Document of

The World Bank

FOR OFFICIAL USE ONLY FILE COPY

Report No. 1785b-PH

PHILIPPINES

STAFF APPRAISAL REPORT

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

February 14, 1978

Projects DepartmentEast Asia and Pacific Regional Office

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

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CURRENCY EQUIVALENTS

Currency Unit - Philippine Peso (P)

P 1 = US$0.135US$1 = P 7.40

WEIGHTS AND MEASURES

1 ha = 2.47 acres1 km = 0.62 miles1 sq km = 0.3886 sq mI m = 3.28 ft1 sq m = 10.76 sq ft1 cu m = 35.31 cu ftl M cu m = 810.7 ac ft1 mm = 0.039 in1 kg = 2.2 lbs1 cavan = 50 kg

20 cavans I m ton

ABBREVIATIONS

ACA - Agricultural Credit AdministrationADB - Asian Development BankADCC - Agricultural Development Coordinating CouncilAMIADP - Angat-Magat Integrated Agricultural Development ProjectBAE - Bureau of Agricultural ExtensionBPI - Bureau of Plant IndustryDAR - Department of Agrarian ReformDLGCD - Department of Local Government and Community DevelopmentDOH - Department of HealthNFAC - National Food and Agriculture CouncilNGA - National Grain AuthorityNIA - National Irrigation AdministrationNISIP: II - National Irrigation Systems Improvement Project: IINISIS - National Irrigation Systems Improvement Study0&M - Operation and MaintenancePCAC - Presidential Committee on Agricultural CreditRB - Rural BanksSCC - Schistosomiasis Control CouncilSCRS - Schistosomiasis Control and Research ServiceSPO - Special Projects OrganizationTBAC - Technical Board on Agricultural CreditUPRP - Upper Pampanga River ProjectWMT - Water Management Technicians

GOVERNMENT OF THE PHILIPPINES

FISCAL YEAR

January 1 - December 31

FOR OFFICIAL USE ONLY

PHILIPPINES: STAFF APPRAISAL OF THE NATIONAL IRRIGATIONSYSTEMS IMPROVEMENT PROJECT: II

TABLE OF CONTENTS

Page No.

1e BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . 1

2. THE PROJECT AREA. . . . . . . . . .. . . . . . . . 2

General . . . . . . . . . . . . . . . . . . . . . . . . . . 2Climate .... . . . . . . . . . . . .. . . . . . . . . .2Topography, Drainage and Soils . . . . . . . . . . . . . . 4Land Tenure and Farm Size .u.r. .a.da i.. . . . . . . . . . . 5Existing Irrigation Facilities. . . . . . . . 6Transportation ..... . .. . . 6

3. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . 9

Project Description . . . . . . . . . . . . . . . . . . 9Project Works . . . . . . . . . . . . . . . . . . . . . . . 10Water Supply, Demand and Quality. . . . . . . . . . . . . . 12Status of Engineering .... . . . . . . . . . . . . 18Strengthening of Regional O&M Capability . . . . . . .. 18Input-Output Monitoring . . . . . . . .... . . . .. . 19Schistosomiasis Control Program . . . . . . . . . . . .2 1Feasibility Studies .... . . . . . . . . . ...... . 22Cost Estimates. . . . . . . . . . . . . . .. . 22Financing . . . . . . . . . . . . . . . . . . . . . . . . . 27Procurement .... . . . . . . . . . . .. . 27Disbursements . . . . . . . . . . .. . .. . . . *.. .. . 28Accounts and Audit. . . . . . . . . . . . . . . . . . . . . 28Environmental Effects . . . . . . . . . . . . . . . . . . . 28

4. ORGANIZATION AND MANAGEMENT. 29

Project Management. . . . . . . . . . . . . . . . . . . . . 29Agricultural Supporting Services. . . . . . . . . . . . . . 30

5. AGRICULTURAL PRODUCTION . . . . . . . . . . . . . . . . . . 32

Present Cropping Patterns. . . . . ...... . . . . 32Future Cropping Patterns . . . . . .. . . . . 33Yields and Production . . . . . . . . . . . . . . . . . . . 33

This report is based on the findings of a Bank mission which visited thePhilippines in July-August 1977, comprising Messrs. A. N. Khan (Bank)and D. K. Jones, J. W. Ball, A. L. Gram and A. Yambao (Consultants).Mr. E. G. Giglioli also assisted in preparation of the report.

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

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Page No.

Cropping Calendar . . . . . . . . . . . . . . . . . . . . 35Farm Mechanization. . . . . . . . . . . . . . . . . . . . 35Drying, Storage and Processing. . . . . . . . . . . . . . 36

6. MARKET PROSPECTS, PRICES, FARMINCOMES AND PROJECT CHARGES . . . . . . . . . . . . . . 36

Market Prospects. . . . . . . . . . . . . . . . . . . . . 36Prices. . . . . . . . . . . . . . . . . . . . . . . . . . 37Farm Incomes. . . . . . . . . . . . . . . . . . . . . . . 39Cost and Rent Recovery. . . . . . . . . . . . . . . . . . 40

7. BENEFITS, JUSTIFICATION AND RISKS . . . . . . . . . . . . 43

8. RECOMMENDATIONS .... . . . . . . . . . . . . . . . . . 48

ANNEXES

1. Project Features; Irrigation Facilities Cost;Expenditures, Disbursements and Allocation ofLoan Proceeds

2. Crop and Farm Budgets3. Schedule of Critical Events4. Related Documents and Data Available in the Project Files

LIST OF TABLES IN MAIN TEXT

Table No.

2.1 Summary of Climatological Data . . . . . . . . . . . 32.2 Land Ownership and Farm Size Distribution. . . . . . 72.3 Land Tenure of Rice Lands. . . . . . . . . . . . . . 83.1 Project Water Requirements Summary . . . . . . . . . 143.2 Estimated Cropping Areas for Systems with

Limited Water Supply . . . . . . . . . . . . . . . 153.3 Present and Future Irrigated Areas . . . . . . . . . 173.4 Irrigation Systems Outside NISIP: II . . . . . . . . 203.5 Cost Estimate (2 pages) . . . .. . . . . . . . . . . 243.6 Irrigation Service Area - Cost Estimate. . . . . . . 265.1 Present and Projected Yields . . . . . . . . . . . . 345.2 Present and Projected Crop Production. . . . . . . . 356.1 Price Structure for Rice . . . . . . . . . . . . . . 386.2 Fertilizer Prices . . . . . . . . . . . . . . . . . 396.3 Farm Incomes . . . . . . . . . . . . . . . . . . . . 396.4 Cost and Rent Recovery . . . . . . . . . . . . . . . 41

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Page No.

7.1 Net Value of Production at FullProject Development. . . . . . . . . . . . . . . . 44

7.2 Labor Supply . . . . . . . . . . . . . . . . . . . . 457.3 Economic Costs and Benefits . . . . . . . . . . . . 477.4 Sensitivity Analysis . . . . ....... ... . . 48

LIST OF FIGURES

Figure 3.1 - Implementation Schedule; Southern Luzon Subproject andCommon Events

Figure 3.2 - Implementation Schedule; Western Visayas SubprojectFigure 3.3 - Implementation Schedule; Mindanao Subproject.Figure 4.1 - NIA Organization Chart for Engineering and OperationsFigure 4.2 - Proposed Organization for Project ConstructionFigure 4.3 - Proposed Organization for Project Operation and MaintenanceFigure 5.1 - Proposed Cropping Calendar for Southern Luzon Subproject.Figure 5.2 - Proposed Cropping Calendar for Western Visayas SubprojectFigure 5.3 - Proposed Cropping Calendar for Mindanao Subproject

LIST OF MAPS

IBRD 12507(R1) Systems LocationIBRD 12946(R) Region 4; Southern Luzon SubprojectIBRD 12947(R) Region 5; Southern Luzon SubprojectIBRD 12948(R) Region 6; Western Visayas SubprojectIBRD 13023(R) Region 9, 10 and 11; Mindanao SubprojectIBRD 13024 Region 8 & 10; Mindanao Subproject

PHILIPPINES

APPRAISAL OF THE NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

1. BACKGROUND

1.01 The main thrust of the National Irrigation Administration's (NIA)program of rehabilitation and expansion has been directed to the large ricegrowing irrigation systems in Central Luzon and in the Cagayan Valley ofNorthern Luzon. The ADB-assisted Angat-Magat project and the Bank-assistedPampanga, Penaranda, Tarlac, Magat and Chico projects were all componentsof the NIA program of development of large-scale systems in the principalgrain producing areas of Luzon. At the same time, NIA has been carryingout a smaller, but steady irrigation development program of some 55,000 hain Mindanao with ADB assistance. In addition to rehabilitation of existingcanals and structures, the construction of new ones, the provision ofbetter drainage and access and the introduction of water management androtational irrigation practices, the program also has included the provisionof extra water supplies in some areas through the construction of storageor by transbasin diversion.

1.02 NIA has not neglected the need for rehabilitation and upgradingof the badly deteriorated, smaller systems scattered through the Philippines.The National Irrigation Systems Improvement Study (NISIS) was set up in1975 with Bank assistance (Loan 1080-PH) to inventory the smaller systemsand to select a total of about 150,000 ha with the highest priority forimprovement, allowing for a balanced regional distribution. All nationalsystems were inventoried. Systems included in ongoing projects were excluded,as were systems earmarked for rehabilitation under already identified ADB-,Bank- or bilaterally-assisted projects. The remaining systems were thenevaluated on the basis of the degree of need for improvement, the potentialfor improvement and expansion in terms of land and water resources, thetechnical and economic feasibility of improvement, the human need in thearea, in terms of poverty and disease, and the institution building aspectsin terms of strengthening the capabilities of NIA's regional offices. Sixty-two national irrigation systems grouped into four packages were selected,and feasibility studies were undertaken by NIA with the assistance of consul-tants. The first package making up the National Irrigation Systems Improve-ment Project:I (NISIP:I, Loan 1414-PH), covers 22 existing and 3 new irrigationsystems for a total 49,500 ha. The proposed project consists of the secondand part of the third packages. It would include 26 existing irrigationsystems spread over seven NIA Regions in Southern Luzon, the Western Visayasand Mindanao. NISIP: I loan became effective in August 1977, so the Projectis in the initial phase of organization and mobilization, however the progressto date is good and ahead of appraisal schedule. NISIP: II components areidentical to NISIP:I except the extent of drainage works for SchistosomiasisControl Program, which is confined to the concerned irrigation system boundariesinstead of watershed area (para. 3.23) and the provision of input/outputmonitoring, which would cover both projects.

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1.03 The proposed project would be the ninth Bank-assisted irrigation-roject in the Philippines. ALl works have been substantially completed on thefirst project, the Upper Pampanga River Irrigation (Loan 637-PH). Overallprogress on all these projects has been generally satisfactory. Total costof project on the first two projects was about 70% over appraisal estimates onUPRP (Loan 637-PH) and about 55% higher on Aurora-Penaranda Irrigation(Loan 984-Credit 472-PH) largely as a result of rapid inflation following theoil price increases in late 1973. However, due to considerable increase inthe projected world market price of rice and from early diversions on both ofthese projects, the rates of return on both of these projects have notchanged.

2. THE PROJECT AREA

General

2.01 The project would rehabilitate and expand 26 existing irrigationsystems with a total irrigable area of 80,900 ha. These systems can bedivided into three distinct subproject areas. The Southern Luzon subprojectwould include 12 irrigation systems located in the provinces of Quezon,Batangas, Camarines Norte, Albay and Sorsogon. The Western Visayas sub-project, would include 4 irrigation systems located in the provinces ofAklan, Antique and Negros Occidental. The Mindanao subproject wouldinclude 10 systems located in the provinces of Zamboanga del Sur, Surigaodel Sur, Bukidnon, Davao del Sur, North Cotabato and South Cotabato.Aside from 6,400 ha of sugarcane in the Western Visayas subproject and asmall area in the Mindanao subproject transplanted rice, whether irrigatedor rainfed, is presently the malin crop in the project area. Negros islandin the Western Visayas is the only rice deficit area, while all otherproject systems are in rice surplus areas. Systems in the Bicol region ofSouthern Luzon suffer from high population densities and small, fragmentedholdings; these subprojects and the one in Mindanao are located in some ofthe poorest regions in the country.

2.02 There are a number of small towns scattered throughout the projectarea. Most of the irrigation systems are located close to major commercialcenters providing banking, storage and processing facilities, as well assupplies of inputs to the agricultural areas. The systems in the provincesof Sorsogon, Aklan, Surigao del Sur and Bukidnon are fairly remote from majorcenters. A few project systems lack a good road network especially in Aklanand Antique provinces in the Western Visayas subproject and Surigao del Surand Bukidnon in the Mindanao subproject. However, the Government is currentlyengaged in a program of road iimprovement in these areas.

Climate

2.03 The climate in the project area is tropical and monsoonal. Warmtemperatures throughout the year allow a twelve-month growing season withirrigation. The average annual rainfall in the three subproject areas rangesbetween about 1000 and 5,400 mm, with marked differences in the rainfall

Table 2.1: SUMMARY OF CLIMATOLOGICAL DATA

Period ofSubproject Location Item observation Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Total

Southern Lucena, Average rainfall (mm) 1949-75 108 61 59 66 117 172 205 185 238 332 351 324 2,218Luzon Quezon Relative humidity (%) 1949-75 84 83 80 79 79 81 82 82 84 84 83 84

(Southern Mean temperature (OC) 1949-75 25.0 25.6 26.4 27.9 28.6 28.2 27.7 27.7 27.5 27.0 26.6 25.6Luzon) Evaporation (mm) 1949-75 136 159 210 247 226 167 146 143 134 136 124 116 1,944

Number of typhoons 1949-75 1 0 0 0 4 5 1 1 0 7 11 6 36

Guinobatan, Average rainfall (mm) 1949-75 179 87 84 95 155 237 322 268 307 348 303 337 2,722Albay Relative humidity (X) 1949-75 84 83 82 82 81 82 84 85 85 85 85 86(Bicol) Mean temperature (OC) 1956-76 26.8 26.0 26.6 27.7 28.6 28.5 27.9 27.6 27.6 27.5 26.9 26.2

Evaporation (mm) 1956-65 136 159 210 247 226 167 146 143 134 136 124 116 1,944Number of typhoons 1949-75 1 0 0 0 4 5 1 1 0 7 11 6 36

Western Iloilo Average rainfall (mm) 1947-73 57 32 31 43 156 254 383 354 281 250 202 109 2,152Visayas City, Relative humidity (%) 1949-75 82 81 77 74 77 82 84 84 84 84 85 85

Iliolo Mean temperature (OC) 1949-73 25.7 26.0 26.8 28.1 28.6 27.9 27.4 27.2 27.3 27.2 26.9 26.2Evaporation (mm) 1957-65 147 154 207 212 206 166 152 152 141 144 134 139 1,954Number of typhoons 1948-74 0 1 0 1 0 0 0 0 0 1 3 1 7

Mindanao Cotabato Average rainfall (mm) 1956-75 100 115 116 149 252 237 163 168 163 230 191 131 2,015City Relative humidity (%) 1949-65 80 79 77 79 82 84 84 84 84 84 83 82Cotabato Mean temperature (IC) 1949-65 26.9 27.2 27.8 28.2 27.9 27.4 27.0 26.9 27.1 27.3 27.3 27.1

Evaporation (mm) 1957-75 156 153 170 175 164 149 140 153 15U 146 145 140 1,844Number of typhoons 1948-74 0 0 0 1 0 0 0 0 0 1 0 1 3

Hinatuan, Average rainfall (mm) 1956-75 1,025 873 664 445 215 161 132 123 136 236 538 848 5,396Surigao Relative humidity (%) 1949-73 90 89 89 88 87 87 86 85 86 86 88 90del Sur Mean temperature (OC) 1949-73 25.5 25.5. 25.9 26.6 27.1 27.5 27.2 27.2 27.7 27.1 26.6 26.1

Evaporation (mm) 1949-73 146 145 160 165 158 145 138 155 148 147 140 132 1,779

General Average rainfall (mm) 1949-73 74 67 46 55 100 102 93 879 78 98 85 76 963Santos, Relative humidity (%) 1966-73 77 75 76 77 82 83 84 84 83 82 82 80South Mean temperature (OC) 1966-73 27.2 27.5. 28.1 28.6 27.9 27.2 26.9 26.8 27.0 27.3 27.3 27.4Cotabato Evaporation (mm) 1958-70 200 191 217 229 215 181 177 190 189 193 189 176 2,347

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distribution pattern. The Southern Luzon and Western Visayas subproject areaslie in the same climatic zone, the winter and spring months (Jan. - May) aredry, while the summer and fall months are wet. There is considerable clim.,Lcvariation within the Mindanao subproject; the southern part is dry withuniform monthly rainfall of about 80 mm throughout the year; the eastern partis relatively dry during summer and early fall (June-Oct.), while winter andearly spring months are very wet; the central and western part is relativelydry during winter and early spring (Dec.-Apr.), while summer and fall months(May-Nov.) are wet. The rainfall, together with river flows in the wetseason, is generally adequate for a single rice crop except in the southernpart of Mindanao. Dry season cropping, however, entails a greater risk andirrigation is essential to ensure a crop. The Southern Luzon subprojectareas are likely to be hit by about two typhoons per year with the highestfrequency between October and December. The systems in Western Visayas andMindanao subprojects are subject to an average of one typhoon every four orfive years, with October to December as the most probable period ofoccurrence.

Topography, Drainage and Soils

2.04 Although the project systems are scattered in three differentgeographical regions, the topographical characteristics appear to be more orless identical. The systems in the Southern Luzon subproject are all locatedin fertile coastal and interior plains. The slope of the land tends to befrom north to south-east or south-west. The slope is steeper in the northernedges of the systems near the diversion sites, but it flattens out toward thesea with most of the area fairly level. The systems in Western Visayas areall situated in the coastal plain. While the land is generally flat, thereare occasional ridges. The regional topography of Mindanao is basicallyrugged and mountainous. There are, however, vast flat plains in Central andWestern Mindanao where most of the systems of the Mindanao subproject arelocated. Land is exceptionally flat in the Mindanao systems. Surfacedrainage in the Western Visayas area is generally good. In the systems ofSouthern Luzon and some areas of Western Visayas, there are some drainageproblems particularly in the immediate vicinity of the coast and specialprovisions would be made to deal with them under the project. Drainage isinadequate throughout the Mindanao subproject systems and the Bicol region ofSouthern Luzon. The areas are interspersed by natural and man made swamps.Four systems in the Mindanao subproject are known to have high incidencesof schistosomiasis. Special provisions would be made under the project todeal with the drainage problem and the consequent disease situation.

2.05 Soils in the Southern Luzon subproject area are extremely variable,but clay loams and loams of the San Manuel, Ligao, Castillo, Guadalupe andQuingua series predominate. With the exception of Guadalupe clay loam whichis difficult to work, being sticky when wet and hard when dry, the other mainsoil types are loose and friable, with excellent drainage and good fertility.In the Western Visayas subproject area clays and loams of the Silay seriesare by far the most common soil type. These are of recent alluvial origin,gray to dark grayish brown, friable and loose, with a tendency to form ahard pan and poor external and internal drainage. In the Mindanao subprojectarea soils of the San Manuel and Kabacan series are dominant. The San Manuelsoils are pale or grayish brown, loose and friable with excellent drainage,

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pH 6 to 7, and good fertility. The Kabacan series are dark gray to almostblack, plastic, slightly compact clays and clay loams of alluvial origin.They are hard to work when dry and have poor internal drainage. All thesoils are suitable for rice which has grown in all three subproject areasfor many years without problems. With the exception of some limited areasin the Mindanao subproject where potash deficiencies have been found, allproject soils are generally rich in both phosphate and potash, so that themain emphasis in fertilizer application would be on nitrogen.

Land Tenure and Farm Size

2.06 Since 1972 the Government has pursued a program of agrarian reformaimed at the transfer of land ownership to tenant farmers on rice and cornlands. Presidential Decree No. 27 (PD 27), the basic legislation of the newprogram, provides for the transfer to the tenant, whether sharecropper orleaseholder, of up to 3 ha in an irrigated area and 5 ha in a rainfed area.According to PD 27, the landlord may retain up to 7 ha if he tills the landhimself. Since there are some 2 million rice and corn farmers on about4 million ha, of which less than 1 million ha are irrigated, there islittle prospect of achieving the 5 ha rainfed and 3 ha irrigated familyfarms nation wide. The Department of Agrarian Reform (DAR) completedthe issue of land transfer certificates to tenants for all lands in hold-ings over 24 ha in 1975. In November 1974, the Government decided toproceed with the transfer of land in holdings between 24 and 7 ha. InOctober 1976, the Government extended the provision of PD 27 to holdings ofless than 7 ha, belonging to landowners with more than 7 ha of otheragricultural land, or belonging to landowners with residential, commercialor urban land from which they derive adequate incomes to support themselves.At present it is not known how many landlords and tenants would be affectedby the new legislation.

2.07 NIA surveys show that some 56,500 farm families, of which 11,500are landless, averaging 5.6 members for a total of about 316,000 people, livein the project area. About 40% of the farmers are in the Mindanao subprojectarea and the balance is evenly split between the other two subprojects. Themean farm size is about 1.7 ha. There are, however, substantial differencesbetween subproject areas and between various systems within a subprojectarea. In the Southern Luzon systems, the mean farm size is 1.3 ha, in theWestern Visayas excluding sugarcane farms 1.4 ha and with sugarcane farms1.8 ha, and in Mindanao 2.1 ha. The farm size distribution on 80,900 ha ofproject lands is as follows:

Farm size No. of farms Area of farms(ha) ----------- % -------------

Less than 0.5 11 20.5 - 1.5 56 311.6 - 2.0 16 172.1 - 4.0 12 204.1 - 7.0 3 10More than 7.0 2 20

Total 100 100

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In the Southern Luzon systems about 75% of the farms covering 50% of the area

dLL below 1.5 ha, in the Westerm Visayas some 75% of the farms are under

1.5 ha but only account for 40% of the area, while the farm size distribution

in the Mindanao systems shows 56% of farms under 1.5 ha covering 26% of the

area.

2.08 DAR information on the land ownership and farm size distribution is

summarized in Table 2.2. There is a considerable variation in the degree

of skewness of land ownership in the subproject areas; the systems in

Southern Luzon show the least inequality, with the Western Visayas and the

Mindanao systems at the other extreme. Owner-operators accounted for 30% of

the farmers and the remainder were all tenants. The largest proportion of

owner operators is in the Mindanao systems where the largest farm sizes are

found. The lowest proportion of owner-operators is in the Southern Luzon

systems, where the farm sizes are smaller. The Western Visayas systems

fall in the middle on both criteria. Although the Government proposes to

complete the issue of land transfer certificates under the Agrarian Reform by

the end of 1977, a more realistic target date would be end of 1978. Currently

some 30,000 ha or 41% (ranging from 18 to 37%) of the project area are

cultivated by about 13,000 owner-operators, the equivalent of 30% of the

farmers. After completion of land reform some 48,000 ha, or 65% of the

project area, will be cultivated by about 24,000 owner-operators, equivalent

to 55% of the farmers (Table 2.3). The remaining 20,000 tenant farmers would

operate under a written lease agreement.

Existing Irrigation Facilities

2.09 Approximately 53,700 ha of land in the project area fall within the

26 existing systems operated by NIA through seven regional offices. The

systems range in age from 7 to 50 years and in size from a minimum of 300 ha

for three systems in the Southern Luzon subproject to a maximum of 16,000 ha

for the Bago River System in the Western Visayas. Irrigation in the dry

season is limited to some 31,200 ha, partly because of inadequate river flows,

but mostly because of reduced canal capacities due to siltation and a lack of

on-farm distribution facilities. The systems have suffered from insufficient

maintenance due to lack of funds and equipment. They also have poor distribu-

tion networks which make it impossible for the majority of the farmers to get

water at the right time in the right amount. In addition, many systems

lack access roads and movement of inputs and produce is difficult. There are

drainage deficiencies in systems of the Southern Luzon and Mindanao subprojects

due to insufficient collector drains and inadequate outlet conditions.

Transportation

2.10 The presence of the Philippines-Japan friendship highway which

passes through Southern Luzon and Mindanao contributes largely to the

efficient movement of products and services. This national highway passes

through or close to the 12 irrigation systems of the Southern Luzon subproject,

thus interconnecting them with each other and with the provincial capital

cities of Pila, Batangas, Daet, Naga and Legazpi. A national highway along

Table 2.2: LAND OWNERSHIP AND FARM SIZE DISTRIBUTION

Southern Luzon Western Visayas Mindanao ProjectOwners Area Owners Area Owiiers Area Uwners AreaNo. % Ha % No. % Ha % No. % Ha % No. % Ha %

Land Ownership by Size ofHolding (ha)

< 1.0 7,180 60 3,360 20 10,610 71 4,050 15 5,470 41 2,230 6 23,260 58 9,640 121.0- 3.0 3,590 30 5,880 35 2,990 20 5,400 20 4,270 32 7,790 21 10,850 27 19,070 243.1- 5.0 600 5 2,520 15 600 4 2,430 9 1,870 14 7,420 20 3,070 8 12,370 155.1- 7.0 240 2 1,510 9 150 1 1,350 5 670 5 3,710 10 1,060 3 6,570 87.1-24.0 340 2 2,350 15 450 3 5,940 22 980 7 12,620 34 1,770 4 20,910 26

24.1-50.0 20 .. 840 5 100 1 2,970 11 40 1 1,480 4 160 .. 5,290 7> 50.0 .. .. 340 2 50 } 4,860 18 30 } 1,850 5 80 .. 7,050 8

Total 11,970 100 16,800 100 14,950 100 27,000 100 13,330 100 37,100 100 40,250 100 80,900 100

Average 1.4 1.8 2.8 2.1

Farm Size Distribution byType and Size (ha)

Rice farms

< 0.5 1,700 13 500 3 2,420 17 620 3 680 4 150 .. 4,800 11 1,270 20.5-1.5 8,100 62 7,730 46 8,250 58 7,620 37 8,890 52 9,500 26 25,240 57 24,850 341.6-2.0 1,700 13 3,360 20 1,570 11 2,880 14 3,590 21 7,300 20 6,860 16 13,540 182.1-4.0 1,330 10 3,860 23 1,560 11 4,530 22 2,570 15 8,400 23 5,460 12 16,790 234.1-7.0 150 2 1,010 6 280 2 1,240 6 1,030 6 5,450 15 1,460 3 7,700 10

> 7.0 20 340 2 140 1 3,710 18 340 2 5,800 16 500 1 9,850 13

Total 13.000 100 16,800 100 14,220 100 20,600 100 17,100 100 36,600 100 44,320 100 74,000 100

Average 1.3 1.4 2.1 1.7

Sugarcane farms< 10.0 - - - - 342 58 896 14 79 76 200 40 421 62 1,096 16

10.0 - 25.0 - - - - 171 29 1,920 30 25 24 300 60 196 29 2,220 3225.1 - 45.0 - - - - 10 2 256 4 - - - - 10 1 256 4)5.1 - 65.0 - - - - 22 5 1,216 19 - _ _ - 22 3 1,216 1865.1 - 85.0 - - - - 31 5 2,112 33 - - - - 31 5 2,112 30

Total - - - - 576 100 6,400 100 104 100 500 100 680 100 6.900 100

Average _ 11.1 4.8 10.2

Table 2.3: LAND TENURE OF RICE LANDS

Southern Luzon Western Visayas Mindanao ProjectTenure Farmers Area Farmers Area Farmers Area Farmers Area

No. % Ha % No. % Ha % No. % Ha % No. % Ha %

Existing (1975/76)

Owner-operator 2,340 18 3,360 20 3,310 29 7,620 37 7,380 37 19,030 52 13,030 30 30,010 41

Leaseholder 5,200 40 6,890 41 2,850 25 5,770 28 7,180 36 10,250 28 15,230 34 22,910 31

Tenants 5,460 42 6,550 39 5,240 46 7,210 35 5,390 27 7,320 20 16,090 36 21,080 28

Total 13,000 100 16,800 100 11,400 100 20,600 100 19,950 100 36,600 100 44,350 100 74,000 100

Expected Post-Reform

Owner-operator 2,340 18 3,360 20 3,310 29 7,620 37 7,380 37 19,030 52 13,000 30 30,010 41

Amortizing owner 3,000 23 4,000 24 4,000 35 6,750 33 4,250 21 7,300 20 11,250 25 18,050 24

Leaseholder 7,660 59 9,440 56 4,090 36 6,230 30 8,320 42 10,270 28 20,100 45 25,940 35

Total 13,000 100 16,800 100 11,400 100 20,600 100 19,950 100 36,600 100 44,350 100 74,000 100

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the western coast of Negros Island passes through the Bago System and a pro-vincial paved road links this highway to the Pangiplan system of the WesternVisayas subproject. The remaining two systems in Western Visayas are connectedto Iloilo City and each other through a coastal highway, which although

designated as national road is in poor state. Ten of the Mindanao systemsare interconnected with each other and major cities of the islands throughas provincial roads. The road network of provincial and municipal roads isadequate in the Southern Luzon subproject. The Government has a long termplan to upgrade some of the existing limited network of largely unpavedprovincial and municipal roads serving the subproject areas of WesternVisayas and Mindanao. The project would increase the road network densityby building additional farm roads, and O&M roads for the irrigation facilities.

3. THE PROJECT

Project Description

3.01 The project proposed for Bank financing would include:

(a) Irrigation Development

(i) rehabilitation of 26 existing NIA irrigation systemsserving a total area of 53,700 ha;

(ii) construction of new irrigation, drainage and road facilitieson about 27,200 ha of currently rainfed land adjoining thesesystems;

(iii) construction of a subregional headquarters building, seven newfield offices and extension of office, storage and staffquarters facilities for eleven existing field offices; and

(iv) procurement of vehicles and equipment.

(b) Schistosomiasis Control Program - Mindanao

(i) improvement of existing drains and natural creeks and con-struction of new secondary and some farm drains covering atotal area of about 22,000 ha;

(ii) provision of project personnel and supplies to strengthen SCR'sheadquarters' staff, employ and equip field teams for snailsurveys on four systems and to implement the health componentof the project;

(iii) provision of a health education program based in all schoolsand health centers in 11 disease-affected municipalities;

(iv) establishment of a diagnostic screening campaign andchemotherapy for treatment of about 35,000 cases; and

(v) procurement of vehicles and equipment.

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The project would also make provision for strengthening the O&M capabilitiesof the seven NIA Regional Offices covered by its activities; introducingan input-output monitoring program of selected systems under NISIP: I andNISIP: II; and initiating feasibility studies for three new irrigationprojects.

Project Works

3.02 Rehabilitation of Existing Systems. The improvements would includerepairs to existing diversion structures and outlet works, constructionand/or enlargement of canals and drains, repairs and modification of existing,and provision of new, water-regulating and delivery structures, and theconstruction of O&M, access and farm roads. General features of the improvedirrigation systems would include additional canal structures such as checks,turnouts and installation of gates on existing canal structures to moreeffectively control water deliveries and to provide water more efficiently toeach field as needed. Constant head orifice turnouts to sublaterals, or awater measuring and control device of an equivalent nature, would be providedfor water deliveries to rotational areas of about 50 ha. Turnouts would beprovided for each 10 ha unit from which farm ditches, constructed as part ofthe project, would convey water directly to most farms. In the Mindanaosubproject area, nearly all farms would obtain water directly from a farmditch; in the Southern Luzon and Western Visayas subproject areas, some farmswould still receive water through their neighbors' fields. Farm drains wouldconvey excess water from each 10 ha unit to the main project outlet drains inflat areas. For more steeply sloping areas, such as some Southern Luzon andWestern Visayas subproject systems, where the land gradient in the directionof flow is in excess of 0.4%, the farms would drain from field to field, andconsequently the intensity of farm and collector secondary drains would besomewhat lower. Canals would be unlined except for short length where thesoils are erosive. Working stations for Water Management Technicians (WMT)would be provided for about each 500 ha of irrigated land in the project.The stations would provide space for temporary storage and drying of paddy.Gatekeeper quarters would be constructed at the major checks and turnouts ofmain canals and diversion sites for proper, safe and effective operation.

3.03 Gravel surfaced O&M roads would be constructed on the canal banks.Canals with a design flow greater than 5.0 cu m/sec, would be provided witha roadway 5 m wide on both banks, if the service area is on both sides ofthe canal, and on one bank where the canal serves the area on one side. Canalswith capacities between 2.0 and 5.0 cu m/sec would be provided with a 3.5 mwide road on one bank. The roadway along waterways with capacities less than2.0 cu m/sec and along some of the major farm ditches would be a nongravel,2.0 m wide cycle or cart path. Access roads 5.0 m wide would also be providedas links between the existing major roads of the area and the canal O&Mroads. These roads would also serve as farm-to-market roads. Gravel surfacingon some of the major existing farm-to-market roads would be provided. Thesurfacing of the roads would be 20 cm thick for 5.0 m wide roadways and 15 cmthick for a 3.5 m roadways. To allow continuous passage along the O&M roads,bridges and/or culverts across the existing drainage waterways would be

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built. However, on major streams or rivers, the O&M roads would be connectedto existing bridges by short access roads instead of constructing expensive,

multispan bridges.

3.04 The proposed level of on-farm distribution and drainage is similarto that being implemented in other Bank-assisted projects, and would be asubstantial improvement on the present, practically nonexistent system. Dueto smaller farm holdings, the density of farm ditches would be greater in theSouthern Luzon subproject area and the density and depth of farm drains wouldbe increased in four systems of the Mindanao subproject area to provide forcontrol of schistosomiasis. Rice has been grown in the project area for manyyears and the land is reasonably level and generally well laid out so no landleveling would be required at this stage. The landholdings are small andsomewhat fragmented in the Southern Luzon subproject, however a program ofland consolidation and boundary realignment, while desirable, is unrealisticdue to high population pressures on the land and local inheritance practices.No boundary realignment or land consolidation would be required in theWestern Visayas and Mindanao subprojects.

3.05 Extension of Existing Systems. All of the extension areas, exceptthe Ogsong system in the Southern Luzon subproject, the Sibalom-San Jose andPangiplan systems in the Western Visayas subproject, and the Roxas and Padadasystems in the Mindanao subproject would use existing diversion structures.The main canal, with related structures and outlet works, would be enlargedto carry the additional flow required for the extension areas of each system.New distribution, drainage, access and on-farm facilities would be builtaccording to the standards and densities for rehabilitation works.

3.06 For the extension area of the Ogsong System in the Southern Luzonsubproject, an ogee shape diversion weir, 22 m long, with a maximum height of1.5 m above stream bed would be constructed. The Sibalom-San Jose system inthe Western Visayas subproject is an old system built in 1926, whose maindiversion works located on the Tipulan river about 600 m upstream from itsjunction with the Sibalom river consist of a trapezoidal concrete dam (170 m)with falling shutter section (60 m), which was completely destroyed forcingthe construction of an upstream brush dam. Water shortage due to loss ofhead during the dry season is the most serious problem. To solve the watershortage at the main diversion works, it is planned to construct a new intakeat the left bank of the Sibalom river about 12 km upstream from the junctionwith Tipulan river and a 12 km diversion canal between the proposed intakeand the main diversion dam. The falling shutter section at the main diversiondam would be replaced by a concrete ogee section. The falling shuttersection of the Pangiplan system in the Western Visayas subproject would alsobe replaced with a concrete ogee section about 30 m long and 1.0 m high. TheRoxas system in the Mindanao subproject is served by three diversion works,located on the Maramag and Kuya rivers. The main diversion structure on theMaramag river is an ogee type concrete weir, whereas the other two diversionworks on Kuya river are of brush dam type and supplement water to the maindam through diversion canals. The project would replace one of the brushdams with an ogee shape concrete weir to serve the extension area. Part of

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the extension area of the Padada System in Mindanao would be served by a newdiversion weir of ogee shape about 20 m long and 1.0 m high on the Sacubcreek.

3.07 Drainage Works for Schistosomiasis Control Program. Within thearea of high endemicity in Mindanao the drainage network would be designed toreturn period. Drainage would take place in 48 hours and water depth in therice fields would not exceed 30 cm during the 48 hours of detention. Mainand secondary drains would be designed to carry flows at a minimum velocityof 0.5 m/sec. Gravel surfaced (20 cm thick) O&M roads 5.0 m wide would beconstructed on one side of the main drains. Along the secondary drains thesurfaced roadways (15 cm thickness) would be 3.5 m wide. Along the upperportion of secondary drains and along farm drains in the endemic area therewould be a 2.0 m wide nonsurfaced road.

3.08 O&M Buildings. A subregional office would be established at Molavein Zamboanga del Sur in Region 11, as the proposed regional office atZamboanga would be too far removed from the two irrigation systems of thisregion. The construction of subregional facilities would include offices,an infirmary, staff quarters, laboratory facilities, a warehouse and aworkshop for repairs and maintenance of O&M equipment. Project headquartersbuildings and other facilities would be expanded at Pila and Legazpi inthe Southern Luzon subproject, Iloilo for Western Visayas subproject andCotabato for the Mindanao subproject. Seven new field offices would beconstructed, which are proposed to be located in the towns of Lagnas andCandelaria in the Southern Luzon subproject, Kalibu, San Jose and Bago inthe Western Visayas subproject and Libangan and Hagonoy in Mindanao subproject.The existing offices, workshops and staff quarters, etc. are inadequate atthe following locations and would be expanded under the project:

(a) the field offices of the Agos, Palico, Dumacaa, Daet-Talisay-Matongdon, Mahaba-Nasisi and Cagaycoy Systems of the SouthernLuzon subproject, located at or near the towns of Infanta,Nasugpu, Lucena, Daet, Ligao and San Jose, respectively; and

(b) the field offices of the Salug, Roxas, Cantilan, Tingancan andKabacan systems of the Mindanao subproject, located in or nearthe towns of Molave, Maramog, Madrid, General Santos andKabacan, respectively.

Water Supply, Demand and Quality

3.09 Water Supply. All irrigation systems obtain their water supplyfrom one, two, three or four river sources, using their own diversionand conveyance system. The project would not develop additional irrigationsupplies through construction of storage, but would improve and expand thearea covered by 26 existing irrigation systems. About 70% of the projectarea would be supplied with water during the dry season.

3.10 Four irrigation systems in the Southern Luzon subproject area, onesystem in the Western Visayas subproject area and five systems in theMindanao subproject area do not have any stream gauging at or near thediversion point, and the available data on seventeen streams of the remainingsixteen systems are discontinuous and in a few cases for short periods. Forthe ten ungauged systems, the long-term flows at each diversion point were

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developed by using the stream flow data of nearby river basins of similarphysical characteristics and adjusting them on an area basis. Short termstreamflow data were extended back to 1948 and up to 1973 by the use ofrainfall records. The generated streamflows were found to be in reasonableagreement with the concurrent actual streamflows wherever available. Forthose systems, which have stream gauges located downstream of the diversionpoint, the available streamflows were adjusted for upstream withdrawalsusing the figures for the benefited area available for the period from1966-1974.

3.11 Water Demand. About 47,300 ha are presently under irrigated ricecultivation in the wet season, out of which 31,200 ha are cropped to riceduring the dry season. An additional 6,400 ha are under irrigated sugar canecultivation. It was assumed that transplanted rice using 120-day nonphoto-sensitive varieties in both the wet and dry seasons would remain the dominantcrop in the project. Water requirements for rice in the three subprojectareas were based on the cropping calendars shown as Figures 5.1, 5.2 and5.3.

3.12 Rice land preparation and nursery were estimated to take 30 dayswith water requirements for saturation, evaporation and percolation asshown in Table 3.1. Flooding requirements to provide a minimum depth ofwater in the field for cultivation in each season were estimated to be 20mm immediately after transplanting, followed by additional 50 mm about twoweeks later. Field percolation losses were estimated to be 2.0 mm/day.Evapotranspiration rates were taken to be equal to the observed Class A panevaporation and effective rainfall was determined from observed dailyrainfall records and allowing water depth to fluctuate with the growth ofthe rice plants and limiting maximum depth to 150 mm. The overall irrigationefficiency was estimated to be 43% in the wet season and 50% in the dryseason at full development, based on farm irrigation wastes of 40% in thewet season and 30% in the dry season. The consumptive use of sugarcane wasassumed to be a ratio of observed monthly evaporation at Pototan, Iloilofor the Western Visayas subproject. The following crop coefficients wereused to obtain the consumptive use for sugarcane:

State of Growth Crop Coefficient

Planting - 3 months 0.53-4 months 0.84-7 months 1.07-9 months 0.75

The effective rainfall was computed on the basis of daily rainfall records atPototan and soil moisture capacity assumed as 30 mm for the first two monthsafter planting and 50 mm for the remaining period. An overall irrigationefficiency of 50% was used to derive diversion requirements for the sugarcane.

3.13 Seasonal and total annual diversion requirements are developed inTable 3.1. Monthly water requirements of the three subprojects for the riceand sugar cane crops are shown in Annex 4. Monthly water requirements andaverage river flows for those systems where water supply would be a signifi-cant constraint are shown in Table 3.2. Annual diversion requirements are

Table 3.1: PROJECT WATER REQUIREMENTS SUMMARY

(mm)

Mindanao suboro lectAll systems except

Southern Luzon subproject Western Visayas subpolect Cantilan, SalugSouthern Tagalog systems Bicol systems All systems and Tingacan Cantilan system Tingacan system Salug system

First Second Annual First Second Annual First Second Annual First Second Annual First Second Annual First Second Annual First Second Annualcrop crop crop crop crop crop crop crop crop crop crop crop crop crop

Paddy

Land preparationSaturation 70 80 150 80 70 150 75 50 125 70 80 150 60 70 130 80 90 170 70 80 150Evaporation 170 180 350 170 180 350 175 225 400 170 180 350 150 150 300 180 190 370 170 1R0 350Percolation 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120 60 60 120

Subtotal 300 320 620 310 310 620 310 335 645 300 320 620 270 280 550 320 340 660 300 320 620

Flooding for cultivation 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140 70 70 140

Crop water requirementsEvapotranspiration 476 361 837 390 383 773 445 453 898 425 440 865 483 416 899 552 521 L,n73 424 472 896Deep percolation 180 180 360 180 180 360 184 185 369 180 180 360 180 180 360 180 180 360 180 180 360

Subtotal 656 541 1,197 570 563 1,133 629 638 1,267 605 620 1,225 663 596 1,259 732 701 1,433 604 652 1,256

Total field water requirement 1,026 931 1,957 950 943 1,893 1,009 1,043 2,052 975 1.010 1,985 1,003 946 1,949 1,122 1,111 2,233 974 1,042 2,016Less effective rainfall 533 651 1,184 494 482 976 820 221 1,041 482 381 863 791 568 1,359 239 184 423 596 248 844Net form irrigation requirement 493 280 773 456 461 917 189 822 1,011 493 629 1,122 208 382 590 883 927 1,810 378 774 1,172Farm irrigation efficiency (2) 60 70 - 60 70 - 60 70 - 60 70 - 60 70 - 60 70 - 60 70 -Farm requirement (turnout) 822 400 1,222 765 664 1,429 315 1,174 1,489 822 899 1,721 344 546 890 1,473 1,325 2,798 662 1,136 1,808Conveyance efficiency (X) 80 80 - 80 80 - 80 80 - 80 80 - 80 80 - 80 80 - 80 80 -System operation efficiency (2) 90 90 - 90 90 - 90 90 - 90 90 - 90 90 - 90 90 - 90 90Diversion requirement (headworks) 1,143 557 1,700 1,070 928 1,998 432 1,639 2,071 1,144 1,252 2,396 470 755 1,225 2,045 1,840 3,885 875 1,536 2,512Overall irrigation efficiency 43 50 45 43 50 46 43 50 49 43 50 47 43 50 46 43 50 47 43 50 47

Water duty for diversion &conveyance facilities 9 2001cropping intensity (1/s/ha) 1.40 1.40 1.50 1.30 1.20 2.00 1.40

Sugarcane

Evapotranspiration 1,442Less effective rainfall 842

Net farm irrigation requirement 600Overall irrigation efficiency (2) /a 50Diversion requirement (headworks) 1,200

/a Estimated efficiencies - farm 70%, conveyance 80% and system operation 902.

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estimated to vary between subproject areas from 1.2 m to 2.5 m, of which 0.8m to 1.5 m would be required in the dry season. The diversion requirementfor sugar cane is estimated to be 1.2 m. The size of the irrigated area foreach system was determined from simulated operation studies using synthesizeddischarge records for the 25 year period 1948-73, and the estimated seasonalwater requirements for rice and sugarcane. The cropping calendar was chosento maximize the use of rainfall without exceeding local manpower constraints.No use of return flow was assumed except for Tingancan irrigation system inMindanao. About 55,000 ha can be irrigated during the dry season in the threesubproject areas. Adequate water supply is available to meet the supplemen-tary irrigation demand of each system during the wet season. The currentlyirrigated areas and the irrigable areas selected for development under theproject are summarized below and given in detail for each system inTable 3.3.

Subproject AreaSouthern WesternLuzon Visayas Mindanao Total

Currently Cultivated Area

First crop (ha)Rainfed 4,800 5,100 17,300 27,200Irrigated 12,000 21,900/a 19,800 53,700

Second crop (ha) 7,700 8,800 14,700 31,200Cropping intensity (%) 145 133 140 139

Future Irrigable Area

First crop (ha) 16,800 27,000/a 37,100 80,900Second crop (ha) 11,600 11,400 32,100 55,100Cropping intensity (%) 169 142 187 168

/a Includes 6,400 ha of sugarcane.

Although the future irrigable area for each system in the project was deter-mined taking into account the water rights of existing users, assuranceswere obtained from Government that the necessary water rights for bothexisting and expanded areas would be granted to NIA and no other rights whichcould adversely affect the project water supply would be granted except bymutual agreement with the Bank.

3.14 Water Quality. Tests of water samples from seven major streams inthe Southern Luzon subproject, five streams in the Western Visayas subprojectand three streams, in the Mindanao subproject, serving a major part of 26existing systems, indicate good water quality with total dissolved solids

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Table 3.3: PRESENT AND FUTURE IRRIGATED AREAS

Irrigable area (ha)Present Future

NIA Irrigation First Second First SecondSubproject region system crop crop crop crop

Southern Luzon 4 Agos 1,000 1,000 1,200 1,200Palico 800 700 1,100 1,100Lagnas 400 300 1,000 1,000

Hanagdong 300 300 300 300Damacaa 2,500 1,400 2,500 2,500

Subtotal 5,000 3,700 6,100 6,100

5 Daet-Talisay Matogdon 2,600 1,500 4,800 2,300Hibiga 300 200 500 200Mahaba-Nasisi 1,300 800 1,600 800Ogsong 300 200 600 300Cagaycay 1,700 800 2,000 1,300Bulan 400 200 600 200San Francisco 400 300 600 400

Subtotal 7,000 4,000 10,700 5,500

Total subproject 12,000 7,700 16,800 11,600

Western Visayas 6 Aklan 3,000 2,900 3,700 3,700Sibalom-San Jose 4,300 700 5,700 2,500Bago 13,000/a 4,800 15,800/a 4,800Pangiplan 1,600/a 400 1,800/a 400

Total subproiect 21,900 8,800 27,000 11,400

Mindanao 8 Labangan 1,600 1,200 2,400 2,400Salug 2,800 3,000 7,300 3,300

Subtotal 4,400 4,200 9,700 5,700

9 Roxas 400 300 1,400 1,300

Subtotal 400 300 1,400 1,300

10 Cantilan 1,300 900 2,400 2,400Tingacan - - 1,100 700Padada 1,300/a 500 2,500/a 2,000Lupon 1,500 1,100 2,000 2,000

Subtotal 4,100 2,500 8,000 7,100

11 Libungan 6,400 4,300 8,000 8,000Kabacan 2,700 2,000 6,100 6,100Malasila 1,800 1,400 3,900 3,900

Subtotal 10,900 7,700 18,000 18,000

Total subproject 19,800 14,700 37,100 32,100

Total 53,700 31,200 80,900 55,100

/a Under sugarcane cultivation; Bago - 5,500 ha, Pangiplan - 900 ha andPadada - 500 ha.

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under 300 ppm. The waters are of low salinity, slightly alkaline (pH 7-8)and free of toxic elements. All of the streams, where water samples have notbpte-n aaaiyzed, nave been us(ed for irrigation for periods ranging from 10 to50 years without adverse efifect on soils or crops in the project area.

Sratus of Engineering

3.15 Project planning studies, designs and estimates of the irrigation

and drainage systems and associated works were carried out by NIA with theassistance of Sanyu Consultants Incorporated of Japan. For rehabilitation ofthe existing systems, survevs were made of the main canals, major creeks anddrains and within the sample areas for secondary canals, by taking crosssections at 20 to 50 m intervals to determine excavation quantities. Rehabil-itation costs of the remaining laterals, drainage and on-farm facilities werebased on unit quantity estimates per hectare of each major item obtained fromsample areas applicable to a particular system for which designs were prepared.Canal structure requirements in the rehabilitation area were determined inthe field by NIA inspectors anad costs were estimated for repairs, replacementsor additions. O&M roads were based on canal capacity and needs within theservice area and were checked in the field to ensure that adequate access toproject works would be provided. Access roads were also provided as a linkbetween service and existing mnajor roads. Surveys were made of the new maincanals proposed in the extension areas to determine construction quantities.Existing 1:50,000 scale maps were used to determine lateral and drain loca-tions and costs were based on unit quantities of a sample area within eachextension area. Requirements for structures in the extension areas weredetermined according to basic irrigation design practices. Repair work onriver diversion structures was determined from field inspection of eachstructure. The planning and (design of sample areas has been carried out insufficient detail to permit a reduction in the provision for physical contin-gencies from 20% in NISIP:I to 15%. Sufficient investigations have beenmade to ensure that suitable materials are available for construction ofcanal embankments and maintenance roadways.

3.16 The topographic maps of 1:4,000 scale used in the sample areastudies were prepared by conventional ground survey methods. The topographicmaps of the service area on a scale of 1:4,000 would be prepared using recentaerial photographs and/or conventional ground survey methods. These mapswould be used for detail planning and design of on-farm facilities for theproject area and new distribution as well as drainage systems in the extensionareas. The base maps for land classification were prepared by enlarging oldaerial photographs of 1:15,000 scale to a scale of 1:10,000.

3.17 Construction of the irrigation and drainage system would begin inearly 1979 with preconstruction activities starting in the middle of 1978(see Figures 3.1, 3.2 and 3.3). All project works are expected to be comple-ted by end-1983.

Strengthening of Regional O&M Capability

3.18 Three out of the eleven NIA regions were covered by NISIP:I(Loan 1414-PH) and the proposed project would deal with an additional seven NIARegions 4, 5, 6 , 8, 9, 10 and 11 centered on Pila, Legazpi, Iloilo, Davao,

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Cagayan de Oro, Cotabato and Zamboanga respectively. In addition to providingO&M equipment necessary to adequately maintain the systems rehabilitated andexpanded under the project, funds would also be included to purchase enoughequipment to operate and maintain the remaining 19 systems, covering about36,500 ha in the seven regions (Table 3.4). In the absence of additionalregional equipment, maintenance of the project systems would suffer byattempting to distribute the project equipment too thinly on the ground. Theresult would be a more or less rapid return to the existing situation ofbadly deteriorated systems through lack of maintenance. In making provisionfor regional O&M equipment requirements, account has been taken of the amountand condition of existing equipment and of the existence within a region ofany system where O&M equipment is being provided under other on-goingexternally financed projects. The new subregional office at Mlolave inRegion 11 which would be built under the project, would also control theRugnan, Maranding, M'lang and Marbel systems which are not included inNISIP:II. Funds would also be provided under the project for about 40study tours and training scholarships of eight to ten weeks duration inneighboring countries with projects of a similar nature. The scholarshipswould be for the benefit of NIA staff working on design, construction,operation and maintenance of both NISIP:I and NISIP:II systems.

Input-Output Monitoring

3.19 The NIA is currently constructing and/or rehabilitating about290,000 ha under eight Bank loans and if the proposed project is included,this would amount to 370,000 ha and about 190,000 families. If theseprojects are to be successful, when NIA has completed their construction,besides attaining the projected cropping intensities, farmers must reachthe projected paddy yields of around 4.0 ton/ha. To do this on a sustainedbasis, farmers must receive a sufficient and timely supply of farm inputs,such as credit, seed, fertilizer, pesticide, labor, threshing and dryingfacilities, and transport and marketing services. If these inputs do notreach the farmers the success of the entire NIA irrigation program could bethreatened.

3.20 A program of input-output monitoring was established under theChico Irrigation Project (Loan 1227-PH) with the objectives of (a) monitor-ing the flow and build-up of farm inputs in each project area before andduring each crop season, to give NIA sufficient warning of any shortfalland allow it to take appropriate action; and (b) monitoring the size andthe recipients of benefit flows in each project area. This program hasbeen in operation in the UPRP service area for about one year, with usefulresults. It would be desirable to extend this program to the systemsbeing rehabilitated under NISIP:I and the proposed project.

3.21 The program would be implemented in three phases. Phase 1, duringthe first year of project implementation, would cover the training ofmonitoring personnel and preparation of five-year agricultural developmentplans for the chosen systems. Phase 2, extending over a period of two years,would implement monitoring procedures on the selected NISIP:I systems. Theprogram would be extended to cover the larger systems of NISIP:II under Phase3 during the last three years of the implementation period. The program

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Table 3.4: IRRIGATION SYSTEMS OUTSIDE NISIP: II

Irrigation Service areaRegion system (ha)

4 Diezmo pump 1,000(Southern Tagalog) Tambangan pump 200

Kay Akle 1,000

Subtotal 2,200

5 Oco 400(Bicol) Lalo-Barit 4,000

Pili 300

Subtotal 4,700

6 Sibalom 2,500(Western Visayas) Barotac Viejo 2,500

Mambusao 2,100Panakuyan 1,200Santa Catalina 1,000Dumaguete 200Tanjay 500

Subtotal 10,000

8 Dipolo 1,800(Mindanao)

10 Banga 3,100(Mindanao) Marbel 2,400

11 Rugnan 4,700(Mindanao) Maranding 5,200

M'lang 2,400

Subtotal 14,700

Total 36,500

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would be implemented under the direction of the Agricultural Department ofthe Special Projects Organization of NIA who would coordinate closely withthe National Food and Agriculture Council (NFAC). A provision has been madeto engage individual consultants of a specialized nature to assist NIA inboth the input and output monitoring phases of the program.

Schistosomiasis Control Program

3.22 Background. Mindanao is one of the schistosomiasis endemic regionsin the Philippines, with four out of the ten systems included in the Mindanaosubproject being affected. Much of the land within these systems is near sealevel elevation and there are large areas of permanently inundated swamp.The mean annual rainfall is about 2,100 mm, but even in January, the driestmonth in the year, rainfall averages 100 mm. The combination of sustainedrainfall, flat relief and poor drainage provides a particularly suitablehabitat to the snail vector of the disease. The endemic area within andaround the four irrigation systems contains 11 municipalities and a totalpopulation of about 140,000 people. The estimated number of persons infectedwith the disease is 53,000, for an average infection rate of 22%. Thehighest prevalence rates are found in the seven towns of the Salug valleywith a population of about 100,000 and an estimated mean prevalence rate of35%. The irrigation systems to be rehabilitated and/or expanded under theproject involve some of the areas with the highest incidence of the disease.

3.23. The Proposed Control Program. It is essential that the proposedupgrading, expansion and intensification of irrigation in the endemic areasshould not worsen the disease situation by creation of new snail habitats.The Leyte subproject of NISIP:I includes a comprehensive program of drainageworks and drainage maintenance to ensure that all irrigation water andfield run off would remain channelled. In Leyte the drainage program coversthe entire watershed area and is not confined to the irrigated service areas.A similar approach in the Mindanao subproject area would be very expensive,as four separate watersheds would be involved and the proportion of totalarea to be drained in relation to irrigated areas and affected populationwould be very high. For the affected Ilindanao irrigation systems it isproposed to draw up a full watershed drainage plan along similar lines as inLeyte, but to implement the plan initially only within the boundaries of theirrigation service areas. This would ensure a minimization of exposure tothe snails within the systems, while allowing for a later extension of thedrainage works should results both in the Leyte and the service area indicateit was essential. Implementation of the additional drainage works requiredfor snail control at the same time that the systems are rehabilitated, wouldalso be less expensive and disruptive than having to come in at a later dateto do the work after rehabilitation is completed.

3.24 Health Aspects. The Schistosomiasis Control and Research Service(SCRS) of the Department of Health (DOH) which is responsible for monitoringand control of the disease in the affected area, is understaffed and lacksadequate logistical support facilities. The project would provide field labs,equipment and vehicles and increased personnel. Four control teams wouldbe established, one for each of the affected systems. Each team would bebased on a field lab and headed by a parasitologist and would include a

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malacologist and a sanitary engineer, the remaining staff would be techni-cians and laborers. The teams would be responsible for snail and diseaseprevalence surveys and would liaise closely with NIA survey and designpersonnel to ensure that the drainage plan is drawn up with up to datemalacological and disease data. Provision would also be made under theproject for a health education campaign, based primarily on the schools andbarrio health centers, to alert the population to the dangers of thedisease, and to supply information on prevention and treatment. Whileexisting drugs do not lend themselves to a mass chemotherapy campaign, adrug currently being tested in the Philippines shows considerable promisein this respect, and provision would be made in the project for treatmentof about 35,000 people, or about two thirds of the number estimated to beaffected by the disease. This is considered a realistic estimate of poten-tial acceptors of treatment over the period of project implementation.

Feasibility Studies

3.25 For the last few years, NIA with World Bank and Asian DevelopmentBank (ADB) assistance has been involved in the development of comprehensiveirrigation plans throughout the Philippines. World Bank assisted studiesinclude the Central Luzon Irrigation Development Plan (Loan/Credit 984/472-PH),a groundwater development program (Loan 1080-PH), and the Jalaur Stage IIproject (Loan 1367-PH), while the ADB has assisted the Mindanao IrrigationStudy. These investigations have identified a number of multiple purposeprojects, many of which, especially those with storage potential, show apreliminary rate of return as high as 25%. The Government has requested Bankfinancial assistance in the preparation of feasibility grade studies forprojects to be selected by the Government. The selection would be based onGovernment priorities within the sector, and would be subject to the Bank'sreview. Detailed terms of reference for consulting and contractual servicesfor investigation of each project to be studied at the feasibility level ordesigned for implementation would be submitted to the Bank before any ofthese studies are undertaken. It is estimated that about three projectsinvolving from 50,000 to 80,000 ha of irrigated area would be studied, out ofwhich one priority project would be prepared with detailed design for imple-mentation. Provision would be made for a total of 320 man-months of consult-ing services to assist NIA at an overall rate of $7,800 per man-month, on thebasis of an average requirement of 75 man-months per feasibility study and 95man-months for the preparation of detailed design. Provision would also bemade for surveys, mapping, geophysical and detailed geologic studies to becarried out by contract. Assurances were obtained that NIA would prepareterms of reference for feasibility studies of three irrigation projects to befinanced under the present loan and that it would carry out these studieswith the assistance of consultants, whenever necessary, under terms andconditions acceptable to the Bank.

Cost Estimates

3.26 Total project costs are estimated at US$138 million, of whichUS$65 million or 47% is foreign exchange. Project costs are based onquantity estimates for feasibility designs and unit prices prevailing in theBank-assisted Luzon projects in mid-1976 excluding all taxes, adjusted toconditions in the three subproject areas. Unit prices for equipment,

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materials and supplies are based on recent quotations received by NIA. The

Government exempts NIA from paying taxes or duties for equipment, material

and services procured under foreign-assisted projects, so all the costsexclude such taxes. NIA's costs for design and construction supervision are

included under engineering. All costs are indexed to a common level, June1978, and this is the base cost level for the project. A physical contingency

factor based on the degree of investigations completed to date was applied.

A factor of 15% was used for irrigation civil works and the health aspect of

the schistosomiasis control program. A higher factor of 20% was used for

drainage works of the Mindanao schistosomiasis control program, where the

accuracy of quantities obtained from small-scale maps was less reliable.In view of this, NIA would be asked to submit detailed designs and revisedcost estimates for Bank review before implementation of these works. A

contingency of 10% was used for the O&M facilities. Costs due to expectedprice increases over the implementation period amount to about 32% of the

base cost plus physical contingencies, assuming the following annual inflation

rates:

Annual Inflation Rate (%)1978-79 1980-83

Civil works 9 8Equipment and services 7.5 7

3.27 Details of cost estimates are presented in Tables 3.5 and 3.6,

and are summarized below:

ForeignLocal Foreign Total Local Foreign Total exchange--(Pesos M)--- ----- ----(US$ M)----- ----- ()

Irrigation works 269.3 262.2 531.5 36.4 35.4 71.8 45

Strengthening ofO&M capability 4.8 19.8 24.6 0.6 2.7 3.3 78

Input-outputmonitoring 7.4 3.3 10.7 1.0 0.5 1.5 27

Schistosomiasiscontrol program 17.3 16.8 34.1 2.3 2.2 4.5 47

Feasibility studies 15.1 20.4 35.5 2.0 2.8 4.8 60Engineering, adminis- 60.0 - 60.0 8.0 - 8.0 -

tration and super-visionBase cost estimate 372.5 322.3 694.8 50.3 43.6 93.9 46

Physical contingencies 49.3 40.3 89.6 6.7 5.4 12.1 45

Expected priceincreases 133.2 118.4 251.6 18.0 16.0 34.0 46

Total project cost 555.0 481.0 1,036.0 75.0 65.0 140.0 46

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Table 3.5: COST ESTIMATE

ForeignLocal Foreign Total Local Foreign Total c;;changv----- (Pesos '000) ------ ------ (US$ '000) …--- (%)

A. IRRIGATION SYSTEMS

1. Civil WorksDiversion dam & intake works 11,400 11,400 22,800 1,540 1,540 3,080 50Main canal 20,420 30,630 51,050 2,760 4,140 6,900 60Secondary distribution system 46,030 45,950 91,980 6,220 6,210 12,430 50Main & secondary drainage system 34,780 34,780 69,560 4,700 4,700 9,400 50Service, access & farm roads 47,730 47,730 95,460 6,450 6,450 12,900 50On-farm ditches & drains 79,550 53,060 132,610 10,750 7,170 17,920 30Water management stations 12,280 5,250 17,530 1,660 710 2,370 30Gatekeeper quarters 1,550 660 2,210 210 90 300 30Topographic surveys & mapping 5,620 3,700 9,320 760 500 1,260 40Physical contingencies 15% 43,800 33,440 77,240 5,920 4,520 10,440 43Engineering, supervision &administration 10% 56,240 - 56,240 7,600 - 7,600 -

SubtOtal 359.400 266.600 626.000 48,570 36,030 84,600 43

2. O&M BuildingsProject headquarters 3,920 1,700 5,620 530 230 760 30Field offices 4,660 2,000 6,660 630 270 900 30Physical contingencies 690 390 1,080 90 50 140 30

Subtotal 9,270 4.090 13.360 1.250 550 1,800 30

3. O&M Equipment 1,330 25,310 26,640 180 3,420 3,600 95

Subtotal Item A 370,000 296.66,06 00 50000 40.000 90.000 45

B. STRENGTHENING REGIONAL 0&M CAPABILITY

1. Civil WorksProject headquarters 3,900 1,700 5,600 530 220 750 30Physical contingencies 10% 300 300 600 40 40 80 50

Subtotal 4.200 2.000 6.200 570 260 830 31

2. O&M Equipment 900 18.100 19.000 120 2,450 2.570 95

Subtotal Item B 5.100 20.100 25.200 690 2.710 3.400 80

C. INPUT-OUTPUT MONITORING

1. Project personnel & training 4,290 510 4,800 580 70 650 122. Consultants services 660 440 1,100 90 60 150 403. Equipment & supplies 2,440 3,360 4,800 330 320 650 50

Physical contingencies 10% 810 290 1,100 110 40 150 25

Subtotal Item C 8.200 3.600 11,800 1,110 490 1,600 27

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Foreign

Local Foreign Total Local Foreign Total exchange

---- (Pesos '000) ------ ------ (US$ '000) _____

D. SCHISTOSOMIASIS CONTROL PROGRAM

1. Civil WorksDrainage system 7,030 6,290 13,320 950 850 1,800 47

Service roads 1,850 1,850 3,700 250 250 500 50Design of drainage works 1,480 1,110 2,590 200 150 350 40Physical contingencies 20% 1,850 1,850 3,700 250 250 500 50

Engineering, supervision &administration 10% 2,590 - 2,590 350 - 350 -

Subtotal 14,800 ll,l00 25,900 2,000 1,500 3,500 43

2. Health ComponentDiagnosis & treatment - 2,960 2,960 - 400 400 100Health & education 440 150 590 60 20 80 30Buildings 1,110 520 1,630 150 70 220 30Surveys and mapping 1,260 1,340 2,600 170 180 350 50Equipment, supplies & material 590 2,370 2,960 80 320 400 80Project personnel 3,330 - 3,330 450 - 450 -Physical contingencies 15% 670 1,560 2,230 90 210 300 70

Subtotal 7,400 8,900 16,300 1,000 1,200 2,200 55

Subtotal Item D 22,200 20,000 42,200 3,000 2,700 5,700 47

E. FUTURE STUDIES & TRAINING

1. Project personnel 4,740 1,180 5,920 640 160 800 202. Consulting services 3,700 14,800 18,500 500 2,000 2,500 80

3. Equipment & supplies 740 2,960 3,700 100 400 500 804. Contractual services 5,920 1,480 7,400 800 200 1,000 20

Physical contingencies 10% 1,200 2,480 3,680 160 340 500 70

Subtotal Item E 16,300 22.900 39,200 2,200 3,100 5,300 60

Total Items A-E 421,800 362,600 784,400 57,000 49,000 106,000 46

Expected price increase 133,200 118,400 251,600 18,000 16,000 34,000 46

TOTAL COST 555,000 481,000 1,036,000 75,000 65,000 140,000 46

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Table 3.6: IRRIGATION SERVICE AREA - COST ESTIMATE

Subproject ProjectSouthern Luzon Western Visavas Mindanao TotalRehab. Exten. Rehab. Exten. Rehab. Exten. cost Local Foreign--------------------------------- (USS 000) ------------------------------

1. Irrigation & Drainage FacilitiesDiversion dam & intake works 920 560 560 30 310 700 3,080 1,540 1,540Main canal 1,400 300 1,370 790 1,900 1,140 6,900 2,760 4,140Secondary distribution system 1,600 910 2,540 940 3,190 3,250 12,430 6,220 6,210Main & secondary drainage system 1,130 560 2,140 420 2,810 2,340 9,400 4,700 4,700Service, access & farm roads 2,200 1,060 2,910 720 3,410 2,600 12,900 6,450 6,450On-farm ditches & drains 2,710 1,310 3,970 960 3,880 5,090 17,920 10,750 7,170Water management stations 270 190 660 160 460 630 2,370 1,660 710Gate keeper quarters 70 40 40 30 50 70 300 210 90Topographic surveys & mapping 190 80 350 80 310 250 1,260 760 500

Subtotal 10,490 5,010 14,540 4,130 16,320 16,070 66,560 35,050 31,510

Contingencies (15%) 1,670 750 2,290 620 2,580 2,530 10,440 5,920 4,520Engineering, supervision &administration (10%) 1,220 580 1,650 480 1,850 1,820 7,600 7,600 -

Subtotal 13,380 6.340 18,480 5,230 20,750 20,420 84,600 48.570 36,030

2. O&M BuildingsProject headquarters 170 110 120 70 170 120 760 530 230Field offices 170 120 130 60 210 210 900 630 270

Subtotal 340 230 250 130 380 330 1,660 1,160 500

Contingencies (10%) 30 20 20 10 30 30 140 90 50

Subtotal 370 250 270 140 410 360 1,800 1,250 550

3. O&M Equipment - - - - - - 3,600 180 3,420

Total 13,750 6,590 18,750 5,370 21,160 20,780 90,000 50,000 40,000

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Financing

3.28 The proposed Bank loan of US$65 million would finance the fullforeign exchange cost of the project. It would cover 46% of total projectcosts. The Government would provide the remaining P-- 555 million (US$75 mil-lion) to NIA and to the Department of Health for the Schistosomiasis ControlService from annual budget appropriations. To ensure the continuous andtimely flow of funds, assurances were obtained that the Government wouldcause NIA to set up a special fund to service the project, which would bereplenished by the Government at monthly intervals to a level equivalent tothe estimated requirement for the next two months, which would be a conditionof effectiveness of the loan.

Procurement

3.29 Equipment, vehicles, spare parts and supplies for force accountconstruction, O&M for the project areas, strengthening of regional O&Mcapability, input-output monitoring and the schistosomiasis control program,costing about US$18.6 million, would be procured after international competi-tive bidding in accordance with Bank Group Guidelines. A preference limitedto 15% of the c.i.f. price of imported goods, or the customs duty, whicheveris lower would be extended to local manufacturers in the evaluation of bids.Local procurement practices are appropriate for off-the-shelf items costingless than US$10,000 each because the advantages of international competitivebidding would be clearly outweighed by the administrative costs involved.The total cost of such items would not exceed US$300,000. Bank staff havereviewed the local procedures and they are acceptable. There is adequatecompetition and foreign firms can participate. A list of equipment require-ments is given in Annex 1.

3.30 Civil works on the project service area (US$73.0 million) would bescattered over 26 separate locations in seven different regions. They wouldinclude rehabilitation of 53,700 ha, extension of facilities for 27,200 ha,main and secondary drains for the schistosomiasis control program and 0&Mbuildings. These works have to be planned and executed on short notice toavoid the growing season and bad weather and would have to be phased withirrigation releases, and would therefore not be suitable for internationalcompetitive bidding. In the past, NIA experienced considerable difficulty inattracting bids for such works. Over the last three years several steps havebeen taken on Bank-assisted projects to strengthen local contractors, includ-ing financing of reconditioned equipment and providing mobilization allowances,as a result of which there has been an encouraging response on the recentbids. However, it is doubtful that all civil works could be done by contractand some of them would therefore be carried out on force account. Neverthe-less, in light of NIA's large work program in the years ahead, it would notbe desirable to expand its force account work too rapidly. In previousBank-assisted irrigation projects outside of Central Luzon the amount ofcivil works done by force account was set at 40% of total cost, as this wasfound to provide the optimum combination of force account and contract work.

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During negotiations NIA pointed out that it had had great difficulties inattracting contractors for the ADB-assisted projects in Mindanao. Sincethe civil works in the Mindanao subproject would account for about 50% ofthe total civil works cost, it was agreed to set the amount of civil worksdone by force account at 65% of total cost of civil works. Competitive biddingin accordance with local procedures is appropriate for the balance of thework. Bank staff have reviewed the local procedures and they are acceptable.There is potentially adequate compensation and foreign firms can participate.

Disbursements

3.31 Disbursements would be made at the rate of 100% of the foreignexchange cost of directly imported equipment, and 100% of the ex-factoryprice of locally manufactured equipment and 65% for imported equipmentprocured locally. Disbursements for civil works would be 30% of certifiedmonthly progress payments or expenditures. Disbursements for force accountworks would be made against certificates of expenditure, the documentation forwhich would not be submitted to the Bank for review, but would be retainedby the borrower and made available for inspection by the Bank's supervisionmissions. For civil works contractors' mobilization and equipment, disburse-ment would be at 100% of foreign exchange cost. For costs of consultantsand technical assistance, disbursements would be at the rate of 100% of totalcost.

3.32 Disbursement of the Bank loan would be against import documentation,contracts and certified records of payment or expenditure. It is expectedthat disbursements would be completed by December 31, 1984, approximately oneyear after the end of construction. In construction with the Bank, savingsunder the project would be used to finance similar additional work in theproject area. An estimated schedule of expenditures, a semi-annual disburse-*ment schedule and a proposed allocation of loan proceeds are given in Annex 1.

Accounts and Audit

3.33 The NIA and the SCRS are Government agencies and their accounts areaudited annually by Government's Commission on Audit. Assurances wereobtained that these agencies would maintain separate accounts for the projectand that after audit by the Commission on Audit, the project accounts,together with the auditor's comments and opinion on the certification ofexpenditure for force account work, would be sent to the Bank within sixmonths of the close of each financial year.

Environmental Effects

3.34 In all three subproject areas malaria is effectively controlled bya Government program of house spraying with residual insecticides. Theprincipal health problems in all three areas are protein deficiencies insmall children, enteric diseases and tuberculosis. The proposed projectwould have little impact on these. The project would have a beneficialeffect on the schistosomiasis-infested areas of the four systems in Mindanaoas a result of the proposed control program.

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4. ORGANIZATION AND MANAGEMENT

Project Management

4.01 NIA was created in 1974 and given responsibility for developing,operating and maintaining all national irrigation systems in the Philippines.The Government finances NIA through the sale of bonds or from appropriations.A board of directors is responsible for the agency and the Administrator,who is appointed by the President of the Philippines, handles management.NIA has recently been reorganized to better deal with the requirements ofthe Government's policy of irrigation development. The integration of themajor foreign-assisted projects under a Special Projects Organization (SPO)headed by an Assistant Administrator was one of the first results of thereorganization. Even before establishment of the SPO, most of the foreign-assisted projects were not implemented by the regular NIA field offices, butwere entrusted to ad hoc project offices specially created for the purpose.The regional field offices have suffered in terms of access to funds, staffand equipment, compared to the various special project offices. The proposedproject, covering a large number of small systems scattered over a widearea, would not lend itself to implementation by a special project office,but would be suitable for execution by NIA's field offices. The projectwould be the second major foreign-assisted project to be implemented by theregional offices and would help to strengthen their construction, operationsand maintenance capabilities.

4.02 The Assistant Administrator for Engineering and Operations isresponsible to the Administrator for the eleven regional NIA offices coveringthe Philippines. In headquarters there are a number of support departmentsheaded by directors. These departments are represented at the regional levelby divisions with similar functions. The regional offices are headed byregional directors who are responsible for all NIA activities in the provincesconstituting their regions, except for projects assigned to the SPO (Fig. 4.1).NIA has appointed a Project Director for NISIP:I, based in Manila, to bedirectly responsible for execution of the project under the overall supervisionof the Assistant Administrator for Engineering and Operations. The ProjectDirector, with a small support staff, has day-to-day responsibility for coordi-nating the work at headquarters of the three NIA departments with significantroles in project implementation. He would also assume responsibilities forNISIP:II. Execution at the field level would be under the immediate controlof the Regional Directors of Regions 4, 5, 6, 8, 9, 10 and 11. To assist theProject Director, two project coordinators would be appointed, one of whomwould be responsible for the NISIP:I Project as well as the NISIP:II systemsin Regions 4 and 5. The second coordinator would be responsible for theremaining NISIP:II systems in Regions 6, 8, 9, 10 and 11 (Fig. 4.2).

4.03 The technical responsibility for operating and maintaining all theproject systems would be with the Operations Department in the central officeand the Operations Divisions at the regional level. At the end of construction,the field offices would become irrigation districts, which in turn would besubdivided into irrigation divisions of about 2,500 ha. The division wouldbe controlled by a supervisor and would be subdivided into 500 ha units, eachunder a Water Management Technician (WMT). The smallest organizational entitywould be made of two 50 ha units under a ditchtender (Fig. 4.3).

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4.04 At completion of construction, about 156 WMTs would be required.Most of the technicians would be agricultural or agricultural engineeringgraduates. NIA proposes to reserve up to 15% of WMT posts as an incentivefor competent and experienced ditchtenders. All WMTs, whether directlyrecruited or promoted to the post, would undergo a one-year training programin water management, crop production and farmer organization at one of thefour training centers being run by the SPO.

4.05 The Schistosomiasis Control Council (SCC), of the Department ofHealth (DOH) would be responsible for implementating the public healthaspects of control program under the project. The NIA Administrator is amember of the SCC, and NIA would be responsible for all engineering andprocurement aspects of the schistosomiasis control program in the Mindanaosubproject area. Assurances were obtained that NIA and DOH would enterinto a formal agreement acceptable to the Bank for implementation of theschistosomiasis control program by June 30, 1978.

Agricultural Supporting Services

4.06 Extension. The National Food and Agriculture Council (NFAC) isresponsible for coordinating all agencies concerned with production of foodcrops and is the body overseeing the implementation of the Government'sMasagana campaign for increased rice production. The Council operatesthrough provincial and municipal action committees, which would perform allthe necessary coordinating functions for the various irrigation systemswithin the project area. The number of farmers per extension worker averagesbetween 200 and 250 in the project systems. The technicians are all graduatesand come mainly from the Bureau of Agricultural Extension (BAE) and theBureau of Plant Industry (BPI) of the Department of Agriculture. The watermanagement staff (para. 4.04) would be additional to the existing extensionpersonnel provided by the various Government agencies.

4.07 Research. In addition to the central research facilities providedby the International Rice Research Institute and the College of Agricultureof the University of the Philippines at Los Banos, there are a number ofrice research stations operated by the BPI in the project area. TheSouthern Luzon subproject is serviced by experimental stations at Daet,Pili and Guinobatan; the Western Visayas subproject by stations at LaCarlota and Hanungaya; and the Mindanao subproject by stations at SanFrancisco, Midsayap, Carmen, Amas and Davao. The main emphasis of the workon rice in these stations is on varietal screening, foundation seed productionand certification, fertilizer trials and increased land utilization throughmultiple cropping. Research on sugarcane is carried out by the PhilippinesSugar Institute (Philsugin), which has a station at La Granja serving theBago system in the Western Visayas subproject. Research is carried out onvarieties, soils and fertilizers, farm engineering and control of pests anddiseases. The station also has a laboratory doing research on sugar andits by-products.

4.08 Fertilizer. Annual consumption of fertilizer in the subprojectareas currently amounts to about 3,400 tons for Southern Luzon, 8,400 tonsfor Western Visayas and 6,500 tons for Mindanao. About 55% is in the form of

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urea and ammonium sulphate and the balance is evenly divided between ammoniumphosphate and compound formulations like 14-14-14. Application rates varyconsiderably between subproject areas, being highest in Western Visayas andlowest in Mindanao. At full development the project would require about30,300 tons of fertilizer, of which 5,300 tons in Southern Luzon, 11,300tons in Western Visayas and 13,700 tons in Mindanao. Urea would accountfor 70% of the total requirements, triple superphosphate and muriate ofpotash for 23% and 7% respectively. The potash would be used on the sugar-cane crop and on rice in the Mindanao systems, where a light application ofthe nutrient is recommended. In terms of nutrients the average applicationper crop season for rice would be about 65 kg/ha nitrogen and 20 kg/haphosphoric acid. Potash would be applied at 5 kg/ha in Mindanao. Forsugar-cane the rate of application would be 165 kg/ha nitrogen, 100 kg/haphosphoric acid and 125 kg/ha potash. There is a good existing distributionnetwork for fertilizer and agrochemicals, which could handle the additionaldemand.

4.09 Seed. A total of about 9,000 tons of rice seed is used in thethree subproject areas annually. Most of the seed is obtained by retentionfrom the farmers' commercial production and only a small amount is purchasedfrom BPI - registered seed growers. At full development, the project woulduse approximately 6,500 tons of rice seed per annum. As a result of improvedseed quality and water control, there would be a decrease in the existing 85kg/ha seed rate to 50 kg/ha. Assuming that rice seed would be renewed everyfour crop seasons, the estimated annual requirement of certified seed forthe project area at full development would amount to 3,300 tons. At aconservative seed yield estimate of 3 ton/ha and allowing a safety factor,about 1,200 ha of certified seed production would be required to meet theproject needs, of which 600 ha in Mindanao and 300 ha in each of the othertwo subproject areas. No technical difficulties are foreseen in establishingthe necessary seed growing facilities to produce the required quantity ofseed, although some organizational improvement of the existing seed growingsystem would be required (para. 4.12).

4.10 Farmers' Organizations. As part of the Agrarian Reform program,the Government, through the Department of Local Government and CommunityDevelopment (DLGCD) is promoting the formation of pre-cooperative farmerorganizations, based on a barrio or hamlet. The organizations would serve aschannels for the inflow of technical services, credit and inputs and asassembly points for produce intended for markets. It is hoped that theseorganizations will grow into full-fledged, formally constituted cooperatives.This approach to cooperative organization fits in well with the 50 hairrigation unit approach by NIA on Bank-assisted irrigation projects.

4.11 Credit. The increase in irrigated area, higher cropping intensityand better farming practices resulting from the project would require anincrease in production credit. Under the Agrarian Reform and Masaganaprograms the Government has strengthened the credit institutions and easedcredit to small farmers, previously dependent on the landlords and privatelenders for their requirements. A system of "supervised credit" is used whichincludes the provision of technical services to the borrower to ensure that

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recommended practices, such as variety, fertilizer and agrochemical inputs,are adopted. Under the system no collateral is required. At full projectdevelopment the annual credit requirement for all three subproject areaswould total P 123.6 million (US$16.7 million), of which E 70.8 millionwould be for the wet-season crop and P 52.8 million for the dry-seasoncrop. There has recently been a very sharp curtailment of officiallysponsored production credit following on the poor repayment of previousloans. Credits granted under the latest phase of the Masagana campaignamounted to only 5% of the total issued under the first phase in 1973 andcovered less than 20,000 ha, compared to over 620,000 ha in Phase I.

4.12 The recent slowdown in the Masagana "supervised credit" programand the lack of alternative credit arrangements could have serious repercus-sions on rice production throughout the Philippines. The Government isaware of this and has a number of studies under way to seek ways of over-coming the current difficulties. The Presidential Committee of AgriculturalCredit (PCAC) with its working group, the Technical Board on AgriculturalCredit (TBAC), is now studying the problem. However, the ongoing studiesare focussed on credit and do not address the other aspects of agriculturalsupporting services including provision of extension, fertilizer, seed,crop protection etc. Recent information from the UPRP Project has showndeficiencies in the quality of agricultural supporting services providedto the farmers. At the Government's request, a Bank mission visited thePhilippines in February 1978 to assist the Department of Agriculture toprepare a comprehensive program for strengthening supporting agriculturalservices. Particular attention is being focused during this exercise on theneeds of irrigation systems. Assurances were obtained that the Governmentwould cause the Department of Agriculture and NIA to prepare a plan of actionby June 30, 1979 for the provision of effective agricultural supportingservices on the Bank-assisted irrigation projects, and, after reviewing suchplan of action with the Bank, would proceed with its implementation byJanuary 1, 1980.

5. AGRICULTURAL PRODUCTION

Present Cropping Pattern

5.01 In most of the project systems the first or wet-season rice cropstarts in April/May and harvesting takes place in September/October. Thesecond, or dry season rice crop extends between November/December and March/April. While a majority of the farmers adhere to these timetables, thereis considerable slippage and all stages of crop production may be going onsimultaneously in the irrigated areas. All rice is transplanted from fieldnurseries onto previously puddled land. For sugarcane the main plantingseason begins in November and continues to March. Harvesting is carried outthroughout the year with an emphasis on the dryer period between February andmid-May. Almost all of the irrigated land in the three subproject areas isplanted with improved rice varieties. Even in the rainfed crop the proportionof land under high yielding varieties ranges from 85 to 95%, with systems inthe Western Visayas subproject showing the highest use.

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Future Cropping Patterns

5.02 In the absence of the project there would be no significant changein cropping patterns. Under the project some 74,000 ha of rice land would beprovided with wet-season irrigation, of which 27,200 ha are currently rainfed.Improved facilities in the irrigation systems and better water managementwould allow dry-season cropping of rice to increase from the current31,200 ha to 55,100 ha. Overall cropping intensity would rise from thepresent 139% to 173%. The biggest change in cropping pattern would takeplace in the Mindanao subproject because over 40% of the currently rainfedland to be irrigated under the project is located there.

Yields and Production

5.03 In the absence of the project, the rate of increase in riceyields in the rainfed areas is estimated at about 0.7% per annum, while inthe irrigated areas yields are estimated to rise by 0.8% per annum. Yieldincreases would be due to some improvements in inputs, which would tend tobe offset on the irrigated areas by the continued deterioration of theirrigation/drainage works. Greatly improved water control as a result ofthe project, together with adequate supplies of credit and inputs andbetter extension service support, would raise yields of both rice andsugarcane. Present paddy yields are shown in Table 5.1. Projected yieldlevels are being attained by progressive farmers with good irrigationfacilities.

5.04 As a result of the project rice production would increase fromabout 234,000 tons of paddy at present to an estimated 516,000 tons at fulldevelopment in 1988. (Table 5.2) Sugarcane production would rise from416,000 tons to 486,000 tons.

Table 5.1: PRESENT AND PROJECTED YIELDS

PaddyRainfed Irrigated Irrigated Sugarcane

Subproject Crop 1 Crop 1 Crop 2

l lFuture | Future | Future Future

Present Without |Present Without With | Present Without With Present Without With…I…-------------------(ton/ha)…----------------------------------------------------------

Southern Luzon 1.5 1.6 | 2.6 2.9 4.0 I 2.7 2.9 4.0 - - -Western Visayas 1.6 1.7 | 2.6 2.9 4.0 | 2.5 2.9 4.0 64 68 76Mindanao 1.3 1.4 | 2.4 2.6 4.0 | 2.4 2.6 4.0 - - -

_ _ _ _ _ _ _ _ _ _ _1._ ._ _ _ _ _ _ I _ _ _ _ _ _ _ _ _ _ _ _ _ _

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Table 5.2: PRESENT AND PROJECTED CROP PRODUCTION

Southern Luzon Western Visavas Mindanao TotalPresent Future Present Future Present Future Present Future

…----------------- ------ ('000 tons) ---------- …-------___ --

Rice

Wet Season _Irrigated 31.2 67.2 40.3 82.4 46.3 146.4 117.8 296.0Rainfed rice 7.2 - 8.2 - 22.5 - 37.9 -

Subtotal 38.4 67.2 48.5 82.4 68.8 146.4 155.7 296.0

Dry SeasonIrrigated rice 20.8 46.4 22.0 45.6 35.3 128.4 78.1 220.4

Total 59.2 113.6 70.5 128.0 104.1 274.8 233.8 516.4

SugarcaneIrrigated - - 416.0 486.4 - - 416.0 486.4

Cropping Calendar

5.05 To ensure efficient utilization of resources and the avoidance oftechnical and organizational bottlenecks, cropping calendars must be preparedas a basis for extension and water management activities. Figures 5.1, 5.2and 5.3 show provisional calendars for the Southern Luzon, Western Visayasand Mindanao subproject areas respectively. The main changes from existingcropping calendars are in some acceleration of operations necessitated byhigher cropping intensities and to take advantage of rainfall peaks at thetime of land preparation, while ensuring that harvesting and threshing takeplace in the dryest conditions available. The cropping calendar for theSouthern Luzon subproject has been designed to minimize the risk of typhoondamage. All the calendars allow for a 30-day period for system maintenance.There would be no change in the existing timing of operations for sugarcane.

Farm Mechanization

5.06 At present, between 60 and 80% of the rainfed rice areas dependentirely on animal-drawn equipment for land preparation. In irrigated areasmachinery is used for land preparation on about 30-45% of the area cultivatedin both wet and dry season crops. With better water management, improvedaccess to the fields, the need for tighter scheduling of operations tomaximize water use and increased cropping intensities, it is estimated thatthe use of machinery would increase to about 60% of land preparation for bothwet and dry seasons in Southern Luzon and 70% in Western Visayas and Mindanao.It is anticipated that the machinery, mostly four-wheel tractors and rotarytillers, would be largely owned by farmers and contracted out to their

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neighbors, as is currently the practice. All rice is harvested manually bysickle. Threshing is done manually or by mechanical threshers. At presentthreshing is entirely manual in the Western Visayas systems and only 5-15%mechanical in the Southern Luzon systems, while in Mindanao between 50 and60% of all rice crops are threshed mechanically. Under project conditions ofbetter access and improved field drainage, it is assumed that mechanicalthreshing would be used on 40% of the area in Southern Luzon and WesternVisayas and on 75% of the area in Mindanao. Land preparation on 65% of thesugar cane areas is already mechanized and the proportion is expected to riseto 80% as a result of the project. All sugarcane harvesting is manual andno changes are anticipated.

Drying, Storage and Processing

5.07 The bulk of threshed paddy is currently sun-dried on whatever suit-able surfaces are available. Some of the rice mills have concrete dryingfloors. Existing arrangements are adequate for the present paddy crop, but asubstantial increase in drying facilities would be required to deal with theexpected rise in production, particularly in the Mindanao subproject area.The project would provide additional solar drying capacity attached to theWater Management Technicians Stations and the DLGCD is currently engaged ina program to provide every barrio with a paved area to be used for sport,recreation and crop drying. Storage capacity within the project areas isenough for present production, but would need to be expanded to meet theincreased yields. In addition to on-farm storage, there are public andprivate sector storage facilities. The National Grains Administration (NGA)plans to build additional storage and the private sector is expected tofollow suit to accommodate rising paddy production from the project areas.

5.08 There are about 550 privately owned rice mills and hullers inthe project area municipalities. Assuming a 200-day milling season, thesemills have an annual capacity of about 351,000 tons of paddy, compared tothe present project area annual production of about 234,000 tons. Since themills also cater to the needs of farmers outside the project areas, consider-able additional milling capacity would be required. The main increase wouldbe in Mindanao where production in the project systems is expected to rise byabout 165%. No difficulties are expected in providing the extra millingcapacity as the private sector is enterprising and has access to capital. Thesugarcane growing areas of the project are well equipped with processingfacilities which would be able to handle the expected increase in productionat full development.

6. MARKET PROSPECTS, PRICES, FARM INCOMES AND PROJECT CHARGES

Market Prospects

6.01 Rice. A major objective of the Government in the agriculturalsector is self-sufficiency in basic foods, especially rice and corn. Adeficit in rice, the main staple crop, has been a persistent problem for thePhilippines. Between 1963 and 1967 the Philippines imported an average of300,000 tons of rice annually. After a short period free of imports, the

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Government started importing again in 1971 at an annual rate of over 300,000tons, with a peak of 456,000 tons in 1972 as a result of disastrous floods.Three consecutive good crops in 1974 to 1976 have allowed imports to bereduced to 55,000 tons in 1976. In 1977, the Government exported 35,000 tonsand built a supply of about 3 months. The good performance of the past threeyears has been mainly due to favorable weather and irrigation developmentcausing a recovery in yields and an increase in the area planted. The Bank'sPhilippines 1975 Basic Economic Report projects the 1985 Philippine demandfor milled rice to be 5.0 million tons, equivalent to 8.5 million tons ofpaddy, including seed requirements. To meet this demand local productionwould have to increase over the next decade by slightly more than 3.5% peryear and thus the incremental paddy production from the project area would bemarketed without difficulty. The incremental production from the SouthernLuzon and Mindanao subproject areas would be sold for consumption in theManila and Eastern Visayas markets. Incremental production from the WesternVisayas subproject would be sold for consumption in Negros Occidental, atraditional rice importing area.

6.02 Sugar. The Philippines has been exporting sugar for nearly acentury; sugarcane production occupies a vital position in the country'sexternal trade and contributed an average of 20% of total export revenuessince 1970. Local consumption has been growing at a rate of about 5% perannum in the past decade due to population growth and increases in percapita consumption. The sugar industry is currently facing difficulties asa result of the decline in world prices following on the fast increase inproduction and stocks which occurred in response to the high sugar prices of1973-75. However, the Philippines Sugar Institute estimates that after aperiod of stasis, production will increase by 1985 to 3.8 million tons ofsugar from a 1976 production of 2.87 million tons. Sugar production in theproject area only accounts for 1.6% of current national production and atfull development would be only 1.4% of the total estimated Philippinesproduction.

Prices

6.03 All farm inputs and outputs were evaluated at present and projected1985 farm-gate prices expressed in mid-1978 constant prices. The prices forrice, sugar and chemical fertilizers were based on the Bank's commodityprice forecasts. The price structure of rice is presented in Table 6.1.The National Grains Authority (NGA) has been responsible for the relativestabilization of both consumer and product prices. Through 1972 the farm-gatesupport price for paddy and the domestic price for rice kept pace withchanges in the world market. Between 1972 and 1975, however, in the face ofrecord world market prices, the Government subsidized consumers by maintaininga low ceiling price for domestic rice and correspondingly low farm-gate priceto farmers. The low farm-gate price was maintained by Government sales ofimported rice on the domestic market below cost. Over the past two to threeyears the official support price and the world market price have beenpractically the same. It is assumed that the paddy farm-gate price in futurewould equal the financial cost to the Government of importing equivalentamounts of rice. An average farm-gate price for the project area is used asthe variations between subprojects amounted to less than US$1/ton of rice.

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Table 6.1: PRICE STRUCTURE FOR RICE /a

Project averageP/ton US$/ton

Present

Export price of Thai 25-35% brokens, fob Bangkok 1,890 230Ocean freight and insurance to Philippine port /b 140 17Import price, cif Philippine port 2,030 247Port handling charges 60 7Average cost of transport, port to selling center /c

net of average cost of transport, mill to selling center -30 -4Rice price, ex-mill project area 2,060 250Paddy equivalent price (63% recovery) 1,300 158Less average cost of transport, farm to mill -25 -3Value of by-products less milling costs 0 0Farm-gate paddy price 1,275 155

(Financial farm-gate price) /e (1,060) (143)

P/cavan

Farm-gate paddy price 64(Financial farm-gate price) 53

1985

Export price of Thai 25-35% brokens, fob Bangkok 2,385 290Ocean freight and insurance to Philippine port /b 140 17Import price, cif Philippine port 2,525 307Port handling charges 60 7Average cost of transport, port to selling center /c

net of average cost of transport, mill to selling center -30 -4Rice price, ex-mill project area 2,555 310Paddy equivalent price (63% recovery) 1,605 195Less average cost of transport, farm to mill -15 -2Value of by-products less milling costs /d - -Farm-gate paddy price 1,590 193

(Financial farm-gate price) /f (1,390) (188)

P/cavan

Farm-gate paddy price 80(Financial farm-gate price) 70

/a P/ton and US$/ton values at constant mid-1978 prices. Peso shadow pricedat exchange rate of US$1.00 = P 8.22.

/b Philippines ports used in this analysis are Manila, Cebu, Davao andGeneral Santos.

/c A selling center represents a town or city where the additional rice pro-duction could be sold. The data shown are the averages of the indi-vidual irrigation schemes in each subproject weighted according toproduction. P/ton figures rounded to produce a single average projectfigure in view of a subproject variation of + P 15 for this item.

/d This item is zero since the cost of milling paddy is on the average equalto the value of by-products of milling.

/e Present financial price is actual.

Jf 1985 financial price calculated by using the official exchange rate ofUS$1.00 = P 7.4.

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6.04 The present economic farm-gate price for sugarcane in the WesternVisayas subproject is calculated at P 120 per ton of cane and the 1985economic price at P 180 per ton. The equivalent financial prices areP 90 and P 160 per ton of cane respectively. The current and 1985projected prices are based on a raw sugar price f.o.b. Caribbean port ofUS$249 and US$364 per ton respectively. An observed milling output of 10:1has been used. Table 6.2 shows all present and future fertilizer pricesused in the farm budget and economic analyses.

Table 6.2: FERTILIZER PRICES(F/ton)

Present FutureFertilizers (per nutrient ton) Farm budget Economic Farm budget Economic

Nitrogen 1,850 1,860 2,120 2,315Phosphoric acid 4,860 1,530 1,835 2,000Potassium 3,550 1,050 1,083 1,165

Farm Incomes

6.05 Two farm models have been prepared for each of the three subprojectareas, showing the most prevalent size of farm in each area, representing thepresent condition of a rainfed and irrigated farm and indicating how thesefarms would fare in the future with the project. In the Western Visayassubproject, a third model showing a 10 ha sugarcane farm, which would receivesupplementary irrigation under the project, is also included. All the farmmodels are presented in detail in Annex 2 and summarized below.

Table 6.3: FARM INCOMES

Farm Present Farm family income Incremental incomeSubproject size status Present Future Present Future Per farm Per capita

(ha) (P) (US$) (US$)

Southern Luzon 1.0 Rainfed 1,065 6,870 145 930 785 1401.0 Irrigated 2,985 6,870 405 930 525 95

Western Visayas 1.5 Rainfed 1,630 9,430 220 1,275 1,055 1901.5 Irrigated 4,480 9,430 605 1,275 670 12010.0 Sugarcane 26,750 80,750 3,615 10,915 7,300 n.a.

Mindanao 2.0 Rainfed 1,560 14,135 210 1,910 1,700 3052.0 Irrigated 5,200 14,135 705 1,910 1,205 215

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6.06 The above farm models represent owner-operated farms, which aftercompletion of the land reform are expected to represent 55% of the farms --65% of the land (para. 2.08). The remaining farms would be operated byleaseholders and after the payment of rent, the respective annual income onthese farms would be lower by about US$300; US$400; and US$700 from thatof an owner-operated farm in Southern Luzon, Western Visayas and Mindanao.Furthermore, at least in the initial phases of the project, some of theowner-operators would still have to make payments for land acquired underthe land reform, and thus their income too would be less than the figuresshown above.

6.07 Assuming a household of 5.6 members and using the farm models frompara. 6.05, present per capita income in the project area ranges from alow of US$26 on a 1.0 ha rainfed farm in Southern Luzon to a high of US$126on a 2.0 ha irrigated farm in Mindanao. Incomes on sugarcane farms are sub-stantially higher but they account for only a small proportion of the projectarea and there are no reliable data on household size on these farms. TheBank's estimated absolute per capita poverty level in the Philippines isUS$177 (expressed in 1978 constant price levels); about 90% or 41,000 ofthe project's farm families are presently below this level. At full projectdevelopment in 1988, per capita incomes in the project area are projected torange from a low of US$114 for a leaseholder family in Southern Luzon (thecorresponding per capita income on an owner-operated farm would be US$172) toa high of US$341 on an owner-operated farm in Mindanao. The projectednational GNP per capita in the Philippines for 1988 is around US$600. Thusthe project would help to narrow the income gap between the various subproj-ect areas and the national average.

Cost and Rent Recovery

6.08 NIA has the authority to collect fees from users of irrigationsystems to finance operations and to reimburse construction costs. Fees onthe national irrigation systems were set in July 1975, to the equivalentof 2.0 cavans of paddy per ha (US$ 15/ha) in the wet season and 3.0 cavans(US$22/ha) in the dry season, to be applied uniformly to all national irriga-tion systems. As an exception to the uniform rate policy, the Government hasagreed to raise rates on Bank-assisted projects including the present projectto the equivalent of 3.5 cavans of paddy/ha in the wet season and 4.4 cavansin the dry season. These rates would be reached gradually over a period offive years from completion of construction. Rates in the UPRP have alreadybeen raised to the equivalent of 2.5 and 3.5 cavans of paddy/ha in the wetand dry seasons respectively.

6.09 NIA's total collection rate for the national systems was about 64% inFY75, but fell to about 27% in FY76 after the increase in rates in July 1975.A considerable improvement took place in FY77. NIA is currently preparing acomprehensive plan of action for improvement of collection of water chargesfor review by the Bank; the plan would also cover the project area systems.

6.10 All project charges, costs and benefits are measured at presentvalues discounted at 10% over the 40-year life of the project, and in termsof mid-1978 constant prices (Table 6.4). The incremental rent recovery index

Table 6.4: COST AND RENT RECOVERY /a

Southern Luzon Western Visayas MindanaoRainfed Irrigated Rainfed Irrigated Sugarcane Rainfed Irrigated

Subproject & farm model -----(1.0 ha)…----- ---- (1.5 ha)(----- -10 ha-- -----(2.0 ha)----- Total project---------------------------------- (p) ………------------------------------ (P million)

At Full Pro1ect DevelopmentIncremental gross value of production /b 7,195 3,610 9,335 3,500 12,800 17,240 8,480 -Less: Incremental cash production costs 1,465 885 1,880 780 4,900 3,730 1,580 -Equals: Incremental cash income 5,730 2,725 7,455 2,720 7,900 13,510 6,900 -

Less incremental- imputed return on own capital and credit charges /c 1,855 980 2,320 800 2,400 4,300 2,185 -- imputed value of family labor /d 735 335 785 185 - 1,160 550 -- imputed value of farm management /e 720 360 935 350 250 1,725 850 -- allowance for risk and uncertainty /f 1,080 540 1,400 525 250 2,590 1,275 -

Equals: Project rent 1,340 510 2,015 860 5,000 3,735 2,040 -Project rent as % of incremental cash income (Z) 23 19 27 32 63 28 30 -

Incremental water charges ]g 480 240 650 255 2,150 1,085 470

Total project (ha) 4.800 12.000 5,100 15,500 6.400 17,300 19.800 _

During the Project's LifeProject rent (P million) /R 6.4 6.1 6.9 8.9 3.2 32.3 20.2 84.0Incremental water charges (F million) /L 2.3 2.9 2.2 2.6 1.4 9.4 4.6 25.4Rent recovery index (Z) 36 48 32 29 44 29 23 30

Project costs (capital and recurrent) /h - - - - - - - 555

Incremental water charges /h - - - - - - - 128Cost recovery index (%) - - - - - - - 23

/a All calculations are in mid-1978 constant prices and represent incremental conditions, that is, with project minus without project condition.

/b From Annex 4.

/c Imputed return on land plus 10% on incremental cash investment.

/d Family labor valued at P 8.0 per day.

/e 10% of incremental gross value of production for rice farms.

/f 15% of incremental gross value of production for rice farms.

1& It is assumed that farm incomes, project rent and water charges build up to full development levels with proportional time streams.Consequently, discounting the flows will not affect the rent recovery ratios.

Jh Net present values, discounted at 10% p.a. over the project life (40 years).

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for the project as a whole is 30%. In the cost recovery analysis, US$86 mil-lion construction costs (base cost estimate plus physical contingencies)are charged against the project. Annual incremental O&M costs are US$13.2/ha.The present value of construction and O&M costs, discounted at 10% is US$75 mil-lion. At full project development, incremental project charges totalUS$3.5 million per year. Discounted at 10% their net present value totalsUS$17.3 million, giving a 23% cost recovery index for the project. Sincecapital repayment charges are fixed in terms of paddy, no allowance was madein the analysis for inflation. The cost recovery index is comparable to thatof other Bank-assisted irrigation projects in the Philippines. While theproject would very substantially improve farm imcomes, it is estimated thatat full development some 30,000 farm families on small rice holdings of lessthan 1.5 ha, about 67% of project farm families, would remain below theabsolute poverty level in the absence of off-farm income sources. Both thecost and rent recovery indices are virtually identical to those obtained forthe very similar NISIP: I project (Loan 1414-PH).

6.11 To ensure sound O&M practices and an equitable contribution bybeneficiaries toward recovery of project capital costs, the followingassurances, which were also agreed upon for NISIP: I, were obtained:

(a) the NIA would make annual budgetary provision to supply thefunds necessary for O&M of the project works;

(b) irrigation fees would be levied to provide NIA with sufficientfunds to ensure sound O&M practices and to contribute towardsrecovery of as much as possible of the investment cost withina reasonable period, taking into account farmers' incentives andcapacity to pay. A gradual increase in irrigation fees over aperiod of five years from completion of construction to a levelequivalent to about 3.5 cavans of paddy per ha in the wet seasonand 4.4 cavans in the dry season would meet the requirement;

(c) the NIA would take all necessary actions to ensure full and promptcollection of the irrigation fees; and

(d) the Government and the Bank would consult annually on the adequacyof water charges and the collection thereof.

6.12 Drainage works somewhat in excess of what is normally required foran irrigation system would be carried out in the four systems of the Mindanaosubproject as part of the Schistosomiasis Control Program (para. 3.23). NIAwould be responsible for O&M of this additional drainage network aftercompletion of construction. It would be inequitable to try to recover theO&M cost of these drainage works from water charges levied on farmers in theirrigation systems as the Schistosomiasis Control Program would benefit alarger population. Assurances were obtained that the Government wouldprovide NIA annually with sufficient funds to effectively maintain theanti-schistosomiasis drainage work built under the project.

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7. BENEFITS, JUSTIFICATION AND RISKS

7.01 The proposed project would increase yields on about 80,900 hacurrently dependent on run-of-the-river irrigation and rainfed cultivationby providing better water control, improved drainage and better agriculturalsupporting services. Except for about 6,400 ha of sugarcane in the WesternVisayas subproject, rice would be the principal crop grown throughout theproject area. Approximately 45,000 farm families and 11,500 landlesslaborers' families, a total of about 316,000 people, would benefit directlyfrom increased production and consequent employment. The project wouldcreate a demand for an additional 4.02 million man-days of farm labor peryear equivalent to some 16,800 full-time jobs, and provide rice farmers withincreased access to markets through an improved and denser network of roadsto be built along the canals and drains. In the Mindanao subproject area theproject would provide a campaign against schistosomiasis aimed at reducingthe disease risk for a population of 140,000 people. The project's per hacost of US$1,150, excluding costs due to expected price contingencies butincluding the cost of improving NIA's regional capability is slightly lowerthan in the NISIP:I project. The project would meet the Government'sobjectives of increased food production and more balanced regional distribu-tion of development at a capital cost of about US$3,200 per benefited farmfamily. The cost of the schistomiasis component of the project would amountto about US$230 per family in the endemic area. At full agricultural develop-ment the project would result in rice import savings of US$48 million per yearat the forecast world market prices. After deducting the incremental cost ofimported fertilizer, chemicals and fuel, the net foreign exchange savingswould amount to about US$40 million.

7.02 Benefits. Expected future yield and production with and withoutthe project are discussed in Chapter 5. Chapter 6 presents the farm-gateprices for inputs and outputs, based on the Bank's commodity price forecastsfor rice, sugar and chemical fertilizers. Gross returns, production costs,net returns (without accounting for labor costs) and labor requirements perha are given in Annex 2. Figures 5.1 to 5.3 show the proposed croppingcalendars. Table 7.1 summarizes the foregoing information and gives theexpected benefits at full agricultural development for the three subprojectareas and for the project as a whole.

7.03 Foreign exchange. Due to the presence of import taxes and importquotas, the official exchange rate of US$1.00 = P 7.40 understates the valueof foreign exchange to the country. Therefore, the foreign exchange componentof the project capital cost and O&M cost, and the foreign exchange saved byreducing rice imports was valued at a shadow exchange rate which was derivedby estimating the standard conversion factor (SCF) for the Philippineswhich was about 0.90 for the three years 1972-1974.

7.04 Farm Labor. The present labor supply in the three subprojectareas and the projected supply in 1988 are shown in Table 7.2. These esti-mates assume 240 working days per worker per year and a monthly average of20 days. Labor demand was computed on a monthly basis and then aggregatedto produce subproject and project data. Adequate family labor is availableto meet all requirements on rice farms up to 1.5 ha under high croppingintensities. -Detailed information on wages actually paid within theproject area is limited. The estimated average annual market wage rate isabout P 8.00 per man-day, ranging from a low of P 7.00 to a high of P 12.00,

- 44

Table 7.1: NET VALUE OF PRODUCTION AT FULL PROJECT DEVELOPMENT

Net valueFarm-gate Gross value Production Net value production

Area Yield price of production costs production project area(ha) (ton/ha) (P/ton) -------------- (P/ha) --------------- (P million)

Southern luzon Sub2rolect

Rice: Rainfed W 4,800 1.6 1,590 2,545 580 1,965 9.4Irrigated Crop I W 12,000 2.9 1,590 4,610 755 3,855 46.3

Crop 2 W 7,700 2.9 1,590 4,610 775 3,835 29.5

Irrigated Crop I W 16,800 4.0 1,590 6,360 1,120 5,240 88.0Crop 2 W 11,600 4.0 1,590 6,360 1,170 5,190 60.2

W _(P million)

Total net value of production (before costing labor) 85.2 148.2Less imputed labor cost 6.9 8.5Total net value of production 78.3 139.7Net incremental value of productiorn at full project development 61.4

Western Visavas Subproject

Rice: Rainfed W 5,100 1.7 1,590 2,705 605 2,100 10.7Irrigated Crop I W 15,500 2.9 1,590 4,610 775 3,835 59.4

Crop 2 W 8,800 2.9 1,590 4,610 800 3,810 33.5

Sugarcane irrigated W 6,400 68.0 120 8,160 1,530 6,630 42.4

Rice: Irrigated Crop 1 W 20,600 4.0 1,590 6,360 1,170 5,190 106.9Crop 2 W 11,400 4.0 1,590 6,360 1,170 5,190 59.2

Sugarcane irrigated W 6,400 76.0 180 13,680 2,005 11,675 74.7

14 _(P million)

Total net value of production (before costing labor) 146.0 240.8Less imputed labor cost 11.0 12.8Total net value of production 135.0 228.0Net incremental value of production at full project development 93.0

Mindanao Subproject

Rice: Rainfed 17,300 1.4 1,590 2,225 705 1,520 26.3Irrigated Crop 1 19,300 2.6 1,590 4,135 970 3,165 61.1

Crop 2 W 14,700 2.6 1,590 4,135 970 3,165 46.5

Sugarcane irrigated W 500 68.0 120 8,160 1,535 6,625 3.3

Rice: Irrigated Crop 1 W 36,600 4.0 1,590 6,360 1,265 5,095 186.5Crop 2 W 32,100 4.0 1,590 6,360 1,315 5,045 161.9

Sugarcane irrigated W 500 76.0 180 13,680 2,070 11,610 5.8

1 14(P million)

Total net value of production (before costing labor) 137.2 354.2Less imputed labor cost 12.6 21.9Total net value of production 124.6 332.3Net incremental value of production at full project development 207.7

Total Prolect Area

Rice: Raiofed W 27,200 46.4Irrigated W 78,000 276.3

Sugarcane irrigated W 6,900 45.7

Rice irrigated W 129,100 662.7Sugarcane irrigated W 6,900 80.5

14 1W(P million)

Total net value of production (before costing labor) 368.4 743.2Less imputed labor cost 30.5 43.2Total net value of production 337.9 700.0Net incremental value of production at full project development 362.1

W - Future without project.W - Future with project.

- 45 -

Table 7.2: LABOR SUPPLY /a

Southern Western TotalLuzon Visayas Mindanao project

1978Population 101,500 83,500 130,000 315,000FamiliesFarm 13,000 12,000 20,000 45,000Landless 3,500 4,500 3,500 11,500

Total 16,500 16,500 23,500 56,500

Average size 6.1 5.0 5.5 5.6Average number workers 2.4 2.5 3.4 2.8

Total workers 40,000 41,000 80,000 161,000Million md/yr 9.60 9.84 19.20 38.64Million md/month 0.80 0.82 1.60 3.22

1988Population 143,000 105,000 181,000 430,600FamiliesFarm 18,000 15,500 27,500 61,000Landless 5,000 5,500 5,000 15,500

Total 23,000 21,000 32,500 76,500

Average size 6.1 5.0 5.5 5.6Average number workers 2.4 2.5 3.4 2.8

Total workers 55,000 52,500 110,500 216,500Million md/yr 13.2 12.24 26.57 51.96Million md/month 1.12 1.02 2.21 4.35

/a Derived from the 1970 Census of Population and Housing, the 1971Agricultural Census, the National Economic Development Authority andNIA surveys.

- 46 -

which was adopted as the most representative of the present financialwage rate. The economic cost of labor at different times of the year foreach subproject area was determined by calculating the marginal opportunitycost of farm labor (Annex 2). For the project area as a whole, the futureeconomic cost of farm labor would be P 43.20 million with the project atfull development and P 30.50 million without the project, or an incremen-tal cost of P 12.70 million. This would be equivalent to pricing theincremental employment of 4.02 million man-days per year at a shadow rateof P 3.17 per man-day, ranging from a low of P 2.22 per man-day in theSouthern Luzon subproject, through P 3.21 per man-day in the WesternVisayas to a high of P 3.48 per man-day in the Mindanao subproject.

7.05 Investment Costs. The total shadow priced capital cost, expressedin mid-1978 prices, is US$86.0 million, consisting of US$20.20 millionfor the Southern Luzon subproject, US$24.00 million for the Western Visayassubproject and US$41.8 million for the Mindanao subproject. The annualincremental O&M costs per hectare of wet season irrigated land are US$14/hafor the Southern Luzon systems and US$13/ha for the Western Visayas andMindanao systems. All capital costs include physical contingencies butexclude costs due to price increases. The subproject capital costs includethe cost of O&M equipment which would be used for the irrigation systems inthe subprojects, but does not include costs of O&M equipment, which wouldbe financed under the regional strengthening component of the project.The Mindanao subproject investment costs do not include the incrementalcapital costs attributable to the schistosomiasis control program(US$5.7 million).

7.06 Development Period. According to the project implementationschedule, all works would be completed in time for the 1983 dry seasoncrop. Though some benefits, especially on the smaller systems, wouldbe realized long before the completion of all construction activities, forthe purpose of the economic analysis, it is conservatively assumed thatfarmers would begin to grow their crops under improved conditions from thesixth year onward and would achieve the projected full development yieldlevels over five years in equal installments. The project would reach fulldevelopment in 1988.

7.07 Economic rate of return. Using the foregoing assumptions anddiscounting costs and benefits over a 40-year evaluation period, the economicrate of return of the project is 23% (Table 7.3). Rates of return for theindividual subproject areas are 19% for Southern Luzon, 22% for WesternVisayas and 26% for Mindanao, reflecting the large amount of new irrigationdevelopment and high increase in cropping intensity in the latter area.Sensitivity of the rate of return was tested to cost overruns, reduction anddelay in benefits, the world market price of rice, security risks in Mindanaoand inclusion of the full schistosomiasis control program cost (Table 7.4).The rate of return was most sensitive to decreases in projected rice yields.

7.08 Risks. No problems of implementation are anticipated, as NIA hashad ample experience of projects of similar scope. However, a six-yearimplementation period has been adopted to allow for the wide geographicspread of the project and the fact that the staff and resources of seven NIAregional offices would need to be mobilized and deployed. The largest

Table 7.3: ECONOMIC COSTS AND BENEFITS(US$ million)

Southern Luzon Western Visayas Mindanao Total projectIncremental Incremental Net Incremental Incremental Net Incremental Incremental Net Incremental Incremental Net

Year costs benefits benefits costs benefits benefits costs benefits benefits costs benefits benefits

1 1.6 - (1.60) 1.80 - (1.80) 3.40 - (3.40) 6.80 - (6.80)

2 3.8 - (3.80) 4.40 - (4.40) 7.40 - (7.40) 15.60 - (15.60)

3 4.70 - (4.70) 5.60 - (5.60) 9.00 - (9.00) 19.30 - (19.30)

4 4.70 - (4.70) 5.30 - (5.30) 8.70 - (8.70) 18.70 - (18.70)

5 4.60 - (4.60) 5.30 - (5.30) 8.60 - (8.60) 18.50 - (18.50)

6 1.12 1.50 0.38 2.03 2.30 0.27 5.33 5.00 (0.33) 8.48 8.80 0.32

7 0.32 3.00 2.68 0.43 4.50 4.07 0.63 10.00 9.37 1.38 17.50 16.12

8 | 4.50 4.18 6.80 6.37 | 15.00 14.37 | 26.30 24.92

9 I 6.00 5.68 9.10 8.67 I 21.00 20.37 I 36.10 34.72

10-40 V 7.46 7.14 V 11.31 10.88 V 25.27 24.64 V 44.04 42.66

Economic rate of return 19% 22% 26% 23%

Note: Incremental costs include capital and O&M from the sixth year onward.

- 48 -

element of risk concerns the availability at the right levels and at theright time of the entire package of agricultural supporting services. Theproject is expected to attain rice yields of 4.0 ton/ha of paddy at fulldevelopment in 1988. These yields levels would not be attained in the absenceof adequate supporting services; however, the project would still have aneconomic rate of return of 13% with a paddy yield as low as 3.0 ton/ha.

Table 7.4: SENSITIVITY ANALYSIS

Rates of return (%)Southern Western

Alternative Luzon Visayas Mindanao Project

(a) Base line. 19 22 26 23

(b) Two-year delay in reaching full projectbenefits and 20% increase in constructioncost. 14 16 18 16

(c) 20% increase in world market price of rice. 22 25 29 26

(d) 25% decrease in projected rice yields dueto inadequate supporting services. 6 13 15 12

(e) Inclusion of schistosomiasis control cost. - - 24 22

(f) Reduced benefits for 2,000 ha of securityrisk area in Mindanao. - - 24 22

8. RECOMMENDATIONS

8.01 During negotiations, agreement with the Government was reached onthe following principal points:

(a) the necessary water rights for both existing and expanded areaswould be granted to NIA and no other rights which could adverselyaffect the project water supply would be granted except by mutualagreement with the Bank (para. 3.13);

(b) NIA would prepare terms of reference for feasibility studies ofthree irrigation projects to be financed under the present loanand would carry out the studies with the assistance of consultants,whenever necessary, under terms and conditions acceptable to theBank (para. 3.25);

- 49 -

(c) NIA would ensure that the aggregate amount of civil works to bedone by force account would be limited to 65%o of the total cost ofthe work (para. 3.30);

(d) NIA and SCRS would maintain separate accounts for the project andafter audit by the Government's Commission on Audit, the projectaccounts, together with the auditor's comments and opinion on thecertification of expenditure for force account work, would be sentto the Bank within six months of the close of each financialyear (para. 3.33);

(e) NIA and DOH would enter into a formal agreement acceptable to theBank for implementation of the schistosomiasis control program byJune 30, 1978 (para. 4.05);

(f) the Government would cause the Department of Agriculture in coopera-tion with NIA to prepare a plan of action by June 30, 1979,for provision of effective agricultural supporting services on theBank-assisted irrigation projects, and, after reviewing such planof action with the Bank, would proceed with its implementation byJanuary 1, 1980 (para. 4.12);

(g) NIA would make annual budgetary provisions to supply the fundsnecessary for O&M of the project works; would take all necessaryaction to ensure full and prompt collection of irrigation fees;and would gradually increase irrigation fees over a period offive years from completion of construction to a level equivalentto about 3.5 cavans of paddy/ha in the wet season and 4.4 cavansin the dry season (para. 6.11);

(h) the Government and the Bank would consult annually on the adequacyof water charges and the collection thereof (para. 6.11); and

(i) the Government would provide NIA annually with sufficient fundsto effectively maintain the anti-schistosomiasis drainage networkbuilt under the project (para. 6.12).

8.02 A condition of effectiveness of the loan would be the establish-ment by NIA of a special fund to service the project; the Government hasagreed to cause NIA to establish the fund which would be replenished by theGovernment at monthly intervals to a level equivalent to the estimatedrequirements for the next two months (para. 3.28).

8.03 The proposed project would be suitable for a Bank loan ofUS$65.0 million for a period of 20 years including a grace period of 5years. The borrower would be the Republic of the Philippines.

ANNEX 1Table 1

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Principal Project Features

SubprojectSouthern WesternLuzon Visayas Mindanao Total

No. of systems 12 4 10 26Net irrigable area (ha) 16,800 27,000 37,100 80,900Diversion dam (no,)

Existing concrete weir 25 2 15 42Temporary brush dam 2 - 1 3New concrete weir 4 3 1 8

Main canal (km)Existing 135 77 139 351New 5 12 29 46

Laterals (km)Existing 286 275 480 922New 64 14 110 188

Project drains (km)Existing 212 46 315 573New 255 579 626/a 1,460/a

Farm ditches (km)Existing 244 570 774 1,588New 665 686 1,205 2,556

Farm drains (km) 575 664 1,441/a 2,680/aService roadsO&M roads

Along main canals (3.5-5 m) 101 75 129 305Along laterals (3.5 m) 146 207 322 675Along main & secondarydrains (3.5-5 m) 72 96 177 345

Access roads (3.5 m) 90 123 67 280Farm roads (2.0 m) 445 286 719/a 1,450/a

/a Includes drains for Schistosomiasis Control Program.

ANNEX 1Table 2

-PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

List of Structures

SubprojectSouthern WesternLuzon Visayas Mindanao Total

Diversion structuresNew diversion weir (no.) 4 3 1 8Replace existing gates (no.) 21 18 10 49Mechanized gates operation (no.) 5 6 6 17New intake structure (no.) 2 2 1 5Repair existing structures (no.) 3 4 3 10

Main canalsModification of existing structures:

Install gates on checks siphons& check-drops (no.) 46 34 41 121

Repairs of existing structures (no.) 131 28 56 215Extension of existing drainage

structures (m) 300 150 250 700

New additional structures:Check or check-drops (no.) 22 7 32 61Bridges across canals (no.) 15 11 38 64Operation road bridges (no.) 6 4 5 15Culverts or thresher crossings (no.) 2 10 8 20Drainage structures (no.) 4 6 7 17

Secondary canalsModification of existing structures.

Install gates on existing checks (no.) 220 110 220 550Repair of existing structures (no.) 270 20 220 510Extension of existing drainagestructures (no.) 500 300 450 1 250

New additional structures:Farshall Flumes (no.) 6 12 16 34New checks with gates (no.) 75 25 175 275New checks without gates (no.) 55 15 60 130C.H.O. turnouts (no.)operation road bridges (no.) 3 1 2 6

I verts or thresher crossings (no,) 110 40 50 200

Main and secondary drainsDrops (no.) 4 2 2 8Road crossings (no.) 3 2 2 7Drainage inlets (no.) 20 30 40 90

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

O&6 Equipment - StrenRtheninR Regional O&M Capabilitv

Region 4 Region 5 Region 6 Region 8 Region 10 Region 11

Southern Tagalco Bicol Western Visavas Rindanao Mindanao Mindanao3 systems Regional 3 systems Regional 7 systems Regional 1 system Regional 1 system Regional 4 systems Regional Total

(2,200 ha) pool (4,700 ha) pool (10,000 ha) pool (1,800 ha) pool (3,100 ha) pool (14,700 ha) pool (36,500 ha)

Truck, dump, 6-8 cu yd - 1 1 1 4 2 - I - 3 2 15

Truck, flatbed, 6 ton - 1 - 1 2 2 - I - _ 2 2 11

Truck, pickup, 3/4 ton 4x4

1 2 2 1 3 2 1 1 1 1 2 1 18

Stationwagon, 4x4 - 1 - 1 1 1 - 1 - 1 2 1 9

Jeep, utility vehicle, 4x4

2 1 2 1 6 2 1 1 1 - 4 2 23

Motorcycle, 100 cc 7 3 9 3 21 4 3 2 5 3 21 4 85

1iixer, concrete, 1/4 cu yd 2 2 2 1 5 2 1 1 2 1 7 2 28

Water pump, 2-4" size 3 2 3 2 8 2 2 2 2 1 7 2 36

Weed cutter 11 _ 24 - 46 - 10 - 16 - 63 - 170

Radio transceiver(single Sb) 3 4 3 6 8 7 1 2 1 3 5 7 50

Meteorological station 2 1 2 1 5 1 1 1 1 - 3 2 20

Leveling instrument withstaff & steel tape 2 2 3 2 5 2 1 2 1 1 4 2 27

Transit with staff & tape 2 1 2 1 5 1 1 1 1 1 2 2 20

Current meter 2 1 2 1 5 1 1 1 1 1 2 2 20

a x

ANNEX 1Table 4

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Irrigation Facilities Cost

SubprojectSouthern Western

Luzon Visayas Mindanao Mean------------------ (US$/ha) /a ---------------

I. Rehabilitation Area (ha) 12,000 21,900 19,800 53,700(a) Diversion works

Diversion dam & intake works 77 24 17 33(b) Canal system

Main canal 117 62 92 85Secondary canals 133 114 158 134

Subtotal 250 176 250 219

(c) Drainage system 94 96 124 107(d) Road system 183 131 168 156(e) On-farm distribution

& drainage 226 178 192 194

Subtotal 830 605 751 709

II. Extension Area (ha) 4,800 5,100 17,300 27,200(a) Diversion works

Diversion dam & intake works 117 8 40 47(b) Canal system

Main canal 63 155 66 82Secondary canal 190 184 184 185

Subtotal 253 339 250 267

(c) Drainage system 116 82 126 113(d) Road system 221 141 148 159(e) On-farm distribution

& drainage /b 338 241 343 323

Subtotal 1,045 811 907 909

Total 891 644 821 776

/a Not including contingencies (15%) and engineering, supervision and administration (10%).

/b Includes Water Management Technician stations gate keeper quarters and topographicsurveys and mapping.

ANNEX 1Table 5

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Cost Estimate - Annual O&M Cost

Southern Luzon Western Visayas Mindanaosubproject subproject subprolect Total project

(P/ha) (US$/ha) (P/ha) (US$/ha) (P/ha) (US$/ha) (P/ha) (US$/ha)

Salaries and wages 138 18.70 128 17.30 109 14.70 128 17.30

Equipment operation 44 6.00 39 5.30 39 5.30 41 5.60

Materials and supplies 8 1.00 8 1.00 8 1.00 8 1.00

Administration andgeneral expenses 47 6.30 40 5.40 44 6.00 45 6.10

Total 237 32.00 215 29.00 200 27.00 222 30.00

ARNEX ITable 6Page 1

- I 0 0 1 0 0 0

Icfl< OOOO >R x R> R lO000 1000 00.00 .

eac

a Ca 111111111111111111111111111111 1I 111111/

iC 0l..-..l0l1

I a ,eRS S sR C _So S0. c=10

ftz a .

G~~ ~ ~~~~~~~ C. 1. 0 e1

_~~ ~~~ oC1 Cl 0 o

.00 C CC ~ 0 0

HC Ce -01.@@g 'C dD C C 0 00 C X 1

l ~ ~~~ 0.01 C - 4.10 <°X. t;°3tev,; OC a 0 OC Xe = a -

I a Q U e Z U e e U o s X ,. Q Q < i _ 8 e W Z 4; u > H 1 i < 2 O W 5~~~~~~~.0 0 C 01 Co 0 a 14 S~~00100 >>u5-2 i- 0 COS CO-ICC C! CCC o,c>¢x

0 CO O . 0 0 0 0 O C 0 .

Qatit, Total cos tIrrigation ctintonomianin Orrigutton Oghitshonn iTsis

Item service area Srrengthenlng Input- control tro-aca iervice area Otrengihening Input- control eroeramForce operation & regionol OM output Future Force jelith Total Unit Force Operation 6 rginool OM output Future Forte Health Total

account nainitoa... capability qonitoring todio account component qantiy cot a t tpbility _nit.rimg studies . ct..ont (Uop -p-__t toott

-…--------------- ------- (00$'000) …

3. Office and Tn.ietna honinmntDenk program nalcolotorn - - - 6 5 _ _ _ 10 - _ _ 60 50 _ _ 110Densck ealatorn - - - 20 1t - _ _ 1 _ _ _ 20 10 - - 30Pocketkct alator - - -120 20 2 - .1 - _ _ 2 2 - - 4Typewriterr - - - 10 10 - _ 0. 6 - - - 6 6 - - 12Electric typewitera - - 4 4 - - - 2 - _ _ 8 S - - 16Ptiaengrnphsanhi.e. - - - 6 2 - - - 3 - - - I8 6 _ _ 24Tape re-r-deswithcnnnetn - - - it . _ - _ 0 25 - - - 3 - - - 3Hlnrcellaneons office oquippent - _ - 1.0. .LS - - - 1.0 - _ - 23 38 _ _ 61

Sabtotl 140 120 260

4. Surties 0or Health Co..enn.nt of Schirtono. anini CnotrolProjector - - - - - - 5 - 0.2 _ - _ _ _ - 1 1Mitron-pe, binocular with arcesnaries - - - - - - 15 - 2.0 _ _ _ _ _ - 30 30Sterearcpe, binocular aith a icensartea - - - - - - 15 _ 2.0 - - - _ - _ 30 30CMetrifuge - - - - - - 6 - 0.5 - - - - - - 3 3

ettrlc generatar 4 k0 - - - - - - 4 I I _ _ _ _ - - 4 4Hand .spas. - - - I - - 10 _ 0.1 - - _ _ _ _ 1Range firder (1,000 * _ -_ _ - 3 5 0.2 _ - _ - - _ I IType.ritit - - - - - - 5 - 0.6 _ _ - _ _ _ 3 3Offie furnit-re - - - - - - LS. - L. - - - - - - 40 40Visual aid edocationml vans - - - - -- 4 - 16 - - _ _ _ 65 65tn..cellaaeoo. nopplite and tateriel - - L - - 1.S - 1S. - _ - - _ 358 38

Subtotal 216 216

5. VehlclesStotion oagons, 4 n 4 9 11 9 2 4 - - 37 13 120 140 120 26 50 - - 456Jeep, utility vehicle, 4 a 4 30 31 23 S 12 2 12 179 10 300 310 230 80 120 20 120 1,180Track, pick up, 3/4-too, 4 e4 14 31 IS - 9 1 4 77 11 150 340 200 - 100 11 44 845Mrtorcyclas, 100 cc - 227 85 49 18 - IS 397 1 - 250 90 54 20 - 20 434Baa, 40-neater -- - I - - 1 21 - - - _ 20 - - 20airplane, 10-eter (cedar equippad) - 0.5 0.5 - - - - 1 400 - 200 200 - - - - 400

S.btotal 570 1.240 840 160 310 31 104 3,335

shbttol (Ite- I n. 5) 10,000 3.270 2,170 300 500 500 400 17.140

Spare partn (10%) e.c.pt Items 2, 3 & 4 1,000 330 200 - _ - 1 5SO

Total 11,000 3.600 2 370 300 500 550 400 18.720

ANNEX 1Table 7

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Expected Price Increase Estimate

Calendar year1978 1979 1980 1981 1982 1983 Total

-…-------------------- (US$ '000) …_______

1. Civil WorksIrrigation systems 800 9,600 19,800 19,800 19,000 17,400 86,400Strengthening of O&M capability 130 500 200 - - - 830Schistosomiasis control program 70 300 400 530 1,200 1,000 3,500

Subtotal 1,000 10,400 20,400 20,330 20,200 18,400 90,730

Annual inflation rate (%) 9.0 9.0 8.0 8.0 8.0 8.0

Expected price increase /a 40 1,310 4,530 6,520 8,650 9,990 31,040

2. Equipment & ServicesIrrigation systems 100 1,800 900 600 150 50 3,600Strengthening of O&M capability 100 1,200 670 200 200 200 2,570Input-ouput monitoring 50 400 500 300 200 150 1,600Schistosomiasis control program 100 400 400 800 300 200 2,200Future studies and training 150 1,200 1,950 1,000 500 500 5,300

Subtotal 500 5,000 4,420 2,900 1,350 1,100 15,270

Annual inflation rate (%) 7.5 7.5 7.0 7.0 7.0 7.0

Expected price increases /a 10 480 740 760 480 490 2,960

Total without price increases 1,500 15,400 24,820 23,230 21,550 19,500 106,000

Expected price increases 50 1,790 5,270 7,280 9,130 10,480 34,000

Total with price increases 1,550 17,190 30,090 30,510 30,680 29,980 140,000

/a Calculated by compounding the estimated rate of price increases in prioryears and one half the rate of increase in the year concerned.

ANNEX 1Table 8

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Estimated Schedule of Expenditures

TotalItem cost FY79 /a FY80 FY81 FY82 FY83 FY84

… --------_________----- (US$ 000)…

Irrigation systems service area 86,400 5,600 14,300 19,900 19,500 18,300 8,800

strengthening of regional O&Mcapability 830 330 400 100 - - -

Input-out monitoring 1,600 250 450 400 250 150 100

Future studies and training 5,300 750 1,450 1,400 750 600 350

Schistosomiasis control program 5,700 570 1,000 1,330 1,250 1,150 400

O&M equipment /b 6,170 1,700 2,270 1,200 550 350 100

Subtotal 106.000 9,200 19,870 24,330 22,300 20,550 9,750

Expected price increases 34,000 940 3,370 6,470 8,170 9,750 5,300

Total project cost 140,000 10,140 23,240 30,800 30,470 30,300 15,050

/a IBRD fiscal years.

/b Includes equipment for irrigation systems and O&M regional capability.

ANNEX 1Table 9

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Estimated Schedule of Disbursements

IBRD fiscal year Accumulated disbursementsand semester ---(US$'000 equivalent)--

FY792nd 300

FY80ist 4,0002nd 10,000

FY811st 16,0002nd 23,000

FY82lst 31,0002nd 38,000

FY831st 45,0002nd 51,000

FY84ist 57,0002nd 62,000

FY85 65,000

ANNEX 1Table 10

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Proposed Allocation of Proceeds of Loan

Costs Proposed

Category Total Foreign loan(US$ million) -------

I. Civil WorksIrrigation systems /a 57.30 22.00 35.0 *

Strengthening of regional O&M capability 0.80 0.20

Schistosomiasis control program /b 2.90 1.50

Expected price increases 31.00 13.60

Subtotal 92.00 37.30

* Of which (a) US$3.0 million for mobilization and contractor's equipment and

(b) US$32 million for other civil works. Disbursement for (a) will be

100% of foreign expenditure and (b) 35% of total expenditure.

II. Equipment and SuppliesIrrigation systems /c 14.60 13.40 21.0

Strengthening of regional O&M capability /d 2.60 2.50

Input-output monitoring 0.70 0.30

Future studies and training 0.50 0.40

Schistosomiasis control program /e 1.40 1.20

Expected price increases 3.00 2.40

Subtotal 22.80 20.20

Disbursement will be 100% of foreign expenditure for directly imported equip-

ment, 100% of expenditure (ex-factory) for locally manufactured equipmentand 65% of total expenditure for imported equipment procured locally.

III. Technical Assistance /fInput-output monitoring 0.80 0.10 5.0Future studies and training 4.30 2.40

Subtotal 5.10 2.50

Disbursement will be 100% of total expenditure.

IV. Unallocated /gPhysical contingencies 12.1 5.0 4.0

(Administrative and engineering) (8.0)

Total 140.0 65.0

/a Force account equipment (US$11.0 million), excluded and transferred to Category II;

Annex 1, Table 6.

/b Excludes cost of force account equipment (US$0.55 million), transferred toCategory II; Annex 1, Table 6.

/c Includes equipment for force account (US$11.0 million) and O&M (US$3.6 million);

Annex 1, Table 6.

/d O&M equipment; Annex 1, Table 6.

/e Includes equipment and supplies; Force account (US$0.55 million)

Diagnosis and treatment (US$0.40 million)Health and education (US$0.08 million)Supplies, etc. (US$0.40 million).

/f Other than civil works in Category I and equipment in Category II.

/g See Table 3.5.

00 010.-"0100 0I0.-.-0.00 -'.0401 00--'.--1 --.t-0.---l- -- - - -- -- - --

0 0 .... I ~ 0 0 . . .11 0 0 .... I 0 0 0 .-. '' 0 . 1 0 0 ...Al 0 0. . 0 . . 10

e 11111111 11111111 IlillIll '14I.l0.I$l 00100011 0011001 I 1ll ,'11111I 1

X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ S

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c. OOO 100 000144 0- O | cg S o a0 0 0 00 1 0 000 00 00 0 00000000|= aa' ~N| v

4.t~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1

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I 000I 0 00 00I I II IIIII@ I I I I'II II II II 0 0 01 0I0010 I I111 00 00 0 00000 I1111 0

ta1: ~ ~ ~ ~ ~ ~ ~ 0010 00 0 0 0 00 0 1 00 0 0 0= . 4 ~*$ : a va a, ^

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Crop Labor Requirements /a(Man-days/ha)

Present Future without project Future with proiectRice Rice Rice

Irrigated Irrigated IrrigatedRainfed Crop 1 Crop 2 Sugarcane Rainfed Crop 1 Crop 2 Sugarcane Crop 1 Crop 2 Sugarcane

Southern LuzonLand preparation 20 20 20 - 20 19 20 - 22 21 -Nursery and transplanting 24 26 25 - 25 25 24 - 24 24 _Crop management 22 25 25 - 24 25 24 _ 28 29 _Harvesting 24 29 30 - 26 31 32 - 36 36 _

Total 90 100 100 - 95 100 100 - 110 110 -

Western VisayasLand preparation 21 19 20 11 24 20 20 11 22 21 10Nursery and transplanting 23 25 25 23 26 25 24 23 25 25 23Crop management 24 23 24 32 24 24 24 32 27 28 32Harvesting 27 33 31 84 31 31 32 84 36 36 85

Total 95 100 100 150 105 100 100 150 110 110 150

MindanaoLand preparation 18 20 21 - 20 19 19 - 20 21 _Nursery and transplanting 24 25 25 - 27 23 23 - 25 25 -Crop management 21 23 23 - 23 23 23 - 30 30 -Harvesting 27 32 31 - 25 30 30 - 35 34 -

Total 90 100 100 - 95 95 95 - 110 110 -

/a Includes labor handling farm machinery, the cost of which is excluded from Annex 2, Table 3.

fol

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Crop Production Costs (Excluding Labor) /a /b(Pesos/ha)

Present ____ Future without proltect _ - Future withprject_ _Rice Rice RiceIrrigated _ riated IrriRated

Rainfed Crop I Crop 2 Sugarcane Rainfed Crop I Crop 2 Sugarcane Crop I Crop 2 Sugarcane

Southern LuzonCultivation 130 (130) 145 (145) 145 (145) 145 (145) 145 (145) 145 (145) 190 (190) 190 (190)Seeds 110 (110) 105 (105) 105 (105) 110 (110) 110 (110) 105 (105) 75 (75) 75 (75)Fertilizer 130 (150) 170 (195) 210 (235) 200 (185) 275 (255) 300 (280) 400 (370) 450 (420)Chemicals 50 (45) 70 (65) 70 (65) 75 (70) 100 (90) 100 (90) 220 (200) 220 (200)Harvesting 5 (5) 30 (30) 35 (35) 25 (25) 80 (80) 80 (80) 175 (175) 175 (175)Other 20 (20) 30 (30) 30 (35) 25 (25) 45 (45) 45 (45) 60 (60) 60 (60)Land tax (25) (45) (45) (30) (50) (50) (70) (70)Interest (40) (45) (50) (45) (55) (55) (75) (75)

Total 445 (525) 550 (660) 595 (715) 580 (635) 755 (830) 775 (850) 1,120 (1,215) 1,170 (1,265)

Western VisavasCultivation 160 (160) 160 (160) 160 (160) 200 (200) 170 (170) 175 (175) 175 (175) 205 (205) 205 (205) 205 (205) 220 (220)Seeds 100 (100) 100 (100) 100 (100) 110 (110) 110 (110) 110 (110) 75 (75) 75 (75)Fertilizer 170 (200) 210 (225) 260 (300) 700 (950) 190 (175) 290 (265) 315 (290) 980 (900) 435 (400) 435 (400) 1,420 (1,300)Chemicals 65 (60) 100 (90) 100 (90) 160 (145) 80 (70) 110 (100) 110 (100) 190 (171) 220 (200) 220 (200) 190 (170)Harvesting 30 (30) 45 (45) 45 (45) 175 (175) 175 (175)Other 20 (20) 30 (30) 30 (30) 110 (110) 25 (25) 45 (45) 45 (45) 155 (155) 60 (60) 60 (60) 175 (175)Land tax (30) (45) (45) (200) (30) (50) (50) (280) (70) (70) (315)Interest (45) (50) (50) (100) (50) (55) (55) (110) (75) (80) (130)

Total 515 (615) 600 (700) 650 (775) 1,170 (1,705) 605 (660) 775 (845) 800 (870) 1,530 (1,821) 1X170 (1,260) 1,170 (1,265) 2,005 (2,310)

MindanaoCultivation 145 (145) 170 (170) 170 (170) 155 (155) 175 (175) 175 (175) 205 (205) 205 (205)Seeds 120 (120) 120 (120) 120 (120) 120 (120) 120 (120) 120 (120) 75 (75) 75 (75)Fertilizer 110 (130) 170 (195) 175 (190) 210 (195) 260 (240) 260 (240) 410 (380) 460 (430)Chemicals 80 (70) 130 (120) 130 (120) 110 (100) 175 (160) 175 (160) 220 (200) 220 (200)Harvesting 55 (55) 120 (120) 120 (120) 90 (90) 200 (200) 200 (200) 295 (295) 295 (295)Other 15 (15) 30 (30) 30 (30) 20 (20) 40 (40) 40 (40) 60 (60) 60 (60)Land tax (25) (40) (40) (25) (45) (45) (70) (70)Interest (40) (55) (55) (50) (65) (65) (70) (70)

Total 525 (600) 740 (850) 745 (845) 705 (755) 970 (1,045) 970 (1,045) 1,265 (1,355) 1,315 (1,405)

/a Economic and financial costs are based on rice and fertilizer prices derived in Annex 4. Figures in parenthesis are financial costs used 3 sin farm budgets. z/b Assumptions on physical inputs and unit costs are given in Annex 2, Table 1.

/c For farms with assessed value < P 3,000 per hectare, the land tax is 1% of the assessed value; otherwise it is 2%.Id Interest charged at 6% (1% per month for 6 months) of average indebtedness. In the future, it is assumed that 80% of the farmers would borrow 90% oftheir cash needs.

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Crop Budgets /a

PresentRice Future with proJect

Unit Irrigated Sugar- Irrigated rice Sugar-Rainfed Crop 1 Crop 2 cane Crop 1 Crop 2 cane

Southern LuzonYield ton/ha 1.5 2.6 2.7 4.0 4.0Farm-gate price P/ton 1,060 1,060 1,060 1,390 1,390Gross value of production P/ha 1,590 3,760 2,860 5,560 5,560Production costs /b P/ha 525 660 715 1,215 1,265Net value of productionwithout costing labor P/ha 1,065 2,100 2,145 4,345 4,295

Labor requirements man-day/ha 90 100 100 110 110

Western VisayasYield ton/ha 1.6 2.6 2.5 65.0 4.0 4.0 76.0Farm-gate price P/ton 1,060 1,060 1,060 90.0 1,390 1,390 160Gross value of production P/ha 1,700 2,760 2,650 5,850 5,560 5,560 12,160Production costs P/ha 615 700 775 1,705 1,260 1,265 2,310Net value of production P/ha 1,185 2,060 1,875 4,145 4,300 4,295 9,850Labor requirements man-day/ha 95 100 100 150 110 110 150

MindanaoYield ton/ha 1.3 2.4 2.4 4.0 4.0Farm-gate price P/ton 1,060 1,080 1,060 1,390 1,390Gross value of production P/ha 1,380 2,545 2,545 5,560 5,560Production costs P/ha 600 850 845 1,355 1,405Net value of productionwithout costing labor P/ha 780 1,695 1,700 4,205 4,155

Labor requirements man-day/ha 90 100 100 110 110

o t/a Present financial prices and costs are actual values; 1985 prices were derived by using the official m X

exchange rate of US$1.00 = P 7.40. Both present and 1985 prices are expressed in constant mid-1978 prices. 4. N

Lb Based on Annex 3, Table 3.

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Farm Budgets

Southern Luzon Western Visavas MindanaoPresent Future W Present Future W Present Future W

Rainfed Irrigated irrigated Rainfed Irrigated Irrigated Irrigated Irrigated Rainfed Irrigated irrigatedFarm type and size Unit rice rice rice rice rice sugarcane rice sugarcane rice rice rice

(1 ha) (1 ha) (1 ha) (1.5 ha) (1.5 ha) (10 ha) (1.5 ha) (10 ha) (2.0 ha) (2.0 ha) (2.0 ha)

Paddy cropped area /a ha 1.0 1.45 1.7 1.5 2.33 10.0 2.33 10.0 2.0 3.5 3.8Cropping intensity % 100 145 170 100 155 100 155 100 100 175 190Total production Lb ton 1.5 3.8 6.8 2.4 6.1 650 9.3 760 2.6 8.4 15.2Gross value of production /c P 1,590 4,050 9,450 2,550 6,470 58,500 12,950 121,600 2,760 8,910 21,130Production costs p 525 980 2,100 920 1,690 17,050 2,870 23,100 1,200 2,970 5,240Costs of hired labor /d P - - - - 12,000 - 12,000 - 280 670

Net value of production beforewater charges P 1,065 3,170 7,350 1,630 4,780 29,450 10,080 86,500 1,560 5.660 15.220

Water charges /e P 0 185 480 0 300 2,700 650 5,750 0 460 1,085Net value of production /f P 1,065 2,985 6,870 1,630 4,480 26,750 9,430 80,750 1,560 5,200 14,135

(a) Amortizing ownerAnnual payment for land _ P 415 1,045 1,045 660 1,660 n.a. 1,660 n.a. 720 2,325 2,325Net crop income P 650 1,840 5,825 970 2,820 n.a. 7,700 n.a. 840 2,875 11,810

(b) LeaseholderAnnual payment for land /h P 375 965 2,350 600 1,580 n.a. 3,150 n.a. 590 2,060 1,145Net crop income P 690 2,020 4,520 1,030 2,900 n.a. 6,280 n.a. 970 3,140 S 990

/a Planted and average of one ratoon crop in case of sugarcane.

Lb Cane production for sugarcane farms.

Ic Based on Annex 2, Table 4.

/d Based on a maximum of 40 man-days/month and a total of 480 man-days/year of family labor. Hired labor priced at P 8.0/man-day.

/e Based on present charges of P 110/ha (2 cavans/ha) in the wet season and P 160/ha (3.0 cavans/ha) in the dry season and on future charges of P 255/ha(3.5 cavans/ha) in the wet season and P 320/ha (4.4 cavans/ha) in the dry season.

/t Owner-operator.

La Based on amortizing owner with annual payments over 15 years at 6% on unpaid balance; based on price of land of 2.5 timespresent gross value of production.

Lb Based on 25% of gross value of production minus seed, harvesting and threshing costs.

v z

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Economic Cost of Farm Labor /a

Subproject Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Total

Southern Labor requirement (million man-days) /b W 0.22 0.24 0.11 0.29 0.27 0.30 0.30 0.35 0.40 0.32 0.22 0.22 3.24Luzon W 0.23 0.11 0.11 0.12 0.29 0.25 0.29 0.27 0.24 0.25 0.28 0.10 2.54

Marginal opportunity cost (P/man-day) W 2.59 2.65 2.30 2.51 2.73 2.81 2.81 2.95 3.08 2.86 2.59 2.54W 2.61 2.30 2.30 2.32 2.78 2.68 2.78 2.73 2.65 2.68 2.76 2.27

Average economic cost of farm labor (P/man-day) W 3.30 2.84 2.39 2.67 2.95 2.05 2.05 3.23 2.40 2.12 2.77 2.77 2.54

W 2.81 2.39 2.39 2.42 3.02 2.88 2.02 2.95 2.84 2.88 2.98 2.35 2.66Economic cost of farm labor (P/million) W 0.73 0.68 0.26 0.77 0.80 0.62 0.62 1.13 0.96 0.68 0.61 0.61 8.47

W 0.65 0.26 0.26 0.29 0.88 0.72 0.59 0.80 0.68 0.72 0.83 0.23 6.91Incremental economic cost of farm labor (P million) W-W 0.08 0.42 0.00 0.48 -0.08 -0.10 0.03 0.33 0.28 -0.04 -0.22 0.38 1.56

Western Labor requirement (million man-days) /b W 0.34 0.36 0.36 0.17 0.35 0.35 0.38 0.40 0.37 0.54 0.55 0.32 4.49Visayas W 0.32 0.29 0.29 0.27 0.28 0.34 0.37 0.38 0.30 0.35 0.36 0.39 3.94

Marginal opportunity cost (P/man-day) W 3.12 3.15 3.15 2.81 3.13 3.13 3.19 3.22 3.17 3.48 3.50 3.08W 3.08 3.02 3.02 2.99 3.01 3.12 3.17 3.19 3.04 3.13 3.15 3.12

Average economic cost of farm labor (P/man-day) W 2.81 2.82 2.82 2.65 2.82 2.82 2.84 2.86 2.83 2.99 3.00 2.79 2.84

W 2.79 2.76 2.76 2.74 2.75 2.81 2.83 2.84 2.77 2.82 2.82 2.85 2.80Economic cost of farm labor (P/million) W 0.96 1.02 1.02 0.45 0.99 0.99 1.08 1.14 1.05 1.61 1.65 0.89 12.85

W_ 0.89 0.80 0.80 0.74 0.77 0.96 1.05 1.08 0.83 0.99 1.02 1.11 11.04Incremental economic cost of farm labor (P million) W-W 0.07 0.22 0.22 -0.29 0.22 0.03 0.03 0.06 0.22 0.62 0.63 -0.22 1.81

Mindanao Labor requirement (million man-days) /b W 0.65 0.66 0.29 0.61 0.63 0.65 0.53 0.89 0.91 0.62 0.58 0.61 7.63

w 0.29 0.28 0.05 0.07 0.36 0.58 0.60 0.53 0.45 0.58 0.55 0.52 4.86Marginal opportunity cost (P/man-day) W 3.56 3.59 2.70 3.47 3.51 3.56 3.28 4.14 4.19 3.49 3.40 3.47

W 2.70 2.67 2.12 2.17 2.86 3.40 3.45 3.28 3.11 3.40 3.33 3.25Average economic cost of farm labor (P/man-day) W 2.78 2.79 2.35 2.73 2.76 2.78 2.65 3.69 3.09 2.74 2.70 2.73 2.82

W 2.35 2.34 2.06 2.08 2.43 2.70 2.72 *2.65 2.55 2.70 2.66 2.62 Z.49Economic cost of farm labor (P/million) W 1.81 1.84 0.68 1.67 1.74 1.81 1.40 3.28 2.81 1.70 1.57 1.67 21.98

w_ 0.68 0.66 0.10 0.15 0.87 1.57 1.63 1.40 1.15 1.57 1.46 1.36 12.60Incremental economic cost of farm labor (P million) W-W 1.13 1.18 0.58 1.52 0.87 0.24 -0.23 1.88 1.66 0.13 0.11 0.31 9.38

/a W = Future with project, W = Future without project.

/b Figures rounded to two decimal places. X

ANNEX 3Table I

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

Schedule of Early Events

Activity Target date

Survey & Mapping1. Complete topographic maps 1:4,000 scale

25 cm contour interval for three subprojects(a) Part I (about 20,000 ha) Aug. 1978(b) Part II (about 30,000 ha) Feb. 1979(c) Part III & IV (about 50,000 ha) Dec. 1979

2. Strip maps for schistosomiasis controlprogram drainage and snail colonies survey Feb. 1979

Design1. Complete detailed engineering design and

tender documents(a) For main canals, service roads and

O&M buildings for three subprojects Aug. - Nov. 1978(b) Drainage for schistosomiasis control

program in four systems of Mindanao Jan. - Apr. 1979

Contract Administration1. Equipment procurement

(a) Contract award Sept. 1978(b) Delivery of equipment Feb. 1979

2. Civil works contracts; award and startconstruction(a) Main canals, service roads and O&M

buildings in three subprojects Oct. 1978 - Jan. 1979(b) Major extension areas June - Sept. 1979(c) Schistosomiasis control drainage

works in Mindanao April - July 1979

Force Account Construction1. Complete detail engineering design for

initial year's construction Oct. 1978

2. Start construction of small structuresand features requiring rnone of theearthmoving equipment Dec. 1978 - May 1979

3. Start construction with equipment April 1979

Strengthening of Regional Organizations1. Action plan for strengthening

Agricultural Divisions Jan. 1979

Input-Output Monitoring1. Training of personnel July - Dec. 1978

Feasibility Studies1. Selection of projects and terms of

reference for consultants Sept. 1978

2. Selection of consultants Dec. 1978

ANNEX 4

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT II

Related Documents and Data Available in the Project File

A. General reports and studies on the agriculture sector.

Al World Bank, "The Philippines Priorities and Prospects forDevelopment, Basic Economic Report" Report No. 1095a-Pli,May 5, 1976

A2 World Bank, "Agricultural Sector Survey," Philippines,4 volumes. Report No. 39a-PH, May 2, 1973

B. General reports and studies relating to the project.

Bi NIA/Sanyu, "National Irrigation Systems ImprovementProject, Package II - Feasibility Report (Main report plus3 appendices), Manila, June 1977.

C. Selected working tables

Cl Climatological Data, Estimated Water Requirements and EstimatedCropping Areas (9 Tables)

C2 Density of Terminal On-farm Facilities and Cost of IrrigationSystems (2 Tables)

C3 Quantities and Cost Estimates for O&M Buildings and Each System(11 Tables)

C4 Price Structure for Various Inputs, Labor Requirements, Cropand Farm Budgets (9 Tables)

C5 Economic Analysis and Sensitivity Tests (4 Tables)

Figure 3.1

PHILIPPINESNATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: 11

Implementation Schedule-Southern Luzon Subproject & Common Events

1978 1979 1980 1981 1982 1983WVORK ITEM 0 NrI 0 N D J F M ATJ TTAFF FFNTD

_________________ ~~~ ~~1i~2Th2JLbs101 N1 L II M -IFMI J I A I S I F MADMA7M7IA SO NO

IRRIGATION SYSTEMS - REHABILITATION & EXTENSION

1 Mapp ng, Sur.-cs, Des-gn & Contract Admini-rrafion

Surveys for main canals, laterals & ............Topogfrphic uroc & mopina for on-farm worka - __ '_D-sipn of main canals, laterala & serVice roads

Design of drainae & flood contro1 works . ---------- ......... 1r k

DOsigo of on-farm fa-ilir-es….+_.-- .-- -- I I _ I _ i

Co-rcact Admln-sfra,nn-

Main corrals, roads & dr-.naae marks etc ._ I li O

O & M b,lIdigs and 050cr facili-iff - - D- AProco-meof of equipment ..-.-.. _._.........i

2. Contract Work C-nsrro-r-onMaIn canals & -sv rce road- .............................

Drainage & flood co-i-rol marks…. -- .…... _.._W ......91…_ * _ i _O & M bcildings ..--...... ........ ........ ........ .. I.... _ ........

3 Force Account WorkRepairs & mod,fica,-on of s.r.cc.ures . w_Z.+ , .... _U _ | 11 * 111 _Claninog f la-tralsnd minor drainaqe mocks _ w s .11 _ 91 _ f |

On-farm fac-l,s ....... I-t ---------

INPUT OUTPUT MONITORING Pha 1Train of Personnal 91 ppc 5 Vyar plan .

Input-output monitocing (N151 P--I) -Phase - - I - -----Input -oufic monitocing t (NlSP 111 ....... - - - ,, - ,, ,, -- _

Phase 3

FEASIBILITY STUDIES

Selsofron of pooacta & conaultantsfia

Feasibrlhty atud-is (3 proac-s)W

OssarI incessiaasion & das-gn f pectl -

Note: Shading indicatss ast sasan mn-ths World Bank-17823

Figure 3.2

PHILIPPINESNATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT:II

Implementation Schedule - Western Visayas

W ORK ITEM 999 1979 9T0 EM9__ 19F M2 *913 J F M A f a 0 N 03

IRRIGATION SYSTEMS- REHABILITATION & EXTENSION . i.IMap.in S,rve

5D,sgn &E ,9hct Adm, niat,o, . ..

T9p]o51Ephlc asrys & Ylpp,,,9or1a,,f09Y ...k - - _-... . .. . .g. . . ..

nof m -,, a ' & & h-- ce,oaos00 99, of dOaoage & floOd co90t,u1 wor09..................

TooIfaIO Adm;n,strat n

| 0crmn feulmn --------------- ---

2 CE00lact -No1EEO,, 1- -cn7

| M n c 2Iand er e rads..............................__---_ -z_ | _ |. f09 n, -----a - - ... __.. ------ - - ----

09oh MS1A,9s _--- --- -------------- --- ------ . .......

0 -r] farm acilit es----~------- ---- -- t t *-| _ www *= __.... ...... _- O. 9h0d0 109,c,- -

NotI Stb9h,dt0,tInd,c-t,1 we-esnmnh

Figure 3. 3

PHILIPPINESNATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

aeple-.et.tion Shohd.le-Mind.nao S.bprojeot

WORKITEM ~~~~~1978 1979 I9w0 1981 3982 4983

00830 ITEM ~ ~~~~~~0 D S0I1JiLS 0 D h JEiJi FLL Mt L A M J JU 02 F I8 FjI, -FAST O.TNT- 2 Fl. A M 2- JASOF

IRRIGATION SYSTOMS-RE-ABILTATION & EXTENSION

1. M84pp.-g ~n~ 49 & C-nTa- AAn---434I,4

-TIll - NOnm II- - .......... ......1

-. 1,11,31434

& &484 101- 41. ..............

OW -la, ~d.,h, f-341-, ....... ..-.-.....- * -

0,311& 11-0 -0------ ..... ..--......-

I&dU.q5 , A- - * -

SCI4ISTSSSMIASIS CONTROL ORSIISAM- 11

0II41 S n013- 1a41I.............

2 lI-,gnlfSl S434-d-1I-.11........- ..

SAI fl& 4n 34d -,l4 -. 111, ............. .. ..-

F - A C.- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

W.SnId B.-417625

PHILIPPINES Figure 4.1NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: 11

NIA ORGANIZATION FOR ENGINEERING & OPERATIONS

NIA BOARD

CENTRAL OFFICE I 1 ]ADMINISTRATOR ]

ASSISTANT ADMINISTRATOR IENGINEERING & OPERATIONS

[ROJET CONSTRUCTION' EQUIPMENT AGRICULTURE &DEVELOPMENT MANAGEMENT MANAGEMENT OPERATIONSDEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

FIELD OFFICES

REGIONAL REGIONAL REGIONAL REGIONAL REGIONAL REGIONAL REGIONAL REGIONALOFFICE 4 OFFICE 5 OFFICE 6 OFFICE B OFFICE 9OFIE1OFCE1OFCS

(PILAC (NAGA CITY) (ILOILO CITY) )ZAMBOANGA (CAGAYAN DE OFFICE 10 (COTAF ATO CIT OFFICESCITY) ORO CITY) IDVO IY ICTBT CT)1I 2

PROVINCIAL PROVINCIAL PROVINCIAL PROVINCIAL PROVINCIAL PROVINCIAL PROVINCIALIRRIGATION IRRIGATION IRRIGATION IRRIGATION IRRIGATION IRRIGATION IRRIGATION

I OFFICES I I OFFICES OFFICES OFFICES OFFICES OFFICES OFFICES

NATIONAL * NATIONAL * NATIONAL * NATIONAL * NATIONAL * NATIONAL * NATIONAL *z IRRIGATION I ^ IRRIGATION IRRIGATION IRRIGATION IRRIGATION IRRIGATION IRRIGATION

I SYSTEMS I I SYSTEMS SYSTEMS SYSTEMS SYSTEMS YSTEMS SYSTEMS

|NATIONAL* INAINLINNATIONAL* I NATIONAL* N A NJATIONAL* NATTONAL* A *IRRIGATION I RRIATINI IRIGAIONIIRRIGATION IRRIGIRRIGAT RRIGATIN IRRIGATION RI

PROJECTS PROJECTS PROJECTS PR SPROE P ECTS S

f NISIP II 1 q NISIP I 1 *| NISIP II 1 1 NISIP II I q NISIP II NISIP II NI 4

* National Irrigation Systems not included in NISIP II

* * National Systems under Construction with local fundingWorld Bank- 7553

FiquAre 4.2PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: 11PROPOSED ORGANIZATION FOR PROJECT CONSTRUCTION

Nb -eOAR D

USSR AD,NISTR-TO.ENGINEERING OPERATION

CONTUCT EQUIPMENT |1,SIP AGICULTURE

ANAGEMENT MANAGEMENT PROJECT OPERATIONS

_AEPARTMENT _ODEPARTMENT IRECTR D

* S| SY5TEM | PLANNINT PLANNINGS* MAGEEN

DIVGISIN D IVISION PROJECT '-* MPNOGEENT|DVSD

COOROINATOR PLANNING COOIEATNISIP - AND DIRVSION CGORDINATOA

REGIONS 68,0, 10 &I1IREGIONS r & S

DE51GN REPA. DISIIRON

ACCOUNTINGDIVISION DIVISION ~~~~~~~~~~~~~~~~~~DIVISION

CONSTR UI.N LUTILIZATION

ON TURINGDIVISIONDIVISION

REGIONA E REGIOL 0 REGIONAL REGIONAL REGIONAL REGIONAL T A REGIONALDIRECTOR DIRETOR OR OIDECTOR DIRECTOR R R DIRECTOR(REGION 'I) REGION RI ION DI (REGION 81 (REGION 91 (REGION 10) REGION III

0 A' RIO I I

DG DI V | V V I I | V | V III IRI -I

CANDILURIA SAN JDSE MOLAVE LUPONFIELD OFFICE FIELD OFFICE FIELD OFFICE | US REGIONAL FIE

I Y. EI (I SYSTEMI D T MFFICE

l l LUCENA O l l DAET SANRMOG GUIHING MLANG_FIELD OFFICE I FIELDOFICEIOFFICIELDOFFCE FIELD OFFICC I FIELD OFEICE FIELD OFFICE

IA| 12 STSTEMSI ( | | 1 GYSTOM} | | | (t SYSTEMI | | I | sI SYSTEMI I | i '' STUTEMI |S | | ISYTEM |

F -INFANTA LIAO AGO LAANGAN IMARID EUACANFIELD OFFICE FLD D OFFICE| FIELD OFFICE FIELD OFFICE

I SYSTEMI I N |STEM (|1 SYNTEM | IS ||STEM)

|| NASUGBU *| D EULAN |l LEDLO MOLAUR LAGAO * l F LI .NGAN

| I STATEMI I| | TTCO I SYSTEMS) |( 1 SYSTEM( |I g5YTM ||( YSTTEMI | I1 STUTEMI|

Or EOOIlIFIF SO1n Dlt to O bes lenthnd ndr ProeIO

t N-w unlts to be as,,bilshed under the P olW F 1

PHILIPPINES Figure 4.3NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

PROPOSED ORGANIZATION FOR OPERATION AND MAINTENANCE

TEAIAISAL AIRSETAT T~~~~~~~~EN ANAL ARETA- T .IAAL AIRETIAR REIALIEATAA RE-A.AA A-ENTANTNAANIETTNANLAN A

= CT IA Al- REGIN. II RI ITENTANANII TEAIA SI IRENA- SIN. TEA AN A L -EAl AN NN

A NATINT AlSATIAN AINNEINT AINANIAT AINTRINT NINARIT Al-IN NRA ITR-T -I-TRA AI-TATT ASRIA A1INET NISETIATl NISTRIT NIATA TIRRIT 'SCT A-ITTEIE-NIETIN N-STEN SITRIAT

IA: III :11 Ii 51 Ii' IA: Ill :51 151 IS Al III IT: IA: Ill Al III III IN: IA: Al-11-P~ I. . I - 1- -E-1 I-E

**R **** ~ ~ ~ ~ ~ ~ ~~ ~ ~~~~~~~~~~~~~~~~R -R- T

ARA T N A AR N TN ATEA-RER AIA-=RTA -ITTEN-TRATERR..R.N..ANNG NIA TN T

110, ISA: IIS, 1111 ANI GEl IAN: N: ITT: ITT, lIAR IAN: IA: IAN, 14' SRI 15L1-All ATE11N1 IR- IAN

AT-A G I-IA T .A AA

SEAT RSSIN EASS RSSNA TSNAIII ITSN SITAA 5 . ST A A

55SAWASASASWATGAISA IAN4- t ASIIASASNTSTAWAASS

Figure 5.1PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

PROPOSED CROPPING CALENDAR FOR SOUTHERNLUZON SUB-PROJECT

JAN FEB MAR APR MAY | JUN JUL AUG SEP OCT NOV DEC

C i:

N

SYSTEMS IN SOUTHERN s tem T_ _

TAGALOG (6,100 ha) Maintenance

H

WETSEASON

RICE

SYSTEMS IN BICOLSystem! To

(10,700 ha) Maintenance M _ _ _

HE

N ~ M

SYSTEMS IN SOUTHERN T

TAGALOG (6,100 ha)

M M

HDRY

SEASONRICE

C - m m -

SYSTEMS IN BICOL T

(5,300)- ~~~~~~~~~M m No-

a~~~

C: CULTIVATION 32=

N: NURSERY 300 -

T: TRANSPLANTING ,_

M: MANAGEMENT 268

H: HARVEST E 2 238

2~~~~~~~~~257

- 200 - lo z

U.- 179\\z

RAINFALL IL

-LUCENA, SOUTHERN 108 9 \\\\\\\\\\\ Z

TAGALOG 100 ~ ~ ~ ~ ~ ~ ~ \\\\\\\\50----- GUINABATAN, BICOL 84 5 O

=TYPHOON FREQUENCY

World Bank-17556

Figure 5.2

PHILIPPINESNATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: 11

PROPOSED CROPPING CALENDAR FORWESTERN VISAYAS SUB-PROJECT

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

c -= -I

WET ALL SYSTEMSSEASON (20,600 ha) System: T

RICESytmMaintena ce

DRY ALL SYSTEMSSEASON (11,400 ha) MT T

RICEM M

H

C CBAGO & PANGIPLAN jPP

SUGAR SYSTEMS IN NEGROS ICANE (6,400 ha) H

400 -0

NOTATION

C: CULTIVATION _N' NURSERY E 281

P: 2LANTING81 _ ZP: PLANTING n 254 250 WzT: TRANSPLANTING ._j

M: MANAGEMENT < OH: HARVEST 7 202

200 -10 2

0156 0

100 _ 5

57

32 31 r4

F,'71 r/''',//]I/ /// ///

World Bank- 17557

PHILIPPINES Figure 5.3

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT: II

PROPOSED CROPPING CALENDAR FORMINDANAO SUB-PROJECT

JAN 1 FEB MAR APR MAE I JUN ILLAUG SEP OCT NOV DEC

ALL SYSTEMS EXCtPT T N _

CAN1TILAN TINGANCAN & I T

SALUJG SYSTEM !SyOe1

125,900 ha)

H

WAIET CANTILAN SYSTEM TNES_

SEASON 24T00 hal UT - Se NI 1 .

RICE ,3200 ha M.. .. Maneace| sE W"

| | )messm mm M M m I

.~~~~~~~~~~~~~ I I I I Hdlll I ~~~~~~~~~~~~ ores, mtw i , WW=-

N ftV

TINGANCAN SYSTEM

(1,500 ha) Ss|en| MT _

SALUG SYSTEM i T | Tlum(7.300 hal MT|

I I u c |.,.|| |l

| l l l l ~~~~~~~~~~Ml l mInI N mur 11l1** I*

M~~~~~~~~

ALL YSTEM=S EXCEPTCANTILAN, TINGANCANSALUG SYSTEM(25,700 ha. ,

-- RY- CANTI LAN SYSTEM

RICE SANTOS h.)

TINGANCAN SYSTEM T t

1700 h.)w 4M ~~~~~~~~~~~~~~~M fr,W101&-.

~~~~ H ~~~~~~~~~i e stl 'I.. .1i

SALUG SYSTEM N lull 1ult i

(4,600 TaW t 179ll

1000

NOTATION9 87

C. CULTIVATION --- N: NURSERYT: TRANSPLANTINGSo M. MANAGEMENT

H: HARVEST 70 - 66

600

- 5000RAINFALL 44

-COTABATO CITY 400 --- CANTI LAN

--- GENERAL SANTOS CITY 300-7?77TYPHOON FREQUENCY25 2320

115 116 149 10~23 232313

200 10 15 1 7

VEomlo B-nk -17960

IBRD 12507R1

116 . 120° 1240 NOVEMBER 1977

CLASSIFICATION OF PROVINCES PHILIPPINESBY GEOGRAPHICAL REGIONS National Irrigation Systems Improvement Project

ILOCOS WESTERN VISAYAS1 locos Norte 37 AkIan I ~ A I~.I2 Abra 38 Canpi SYSTEMS LOCATIONS3 [locos Sur 39 Antique

>20° 4 Mountain 40 Loil o NISIP I 2aF

5 La Union 41 Negros Occicenta_ A NISFIP6Benguet 4ENTRAL AIAYSNISIP ifI

7 Partgasinan 42 Cebu r * NISIP Ili7 Pairgadnan 43 Negnos Oriental

CAGAYAN VALLEY 44 BohIl PREVIOUS IBRDoPROJECTAREAS

8 Batanes 45 Siq.,jor9 Cagavan EASTERN VISAYAS ROADS

10 K.a4nqa-Apayao 46 Northern Samar I RAILWAYS

11 Isabela 47 Samar A

12 2fugao 48 Eastern Samar IVERS

13 Nueva Vizeaya 49 Leyte A ] * panri R14 Cuirino 50 Souilem LeYte La ai 1 9 NIA REGIONAL BOUNDARIES AND NUMBERS

CENTRAL, UZON WESTERN MINDANAO r- oLa NARIOLOFCE15Nueva EciLa 51 Zamboanga del Norte TsarA REGIONAL OFICES

16 Tarlac 52 Zamboanga del Sur R JOO RIVER ------ PROVINCIAL BOUNDARIES

17 Zambales 53 Basilan T O / [ lROr&TlOnN PReJE7cT19 Pampania 54 Sulu / !

19 Bulaec a n 55 Tawitawi 3 14 Sudan r

20 Bataan NORTHERN MINDANAO 4 f 11SOUTHERN TAGALOG 56 Surigao del Norte *

21 Qusezon 67 Camiguain a 22 ItzsI 58 F arid "' PROJECTVE

23 Canite 58Agusan del Norte eain / I)\l7j9POEC24 Laguna 59 Misamis Oriental IL ( e /25 Batangas 60 Misamas Occidental Ur K /AET \ // elLO5ETERS ta

26 M/arinduque 61 Lanao del Norte A - / o 5Q t0e 15Q 20027 Mindoro Oriental 62 Lanao del Sur MIANrUP PAl>PdA RIVER PROJECT I_

26 Mirndoro Occidental 63 Bukidnon A PE FA PE,vAPAiV04 IRRiGATIOli PROJECr MILES

29 Romblon 64 Agusan del Sur 3 - l c ag30 Palawan 65 Surigao del Sur 1RAC IRRA TID SOG4ToVSYSTS

BICOL SOUTHERN MINDANAO so p MPPOVEtPENSTPROJECT31 Camarines Norte 66 Maquindanao .32 Camarines Sur 687 Ortho Olon9aP 2 21:

33 Catanduanes 66 Davao P H iU ,/1-Y Are34 Albay 69 Datoa Oriental -- , >

35 So nr ogo 70 Davao dei Sur '_ 42a-t

36 Masbate 71 Sultan Kudarat a/'' bu72 South Cotabato

tRnCOS'O (ek \ En ) <

DEVELCEMERT pnoipc 3 1 fi .7 q

120~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~13 MlND-Rnnar ~ \ ', ' - 33/

?,OR6~~DEVE~~~~~~O I, E,~EO do

_jn r:j29 3 - 44

.' L - XX,, ,t , / MAS,~~~ ~~~~~ ~ ~~~~BA. O 3 )/ r ' n

_12 , - Z 1 - \ t ' i S M R l2rv

5 /Aa~~~~~~Au P IP R0TOy R I/ t 1 A T IO IV-

/ PPO.f Cr , jArvA,Y [j.& a ; LEYTE \- '

30 . - 43 .30 Puortn Princesa /3 ,g 4 /(fSL - R

PALAWAIVN /o eor A

' / / \ 4;~~~~~~ ~ ~~ ~~~~1 43< > '56/fi

_gB r'~~~~~~~~~~~~~~~~~ / i 65

CaBBY

Zambaqg 60 r P y.,_ ^ . vi | /t~~~~~~~~~~~~~ C~OttnIenn 6?1 63 gt.50f

F -N -1

asRlan- 16& W .0 -d U '

Ci I unat / Coabt 7

rove '' G ,72 /G_ ': . I ,to,

MApo J uPl. _, d-s 'f bprnltupyreaereaaOrotuC tir eene,rerj.The dereneP 'srfn4 teed

; - ir- rzcvtnXrtf}$rtgd~~~~~~~~~~~~~~~~~~~~~~~~~~~~~seef*ebot/dae ratasuf9yrvt rrayeuderRo.e

'V I N D ,r ' E 'S I f. _* I' 12Oti,- 1 260° ,--

IBRD 12946R

_ 12 1 00' 121130' NOVEMBER 1977

-. t_P;, PHILIPPINES

/LUZON NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT IIREGION 4 IRRIGATION SYSTEMS 1sv o-

sotrFf SOUTHERN LUZON SUBPROJECTCHIS A Main Canals

St;. 0 tSAMAR .. Diversion Dams (Existing) Dams (Existing) I

Proposed Diversion Dams I,---

Roads

Railways

'F , .- Mlt*19ANAO ' Rivers

/ -~~~~~~~~~~~~~ ~~Rehabilitated Area

Extension Area RIVER

AVER

,J IRRIGAPON SYSTEm_

i l% .. -- e$) ~~~~~~~~~~~~Anlipolo '

BATAAN R I Z A L

-14°30' ' Covit fJ a n < n ay / < 140 30'

I ~~~~~~~~Cl s/ Binan,9 0uir

R, _ r- </>i~~~~~~~~~musO S >5iniloon \ C-40 30'~~~~~~~~~~~~

X 70Q A~~N, en

,tOOh r < xl. , l~~~~~~~~T E M X ub "aAnAC0Gi, a

t / Baton9ast ) ) \ l~~~~~~~~~ubo

I41 00'Pgblo 10-

Th tphob ropoerd by the . 1N

WoldSeot sta-$56ff exctsise/y for 2Li ) the cootveolieocs of the readrsr of t/f \ the repart to Which t kattched. -.The dooooomssetiots oaod osd tmf ther < , A Po Luce03

boooda rti teo hoW loon thio m tna ___ __ ___ __ ___ __ ___ __ ___ __ _

Wortd Baenk aned ito ofhheitOo, rrnyjodgoteoc as ther obe)t atatna of

boy tenitory or any e,odTsorroeaYSTt

or teooptattEnce of och hHoodoriea 121*000 121307

X-I1 1- IERIRGTO

IBRD 12947R

¢ 7 123XW 1~~~~~~~~~ ~ ~~~~~233+ t24 00 NOVEMi sER 1P7t

PHILIPPINES

N'ATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT 1'REGION 5 IRRIGATION SYSTEMSSOUTHERN LUZON SUBPROJECT

U EXISTING DIVERSION DAMS

El PROPOSED DIVERSION DAMS

-h. > Porocale_. EXISTtNG CANALS

- - - - -- PROPOSED CANALS

"A FTTALISAY~-MATOODON, RIVERS- Ri.VER IRRtA,I ON SYSTEM K4ol t__ ROADS

?egt az 0 ~a b g ; RAILWAYS

sLabo CAMAtES 1 'C(aw n 9 -- PRODVINCIALOUNDARIES

CAMA~INORT' E S' / Li REHABILITATION AREAS N

-14-00Q "A ' EXTENSION AREAS

LUJ

h - %. . -, f ) , -

- ;C.S LAI AMARINES G

< <\ Na9o XSUR Tgoon

a : ' 't \ k A >? /~~~~A G /VO

-13'30' 9 - virrLh,' GU Ft:

\_ \ AD~~~ A rv A Y . L , u

ia \> G t/ w rt - ) g / \ ,~~~~~~~~~~~~~~~ ~~ ;./ / >/ - olo\ n V.a

GtIz F~~~~~~~~~~~~~~~6I FWD

> * L L ( k-- -sHIBIG.S 1 J. SLA~Tabara r_

,,, , , , , <4 ;fIN MoIarmo Dorogo CL/ r,

NYT~\ BONIA$

xJ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~J

MA BATE { - \ hl! g 11 /Gj /'

s .. ~~~~~~ rryt ~~~~Dons& Jg&>~ _

LzNX LL A C r C N I / B d Y AV sn \<\ SORS/GONfnV 0 C52A A t eg E A S AN FRArNLCKSCBO /

,W A 1< 20. 3SE 4p 5,0 j2"!eo Xmrvrr ! (g-R. f 2

rhg F M r' U r <JvrJ 2 ' rAw rr dbL tL,SL ttE~~~~~~~~~soloontirorrr.\

s~~~~~~~~~~~~~~~~b fff 9 rrrrLr L r 1 *xX arr

s tr,t g JrrLvvtrbsAgafrStttW.W /. Mf A vBTE. *e r+53i *i J 6r Cd.t fLrXJrwrs fY_ ( 133

IBRD 12948R

W :S 0;;S ;;=:T ; / 0; 122t'; ;;= O ;:W: l223Oy N0VEM&}Ef 1977

PHILIPPINES

NATIONAL IRRIGATION SYSTEMS IMPROVEMENT PROJECT IIREGION 6 IRRIGATION SYSTEMS WESTERN VISAYAS SU1SPR£OJECT

cat = X X f Ks,d : e X Q : :;; ;0: Q; X:: t;=: z : ExistingDiversion DamsExisting Carnols-; ; ; < > S 0 -Q X 00 =S 5 R U Y A N;tv -stgl

:0 ii 0t 0-0 =:t~~~~: E 00 T 0700i;: :: tti30 A_-0 -- 9 Roa£is8adr8s t

IRRIGATION ~ ~ ~ ~ ~ RRGAIO

a; flea s =as bees p : ) a p ar lay t e We ! Baska f kassaMa ka R e h a bifithtaio n A re a s a

. at thaeaadnt sltnt eeeseeaMaln a s h h d e danees,aean Exa htA rees s ea -

a 0 ; 0 4 A 9 A K

SEA 123a00~~~~~A

" ' 0' : :: ' ) ~~~A N T I Q UE /V,ejo X

;;: 0 00 0 :. 9 ;;X{Va Vaderrama in l tgle v i 0

- / ( Maasin F l f Bar~~~~~~~~~ototan = ir

0 0 0 g2R X X 5 X g t;; b ~~~~~~~~ a _

S STEx tX 7R}GAMN> °( i 0 a h a) S lay £Ci ty> z

S a G J) 9;+

't-~~~~~~~~~~~~~~~~~~A RIE MurciaN |>

)'qo >,@~~~~~~~~~~~~~\0 14 RRIGiATION /

l//~~~~~~ 5/72 656; -r -4,oha .

fRt/.'f3'f-5 fpt=hf t{JtAu et6fft C y

_. SE~OCA V ;; . .2;C f 2s

BRD '3023RPHILIPPINES 125' /IS OEPR77

National Irrigation Systems Improvement Project TI F> REGION 9, 10, 11 IRRIGATION SYSTEMS, Mrnc ROXAS IRR GAT O']

MINDANAO SUBPROJECT AG USA-N' DEL SURKa EXISTING DIVERSION DAMSLI PROPOSED DIVERSSION DAMS\ B1 U K1I D N 0 N y-

____EXISTING CANALS --------RIVERS 7I

ROADS

'2 --- -- ~~PROVINCIAL B OUNDARIES

REHAEILITATION AREAS

-1 XTENSS ONAREAS I/ E'

LSONiSAN R VEN

4~~~~~~RIAINSSE7'~ ~ ~ ~ ~~ I,lj .b

b ~ ~ ~ ~ i&D 7 ouo"'~

JR KARACAN RIVER~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~~igEn

RI~~~~~~~~AT~~~~~~~Ck SYSTEY ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ooo

NORIVER,,

N 0 R T H~~~~~~~~~~~7

0OAEER .:

e~~~~~~~~~~hnSOUT Sea~~~~~~~~~ADC RE

'K ~ ~ ~ ~ 1 .RG71NSSEN' -~~~~~~~~PHILWflf4S'~~~~~~~~~~,50 .

* / A P' 3w~~~iu SZn J~

~~9~,7~'7'z7 Rf* "''~~- 7l7~7~77rlb~~ 7 ~ R~7 7¼7 ~ OR R.cor ~ ~ Soorot,7 5U T * H ~ 'C7" ,eT7oA*,gTt/

- * '2 R.~~~~ 75 TNGALtR N 77,,9'"7 vER 777~7. 77

IBRD 13024

IRRIGATION"REGION 8 i23-30 PHILIPPINES AUGUST 977

National Irrigation Systems Improvement Project IIi g( t7 \ ,_ /i/<~A/t REGIONS 8 & 10 IRRIGATION SYSTEMS

SA k' Mindanao Subproj'ectU Existing diversion darms

Main canalsRivers

0 5 10 1i5 20 Roads8'3 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Provincial boundlaries

Ore~~~o,oto Kilometers ~~~~~~~Rehabilitaition areas\ n > | 0 (t < 9Miles Extension areas

i26eOO Titoaha bos rpa by the 12h,-5'IRRIGATION REGION 10g torld _an,k'- rff- hi-ibfor1~~ tOO C~~oirenler ofth rhe,`aders of

the reorf to "hich it Is attachedaUCA The dooioe -n ued cad the

GRANDE b~~~~~oUindae- ohowo on thi'S MepORAfJOE ~~~~d.orot itply, -o tltepaq fathe

Zomboo ~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ISLAND World Baok cod, fitafliata., aoymenez po~~~~~~~~~~~~~~~~~~~~~~~~~~jrgr0oot oo the leeal etet.$ ofany teritory, or iy e,tdcrero-at

D elI N o r t e T\ganito l /., Xenez > er 2 )epta.c. F-h b.ondceds

M i s a m i s trSiocaba.\ ' ~~~Sioocoboo ~~~~~~~~~~~~~~~~~~PHIL/IPP/NVE SE--A

Occidental a, /PtV SA

-8, IS, 8-15'- -9-30' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~9'30'< =; e (x, 8^15|- ~~~~~~~~~~~~~~~~~~~~~~~~~~S)u r i g a o el ,

\ff> , | ~-~h}Claris " . No rte

'lebg , * v , Agusbnl -

L°bar,\F F IRRIGATION SYSTEMSTEMA I s . NEGRisl '- l5 /1IRA\ST

PA A/VGUll roy

125'4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~*5

LOb0

< < , /\cLABANGAN RIVER ' SuHgao Del SurR C B

/> \ == L_nao Del Norte M CAP c, t

21-"'-L 0z) iCATfA/lf ; dAY XIO3,JS' < _. .. ' b-e

123-30' 23'45' 7~~~~~~~~~~~~~~~~~~~~~~~~~~26h005 15-