technical 1) October 1994 to

(rriaion and to deelop resech and assisance to iripted asstan for igd Match 1995

* Impwm technicals of User Group aeion progms in ag lr agricuhure

MA saff in rritd Thinim irrigaed agriulr * Imptved tehnial saff in (u) Pmposed reech and (ii) January to March

agt1ur tough Specist), cirted agiculu extnsion progrm in 1995

technl assistanc N con _nta * Imipmad yields in izgt iriad agricul

staff irainag tuft stmm (in) Skib tanch to lcad (do October 1994 t

stff March 1995(iv) Amualuxtopeoa (IV) 1993to 1998

(v) Equipmn_t ialld (v) Ocobera to

I _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ._ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _D c_ December1994

-78 - Annx S

I J I-'i 'I i'] 1X:X]t1 M111 Ie i I it s$ R*

b jjiifl [III

-b 0

IRRIGATION SUBSEI R ThCRMCAL ASSIST' 'CE RQIE

nIROT tPERMAN-CE INDICA'TORtS

_ |lutna DESCREPMON 1 ECTID OUTPUT I PFhia Obecs SIrARTING &AL ITY Respuzslbi OF PROBLEM J AND 1MPACT __Ptsrnance tatm ENDI DANG TD ETS

BN4. Raimul Amcy SithMemshng and Rehm

B.4.a. CEDECE CEDBGE, UEP * Too much of a technical * Improved regional irgon (i) Number of irigafion (i) liy 1994 to June(Lga Sapproch to rgtion schmes tranfed to 1998

* Techical asiae and Instiuiona deeopment * Trained saff in irrigtion userstaff taining in the ares -Specialist), * Lack of unif6n policy on plaing, envonmetbl (a) Trasfer of irzation (Hi) July 1994 to Julyor regioa irigtion con_ult irrigation developme , engin and projects and schemes 1995planning irrigation Lack of agricure poliy O&M methods and echniques and resoutces fiomengin g and O&M under hiation * pv roed computing capacity INERHI ' vmethods & tecnques * Low impact of irrtin (ii) Skills tansfr to local (iii) Jlly 1994 to June

* Prviion of equipment capacity sBaff 1996an" vehicles * LAw rae of irigtion (iv) Training courses and (iv) January 1995 to

benefits vs. invesmen semirs June 1998* Lack of environwnail (v) Eqtuiment and vehicls (v) December 1994

_impact assessmnt installed

B.4.b. CRM CRM, UEP * Low priority on irigation * hiWrwved regonal irrigation (i) Number of irrigation ff) July 1994 to June(Lev iss n schemes tranfered to 1998

* Tecnical assisance and Instiutional * Lack of uni6nn policy on * Trained staff in irnigation usersstaff trinivg in the aa Specialist), irrigation development plnning, enione (Ii) Tns&r of irution (ii) July 1994 to Julyor rg irrigation consunh * Lsck of agriculto polic assessmet e ineeg and projects and schemes 1995plann, irron unider inigation O&M methods and techniques and resources fromegineeritn and O&M * Low impact of irigtion * mW ved computin capacity INERHImethods & techniques capacity (i) Skills transiet to locl (di) Jily 1994 to JAu

* Pvisio of equipment * Low rate of irrigaon taff 1996and vehicles benefits vs. iamet (v) Tainig coues and (fv) January 1995 to

* Lck ofe _vironmial seminars Jime 1998hiomt es t (v) Equipment and vehicles (v) December 1994

1 11i insele I I

IRRIGATION SUBSECIOR TECHNICAL ASSISTANCE PROJECT

PROJECT E)RMANCE INDIC41OlRS

Ins Itafiong DESCRIFrION EXPECTED OUTPUT Pbysical Ob.;ectivesl SrARTING &ACTIVITY Respon_lty OF PROBLEM AND IMPACT Perforance Iodkatons ENDING DATES

B.4.c. CREA CREA, UEP e Lack of irrigation * hpwed rgonal rition (O) Numbet of irriation (O) July 1994 to June(L"/ g n management schenes transferred to 1998

* Technical assistance and Istitutiona o Lack of unif6nn policy on o Trained saff in irrigation usersstaff trining in the areas Specialist), irription development planning, environment (ii) Transfer of irrigation (ii) July 1994 to Julyor regional irriga conDSUltWS * Lack of agricultue policy asssment, engineerig and projects and schemes 1995planni , irrigation under irription O&M methods and techniques and resources fromengineeritg aNd O&M e Lack of irrigaton planning e Improved computi capacity INERHImethods & technique e Lack of O&M (ii) Skills transf6r to local (ii) July 1994 to June

* Provision of equipmn ngemoent stff 1996and vehdices * Lack of environvme (iv) Trainirg coumes and (IV) Jary 1995 to

impact t seminarts lurA 1998(v) Equipment and vehicles (v) December 1994

installed _

B.4.d. El Oro El Oo, UP * Lack of irrigation * Improved regional irigation (i) Number of irrigation (t) July 1994 to June(La/ mnagment management schemes tanserred to 1998

* Technical assistance and Inatitluons * Lack of uniforn policy on * Trained staff in irriation usersstaff training in the aes Specialit), irrigtion developmeat plannitg, ewionmna (it) Transfer of irrigation (ii) July 1994 to Julyor regional i :rigatio consul0nts * Lack of agricultuw podicy assessment, eginceering and projects and schemes 1995plnning, irigation under irrigation O&M mehods and techniques and resourixs fromengierg and O&M * Lack of irrigaidon planning * hnaprved computing capacity INERHImetbods & tchnique * Lack of O&M (iii) Skills transfer to loca (iii) July 1994 to June

* Ptvisou of equipment maa _erat staff 1996and veics * Lack of eaviroameoW (tv) Tainivg coues and (iv) anuary 1995 to

WVa"t awt s June 1998(v) Equmen and vhickls (v) December 1994

- 81 - Annex S

1i I II I E a 1, a 111 l LES

:XS~~~ Si'l 8

itt _p .jIIjfl

IRRIGATION SUDSECTOR TEIHNIC&L ASSISTANCE PROJECT

OROJEMCT AERMA INDICoaIORS

|03*11 81 DESCRIMON EXIECTED OUTPUT hy|a obect l STARTINGACTIVM ReW=sW* OF PROBLEM AND IMCT Per*ennce ltaos ENDING DAITES;

3.4.g. PREDESUR PREDESUR, * Lack of irigatm * Impved reginal iriation Oi Number of irrigtion (i) July 1994 to JuneUEP (Lega/ m g It manqgement schemes tuerasned to 1998

* Technical assistance and l[stonal * Lack of uniform policy on * Trained stff on irigation usensaff training in the areas Specialist), irrigation development plannirg, environmental (ii) Transfer of irrigation Cii) July 1994 to Julyof regional irigation consulns * Lack of agriculbu policy assessmet, engineering and projects and schemes 1995planni*, irrigation under irrigation O&M methods and techniques and resources fromeneerin and O&M * Lack of irrigtion planning * Improved computing capacity INERHImethods and techriques * Low capacity of O&M * Adoption to the proposed (iii) SkiUs transfer to local (ii) July 1994 to June 0o

* Pnwvision of equipmeat manageient irrigation o inintionAl staff 1996Xamt vehicles * Lack of enviromea structu fiv) Training coures and (iv) Januarv 1995 to

impact assessment seniinats June 1998(v) Equipment and vehicles (v) December 1994

inralled

BS. Lgal and Pboiy Stdies_

B.5.a. Legal reforns studies and UEP (Lga/V o Current Water Law does Proposed law reforms Cr) Set of the required legal (i) July 1994 to MarchPropos Institutional not cover the actua needs allowing deconcentution and reforms identified and 1995

Expett), o ConcerAition of irrigation regionalization of irrigation draftedconsuisas, mandate on current schemes Cii) Passage of new wster (ii) May 1995CES, proposed INERHI lawsCNRH, MAG,RA, NationalCongress

ECI^O

IRRIGATION SUBSECIDR TECHNICAL ASSISTANCE PROJECT

PROJECT PERFORMANCE INDICATORS

InstituonalI DESCRIPTION EXPECTED OUTPUT Phycal ObjetivW ARTING &ACTIVITY Responesibility OF PROBLEM AND 1IMPACT j ' nrfonrance Indicators EN, I NG DATES |

B.S.b. Genetal Studies: UEP (all). CES, * Scarcity of economically * To increase agriculural Studies completed, discussedproposed CNRH, viable production systems ptoductivity under irrigation and incorporated in water

* Studies to support consulnts, RA, under irrigation and madmine its economic policy at the national andimprwed water resouices Secretary of * Absence of market, prices reurns regional levels:mnatgement and irrigated Planning, MAO and related studies to * To imprtuw the selection ofagricultw-. guide and support ^top ptoduction in irrigated (f) Developmient of Viable (1) July to December

agriculural production areas. Crop production Production Systems 1994under irigatin decisions wotld be based on under Irigaton Prects o

* Curtent tariffs are highly market and prices analysis. (ii) Policy, Market and (ii) bnuary tosubsidimd. This causes * To reduce tle level of Ptice Study for Crops September 1995misallocation and waste of subsidies given in the curmnt Produced in Irrigationwater resourcs, water tariffs. To mtiona;ia Projects

* The last ground ad water resources use and (iii) Water Tiariffs and Cost (ii) July 1994 to Junesurface water ventory management Recery in Public 1995was partally updated in * To hae a complet and rigation Projects1980. reliable, at a nationsl lvel, (Iv) Ground and Sur&ice (Iv) July 1994 to

* Thete is no plan or ground and surtce water Water Inventory December 1995ptrgram. at a national inveetory (v) Watersheds and Natutal (v) July 1994 tolIcel, for waenheds and * To develop a suitable Resowc Mangent December 199Sno tuad tesources progmrm fr waterdhed and (vi) Assessment of Priva (vi) July 1994 to Junema n. nat souCs rigain Performance 1995

* The biggest hre of die m g n in balance withtotal irigaed aea is on the envronment, at a natonlPr sysems (7%). lvelMHowever, there is no * To have reliabl infoanationreliable iformation about about prie ira ation, toits pebmanc and idenify its Hnbatios and tolim_tations, propose viable activiNies to

_pemae p_ _ _ _ _ _ _ _ __ion__

CeframotO

-84 - Annex

:tidril -1 _______Pi 1

-as~~~~~~~~~~~~~~~~~~-

| ! l 1 diii 'Jjijjj i l3 [L1ii3i

AlL~~~~~~[ M z tl !

I~~~~~~~~. '. JIIII.._ <,.

IRRG^1ION SUBSEC>R L ASSrANCE l!ROEICT

PROJ]ECT UORUMANCE IDICATORS

1 Institutional I DESCRIPTION PECTE OUTPUT Physical Object/ STARTING &ACIVIrY Respil OF PROBLEM I AND IMl*ACT Pe*rfance hInicat j ENDING DATES

C.2. Pieinvestment Studies UEP (Inigation e The eXisting feasibility * The feasibility studies would * 20 FeasibilityProject studies are of a low quality allow evaluation accoiding to Studies completed

0 Utilize guidelines and Edaluation and, in geneWA, established norns and (O) First year g ) O Wuly to Dec. 1994procedures developed Specialist), CES, incomplete guidelines of projects (i) Second year 12 (ii) Jan. to Dec. 1995above to scren proposed proposed CNRH, * Design studies have not pwposed for finding underinvestments and prepare consultants, been prepaled for the the rigation Invesmen Planfeaibility studies for Secetary of rehabilitation of manyfollow-on irrigation Planning, MAM3, irrigation sysems and oninVestm t project RA those completd require

thorough review.

D. PRIVATE SECIOR DEVELOPMENT

ILI. Piot Pr4ects

D.L .a Benchmark Studies of Pilot UEP (Irrigation Current data base is limited to Seven benchmark studies (one for (i) Seven studies completed (i) September 1994 toProjects and User Group non-acistei.. Design of each pilot project) as the bases February 1995

Training specific interventions and for developirg and refining (ii) Study rets integrated (ii) February to April* Benchmark data on Specialist), RA. monitring of progress in annual work plans and developivg into annual work plans 1995

economi_ social and conshuviste tiair of irrigation ytems evaluation and monring (iii) Monitoriqg and (iii) Febmuaty to Apriltechnicad aspects will be to water use.t requires a prgams for the pilot projects evauation plans 1995gathered and analyzed and hrelable, curreat data base and completed which usestudies completd at the analysis of social, economic benchmark data as abqgnnirg of each pilot and technical pametets,. basis for measurn

p-___ pogeS__

Pt

IRRIGATION SUBSECIOR TECHNICAL ASSISTANCE PROJECT

PROJECT FERFORMANCE INDICATORS

bns |louaal DEKCRIPTION | XEC OUTP P1ysia Objece SARTING &ACTIV Respo lt OF PROBLEM AND IMWACT l 3icmante | is ENDING DATES

D.l .b. Organize Water Uss' UEP (Irigation Water use.' associations are Wter usei' aociations (a) Legal statutes filed for () Januay to JulyAssociadons and User Grmp uually organizd only formally and legaPly organized in local associations in the 1995

Training informally, if at al, and then each pilot project with both loal systeme Water Userss associations Specialist), RA, only at the local led with associations an an eleced (i) gal tatue filed for (ii) April to September

will be fonnally orgnized consultants, uers litle coordination or joint assambly (Junta d Reganes) the supra Juna de 1995in each pilot projc.t planni amonw vrious from the local associations for the RtgateasThese wil include local communities or ata of the system as a whole. This will (dii) A Boasd of Directors (iii) Sepner toassociatios and, in some qsyste facilitate: (a) tmaining of farmers elected for the Junta de Navember 1995cases, a costuent in sysm operation and Regantes and meetingsasembly (Juna de ae (b) defintion of heldRepntes) comprised of abili needs; and (c)representatives frm each enhanced cost recorery. It willocal association, form th basis for en tuly

tunn systems managment tothe Junta do Regantes.

|D. .c. Train Whtr Uses to Operate UEP (rrigation Te regional irrigation O&M of the irigation Dsytm in t I) ntelition of the i Aptil 1995 to JunCand M rigation and User Grup agencies operate and manage each pilot prt4ect by the formally payment of O&M costs 1997Systems Trainng public irrigation projects with organized Jua de Resgas, at by the Junta de Regaes (i) November 1995 to

Specialist), RA, little or no input from least for the secondary system, (i) Formal trnsfer of the December 1997* Water uses, throug their consuns, uses frmers. On-farm and sstem and for the entire system whee O&M of the irration ) April 1995 to

associations, will be efficieancy of water use is low, feasible. This wil enhance system to the luna de Decmber 1997trained in operation and which coutnbuts to low fam efficiency of water use Qoth at RePtes (Iv) April 1995 to Junemanage_mt of irrigation productivity and inome, the system level and on frms) (Ii) Reduced involvment of 1998systems, ofarm water Cost recovery by th regional and inrease farm productivity regional agencies in (v) April 1995 to Jumeangaement and irrigated agencies for both operations and net incomes. h will faciliae managingthe irrigation 1998

crop production in pilot and maintnace costs and for internalianion of costs by watr sysemprject irrigatio sym capital coOs also is low. uses and more efficient (Iv) Iprovement in water

Farmers can be expecied to nagemet of each irrigation use efficiency Imote efficiently opeat the sytem in the pilot prjects. (v) lIncrased farmsystem if they are adequaly productivity and nettrained and p-pard. incomes

NUWGxT1N SUBSECTOR llCNWL ASSEIrANC

PRJC OE RMNC IONDCORS

1 1 DDElSCREP'ON EXPECTED OUTPUT fs Oal ectiws/ 1 rARTNG &ACTIVITY ResposWity_ OF PROBLEM AND IMMACT Pevfmnaiwe Indst_s ENDMIG DATES

D.l .d. RehabilitComplk Regioa sxt on the pilot Irdigation infatruc will be Q) Completon of a plan for O) Match tohifiestrecur on Filot Agenc. projects need to be ompltecd on the pilot proect, infastuctr Noember 199SProec conwul_ant ehabUiited and, in som inclufd the itaation of improvems on dhe

user, UEP cases, completd, in order to _wuraeauug devices as pilot projects* Idgation systems in tho (Iigation and pri aequat ad timy needed. ITis wil alow for mor (i) Applicationappaa for Cu) september to

pilt pwcts wil be User Group war supplie hee iao mly ad g8ear amout of finanbg for December 199SebilaIhtd nd Trainig inve_sme amc elatiwy water wlch,W in trn, wi lead to infiastructure

infi%structure completd as Specais) modes and are expectd to incrasd preduct imlple _ _mpenis by the dinm are wig to esuwlt in sbtantial benefiS. coppirg and, in som caes, an waer usera' associatonundeta h intestmens As a sul, there ar lily to illnC in irnigaed ara. It wil (i Intallation of ste- Oi) Janm toin rais iaroweawss be sgrowq ientivs 1br also cilhate mo precise and masuri deices and Deember 1996

&rmsr to mab th nXesy hir chares fDr O&M oo, by reb3ocompinvestments. permitbg aocurm of infinstructute on th

ofwate use. This, in tun, wil po precsenhance inwtenaliio of O&M (tv) oarml mpymep t of &iv) Febmary 1997 tocoe o th watr us' inesten cow Jnm 199u

_ _ ~~~~~~~~~~~~~~~~~~~~~~~~~amocceo. underway

IRRIGATION SUBSEC1OR TECNICAL ASFANCE iROJECT

PIROJECT OERRIBNC INDICATORS

___tissaal DESCRIPTION EXPECTED OUTPUT rhRTOltiws | SllING &ACTIVITY Respsfty OF IPROBLEM AND IM1MT j ehslxm ane elicators | EtIDING DATES

D2. User Gnup lnhag and 0._ewh

D.2.a. lItensie Training of RA, co _nsu, All public iigtion syem Two sets of spec'iad personnel () Fve sujet matter (1 Jamiary to JulyRegional Pcrwnne UEP (Irrigaton suffer fiom the sae gener will be trained in each regional specialis taned fr 1995

and User Group problems: inefficient use of irrigation a : (a) five subject cach regional irigationA cadre of subject mater Tainig water reures, imited co matte pecialiss and (b) chae agecy (30 in total in aspeciisft and chang Specialist), CES recevry, iscomple or age for each public irrigation sinle, nationalagents will be trained in damaged sysms, and low ssem ITh intesie tani4 progam in theeach region to use lesso productivity and incomes progrm is a cost-effectiv way f9owinig ares: Golearned from the pilot among wAter user. ITes of devlopig the cadre of subject a. Syms Managemntprojects to help to problems wil be addressed in mter specialists an chaec b. Economicsimplement polfc refouMs the pl proje thlough s needed to help teach c. [AgslmAdmiviatraiebrdly thtoughout the t susta in&sions of capbl, farme in dler ssems. This d. On-farm Water Useof the public irrigation technical asistance and cade of specialized traine will c. rigd Cropssubsebr. focused training. Other public introduce requi policy rein (Cn) One (or more) chaWe (i) April to December

iigation ystems need to in all the public iription agent elected and 1995implement simil msfsystems: orpniznon and taind for each non-which also will trquire tainig of water users; O&M of pilot public irgationadditional resources and the system by the users' tem by the subjectfocused efforts. he Inens asociaton eventual trnfer of mater specialist in tieNational Training Coponent the system to the water users; abov aeais innded to quickly devlop enhanced cost recoevry; aad (mi) All su bjet matter (iii) June to dy 1995a critical mass of human in_estme by watr uses in specilists and changecapil to address tiese completio and rehabilitation of agents trined toedtherdeficiencies. their sysems in extension

mIhodo,e

IUUGATION-SLUDCXR TMM SUSI ANCT

PJIC PWRKulNCE IDICATORS

1 I DElSCRION EXPECTED OUTPUT dPhal Owesl SrARlNG &ACTIVrrY jRespomlbuflty_j OF ROMOF PROBLEM AND NrPAmT tehlicat L ENDING DATEX

D2.b. User Oueach Pgram fr RA, constas, Policy refims noed to be VAter use in the nnplot ( Ater us' 0) Jauary to DeoemberNon-Pilot Sysem ar uses, implnd in an the non- prjes equWiped wih the skills associatio ognied 1996user in the non-pilot sys (Inigaion and pio at systems, and knowledge to succedy in non-pilot projectwill be orpnimd into User Group dmwiwB on lesons learned talb arer ope-Ation amd (i) Vater us' pay O&M (O) Janury 1996 toasciations and taied in Traini fiwm dte pinot projects . m Vet of their system cos Ap 1997irrigation ysem opeton and Speciaist) Fners in -pilt ssms inrnali cost and incra (di) Tmns&r of the (ii) January 1996 toman_ament thwugh an also have litte experience or productivity and um incomes, opeftion of th sysm June 1998eension/outreach ptogra, knowledge of sytem jum as on the pilot projects. to the watr uers'inchldiw spechizaed short opetion and ma _nme, associationcoures, inbrml tiaig, and on-fim water manemen Le learned on the pilot (iv) Rehabiia plan fbr (Qv) April 1996 todemonstMtion and ourach and modern, irrigted crop proect applied renexally and each non-piot sytm April 1997programs at the pilot proec. ptoduction. They am no umi6Ty throughout the pubhc with water

likdy to lean mnch from te irrigaion subsctr of commited to Wypilot projecs unles thee is a infiatuctu. capitl cosbtpurposeful effort to tach them (v) Imp _wemen in water (v) Janry 1996 tand iciliate policy flms use efliciency July 1998on the no-pilot pwjecb. (vi) Inclres in km (vi) Jamnary 1996 to

prducivity and income July 1998

- 91 - Annex 6

IRRIGATION SUBSECIOR TECHNICAL ASSISTANCE PROJECT

SUPERVISION PLAN

1. Significant resources will be required to supervise this project. Implementation of themain project activities (institutional strengthening of three national and seven regionalagencies, legal and policy studies and reforms, investment screening and preparation, andcapacity building for operation and maintenance privatization to user-groups), require largeinputs of technical assistance which will in turn require on-going evaluation to ensureconsistency with project objectives. In addition to a well-staffed project execution unit(UEP), the project will require the commitment of significant resources for supervision.

2. IBRD s Dision mut: Bank staff or consultant input into the supervision of the projectwill range between 30 to 20 staff weeks per year on a declining basis (due primarily toreduced procurement activity in the latter years of the project.) This required input will takethe following form:

(a) Portfolio Management Oprations: The review of procurement documents, progressreports, correspondence and the internal reporting related to these activities areexpected to initially require 10 staff weeks per year, declining later in the project asprocurement activities diminish.

(b) Field SuRipsion: It is planned to undertake field supervision on a semi-annual basis:in November to discuss technical assistance performance reviews and review annualwork plans (POA); and once a year in May/June for field visits and other routinesupervision tasks.

3. IBRD Field Supervision Requirements: See following table.

,b

- 92 - Annex 6

ECUADOR

IRR1GATION SUBSECTIOR TECHNCAL ASSCE PROJECT

FIELD SUPERVISION PLAN

Appnsidmate Dates Afivity ExpeeWd Skdl Requiament staf Inp

7/94 Project Launch Task Mangr 10Mbrkshop Procurement Specialist

Institutional SpecialistIrigaption BwineerUser Group Tinitig andOutreach Specialist

1V94 Review POA Task Managr 10Discus TA evaluation Imntitutional SpecialistDiscuss progtess in Irngation E;qineerdeeentmalization Irigation User Group ThiniDiscuss progress of and Outreach Specialiststudies

7/95 Review procutement Task Manager 10issues Irrigation lgineerField visits Intitutional SpecialistTachnical aspects of Irngation User Oroup Trhinicompones and Outreach Specialit

12/95 Review POA Task Managwr 5Discus TA waluation Ittional SpecialistDiscuss progess in Irigation EaineerdecenterztionDiscuss proges ofstudies

7/96 Midtern Review Task Mantger 12Review procurement Procurement Specialstisues Irrigation EwineerField visits titutional Specialistlbchnical aspets of rrigation User Group Tzni

_______________ componerm and Outreach Specialist

12/96 Roview POA Task Mangr SDiscuss TA evaluation Isitutional SpecialistDiscuss progres in Irigation User Goup Tndatttgprivatization of O&M and Outeac Specialist

7/97 Review procument Task Managr 10ieues IrrigSaion Engineerioeld visits Instional Specialist

Technical aspect of Irrigation User Group Trainingcotnponentb ad Outreach Specialst

12/97 Review POA Task Manar 5Discus TA evaluation Institutional SpcialistDiscuss progres in itn Usr Group Triningprivtatization of O&M and Outech Specialist

6/98 PCR Prepartion Ta Manaer t0Reusrch AsistntIsbuti Speciaist .

-93 - Annex 6

ECUADOR

I GATION SUBSECI EC AL ASSISTANCE PROHEC

FIELD SUPERVISION PLAN(Continued)

The supervision requirement by IBRD fiscal year are:

1994 1995 1996 97 1991

SW in field 20 15 17 1S 10

Document Review 10 10 7 5 1

TOTAL SW 30 25 24 20 11

- 95- Annex 7

ECUADOR

IRRGATION SUBSECIO TECHICAL ASSISTANC13 PRtOJECT

LIST OF DCMl IN ]ROJEC FlLES

Worldng Paper 1. "Irrigation and Agricultural Development*

Worldng Paper 2. "Institutional Reform and Strengthening"

Working Paper 3. "Pilot Project Progmm"

Working Paper 4. "lTaining and Outreach Program"

Worldng Paper 5. "Public Irrigation Inwestment"