THE WORLD BANK GROUP ARCHIVES

PUBLIC DISCLOSURE AUTHORIZED

Folder Title: New Land Development Project - Egypt, Arab Republic of - Credit 1083 - P005028 - Correspondence - Volume 3

Folder ID: 901230

Project ID: P005028 Dates: 03/10/1980 - 04/29/1980 Fonds: Records of the Middle East and North Africa Regional Vice Presidency

ISAD Reference Code: WB IBRD/IDA MNA

Digitized: 04/13/2018

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THE WORLD BANK Washington, D.C. © International Bank for Reconstruction and Development / International Development Association or The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org

PUBLIC DISCLOSURE AUTHORIZED

- - - -83 .

I IIII II Ill II Ill II Ill II Ill ll·IJI II Ill II IIIII Ill I IIII Aldt1~. 901230 . "' ' R1997-310 Other#: 29 12!54!511B

New Land o;~elopment Project - Egypt, Arab Republic of - Credit 1083 - P005028 -Correspondence - Volume 3

DECLASSIFIED WITH RESTRICTIONS

WBG Archives

~:_~·:.~r -~ ... "-..... 1 __ • ----- ,..._-, ; ,

EGYPT - New Land Development

I I

FORM NO. 635 (6-77) CLOSE - OUT SHEET

Thisfileisclosed : of ~ Jo, / Cf fO

For further corresponden~, please see U ~. ~ 7

RECORDS MANAGEMENT SECTION

1 he\ 1orltl U,1nk / rniu 11 '-tr,·, 1 , \\', \\ 1,ht11~t(ln, L) t .111 l l, c ~ .. \ • l, ,, ;r,11 ,,1,·: 20~ 1

Apri l 29 , 1 98:

Hr . G. H . Rothw_ll 1-t::.l c·: ~.'· PLC, 1, t. c. . Veneyard House (.,_ I ' . . ~ ' ... ' . l:. -. l ~ i.

London ',;6 7"2Y.

Thank you f or your letter o April 11 , 1 980 , \ i t.: the enc l sed co1>i'.:.. . ., of your st::co .. c1. p1~ 0 :,2::s rE,..-c:·t. Ee fir:c this r epc,:-:: ve r y u',:'..1 1 s:i ,...cc, i t 1-:eeDs us i nforn2d on the progres s on the design t,. ·,:,rk . The fol le; ·:.ng 2rc so~e co~Jen ts on this repo rt:

Para. 3 .1. 2 . The ne t 2.rca of the project tha t t'-.e Bank inte :-,ds to finance is 24 , 000 feddans .

Para . 3 . 2.1 . We h~v2 L2~e our o~n :alculatio~s 2~ irr:;~ti~~ water requirements by using t he ave rage meteorolc ;ica! data fr01;: Bo ::-g-e l-Ar a· and North _2:1rir st;,·::::.cr:s, bo th tc~:c,: :rc,:i the k.:ssian :-epcr~. t' f: i12"c re ac·-., d the sa~e r esu lt as in the report tja t t he peak de=d,d in July i s c;S n.3 per :'.:eJd.E,n/ Gc:y .

Para. 3.3.1. Synthetic membrane beneath the concrete lining s hould be used only if there are ::.~di.cations of gy-psife rous so ils.

Para . 4 . 1 . 1 . We agree wi t the sug~es tion t ha t a sep arate off~:~c should Q con~ tructed for the additional supply to the Haryu t Farm .

Para. 6.2 .1. (d) In our appraisal re9ort, we assc:.rne t l.;1 t a te e~. v,

fo ur extension o ffi cers and fi,;e social wori.<.c::::: ,.::...:...

there i s a ~0c for office &ccc~rnodati on in t~2 satellite village::; since no 2::::ensj o:, 0r cocp.: ,,,.._ ·-.·::. of f ice r s will be located in t i.2se v1_ ... a1 0 :..::, .

Hr. G. !' . flo t I V l i ----- ---- ------ --------------

Para . G.2 .J.i,c;) Jn our <-10,_.·L:::: _·,;,)rt . \,·c. ,.'lt'o '"':,sur:-c ~·1i.l t co,.;s wi 1 1 °t' ,ilkE.d in (: r.P farmers ' housc•s . The mi lk cente rs in each village will be simple 2- room bu1.Lci i ngs or t h~ daily conccntr,::tion uf i:L.it_. 1n ._ ·u o·- :.:.< :-::,.:. 1 village s , the nil~ centers wo .-Ld ,.,, p:-cviced ,,·ith coolini; facilitJ~ ., .

Para. 6.2 . 2. (2) Tr~rLors ~;11 ~ct he provided only to cooperativ(s but also tc i::vidid·al. throui;h loans fro~ t hP Agricultural Bank . Workshop s and rep air f acil i ~L:~

would be i.. L.:'.. uded in tr12 tender for t he procure .. _1 r. of f.::irm r::.:cc::;:i::1ery a:-id thei r establishment will b~

Para . 6 . 2 2(3)

Appendix D

Map

t. •• e re.s:,c -< r :.Ii t;· cf tr.e supplier .

~o ~io g~~ci1 g a~j p~c~i::1g line f a ci li ties wi! 1 be pro-i2ed ·r~er the Ban~ project.

'\<.'e sugges t a rr.ini:::'...::n de: th of field drains o: 1. 3 n ra tnc..r th:::1 : .or:. \·".,t:?r ': 2hle r;·; ;t-i t be a lcn~ ~ ::o r each hi ghe r level than 1 .2 m during the 48 hours after irriga tion wi t:i10u;: c.amage to the crops .

Ke assur::e t. a t i:-: t:1e 3,::::;~ p r oject of 24,000 f ec..i-ns net there will be 20 villages in total of which 4 will be main vill26e s a::d 16 satellite villages.

Yours s i ncerely ,

Peter E. Naylor Chief, Agr iculture Division IV

Europe, Middle East and Jo rth Africa Region Projects Department

[G,T- er. 10~3

ECONOMIC CONSULTANTS LIMITED

DIRECTORS VI. F . LUrrR.ELL

C"'1.lmuJn ond ~"'1 C . M.H . COX

Deputy Monagtng

36/38 WEST STREET

LONDON WC2H 9NA J. P . NORTHCOTT J . PUu.BROOK

Ref WFL/SJE/Al49

Ms Helen Minshall EMENA P~ojects Department Agriculture IV Division The World Bank 1818 H Street NW WASHINGTON DC U S A

Dear Ms Minshall

( rcgl.c..r•d office)

Telephone: OJ- 838 7064

Cables: ECONOSULTS LONDON WC2

Telex: 28604 REF 875

Registered In .England Numb•r 626050

22 April 1980 ~

Thank you for your letter of 21 March, addressed to my colleague Geoffrey Cox who is at present abroad.

We took this matter up with Mr John Pilgr1im who is now again abroad on another project. He tells me that after receiving a photocopy of your letter and enclosures and an appropriate message from Mr Cox he telephoned Mr Graeme Donovan at the World Bank and telexed him with details of his expenses for the We s t Nubariya Project, He has told us that it was then agreed that the World Bank would process our account after taking account of the expenses which he declared, as against the advance he received from you. However, he apparently did not provide the stubs of the air tickets, which he has now sent to me. I am therefore enclosing them, and I hope that with this information you can now process our account sent to you on 12 March.

I am sending a copy of this letter to Mr Donovan·.

Yours sincerely

V W F Luttrell

Encs

&,c;;;r-0-. /0<33

ECONOMIC CONSULTANTS LIMITED

DIRECTORS W . F. LUTTRELL

Cl&airman and Managing C.M.H . COX

Depu,y Manag;.g J . F . NORTHCOIT J . FULLBROOK

Ref WFL/SJE/Al49

36/38 WEsr STREET

LONDON WC2H 9NA ( registered office)

Mr Graeme Donovan Agriculture Division IV Europe, Middle East and North Africa Projects Department The World Bank 1818 H Street NW WASHINGTON DC U S A

Dear Mr Donovan

Telephone: 01- 836 7064

Cables: ECONOSUITS LONDON WC 2

Telex: 28604 REF 875

Registered In England

Number 626050

22 April 1980

~

Many thanks for your letter of March 24. I am glad that your mission to Egypt went well, and that we were able to give some assistance. I certainly look forward to future opportunities to work with you, and I will let you know if I am coming again to Washington.

Meanwhile, we have not yet cleared the accounting aspects with Ms Minchell, and I enclose a copy of my letter to her of todays date which I hope is self-explanatory. \ O...~l. ;i Q

I I ', 8 D

With kind regards. ,- ·

Yours sincerely

W F Luttrell

Enc

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6141 o IFAD

Birmingham Road Saltisford

Directors: J . L. Gould (Chairman)

nrrr, ULG Warwick CV34 4TT England

Telephone

P. J . Goddard (Managing) W. H.J. Saunders

ls Consultants Ltd. G. W. J. Almond

Warwick (0926) 496121 J.P. Bedford J . R. Dorrell

International Consultants in Agriculture and the Agro-industries Telex: 31565 ULG G

Cables M. J . Rayner D. J. Moffatt

CONAG WARWICK J. A. Semple

PJG/J R DENA ----·

17th Apri 1 1980 GRICULT}JRJ DIVISIOII IV

Reo'd -fP,1.-,V~~~ 3~.z __

Mr. P. Economides, Assi~ed to . - ~ --- :;;/"~ --- fhlk - J.P.. ~ ,7

Agriculture IV Division, EMENA, The vJorld Bank, 1818 H Street, NW, WASHINGTON DC 20433, United States of America.

Dear Paris,

EGYPT: WEST NUBARIYA EXTENSION DEVELOPMENT PROJECT

,

Further to my letter of 1st April I have now discussed various aspects of the project with Dr. Adel Ezzy and Dr. Rifki Anwar in Cairo, whence I returned to the UK on 14th April. If I may take the main points one by one:

1. Current Trials Programme, September through December 1980

The Ministry of Land Reclamation has agreed our programme for the interim period l st September to 31st December 1980 as laid out in Appendix I to my letter to you of 1st April, and has approved the costs detailed in the same document. These amount to $138,645 in foreign exchange, plus local costs to be met by ARAD amounting to LE 22,237.

Dr. Ezzy has now sent to Mr. Naylor a formal Application for Payment by the Bank of a sum not exceeding $140,000, being the balance of the PPF not as yet allocated. We trust that the Bank will confirm the availability of this dollar amount (up to $140,000)·, whereupon ULG will conclude a contract with the Ministry of Land Reclamation, ARAD, for the continuation of our services on the Develop­ment Trials until the end of this year. I shall take a draft contract on my next visit to Egypt, 8th to 15th May.

The Ministry has also agreed to our request for the early appointment of three full time Egyptian counterparts to assist with the work on the trials site as the expatriate resident team will be gradually reduced to solely the Trials Manager by the end of October. In order to familiarise the counterparts with the scientific, engineering and crop husbandry duties involved, the client has agreed that the following Egyptian specialists will take up their duties by the beginning of June 1980:

Registered in England Registration No. 937426 Registered Office: Birmingham Road, Saltisford, Warwick.

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R c: (-. t·.:: I I r:: , l..,J. L.. :.,.,

1920 APR 22 PM 2

INCOM !t' G Mt\lL !li IT

- 2

Crop husbandry expert (with knowledge of sugar beet) Soils and water specialist Engineering technician (a mechanic with experience of small engines, pumps and farm machinery).

2. Extension Worker & Settler Training/Demonstration Farm Units, 1981-85

3.

1

With regard to the trial s, demonstration and settler training progranme from 1981 onwards, there are some incipient difficulties concerning the approach to the selection and early short course training of settlers prior to the establishment of the Phase I settlement area, with its water supplies, by the end of 1983. I believe that the draft programme outlined to me by Mr. Nigel Montieff in Washington in February may not adequately recognise the problems associated with uplifting some of the landless farmers, with­out their families, into temporary accommodation on site and possibly a long distance from their homes. The Ministry have reservations about the practicability of training the settlers in this way, whilst it realises the importance of training VEW and SMS's on smallholdings where the agronomic conditions will be closely similar to those on the project itself.

Temporary Training Courses for Selected Settlers

Whilst I realise that your plans were still formative when we spoke, I would suggest that alternative methods of timing, relocating, and familiarising settlers - preferably wi t h their families, except in the case of the pioneer settlers (who lt,OUld be specially selected) - should be considered. This question may be best dealt with after the finalisation of your appraisal report. Meantime Dr. Ezzy and Dr. Rifki have asked me to examine different ways in which this could be done, as they feel that tern orar1 relocation of heads

. h usehold ,s no prac ,cal in E ~ey also wish to see the staff ana facilities at the Maryut Centre used to the, r u - again recognising that training, be it of extension workers or settlers, is not (only) a classroom exercise. They also feel that the GOE could P.rovide an animal duction SMS who -would sa ,sfactorily fill the P.erceived duties of t ~he ___ _ livestock specialist in an expatriate training ana tecnni__ca team. Tne neea for expatriate specialists in the other fields is well recognised, as is the need for an effective home office back-up, spares and supervision function.

I am making these suggestions in the hope that they may help to anticipate or avoid problems later in the year. Our interest is, as you know, in common with the Bank's, to achieve an effective implementation programme. I also feel that the key to develop­ment in Egypt is to blend the technically efficient with that which is locally acceptable.

3/ ...

- 3

I should be most grateful for your comments and any guidance you air.e able to pass me at this stage, especially with regard to the settler training programme.

Whilst in Egypt ~e reviewed the March Halcrow-ULG Detailed Design report with the ARAD Engineers, and agreement was reached on several aspects which required clarification (canal lining specifications etc.) You will be receiving the minutes of this meeting in the course of the next week or so, and I am pleased to say the work programme is goi ng ahead satisfactorily.

With kind regards,

Yours sincerely,

P.J. GODDARD

E &, . N-t-J t~4 ~~ Ministry of Land Reclamation.

Mr. Peter Nayler, Chief, EM EN A Project, 4

The World Bank. 1818, H. Street N. W,

Washington De 20433 U.S.A.

Dear Mr. Nayler,

Dokki - Cairo.

.__---------------~~--Kindly be informed that during my last visit to London, I had the opportunity to discuss the financial aspects of the West Of Nubaria Sugar Beet trials with Mr. Br&ns, 0 , D,A representative. As you know these trials were initiated after the discussions of U.L.G. final report submitted to Ministry of Land Reclamation with the World Bank representatives~The O.D.A ·kindly forwarded the foreign co~ponent of the cost of these trials for the first year ending August 1980. While in London I tried my best to convince Mr. B~11ns to extend the O. D A.donation for these trials up till the end of the :trials or at least until the end of 1980. Unfortionately, I was unable to convince Mr. B~~ns of either suggestions because of the present fin&ncial status in England. Since these trials are essen­tial for the success of ~he project, and since our con­t:act with H.U.L.G. Company for the first year design and tender specifications of which the World Bank kin~ for­ward a pre-investment loan of one Million Dollars, since

f'I

the total contract amounts only to 860 000 · Dollars, It is kindly requested that the World Bank would reallocate the balance of 140 1000 Dollars, to cover the foreign component cost of these trials uptill the end of 1980. Aatually U.L.G Company has submitted it$proposal to carry on such work up- · till the end of 1980 with a foreign cost componant around that figure. Since the duration of these trials is five years, it is also requested that the foreign component cost of these trial$ from 1981 on ward would be covered from the loan extended by the World Bank to cover the cost of rec­lamation an<1 settlement. Thus you are kindly requested to

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2

to reallocate the balance of the oneMillion Dollar$originally allocted for the design and tender specifications of the first ye~ work to cover the foreign component of the sugar beet trials up to the end of 1980, and you are also requested to speed up the allocation of the loan to cover the setteller's part of the project, so that money would be available in January 1Y81 to pay ror the cost of the trials till lYtS~. ~nank you for your co-operation, waiting to hear from you at your earliest con­venience.

f Yours Truly

R-/'1.~ Adel H. Ezzy

Counsellor to Ministry of Land Reclamation.

a ~~{JJ CA_l.4J I v!iJ

~I ,.,.- 'I -I" ~ '.)~~

10

<Ii) kAlcRow-ulG bd Agriculture - Engineering - Rural Development

*

Princes House, Princes Street, Swindon, Wiltshire SN1 2HH.

Telephone : Swindon (0793) 32141 Cables : Propulsion Swin . Wilts. Telex : 44844 (A/8 HALWI LG)

WL/NSD/32

Mr. P. Economides, Irrigation Engineer, Agriculture Division IV,

11th April 1980

Europe, Middle East & North Africa Region, The World Bank, 1818 H Street, Washington DC 20433 U.S.A.

Dear Mr. Economides,

WEST NUBARIYA SETTLEMENT DESIGN PROJECT

_ tv 1 -/fd -Enclosed please find two copies of our second Progress Report

covering the month to 26th March 1980 .

You will see that we have included comments and sketches by the

World Bank on Settlement p lanning as discussed during Mr. Lloyd's

recent visit to Washington.

Yours sincerely,

/ff!/!!:~ G.H. ROTHWELL Project Manager

Encls: *

Director of' Agricultural Services J.R. Dorrell

I -1

/,, 11-;i.s-- i O rt' 1e;;_-

Director o( 1:·11gi11eeri11g Services C. CAwre

Board of Directors R.S. Baxter R.F. Camacho C.L. Clarke P.J. Goddard J.L. Gould W.H.J . Saunders

Registered in England No. 1318086 Princfls House Swindon London Off ir.e 45 Notting Hill Gate W11 3JX

-• •

I I

VVUM i...{.; !:)1-11\11' I IN I t:HI\I" 11'-.. N ,'-\ l .. ~1 ~1 1-11\IL,t: L, Uri~ UiiA I IU N

TO: See Distribution

OFFICE f'11EMORANDUM P~, .. tJe,w L.c.viol ~ V: DATE

FROM: Roger A. Hornstein, Senior Adviser, Co-financing, VPO

SUBJECT: C.O-fina.11.cing with CDC

<!.. - 7oK

April 11, 1980

I am attaching a copy of a l etter which I received from the General Manager of the Commonwealth Development Corporation (CDC) relating to topics which might come up for discussion at a meeting with CDC in London next month. As I may not be able to attend the meeting, I would appreciate it if you could provide me with a brief note on the matters relating to your countries in a form which I can forward directly to CDC.

Since I would like to send chis information to CDC before their meeting, I would appreciate receiving these notes by Frida~ Apr~ J 18. Should any of these matters involve very detailed"=expianat1ons, suggest that you also arrange to have appropriate staff contact CDC directly.

Attachment

Dis tributi.on:

Ms. Calvo, WA2 Messrs. N. Gibbs, AEA

Gonzalez-Cofino, LC2 IQ;pp, EMl / Reese, EAl Shibusawa, ASA Ts antis, AEA

cc: Messrs. Jaycox, AEA Ludvik, LCNVP Richardson, fil'INVP Russo, ASA Takahashi, EANVP

RAHornstein:jcd

-~- .. _ --_,...--.....-y--------.----- ~------~ ---

"ELEPHONE: 01-629 0404 "ELEX: No. 21431

CODE: BENTLEY~ SECOND CABLES : VELOP LONDON WI TELEGRAMS : VELOP LONDON TELEX

COMMONWEALTH DEVELOPMENT CORPORATION

iENE:RAL MANAGER

' · MEINERTZHAGEN, C .M . G

33 HILL .STli°EET

LONDON WlA 3AR

58017

Mr Roger A.Hornstein, Senior Adviser , Co-financing, The World Bank; 1818 H Street, N.W., Washington, DC 20433, USA.

Dear Roger,

10th March 1980

3 /C.

Many thanks for your letter of February 13th in which you have asked whether we will have any particular topics to discuss at the general meeting in London on May 21st.

As some of our longer-serving Regional Controllers have now retired and there will be two new Controllers at the meeting, it would be very helpful if you would briefly bring us up-to-date on the Bank's s~ructure and organisation; for exam?le the divisions on a geographical basis and the distinctions between your Pr9grams and Projects Departments.

J l

1 ·

My colleagues would also appreciate copies of any publications which you may have on the Bank's co-financing activities. And, of course, any news which you are able to give us about current Bank policies and priorities.

Otherwise, I think that the objectives of the meeting should be to air views on the performance of existing projects in which we are associated. Happily such projects seem at present to be relatively problem free, with the exception of tobacco projects in Zambia, particularly the Family Farming Project, and the future of the Tobacco Board of Zambia on which we await the outcome of the Bank's studies.

. .. I

2

There are a number of prospective co-financing opportunities for new projects, and the expansion of existing projects, which we would lik e to discuss at the meeting. Geographically, these are -

I J l

(1) SRI LANKA

(2)

( 4)

(5)

Results of Bank's survev of rainfall and irrigated sugar p rojects, and the effect on Moneragala, System C and other projects.

CooP.eration with the Bank in the estate sector for tree crops.

The Bank's proposed involvement in Systam C.

Monetary constraints for lending at remunerative interest rates.

EGYPT

The state of the Bank's ~ppraisal of the West Nubariya Scheme.

GUYANA

The oil palm project which we have been discussing for some time.

THAILAND

Phase II of the Thailand Rubber Replanting Aid Fund.

CAMEROON

Hevea Cameroon Expansion.

Cand·ev Phases II and III.

(6) PAPUA NEW GUINEA

We may be inviting the Bank to Join us in financing the Godaguina Rubber Project.

The above list is not necessarily exclusive and nearer the time we will probably be updating it, in which case I will give you advance notice.

. .. I

. ' I

3

C ~- ·. : ~ ) .. l e' , f I .

I ' ; : I / I! '. '; •] ", We much hope that we will hcive' I the pleasure .. of

seeing you personally at the meeting, but we will quite understand if you are unable to fit in a trip to London at that time because we know that you have a very busy programme during the month of May.

,! !

fi) lwc:now-u'-G. bd Agriculture - Engineering - Rural Development

Registered Office: Burderop Park, Swindon, Wiltshire SN4 OQD, England

Telephone: Swindon (0793) 812479 Cables: Propulsion Swin . Wilts. Telex : 44844 (A/B HALWI LG)

WL/NSD/CONF

Mr. P . Economides, Irrigation Engineer, Agriculture Division IV, Europe, Middle East & North Africa Region, The World Bank, 1818 H Street, Washington DC 20433 U.S.A.

Dear Mr. Economides,

WEST NUBARIYA SETTLEMENT DESIGN PROJECT

10th April 1980

On his recent visit to London Dr. Ezzy from the Ministry of Land

Reclamation, Government of Egypt, kindly signed our application forms

for the first two monthly payments of the West Nubariya Settlement

Design Project due at the end of February and March 1980 respectively.

We should be extremely grateful if you would forward these

applications, the first dated 26 March 1980, the second 10 April 1980,

to IDA on our behalf.

Yours sincerely,

G.H. RDrHWELL Project Manager

Encls:

Director of Agricultural Services: D. R. Willfson Director of Engineering Services: G. C. Awre Board of Directors : R. S. Baxter R . F. Camacho C.L. Clarke P. J. Goddard J. L. Gould W. H. J. Saunders Registered in England No . 1318086 London Office : 45 Notting Hill GateW113JX

...

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1980 APR 16 PM 2: OS

;NC OMI NG MAIL UNi;

Graham Donaldson, Chief, AGREP

Alfredo Sfeir-Younis, AGREP

EGYPT New L~nds Development Project - Decision Memorandum

April 7, 1980

1. I have followed very closely the decision about the rate of return of this project. It is an important issue for management to know about; however, I think that we will have to wait until the region comes up with a more definite answer (maybe this week).

2. I am planning to talk with the project economist as soon as the preliminary economic analysis is put out.

cc: F. Rotes (AGR)

ASY:vau

OFFICIAL FILE COPY

• TO: THRU:

FROM :

~;;;2;T~~:~;;~R~~:~= ~ . r r

Mr. W.C. Baum (Vice President, CPS) ~ DATE: pril 4, 1980 M. Yudelman (Director, AGR/CPS) F.L. Rotes (Irrigation ADviser, AGR/CPS) -

SUBJECT: EGYPT - New Lands Development Project Decision Memorandum

1. Your attention is invited substantive issues set forth in the attached subject me

A. The economic rate of return will be low ---possibly below 10% (para 3).

B. Award of contracts for repair of the existing supply canal (Nasr Canal) would be a condition of effectiveness (para 4).

C. Cost Recovery. GOE has never accepted the principle of farmers paying any water charges, and the Region believes that it would not be appropriate to use this project to negotiate a reversal of Government policy (para 8).

Also attached is a copy of a Regional memorandum of March 31, 1980, which eufl'lfl\~...--i "'-"C'I M...- Un.,.-c,1 '°""'" I c, ""'fflfl\nT'\+- c, nn +-ho nor".; c,; n-n MomnY~ndum •

2. I believe that Items l.A. · and l.C. should be the subject of advance Loan Committee or Senior Management guidance to the Region. I have no advice to offer on l.A. other than to say that most .New Lands projects in Egypt probably will have low rates of return, and GOE is determined that their growing population must be given land on which · to settle and produce to the extent that water is available. Both water and land are available. Regarding Item l.C., my reaction is that the Bank should not finance the project unless GOE accepts the principle of irrigation water charges and agrees to introduce such charges at the time the first project water deliveries are made.

3. On Item l.B. I would prefer that the award of contracts be a condition of Board Presentation. Long experience with GOE demonstrates consistent failure to meet deadlines and provide funds.

Attachment

FLHotes:rm

Cleared with and cc to: Mr. Pickering (AGR/CPS)

cc: Messrs. Collins, Donaldson (AGR/CPS)

TO: Mr. E. KHpp

FROM : Otto Maiss O f'1

WORLD BANK / INTERNATIONAL FINANCE CORPORATION~

OFFICE MEMORANDUM

DA TE: April 1, 1980

SUBJECT: EGYPT: New Land Development

1. The dispute about the rate of return for a new land development project (see your note dated March 31, 1980) suggests to me that our conventional wisdom sometimes leads us into a blind alley.

2. That new land development projects show relatively low returns is not surprising. Their benefits span a much longer time period than we use in our project appraisals, and the initial development cost tend to be high. On the other hand, alternative projects for which we calculate higher rates of return (e.g. industry or transport) usually do not take into consideration the cost of Egypt's most valuable resource, i.e. land. Thus, I feel that our appraisal methods are biased in favor of land consuming projects, and discriminate against projects which reclaim new land.

3. New land development is going to take place in Egypt, whether we like it or not. And sooner or later the Bank is bound to be involved in such projects. If we participate early we may help the Egyptians to avoid costly mistakes. The true rate of return could thus be construed as the difference between the admittedly low but positive returns we hope to achieve through our projects, and the negative returns that are likely to occur if the Egyptians are left to their own resources. This difference is likely to exceed 10 percent by a substantial margin.

4. Whether we try to adjust our appraisal method for built-in biases (para. 2) or experiment with "relative" rates of return (para. 3) I would plead that we use all the imagination we can muster to justify Bank/IDA participation in new land development projects.

OMaiss:cb

cc: Messrs. Karaosmanoglu, Dubey, Swayze, Kavalsky (o/r), Dervis (o/r).

Saltisford 6i -A.kl() I.A'IJ.D Bi rmi ng ham Road Warwick, CV34 4TT

Directors: J. L. Gould (Chairman) P. J. Goddard(Managingl W. H.J. Saunders nlfci ULG

L§ Consultants Ltd.

England

Telephone · G. W. J. Almond

International Consultants in Agriculture and the Agro-industries

PJG/JR

1st April 1980

Mr. P. Economides, Agricultural IV Division, EMENA, The World Bank, 1818 H Street, NW, WASHINGTON, DC 20433, United States of America.

Dear Paris,

I ,

Warwick (0926) 496121 Telex: 31565 ULG G Cables CONAG WARWICK

:£.._k 6 47- 77.v,~ --·-- ·-

LOLU.1/Crocl t 1 -

Thank you for your letter of March 25th w ,c as· brought back by Mr. Lloyd following his talks with you and your colleagues on the Detailed Design Studies for West Nubariya.

J. P. Bedford J . R. Dorrell M. J . Rayner D. J. Moffatt J . A. Semple

Regarding the continuation of the field trials between September 1st and December 31st 1980, I shall be discussing this with Dr. Ezzy in Cairo soon after Easter. As everything is agreed in principle between the parties concerned I anticipate that you will be receiving an official request from the Egyptian Govern­ment for payment to cover the foreign exchange costs for this four month period under the current PPF. ·

I also note your amendments to the timing for the Team Leader/ Extension Specialist, and the Animal Production Specialist for the Development Trials 1981 - 1984: these being delayed by one year but for unchanged durations. Furthermore that the timing of the other specialists and the total man months required should remain the same.

During the next few months we anticipate that ULG Consultants Limited, which has conducted the Trials series todate, will be .......____ invited by the Government of Egypt to subnit detailed staffing and cost proposals for the execution of the 11981 - 84 (now 1985) programme, in the light of the Bank's project appraisal.

Yours sincerely,

P.J. GODDARD Managing D1 rector

Registered in England Registration No. 622216 Registered Office: Z SI! Sil a ; JJ bl !IS:.

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WORLD BANK / INTERNATIONAL FINANCE CORPORAT ION

OFFICE MEMORANDUM TO: Files DA TE : March 31, 1980

FROM: Hans-Eberhard

SU BJECT

1. Mr. Horsley called on March 24 to convey his comments on the Decision Memorandum (Interim) dated March 19, 1980 on the above project.

2. He strongly emphasized that it was absolutely necessary to have a firm idea of what the economic rate of return of the project would be before any decision to go ahead with the project could be taken. He indicated that it would probably be impossible to get green light for further processing of the project if the rate of return turned out to be below 10 percent. I emphasized in response that there were a number of non-quantifiable benefits of the project which, in my view, might even justify a project with a rate of return somewhat below 10 percent, but that we should await the calculation of the rate of return before passing any judgment on the merits of the project.

3. Mr. Horsley enquired whether the settlers would get a fixed allocation of water based on their estimated needs. In this context, he wondered whether any consideration had been given to the relationship between the cropping pattern and the amount of water needed to grow certain crops, since this might have an effect on the economics of the project. In response, I explained that there is very little variation in water require­ments among the alternate cropping patterns being considered: for example, sugar beet, which is a winter crop in Egypt would be an alternate to winter vegetables and both crops have approximately the same water requirements. There are fixed allocations to each farmer, based on their estimated irrigation requirements. Efficient use of this amount of water would be encouraged by a good distribution system, good land levelling and preparation, and farmer training and supervision.

4. Mr. Horsley shared the view expressed in the Issues Paper and the Decision Memorandum that the reconstruction and repair of the Nasr Canal was essential for the project. He, therefore, urged us to keep pressure on the Government to work out a satisfactory approach to this problem and at least have it invite bids before the project is presented to the Board.

Files - 2 - March 31, 1980

5. As to the need for cooperation among farmers, he felt that it was essential first to find out whether the existing cooperative structure would have to be introduced in the New Land area and secondly, if so, to carefully examine what impact this might have on the cooperation among the farmers.

Cl. with and cc: Mr. Horsley (3)

cc: Messrs. Chaufournier, Dubey, Richardson (EMNVP); Karaosmanoglu/Ms. Schaeffer, Maiss, Bhattacharya (EMl); Knox, Haynes, Hume, K. Jones, Naylor, Bose, Economides, Donovan, Monteith (EMF); Willoughby (2) (TWT); Rajagopalan (3) (PAS); Yudelman (5) (AGR);

HEKopp:orp

Chittleburgh (EDC); Abu-Akeel (2) (LEG); Hakim (CTR) Swayze (EMl)

Mr. P. J. Goddard halcrow ULG Li ited nurd rop P rlt Sw1n'on Wil s SN4 OQD

D nr ck.:

March 25,190

Thank you f r Your lett r of t'.arch 17, ded to by r. Lloyd.

W h ve no co f i«!ld trials betw i ord r to get en official req

co tinuation o A9 w diacusa

n d

Tr14ls 19 1-1984, (Appenrii II)

•tead (1st d Dec Mber. 19 4}

(1 tead .July,

Te chang a are cessary b cause do not exp ct our ~rain.in pro r to start efore 19 2. The timin of the oth r apecialists and the total

n/ nthe require· re iain the same.

For the p rpose of project ult t s rvices cost on th . b

will calculate the cou­fe a us d by th• ank,

in th uaual allow ce for pric

P'co omides/dc

your,

P. c Otllidea Agric ltur IV Di•iaion

Europe, Middle Ea. t & North Africa Projects Depar nt

-«-------- -~ -

TO:

FROM:

' SUBJECT:

WORLD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM Files DATE: March 25, 1980

P. Economid

EGYPT: New Land Development Project Processing Schedule

I discussed today with Mr. T. Swayze the processing schedule of the subject project. It was agreed that the white cover be issued on May 20, 1980 and the yellow cover on August 12, 1980, i.e., after my return from home leave. It was also agreed that Mr. Swayze will prepare the first draft President's Report dur­ing my absence and issue it on July 25, 1980.

cleared with and cc: Swayze cc: Kopp, Heidhues, Donovan PE/de

.. w. F. Luttr ll co omic (;onsultants Lf ited

36/38 West treet Loodon UC2li 9.tA En lo.nd

Dear Mr. Luttr 11

B;f;-

March 24, 1980

l 4ck.nowledge with thanks receipt of th draft sections of th gypt a.ppr al report. prepared by John Pilgrio. ti h cl n inter st1n

al)prai al ffli sio in E~t. dealing with • co plicat d a difficult p?'oj ct.

I thank you for your s istanc in s uring .r. Pilgrim's rvices, and look forward to further contacts with you iu th future.

/tung

Your si cerely,

Grae e Do vau Agriculture Division IV

Europe, Middle st d orth Afri Proj ct Depar ent

WORLD BA NK / INTER NATI ONAL FINANCE CORPORAT ION )

OFFICE MEMORANDUM TO : Mr. Robert Reekie, Chief, Power & Energy Div. (EMP)

FROM: Amal K. Bose, Acti.ng Chief, EMPA4 _'l,/(~ ­

SUBJ ECT: Economic Cost of Energy in Egypt

DATE : March 20, 1980

1. A new land development project(West Nubariya) aiming at the reclamation of about 24,000 feddans of desert land was appraised in February in Egypt by our Division. Some doubts have been already expressed about the economic feasibility of this project mainly because it involves a considerable annual consumption of energy (about 2,000 KWh per feddan) for pumping.

2. In order to allow us to proceed with the calculation of the economic rate of return and to seek a management decision about whether to finance this project, we would be grateful if you would provide us with your views on the economic cost of energy in Egypt.

3. Please note that the five pumping stations installed in the project area are provided with electricity from the South Tahrir 220/66 Sub~station and that transmition lines of 66 kv are used. Transformers of 66/11 .kv are installed at each pumping station, the motor~ of which are operating at 11 kv tension.

4. The energy consumption during the peak and off peak summer and winter periods for pumping are shown in the attached table.

Attachment

cc: Messrs. Naylor, Donovan(EMP); Swayze(EMl)

.....-- .. ---------·~-·------------. --,:- --- ·--·---- ---- ---- -

EGYPT

Pumping Stations-Energy Consumption During Peak and Of f-Peak Periods (Operation at Full Capacity)

Installed 1/ Winter(l0/1-5/31) Summer(6/l-9/30) Total Power Peak(l7.30-21.30) Off Peak Peak(l8.30-22.30) Off Peak

KW Hours KWh(mil.) 2/ Hours KWh(mil.) 2/ Hours KWh(mil.) 2/ Hours KWh(mil.) 2/ Hours KWh(mil. ) 2/

PSl (9 X 2,000) 18,000 - - 2,151 41.74 368 7.14 1,898 36.82 4,417 85.70

PS2 (9 X 2,000) 18,000 - - 2,151 41. 74 368 7.14 1,898 36.82 4,417 85.70

PS3 (8 X 2,000) 16,000 - - 2,157 35.06 368 5.98 1,905 30.96 4,430 72.00

PS4 (5 X 3,200) 16,000 - - 2,143 30.82 368 5.29 1,890 27.19 4,401 63.30

PSS (5 X 3,200) 16,000 :.. - 1. 967 28.29 368 5.29 l. 705 24.52 4,040 58.10 TO!AL 84 000 - 177.65 30.84 156.31 364.80

Percentage - 48.7% 8.5'7. 42. 8"/. 1007.

1/ Excluding stand-by units. J../ Assuming 10'7. transmission and transformer losses and overall pump unit efficiency of 0.70.

FORM NO. 1527 (2-79)

THE WORLD BANK DECISION MEMORANDUM TRANSMITTAL SHEET

TO: Distribution

FROM, Hans-Eberhard KBppt , Chairperson, Decision Meeting

COUNTRY/PROJECT: EGYPT - New Lands Development Project

DATE OF ISSUES PAPER: ESTIMATED PROJECT COST:

February 22, 1980 Total $165 million

DATE OF DECISION MEETING: Foreign Exchange $90 million

March: 12, 1980 PROPOSED LOAN/CRt:DI, AMLIUN,: 1--S-C_H_E_D_U_L_E_D_Y_E_L_LO_W_C_O_V_E_R_D_A_T_E_: ___________ -i $80 million

1---------------------------1 May 30, 1980

SCHEDULED BOARD PRESENTATION DATE:

September 30, 1980

1. DECISIONS SOUGHT:

AMOUNT OF LOAN IN APPROVED LENDING PROGRAM:

$80 million AMOUNT AND SOURCE OF CO-FINANCING:

$10 million AfDB

The economic rate of return of the project is still being worked out and because earlier estimates indicated a low rate of return, possibly below 10 percent, it was decided to postpone the final recommendation on the continued processing of the project until an estimate could be made. In the beginning of April we will send a note to management reporting on the economic rate of return. Pending decision on this issue, agreement was reached on all the recommendations of the issues paper. Potentially troublesome issues to be negotiated are the establishment of an adequate implementation mechanism and agreement on amount and basis of cost recovery.

2. SPECIAL FEATURES:

The proposed project is the Bank's first involvement in new land development in Egypt, and although economic rates of return may be higher in other agricultural sub-sectors, we believe the currently very limited land area. in Egypt, in face of a high population growth rate, argue strongly for supporting Egypt's policy to develop new agricultural land areas and to try to help them improve substantially on their past efforts.

.,...Jf lfl DISTRIBUTION 1. Mr. Stern, VPO, through RVP (initia/)_Vfi ____ v ____ (3 copies with Issues Paper and Pro·ect Brief)

2. Standard Distribution:

TO:

FROM :

SUBJECT:

WORLD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM See Distribution ,

Hans-Eberhard Ktlpp ~ l ivision Chief, EMlA

EGYPT: New Land D~ opment Project Decision Memorandum (Interim)

DATE March 19, 1980

1. A Decision Meeting was held on March 12, 1980, to discuss the New Land Development Project Issues Paper of February 22, 1980. The meeting was chaired by me. The following attended: Messrs. Naylor, Bose, Monteith, Economides, Donovan (EMENA Agriculture Projects, Division IV); Shoesmith (Consultant); Rotes (Agriculture and Rural Development Department); Hume (EMENA Projects); and Bhattacharya and Swayze (EMENA CPl). All the mission's recommendations were accepted, except for a few suggested modifications, which are included in the following report on the meeting. However, it was decided not to proceed with a final recommendation to proceed with the processing of the project until further work on the economic rate of return could be reviewed (see para. 3 below).

Project Description and Size (Paras. 3-5 of Issues Paper)

2. The size of the project area has been reduced by one-half, from 48,000 feddans to 24,000 feddans net irrigated area. The Projects Department confirmed that the primary reasons for reducing the size were technical and managerial. The mission believed the previously proposed area was too large, requiring an implementation period of at least eight years and making the project activities even more difficult to organize, coordinate and impelement. The recom­mended project size of 24,000 feddans, with an implementation period of about 6 years, would be sufficiently small to ease manage­ment and implementation problems but large enough to be economical. The Government has agreed to this scaling-down of the project.

Economic Rate of Return (Para. 6 of Issues Paper)

3. The economic rate of return for the project is being worked out. Since previous estimates indicated the economic rate of return might be low (possibly even below 10 percent), it was decided to postpone the final recommendation on the continued processing of the proposed project until an estimate could be made. The mission agreed to give this work highest priority and to provide as soon as possible a preliminary but reasonably accurate estimate with a note describing the main assumptions on which the estimate is based. Because an important component in the financial cost is the cost of energy, it was also agreed to use economic energy cost data provided by the Power and Energy Division. These calculations should be ready by the first week of April. When this work is completed, we will review the rate of return, the key assumptions used, and the major non­quantified project benefits and send a final recommendation on the project to management based on this review.

See Distribution - 2 - March 19, 1980

Water Supply for Irrigation (Para. 7 of Issues Paper)

4. The mission acknowledged that the Egyptians had not yet taken any steps to reconstruct and repair the Nasr Canal; and, therefore, it would be unrealistic to expect an award to be made by the time of Board presentation. It was agreed, however, that before the project was presented to the Board, the Government would have to agree on an approach to the work satisfactory to the Bank and to have 1nvited bids. The award of the repair work on the Nasr Canal would be a condition of credit/loan effectiveness .

Processing Plants and Cropping Patterns (Paras. 9 and 10)

5. It was agreed that the mission would examine alternate cropping patterns that would not require a substantial investment in processing plants, as well as patterns requiring processing. With regard to the farmers' selection of crops, the Bank, in principle, would not want the Government to force any particular crop or cropping pattern on the individual farmer. The mission, in particular, is concerned that the Government might compel the farmers in the area to grow a substantial quantity of sugar beet while keeping beet prices as low as possible. In advocating freedom for farmers to select crops, we would, of course, favor a constructive use of the price mechanism to encourage farmers to grow certain crops. This would be the Bank's position at negotiations. We should be prepared, however, to agree to the Government determining partially the cropping pattern, provided this would not force the farmers to grow crops priced at artificially low levels.

Coordination of Project Agencies and Local Government (Paras. 8 and 15)

6. It was recognized that project implementation, including agency coordination, was an important issue. The mission proposes that the project be executed by a project implementation unit supervised by the Ministry of Land Reclamation, supported by a special coordination commitee at the central government and an advisory committee at the local level. In time, t he project implementation unit might be capable of accepting responsibility for a larger project area. Recommendations for t he local government advisory committees would take into account government plans for local government in the area. Agreement on the establishment of these various groups would be a subj ect of negotiations.

Cooperative Organization (Para. 11)

7. The mission said the development of a new system of cooperation among farmers would be an important aim of the project. Inputs could be provided by the private sector and informal associations could be estab­lished for marketing. There was some question, however, whether, by law, the existing (and troubled) cooperative structure would have to be introduced in the new land area. It was agreed that we needed to clarify the legal status of the existing cooperative law in the new land area.

See Distribution - 3 - March 19, 1980

It was also agreed that it would be useful to propose the introduction in the project area of an informal and more effective cooperative system for inputs and marketing.

Cost Recovery (Para. 13)

8. The Government has never accepted the principle of paying irrigation operation and maintenance (0 and M) costs. Under a drainage project the issue has been discussed and the Government has agreed to study the capacity of the farmers to pay for agricultural services. Whereas it would not be appropriate to use this project to negotiate a reversal of Government policy, it was agreed we should determine the settlers capacity to pay and then negotiate with the Government for which costs and in what proportions this money would be used (capital, interest, and O and M). In our negotiations with the Government we should, however, stress the principle that farmers should first cover O and M costs in a manner that relates in an appropriate way to the amount of water used.

Lending Rates and Loan Security (Para. 14)

9. The mission explained that commercial rates of interest would probably be charged in most cases, except perhaps for a small share of project credit allocated for the purchase of productive animals. It was agreed, consistent with the objective of the recent agroindustries project, to encourage PBDAC to be more liberal in the type of collateral accepted for medium-term loans.

Assistance for Bedouins

10. The Bank has asked the Ministry of Land Reclamation to study the situation of the Bedouins living in the proposed project area. It was agreed that the completion of this survey and the submission to the Bank of the Ministry's proposals for compensation and integration of the Bedouins into the project would be a condition of negotiations.

Cleared with & cc: Messrs. Bose, Economides, Donovan, Monteith (EMP)

cc: Messrs. Stern (3)(VPO); Benjenk, Dubey, Richardson (EMNVP); Karaosmanoglu/Ms. Schaeffer, Maiss, Bhattacharya (EMl); Knox, Haynes, Hume, K. Jones, ffrench-Mullen, Merghoub, Ritchie, Khorana, Naylor (EMP); Willoughby (2)(TWT); Rajagopalan (3)(PAS); Yudelman (5)(AGR); Chittleburgh (EDO); Abu-Akeel (2)(LEG); Hakim (CTR)

~ ze:bp

TO: - I

FROM:

SUBJECT:

· ---~· -....... _

(

ORLO BANK / INTER rJ ATIONAL FINAN CE COF lATION

OFFICE MEMORANDUM Files

Towns~. Swayze, Loan Officer, EMlA

EGYPT: Tahal Consulting Engineers Ismailia New Land Development Proposal

DATE: March 17, 1980

1. On March 14, 1980, Mr. Bart and I met with representatives of the Tahal Consulting Engineers (Mr. Ben Ezra, Vice President, and Messrs. Telig, Danin and Shanon) and of the USDA ("Mell" Davis, Special Assistant to the Undersecretary). This meeting was a follow­up to a February visit to Mr. Bart, at a time when he was acting for Mr. Benjenk.

2. Mr. Ezra summarized the highlights of their recently com-pleted study of a proposed 500,000 feddan land reclamation project near Ismailia and which includes a preliminary estimate of the

· internal rate of return for an agricultural section within the project area. They have discussed the project proposal with President Sadat, who indicated he would like publicly to announce the project this March 26, one year after the signing of the peace treaty, citing it as a major activity resulting from peace with Israel.

3. Mr. Ezra urged the Bank to participate in the project, initially by providing some start up funding for consultant studies and eventually to help finance and coordinate foreign assistance for the project, which he estimates could be phased over a 5-7 year period costing an estimated $150 mil~ion per year. Some $10 million is initially needed, he said, for resource base and preliminary engineering studies.

4. Mr. Bart thanked the group for meeting informally with us and expressed full support of the general objective of promoting cooperative activities between the two countries. He said that we would, of course, consider the project propo;al carefully if we are asked by the Government of Egypt. He indicated, however, that our lending program was relatively small and -determined by economic priorities, and that such a large project, involving extensive syndication, would require very careful consideration by the Bank. Mr. Ezra refered to the possibility of using the Bank's project prepa­ration facility to help initiate the proposed studies; Hr. Bart pointed out that this money ~as not available for pre-feasibility work.

cc: Messrs. Bart (E}~); Karaosmanoglu, K8pp (EMl); Naylor, Econonidcs /Donovan (E~W )

TSwayze:bp

n~ULG L§ Consultants Ltd. International Consultants in Agriculture and the Agro-industries

PJG/JR

7th March 1980

Mr. P. Economides, EMENA IV Projects, The World Bank, 1818 H Street NW, WASHINGTON DC 20433, United States of America.

Dear Paris,

2 Church Street Warwick CV34 4AJ England Telephone. Warwick (09261496121 Telex: 31565 ULG G Cables CONAG WARWICK

- --· ----------------------- ------~ .J 0.!"I ;-->n 11 re,:1

?ro1ect Sn ~ T~fnrr a~·

~j j/ Name 'F_~.7..-_] 1 --------------I r.,nsn/CretH No ____ __ :

EGYPT: WEST NUBARIYA EXTENSION PROJECT APPRAISAL

Directors: J . L. Gould (Chairman) P. J . Goddard (Managing I W. H. J. Saunders G. W. J. Almond J . P. Bedford J . R. Dorrell M . J.Rayner D. J. Moffatt J. A. Semple

I much appreciated the time we spent together in Washington last week discussing the progress of your recent Appraisal of the Project, and would like to express my appreciation of the discussions with Mr. Naylor and Nigel Monteith.

In the light of the modifications and your programme for future events, we are now costing the technical services team, comprising subject matter specialists, who would be responsible for the reclamation of a further 100 feddans on which the Training and Demonst ration Farm would be established as from early 1981 . The SMS team would also manage the existing Research and Trials Site in conjunction with counterparts, as was agreed. I shall be progressing with GOE its application to the Bank for offshore cost financing of the existing Trials Programme under the PPF facility, and within the unallocated balance of US $140,000.

I have already talked to ODA, which is in favour of this solution as a bridge between the end of August - when the ODA financing ends - and the beginning of January when the World Bank loan agreement with the GOE is expected to become effective. I shall then talk to ARAD early in April, by which time you will have had an opportunity to comment on our cost estimates both for the last 4 months of 1980 and for the ensuing programme. Dai Lloyd will be bringing these financial proposals with him when he visits you i.n Washington on Monday, March 24th .

Dai Lloyd is currently in Egypt on the Halcrow-ULG Detailed Design Study for the First Year's Works, discussions on which will be the main object of his mission to Washington: I have asked him to telex you confirming his arrival for about 3 days starting Sunday, March 23rd.

2/ ...

Registered in England Registration No. 622216 Registered Office: 2 Church Street, Warwick

RECEIVED 1980 HAR 13 PH i2: 36

,NCOMING MAIL UN1 T

2 -

I shall be grateful if you would mention to Bill Peters my dis­appointment at not seeing him during my visit as he told me he wished to discuss one or two soils points last Friday. Having failed to contact him before I left for London I have subsequently learnt from his office that he is abroad on mission. If you know what these queries are, please let me have then so that we can have the answers on his return.

With best wishes,

Yours sincerely,

P.J. GODDARD

P.S. I am enclosing a copy of this letter should you wish to pass it to Mr. Naylor - with my compliments.

SIR WILLIAM HALCROW & PARTNERS THE QUEEN'S AWARD THt QUEEN'S AWARD

FOR EXPORT FOR EXPORT

CONSULTING ENGINEERS & ARCHITECTS ACHIEVEMENT ACHIEVEMENT

VINEYARD HOUSE 44 BROOK G REEN LONDON W67BY HEAD OFFICE : NEWCOMBE HOUSE 45 NOTTING H ILL GATE LONDON WI I JJX

TELEPHONE 01-603 3371 CABLES PROPULSION LONDON TELEX 916148 (A/ 8 HALPRO G)

OUR REF. WL/NSD/CONF YOUR REF.

*

PARTNERS:

Mr. P. Economides, Irrigation Engineer, Agriculture Division IV, Europe, Middle East & No rth Africa Regio n, The World Bank, 1818 H Street, Washington DC 20433, U.S.A.

Dear Mr. Economides,

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EGYPT: NUBARIYAH SETTLEMENT DESIGN PROJECT

Enclosed f ~ i~~ation are two Progress Report to ARAD in respect of

copies o f our first Mo nthly the design wo rk for Phase I

o f the above project.

The work is proceeding reasonably well. You will see that we are proposing to amend the area selected for detailed design (Phase I 7200 feddan net) in order to avoid the uncertainties involved in the area bordering the Maryut arm and occupied b y squat ters; the same area is at present without mapping. There seems to be no alternative but to avoid this area if we are to complete our detailed wo rk to programme .

I have also given further thought to the link canal required to supply additional irrigational water to the Maryut Farm. In many ways it would be easier if this link were completely separate from but I think t his wou ld b e t h e wrong t e clm!ecr:: so u t:_i_o_n_ a_n~ ~ ·~ ~ ~- r s appropriate to take the supply from the nearest main canal within our project. There will need to be s ome understanding with ARAD since any additional capital co st involved would presumably not be funded by t h e World Bank. I expect to discuss this further with ARAD i n the next 2 or 3 days.

I am, in fact, leaving f o r Egypt now in o rder t o deliver the report and discuss the issues raised therein. Whilst in Egypt I shall also be involved in c o nsultatio n with EPAD in the adjudication o f the tenders o f the Nubaria Main Drain. It appears that this will occupy me until the end o f next week. In the following week I would receive a thorough

A . M . MUIR WOOD, MA .DSC. FENG . nCE N. J . COCHRANE. 8SC, Flet E. J . 0 . MANSAELD ... itlBA W. R. BRIGGS. esc. ACE A . C. LYONS, s sc. ACI. R. G. TAYLOR. ssc. ACE

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F. A. SHARMAN . BSC. ACE 8 . K. HARTSHORNE. MA . MSC, 1-lCE

(Joint Sec) R. W. ROTHWELL, MA . ACE

PRINCIPAL H. K. ARNOLD, esc. PHO. AO:. S. BLACKFORD. MA. 1-1n A. I. ROBERTSON esc. ACl:. R. S. GRAY. FICE

B. S. BOND KIBA W. ROYLE, BSC ACE A . R. HARDY, An

D. E. CROOK. BSC. 1-lCE T. D. CASEY. MA. ACE

V. J . W. HOAD. 08E. 11SC. 1-lCE R. M. DARGIE. e sc. 1-ice

(Joint Sec.) A. C. CADWALLADER. BA ASSOCIATES: C. MELLOR. a sc 1-1cE M. S. A.ETCHER .MSC. ACE

ASSOCIATES: C. J . ANTO NA KIS, a sc. 1-1CE D. G . LLOYD, KSC. ACE J . B. DAVIDSON , asc. ACE P. A . S. FERGUSON. MA. SM. MICE I. C . PRICE. t-lCE. R.s

CONSULTANTS: W. H. COOPER. ssc. nn

R. F. CAMACHO. MBE. It SC. ACE F. H. RUSSELL, KSC. ACE G. w. HOWELL. MM . RIKA W. C. GALLAGHER. ACE

E. B. WILSON . a sc. ACE

J . B. DALMAN , 8 sc. PHO. ACE L SUMMERS, BSC, ACE H. G. JOHNSON , e sc. 1-1n R. B. SINCLAIR. ssc. ACE

H. RIDEHALGH. CltE. ACE

E. M. GQSSCHALK. MA. ACE 0. E. WILL. Rl8A A. s. LARGE. MICE N. A. TRENTER. MSC. MIGEOL

PETER A. scorr. B SC. 1-lCE

P. G. BURGESS, AHE J . E. CL! FFORD. H SC. ACE

L-0. R. STIGELL. D. BUCKLEY, MICE

C. M. ROBERTS. ACE

;980 MAR -6 P/1 2: 2 7

INCOf'1 /N(i hA/L UN/T

Mr. P. Economides World Bank

2.

briefing on the progress with the Phase I design work and with the fuller estimates of cost that we hope to have by that time. If suitable for you I would propose travelling to Washington on the 22nd/23rd March so as to start work with you on Monday 24th. Perhaps you would l et me know if this will b e convenient .

Yours sincerely,

D.G. LLOYD

Enc: *

BE Tawfiq Hamed Kararah Minister of Land Reclamation Cairo, Egypt

Dear Mr. Minister:

March 3, 1980

I was grateful for the opportunity of meeting Your Excellency in your office on February 6 and of discussing areas of mutual interest between Your Ministry and the World Bank.

I appreciated hearing at first hand the very high priority which the Government is giving to bringing new land into cultivation and the various methods you have adopted to do this as quickly as possible. 11le World Bank is glad to have the opportunity to join in this work with you. We very much hope that the project we have just appraised will prove to be economically viable and serve as a pilot for settlement of other new areas in future.

We look forward to a perio~ of fruitful cooperation with you.

• i

PNaylorJvfd '-cc: Mr. Samir Koraiem

·. Ministry of tconomy ... ~:.: :i

Cairo , Egypt

Mr. K8pp E?-0.A

""

Yours sincerely,

A. David Knox Director

Projects Department F.urope, Middle F.ast and

North Africa Region

..,· ·-

Record Ren,oval Notice The World Bank Group

Archives & Records Management

File Title Barcode No. New Land Development Project - Egypt, Arab Republic of - Credit 1083 - P005028 - Correspondence -Volume 3

Document Date

29 February, 1980 Correspondents / Participants

To: Franz Heidhues, EMENA Project IV From: Annear, Acountant

Subject / Title

Document Type

Telex

Egypt, Nubariya Extension detailed design contract I

Exception(s) Financial Information iv

Additional Comments

901230

The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group.

Withdrawn by

April Miller

Date

July 01, 2010

Archives 01 (March 2017)

TO:

FROM:

SUBJECT:

WORLD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM See Distribution Below DA TE February 28, 19 80

Townsend~ayze, Acting Division Chief,

EGYPT: Ne~Lands Development Project

EMlDA

Decision Meeting

At 10 a.m. on Wednesday, March 12, 1980, in Room C710, there will be a Decision Meeting on the issues of the proposed New Lands Development Project; see February 22 Issues Paper.

Distribution: Messrs. Benjenk, Dubey, Richardson (EMNVP); Karaosmanoglu/Ms. Schaeffer,

TSwayze:bp

Messrs. Maiss, K8pp, Bhattacharya (EM!); Knox, Haynes, Hume, K. Jones, ffrench-Mullen, Merghoub, Ritchie, Khorana (EMP); Willoughby (2) (TWT); Rajagopalan (8) (PAS); Yudelman (S)(AGR); Chittleburgh (EDC); Abu-Akeel (2)(LEG); Hakim (CTR)

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WORLD BANK/ INTEflNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM Mr. David Hai11es, Assistant

t:I, /(\ ( , Director, EMP DATE : February 25, 1980

Peter Naylor,· ··C'l'lief, D!PA4 l v-

EGYPT: Back-to-Office Report on Management Travel

1. In accordance with my terms of reference dated January 25, 1980, T visited Egypt from January 29 to February 19.

2. During the first part of the mission I participated in the final meetings of the joint Bank/USAID/Colorado State miss ion led by Mr. Hates reviewing irrigation rehabilitation/modernization prospects. After their departure I continued to coordina te the reactions of USAID, the Water Master Plan and the Ministry of Irrigat ion. The mission's Back-to-Office Report of February 6, 1980 has described its findings.

:..

It is difficult to appreciate from this report, however, how significant the mission has been in strengthening our relationship with the Ministry of Irrigation. This became clear after the mission left. It has resulted in the following four developments:

(i) convincing the Minister of Irrigation that the Water Master Plan has a major operational role to play within his Ministry, leading to an assurance to Mr. K.."1ox that he would · establish it as a permanent planning agency soon;

(ii) :tn USAID urging the Ninister to strengthen the Water Master Plan during the next two years and offerring to supplement UNDP funds until the next IPF cycle begins in 1982;

(iii) in the Minister accepting the need for additional technical assistance for the Irrigation Ministry, particularly in project planning and evaluation (to be placed initially under the Water Master Plan), and in system management, operation and maintenance; and

(iv) in soliciting an official request to the Bank to take the lead in establishing an international panel to advise the government on the rehabilitation and/or reconstruction of the three Upper Egypt barrages.

These developments helped to make the annual Tripartite meeting of lIKDP, the Bank and the Ministry of Irrigation on the Hater Master Plan a fruitful one. Preliminary agreement had already been reached at the Technical Advisory Commi tt ee meeting in December 1979 tha t a "Bridging Operation" was needed to finance t\W advisers after the departure of the ptes·ent-'·group ·{n s-~p'i:cmbt:r 19So' and the start of a Phnse II rrojcct in 19$2. The Tri?artitc meeting confirmed the commitment of the Minister nnd llNDP to this Bdd1;ing Opcr :i tion .:rnd to the concept of a Phase II project with the B.:111k rcm:1 ini ng as L,ecu ting ,\gcncy. Full .:1grecmcn t on the fi1unl~in ,: .,rr:,n )':c r.i t' nts , otht' r tl: :1 11 fi:1.11 c0nfin1:1ti 0n fn,m l'~:TH' l\ t ' \,' Ylw k , \,·.1s al so rcadit:d . l' S,\lD p.ll"ticip:it,~J in th,~ llll'Cti.ng ~rnd ;q•,rt' t'd in principle

(C0nt:'d)

Mr. David Haynes -2- February 25, 1980

to supply at least one and probably two advisers to the project for the duration of the Bridging Operation. Detailed discussions were underway at the time of my departure between USAID and the Minister on the exact amount of their contribution. The final report of the project is on schedule and the first draft will be available in the Bank at the end of September. It is planned to have a joint final review with the Government in February 1981 with publication around the ~nd of March 1981.

3. I participated in some of the final meetings of the New Lands appraisa l mission. Mission findings are reviewed in the Iss~~ '{dated Februa?y'-22, 1980). I had expected to .become involved in discus­sions with possible cofinanciers since there is a foreign exchange gap of !§9- million. It became clear, however, that the Government had made no new efforts to find additional financing and no such discussions were needed. The African Development Bank met the mission and said that the may partic.1pa e an , o Commonweal th Develo ment "Corporation in London . n eccm er, some 1. ssion and expressed cautiou~ interest in cofinancing. They will only decide when they have an opportunity to review the mission's report. Shortage of cofinancing will mean a smaller project than envisaged by the Government ; even a reduced project, however, will tax Government implementation capacity to the full and I do not believe the Bank should make any further attempt to find other cofinanciers.

4. Mr. Knox arrived in Egypt on February 4, and I accompanied him to meetings with the :Ministers of Land Reclamation, Irrigation and Agriculture, and to the Water Master Plan Tripartite meeting . We also made field visits to the Aswan and Minia Governorates and to the Nubariya Seed Farm. The meeting with the Minister of Land Reclamation was a wide­ranging policy discussion, with the Minister stressing the critical importance to Egypt of expanding the cultivated area by reclaiming new lands and Mr. Knox questioning the need for large-scale subsidies to implement this program. The meeting with the Hinister of Irrigation was more closely focussed o.i. the findings of Mr. Rotes' mission and the growing role of the Bank in irrigation development in Egypt (as opposed to mainly drainage hitherto). The Minister requested Bank help in assessing the feasibility of expanding irrigation along the northeast coast from the proposed Es­Salaam canal. t\'e agreed that the Bank would be prepared to review any feasibility studies of this proposal and possibly to finance its construction if ~his appeared economically justified.

5. The meeting with the Minister of Agriculture was less satisfactory with ir.ost of the discussion centering around the problems of the ~iY<L. Se£'d Farm, and the Minister gr.,du;1lly retre>ating from his initial position ffi.:i t tlwre were only tdnor problems to admitting at the end that there was a major management probl~m. The :!inistcr had no sug ges tions ho\, t0 d£'al

Mr. David Haynes -3- February 25, 1980

with this. There was virtually no time for Mr. Knox to raise with the Minister the numerous critical problems of the Agricultural Development (Sohag-Menufiya) Project. Although Dr. El Hossary~ Project Co~~bsequent discussion with Mr. Knox, none of the outstanding issues could be raised, let alone discussed. I had some subsequent discussions on both projects. On the first, I agreed with Dr. Wally, the Minister's adviser on foreign aid, that the Bank would send a two man mission to help them prepare a new management plan for the seed farm. Nothing was agreed on the Sohag-Menufiya Project. A l etter has been sent to the Minister 9f Agriculture on these discussions. (copy attached)

Attachment PN/vfd cc: Messrs: Benjenk, · Dubey, Finzi (EMNVP); Karaosmanoglu, KHpp, Swayze,

Imam (EMl); Knox, Haynes, K. Jones, ffrench-Mullen, Merghoub, Ritchie, Khorana, Hodges, Economides, Donovan, Monteith, Bose, Zulfiqar, Schwenneker (EHP); Rajagopalan (3)(PAS), Yudelman (3)(AGR), Chittleburgh (EDO), Abu-Akeel (LEG), Hakim (CTR), Subramanian (CTR), Robless (PAB), Hassan, (LEG), Jones (CTR), M. Smith (IRD)

Mesdames: Schaeffer, Petras, Dell Minshall

i i

I

11. E. 1-::0hamcd Halmoud Daoud Minis ter of ~griculture Cairo, ~gypt

Your Excellency:

F~bruary 22, 1930

At the nectiog tirn.t you had with }'!r. Knox on Februa ry 16 in your office, you asked n:e to reµor.t b~ck to you on l"Wo r..attera. The first concerned a1rni~t:mce frm;1 t':1e Bank to help the. N:.1bariya Seed Production Conpouy

, prcpare·a~upuatcd Eanar,cccnt plan. The second concerned my discussions about the ~gricultural Devcd~opncnt (Sohag-!"!enufiy{l) Project.

I gre~tly regret th.1.t tioe did not allow 1:e to t.!eet you n~nin before my departure cun to your cor;1oi t~entn in the People:::' As.aenbly, particul.::i.rly because this r.:ennt I .-;as unable to hc.:ir your vict.·~ on the points rainecl in my letter to you of January 25 about the Sohag-!'kinufiyn Project. I am, therefore, reporting to you by this letter.

• As rc~~.irds the ifob.ariya S\?e<l F~rm. I ar-;rcid with Dr. Wally and Hr. Shabana that the ·nnnk would send a revict: misnion to work with :·:nbaseed

·an<l LLG in the preparation of an up<lat~d plan. Tha nission would consist of an c;<pcrt i n t he n:.a.nage!::cnt of seed far::.is .and a financial planner. I uill locate these pcoyle as soon ns possible and send them at a nutually convenient

As rer,ards t11c So}iaft"'~!cnufiy~ Project, I had so:r.e lonr; discusnions lvith Dr. El }!os r, ary a.>1d now bet tcr apprccia te tha t :ie has been nblc to 2.1.i-:c significant pro~rcss in somQ areas, ouch as in the establishment of the trial fares for nc .:~nni1..:it io:1 in Soha6 anJ :·:~nufiya Govei'"r.oratcs, and in the procure.:1e:nt of trnc.tors a:1d phmnin~ t!:ie relatcJ wiintennncc fllcilities. I wns al so pleased to h:,arn of the 1:.easurc3 t:a!~en in tr.:linins thoi:rn who \,ill ba rcsporuiil.,lc for ruu!ling tr3ining courses for tr .. ctor driv1.,ro aud c~tcnnion vorkc.rg . Your i:xccl l.cncy 's mm step in ~skin~ Hr. El Salhy to rcvic~ the extc11Edou co::.;::,om:.nt of tnc project, nud pr.oposo how it could be i:nplct:icnted mora quickly, iu also appreciated. ..

llo\..'CVt?r, none of t:iy <liocusaions basically nltcrcd the views I cx;,r.c~scJ in ,:iy lc!tt1)r of J,rnunry 25. ~!J1 concct·ns about tho funduncntnl problt' t::!> of proj e ct r.1:maf f'.r.Pn t, c0C"1rdi.n11ti.on nnd l"} ('Ci e ion-r.iakins·. 8till rccud.n aft e r r.:y viai t. ', !0. 1:.i1:lll Le gr.1 tc(ul for yout." t ·)11a iJera tion o( th~su problcns, as su1nari zc <l in cy letter . In r~rticular. your Jccision ou project

I (Cont'd)

...

I'

cc: Messrs. Hing, Schwenneker, Bose, Zulfiqar (EMP), Kopp/Swayze (EMl)

H.E. Mohamed lfafonoud Daoud

(Cont'd) '• . .

""'. 2 ..:. February 22, 1980

management would be very critical, in my 9pinion, in i~plcmenting this project successfull y. Whatever you decide is appropria te, ho~evcr, ve also feel it vital that Dr. El Ilossa ry's key role in the proj ect is not diminished in any wny.

I n spite of ny long t a l ks with Dr. El Hossnry, I am unclear why d~cisions about a number of key project issues have not been t a ken althoueh there have been regular oeetinbs of the CCC. Two matters are of grea t concern. 'i'he first is tha t of t he appointment of Professor Kholi as full-time consultau t for the IIonitoring and Evalua tion 'Gnit. Th i s is a key appoinbent because this is an experimenta l project nn<l only throu2h careful evaluatiou can its irapact be meas ured and objectives achieved. The Bank approved this a.ppointrncnt in Septemb er 1979. In a meeting in October 1979, Dr. Wally told me he dQubt;ed if Profes sor Kholi would be nvailable full-til!!e nnd I a!7ee<l tha t, if so, the- project wo:.ild still benefit from his advice on a part-time .basis and urged t hat iw then be suppor ted by another econonetr ician of equivalent calibre so that full- ti!:le support to the Unit was available for at least a year. I now understan<l that Prof. Kholi is likely to be available for a year. I am disaµpointed to learn that no appointr:Kmt ha.s yet been made and that the baseline survey beinr, carried out by the Honitorins and Evaluation ~:1it thus remains unanalyzed.

A second instance is that of the appointmen t of Dr. Geor~e Bassili os consul t a r. t for the machinery tria l fa r::nn . The Da nk approved this in Decemb er 1979, but I was infon,ed on my visit t hat his contract was still not

·approved by the project. There are in acd_i tion a nunber of other important co·nsultants for which no names have yet been submitted to the Bank.

'- , As rccards the I:!atter of. the distributio...'1 of tractors to cooperatives,

..

I dicl have so1:ie useful discussious and will be writing to you further on this subject. ~

• I woulcl also like to take this opportunity to tha.nk Your Excellency

for your kindness in s e e ing us, for your liospitulity and for the excellent assistllnce we r ece ived fro::i your Foreii.~n Rela tions Dcpa rt.;-,cnt in making arrangc~cnts for our vnrious vis its, particularly for the untiring help of Hr. Esam Afif i.

'\.

In vim, of his interest in the project, I am sending n copy of this letter to Hr. Snmir l~oraicra.

. I .: :_. --.. . jl :- ,, v

,:., - _t ,, ,.

Sincerely yours,

Peter F.. !faylor Chief. /\~ricul turc f'ivi s ion IV

Europe, :lid<l l~ r.-u, t nnd l'orth Africa Rc;.;ion Proj ec ts Dcp a rtncnt

... cc: Hr. l:oraicm , H:f.ntntry of Ec:onomy, C.,iro, l:p,ypt

I

THE WOR LO BANK .. FOAM NO. 1527 (2-79) DECISION MEMORANDUM TRANSMITTAL SHEET

TO: Distribution

FROM: Hans-Eberhard K8ppfl, , Chairperson, Decision Meeting

COUNTRY/PROJECT: EGYPT - New Lands Development Project

DATE OF ISSUES PAPER: ESTIMATED PROJECT COST:

February 22, 1980 \ Total $165.million

DATE OF DECISION MEETING: Foreign Exchange $90 million

March 12, 1980 PROPOSED LOAN/CREDIT AMUUN I:

SCHEDULED YELLOW COVER DATE: $80 million

May 30, 1980 AMOUNT OF LOAN IN APPROVED LENDING PROGRAM:

$80 million SCHEDULED BOARD PRESENTATION DATE: AMOUNT AND SOURCE OF CO-FINANCING:

September 30, 1980 $10 million AfDB

•• DECISIONS SOUGHT:

The economic rate of return of the project is still being worked out and because earlier estimates indicated a low rate of return, possibly below 10 percent, it was decided to postpone the final recoII1II1endation on the continued processing of the project until an estimate could be made. In the beginning of April we will send a note to management reporting on the economic rate of return. Pending decision on this issue, agreement was reached on all the recommendations of the issues paper. Potentially troublesome issues to be neg.otiated are the establishment of an adequate implementation mechanism and agreement on amount and basis of cost recovery.

:WECIAL FEATURES:

The proposed project is the Bank's first involvement· in new land development in Egypt, and although eccnomic rates of return may be higher in other agricultural sub-sectors, we believe the currently very limited land area_

- in Egypt:, in face of a high population growth rate, argue strongly forsupporting Egypt's policy to develop new agricultural land areas and totry to help them improve substantially on their past efforts.

OISTRIBUTiON

1. Mr. Stern, VPO, through RVP (initial) ________ (3 copies with Issues PiJper and Project Brief)

2. Standilrd Distribution: ..

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WOR LD BANK / INTERNATI ONAL FINANC E CORPOR ATI ON

OFFICE· MEMORANOUrv1

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£6'i- Wo:le~ \\\a54tc.~""'- y,; -€GT- Ru,~-a-9._ Dev.

/ J:::GT- ~ ~ ~v •

Mr. Hans-Eberhard K8pp, Division Chief, E}UA

Tow~S. Swayze, Loan Officer, EMlA

DATE February 22, 1980

EGYPT - Mostly Agriculture and Rural Development Back-to-Office Report

1. Following are some brief notes--largely about project prospects in the irrigation sector, the status of the rural develop­ment (ORDEV) proposal and comments on the current drainage program-­based on discussions held in Egypt from January 28 to February 8, 1980. During the trip, in addition -Eo~ ings-witn- Government officials, I discussed project activities with several Bank missions (working in the tourism, urban, agriculture, and population sectors) and joined Mr. Knox in a series of ministerial meetings. I also met with a number of AID personnel, continuing to coordinate and cooperate closely with their program and project activities. I spent one day in the Delta t:o visit field drainage works and the Nubariya drain project, and to pass by the first three pumping stations of the Nasr Canal and through the vacinity of the proposed new lands project. (See Annex I for a list of people met.)

Irrigation Sector Project Proposals

2. The joint Bank/AID technical mission to review irrigation rehabilitation and modernization has crystallized our thinking and resulted in broad agreement among AID, the Ministry, and the Bank on an AID/Bank assistance package for the irrigation sector. The following general project areas were discussed with AID and the Ministry of Irrigation . They cover the sectorts development priorities identified by the technical mission and should be treated as a tota l package of assistance in order to make sure the emphasis on institut i on building is not lost in the interest of pursuing a few large capi ta l projects.

(a) Planning and Its Link With Operations. The people and objectives of the Water Master Plan Proj ect should be fo rmally insti-

__..,,-- .~· . - . -· tutionalized and continue to prov1 e long r ange water res ource planning . Using the existing framework of this pl anning unit, it was recommende d that the group's economic analysis capacity be strengthened. AID mi gh t assist in providing add i tional technical assistance, and the Bank was already discussing "bridging" arrangements in order to continue funding for the technical assistance currently included under the pr oject. It was also agreed to explore the ex tent this planning group should bu i ld up its capacity to identify projects and assign technical priorities, and how best to link the planning work of the unit dire c t l y to pro gram and project operations, a s well as to r esearch. The r elat ed question was also r a ised o f how t o develop t he Minis try 's capacity t o des i gn projects and i mprove program budgeting , and whe t her thes e assistance requirements should (and could) i n some way be covered (at l eas t initially) by the Water Mas t e r Plan Proj ect.

Mr. Hans-Eberhard K8pp - 2 - Februa ry 22, 1980

(b) Operations and Maintenct' ce . Although this area needs to be further studied, it deserves high priori ty. The Ministry do e s not give sufficient attention (and financing) to maintaining current irrigation works. In addition, through improved distribution systems, much more effective and economical use can be made of existing water. Relatively little is known about where and how much water is distributed. One of the main problems is communications from one area of the irrigation system to another, and the measurement and control of on-farm water use. A high project priority would be to provide equipment (such as telemetry and communications) to accompany institutional improvement in the organiza­tion and management of operations. Also there are some sizeable needs for maintenance financing, but these proposals must be linked to a major effort to increase substantially budgetary support for maintenance and to strengthen the related institutional framework.

(c) Expanded Pilot Irrigation Systems and On-Farm Management Project. The work being done with USAID financing by Colorado State on farm irrigation design and management should be tested on a larger pilot project area to develop on-farm models that could be repeated. An area in Garbia in the Delta has been identified as a good possibility. Improvements in irrigation operations (such as measuring and flow control) could be incorporated in this project. It would also be important to use this project to help develop a more effective link between operations and research.

(d) Ni.le Barrages. Three barrages have already been identified for assistance: Esna, Naga Hamadi, and Assiut. Preliminary investigations of the most important of the three barrages, Esna, indicate the barrage may not need as much work as the Government believed. The Egyptians have agreed to appoint a high level international panel of experts to review existing reports on the barrages, to recommend further action, and to oversee project preparations. The Water Master Plan unit is reviewing the status of all the country's main barrages to identify other works that deserve innnediate attention.

3. The above subject areas appear to fall into three major project packages (a, c, and d). The remaining topic (c), operations and maintenance, should be incorporated into the other projects, but, in addition, it could make up a fourth project built on a number of lumpy investments related to improved maintenance. The area of operations and maintenance has been very much neglected in the past, and I believe it is important for the future development of the irrigation sector to make sure substantial institutional improvements are made. In these various projects we should also, of course, build in strong education and training components.

4. In a meeting with Mr. Knox, the Minister stated his support for the Water Master Plan Project concept, and he spoke of the possibility of transferring and in t egrating some othe r related activities in the Ministry to this unit. This is encouraging ; it is one of the first definite signs of the new Minister's support for i ntegrating the Water Maste r Plan unit into the Ministry.

r '

Mr. Hans-Eberhard KHpp - .3 - February 22, 1980

5. Follow-up of these project proposals should be coordinated closely with AID; the Minister looks to us to work out which of the proposed areas each donor would propose to assist. Much additional work still needs to be done to define how to strengthen selected institutional areas, such as maintenance; and, of course. all the capital project proposals still require feasibility studies.

Rural Development (ORDEV )

6. I believe we should no longer count on ORDEV to provide a project framework. In seeking a meeting with Vice Minister Zamzam, at Mr. Diffrawy's suggestion, I sent a letter reviewing the current status of discussions(see Annex 2). Subsequently Vice Minister Zamzam could not find time to see me but asked Mr. Diffrawy to respond. I ~nderstand from others that Mr. Diffrawy was very embarrassed that virtually nothing

+

had been done of what had been agreed to with Mr. Thoolen and this perhaps explained Mr. Zamzam's unwillingness to meet me. There is clearly no one in ORDEV who is working on a proposed project for the Bank. The official response was that a steering committee of experts had been formed to prepare and analyze the socioeconomic survey data which would provide the basis for our project. The s~eering committee is composed of Dr. Ghanzoury, the head of the Institute of National Planning (Chairman); Dr. Mourshedi , retired Undersecretary from the Ministry of Planning who heads up an economic working group; and Dr. Soliman Housein, Director of the Demographic Center and formerly a Minister of Counsellor Affairs, who heads up a social affairs working group. Dr. Ghanzoury was out of the country and I could not reach Dr. Mourshedi, but I discussed with Dr. Housein the work he was doing. He has several staff members and research students working part-time on the data, but his understanding (and his staff's capability) is very far from project preparation. They plan to produce a preliminary report by September/October 1980, presenting the data with some commentary . Mr. Diffrawf, more optimistic about the committee's timing and product, said that a draft strategy paper would be ready by the end of April and a final report in May.

7. I would propose that we continue to maintain contact with ORDEV, hoping at some point that the survey results will be available. Unfor­tunately, Mr. Zamzam does not want any assistance in analyzing the data; a formal offer from Cornell, which has an established working relationship with ORDEV, has already been turned down. Furthermore, Mr. Zamzam has been very sensitive about internal distribution of preliminary survey numbers. He also appears to have virtually discontinued Professor Selim's involvement in the work, which is unfortunate because the people now working with the material were not involved in the earlier phases of the study. I found Professor Selim very dispirited, not being able to play an active role in the final stages of the survey that he fathered.

8. While continuing to keep in touch with ORDEV and the progress on the survey, I suggest we now independently explore the possibility of working directly with one or two governorates. The Minister of Planning , Dr. Meguid, would probably be the best starting point, to identify governors and senior staff who would be most receptive to and capable of preparing and implementing a group of comprehensive markaz development projects. In

Mr. Hans-Eberhard K8pp - .4 - February 22, 1980

selecting prospective governorates, we would want to consider the advan­tages and disadvantages of working in governorates that already are actively involved in Bank and AID rural development related projects, such as Minya (Bank-rural development), Sharkia (AID-small farm production), Assiut (AID-small farm production), and governorates in which AID is initially concentrating its Basic Village Services Project.

Drainage Program--Status

9. According to their most recent report, in 1979 (under our projects), the Drainage Authority has completed 298,000 feddans of open drains compared to a mid-1979 target 1/ of 340,000, and 179,000 feddans of field drainage compared to the target J:./ of 270,000 feddans. The current target for 1980 is 460,000 feddans of open drains and 275,000 feddans of field drainage.

10. Once again the targets look very ambitious in light of the record of repeated shortfalls. The principal delays are caused by the field drainage work. The construction and remodeling of open drains continues to progress well but, although the development . of open drains is a pre­condition to field drains, open drainage should not get too far ahead of the installation of field drains. Thus the rate of progress of open drains is determined (and delayed) by the rate of development of field drainage.

11. In discussions with EPADP, I tried to isolate the overriding constraints in the field drainage program and what measures are being (and could be) taken to accelerate the program. The following factors emerged:

(a) Perhaps the most important problem is the limitations of the companies (predominantly public sector) which are contracted to do the work. They tend to be inefficient, poorly managed, subject to labor disputes, and in some areas have difficulty finding sufficient labor. Because most of them are public companies and all but one under other ministries, the Drainage Authority believes it can do very little to improve the situation. This year the Authority has, however, engaged two additional construction companies (repre~enting an estimated 20 percent boost in capacity) and has been able to pay higher wages which should alleviate the labor shortages experienced in Upper Egypt. In the past, the companies have also been hindered by deliveries, but virtually all the necessary equipment now appears to be in place.

(b) There is still no output from the three PVC factories, which has continued to contribute to delays in Upper Egypt. Finally, in 1980 all three factories should be working: Beni-Suef this month and the Assiut and Quena factories will be ready in March. Ii there are no unforeseen produc­tion problems, this output will give the program a push. In Lower Egypt, however, the EPADP is concerned that continued delays in establishing the KfW financed PVC factory will lead to some future program delays.

1:/ These were the targets at the time of our memorandum to Mr . McNamara in May 1979.

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Mr. Hans-Eberhard K8pp - ·s - February 22, 1980

(c) The problems of contractor delays have been exacerbated in Upper Egypt by the significant amount of land covered in cotton and sugarcane. If the contractor does not meet his proposed schedule, tile drainage installation damages the crops and the program is slowed during these period~ by farmer opposition.

(d) The Drainage Authority's budget allocations are often cited as a program constraint because of the significant shortfall from the amounts requested and required to meet the proposed targets. This year EPADP requested LE 128 million but was allocated only LE 80 million ( including LE 8 million for the Nubariya drain). In view of the problems cited above, however, at this time officials admitted this is probably all the money the Authority can realistically use. If work can be accel­erated, they were confident that the Ministry would accordingly increase their allocations. I am not clear whether there is a chicken and egg factor at work, in that payments may have to be committed in advance and if more money was available sooner perhaps, with a more aggressive program, more contractors could be engaged.

12 . Dr. Heggazi and partners will complete their report in a month and will then start to introduce the proposed cost accounting system .

13. The long awaited study of the ability of the farmers to pay for drainage does not appear to have yet started. This matter must be taken up with the new chair~an; the deputy chiarman (with whom I spoke) did not have any comments.

14 . Proposals for the continuation of the Nubariya drain to Lake Maryat are now being studied. The proposed loop will cost about LE 13 million and the tunnel alternative about LE 23 million. The relative costs and benefits will be studied over the next two months.

Family Planning : Program Implementation

15 . The Minister has worked out an organizational unit within his Ministry to implement the Bank population projects that appears to address past weaknesses, in particular the new organization should strengthen the Ministry's "software" program (see Annex 3). For the moment most procure­ment issues appear to have been sorted out; although the Minister continues t o be concerned about the possibility of delays because of Bank clearance procedures.

Energy Costs and Project Evaluation

16 . Increasing energy costs will, and should, of course, play an increasingly important role in project evaluation. The MIT/Cairo research team are exploring the very extensive indirect Government subsidies, such as the subsidized price used when the Ministry of Petroleum sells a ton of oil to the Ministry of Electricity; and the consequences that economic oil pricing would have on Egyptian industry. (Industry, for example, is now getting electricity for about 7 millimes compared to estimated costs ranging from 34 to 55 millimes.)

Mr. Hans-Eberhard K8pp - 6 - February 22, 1980

17. In order to evaluate our own project proposals, it is important to have an agreed Bank cost series, particularly for power. Probably the best independent series now available has been done by Weitzman (MIT) who has worked out the following marginal cost of energy in 1980 prices:

Voltage Levels

Very high voltage 220 and 132 kv

High voltage 66 and 33 kv

Medium voltage 11 kv

Low voltage

New Land Development

Millimes Per kwh

34

37

45

55

18. In his meeting with the Minister of Land Reclamation, Mr. Knox discussed the problems of increasing energy costs and the subsequent possible reduction in economic returns for project areas which require significant water lift. Even though there are general problems in under­standing the concepts of economic and financial rates of return, I believe the Ministry basically understands the potential problem energy costs pose for economic analysis of their projects. Nevertheless, there appears to be a strong tendency among many to consider the economic cost problems as academic and, partly perhaps through necessity, to resort to thinking primarily in terms of financial costs. AID has asked Leon Hesser and Carl Gotch (from the Pacific Consultants team) to hold a series of seminars with the Government on how to compute the various types of rates of return.

19. The African Development Bank has agreed to provide US$10 million of cofinancing for the New Land Development Project, to assist in covering part of the proposed bilharzia component. The Minister of Health, incidentally, was very pleased that a health component had been incorporated into the project from the beginning,and he hoped that health aspects of projects could be increasingly considered at the early stages of project design.

Attachments

+

cc: Messrs. Karaosmanoglu, Maiss (EMl); Naylor, Heidhues. Economides, Donovan, Rehman, Hodges (EMP); Thoolen, Schumacher (AGP), Messenger, Pratt, Diaz, Franckson (POP); Abu-Akeel (LEG); Dervis, Zaborski, Kaps (EMl)

TSwayze:bp

ANNEX 1 Page 1

EGYPT

PERSONS MET FOR DISCUSSIONS

1. Ministry of Economy, Fore i gn Trade and Economic Cooperation

Mr. Samir Koraiem

Ms. Fawkia Fouad

2. Ministry of Land Reclamation

H. E. Tawfiq Hamad Kararah

Dr. Anwar Rif ki

Undersecretary

Director, Agriculture Projects

Minister

Senior Advisor

3. Ministry of Irrigation (and Sudan Affairs) •

H. E. Mohammad Abdel Hadi Samah

H. E. Mohammad El Guindy

Eng. Mohammad Amin Mahklouf

Eng. Sarwat Famy

Eng. Ahmad Ali M. Darwesh

Eng. Ahmad Sawaf

Eng. George Elias

4. Ministry of Health

H. E. Dr. Mamdouh Kamel Gabr

Dr. Almatoz Billah Mobarak

5. Minister of Agr i culture

H. E. Dr. Mahmoud Mohanunad Daoud

Dr. Youssef Waly

Minister

Vice Minister

Senior Undersecretary, Projects and Land Reclamation

Co-Manager, Water Master Plan Project

Vice Chairman, Egyptian Public Authority for Drainage Projects (EPADP)

Director, Technical

EPADP~ Beheira Region

Minister

Undersecretary

" Minister

Senior Technical Advisor to the Minister

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.. ANNEX 1 Page 2

6. Ministry of State for Local Government

Mr. Ahmed F. El Diffrawy

Di. Imam Selim

Dr. Soliman Housein

Mr. Ahmed Afifi

7. USAID

Mr. Owen Cylke

~. Ralp~ J. Edwards

Mr. James Norris -

Mr. Marcus L. ·winter

Ms. Jennifer A. Brener

Mr. Neii A. Dimick

Mr. Ray Fort

Mr •. James Reese

Ms. Ann Fitzcharles

8. Consultants

Dr. Leon Hesser

Undersecretary, General Director of the Organization for Reconstruction Development of the Egyptian Village (ORDEV)

Consultant from the Institute of National Planning, who led ORDEV socioeconomic survey, and former Undersecretary, Ministry of Planning

Member of steering committee to prepare ORDEV survey material, and Director of the Demographic Center and Chief of Higher Council of Education

Temporarily assigned to Ministry

and

after returning from overseas assignment; formerly Mayor of Fayoum Markaz, in the Governorate of Fayoum •

Deputy Director

Chief, Agriculture Division

Senior Economist

Agriculture Division

Agriculture Division

Agriculture Division

Agriculture Division

Demographer, Population Division

Social and Rural Development Division

Pacific Consultants, Leader New Land Development .Team (USAID contact)

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Dr. Atil Osman

Dr. Henry Bruton

ANNEX l Page 3

Member Pacific Consultant's Team

Senior Economic Consultant, Ministry ·of Economy, Foreign Trade and Economic Cooperation (Ford Foundation Contract)

-· · ·,

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_:._ --:-_ :. .. - - -

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'>'.·

His Exceilenc y Lab ib ?amzam,

D e puty Mi n is t er ,

Ministry o f Lo ca l Gov e r nrncnt,

Lazoghli Square ,

Cairo, Egypt.

Your Excellency,

ANNEX 2

Febr uar y 3 , 198 0.

Last S eptem ber ,v e ,.., e r e ve r y p l e;-isc d to learn about vour

int eresl in Wo rld l3ank suppor t for · a poss ibl e p r ojec t based o:i

compr e hensive d eve lo pment of selec t e d ma rk a z es .

As Y ou r Exce ll ency may remembe r, I brou!lht a l etter to yo u la st Novem b e r fr om Mr. K~ j)p (sec attach ment 1) rc·,·iewing

how we r11i ght proc eed to dt' V('lop a p roject, accordi n g to th e' g11idc li nt'S

of th e ag r eement s igned in Scpl<'mbe r bc t wC'C'n Your f'xcc ll cnc , · and

Mr . Thool cn of the World Bank . \.Vhcn I came to sec Your F'xc t' ll cncy

in Novemb e r you r e co:11mt·ndl'd that we discuss th e µreparation,:; for

th e p r o p ose d Wo rld Bank projC'ct th e fo ll owing WC'ck , wht' n some of th e

preliminary r es ults fro :-11 th e ORDEV "Rura l Strat egy Surv ey w ould be

r e ady . Unfortunatel y , I had to r c tu rn to Wash ington befor e \\ ' C' had i'I

c hance to mcc t.

I am no w in Ca ir o f or a fe w clays and I wo uld ,· cry much li ke

to meet wi th you . I understand mo s t of th e data undcr Sch edu l e l o f Llw

Surv ey i s now in tabular for m . I am particu Hirly intC'rcstcd i n r cv iC'wi ng

w ith you the s tatus of t he po ints Your Fxce ll<,ncy dis c ussed w i th

Mr . Thool e n ( see atta c hment 2 ). It was ou r understanding that

Your Excell ency wou ld arrange th e follo w ing~

1) OR DFV \\ ill es t a bli s h a spPc i al un it fo r comprehensive p lann in g .

2) OR D E V w ill engage exr<' rtis e to provid e s upport r o r th e compr ehL'nsi ve p lann ing p rogram .

3 ) J\ ftC'r cornple t ing tlw su r vey (w hi ch v .. as c:,lwcluled for

co:11p l ct i on in D, ·cc111b1'r 197<) ), ORDE r w o u l d en!lagC' thf'

serv i ces of hi gh l y 011a l ified e x perts inc l udinµ, i n particular.

a person expcr i c>r1,(·cl in rq.:i on~ll p lann in g and i n tlw prC' ­pa r;:itio n of rur~il rlcvt'lop :11e·n t p ro jec t s . ORI;F.\' wo\lld trv

to iden ti fy n n f'gypti;in cxpe rt for thi s posit i on b 11t if ORDFV ,vas no t ...,t1,ccssf 1il by Oc t o li r r 15, 197q (\\·hich

w;is b efo r <' Llw schPclt1k d cornp l C'lilin of tlw survcv) it . I ~

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- 2 -

His Excellency Labib 'Zamzam F <' b r 11 ;i r y ~ , 1 <J K 0

would take action to f'ngage en expatriate expe rt.

We are very e nth usi a s ti c about the prospL·c t s for rur;il

development in Egypt, and the i1r1 portancC' of such dC'velopmf'nl for your country. \Ve are a l s o very impressed w ith the survey , <lt1cl

th c w or k D r • Se l i m ha s b e l' n d o i n g , a n d w e b P l i e v c l h i s m a ·t e r i ,d

shou ld cons titut e a v e ry sound base.• for a m;nkaz rura l devl' l oprnl'n t prog r am . As Your Exce ll ency knows,ho\\'C'Vl'r, rnuch additiona l \\'Ork

s t i ll n e e d s to b c d on e t o p r e pa r <' ;:i pr o j e c t ; an d i t i s th i s a d d i t i on a l p roj ect work that we hope on DE V' s staff can proceed wi t h a s soon as

possible.

In view of hi s in t erest in t~ c proposed projC'ct and World Bank ac tiviti es , I am g iving a copy c,f thi s l e tt e r to Mr. Sam i r Koraiem.

With kind regards.

Sincerely yours ,

Town sen~S~ ,~ S enior Loan Officer,

Wor ld Bank

Atta c l11r~ en ts

C . C . Mr . Sa rni r Koraiern

P_LANNING

IMPLEMENTATION

_ ..

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Senior Advisor

~ Program ~

IEC Advisory Committee

Hardware I

Procurement Finance, Etc.

Coordinator (Dr. Mobarak)

Executive Project

Coromittee

Liaison Officer

Executive Director

(Dr. Kamel Attia)

IEC

ANNEX 3

Senior Advisor (Dr. Hassouna) - -- - -.

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Statistics

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Visitor

' ' Research

and Development

Software I

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\ Training Research

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OFFICE ME~J10RANDUrv1 TO: Mr. Peter t. • ,N;;i.,1.or , Chief , EMP A4

' \" ; ·, (\;.1 .~. •/ \' ·, / , . , / -· . .:,.,,..--

FROM : P. Econom1-d e<',7 G. Dono,von , & N. ffo n t'.'c ith (EMP);

DA.I [ Februar y 22, 1980

J. Pilgrir,1 & D. Shoe sm ith (Con sult ant s ) SUBJECT: EG YP T: N~w· Lands Devc(lopmcnt Proj e ct (West Nuba r iya ) - I ssues Pape r

The Proposed Proj e ct

Project Preparation

1. The project was prepared by ULG Consultants Limited, Warwick, England, under assignment by Overseas Development Administration (former Ministry of Overseas Development), England. An Interim Report of the Feasibility Study was submitted to the Government in February 1979 and reviewed by Government officials and the Bank in April 1979. The final feasibility report was submitted by the consultant in August 1979. A Bank preappraisal mission visited Egypt from September 25 to October 4, 1979, and participated with Government officials in the review of the feasibility study.

2. The appraisal of the project was carried out between January 15 and 1. 0 million February 12, 1980. A Project Preparation Facility of u

has been approved by the Bank for carr - ing ou pt'"Cfiec iv son of 7,200 feddans and for rearing work was assigne to Halcrow-ULG Limited on January

in on the first tender documents. The 11, 1980, and is expected

to be completed by June 1980.

Project Description

3. The project, as proposed prior to appraisal, consisted of: 7

(a) ~ ~f about 48,000 feddans net of desert lands combined with settlement of 8,000 6-feddan small holders through:

(i) (ii)

(iii)

installation of irrigation and drainage networks; provision of infrastructure (roads, electricity); land levelling, leaching and on-farm development;

(b) provision of social infrastructure (water supply, education and health) and housing for settlers and Govern­ment employees;

(c) provision of farm machinery, maintenance facilities and stores;

(d) establishment of a Project Unit responsible for implementa­tion, opera tion and maintenan ce and for monito ring and evalua tion;

\

Peter E. Nay lor - 2 - Fcbrunry 22, ]980

(e) provision of t ec hni ca l ass i stance for :

(i) (ii)

(iii) (iv)

ca rrying out field triAls and demonstrations; preparin g final design and t ende r docum ent s ; supervising con s trucU on and management support; training and monitoring.

(f) bilharzia control component to cover the foreign cos t for a three-year consolidation phase in Upper Egyp_t, for the expansion of the program to the Giza Governorate and for the application of a control program in the West Nubariya area.

4. The total cost of the project, including physical contingencies and expected price increases, was tentatively estimated at about US$293 mil.J..;i..on with a foreign exchange component of about US$149 million or 50%.

Issues

Size of Project

5. The project as described in paragraphs 3 and 4 is, in the mission's opinion, too large, and its implementation would require a period of at least eight years. Moreover, the project, being the first of its kind to be implemented in Egypt, would probably encounter a number of difficulties which would be easier to solve if the project is of a smaller size . Finally, the Bank's allocation for the project of about US$80 million would cover about half of the foreign exchange cost of the original 50,000-feddan project so that a clear need existed for cufinancing. Attempts to obtain definite pledges of finance from potential cofinanciers were inconclusive, with the exception of the African Development Bank which is considering a joint financing of about US$10 million for the bilharzia component, Conunonwealth Development Corporation(CDC) has also expressed interest but they are unable, for the time being, to ' make a finn commitment. Thus, the mission recommends execution of the project in t wo phases: The first phase, covering about half of the area to be reclaimed, i .e., about 25,000 feddans, would be the subject of the present Bank project . The second phase, covering the remaining area would be considered by the Bank three years after the commence­ment of the first phase as a follow-up project. The suggested project would be easier to handle and would have a reasonable implementation period of five years. Any experience gained from the first project would be used in the implementation of the second phase and other similar projects in Egypt . By reducing the proj ec t scope to about 25,000 feddans , the total cos t would be about US$165 million with a foreign cost US $90 million, in which the entire bilharzia control component is included.

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Peter E. Nay]or - 3 - Febru ary 22 , 1980 ------~-------- --------- ------------

Economjc Ra t e of Return

6. At t his str ge , it i s not possible t o mnke an accura te estirnaUon of t he economic r a t e of return of th e project . This r equ ires detaile d cal culations on the e conomic investment cost, operation and maintenance costs and economi c benefits which could not be done before the i~ s ue of the white cove r SAR . However, the mission feels th at as a r esult of t-he high economic cos t of ene r gy for pumping and of the high co s t for infra­struct ure (wh ich will become proportionally higher for the first phase i f the t wo-phase solution i s adop t e d) the project may h av e a low to mod e r<1te economic r a te of return . It is anticipated, however, tha t the f amilies settled would be from among the poorer ·groups in so ciety with few alterna tive employment oppor tunities. In addition, with the high pressure of popula tion growth on resources in Egypt, the country has little option but to expand its agricultural base by land reclamation. Finally, the project would have a pilot nature in the sense that it would inaugurate stra teg ies for l and reclamation which would be followed in the future in similar projects. The mission recommends that in its decision about whether to finance this project, the Bank should, in addition to the economic rate of return, give considerable weight to the important social and employment benefits.

Water Supply for Irrigation

7. In order to ensure the irrigation water supply for the project, the following works have to be done:

(a) Enlargement of Rayah El Nassri Canal from km 20 to km 73, by which the capacity of the canal will be increased to 8.5 million m3/day. This work is underway and it is expected to be completed by end 1981.

(b) Reconstruction of the lining of the Nasr Canal from the intake at Nubariya to PSI and on 4-5 km between PS1 and PS2.

(c) Repair of the remaining lined part of the Nasr Canal up to km 27.

(d) Extension of the canal up to PSS (km 55), for which work is underway , and expected to be comple ted by end 1982.

(e) Completion of civi l works in PS4 and PSS and instal­lation of pumps, underway and expected to be f inished by end 1982 .

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---~-------~--======!!!!!!!!!!!!:=====,,,,...=------------Pete r E. N:lJ'._lor - 4 - Fchrunry 22, 1980

(f) Cons truc tion of eJ.cctric tronsm i s si~u linei nnd subs t,l t ions . Work i s under wa y and expec t e d to be compl e ted by end 1981 .

The mos t critical of the above work s is the reconstruction a~d r epair of Nasr Canal which needs hi ghly specia lized contractors a s th e r epair mu s t be done under wa t er. The miss ion believes tha t th e only way to achieve c ompletion of the repair of the Nas r Canal in r easoirnble time i s for th e Ministry of Irrigation to invit e foreign firms to submit package-deal proposa ls which wo uld include study of the r epair and execution of the work. A speci a l comm ittee of the Ministry of Irr iga t ion would examine thes e proposals and would select the most appropri ate . It should be noted that funds have been allocated for the repair of the Nasr Canal under the Fruit and Vegetables Proj ec t. The mission recommends that the award of the repair of the Nasr Canal works be a condition for Board presentation and that the Gov ernment be notified immediately on this subject.

Coordination of Agencie s Involved in the Project

8. Difficulties are anticipated in obtaining adequate coordination of all the different agencies which will be involved in execution, operation, and maintenance of project works. These agencies will mainly include the Ministries of Land Reclamation, Irrigation, and Agriculture and, at a second level, the Ministries of Education, Health, and Highways, the Rural Electrifica­tion Authority, the Alexandria Water Authority, and agencies dealing with communications. The problems will be similar to those alrea dy faced in other projects in Egypt . The mission recommends that the Bank obtain from the Government, at negotiations, a firm connnitment that a coordination connnittee, comprising representatives from the three main Ministries involved (Land Reclamation, Irrigation and Agricu:ture) be established before the end of 1980 and that other measures be taken to ensure coordinat~on at the local level.

Processing Plan ts

9. The cropping pattern calls for the establishment of crops such as sugar beet, sunfl ower , and onions. Fodd e r crops would be es t ab l ished to allow development of a village based dairy industry. In order to market these products and r ealize full benefits, additional investment in processing plants would be requir e d outside the propos ed set tlemen t project. A sugar be e t factory would be the most important of these plants . While some preliminary at t empts to find financing for a sugar beet factory have been undertaken by Government, no firm offers have yet been forthcoming . The r ea lization of full benefits would be uncer t a in unless Gove rnment had f irm comm itments by the time of negotiations, for fin ancing processing plants. The mission recommends tha t alterna te cropping pat t erns be exam ined which woul d not require a substantial investment in processing plan t s . The projec t would be appra ised on the basis of both the recommended and an altern.:i.tive crop ping pattern .

Peter E . !_lay J or - 5 - February 22L-2J80

Selection of CrOJ?_pin0 P:it t er n by farme r s

10. Gov ernmen t believes th e croppini pattern should be compu l so ry in the project area especially i n r egard to sugar beet . But the niissio n believes tha t some of the inefficiencies in crop production in Egypt cnn be r ela ted t o t he comp ul so r y adopt i on of cert.Jin cropping pa tt e rns by fnrmers . To encourage efficiency in production , t he ·proposed project authority should n ot r equire compulsory impl ementation of cropping patterns. The mis s ion r ecommends that the Bank should persuade Government to allow free selection of crop s .

Cooperative Organiz a tion

11. At present, cooperative organization in the new lands is controlled by Governmen t employees and membership is compul ~ory. Farmers have little say in their own affairs and benefits are controlled by a small number of powerful members . Supply of inputs by coops is inefficient. Government believes . that public servants should cont inue to play a major role in the control of cooperative s and that cooperatives should be the dominant means of supplying i nputs and market ing produce. The mission recommends tha t the following should be Bank's negotiation position:

(i) The present form of cooperatives would largely be repla ced by a combination of smaller, voluntarily formed cooperatives and private enterprise.

(ii) Input stores would be run either by private individuals operating on a concession from the proj ec t authority, or by small cooperative groups guided, but not controlled by a cooperative specialist . .

(iii) Produce would be marketed by a number of farmer associations specialized in the marketing of particular crops.

Bedouin in the Pro ject Area

12. There are a number of Bedouins living in the proposed project area with traditional rights of land use who will be displaced by reclamation. The losses they will suffer will include some limited grazing for anjmals and production of r a infed barley, production of irrigated crop s on homesteader plots along the Mar yut Company Canal , the loss of living space and of some permanent houses. The numbers of Bedouins and of their s tock and bouses is unknown but may be of t he order of 200 to 25 0 households. In the mission's op inion, a ll Bedouin households should have outright comp ensation, including a minimum area of i rrfr;ated land and cash compensa tion for property lo ss , especially of permanent houses. Provision migh t be made for them to b e re­located as a group, preferably where they can continue to utili ze the desert for grazing . The mission reque s ted the Minis try of Land Reclamation to

_ _____ - _ 6_-____ _ _ _ ______ T: __ •• c br11 ; 1 r y 22 , J 98 0

cond uc t a survey to determine numbers of Bedouins , lhc nmo·un t s o[ t he ir houses and stock , ,ind cu ] t .ivntions ,,,hich wo11 J d be sub_i ect to l or;s . The mission advi sed on me thods to be adopted f or t he surv ey , a nd t he Min i stry a greed t ha t it wou l d be conducted by end Mnrch 1980 . The Min.istry ag r c cl infonna ll y : ( i ) t ha t the Bedou i ns should be compensa t ed ; and ( i i ) t ha t Bedouin household head s would be off er ed the possibilit y of a six-fedda n plot and other suppor t fo r i nclus i on in lh!:! proj ect on equa l t cnns ,dth other set tl ers . The mi ss i on r ecommends t ha t the com pl e tion of t he survey and submi s s ion t o the Ban k of t he Min i s try ' s proposa l s for compensa t ion and i nt eg r a tion of Bedou ins i n t o the p r ojec t would be a condition for negotia ­t i ons .

Cos t Recover y

13. The lates t s e ttlement l eg isla tion specifies t ha t the co s t of r eclairne4 l and s hou l d be r e cover ed f rom settler s over 25 year s withou t i n t erest, and t her~ is no l egisla tion for recovering O&M cos t s f rom s e t t lers (f ollowing a long s tanding tradition in Egypt). The a ppraisal r eport will make de t a iled cost recovery propos a ls after doing the nec essary f a rm budget calcula tions . The mi ssion r e commend s that the se calcula tions should foll ow the principl e of full r ecovery of O&M costs, plus recovery of a proportion of c ap i t al cost s to be dete rmined by wha t the budge ts show to be reasonable. The f i na l s ha r e of the cost recovery proposals would be subject to negotiation.

Lending Rates and Loan Security

14. Regular loans through the Principal Bank for Development and Agricultural Credit (P BDAC), are now being made at ·conunercial r a t es; therefore, accept able to the Bank. For cer tain purpose s in the newly recla imed l ands, however, (for example for livestock dis tributed to s e ttlers by the Animal Husbandry Fund of the Ministry of Land Recl amation), Governmen t favo rs lending to s e ttlers at lower r a tes of interest. Another problem is that settler s will hav e dif f iculties in getting medium-term loans from PBDAC which r equires the trans fe r of l and titl e s a s loan security . Settl e r s will obtai n l and titles only aft er full repayment of land cha r ge s . The mi ssion r econunend s that commercia l rates of interest s hould be cha r ged wherever possible , and tha t PBDAC be reques t ed to a ccep t as colla t eral fo r me dium-tenn loans a lien on the e qu i pment or an i mals financed. These matte rs will be also the subject of negotia tion.

Loc a l Gove r nment

15 . It is not cle a r wha t will be t he futur e shape of loca l Gov e rnment in the region . The proposed project a rea is current ly divi ded be t ween the Gover nora t e s o f Alexandria and Marsa Ma truh . A dec r ee was promulga ted in 19 78 to establish a "Gr een Revolution Authorit y" wh ich would prov ide an ­adra in is t r a tive s t ruc tu re f or all of the r eclaimed l ands in t he region, but

P tc·r r . Naylor _________ -_7_-___ __________ l_·'chru ,~ry 22 , ] 980

to <l a t e none of its provision s ha s been implem ent e d . Jn previou s rec l ain.1 U o n sche::1cs , provision of e s sentia l p ublic service s ha s suffe r ed g r •a t ly f r om in a deq ua te loca l Government arrang e::m e n ts . The ,- pp r a i s a ] r e~t wil]:__JJ__!.9.P.:_Js e mea sur es t o be t .1ke n in t he pro jec t t o lc1y t he founclat j_on s for J oca l Gov( ·rnme nt a t t he village ] cve l , pa rt icularly with r esp ec t to budget a nd manD g ement , a nd wi l l spe cify assurances n ee ded to o b t ain pa rticipat i on by all l eve l s o f Gove r nr;; ent during a nd a f t e r pro jec t imp l ementa t ion , and phased ncsim ila tio n of t he a r ea into t he n a t iona l sys t em.

cc: Messrs. Benj enk , Dubey, Richardson(EMNVP); K8 raosmanoglu/Ms. Schaeffer , Messrs. Maiss , Kl1pp (3), Swayze , Bhattacharya (EMl ); Knox, Ha ynes , Hum e , K. Jone s , ffrench-Mullen, Merg houb, Ri tchie , Khora n a (EMP ); Willou ghby (2) (TWT), Raj a gopalan (8) (PAS), Yudelma n (5) (AGR), Chit tleburgh(EDO ), Abu-Akeel(2)(LEG), Hakim(CTR)

PEconomides/mom

February 21, 1980

Francis H. ?!ayer

Egypt - I DA Credit P091, A var.co fo r the Preparation of NeW' uinds _ ___ D<;_~ ~_l_~:t'l<~1:1t Pro j e ct .

We h ave as~ i .,ned IDA Credit no . PC91 to t h i s project which was

appr oved on Decemoer 21, 1979 f or an n.':l.Ount equivalent of$ 1,000,000 .

Attnched hereto are copies of t he letter from the Government of Egypt

r equesting the advance and Mr. Reidhues ' cable of approval of

Decer.lber 21, 1979.

The d:.i. tc for t . e purposes of Section 7 oft e FinAncial Provisions

Applicable to Advances for Project Preparation published on December 1,

1976 is Ha.rch 31 , 1981 .

'...,

At taclu:ients

cc: -- i

}~f~~~~.~.r.~ .. ...... l=~0-~~:.....,:r.7n ~) , F.conomi es (D707), Ahu-Akeel (N611) !·'.~ycr , P . .:.c;:L'.l .:mJ ~ t' 9 . Vivo<l n.

File : PO')l EGT o. r;_,r:1:1...ERA/ en

, ._k.v,

February 12, 1980

Dear Dr. Webbe:

Enclosed are the suroinary financial materials regarding the Egyptian Schistosomiasis Control Program. Specific tables are as follows:

1) cost tables .aid geographic breakdowns for the schisto component of the New~ands Development Project (West Nubariya);

2) descriptJ~e comparison of the financial outcomes and trade-offs betweel! scenarios;

a 9 ~ies of tables indicating the cost breakdowns, total costs, at? foreign exchange implications of the annual recurrent costs ~ the maintenance phase for each scenario;

4, a set of graphs showing the annual costs of the program (capital and recurrent) over the 1984 - 90 period;

5) upcoming mollescicide base costs for the consolidation phases of Giza, Nubariya, and Upper Egypt.

Bernhard Liese and I have discussed these findings at length. As he will only be in the country from February 19 to March 7 and as I return February 29, we would hope that you could arrange your Washington visit for the first week in March. In any event, I look forward to seeing you in March and discussing the financial findings with you.

Enclosures

Dr. Gerry Webbe

Sincerely,

H. Susan Ueber Raymond Population. Health and Nutrition

Department

London School of Hygiene and Tropical Medicine

395 Hatfield Road St. Albans, Herta ENGLAND

MSUeber Raymond:va

cc: Dr. B.H.Liese, PHN; Mr. P. Economides, EMP

OFFICIAL FILE COPY

Unit Cost Capital Costs .I oI Units ($ '000)

KJUUSCIClDE !f

Middle Egypt l:_/

Consolidation 540~/ 17

Giza 1_/

Intervention 15~/ 17

W. Nubariya !:.f

Intervention 9~/ 17

Opper Egypt

Consolidation ~ 17

Sub-Total 950

DRUGS

Metrifonate (Heoma-2ooooou§.I tobium) .0005

Parazaquantil 2600001/ (Manson!) • 005

Sub-Total

VEHICLES ~/

Trucks

Middle Egypt 1 19. 4

Giza 1 19. 4

W. Nubariya 1 19. 4

Pickups

Middle Egypt 10 4. 89

Giza 10 4. 89

ll. Nubariya 5 4. 89

.Jeeps

Middle Egypt 3 6. 3

Giza 10 6. 3

W. 5ubariya 10 6. 3

Motorcycles

Giza 12 6 1

Bicycles

Giza 120 06

St ation Wagons

Middl e Egy pt 3 6

Giza 1 6

. ·ij Micro Bu•

Giza 1 7. 4

W. Nubariya 1 7. 4

Sparea J..f (20%)

Sub-'l'otol

E!JU!PMENT

Knapsack Sptayer• (incl. sp . parta)

Cha 100 075

W. Nubariya 30 075

Test 'Kita

Giza 9 81

W. Nubariya 3 81

Dispensers

Ciza so 005

W. Nubariya 30 005

Motor Sprayers

Giza 9 l, 2

Fiberglass Tanks

Giza 16 8

Sub-Total

Base Total

40% Contingencies

Grand Total

NE\./ LANDS DEVELOPMENT PROJECl'

SCHlSTOSOMIASlS CONTROL COfn' ONEl>'T

Fiscal Years

1981 1982 · 1983

3060 3060 3060

1020 1020 1020

510 510 510

2380

4590 4590 6970

1000

1300

2300

19.4

19.4

19.4

48.9

48. 9

24.5

18.9

63

63

7.2

7.2

18

6

7.4

7.4

_l?...J!,

4~1.4

7. 5

2.3

7.3

2.4

.3

. 2

10.8

~

43.6

7385.0 4590.0 6970.0

2954.0 1836 2788

10339.0 6426 9758

·1984

Bayluc j do

Foreign Exchange

Total Amount .. %

9180 9180 -100

3060 3060 100

1530 1530 100

2380 " 2380 100

16150 16150 100

1000 1000 100

1300 1300 100

2300 2300 100

19.4 19.4 100

19.4 19.4 100

19.4 19.4 100

48.9 48.9 100

48.9 48.9 100

24.S 24.5 100

18.9 18.9 100

63 63 100

63 63 100

7.2 0 0

7.2 0 0

18 18 100

6 6 100

7.4 7.4 100

7.4 7.4 100

72 . 8 72.8 100

451.4 437 97

7.5 7.5 100

2.3 2.3 100

7.3 7.3 100

2.4 2.4 100

.3

.2

10.8

12.8 12.8 100

43.6 32.3 74

18945.0 18919.3 99

7578 7567.7

26523 26487

I

Unit Capital Costs Ii of Units Cost 1980

MOLLUSC IC IDE

Middle Egypt Consolidation 540 13

Giza Intervention 180 13

W, Nubariya Intervention 90 13

Upper Egypt Consolidation 140 13

Sub-Total 950

10% increase in tonnage

MOLLUSC IC IDE

Middle Egypt Consolidation 594 13

Giza Intervention 198 13

W, Nubariya Intervention 99 13

Upper Egypt Consolidation 154 13 Sub-Total 1045

~~

J .

NEW LANDS DEVELOPMENT PROJECT

SCHISTOSOMIASIS CONTROL COMPONENT

($'000)

Years 1981 1982 1983

2340 2340 2340

780 780 780

390 390 390

1820

3510 3510 5330

2574 2574 2574

858 858 858

429 429 429

2002 3861 3861 5863

, :., r ·~1w:, - - ~ ... 1"!11 ~-... ,>

'

' ..

MOLLUTOX

Foreign Exchange 1984 Total Ainount %

7020 5616 80

2340 1872 80

1170 936 80

1820 1456 80

12350 9880 •. 0 80

7722 6177.6 80

2574 2059.2

1287 1029.6

2002 1601. 6 13585 10868.0

'911!!' :i.'11',:V ·~ 11111 ,. ~ • t q:p IP

f,

I

I /

I

SUMMARY OF COST DIFFERENTIALS

($' 000 US)

MOLLUTOX ($13 , 000/ton + 10%

BAYLUCIDE ($17,000/ton) MOLLUTOX ($13,000/ton) MOLLUTOX ($10,000/ton) t onnage increase)

Foreign Foreign Forei gn Foreign Item Total Exchange Total Exchange Total Exchange Total Exchange

Molluscicide 16150 16150.0 12350 9880 9500 7600 13585 10860

Drugs 2300 2300 2300 2300 2300 2300 12300 2300

Vehicles 451.4 437 451.4 437 451.4 437 451. 4 437

Equipment 43.6 32.3 43.6 32.3 43.6 32.3 43. 6 32.3

Base 18945 18919,3 15145 12649.3 12295 10369.3 16380 13637.3

40% Contingency 7578 7567.7 6058 5059.7 4918 4147.7 6552

Total 26523 26487 21203 17709 17213 14517 22932

SUMMARY

Bank Financed (fe.) 26487 17709 14517 19902

Govt. Financed (local currency) 36 3494 2696 3839.8

I • ,

' ,. I

1.

2.

3.

4.

s.

6.

7.

8.

9.

I

BUDGET NOTES

Niclosomide, marketed as Baylucide

Bank project areas for Upper Egypt I and II; 90 metric tons of · chemical twice per ye.ar 1980 - 82 for consolidation; focal

chemical 1983 - 89@ metric tons per year

Giza governorate

Bank project areas for New Lands Development I and Delta Drainage III; 10 metric tons of chemical three times per year for three years for intervention; 10 metric tons twice per year for three years for consolidation;~~metric tons per year for focal maintenance

Metric tons

Courses; 3 doses per course

Courses; 1 dose per course; calculated for Giza and West Nubariya only ·'

Vehicles for Middle Egypt are replacement of half of fleet

20% of vehicle cost; not including motorcycles or bicycles

l

Middle Egypt

Moll

Drugs

Veh.

Base

Giza

Moll

Drugs

Veh

Equip

Base

W. Nubariya

Moll

Drugs

Veh

Equip

Base

Upper Egypt

Moll

'i:>rugs

Base

CAPITAL COST SUMMARY BY AREA

1981 - 83

($'000) (Mollutox)

9180 7020 (fe 5616)

375

105.2

9660.2 7500.2

3060 2340 (1872)

1350

151.9 ,/

38.7

4600.6 3880.6

1530 1170 (936)

200

114.3

4.9

1849.2 1489.2

2380 1820 (1456)

375

2755 2195

.·":...~ t ........ , ...... « ~

(Moll + 10%)

7722 (fe 6178)

8202.2

2574 (2059)

4114.6

1287 (1030)

1606.2

2002 (1602)

2377

--r ~ . -- .....----- - " f

II

SCENARIO ASSESSMENT

General Notes

FOR DISCUSSION Egypt Schisto Financial

Projections

1) Liese and I feel a 12% inflation rate on chemicals is more

realistic than the 7% figure acceptable to government. Two

sets of totals, then, have been calculated for the scenarios,

and we tend to favor the higher figures

2) Scenario VII was added by government after your departure;

I simply costed it out with no attempt at a technical assessment

3) The tables encompass 1984 through 1990, and thus give us an iJea

what the upcoming capital costs (requests) are l1~ely to be as

well as addressing the recurrent issues

4) In the initial discussions between Bernhard Liese and myself,

scenario VI appears to be the financial choice (technical

considerations aside) since it indicates that the lowest cost

option (chemotherapy) could be undertaken because a need to

alternate subsequently with intense mollusciciding would still

be lower cost than a program emphasizing molluscicides

5) general assumptions behind the analysis are as follows:

a) areas of concern are those of Bank projects: Upper Egypt,

Middle Egypt, Giza, 100,000 fd of West Nubariya

b) population growth rate is 2.8% per annum, with 27% between

the ages of 5 and 15

- 2 -

c) exchange rate is 68.7 pt/$1

d) depreciation is straight-line

e) price contingencies as follows:

~ 7% per year compounded for chemicals and drugs with

- alternative of 12% per year

- 5% per year compounded for vehicles (depreciation)

_average 3% per year on local costs

£) schisto financing remains as follows

chemicals+ drugs

salaries

operation/mair.r~­nance

=

=

=

g) line items remain fungable

materials line ite~ from central + governorate

r,overnorate

Lentral + governorate

h) MOF continues to compensate for exchange rate changes

i) no increase in central staff directly attributable to Bank project areas

j) software costs not included

k) by 1984, local industry develops capability to produce chemical at 70% concentration

. 6) comparison of recurrant costs to growth in resources is

difficult, given the complex and totally fungible nature of

the budget. I have collected some data which we can review in

March comparing per capita costs to overall per capita health

expenditures.

- 3 -

Comparative Strengths

Scenario

I

II

III

IV

V

VI

Advantages

1) no changes in current program structure

1) no changes in current program structure

2) allows for management quality slippage

1) allows program to approximately achieve government infection rate objectives

2) cost increase attribu-table to local costs rather than foreign exchange

1) lowest cost 0ption 2) allows for management

quality slippage

1) lowest cost option 2) 62% foreign exchange 3) no molluscicide use

Disadvantages

1) high cost 2) 90% foreign exchange ceiling 3) requires government acceptance

of 10% infection rate 4) assumes good management

1) increases infection rate to 15%

2) high cost 3) 90% foreign exchange ceiling

1) requires good management 2) requires government acceptance

of program expansion to include special case finding teams

3) high cost

1) requires good management 2) as high as 92% foreign exchange 3) requires government acc~ptance

of program expansion to include apecial case finding teams

1) requires good management 2) requires government acceptance

of 10% infection rate, special case finding teams, and targeted chemotherapy program for ages 5 - 15

3) high risk due to uncertainty as to effectiveness of mainte­nance strategy

1)

2)

allows management quality 1) slippage

requires 5-year planning approach to maintenance government acceptance of 10% infection rate and possibility

costs allow combination of2) low-cost chemotherapy for 3 years with higher cost 2-year mollusciciding if infection rates climb

3)

of periodic infection rate increases as trigger to mollus­cicide use government acceptance of special case-finding teams and targeted chemotherapy program for ages 5 - 15

4) uncertainty of effectiveness

- 4 -

Scenario Advantages Disadvantages

VII 1) achieves government 1) introduction of a "pre-main-infection rate objec- tenance" phase with associated tives delay in start-up of maintenance

2) intermediate cost 2) uncertain effectiveness of 3) has government backing strategy

as Scenario VII is its 3) requires good management addition to the options 4) ·requires government acceptance study of special case-finding teams

5) 87% foreign exchange

SUMMARY

CHEMICAL INFLATION DIFFERENTIAL

BAYLUCIDE MOLLUTOX

Total Cost Total Cost

Scenario 7% 12% 7% 12%

I, II 12,743.4 15,250.4 10,463.4 12,364.0

III 13,001.9 15,512.1 10,721.9 12,624.1

IV 17,846.8 21,608.8 14,426.7 17,276.8

V 3,312.5 3,312.5 3,312.5 3,312.5

VI(ave. 1988-1989) 10,500.5 12,381.5 8,790.4 10,215.4

VII 8,156.9 9,410.9 7,016.9 7,966.9

7% inflation in chemicals

I, II

Molluscicide 6,916

Drugs 983. 4

Salaries 764. 3

0/K 710. 8

Base 9,372. 9

Total 12,740. 4

(per capita) $0.77

·(Average 1988 - S9 totals are

SUMMARY - 1989*

($' 000 US)

BAYLUCIDE

III IV-·

6,916 10,374

983. 4 983. 4

830. 3 830. 3

904. 9 904. 9 .

9,634. 6 13,092. 5

i3,001. 9 17,846. 8

$0.79 $1.08

*lit recurre11t year comparable for all acenarioa for all 4 areas

V

983.83

830. 3

904. 9

2,719.03

3,312.53

$.20

EGYPT Recurrent Cost Projections Schisto Control Program

VI* VII

.... ... 10,374 3,468

983.83 983. 4

830. 3 830. 3

904. 9 904. 9

13,093. 3 6,176. 6

17,847. 8 8,156. 9

$1.08 • $0.50

10,500. 5

• .

. ,•

7% inflation in chemi.cals

SUMMARY - 1989* -----($ 1000 US)

,,·_, .. . ·t MOLLUTOX

~ .; ,~·.- I, II III IV V

Molluac.icida 5,282 5,282 1,923 · •; I

Drugs 983. 4 983, 4 . 983 ', 4 983.83

Salaries 764. 3 830. 3 830. 3 830. 3

0/K 710, 8 904. 9 904. 9 904. 9 .. ., . ' ... ,,

' Base 7,740, 5 8,000. 6 10,641. 5 2,719.03

Total 10,460. 4 10,721, 9 14,426, 7 3,312,53

(per capita) $0.63 $0.65 $0.88 $0.20

(Average 1988 - 89 totals are)

* lat recurrent year comparable for all scenarios for all 4 areas

EGYPT Recurrent Cost Projections Schisto Control Program

.... .... VI VII

7,923 2,641

983.83 983. 4

830. 3 830. 3

904. 9 904, 9

10,642.03 5,359. 6

14,427.53 • 7,016, 9

$0.89 $0.43

8,790. 4

III

12% inflation in chemicals

I, II

Molluscicide 6,916

Drugs 983. 4

Salaries 764. 3

O/M 710. 8

Base 9,372. 9

Total 15,250. 4

(per capita) $0.93

(Average 1988 - 89 totals are

III

6,916

983.

830.

904.

9,634.

15,512.

SUMMARY - 1989*

($'000 US)

BAY LUC

IV

10,374

4 983.

3 830.

9 904.

6 13,092.

1 21,6G8.

4

3

9

5

8

$0.95 $1.32

*lat recurrent year comparable for all scenarios for all 4 areas

ID E

V

983.83

830. 3

904. 9

2,719.03

3,312.53

$.20

EGYPT Recurrent Cost Projections Schisto Control Program

VI* VII

..... 10,374 3,468

983.83 983. 4

830. 3 830. 3

904. 9 904. 9

13,093. 3 6,176. 6

21,609. 8 9,410. 9

$1.32 $.57

12,381. 5

III

12% inflation in chemicals SUMMARY - 1989*

($'000 US)

MOLLUTOX

I, II III IV V

Molluscicide 5,282 5,282 7,923

Drugs 983. 4 983. 4 983. 4 983.83

Salaries 764. 3 830. 3 830. 3 830. 3

O/M 710. 8 904. 9 904. 9 904. 9

Base 7,740. 5 8,000. 6 10,641. 5 2,719.03

Total 12,364. 0 12,624. 1 17,276. 8 3,312.53

(per capita) $0.76 $10. 77 $1.05 $0.20

(Average 1988 - 89 totals are)

* let recurrent year comparable for all scenarios for all 4 areas

EGYPT Recurrent Cost Projections Schisto Control Program

VI VII

7,923 2,641

983.83 983. 4

830. 3 830. 3

904. 9 904. 9

10,642.03 5,359. 6

17,277.53 7,966. 9

$1.05 $0.49

10,215. 4

III

Scenario

I

II

III

IV

V

VI

VII

Mgmt. Quality

Good

Poor

Good

Poor

Good

Poor

Good

Infection Rate Accepted

10%

15%

5%

5%

10%

10%

2%

SUMMARY - 1989* RECURRENT COSTS

Strategy at Maintenance

1) Area mollus. twice/year+ focal 2) Current chemotherapy program

1) Area mollus. twice/year+ focal 2) Current chemotherapy program

1) Area mollus. twice/year+ focal 2) Current chemotherapy program 3) Special case finding teams

1) Area mollus, 3 times/year+ focal 2) Current chemotherapy program 3) Special case finding teams

1) No molluscicides 2) Current chemotherapy program 3) Special case finding teams 4) Additional chemo. porgram for 5-15

age group

1) 2) 3)

1)

No mollus. until 1988; chemo as in V Poor mgmt. infection claims 1989 - 1990 mollus. 3 times/year

Pre-maintenanc~ of 2 years a) molluscicide 3 times/year+ focal

2) b) chemotherapy as in V Maintenance phase a) focal molluscicides o~ly b) current chemotherapy program c) special case finding teams

r . , ......

* The first year in which all scenarios are in maintenance phase

. '

TOTAL FOR'!::: :':GN EXCW~~GE-1989

7% inflation in chemicals ($'000 US)

BAYLUC ID E MOLLUTOX Scenario Total F.E. % FE Total F.E. % FE

I, II 12,743.4 11,466.0 90 10,463.4 8,056.8 77 III 13,001.9 11,571.7 89 10,721.9 9,435.3 88

IV 17,846.8 16,611.3 93 14,426.7 10,820.0 75 V 3,312.5 2,076.9 62.7 3,312.5 2,076.9 62.7

VI (ave.) 10,500.5 9,264.6 88 8,790.4 6,417 73 VII 8,156.9 7,096.5 87 7,016.9 5,052.2 72

12% inflation in chemicals

I, II 15,250.4 14,152.4 92.8 12,364.0 9,767.56 79

III 15,512.1 14,271.1 92 .. 12,624.1 11,487.93 91

IV 21,608.8 20,095.5 93 17,276.8 I

12,957. 6 75 • • ' V 3,312.5 2,076.9 62.7 3,312.5 -. 2,076. 9 62.7 J..._ ·'

VI (ave.) 12,381.5 11,044.6 89 10,215.4 7,559. 4 74 VII 9,410.9 8,350.5 88.7 7,966.9 5,218. 0 73 t~

,. I • I

IV I . I I I BAYLUCIDE

---... ' .... __ _ Total, Costs Comparing Scenarios

~ 7% ' inflation in chemicals

1 ---==-~ . -. --i=~-.J --=- ~- -~ I - -:- - -n--- : ·- - +- -

,,. -· - -- -' - -- 1-_ --,1--

v' -- ! I I --

, .,_

I

1 - '-

,- . -- __ ._

t -I I.

- i

i -:_ -_j-,-'-+---' ~

I I - _ !.

I -- f=-_i__ - -·-· ~ ---------t-- '--~-·- _ _: - t - , - - 1-

- - ~ ~ I -,--t- =~-= ~ - ~ -! - T r-

1 ' '

... -.,...;..,. ,-: ~ .

----------H--'-------~ :"' 7'- .

! . .. : .. , . --: -~ ~+~~-~

:--..... Jr - - ~,--__::i1c.·,--------------,------,---: . _ ,~ - !~ S,: - r

-l -

. \

: - - · ~ - · / . • ft- • . - ~ "' . ,- . -- . -=s.. . x: - - -- ~ -: c:::::- _..).__ I '+ ' - ; - t· - ' - , ,(

~~- : ; - r , -_ -i_ "'-; - - ·..,-:. _ _ . ·-- ---. - ·- --- ---- - --:-',1- -.x..

. J<. lr-. /( .\ ->1......__j(_.,.._..,__ r ~ --~-~x~.-

_____ _ _ ._r_· -~-- -- -- ---- --.-----.--------'-/ __ --- -------. I --+-- ·-- _I - - • X ..,.~ "":ii .,. .,.,._-1.. 'i .. ..,. _.--:: .,.,. ---r

,( ~ -I!.. - . '!-" .... _________ ...,.,.. _ _ ___ _ -=-' · ')I.)' • T ·- - . '• . ,:t..,, : · - -~ . K - -

- -~'------- - --------------~~~.-c-~ -~-- -~-----j ~ • .,, 1 ----"-·- -:x · ---;

-----· I

____ i_ _ r - ;=T~'.

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,

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IV

MOLLUTOX I I I

j-· - .

Total Costs Comparing Scenarios

r __ ·----~~ 7~ inflation in chemicals i ---- ---

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\; .-----------It---------- --------------------------------

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/

Pre-contingencies Molluscicide Base Costs, 1984 - 88 Consolidation

Phase

($'000 US)

Unit Cost 1984 1984 1985 1986 1987 1988

Middle Egypt 18.2/ton 4914* 4914*

Giza II 728 728 728 1092* 1092*

V. Nubariya II 364 364 364 546* 546*

Upper Egypt II 2548 2548 3822* 3822*

Total 8554 8554 4914 5460 1638

of which ,consolida-. tion 3640 3640 1092

• pre-mainte;,ance phase costs under Scena1.io VII

London School of Hygiene and Tropical Medicine

Winches Farm Field Station 395 Hatfield Road St. Albans Herts

( Mr. P. Nay , Chief, Agriculture Division IV

E.M.E.N.A. Projects Dept., The World Bank, 1818 H Street, N.W a, WASHINGTON, D.C.20433.

Telephone St. Albans 34201

Station St. Albans City

G. Webbe, DSc. MSc Professor of Applied Parasitology and Sub-Dean

1st February, 1980.

Dear Mr. Naylor, ~1/:JS) 8',7'1{A-) I am enclosing herewith~~ preliminary Appraisal Report on the

Bilharzia component of the West Nubariya Reclamation Project. I have included financial estimates, in collaboration with Mrs. Susan Raymond, for the possible inclusion of either BayluscideR or MollutoxR. The real costs of both products are in doubt at this time, and our estimates are based upon the best available information. This also applies to the cost of the new drug praziquantel. It has been agreed that a new field trial using Mollutox will be carried out in March, when it is hoped that a con­clusive result will be obtained.

in March. then.

I look forward to completing the appraisal report in Washington I hope also that I may have the opportunity of meeting you

With kind regards.

/

FOLLOWING IS TEXT OF CABLE SENT TO BANK:-J ~ .. l'JQuJ

WEST- N~ARIYA

NAYLOR .FROM BARNES \.J EST NUBAR I YA

(Cable from ODA 1 bondon of 25 Jan 1980)

1. GRATEFUL INFORMATION CONCER~ING FORTHCOMING BANK REVIEWS OF r

SCHEME. PARTICULARLY WISH TO KNOW PRECISE DATES OF MISSIONS AND WHO Will PARTICIPATE. IS IT IN FACT SCHEDULED FROM JAN 15 TO FEB 15? PRESUME FULL BANK APPRAISAL. -2. ODA TECHNICAL REPORT ON CURRENT CROP IRRIGATION TRAILS PRO-· GRAMME EN ROUTE TO WASHINGTON BUT COPIES WILL ALSO BE AVAILABLE BRITISH EMBASSY CAIRO~ ). COMMONWEALTH DEVELOPMENT CORPORATION WISH TO FIELD ONE OF / THEIR ADVISERS FOR FINAL ROUND OF DISCUSSION DURING LATTER RART OF MISSION. HOPE THIS. ACCEPTABLE AND CAN YOU SUGGEST MOST SUIT­ABLE TIMING. 4. IF YOU THOUGHT IT HELPFUL ADV I SER FROM AMMAN TO ASS IT IN REVIEW OF PROGRESS OF · CR6P TRIALS. ODA TECHNICAL . MONITORING VIS1T WILL TAKE PLACE ANYWAY FROM 12-15 JANUARY. 5. COPIED TO BRITISH EMBASSY CAIRO AND MIDDLE EAST DEVELOPMENT DIVISION AMMAN.

CARRINGTON

• .. +ion "'" • , " · ii.Fi • ~ ~ -----__ 11,~ __ j 2-;rz(gA. __ _ ll':f.lin~ T.- ·• • ' • • 1>ns: Pro.1 ect ,c:: • .. · ~J"l!led • ---- ~

P o~ !iame ___ :;1~~~-

Loan/Credtt No_;.. _____ _

Record Ren,oval Notice Archives & Records Management

File Title Barcode No. New Land Development Project - Egypt, Arab Republic of - Credit 1083 - P005028 - Correspondence -Volume 3

Document Date

23 January, 1980 Correspondents / Participants

To: Franz Heidhues, EMENA Project IV

Document Type

Telex

From: Goddard, Managing Director, Halcrow

Subject/ Title Egypt, Nubariya Extension detailed design contract I

Exception(s) Financial Information iv

Additional Comments

901230

The item(s) identified above has/have been removed in accordance with The World Bank Policy on Access to Information or other disclosure policies of the World Bank Group.

Withdrawn by

April Miller

Date

July 01, 2010

Archives 01 (March 2017)

248423 WORLDBANK

92222H IL TL S UN

CAIR023.1.1980

TO TELEX NO 248423 WORLD BANK USA

TWO FOR NAYLOR. AAA SHOESMITH ARRIVED CAIRO

JANUARY 22. DELAY DUE TO SICKNESS. BBB REYOR

TELEX JANUARY 18. NO FURTHER ACTION IS REQUIRED

ON THIS SUBJECT.

CCC APPLICATION FOR DISBURSEMENT OF FIRST

INSTALLEMENT PPF SIGNED BY GOVERNMENT. IT WILL

BE HANDED TO CONTROLLER HAKIM WHO IS COMING

CAIRO JANUARY 27. PLEASE INSTRUCT HAKIM BY

TELEX TO CONTACT RIFKI ANWAR MINISTRY

LAND RECLAMATION ON THIS SUBJECT. DDD -�MISSION IS VISITING PRODECT AREA FROM

(JANUARY 23 TO 29. WILL STAY HOTEL SAN

STEFANO ALEXANDRIA. PLEASE INFORM

FAMILIES. REGARDS

ECONOMIDES.

++

92222HILTLS UN

248423 WORLDBANKLLL

MR.KOEPP

CONT.MR.MITCHELL

MR.SHOESMITH'S OFC.

MR.ECONOMIDES OFC.

EMENA

rr ... __..,_a""- j.l.0,.,1,.��...,,.....�>-•. i.Oil l'P ' ., > e tff.J:J. -------- 'IJ.. i; I --

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roj ect Ne.me { t:;.L-:_71.fa

Loan�dit No _____ :aj

•

The World Bank 1818 H Street, N.W. Washington, D.C. 20433

Attention: Country Programs Department I, Region EMENA

Subject: Advance for Preparation of New Lands Development Project

Gentlemen:

1. The Government of Arab Republic of Egypt hereby requests from the International Development Association(IDA) an advance in an amount not exceeding US$1 million, to finance certain expenditures required to complete the preparation of a project for the development of about 50,000 feddans of new lands in the West Nubariya area, for the carrying out of which the Government has requested the financial assistance of IDA.

2. The activities required to complete the preparation of the said project are as follows:

--detailed design for irrigation and drainage works in the first settlement area of 7,200 feddans;

--engineering feasibility study of the proposed Regional Drain;

--detailed design for infrastructure works;

--detailed layout of farm and service buildings;

--tender documents for the above works.

3. Expenditures to be financed with the advance requested are consultant services in an amount not exceeding US$1 million.

4. Consultants acceptable to IDA will be employed by the Government on terms and conditions satisfactory to IDA for carrying out the design work and the preparation of tender documents; no substitution of such consultants or modification of the tenns and conditions of their employment shall be made except with the prior approval of IDA.

5. The Government will carry out the project preparation activities outlined above with due di~igence and efficiency, will promptly furnish to IDA all such information covering such activities and the use of the proceeds of the advance as IDA shall reasonably request and shall from time to time exchange views with IDA's representatives on the progress and results of such activities.

- 2 -

6. The Government hereby accepts the Financial Provisions Applicable to Advances for Project Preparation published by the World Bank and IDA on December 1, 1976, a copy of which we have received, and uncon­ditionally undertakes to withdraw, use and repay (with service charge) the requested advance, if granted, in accordance with such provision.

7. The Government proposes that, for the purposes of Section 7 of the said provisions, the date March 31, 1981, be agreed upon between us. No withdrawals of the advance will be made after said date.

8. Withdrawal applications for the advance, if granted, will be signed on behalf of the Government by Eng. Adel Ezzy, Undersecretary, Ministry of Land Reclamation, or any person designated in writing by him. Authenticated specimen signatures of the persons so designated will be provided with the first application.

9. The Government understands and accepts that, in accordance with the said provisions, the advance, if granted, will carry a service charge, on the amounts of the advance withdrawn and outstanding, at the rate that will be specified by IDA in its acceptance of this request.

10. The Government understands and accepts that the granting by IDA of the advance requested would not constitute or imply any commitment on the part of IDA or the World Bank to assist in the financing of the project for the preparation of which the advance is requested.

11. The Government represents that it is authorized to request, accept, withdraw and repay the advance in accordance with the foregoing and proposes that, upon acceptance by IDA of this request, this letter and the reply of IDA, including the provisions referred to in paragraph 6, will constitute a binding agreement between the Government of Arab Republic of Egypt and IDA.

Sincerely yours,

(Title)

' . ,_;

,.

~~,J CHA Tqv. ~N

Distribution 1

eel

Mr. Naylor / Mr.r

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TO W~~ L) 3ANK '.'.' 3 1-'. l ,J:'.}TON

FON r.: 1 DHUE5 E"-tENi.. PROJ£CT-s I v REA:::s r YEARS WORKS CONSULTANCY A~RE=Y~NT WITH

NU3AR l ~:I o~ T~t L D~~ IGN FI RST

rJA LC RQWl LG l I i TI TEO . .. .

RE YOUH TE:LEX OF 2!iTH D~CF.),t3~R I NF·')RM I NG US OF I OA ' S ACCEPTANCE

o; ARAD' S .R~QU';:ST FOR PPF I N AN A\l: OUNT !\:OT EXC~ED I NG ONE MILLI ON

OOLLARS , PL~ASE CONF I R\4 THA.T THE SECOND HALD MILLI ON DOLLA RS IS

U'.J~ _FI R\:LY ALLaC.\Tf.D SO ·THAT FUt'CS ARE. AVAILA3 L£ TO COVER THE

CONSULTANT" FE.::: OF 860 . JOO COLLAPS PLUS ARAD ' S ASSOC IATED COSTS•

UP TO A. TOTAL NO T EXC':.EO t dG ON:: '-.I ILLt ON DOLLM~S .

CA I RO

92 :~ 1 3 TCOOK UN q,

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248423 WORLDBANK

Distribution; fua

Mr. Naylor / Mr. Economides' Office

Contr.-Mr. Mitchell

248423 WORLDBANK

22H ILTLS UN

HILTONCA IRO 17TH,JAN1980

TO 440098 IORLD BANK

FIRST FOR HEIDHUES.ALL MISSION MEMBERS

ARRIVED CAIRO ON SCHEDULE PLS INFORM

FAMILIES.HAVE RECEIVED FROM MINISTRY

LAND RECLAMATION TWO COPIES OF CONTRACT

WITH HALCROW ULG FOR DESIGN WORK UNDER

PPF.APPLICATION FOR DISBURSEMENT OF

ADVANCE PAYMENT ALREADY SENT TO WASH INGTON

REGARDS

ECONOM IDES.

248423 WORLDBANK LLL

Loan/Credtt No ' --------

---- -,·--- ---

FORM NO . 2 7 OCR ( 11 7 8)

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) IMPORTANT (PLEASE READ INSTRUCTIONS BELOW BEFORE TYPING FORM.)

Class o f Service __ __,_T-=E=L,..,,E=X,.__ _______ oate : 1 / 1 7 8 0 Tele x No. : _ _,2:c..::2::...:2::...:2::...:2=--=H-=-! -=L'--'-T--=L,___.,S=-----=U,_,N--'----------- Originators Ext : 7 6 8 8 5

12 10

0

- START 1 HERE TO FOR PARIS ECONOMIDES, WORLD BANK STAFF MEMBER, HILTO CAIRO, CAIRO,

CITY /COUNTRY

MESSAGE NO

4

5

6

7

8

9

10

11

12

13

14

15

l

17

18

19

20 END

O F

21 TEXT

EGYPT. COULD YOU PLEASE FOLLOW UP TELEX RECEIVED JA I UARY 12 FROM

MINISTRY OF LAND RECLAMATION QUOTE FOR HEIDHUES EMEN r PROJECTS IV

RE WEST NUBARIYA DETAIL DESIGN FIRST YEARS WORKS CON ULTANCY AGREE­

MENT WITH HALCROW-ULG LIMITED. RE YOUR TELEX OF 24T DECEMBER I

INFORMING US OF IDA'S ACCEPTANCE OF ARAD'S REQUEST FR PPF IN AN

AMOUNT NOT EXCEEDING ONE MILLION DOLLARS, PLEASE CON !RM THAT THE

SECOND HALF MILLION DOLLARS IS NOW FIRMLY ALLOCATED O THAT FUNDS

ARE AVAILABLE TO COVER THE CONSULTANTS FEE OF 860.000 DOLLARS PLUS

ARAD'S ASSOCIATED COSTS, UP TO A TOTAL NOT EXCEEDING I ONE MILLION

DOLLARS. SIGNED ENG. EL AHMADI, CHAIRMAN UNQUOTE. ~EGARDS

HEIDHUES

EGYPT: West Nuoariya

New Lands Dev't. Project

cc: Messrs. Economides, Donovan,

Monteith(EMP)

- l c mom

l"'nc D '3 I BU I N vVHI rE· F- 1 C ,py W HI TE Transr11tta l Copy

i

BLUE Ori~onator to )

-1980 JAN I 8 PM 2= 2 8

COMMUNICATIONS SECTION

440098 VORLDBANKA

924 1 3 TCOO K UN (Telex NO.)

HERE IS THOMAS COOK CAIRO

12/1 80

FROM CHATRMAf'-l

ARAD

DOKK I CAIRO

TO WOR LD BANK WASH I NG TON

Mr. Naylor

FOR HE IDHUES EMENA PROJECTS IV RE WES T NUBAR IYA DETA IL DES IGN F IRS T

Y~ARS WORKS CONSULTANCY AGREEMEN T WIT H HA LC ROW-ULG LI MTITED .

RE YOUR TELEX OF 24TH DECEMBER INFORM ING US OF IDA ' S ACCEPTANCE

OF ARAD ' S R~QUEST FOR PPF IN AN AMOUNT NOT EXCEED ING ONE MILL ION

OOLLARS ,PLEASE CONFIRM THA T THE SECOND HALD MILLI ON DOLLARS IS

NOW FIR~1LY ALLOCATED SO THA T FUNDS ARE AVAILABLE TO COVER THE

CONSULTANTS FEE OF 860 . 000 DO LLA RS PLUS ARAD'S ASSOCIATED COSTS,

UP TO A TOTAL NO T EX CEED ING ONE MILLI ON DOLLARS .

ENG . EL AHMAD I

CHA IRMAN ,A RAO . MINISTR Y OF LAND RECLAMA TION

CA IRO

92413 TCOO K UN~

440098 WOR LDBANK

{) ...

248423 WORLDBANK CAIRO 9/1/1980 ATT: MR, KOEPP MR, HEIDHUES INTBAFRAD

Distri '

Mr. K

Mr.

• /::::.G - 'v\.a.vr /.o.. lnD, -t1on: ca /.-'"-N ,

~ ~ Naylor ~

REURTELEX DEC. 28, 1979 CONCERNING APPRAISAL MISSION FOR WEST NUBARIYA PROJECT. TIMING CONVENIENT REGARDS

El GAMMAL ifll

248423 WORLDBANK

0

FORM NO. 27 - OCR (11-78)

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) IMPORTANT (PLEASE READ INSTRUCTIONS BELOW BEFORE TYPING FORM.I

CH,ss P1 Service: TELEX Date: Jan. 8, 1280 Td!A r-J;:- 2_2 5 3 2 AR BAL UN Orig inate" Ext: 7 688 5

12

- START 1 HERE To FOR MR. AHMADI ABDEL RAOUF, CHAIRMAN, ARAD, MINISTRY OF LAND

CITY/COUNTRY RECLAMATION, CAIRO, EGYPT. RE WEST NUBARIYA PROJECT ND YOUR CABLE

MESSAGENO DECEMBER 30. BY OUR TELEX DECEMBER 21 WE HAVE INFORMED YOU THAT IDA

4

5

6

7

8

9

10

11

12

13

14

15

1

17

18

19

20 END OF

21 TEXT

HAS ACCEPTED GOVERNMENT REQUEST FOR PROJECT PREPARATION FACILITY IN

AN AMOUNT NOT EXCEEDING ONE MILLION DOLLARS. LETTER WITH DETAILS

WAS SENT TO SAMIR KORAIEM FOR FURTHER ACTION. REGARDS BEIDBUES~

ACTING DIVISION CHIEF

NOT TO BE TRANSMITTED SUBJ ECT. --- DRA FTE D BY.

EGYPT: New Lands Dev•t.CWest Nubariyal CLEARANCES AND COPY DISTRIBUTION. Cleared & cc: Mr. T, SwayzeCEM11

DISTRIBUTION WHITE -· File Copy WHITE - Transmittal Copy CANARY - Bill Copy SLUE - Originator to Keep

10

440 9& 'ORLBANK

DATE : 30/12/79

MR , PETER NAYLO R

E G-T ·, N.iv l,,o, J ~ Dsitribution

REC(/V£o Mr.Najlor

.!§BO JAN -J_ AH I(} 3 7 COHMU !CAT

IONS DIVIS/ON

Mr. Koepp

CHIEF DIVI S ION 4 , EMENN PROJECT

R ~ ST NUBARIA SETTLEMENT PROJECT . REFERENCE MR . HEIDHU~S

TELEXES OF NOVEMBER 22 , AND DEC -MBER 25 CONCERNING 8 NK

ALLOCT ION I N THE PREPARAT ION OF THR FIRST YEAR WORK . KINDLY

TELEX IMMAD IATELY \IHETHER BAK 1-V\S ALREADY ALLOTTED THE TOTAL

ONE ~ ILLIO DOLLARS OR NOT.

PLEASE SEND A DETAILED LETTER CONFORM I NG THE ALLOC Tl ON

AND RULES OF PAYMENT . THANK YOU .

AHMADI ABDEL RAOUF

CHA I RMAN•.;,

440090 ~,ORL ANK

=~J~~=:x~. ~--' r.;cti." • - .. ~,,t l"ei.

Tj' ... , • • ... ,-

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sj

Po' ,·, ft:;1-1'4,.r' ~ - ~~f, .D .. J!jti,J.,$ 93762 REGWA U1 T .0 fl IC · ·.,. ' 1 0 ------

---- ·------

Ms. M. Susan Ueber Raymond, PHU

Harold w. Messeuge~

Terms of Reference - EGYPT - Appraisal of

January 7, 1980

New Lands Development Project (West Nubariya)

i. On or about January 13 you will arrive in Egypt to join the apprai al mission led by Mr. P. Economides and will assist 1n appraisal of th bilharzia control component of the New Lands Development Project (West Nubariya).

2. While Dr. G. Webbe (consultant , separate terms of reference) will assess the technical and organizational asp~cts of the component, you will be responsible for the compon nt's fiscal feasibility and cost analysis. In this context you should focus on:

(a) consolidation phase investment and recurrent costs of th proposed component, including molluscicidiug and chemo­therapy progra111 activities in Upper Egypt, Giz, and West Nubariya as appropriate ;

(b) budgetary capability and projections of the Ministry of Health for financing recurrent costs of bilharzia maintenance phs sin ~he component con olidation areas ;

(c) details of the compon nt budget.

3. You will work clos ly with Dr. Wehbe in assessing the above elements for 11 proposed control technical options. Upon your return to Washj_ngton you w1.ll preparG full Back-to-Office report.

Clearance and cc: Messrs. T. Swayze, EM1 and P. Economides, EMP cc: Messrs. J. Evans and B. Lies, PHN

HSUeber P..aymond/HWMeaseng r:va

OFFICIAC FICE COP

FORM NO 27 - OCR ( 11 78)

Class of Ser v ice

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) ~ / (\..,; R ANT (PLEASE READ INSTRUCTIONS ELO E: P TY G F ~

TELEX o ato J anua r 4 1980 ____ _

0

4 START 1 HERE

3717 AFDEV 74788 T elex No. ___ -------- Orig na tors t:. t _ _ _ 2

MR. I.B.C. JOHN, DEPUTY DIRECTOR OF PROJECTS, AFRICA TO.__ ____________________ _

CITY /COUNTRY .__D_E_V_E_L_O_P_M_E_N_T_ B_A_N_K_,_ A_B_I_D_J_A_N_, _ I_v_o_R_Y_ C_O_A_S_T_ . -

RE YUR CABLE OF JANUARY 2. WELCOME AFDs INTEREST IN MESSAGE NO 1----------------4

5

6

7

PROPOSED NEW LAND DEVELOPMENT PROJECT FOR EGYPT. PL ASE

INFORM DR. BERTHOUD THAT DR. GERALD WEBBE BANK CONSU TANT

BILHARZIA ADVISOR WILL BE IN CAIRO AT SHERATON HOTEL FROM

JANUARY 12 TO JANUARY 20TH. HE WILL BE JOINED BY BAK

8

9

STAFF ECONOMIST MRS. SUSAN iV~BER RAYMOND WHO IS STAY NG AT

MERIDIAN JANUARY 12-13 AND THEN MOVES TO HILTON. MR ECONOMIDES,

10

11

12

13

14

15

17

18

19

20 END

OF

21 TE XT

MISSION LEADER FOR PROJECT ARRIVING EGYPT JANUARY 15 FOR FOUR

WEEKS AND STAYING WITH OTHER MISSION MEMBERS AT HILT 1N.

REGARDS, KOEPP. WORLD BANK.

El

! EGYPT: New Lands

cc: Messrs. Economides,

OISTRIBUTION. WHITL F IC Copy w lJTE T,ansrrittal Copy CANAR 'l Bl I Copy itor to Keep

10

.. \~'ti~ J i,. -is \ -, ; s:) C1\'3L: S e,'\ U\

440098 \'tORLBANK

3156.5 ULG G

31.1 2 . 79 TELEX REF 234

FOR FRANZ HE I DHUES , EMENA PROJECTS IV: EG YPT .

RI~ Distribution: fca

.Mr. Naylor /"'.

.Mr. Koepp

1. THANKS YURTEL 28/12 RE PPF FOR WEST NUBARIYA DES IGN APPROVED .

2 . ALSO FOR DATES OF APPRAISAL MISSION AND P . NAYLOR MOVEMENTS .

SENDER WILL BE I N ALEX/CA I RO 11/1 - 18 /1 ON VISIT TO NUBAR IYA

DEVELOPMENT TRIALS ANO TO COLLA TE LATEST DA TA FROM TRIALS FOR

THE INFORMATION OF BANK'S MI SSION : WOULD APPRECIATE CONTACT

POI NT(CAIRO HILTON) ON/ABOUT 17/1, OTHERWISE CA RE OF ARAO .

3. SENDER AMENDIN WASH ING TON TRAVEL IN LI GHT OF YOU R SUGGEST ION

25 / 2 , BUT WILL CHECK WIT H YOUR OFFICE I F EARLI ER VISIT

NECESS ITATED BY OTHER PROJECTS .

4 . BEST WISHES FOR 19 80 .

JACK GODDARD

HALCROW-ULG LTD,SW I NOON , UK .

::i 1565 ULG G

440090 WORL8ANK

EMENA

.t;GF .ClJLTllR.E DIVISION I'. -q('n 'd -~-/-~ _ No~ __

~~~~;l~ - 41.ile .· . . ----------------------

-------------------P4 11n~ T~rt"·•ctf OoS: T:,,.,,."l~~~t !=:~n T -" -·f"'~,9~~

Pr9 j el NA.rre ~-4-?:-_?l:!'r/ '-if-et1,,1.. - ---- - - -- -- - - ·-· -·. ...

•,oan/Cred it .'o _ ·-- _

- .... - ··-··· --- ~

248423 WOR LDBANK E & T: "'1tw-~ .DJw-. Dsstribut-on: fca

INT BAFRAD k, . Jl

1 1'1 Mr. Koepp

Mr. Zaidan

\•J ASH I NG TO N

BB9148 - ATTENT ION SWAYZE STOP RE YU RCABLE OF DE CE MBER 28TH CONCER­

NING NEW LAND DEVE LOP MEN T PROJECT WEST NUBAR IYA IN EGYPT STOP EYE

WOULD LIKE TO CONFIRM ADF'S INTEREST IN FINANCING TH E BILHARZIA

CONTROL COMPONENT OF THE PROJECT STOP OUR DOCTO R BERTHOUD CO MMA

HEA LTH EXPERT WILL JOI N YOU R MISSI ON FROM JA NUAR Y 12TH TO JA NUAR Y

20TH WHEN THAT COMPONENT OF THE PRO J ECT WILL BE APPRAISED STOP

GRA TEFUL PROVIDE MORE INFORMAT IO N CONCERNING HOTE L AND OTHER TRAV EL A

RR

EEE ARRANGEMENTS AND YOUR CONTACT IN EGYPT SO THAT DOCTOR BERTHOUD

WILL BE INFORMED ACCORDINGLY STOP REGARDS

JOH N

AFDEV

CO L. BB9148 -

31/12/79 AT 14 .00

3263 AFDEVC Cl tl}l

248423 '/ORL DBAM K

FIN++

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,, .

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DA TE: ~0/12/79

MR , PETER NAYLOR

ChlEF OIVISI O, 4 , EMENN PROJECT

• -------·c ----.,

·- ! ~ ... ,

. . . ' .

..... .. - . -~ . •' ' ~ , / Dsit-ributi()n

Mr . Naj:lo r /

Mr. Koep;/

RE~\ SE TTLE i.lE T P~OJECT . REFERENCE MR. HE I DHUES

TELEXES OF OVEMc3ER 22 , AND DECEMt£R 25 CONCERN I NG SAN K ·,r;- .,·"" :., .\' •

... _ . . ,

ALLOCT IO I N THE PREPAF<AT I ON 0F THR F I RST YEAR r!ORK . Kit-IDLY ···;

TELEX. f :.cli.lAO l A TEL Y WHE ThE R BANK W\S ALR£AD Y ALLOTTED TH:: TOTAL " ...

ONE MILLI ON DiJLLARS OR NO T.

PLEASE SEND A DETA I LED LETTER CO, FvR··,11 i'JG THE ALLOCA Tl ON

AND RULES OF PAYMENT. THANK YOU.

AH MAD I AdDE L RAO UF

937(, 2 REChA 0. ·

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ARAB REPUBLIO OF EGYPT

MTh"'ISTRY OF AGRICULTURE

MINISTER'S OFFICE

Dear Mr. Naylor,

3\ 12

:ss i gned to :£it':_!P=x/-E1£J~~~

~i io rf> '', ,1 r e~ ~Ji~ ---------~~I/&? _____ ' Fi l ing I ,~~r n i ~o~ : ,,..o ject ,.,. ... !"\"'a . ·

Pr9j"~-c Name ££i.!::. ~ H ... - - ----------------Loan/Credit No -------

79

I would like to inform you tha.t a meeting was held in my office on December 2, 1979 with Mr. H. Sha.bana, Chairman of Huba.seed and mesers Bedford, Holden and Happy from the ULG Consultant firm, we agreed during the meeting on the following:

1- Nu.ba.seed will give free hand to ULG to apply modern administration systems on an area of 3000 fedd.ans in farm 5, if the results were satisfactory after one year, these systemswill be repeated in other areas, Huba.seed will provide all the equipment needed by ULG.

2- ULG will carry out training programs for the agronomist, technicians and drivers working in Nu.baseed.

3- Nubaseed will consult ULG in all the matters concerning the company.

4- All contacts of ULG with the Ministry or International Organizations shall be made through Nu.ba.seed.

You will find Vattached herewith the minutes of the Horticultural Technical Committee meeting held on December 7, 1979.

Mr. Peter Naylor Chief, Agriculture Division IV EJIENA Projects Department fhe World Bank 1818 H Street, N.W; Washington DC, 20433 u.s.A. Encls (1)

Cordially yours,

~\N~ Prof. Yussuf Wally

Chairman, Agricultural Development Committee for Foreign Aids

RE.CE\\lt.t· \~ ij j~\\ 2'3 \>~ ,~ \ s n~coM\~G ~1~\L Ut>H1

- .

Horticult ural l'echnic.al C01r.mit -~e Meeting, ~ December i979

6:00 P.M .

Present: His Excellency , Dr . M. H. Dawood, Ministe r of Agriculture all members o f the Cormnittee except Dr . M.M. El-Azzuni UC personnel : Drs . R. Soost , L. Rappaport, J . Harrington, C. O. Hesse , Co-Director, UCD. Observers .

Subj ec t: Two proposals were introduced by Chairman Dr . K.R. Stino: 1) for an integrated research program on Cucurbits, and

22 for the improvement of garlic cultivars, with sp ec ial attention to early maturity, medium-sized cloves, good storage traits , and, if possible~ disease resistance .

Both proposals were adopted ; to be s ent to Davis for concurrence . It was suggested that the garlic proposal he treated as a " Technology Traa.sfer".

Dr. Stino reported that each activity should have an extension component , and concurrence with Dr. L. Rappaport that the

extension personnel be pro fessional scientists in the r espec tive fie lds.

~ ally r eEO!ted t hat an effort would be madP. to organiz a demonstration vege table seed model farm as a join t venture between the Noba Seed Company and a ll .S. See d Comp any wit h Dr . J . Harrington as a participur.t . Hi s Excellen cy , Dr. M. M,. Dawood pointe d out that the concurrence ~ the World B~rnk (current ly contributing to the Noba Seed Cou1 ~elo ment) would be required .

His Excellency , Dr. Dawood led a broad rangin g discussion on seve ral topics , including the above , and the problem of black knot of olive (point ed ont by Dr . H. H. Ha rtmann } olive pr Jpagat ion ,

I in,i tia t i on of r esearch on grap e s , a Pd surama riz~d h i_s r err,a rks by re it e ra t ing the high priority given to t he c itrus activity by the Ministry of Agricultur e .

Mee t inE adjourned 6 : 50 P .M.

Att est : C.O . Hesse

FORM NO. 27 OCR (11 -r78 )

WORLD BANK OUTGOING MESSAGE FORM (Telei:iram, Cable, Telex) IMPORTANT (PLEASE READ INSTRUCTIONS BELOW BEFORE TYPING FORM. I

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Cla ss of Service: ________________ Date : 1 2 / 2 7 / 7 9 76885 Telex N o.: - - -------------- O r ig inato r s Ext : ______ _

1 HERE TO>--------------------------

CITY /COUNTRY -------------------------MESSAGE NO,-----------------

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SUBJECT:

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BOOK OF FOUR

Dr. Adel E z z y Technical Advisor to Minister of

Land Reclamation Ministry of Land Reclamation f Cairo-Egypt

TELEX/LT:

Mr. Samir Koraiem Undersecretary Ministry of Economy Cairo-EGYPT

'\

Vrl9 tti 7

TELEX: 927-348 GAFEC UN

3. Mr. Mohamed Makhouf Undersecretary ; · Ministry of Irrigation 'flvi l l- \ Cairo-Egypt

TELEX/LT:

Dr. Almotaz Mobarak Undersecretary of State f Ministry of Health Cf 'J7- 7°38 Jl M Hf

Cairo-Egypt LT: lilJ I J

DRAFTED BY:

--------+---- ----CLEARANCES AND COPY DISTRIBUTION: AUTHORIZED BY ('\lame and S19naturel

DEPARTMENT

10

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CABLESECTION __ ....

DIS F'IBUTION WH rE -,,,. Copy WH rE rrarsMitta C'opy C'ANARY E ii C'opy ,LUE O 1')1nator o Kc p

CA

-, I I

FORM NO 27 • OCR (11 78)

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) IMPORTANT ( LEASE READ INSTRUCTIONS BE QI/II B E TYPING FORM.) ~

ClassofService: __ (see attached) Date . 12/27/79 76885

~~~~~~---------- Originaturs t. .. Telex "lo . : ___ _

12

0

· START 1 HERE TO DR. ADEL EZZY, MINISTRY OF LAND RECLAMATION AND MR. I AMIR KORAIEM,

CITY/COUNTRY UNDERSECRETARY, MINISTRY OF ECONOMY COPIED MR. MOHAMED MAKHLOUF,

MESSAGE NO

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UNDERSECRETARY, MINISTRY OF IRRIGATION AND DR. ALMOT Z MOBARAK,

UNDERSECRETARY OF STATE, MINISTRY OF HEALTH. RE WES I NUBARIYA

PROJECT. PROPOSE BANK MISSION TO ARRIVE CAIRO ON JA UARY 15 FOR

ABOUT FOUR WEEKS TO APPRAISE ABOVE PROJECT. MISSION MEMBERS AND

NATIONALITY FOLLOW: ECONOMIDES, MISSION LEADER, GREE SEMICOLON

DONOVAN, NEW ZEALANDER SEMICOLON MONTEITH, AUSTRALIA SEMICOLON

SHOESMITH, BRITISH SEMICOLON PILGRIM, BRITISH SEMICO ON AND WEBBE,

BRITISH. MISSION WISHES TO MEET AND DISCUSS IN DETA L PROJECT

FEATURES AND IMPLEMENTATION WITH GOVERNMENT OFFICIAL FROM MINISTRY

OF LAND RECLAMATION, MINISTRY OF IRRIGATION, MINISTR OF AGRICULTURE,

MINISTRY OF ECONOMY, MINISTRY OF HEALTH AND FROM 0TH R MINISTRIES

INVOLVED IN PROJECT IMPLEMENTATION. MISSION ALSO WISHES TO VISIT

PROJECT AREA DURING LAST WEEK OF JANUARY. PLEASE CA bLE SOONEST IF

MISSION TIMING AND PROGRAM CONVENIENT TO YOU. REGAR S HEIDHUES,

ACTING DIVISION CHIEF

I'

Cleared & cc: Mr. T. Swayze(EM1>

cc: Messrs. Donovan, Monteith,CEMP Acting Division Chie ~,.l:3

1

_E~PA4 Shoesmith, Pilgrim(Consultants) .;v-1

()IC,T F<IBL T l" WHI rE- F1 C >PY WH TE Trar.s!Tl 1tta Copy CA AR -r B II a >Y o-,-,- ><--

, . . .

. .. 79 o:c 23 p· 5: 50

CA BLE s.:c I '

0

FOFIM NO 27 OCR (11 78)

WORLD BANK OUTGOING MESSAGE FORM (Telegrarr "'~ (PLEASE READ INSTRUCT B

TELEX Clas! t'i Y' (\r- 3 71 7- A FD EV Tele ~ow'1 ----- Orig, .. _ or r

DECEMBER 27 74788

_____ Date

, Telex\ .I

• START MR. I.B.C. JOHN, DEPUTY DIRECTOR OF PROJECTS, AFRIC N DEVELOPMENT 1 HERE TO

CITY/COUNTRY BANK, ABIDJAN IVORY COAST.

MESSAGE NO

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RE NEW LAND DEVELOPMENT PROJECT WEST NUBARIYA. WORD BANK MISSION

SCHEDULED ARRIVE EGYPT ON JANUARY 15 FOR FOUR WEEKS TO APPRAISE

ABOVE PROJECT. DR WEBBE BILHARZIA SPECIALIST WILL E IN EGYPT

FROM JANUARY 12 TO JANUARY 20 TO APPRAISE BILHARZIA CONTROL

COMPONENT. HE WILL BE ASSISTED BY BANK STAFF MEMBE MRS

VEBER-RAYMOND IN COLLECTING COST/EFFICIENCY DATA. LEASE ADVISE

IF AFD INTERESTED IN FINANCING PROJECT BILHARZIA CO TROL

COMPONENT AND IF SO IF ANY OF YOUR STAFF WOULD LIKE TO JOIN

APPRAISAL MISSION. REGARDS. SWAYZE. WORLD BANK.

~l OT TO BE:. TRANSMIT fC

EGYPT: New Lands

cl. with and cc: Messrs. Economides, K8pp o/r

+ Swa~y-z-Towns __ S. Sway_z_e,_ Act. OLv

D1S~f-lBUTION VvHI Ee F'1 e C'lPY

EMENA 1A r-­lCHECKED t-Ut

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FO RM NO 27 OCR 11 78 )

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) IMPORTANT (PLEASE READ INSTRUCTIONS BELOW BEFORE TYPING FORM.

V Class of service : TELEX /LT Date: 12/26/72 ~ I ' TelexNo .. 44844 (A/B. l:fALWIL G} OriginatorsExt. 76885 ?'/ (~ ~ 12 10 fo!Z--~ ---------------------E-Gr-T;T"'""N-.DNl>---~---b- w- . -

0

- START 1 HERE To FOR JACK GODDARD, HALCROW ULG LTD, SWINDON, ENGLAND. REYURTEL

CITY/COUNTRY DECEMBER 20. AAA PETER NAYLOR WILL BE ON HOME LEAVE IN LONDON UNTIL

MESSAGENo_J _A_N_U_A_R_Y_ 1_7_. __ F_R_O_M_ J_A_N_U_A_R_Y_28 TO FEBRUARY 22 HE WILL E IN EGYPT AND

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PORTUGAL ON MANAGEMENT TRAVEL. EYE SUGGEST YOU POST ONE YOUR VISIT

TO WASHINGTON UNTIL HIS RETURN ABOUT FEBRUARY 25. A THAT DATE,

WEST NUBARIYA APPRAISAL MISSION SCHEDULED VISIT EGYP FROM

JANUARY 15 TO FEBRUARY 15 WILL HAVE RETURNED TOO. BB PROJECT

PREPARATION FACILITY FOR ENTIRE AMOUNT HAS BEEN APPR VED BY BANK.

D. LLOYD WAS INFORMED BY TELEX ON DECEMBER 21. REGA DS FRANZ

HEIDHUES, ACTING DIVISION CHIEF

EGYPT: New Lands Dev•t.CWest t'

[) RIBU I 1N: vVH TE- - F- ,e Cc1y WHITE Tra 1srnittal Copy

EMPA4

CANARY - 81 I Cc - o,,g, 1a•or t Kee

OISP. T HE)

\ 1979' DEC 27 JI 6: Li 7 ·.

CABLE SECTION

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440098 WORLOBANK 31565 ULG G Dist ·bution sj

Mr. Naylor

21 . 12 . 79 TELEX REF 2?8 Mr. Koepp

FOR ECONOMIDES ROOM D 707

RE DONOVANS PHONE CONVERSAT ION WITH GODDARD YESTERDAY . SHANKLAND COX PHONE NUMBER IS (01) 32~ 32&3 . CONTACT T I M RICHARDSON . FOR

PLANt'ING PURPOSES ULG AND CDC GRATEFUL INDICATION OF PLANNED DATES FOR WEST NUBARIYA APPRA I SAL MISSION .

SEASONA L GREETINGS . EMENA

YNER

------ .. -31565 ULG G-..

440098 WORLDBANK

p , .. (' .• ,-. I

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FORM NO. 27 OCR ( 11 78)

WOR L D BANK OUTGOING MESSAGE FORM (Telegram, Cable. Telex) IMPORTANT (PLEASE READ INSTRUCTIONS BELOW BEFORE TY ING FORM.)

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CITY/COLIN TRY

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Class o f Serv ice: _ _ ______________ Date : _ >(l_'/M:_ ~ ___ 'i/'H/.. ___ 1_2_/ _2_1_/_7_9 _ ___ _ 76885 Telex No.:---------------- Originators E x t :--- ---

I

L.

3.

SUBJECT:

BOOK OF THREE

Mr. Ahmadi Abdel Raouf Chairman, ARAD Ministry of Land Reclamation Cairo-Egypt

12

TELEX: 925 39 ARBAL UN

Mr~ Samir Koraiem Undersecretary L----=.f~ Ministry of Economy r-, Cairo-Egypt

TELEX: 927-34E GAFEC UN

Mr. D. G. Lloyd, Halcrow-ULG Consultants Burderop Park Swindon, Wiltshire, SN4 OQD, England

TELEX: 44844 (A/B Halwil G)

I

NOT TO BE TRANSMITTED DRAFTED BY

CltARA'\ICES AND COPY DIS ... l'!IBu'"ION AUTHORIZED BY (Name and Signature) .

DEPARTMENT

~ ~· I I IN .... W "' 1R USE OF CABLE SECTION CHECKED FOR DISPATCH

[)I Sr~ L Ur ION WHITE F le Copy WHlf rra 1sm.ttal Copy CANARY BIi C' '>Y nL , Orr 1ri tc r •0 Kc "J

10

FOR"'1 NO 27 • OCR (11 78)

WORLD BANK OUTGOING MESSAGE FORM (T le m, Cable, Telex) ORTANT (P EASE READ INSTRUCTION BE:LO ~ t:lE E '!'PING FORM.I

(see attached) 12/21/79 --- Date: --,,--.,,..--------

Telex No : ___ ------------ Originators Ext: __ 7_ 68 8 5 Class of Service : _

12

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· START 1 HERE TO FOR MR. AHMADI ABDEL RAOUF, CHAIRMAN, ARAD, MINISTRY OF LAND RECLA-

~TY~OUNTRY MATION, COPIED TO MR. SAMIR KORAIEM, UNDERSECRETARY, MINISTRY OF

MESSAGE NO

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ECONOMY, AND MR. D.G. LLOYD, HALCROW-ULG CONSULTANTS RE WEST

NUBARIYA PROJECT. PLEASED TO INFORM YOU THAT IDA HA ACCEPTED

GOVERNMENT REQUEST FOR PROJECT PREPARATION FACILITY NAN AMOUNT NOT

EXCEEDING ONE MILLION DOLLARS. THIS DOES NOT COMMIT IDA TO FINANCE

PROJECT ITSELF. IN PARTICULAR, EYE WOULD LIKE EMPHASIZE THAT BANK

10

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WILL NOT FINANCE PROJECT UNLESS RATE Of RETURN I$ SA t lSfACTORY~ .

LETTER IS BEING SENT TO MR. SAMIR KORAIEM FOR FURTHER ACTION. PLEASE

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SEND COPY OF CONTRACT SIGNED WITH HALCROW-ULG BEFORE SUBMITTING

APPLICATION FOR DISBURSEMENT. REGARDS HEIDHUES, ACT NG DIVISION

CHIEF

EGYPT: New Lands Dev't. Proj.CIWest Nubariya> _.// PEconomide

Cleared & cc: Messrs. Swayze(EM1)& Fran-m~ Schwenneker(EMP)

cc: Mr. Hakim(CTR) Acting Chief,

LJl':>TR ' l:ll,TION· WHIT[ le c.opy Wtil T •a-, ,, ttal Copy C.ANAF<v [a uE >rig 'la•or t Kee!C

44009

.:,1065

20 . 12 . 79 TELEX R_ F 22 _

FOR PETER 1'-iAYLOR, EMENA PROJt::C T IV:

ECsT' ~ ~?, b..w-Dist ri but ion

·RECEIVE1tJ" · Naylor

1979 DEC 20 PM I: 58

COMHUNIGATIONS DIVl~IO

?/V /IO '

~Y: PLAN TO VISIT ASHIN TON FRO! APPROX 2 TH JANUARY TO 10T

FEB UARY t.t 1D WOULD FPR CI ATE YOLJR COt Fl MATIGr· THAT YOU \, I LL/ LSO

I i ASH I NGTOI • 1Y VISIT I LL FOLLO\' FURTI-E TALKS IN CA I RO JI TH

AR,.D ON PROG _ss OF • tu {l y o-vE OP IL.. T TRIALS,INCLUOI GD TA

T n SFER On._ A K ' S PR~.I SAL TEA /\ D PROGRAM.il l , OF S COND

YEAR TRI LS JT, RT IN 1ST : THI 0 LA TT LC;.L 1,-=:s

nov-TA I Lll'~G ' I TH CU E~.T SEI S01 1 ' S 10 K P Rr. P - A TI O I FOR Tf-£

P, O·Ril ,LD EXPA 1v!ON OG THC: TRIALS TO SOM 140 FEODANS .

VOULD AL O V,_L O 1E OP ORTU1 I TY TO PROGRE ·s Tl c. SEED0 PROJ'-CT

CHA I ES A OUT ~ HI CH JOHM EDFORD Is Rl Tl r G YOU f·OLLO'vl r G HI s

R Cc.NT VIS IT .

HOP l NG TO REC IV E ORD Tf AT T ,_ SECO~ D TRA CHE FOR TH- U8. F! I YA

DETA I LS DE::, I N PL N T At "F= f'-D TO GOE SO Tf-V-\T HA.LC OY,-ULG 'I y

Pt .OC _ED WI TH TH I S hO r;K .

WI TH S ASONS G .E TII GS .

JACK GODDA D

'.:l156:i UL' G

4Li0098 'OR LBA K

EMENA GR C lT,Ti mr nT T"!. T ' N H .

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The World Bank / 1P.H; II 'i_trecl, N.W., W.1,hinglon, D.C. 20411, U.S.A. • TclPphont•: (202J 477-1234 • Calilcs : INTBAFRAD

Mr. Samir Koraiem Undersecretary Ministry of Economy

Foreign Trade and Economic Cooperation

8 Adly Street Cairo-EGYPT

Dear Mr. Koraiem:

December 20, 1979

>

I am pleased to inform you that IDA ctccepts your Government's .request for an advance in an amount not exceeding US$1 million to finance preparat_ion of detailed design and tender documents for the New Lands Development Proj.ect _(West Nubariya).

In order to proceed with the final at:,p.roval by IDA of the above project preparation facility, we need to receive the attached letter duly signed by H.E. the Minister of Economy, Foreign Trade and Economic Cooperation, Dr. Hamed El Sayed.

Please note that the grant of this advance does not constitute or imply any commitment on the part of IDA to finance the project. More specifically, I would like to emphasize that the Bank will not finance the project unless the economic rate of return is satisfactory.

/ N/A I attach to this letter the Final Provisions Applicable to Advances

for Project Preparation, published by the World Bank and IDA on December 1, 1976.

Attachments

Sincerely yours,

Townsend Swayze Acting Division Chief

Country Programs Department Europe, Middle East and North Africa Region

Projects Department

Cleared with & cc: Mr. Economides(EMP), F. Heidhues(EMP)

cc: Messrs. Abu-Akeel(LF.G), E. Hakim(CTR)

PEconomides/mom

•

W( ) BANK / INTERNATIONAL FINANCE CORPOR. N

TO: Mr. M. December 18, 1979

FROM: Ernest Stern, VP,

1. The second tranche ($500,000) of the PPF for the Egypt New Lands Development Project is approved.

2. I do not understand memorandum of November 28. here - merely a reasonable readily on what looks like not ours.

the comment in Paragraph 7 of Mr. Benjenk's There seems to be no lack of flexibility

concern not to spend Egypt's money too a marginal project. The risk is theirs -

3. Because of the uncertain rate of return of this project, I would like to have this matter specifically drawn to the attention of the Egyptian authorities when advising them of the availability of the additional PPF funds. We should state explicitly that we will not finance the project if the ERR is not satisfactory.

4. More generally, this is the second project with an apparently marginal rate of return in Egypt within the year. Are we looking in the wrong places and sectors?

Attachment

cc: Messrs. Baum Benjenk o/r Knox

EStern/lms

EGT- Ylw t.o.'11.cl~ Dev, oe,r..., 1 ~t:/r r CD

SlJ ()

-,;,_ CD...+ "8 0 ..... 0 -::::::

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TO

FRO .I .

UBJECT

WOR LD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM Mr. Hans-Eberhard K8pp, Divisic:1 Chief, El-"..lA

To\oltlsend~ayze, Sr. Loan Officer, EMlA

DATE .

EGYPT Agriculture, Rural Development, and Population Ba_k-to-Office Report

1 . Following are some notes, largely about rural and agriculture development, based on discussions held in Egypt from November 18 through November 30, 1979. In addition, I very briefly mention joint discussions with several project missions , which will be covered more extensively by the respective project officers . The trip included a one and one-half day visit to the Governorate of Minya where I joined the FAO/CP follow-up reconnaisance team. I also worked with a Bank/FAO-CP mission that was preparing a fisheries project and a Bank population supervision mission. Finally , I met with a number of AID personnel :L, order to continue to maintain close coordination and cooperation on our respective agricultural/ rural development policies , prog;ams, and projects. (See Annex I for a list of people met ).

Decentralization - Government Commitment and Some Problems

2 . The Government is committed to decentralization . The question is how fast will it proceed . Decentralization has it roots in the agrarian reform measure enacted over 25 years ago . With the passage of the most recent Public Law (No. 43 in 1979), President Sadat has reaffirmed a.nd enunciated the Government's determination to strengthen local government at the governorate, district, and village level and to increase their budgetary responsibilities.

3 . Initially, local government in Egypt was highly centralized, in which one main representative of the central government, the "omdah" or mayor , ruled the community. Subsequently,a local council system made up of elected members, a few appointed members, and ministerial representatives was introduced. More recently (with Public Law 52 in 1975) a two branch local government system was established, creating at each of the three local jurisdictional levels (governorate, district, and village) an elected council of local representatives freely chosen by their constituents and a second body, an executive committee,representing the various ministries providing services in the local area. The elected council is supposed to identify needs , consider alternate plans, and propose a budget. The executive committee is responsible for implementing the plans and programs developed by the councils, in conjunction with the central ministries .

4. In 1975, the government strengthened the structure of local government by making the district councils and district executive committees principally responsible for formulating an integrated and balanced program for develop ing the towns and villages in the district. It also took a small step toward providing greater local financial responsibility and autonomy by establishing in the council (or main) villages a special fund for services and development. The fund is based on locally generated revenues and is for

(

r

II

Mr. Hans-Eberhard Kopp - 2 - December 14, 1979

the exclusive use of the local council for independent development projects, both for additional services and income-generating activities. The amount of money available in the special funds is, however, very small. The local government bodies have very little opportunity for generating revenue; they depend on the center for 75% or more of their budget. Even at the governorate level, budget decisions are still dominated &nd largely controlled by the center. Nevertheless, the Government's recent measures could eventually lead to a significant decentralization of the planning and budget process.

5 . Following are some key problems that we should keep in mind in designing rural development projects.

(a ) Need for development orientation: There is an urgent need t o train local government officials. For example, the district head executive officer, who should play a critical role in regional development; has histori­cally been a police or military officer oriented toward security. In the longer run, this position should be filled by officers with a development orientation and commitment; meanwhile, an effort should be made to retrain the current officers . Similarly, at the district there is a lack of experience in development planning and in order to take advantage of the central government's willingness to delegate this responsibility, local officers will need to be t rained . In particular, for example, the local government financial system is dominated by the traditional objectives of control and accountability; fiscal procedures too often block disbursemen~s. Officials will have to be trained to develoF a program budgeting process to establish local goals, local needs, and better data.

(b) The balance between public and private sector activities: What role should the public sector play in rural development? Currently, the government, and donor agencies, are supporting local government involvement in productive, income earning activities - such as the leasing of farm machinery, poultry raising, food processing, etc. However, the positive net cash flows from these enterprises have invariably been derived from the depletion of capital assets rather than from operating profits. The govern­ment tends to replicate enterprises already well-established in the private sector .where experienced managers usually run a competitive and much more profitable enterprise. The government should probably be encouraging, instead, local government involvement in public service investments and to introduce revenues to help pay for these services. However, there is now very little understanding of local revenues and presumably no willingness to pay for local services . Thµs, for the present, the question is how much should the public sector do that is already being done by the private sector; and, in the longer run, how do you introduce a concept of local revenues for local public services.

(c) Responsibilities of elected councils and appointed committees: In theory the local elected councils are responsible for planning for develop­ment and the executive committees for implementing the plans. In practice, the committees do the planning (albeit on a very elementary level because of other constraints mentioned above) and the elected councils play a passive role.

Mr. Hans-Eberhard K8pp - 3 - December 14, 1979

Very few elected councils carry a sense of authority and leadership, largely because they have very limited fiscal power. Now that the appoint ed and elected groups have been formally separated into two bodies, it will be even more important, in order to meet the government's stated objectives, to pro­vide the elected councils with a greater sense of responsibility and to create a close working relationship between the government representatives and the people's representatives.

(d) Inadequate follow-up support for local services: There is universal acknowledgment that local government offices are well-staffed and extensive public services are available. Although these services are pervasive they are very limited and not very effective. Part of the problem may be because the demand for these services is limited, such as for health or agriculture extension. The demand for these services, however, tpaY to some extent be related to a limited understanding of what is available. Not only is there very little financial incentive for the government offie?-rs to work in local areas, but also they often have very few supplies. In the case of health, for example, there are very few medicines in the rural areas, and in the case of extension there is no effective link with improved technologies and thus the officer has a limited package to ex~end to the farmer.

Rural Development Project - ORDEV

6. I delivered the Bank's letter to Vice Minister Zamzam indicating the Bank's willingness to continue working with ORDEV, the need for outside technical assistance (and the possibilities of financing such assistance) to help with project preparation, and the understanding that the primary responsi­bility for preparation rests with ORDEV. Mr. Defrawery and Dr. Selim seemed very pleased with the letter; Vice Minister Zamzam said he would meet me after Dr. Selim's first series of tables was completed, which was due to be ready very shortly. I do not think as much of Dr. Selim's work was to be ready as Vice Minister Zamzam envisaged. In any case, they did not follow-up; and I thoughtit best to wait until early next year (January/February 1980) to meet with the Vice Minister.

7. In discussions with USAID, which among others included the Deputy Director, Owen Cylke, and John Blakton, I voiced our concern that the Bank's past project plans with ORDEV appear to have been overtaken by a rapidly expanding AID rural development program. AID believes our position may be slightly overstated: it is a large country and there is plenty of room for additional project activity. Other things being equal, I said this was true, but ORDEV is a small institution with very limited qualified staff and we did not believe it could readily absorb additional parallel project activities.

8. In any case, in my meeting with AID I clarified that we were now discussing with the government a district (markaz) oriented project based on Dr. Selim's intensive study of ten markazes (see Annex 3). We agreed that this proposal did not conflict with either AID's policy or project plans.

9. AID's project activity is at the council village level. The projects were designed when the government was building up villege local

+

Mr. Hans-Eberhard KHpp • - 4 - . December 14, 1979

government and development. At that time, one of the principle AID rural development consultants had argued that the district did not play an active role in rural development, but it only contributed an unnecessary layer of bureaucracy between the villages and the governorate. Consequently, he argued that the district governing groups would not become a development force. AID's yural project designs are largely based on this principal, which at the time appeared to be the situation.

10. In the last couple of years, however, the district level of government has emerged as the most promising rural development force. Most authority has been shifted from the council village to the district towns. Local financial and development issues are first taken up at the district, which now determine the allocation of government funding to the villages. This shift in responsibility would seem to make very good sense, because while the village areas may be appropriate for certain limited tJpes of community development activities and service delivery systems, they are not large enough to be viable units for economic development or economies of scale planning. In addition, it would seem that a district, which encompasses six or seven council village areas, is ideal as an administrative unit for monitoring, evaluation and follow-up. District orientation also facilitates a more balanced rural-urban orientation to development, using the district town as the central marketing point.

11. The only important jurisdictional responsibility left to the villages is the recently introduced local development or special fund which is exempt from district supervision. This fund is one of the focal points of AID's projects, and for small village development activities, the fund approach should be very useful. However, larger, district oriented activi­ties will be able to provide better economies to scale, linkages and inte­gration of a broader range of activities and markets, and will reduce the number of qualified managers and entrepreneurs needed for rural development. In short, the district focus not only appears to make better economic sense, but it should also speed up the process of rural development.

12. We propose that the Bank develop a rural development project keyed to the district. One of the critical components of such a project, as indicated above, will be to train the district government leaders to plan in terms of the entire district region and not only, as in the past, the development issues and prospects of the district town. In view of the institutional limitations of ORDEV, I recommend we again consider possible alternative vehicles for district development, possibly working directly with a group of governorates. In view of their existing commitments and limited staff, as an earlier Bank report pointed out, it is very questionable whether ORDEV now has the resources to expand their conceptual framework, from the village to the district, and to prepare a new project activity.

Mr. Hans-Eberhard K8pp December 14, 1979

Rural Development Project - Minya _ \

/ 13, Because the status of the project will be discussed in Mr. Monteith's back-to-office report, I have limited my comments to the following:

(a) In detailed discussions with the FAO/CP on their first draf~ report, the Bank had emphasized the need to establish in the project a central, strong integrated broad-based development component. Nevertheless, perhaps in part because the appropriate personnel were not available, the follow-up FAO/CP mission did not appear staffed to pursue fully new project directions.

(b) It appears there is, nevertheless, good ground for developing a project that would include much more direct assistance to raise farm productivity (and incomes) for a significant portion of the low income farmers.

(c) Even though at the initial meeting with the mission the Governor did not appear responsive to the proposal for a strong project component of extension cum operational research. Dr. Wally later confirmed that he had discussed such a package in some detail with the Governor who had supported it. Dr. Wally said, for example, that it was agreed that the Governor would have full authority over the region's extension services including selection, maintenance, and size of staff.

(d) The work being done in the governorate under AID's water use and management project is designed for a specific village; but hope­fully, it will be able to provide useful information for the region. In a small experiment plot in the village of Abeuha (about 17 kilometers from Minya), the project team has doubled the average yields of a local white variety of corn, principally by increasing the density of the plant stand, using adequate fertilizer, and spraying the plant leaves with zinc. The largest cropped area in the governorate is maize, and if a project package of inputs can be developed for maize, we should be able to help a large share of the region's farmers.

(e) In addition, in the past few years AID project work in major cereal research may provide improved technical information that could be built into a rehabilitated extension program, and AIDs experiments with credit and small farm management committees to help increase individual farm production might provide useful guidance in the design of the Bank project.

14. In summary, the material appears to be available and there is government support for an agriculturally based rural development project in Minya; it o~ly needs to be packaged.

t

Mr. Hans-Eberhard KHpp - 6 - December 14, 1979

Land Reclamation Policy and Problems

15. Upon instructions of President Sadat, an Egyptian newspaper recently reported that the government expects 1.5 million feddans of land to be reclaimed in the next 5 years by either public or private agencies. The plans of the Ministry of Land Reclamation (see Annex II for an organization chart) provide for the reclamation of over 100,000 feddans in 1980 (almost a 40 percent increase ever 1979) and a total of about 800,000 feddans for the next 5-year period, 1980-84. Investments of the Ministry for 1980 are budgeted at EE 200 million and for the next 5 years, EE 1,500 million; these estimates exclude associated costs covered by other ministries, such as the extensive financing needed for primary irrigation and drainage works. The government program assumes a high rate of new land development by private parties and joint ventures.

16. Some people believe that President Sadat may now be concerned by the slow progress in new land development, and that the Ministries of Land Reclamation and Irrigation feel a renewed pressure to step up the pace of the land reclamation program. The Ministry of Economy is reported as being very skeptical about the wisdom of investing in new lands and the Ministry of Planning appears to continue to favor first the further development of the old lands, and then second, the rehabilitation of recently reclaimed new land areas. Some in the government argue, however, that with the con­tinuing population growth and very limited available agricultural land, it is essential to start opening new land areas on a larger scale.

17. A number of central problems, of course, persist and some may never be very satisfactorily resolved. For example, even though there is some com­mittee infrastructure to coordinate the numerous ministries involved in land development, the system falls short of dealing with key problems. For example, lack of water reliability is one of the most frequently cited pro-blems in the new land areas. The Ministry of Irrigation is responsible for the main water works to the site, but invariably there is a gap in terms of timing and integration with on site development. The operation and maintenance of drainage systems is universally poor, without clear cut responsibilities for upkeep. In addition, there is now no legal structure for water user associations, which could be a key component to the development of new patterns of settlement . Extension services in the new land areas are the responsibility - for an initial period of time - of the Ministry of Land Reclamation, but, in fact, there is no effective extension.

18. The more general problem of choosing settlement patterns (see below) and appropriate technologies is very much open. The government currently is promoting at least seven different types of settlements. In fringe areas, on a small scale, individual settlements are springing up; and in light of this interest, the AID consulting team is exploring a "homesteader" pattern of development. Settlements by cooperatives may also be a potential development channel, but along with the individual settlement efforts, the lack of a clear policy and system for registering land titles is slowing progress . Many of these areas being opened by private parties need assistance to be completed and the government has again mentioned the idea of creating a special land reclamation bank. In addition, the government must do much more preparation work in the areas being opened by private developers. For example, safe pumping levels should be determined, and even though this might lead to some delay, the delay is probably outweighed by the potential risk of too much increase in the ground water table.

Mr. Kopp - 7 - December 14, 1979

~' ,/ \

I

Project Work on New Land Development

19, In their project identification work for AID, the Pacific consulting team is particularly concerned about the "how" of developing new land areas. (AID has agreed to make the Pacific consultants' first draft report available to us later this month .) Currently, as ment .ioned above, significant numbers of farmers on their own initiative art opening new land areas. In pushing for large scale development, however, the team believes much more work should be done toward determining the most effective settlement patterns; otherwise you may introduce a technological system that is not appropriate. For example, the government decision to switch from a state farm managed system to small farm settlements has been very costly. An irrigated system designed for centralized management.and control is not compatible with the smallholder settlement pattern now being considered.

20. One question being asked about the proposed Bank project is how to develop a settler based system that is "ml?-naged", which may include compulsory cropping patterns, marketing arrangements, exten-sively supervised planting, etc. The government was at first puzzled /A when I talked of the Bank's "West Nubariya" project; to them it is the V\ "sugar beet" project -- which highlights . the issue of whether the growth of sugar beet will be compulsory.

21. In the course of their work for AID, the Pacific consultant team has very carefully reviewed the ULG report done for the Bank. They believe that the ULG rate of return calculations are based on optimistic assumptions and include some miscalculations -- all contributing to a more favorable rate of r4turn: yields are considerably higher than levels thus far achieved; price~el~ ~city is not 1.1 piasters but 1,5 piasters; diesel prices are understated at £E 60; costs of some main water works (lifting stations that exclusively serve West Nubariya) have been left out, etc. The _government believes that the answer to the problem of low returns is to plant the area in high cost cash crops and develop agro­industries. In general , the Government talks very optimistically of rapidly expanding cash crops, but there appears to be very little appreciation or understanding of the marketing implications of such a large scale development push.

22. Mr. Anwar was concerned about additional financing in the Bank project area for soil sample analysis. ODA is funding the forei gn exchange for soil testing up to July 1980. After that, for the remaining 18 months required to complete the studies, the Bank proposes to provide retroactive financing under the project. We should again ask the Ministry to submit a detailed request for the funding and t o clarify our retroactive financing procedures.

+

Mr. Kopp - 8 - December 14, 1979

Fisheries Project

23. This project will soon be covered in a separate back-to-office report by Mr. Zulfiqar. However, in the mea •• time, I would like to make the following few points:

a) The successful establishment of two largely independent management companies will be critical for the success of the project. In view of the premium on technology, the companies will have to be able to attract and maintain a staff of highly qualified techni­cians -- to oversee the largest scale aquaculture project areas in the world .

b) Preliminary estimates indicate a very high annual net income of £E 3-3,500 per farm family . The overall rate of return of the project , however , looks low implying a large subsidy. If this i s the case, a formula will have to be worked out to pass a large portion of project costs to the farmer .

c ) Some more work should probably be done to define the marketing situation and to explore the possibility of providing assistance to people who are already fish farming in the area but who will not be directly under the project.

Population Pro1j ects I, II and III

24. The status of Population I and II will be well covered in Dr . Pratt's back-to-office report. I would like to highlight two points :

a) First , the Minister of Health showed a very strong personal commitment to the successful implementation of Population II; he pointed out that FY80 World Bank project activity accounted for one-third of his development budget; and, accordingly, our project work was very important to him and his Ministry;

b) Second, the pending reorganization of the Ministry, following Dr. Serry's death, has not been worked out. Although the Minister and the mission fully agree to the need for reorganization and the main objectives of the reorgani­zation , in practice it will be very difficult to reach those objectives because of the mixed strengths of the personnel involved. In particular, the Bank will have to monitor closely how much effective government support develops for the softcore component of Population II; and, if necessary, to urge subsequent organization and personnel adjustments.

t

Mr. Kopp • - 9 - . December 14, 1979

25. We briefly inquired about the Minister's thoughts for a third project, which would presumably include a strong population component. The Minister expressed an interest in assistance for strengthening the primary health services, emphasizing work on infectious and endemic diseases. The project could extend the current population program to the governorates (currently seven plus a portion of three more) which have not yet been covered by assistance programs. It was also decided, as an exception, to continue to link closely the Bank's support for the bilharzia program with drainage development.

Dairy Project + 26. Dr. Wally's first reaction to questions concerning the. status of the proposed dairy project was that the project could now be funded under the agro-industries project . I raised the potential problem of the limited size of individual sub-project loans under the agro-industries project and, in particular, of course, emphasized the importance of the overall dairy project design to dairy development (e.g., the development and integration of collecting points, chilling centers and a milk trans­port system). Dr . Wally then commented that sometime ago he had told us that the proposed area (Giza) was inappropriate and that the project should be located in the Northeastern part of the Delta (Damietta). I indicated that these suggestions could be reviewed again during project preparation, but I stressed the immediate outstanding need (spelled out in the Bank's November 8 letter to the Minister) to invite the Indian National Dairy Development Board (INDDB) to discuss their proposed terms of reference for a feasibility study. I also pointed out that the fund­ing for the study is already covered under the Sohag-Minufiya project. Dr. Wally said, yes, they would write the INDDB to invite them to discuss their terms of reference with the intent to proceed with project preparation .

Fertilizer (N) Requirements

27. Repeatedly, in spot discussions with farmers and government representatives in the rural areas, people cite fertilizer shortages as one of the main production constraints. AID (Dick Newburg) has just completed a short study of the current supply and demand situation. On the demand side the study accepts that the Government's estimated demand of 570,000 tons of nit rogen (the most commonly used fertilizer) is reasonable. Last year only about 450,000 tons was available, resulting in an estimated shortage of 100,000 tons. The study points out that there have been delays in the production of the two domestic fertilizer plants, but by 1982 Egypt should be self-sufficient in nitrogen.

Mr. Kopp - 10 - December 14, 1979

28. Although there are some US domestic supply issues to resolve, AID is considering a program loan of about $50-70 million to cover the estimated two-year shortfall. USAID, however, is concerned about becoming involved in Egypt's subsidy program. It is uncertain what fertilizer demand really will be when the subsidy is eased. Now most fertilizer is going to cash crops and application rates may be higher than they would be if fertilizer prices were closer to actual costs; the black-market price is below international prices. AID's leverage with a $70 million program loan is also uncertain, in terms of whether the government can be encouraged to take early action to reduce subsidies and lift price controls.

Distribution:

Messrs. Karaosmanoglu (EMl), Naylor, Donovan,. Monteith, Zulfiqar, Economides (EMP), Thoolen, Schumacher (AGP); Messenger, Pratt, Diaz, Franckson (POP); Hassan (Leg); Imam, Zaborski, Kaps (EMl)

TSwayze:orp

Annex 1

EGYPT

Persons Me~t for Discussions

1. Ministry of Economy, Foreign Trade, and Economic Cooperation

Mr. Samir Koraiem Mrs. Fawkia Fouad

2. Ministry of Agriculture

Dr. Youssef Waly Dn Mohammed Kamal Hindi

Mr. Zaki Helmy

3. Ministry of Land Reclamation

Dr. Adel Ezzy Dr. Anwar Rifki

4. Ministry of Health

HE Mamdouh Kamal Gabr Dr. Almatoz Billah M0barak Dr. Kamal Attia

Undersecretary Director, Agriculture Projects

Senior Technical Advisor to the Ministry Undersecretary for Economic Affairs, and Head of Research Institute Liason Officer, Foreign Relations Department

Senior Advisor (de facto Deputy Minister) Senior Advisor

Minister Undersecretary Director - General, Family Planning

5. Ministry of State for Local Government

Mr. Ahmed Defrawery Dr. 1mam Selim

6. Minya Governorate

HE Farouk Afifi Dr. Abd El Tawab El Mohandess

Undersecretary Consultant from the Institute of National Planning, in charge of ORDEV socio-economic survey, and former Undersecretary, Ministry of Planning

Governor Professor of Food Industries, University of Minya.

7. FAO/CP

Minya Mission

Mr. C. Tsangarakis Mr. S. Pillai Mr. A. Delon Mr. G. Sanguinetti

Fisheries Mission

Ms. M. Lizarraga Mr. J. Chabloz Mr. A.G. Apodaca Mr. J. Belt

8. USAID

Mr. Owen Cylke Mr. Ralph J. Edwards Mr. Marcus L. Winter Ms. Jennifer A. Bremer Mr. Gene Miller Mr. John Blaktan

9,. Consultants

Dr. James Mayfield

Dr. Roy Neilson

Dr. Leon Hesser

Dr. Carl Gotch

Dr. John Keene

Service I, Agronomist Service I, Livestock Officer Service I, Economist Service III, Agroindustrialist

Service I, Fisheries Officer Service I, Irrigation Engineer Organizational Training Expert Economist •

Deputy Director Chief, Agriculture Division Agriculture Division Agriculture Division Agriculture Division Rural Development Division

Rural Development Advisor, USAID Checki Contract Water Use and Management Project, USAID Consortium for International Development New Land Development Team, USAID Pacific Consultants, Contract New Land Development Team, USAID Pacific Consultants, Contract New Land Development Team, USAID Pacific Consultants, Contract

Annex 2

Ministry of Land Reclamation

I Minister 1--

Community Development Follow-up

Agency for Rehabilitation and Agriculture Development (ARAD)

Agriculture Companies (6)

Land Reclamation Companies (6)

Green Development Authorities of Sinai and Sharkia; New Valley, and West Nubariya

Planning Finance and Administration

Annex 3

ORDEV SURVEY

The ORDEV survey covers 74,469 individuals under 12,930 household studies of families living in 75 different villages. These villages are included in the following ten markazes:

Markaz

Manzala El Knater El Khairia Shabrakhet .Kafr El Dawar El Badrashean Tema Sohag Kowmambo

·Marsamatrough El K.antara Shark

Major Activity

fish farming vegetables ·a~d fruits agriculture agriculture, industry (textile) agroindustry, tourism agriculture onions sugarcane agriculture, tourism agriculture, fishing

'-

•

WORLD BANK / INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANDUM TO: Files DATE: December 14, 1979

ROM: Mr. Paris Economid

JECT: EGYPT: Pro'ect (West Nubari a)

1. On December 13, 1979, I received a telephone call from Mr. R. G. Hampson of the Commonwealth Development Cooperation (CDC) of U.K. Mr. Hampson was interested to know when the Bank appraisal mission is scheduled to arrive in Egypt and the composition of the mission. He also mentioned to me that CDC is interested in participating with the Bank in the appraisal of the project and to this effect they are preparing to send a mission of two members in Egypt to join the Bank mission. CDC's interest in participating in the appraisal of the West Nubariya project derives from the possibility of their being a cofinancer of the project, in particular, for the sugar factory and/or the estate farms.

2. I explained to Mr. Hampson that the Bank is only interested in appraising the development of the 48,000 feddans in combination with settlement of small farmers and that the sugar factory, the processing plants, and the estate farms are not included in the scope of the appraisal mission. To this, Mr. Hampson's reply was that CDC may also consider the cofinancing of the settlement part of the project.

3. After discussing the matter with Mr. Naylor and Mr. Swayze (acting for Mr. K8pp), I called back Mr. Hampson on December 14 and mentioned to him that the Bank will be agreeable to accept a joint CDC/Bank appraisal mission if we receive from CDC a letter indicating their intention to cofinance the settlement part of the project. I also suggested to Mr. Hampson to contact Mr. Naylor, who will be in London on home leave between December 17 and January 17, and discuss with him the details and conditions of a possible joint CDC/Bank appraisal mission of the project. Mr. Hampson promised to do so as early as possible.

cc: Messrs. Naylor, Donovan, Monteith(EMP); Swayze(EMl), Division Black Book

PEconomides/mom

FOAM 11.0. 759 ( 11 -73) WORLD BANK GROV

-

ROUTING SLIP I DATE

FROM THE VICE PRESIDENT, PROJECTS STAFF

NAME ROOM NO.

~.s--r~ .

APPROPRIATE DISPOSITION NOTE AND RETURN

APPROVAL NOTE AND SEND ON

COMMENT PER OUR CONVERSATION

FOR ACTION PER YOUR REQUEST

INFORMATION PREPARE REPLY

INITIAL RECOMMENDATION ~

\IOTE AND FILE SIGNATURE

REMARKS

..)~~ ~ fo.-ui-7 J ~ E Ht!?"d/tA ~~~~

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EGT-wlOS3 Date received; Deceiu.,er 10, 1979 Date: Decl:!mber 12, 1979

PROJECT PREPARATION FACILITY (PPF)

Request Evaluation

Cotmtry: EGYPT GNP per capita (1978): $_4_0_o ____ _

Sector/Project: Agriculture, New Lands Development Project

Type of case: B. Detailed engineering for first year construction works and preparation of tender documents. Second Advance (approved in principle

Sept 28, 1979).

PPF Advance Requested: $ 500,000 (in addition to $500,000 already approved)

100 % for foreign expenditures.

Within the limit of

(b) $1.0 million (project pre-appraised)

Estimated cost of consultants per staff-month: ~$_6~,_8_0_0 ______ _

Project: to be liR appraised _1_· n_J_a_n..:..u..:..a_ry...::_..:..1..:..9..:..8..:..0 ____________ _

Appears sound based on PB dated November 2, 1979 though new issues

about the project have been raise<f=

Scheduled for Board presentation: __ s_e_:p..:..t_1_9_8_o ___________ __

Date for refinancing: March 31, 1981 as for the first advance

Availability of timely alternative sources of financing: as per para. 5 of original request.

Not available

(see para(s) ----- of request).

Other connnents: The preappraisal mission found the project area lands to be

suitable. However a new issue has emerged~ i.e. whether the ERR estimated at

8-11% would justify further processing of the project (paras. 3-6 of the request).

Since the issue can only be resolved through further project preparation we concur with the Regional reconnnendation, Recommendation: Request meets~ the requirements of OMS 2.15 for a

Second IDA advance of $ 500 , 000 with ....:Ma--=.:r=-c=-h-=--:3:..:l:..;,:.........::1:..:.9--=8:.::1~----------

as the date for refinancing.

cc: Messrs. Economides, Kopp, Rotes, Hakim Ms. Flores

~ FrancisL~th~m:nnn

Warr~ ~ ~--~ Vice President P.rojects Staff

FORM NO 27 • OCR ( 11 78)

WORLD BANK OUTGOING MESSAGE FORM (Telegram, Cable, Telex) IMPORTA T (PLEASE READ INSTRUCTIONS BELOW EFORE ,.YPING FORM.I

TELEX/LT 12/12/79 c.TeldtSesxoN! OS.erv,ce: __ --------:c-2-:-6---:-4-c/c-E-G ________ Date: -----=7=-67"8=-=a-=s ________ _

--------------- Originators Ex"------

0

4 START 1 HERE TO FOR MR. LENNART KONIGSON, ORESUNDSVARVET AB, S-261 2 LANDSKRONA,

CITY/COUNTRY DENMARK. RE YOUR TELEX DECEMBER 10 CONCERNING WEST UBARIYA PROJECT.

MESSAGE NO 1-D_U_E_ T_O_ M_Y __ A_B_S_E_N_C_E_ O_N_ A_N_N_U_A_L LE AVE AND TO OTHER ST AF F INV O L V EM ENT IN

4

5

6

7

9

10

11

12

13

14

15

1(

17

18

19

2!) END

OF

21 TEXT

NEGOTIATIONS DURING WEEK JANUARY 7 TO 11 EYE SUGGEST TO POSTPONE

YOUR VISIT TO WASHINGTON UNTIL AFTER PROJECT APPRAIS L WHICH IS

SCHEDULED FROM JANUARY j5 TO FEBRUARY 15. HOPE THAT THlS POSTPONE~

MENT WILL NOT CAUSE YOU ANY INCONVENIENCE. REGARDS NAYLOR,

INTBAFRAD

EGYPT: NEW LANDS ,-..1\•D {)

'ISTRIBJfON · WHIT~ Flte("opy WHITE Transtl'1ttal Copy " R l.. y 6L LJE: Or c-;.-,at r to Kl'ep

197 r" ? r,,, 7: L. 4 -v - l tl '

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December 11, 1979

/ EGYPT -- LAND RECLAMATION POLICY

l. Upon instructions of President Sadat, an Egyptian newspaper recently reported that the Government expects 1.5 million feddans of land to be reclaimed in the next 5 years by either public or private agencies. The plans of the Ministry of Land Reclamation provide f9r the reclamation of over 100,000 feddans in 1980 (almost a 40 percent increase over 1979) and a total of about 800,000 feddans for the next 5-year period, 1980-84. Investments of the Ministry for 1980 are budgeted at £E 200 million and for the next 5 years, £E l,500 million; these estimates exclude associated costs covered by other ministries, such as the extensive financing needed for primary irrigation and drainage works. The Government program assumes a high rate of new land development by private parties and joint ventures.

2. Some people believe that President Sadat may now be concerned by the slow progress in new land development, and that. the Ministries of Land Reclamation and Irrigation feel a renewed pressure to step up the pace of the land reclamation program. The Ministry of Economy is reported as being very skeptical about the wisdom of investing in new lands and the Ministry of Planning appears to continue to favor first the further develop- · ment of the old lands, and then second, the rehabilitation of recently

· reclaimed new land areas. New land development costs are high with a 111oderate rate of economic return and many also belieye are high in risk. Some in the Gove=-nment argue, however, that with the continuing population growth and very limited available agricultural land~ it is essential to _start opening n_ew land areas on a larger scale.

3. In January the Bank plans to appraise .a land development project covering an area of about 50,000- feddans. The estimated project cost is $286 million, of which about $142 million would be in foreign exchange. Al.though the project return may b~ moderate and risks may be -higher than ayerage, we believe it is important to help the country to develop a much better approach to new land development. The past efforts at land reclama­tion have been disappointing, in part because the areas were run by Govern­ment companies. In response to the Bank's urgings, the Government . is now proposing that new land settlement be based ori a smallholder settleoent pattern; and the development of this. approach is one of the main objectives of the Bank project.

4. U.S. AID is exploring the possibility of rehabilitating an old new land area, as well as some pilot new land development. AID, however, continues to be ver~ skeptical about investment in new land areas because of the past results and limited success. They are also concerned about finding a successful pattern of land settlement and of choosing appropriate technologies. For exruiple, the irrigation system on most of the old new land areas that need to be rehabilitated are designed for central manage­ment and control and are not compatible with the smallholder settlement pattern now being discussed.

·1.

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S. · Although we recognize the need to reclaim new land, we continue · to recommend· that the first priority be in developing existing agricultural

land, where returns are highest. For social as well as political reasons, some progress has to be made toward easing the increasing population pressure on the limited agricultural land now available. Therefore, it is important for Egypt to finance a balanced program of investments, includ­ing funding for the development and the rehabilitation of new land areas, and to find the most economic and effective method for developing these · areas.

· cl. with Mr. Donovan _., .,...

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. OFFICE MEMORANDUM

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fROM : T~yze

OAlE: December 7, 1979

SUBJECT: EGYPT: Annual Coordination Meeting with AfDB on December 5, 1979

1. Mr. KBpp and I met with the AfDB delegation, whi~h was led by Mr. I.B.C. John and included Messrs. Kane and Valaydan. We discussed the status of the Third Power Project. In view of its large size, the AfDB representatives believed the project was probably not appropriate for AfDB cofinancing; however, in view of the African Bank's previous involvement in the power sector in Egypt they would like to keep in touch with the project. We said we would send a copy o·f the appraisal report when it was ready. ·

2. We discussed lending to the financial sector, commenting on the s strong performance of DIB and their need for financing. The AfDB may, in the future, provide additional lending to DIB and to assist them· we gave them a copy of our DIB IV appraisal report. They .. envisage appraisal in early 1980.

3~ We said that the size of the Fisheries ;project had shrunk considerably and, therefore, was ·not a good candidate for cofinancing.

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4. Wfth regard to the proposed New Land Development project, be-cause the project itself was very large, we suggested they consider providing funds for the bilharzia component. Even though it was important to tie it in to the overall project, it was a discrete se$mertt~ amounting to about $8 min foreign exchange ($11 m total cost). The AfDB was very interested and hoped to be able to arrange for one of their staff to join the Bank during appraisal. We agreed to check with them on the timing of appraisal of this component. We also mentioned the possibility of future

. cofinancing of bilharzia under Drainage V. We gave them a copy of the , revised New Lands Project Brief (without the internal recommendations and ~ discussion of issues) and a copy of Mr. Economides' memorandum of May 25, 1979 discussing the status of the Bilharzia Program. •

5. Finally, we briefed the team on the forthcoming consortium meeting and gave them a set of documents.·

cc: Messrs. Naylor, Economides, Donovan, Kaps, Roa, Bah, Zaborski, Haji , __ _

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Preliminary Terms of Reference for Settlement Specialist

· 1. Review criteria proposed for settler selection .and the proposed selection process. Advise on the best approach to obtaining settlers who will be both committed to their new farms and successful in the development of the reclaimed land. In particular, assess the amount of previous farming· experience which is desirable, and the downpayment which it -would be reasonable to expect from the settlers. ·

2. Draw up a detailed plan for the settlement process, focussing particularly on the organization (structure and numbers/types of personnel) needed to supervise the arrival of settler families. Questions to be addressed include, among others, the timing of arrival in relation to stage of development of the land, whether settlers should first work as laborers engaged in reclamation activities, whether individuals from settler families should arrive in advance of the main family and if so, how long before, and the extent to which settlers should be expected to construct their own houses (to be assessed in consultation with the village housing specialist).

3. ~valuate Government and consultant proposals about land tenure, probationary pe::-iod etc., in view of Government decrees and experience, and recommend any changes needed.

4. Asses:> likely family employment_ patterns both off the farm and on-farm (the latter in consultation with the agriculturalist) and advise on implications of these for planning the shape of village communities.

-5. Examine the role of women in the settlement process and in both agricultural and domestic activities in the r .eclaimed lands (especially with livestock husbandry and homecraft industries). Advise about factors which will contribute to their commitment to living in the newly settled areas. Assess needs fo~ training of women in both agricultural and domestic fields, and evaluate ex:lsting and proposed organizations for implementing this training. ·

·6. Comment on sociological aspects of agricultural organization such as block cropp'ing, mechanization, and machinery ownership/operation.

7. Draw up detailed plans for the · organization of conm1unity developrr.ent societies, in the light of past experience in the reclaimed lands, approaches adopted to date by Government, the training needs of women, the health/ welfare needs o:: settler families, and proposals made by the consultants.

8. Examine the present pattern of local government in the regions surrounding the project, a s s ess likely futur e directions, and propose ways to facilita te t he Growth of viable local government structures in the newly settled areas.

9. A,sses:; the needs for compensating Bedouin families currently resid-ing in parts of the project area , and draw up a comp ensation plan.

10. Ad·JiS1! on aspects of the wider proj~ct organi za tion, and o~ the desi gn of monito ring and cva lu1tion , ys t ems , lnasmuch as they i mp inge upon ·succe ss fu l i r.\rt, r.icntation o f the settl eraent p ro c ess . Ma ke reconnr.c nd a cio ns about tht.! ncc u s fu r c on ~;ult,l nt s a ml tra ining ln the ~L~t tlemc nt o r g. \ l :::iti.o n,

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Telephone : Swindon (0793) 812479 Cables : Propulsion Swin. Wil t s. Telex : 44844 (A/B HALWI L GI

Our Ref: WL/NSD CONF .

Mr. Paris Economides Irrigation Engineer Agriculture Division IV

3 December EMENA I

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Dear Mr. Economides,

Re: '"·nan ' Crea,_• ,-1 _ __ _ _ _

EGYPT: West Nubariya Settlement Project

Thank you for your letter of the 5th November and for he unofficial copy of your "Back-to-Office" Report on the above Project. The ' Report will certainly be helpful to us in the work we are about to undertake for ARAD, and I confirm we shall take careful account of the points recorded in Section E .

I am pleased that the Bank has signified their acceptance of the Agreement signed between ARAD and Halcrow-ULG . We have had the core of the project team mustered for some time and so have started the work in London even though the Agreement does not become effective until, inter alia, the Bank confirms the allocation of funds to the full amount of one million dollars. Naturally, I hope that will not be too long delayed but appreciate that time is required for the administrative procedures.

During the course of the design assignment, we are require to submit a preliminary design report after 12 weeks and progress reports at monthly intervals. I hope to incorporate a series of working papers into these reports so that, in addition to maintaining a close liaison with ARAD staff, everyone concerned may be informed of the manner in which the designs are being developed.

Yours sincerely,

Director of Agricultural Services: D. R . Willison Director of Engineering Services: G. C. A wre Board of Directors : R. S. Baxter R. F. Camacho C.L. Clarke P. J. Goddard J. L. Gould W. H.J. Saunders Registered in England No. 1318086 London Office : 45 Notting Hill Gate W11 3JX

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INC 01"1 I 1,J G f-1;~ IL UNIT

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MJR/GRH/EG/024/X

P. E. Naylor Esq., Chief, EMPA 4, World Bank,

2 Church Street Warwick CV34 4AJ England

Telephone Warwick (09261496121 Telex: 31565 ULG G

Cables CONAG WARWICK

Directors: J . L. Gould (Chairman) P. J . Goddard(Managingl W. H.J. Saunders G. W. J. Almond J . P. Bedford J . R. Dorrell M. J.Rayner D. J . Moffatt J . A. Semple

1818 H Street N.W., Washington D.C. 20433, U.S.A.

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Dear Mr. Naylor,

EGYPT: WEST NUBARIYA EXTENSION FEASIBILITY STUD.i------

Fq).lowing the review meetings in Cairo at the end of September, I am ~ closing two copies of the memorandum prepared by ULG sunnnarising the meetings, together with two copies of the data requested by the World Bank pre-appraisal mission. This comprises the following:

1. The recalculated sodium adsorption ratios.

2. A land use plan overlay in 3 sheets and at a scale of 1 : 25,000 plus the area of each USBR unit on the land units map (Map 5).

3. A list of functions for each staff member proposed for the Community Development Societies and a brief description of type of person (qualifications and experience) envisaged for each position.

4. Information on the availability of water for:

a. Nasr Canal as a whole,

b. Areas to be commanded for irrigation by each pumping station.

5. Physical proposals for tree plantations - how tree farms would be irrigated, and outline of tree farm models in physical terms.

Yours sincerely,

Enc.

Registered In England Registration No. 622216 Registered Office: 2 Church Street, Warwick

WEST NUBARIYA EXTENSION: RECLAMATION AND SETTLEMENT PROJECT

FEASIBILITY STUDY

MEMORANDUM OF OCTOBER 1st 1979 BY ULG CONSULTANTS LIMITED

At the Final Report Review Meeting held in Cairo on 29th September at 10 a.m. representatives of the following organisations were present: ARAD, ULG, ODA, World Bank, CDC, EEC, USAID (Pacific Consultants), GOS and Swedish commercial interests.

1. The one major technical point raised by ARAD concerned the area that could be irrigated from the Nasr Canal up to pump station No. 6. The ULG feasibility report calculated this figure to be 180,000 feddans (net), based on a peak requirement of 54 m3/fd/day, whereas the canal was designed to irrigate a gross area of

300,000 feddans assuming a peak requirement of 33 m3/fd. Such an apparent discrepancy could be due to a number of factors including the ratio of net irrigated area to gross area and the efficiencies, cropping intensity and crop water requirements assumed. However, it was particularly important that there was agreement on these factors as it was the Government's policy to maximise the area irrigated from the Nasr Canal through efficient water use and because of their effect on the specifications used when preparing the detailed designs required for project implementation.

2. In addition there were a number of other minor technical points ARAD wished to be considered, including the pricing and transport of sugar beet, settler selection and the size of house plots; also the World Bank had requested ULG to prepare some additional data. It was agreed, therefore, that to consider the above points in greater detail, three sub-committees should be set up comprising ARAD and ULG representatives, with the World Bank also participating.

These committees would cover Soils, Irrigation and Agriculture and Settlement. They were asked to report their findings to a meeting of the main committee on Sunday September 30th at 8 p.m.

3. Following the completion of the ULG fleasibility study, the World Bank and ARAD have three months before the date set for the World Bank appraisal mission. During this time any differences over the proposed designs, and arrangements for administration should be resolved so that the final shape of the project can be determined in conjunction with other potential donors. The World Bank would like the first stage of the deta i led design work to go ahead immediately, -~opreliminary designs are available at appraisal and it is making funds available under a pre-project financing arrangement to finance this work.

4. The remainder of the meeting was devoted to a discussion of the possible sources of finance for the project components and the following points were made:

a. The World Bank is interested in financing the proposed settlement development, but would require other financiers and/or a two phase project, if the total foreign exchange costs were to be covered. Also the costs of the second and third years of the trials programme could be included as part of the project costs to be covered by the proposed loan.

b. UK companies are interested in participating in the project and CDC are looking at possible investment opportunities.

c. A Swedish consortium is interested in financing the sugar beet factory on a joint venture basis, but would want control over beet production, harvesting and transport.

d. Pacific Consultants are reviewing possible developments in the New Lands that could be suitable for USAID funding at a later date.

5. The feasibility report was accepted by ARAO.

WEST NUBARIYA EXTENSION: RECLAMATION ANO SETTLEMENT PROJECT FEASIBILITY STUDY

POINTS ARISING FROM THE SUB-COMMITTEE ON SOILS

The meeting of the sub-committee took place on September 29th 1979. Its members were Dr. Rifki Anwar, ARAD, Mr. P. W. Waggitt, ULG Consultants, and Mr. W. Peters, World Bank.

l. The sub-committee considered the World Bank's request for additional data.

2. It was confirmed that, as agreed earlier· between ULG and the World Bank, ULG would provide some additional soils data, namely:

a. The sodium adsorption ratios (SAR's) recalculated on the basis of meq per litre.

b. An overlay to be used on the maps to facilitate the reading of land classification.

WEST NUBARIYA EXTENSION: RECLAMATION AND SETTLEMENT PROJECT FEASIBILITY STUDY

RECOf~MENDATIONS OF IRRIGATION SUB-COMMITTEE

Members of Irrigation Sub-Committee:-

Eng. Ussuri Wissa Eng. Zanati Mr. P. Economides Mr. D. G. Lloyd

Ministry of Land Reclamation (ARAD) Ministry of Land Reclamation (ARAD) World Bank ULG Consul tan ts

1. The Committee reviewed the determination of the Water Duties as proposed in the Report to consider whether a less conservative approach might be taken. Amendments were found to be possible in the following respects:-

a. The adoption of the original rather than the modified Blaney Criddle formula for the determination of the crop consumptive use, the work of the Agricultural Research Station near El Amarya having shown the former to be realistic in the local environment, although it was recognised that the latter is widely used in similar situations.

b. The use of temperature data taken as the mean between the Borg El Arab and the North Tahri·r meteorological stations.

c. The mean crop factor of 1 .OS (peak water requirement in July) was retained.

d. The field irrigation efficiency for surface irrigation of 0.65 was retained but the conveyance efficiency was increased to 0.94 on the basis that the tertiary canals be lined. This permitted an increase in the target overall irrigation efficiency to 0.6 or 60%.

e. The maximum consumptive use of water on the above basis becomes 7mm/day and water requirement 12mm/day or 48 cu.m/feddan/day.

On a similar reasoning the respective figures for sprinkler irrigation and tree crop requirements are 36.4 and 31 cu.m/feddan/day.

When these figures are applied to the Project, the result is:-

Net Water Water Irrigated Requirement Volume Area ( f) cu.m/day cu.m/day

Surface Irrigation 62,050 48 2,978,400 Sprinkler Irrigation 4,800 36.4 174,720 Tree crops 5,000 31 155,000

71,850 3,308, 120

giving an average water duty of 46 cu.m/feddan/day applied to the net irrigated land.

Recognising that 25% of the area farmed is devoted to villages, roads, canals and drains, the water duty becomes 34.4 cu.m/feddan/day applied to the overall area reclaimed and the Sub-Committee accordingly recommerlded that this figure be adopted.

The following recommendations and requests were also made by the Sub-Committee:-

2. That the design capacity of the water distribution system be 20% above the target water duties to allow for reduced irrigation efficiencies in the early years of the Project, to permit flexibility in operation and because in future~ t rr.opp·ing· rotations might be more der.1anding than those now envisaged.

3. That the leaching requirements under sprinkler operation should be

m~t by increasing the dailj working hours rather than the peak flows.

4. That the tertiary canals be lined.

5. That the land slopes and related details be determined in the design stage.

6. That the effective minimum depth of the water table in the design of land drains be reduced from 1.5m to 1.2m.

7. That all drainage, including that from areas to the South of the Nasr Canal be taken into the proposed regional drain, so that no water is drained into the depression south of the Project Area.

8. That due provision is made in the present crop trials for the measurement of the irrigation efficiencies, although recognising that various factors, including initial limitations in land levelling, will mitigate against obtaining optimum efficiencies in the early trials.

9. That the Consultants be given direction should it be decided to construct the village housing under contract arrangements.

10. That, if the area of 7200 feddans that is to be the subject of the initial design encompasses thee plantation areas, full provision for the tree plantations should be included in the initial planning and designs.

WEST NUBARIYA EXTENSION: RECLAMATION AND SETTLEMENT PROJECT FEASIBILITY STUDY

POINTS ARISING FROM THE SUB-COMMITTEE MEETING ON AGRICULTURE AND SETTLEMENT

The meeting of the sub-committee took place on September 29th, 1979. Its members were as follows: Mr. Anwar El Abd, Dr. Mounir El Tawil, Dr. Hakim El Gharbawy and Engr. Mahmoud Fahmy (GOE); and Mr. M. J. Rayner, and Mr. A. A. Thompson (ULG Consultants Limited). Mr. G. Donovan of the World Bank attended as an observer.

The following points were discussed in detail by the Sub-Committee and unanimously agreed:-

. 1. Settlers are to be recruited in or close to their home villages, in general conformity with the procedures proposed by the Consultants.

2. A minimum probationary period of one year will apply to all settlers. After this period, settlers who have clearly demonstrated their competence are to be granted ownership; in doubtful cases, a further probationary period of one year is to apply.

3. The standard fieldplot for settlers is to be of six feddans in a single unit.

4. The size of a settler's house and garden plot is wherever possible to be fixed at 400 m2, and shall never be less than 300··m2. Where site conditions permit, an area adjoining every village is to be set aside as a communal orchard.

5. If sufficient funds are available from Government sources, mosques are to be provided at main village level and at Project H.Q., which is also to be provided with an Orthodox Church.

6. Farmers are to be paid for their beet at a price to be decided shortly before the commissioning of the sugar beet factory, and the main determining factors are to be the world sugar price projections then prevailing and the policy of the Government.

7. Collection/delivery arrangements for beet, oilseed and other crops requiring processing are to be clearly specified in contractual documents binding upon both co-operatives and processors. Transport is to be the responsibility of the processors.

On all other settlement and agricultural proposals contained in the Consultants' final report, there was general agreement.

WEST NUBARIYA EXTENSION: RECLAMATION AND SETTLEMENT PROJECT FEASIBILITY STUDY

POINTS ARISING FROM THE MEETING TO CONSIDER THE SUB-COMMITTEES' FINDINGS

This meeting was held on Sunday September 30th at 8 p.m. and was attended by representatives of ARAD, ULG, World Bank, USAID (Pacific Consultants), GOS and Swedish commercial interests.

l. The findings of the three sub-committees were presented (see previous pages) and following some discussion there was general agreement on most of the points submitted by the sub-committees. However., a number of issues remained to be resolved during the detailed design stage and these were:

a. Whether the settlers should construct their own houses, with specialist assistance, as proposed by the Consultants, or whether they should be built by local contract©rs as proposed by ARAD.

b. Whether (site constraints permitting) the house plots should be provided with irrigation water to enable the settlers to cultivate a kitchen garden, as proposed by the Consultants, or whether an area should be set aside at the ed9e of the village for _ kitcheri g~rdens as rroposed.by ARAD. However, .it was agreed that house plots must be of sufficient size to enable the settlers to expand their houses and · provide _ adequate space for .stabling and the storage of ·fuel and crops.

2. Two further points were agreed:

a. Approval for the proposed irrigation system would be sou9ht from the Ministry of Irrigation.

b. The method of irrigating the tree crops would depend on the location and could be by surface, pumped or drip systems.

Mr. R. A. Hornstein, Sen:f.Q...~..Jiser, Co-financing, VPO April 16, 1980 (through }lr. D. ~chardso~sist. to Vice President, EMNVP) Hans-Eberhard~ p, Division Chief, EMlA

EGYPT: Co-fin~c~ g with CDC--Appraisal of West Nubariya (New Land Development)

The appraisal mission returned to Washington in mid-February and expec~ to complete its draft yellow cover report by the first week of June. Following are a list of the mission's preliminary main recommendations:

(1) Size: To divide the area into two project phases: the proposed project would cover about 25,000 feddans, and at a later date (3 years after the commencement of the first phase) the development of the remaining project area (about 25,000 feddans) could be considered.

(2) Economic Rate of Return: The rate of return is now being calculated, and should be ready by the end of April. It was agreed to submit these findings to the Bank's management as soon as they could be made available. (Very preliminary estimates indi­cate a rate of return of around 11 percent excluding selected social costs--i. e. health, education, settlement housing, and potable water supplies. )

(3) Irrigation Water: Before the project is presented to the Board it was recommended that the Government would have to have invited bids for the repair work on the Nasr Canal.

(4) Processing Plants and Cropping Patterns: The mission recommends review of alternative cropping patterns, including those that would and would not require substantial investment in processing plants.

(5) Project Coordination: The mission highlighted the importance of project coordination and effective implementation; it will recommend the establishment of various project implementation groups.

(6) Cost Recovery: The issue of cost recovery will have to be negotiated with the Government, after the mission has determined the settlers' capacity to pay.

Cleared in substance & cc: Mr. Economides (EMP)

cc: Ms. Schaeffer (EMl)

OFFICIAL FILE COPY

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SUBJECT:

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WORLD BANK/ INTERNATIONAL FI NANCE COh f-'ORATION

OFFICE MEMORANDUM Mr. R. A. Hornstein, Senior......A<lviser, Co-financing, VPO DATE : April 16, 1980 (through Mr. D. Richardson,JJ~sist. to Vice President, EMNVP) Hans-Eberhard K!~P, Division Chief, E~UA

EGYPT: Co-finafchng with CDC--Appraisal of West Nubariya (New Land Development)

The appraisal mission returned to Washington in mid-February and expectsto complete its draft yellow cover report by the first week of June. Following are a list of the mission's preliminary main recommendations:

(1) Size: To divide the area into two project phases: the proposed project would cover about 25,000 feddans, and at a later date (3 years after the commencement of the first phase) the development of the remaining project area (about 25,000 feddans) could be considered.

(2) Economic Rate of Return: The rate of return is now being calculated, and should be ready by the end of April. It was agreed to submit these findings to the Bank's management as soon as they could be made available. (Very preliminary estimates indi­cate a rate of return of around 11 percent - excluding selected social costs--i.e. health, education, settlement housing, and potable water supplies.)

(3) Irrigation Water: Before the project is presented to 0 the Board it was recommended that the Government would have to have invited bids for the repair work on the Nasr Canal.

(4) Processing Plants and Cropping Patterns:. The mission recommends review of alternative cropping patterns, including those that would and would not require substantial investment in processing plants.

(5) Project Coordination: The mission highlighted the importance of project coordination and effective implementation; it will reconnnend the establishmen t of various project implementation groups.

(6) Cos t Recovery: The issue of cost recovery will have to be negotiated with t he Government, after the mission has determined the settlers'capaci ty to pay.

Cleared in substance & cc: Hr. Economides (EMP)

cc: Hs. Schaeffer (DU)

TSwayze :bp

WORLI"' 11ArJK / IMT[nlJATIONAL FINANCE conPORATl ()N

OFFICE MEMORANDUfv1 ~. Schaeffer, CPI

TO: Mr. Benjamin, CPI! DATE : April 14, 1980

FROM:

IBJECT:

David Richardson~

Co-Financing with CDC, ·notably Egypt - West Nubariya Scheme

The attached memorandum of April 11, 1980 from ·Mr. Hornstein, · and the letter of March 10, 1980 from CDC, Londo~ ~re self-explanatory. Please send me by c.o.b. on Thursday, April 17, 1980 the requested brief notes on any of our countries currently involved in co-financing with CDC, but notably on the Egypt West Nubariya Scheme as specifically requested by CDC.

Attachments

cc: Mr. Finzi Mr. ·Richardson

DRichardson: ai

WORLD ~AtJK / INlERrMTIOMAL FINANCE COflf"'ORATION

ufFICE MEfV10RANDLJfv1 TO: See Distribution DATE : April 11, 1980

FROM: Roger A. Hornstein, Senior Adviser, Co-financing, VPO

SUBJECT: C.0-financing with CDC ,

I am attaching a copy of a letter which I received from the General Manager of the Commonweal th Development Corporation (CD~) relating to topics which mi~ht come up for discussion at a meeting with CDC in London next month. As I mat 'not be able to attend the meeting, I would appreciate it if you could provide me with a brief note on the matters relating to your countries in a form which I can forward directly to CDC. •

Since I would like to send this information to CDC before their meeting, I would appreciate receiving these notes by Friday, April 18. Should any of these matters ·involve very detailed explanations, I suggest that you also arrange to have appropriate staff contact CDC directly.

(!/J)f Attachment

Distribution:

Ms. Calvo, WA2 Messrs. N. Gibbs, AEA

Gonzalez-Cofino, LC2 Kopp, EMl Reese, EAl Shibusawa, ASA Tsantis, AEA

'cc: Messrs. Jaycox, AF.A ·'{ Ludvik, LCNVP j ./

. Richardson, ElfNVP V . Russo, ASA Takahashi, EANVP

RAHornstein:jcd

....

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COOC : OCNTLCY"S Sf:CONO CAOLC S : VL LO P LONDON WI TCLCORAM S : VCLOP LONOON TCLCX

COMMON'\\TEALTlI . DEVELOPMENT CORPORATION

IANAG~R

rzHAGCN. C .M G

33 HILL .STifEET

LONDON WlA 3AR

58017

Mr Roger A.Hornstein, Senior Adviser, Co-financing, The World Bank; ' 818 H Street, N.W., ,mshington, DC 20433, USA.

Dear Roger,

10th March 1980

~,,

Many thanks for your letter of February 13th in which you have asked whether we will have any particular topics to discuss at the general meeting in London on May 21st.

As some of our longer-serving Regional Controllers have now retired and there will be two new Controllers at the meeting, it would be very helpful if you would riefly bring us up-to-date on the Bank's structure

and organisation; for examnle the divisions . on ·. a -· geographical basis and the distinctions between your Programs and Projects Departments •

..I

l .

l

My colleagues would also appreciate c6pies of any publications which you may have on the Bank~s co-financing activities. And, of course, any news which you are able to give us about current Bank policies and priorities.

Otherwise, I think that the objectives of the ·meeting should be to air views on the performance of existing projects in which we are associated. Happi ly such proj ects seem at ~resent to be relatively problem free , with the exception of tobacco pro jects in Zambia, particularly the Family Farming Project, and the future of t he Tob~cco Board of Zambia on which we await the outcome o f the Bank's studies.

. .. /

....

. :

. - 2

There are a number of orosnective co-financing .. -~ opportunities for new projects, and the expansion

of existing projects, which we would like to discuss at the meeting. Geographically, these are -

(1) SRI LANKA

• • Results of Bank's survev of rainfall and irrigated sugar projects, and the effect on Mo~eragala, System Can~ other projects.

Cooperation with the Bank in the estate sector for tree crops. ·

The Bank's proposed involvement in Syst~m C.

Monetary constraints for lending at remunerative interest rates.

(2) EGYPT

(3)

The state of the Bank's ~ppraisal of the West Nubariya Scheme.

GUYANA

The oil palm project which we have been discussing ·for some time.

I

f

(4) THAILAND

(5)

Phase II of the Thailand Rubber Replanting Aid Fund.

CAY.IBROON

Hevea Cameroon Expansion.

Candev Phases II and III.

(6) PAPUA NEW GUINEA

We may be inviting the Bank to join us in financing the Godaguina Rubber Project.

The above list is not necessari ly exclusive and nearer the time we will probably be updating it, in which case I will give you advance notice.

• •. I

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~ ... We much hope that we will h.ive· : the pleasure .. of

seeing you personally at the meeting, but we ~ill quite understand if you are unable to fit in a trip to London at that time because we know that you have a very busy progranune during the month of May.

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' .)FFICE ~J1EMORAf\~Urv'1 e.. - 10g,

TO: See Distrib~tion DATE : Apri! 11, 1980

FROM: Roger A. Hornstein, Senior Adviser, Co-financing, VPO

SUBJECT: C.O-fina..~cing with CDC

I am attaching a copy of a letter which I received. from the General Manager of the Commonwealth Devclopmznt Corporation (CDC) relating to topics which ::u.ght come up £or discussion at a meeting with ~DC in London cext ffionth. As I may not be able to attend· the meeting, I would appreciate it if you could provide me wit:i a brief note on the matters relating to your countries in a form which I can forward directly to CDC.

Since I would like to send this information to CDC before their meeting, I would appreciate receiving th2se notes by Frida~-<\,p:i.J...-1.8....-___ Should any of these matters involve very detailed=-expfanations, 1 suggest that you also arrange to have appropria~e staff contact C~C directly.

au+-

!"'"-----·-

Attachment

Distribution:

Ms. Calvo, WA2 Messrs. N. Gibbs, AEA

Gonzalez-Cofino, LC2 Kopp, EMl / Reese, EAl Shibusawa, ASA Tsantis, AF.A

cc: Messrs. Jaycox, AEA Ludvik, LCNVP Richards on, C·INVP Russo, ASA Takahashi, EANVP

RAHornstein:jcd

.1: : 01-ez9 e .. a .. ~ Zt .. 31

COOC : BCNTLCY~ SCCONO CABLC.~ : \/ C L O P L O N DO N WI TCI.CC.RA .... S : \/CLOP LONDON TCI.CX

COM?\{ONWEALTI-I DEVELOPivlENT CORPORATION

1L MANAGE~

ERTZHAGEN. C . ~ G

33 HILL .STifEET

LONDON WlA 3AR

58017

Mr Roger A.Hornstein, Senior Adviser, Co-financing, The World Bank; 1818 H Street, N.W., Washington, DC 20433, USA.

Dear Roger,

iOth March 1980

~''

Nany thanks for your letter of February 13th in which you have asked whether we will have any particular topics to discuss at the general meeting in London on May 21st.

As some of our longer-serving Regional Controllers have now retired and there will be two ne·w Controllers at the meeting, it would be very helpful if you would briefly bring us up-to-date on .the Ba:r..1<' s st:ructure and organisation; for exarn~le the divisions on a geogra~hical basis and the distinctions between your Programs and Projects Departments.

J t

I .

My colleagues would also appreciate copies of any publications which you may have on the Bank's co-financing activities. And, of course, any news which you are able to give us about current Bank policies and priorities.

Otherwise, I think that the objectives of the meeting should be to air views on the performance of existing projects in which we are associated. ttappily such projects seem at ~resent to be relutively problc~ free, with the exception of toba cco projects in Zc1r1bi a , particularly the Family Farming Proj cct, und the future of t he Tobacco I3 o .:i rd of Zanbi a on which we await the outcome of the Bank's studies.

. .. I

.,,.

' '

' - 2

There are a number of orospective co-financing opportunities for new projects, and the exoansion of existing orojects, which we would like to discuss at the meeting. Geogra9hically, these are -

(1) SRI LANKA

{4)

(5)

• • Results of Bank's survey of rainfall and irrigated sugar projects, and the effect on Moneragala, System C and other projects.

CooP.eration with the Bank in the estate sector for tree crops.

The Bank's proposed involvement in Syste...rn C.

Monetary constraints for lending at remunerative interest rates.

EGYPT

The state of the Bank's ~ppraisal of the West Nubariya Scheme.

GUYANA

The oil palm project which we have been discussing for some time.

THAILAND

Phase II of" the Thailand Rubber Replanting Aid Fund.

CAMEROON

Hevea Cameroon Exoansion.

Carid'ev Phases II and III.

(6) PAPUA NEi•: GUINEA

We may be inviting the Bank to join us in financing the Godaguina Rubber Project.

The above list is not necessarily exclusive and nearer the time we will probc1bly be updating it, in which case I will give you advance notice.

. .. /

....

3

n·., · .. ·: =· .· -· - - • • • •. . J • ·: '1· ·~ .. . .

r2 ·· . · · I;; . f/"'"· ·· . I! . : ~ J .• ;. ;

We much hope that we will hi·ie . the pleasure . of seeing you personally at the meeting, but we will quite understand if you are unable to fit in a trip to London at that time because we know that you have a very 9usy programme during the month of May.

• •

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To the World Bank Wasl1.ington DC EGr- Nevr !~.~-d.£pmirtt rfoje~

fo( west :N<L~-ii<lcu PPA I '

Gentlemen,

In accordance with the a;re~e~t of January 11, 1980 between IDA ar.d th.a Ministry of Land Reclc.2ation

· ( Project Preparation Facilit-J) for tne preparatio~ of final design for the New L~d Development Project of West Nubariya, !Jr Adel Ezzy, Vice ~.hnister of Lan:: Recla:iation and 1Ir Ab::iadi Al:<lel Raouf, Cnair:u.an of tb.e General Autt.ori ty for Rehabilitation Projects and Agricultural Devel·opment ( .AR.AD) c.re hereby authorized to Sign Separately· wi thd.rawal applications on behalf of the Arab Republic of Egypt for the project preparation facility of the above project.

The outhenticated Speci~en Signatures are sho~m here in:-

(1) Adel Ezzy Vice !!inister •

. (2) :C:L-Ahnadi At-de} RaGUf Chai::::-::.an AR_:;D •

·:;1 tnessed by Dt'"' Am'lar Rifki

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WORLD BANK / INTERNATIONAL FINANCE CORPORATION ~ f

~ . Schaeffer, ~fFICE MEMORANDUM TO : Mr. Benjamin, CPI! DATE : April 14, 1980

FROM :

SJ.)BJECT:

David Richardson~

Co-Financing with CDC; ··notably Egypt - West Nubariya Scheme

The attached memorandum of April 11, 1980 from Mr. Hornstein, and the letter of March 10, 1980 from CDC, London are self-explanatory. Please send me by c.o.b. on Thursday, April 17, 1980 the requested brief notes on any of our countries currently involved in co-financing with CDC, but notably on the Egypt West Nubariya Scheme as specifically requested by CDC.

Attachments

cc: Mr. Finzi Mr. Richardson

DRichardson: a-i

WORLD BANK/ INTERNATIONAL FINANCE CORPORATION

OFFICE MEMORANOUfv1 TO:· See Distribution DATE: April 11, 1980

FROM: Roger A. Hornstein, Senior Aaviser, Co-financing, VPO

SUBJECT: Co-financing with CDC

I am attaching a copy of a letter which I received from the General Manager of the Commonwealth Development Corporation (CDC) relating to topics which mieht come up for discussion at a meeting with CDC in London next month. As I may not be able to attend the meeting, I would appreciate it if you could provide me with a brief note on the matters relating to your countries in a form which I can forward directly to CDC. •

Since I would like to send this information to CDC before their meeting, I would appreciate receiving these notes by Friday, April 18. Should any of these matters ·involve very detailed explanations, I suggest that you also arrange to have appropriate staff contact CDC directly.

Attachment

Distribution:

Ms. Calvo, WA2 Messrs. N. Gibbs, AEA

Gonzalez-Cofino, LC2 Kopp, EM1 Reese, EA1 Shibusawa, ASA Ts antis, AEA

/ cc: Messrs. Jaycox, AEA 1 Ludvik, LCNVP V:

. Richardson, EMNVP . Russo, ASA Takahashi, EANVP

RAHornstein:jcd

: PHONE : 01-629 8484 :x: +10. 21431

CODE : BENTLEY'S SECOND CABLES : VELOP LONDON WI TELEGRAMS : VELOP LONDON TELEX

COMMONWEALTH DEVELOPMENT CORPORATION

E RAL MANAGER

E INERTZHAGEN, C .M .G .

33 HILL .STR.EET

LONDON W1A 3AR

58017

Mr Roger A.Hornstein, Senior Adviser, Co-financing, The World Bank; 1818 H Street, N.W., Washington, DC 20433, USA.

Dear Roger,

10th March 1980

Many thanks for your letter of February 13th in which you have asked whether we will have any particular topics to discuss at the general meeting in London on May 21st.

As some of our longer-serving Regional Controllers have now retired and there will be two new Controllers at the meeting, it would be very helpful if you would briefly bring us up-to-date on the Bank's structure and organisation; for example the divisions on .a __ geographical basis and the distinctions between your Pr9grams and Projects Departments.

·,.

'{ My colleagues would also appreciate c~pies of any

publications which you may have on the Bank's co-financing activities. And, of course, any news which you are able to give us about current Bank policies and priorities.

Otherwise, I think that the objectives of the meeting should be to air views on the performance of existing projects in which we are associated. Happily such projects seem at present to be relatively problem free, with the exception of tobacco projects in Zambia, particularly the Family Farming Project, and the future of the Tobacco Board of Zambia on which we await the outcome of the Bank's studies.

. .. I

I l I

2

There are a number of prospective co-financing opportunities for new projects, and the expansion of existing projects, which we would like to discuss at the meeting. Geographically, these are -

(1) SRI LANKA

(2)

Results of Bank's survey of rainfall and irrigated sugar projects, and the effect on Moneragala, System C and other projects.

Cooperation with the Bank in the estate sector for tree crops.

The Bank's proposed involvement in System C.

Monetary constraints for lending at remunerative interest rates.

EGYPT

The state of the Bank's qppraisal of the West Nubariya Scheme.

(3) GUYANA

The oil palm project which we have been discussing ·for some time.

(4) THAILAND

(5)

Phase II of the Thailand Rubber Replanting Aid Fund.

CAMEROON

Hevea Cameroon Expansion.

Cand-ev Phases II and III.

(6) PAPUA NEW GUINEA

We may be inviting the Bank to join us in financing the Godaguina Rubber Project.

The above list is not necessarily exclusive and nearer the time we will probably be updating it, in which case I will give you advance notice.

... I

J

n

. ' .

. . i

'

! • I

3

Cl .·-~· ·. : . ! ~ ; • • ) : .l : . . ... ·~ _, r : f 2 ., · ,,,, , .

' ,, ·. 'I i"t" n--. !.,:: ~ .... ~. • ,., ' ' I

We much hope that we will have .. ~he pleasure .. of seeing you personally at the meeting, but we will quite understand if you are unable to fit in a trip to London at that time because we know that you have a very busy progranune during the month of May.

I

1

------ --

l

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. I i