(TCP PROJECT EXAMPLE)

 

Country:	X
Project Title:	Water Control Component of the Special Programme for Food Security (Africa)
Project Symbol:	TCP/..../...
Starting Date:	April 199-
Completion Date:	March 200-
Government Counterpart Institution responsible for project execution:	Ministry of Agriculture and Irrigation
FAO Contribution:	US$353,000

Signed: ..............................................	Signed: ...........................................
(on behalf of the Government)	Jacques Diouf Director-General (on behalf of FAO)
Date of Signature: .........................	Date of Signature:.............................

I. Background and Justification

Country X is located in Southern Africa, has a total land area of some 392,000 km² and a population of nearly 12 million people, the majority of whom live in the rural areas. Agriculture is the dominant sector of Country X economy, contributing 35% of the national GDP and providing a source of livelihood, in form of food and employment, to 85% of the population. The sector also contributes 90% of the nation's total export earnings.

Although only 3 million hectares, or 31% of total land area is classified as land of good to moderate quality suitable for farming, currently around 5.3 million ha are under crops implying that farming activities are taking place on more than 2 million ha of land which is marginal for agricultural purposes. Nearly 90% of the land is cultivated to maize which is the staple food and dominant food security crop. Other food crops grown include sorghum, rice, beans, tubers (cassava and sweet potatoes), groundnuts and vegetables.

Food demand in Country X has been increasing steadily because of the absolute increase in population which is expected to double in the next 20 years. The country is currently not able to meet its food requirements, particularly in cereals. For example, the projected food balance sheet for 1997/98 forecasts a shortfall of over 0.7 million tons of maize equivalents. It is estimated that each year, 60% of rural households run out of food for a period of 3 to 4 months. Over the last ten years, Country X's national food demand has annually exceeded local production by between 0.20 and 1.32 million t in maize equivalents. The shortfalls are largely attributable to the failure of food production to keep pace with increases in the human population; adverse weather conditions (intermittent droughts and dry spells); declining soil fertility combined with shrinking average farm holdings; and inappropriate and outdated agricultural technologies. The country therefore has both a national as well household food insecurity problems.

Lack of water or inability of using it for agricultural production is one of the main reasons why it is difficult for Country X to attain fast increases in food production. National irrigation potential is estimated at 200,000 ha for formal irrigation (of which only 27,000 ha has been exploited) and 480,000 for informal irrigation (of which only 50,000 ha is regularly cultivated).

The SPFS in Country X

Following the World Food Summit which took place in Rome in November 1996, Country X, as a low-income food deficit country (LIFDC), approached FAO in early 1997 requesting for assistance in formulating and implementing a Special Programme for Food Security (SPFS). GoX subsequently set up a National Formulation Team (NFT) to prepare the basic documents for the SPFS including the National Programme Document, the Plan of Operations and the Water Control Component (WCC). The NFT submitted the draft documents in September 1998. Their outputs have formed the basis for this document. Another project document focussing on the non-crop diversification activities of the SPFS is under preparation. Country X SPFS has been considered operational since November 1997.

Past food production increases have largely been attributable to expansion in cultivated area. However, this is no longer a workable option because of the increasing shortage of arable land as a result of a rising human population. On the other hand, given the country's relatively low rainfall (700 -1,000 mm range) and its mono-modal pattern, the potential for increased production through higher cropping intensities is severely limited without some form of irrigation. Increased irrigation, particularly in the smallholder subsector, is therefore essential to increased crop production.

The Pilot Phase of the TCP Assistance

The NFT identified eight (8) sites where the WCC demonstration activities of the SPFS will be piloted. Targeting smallholder farmers, one site has been selected in each administrative region in areas where there are perennial streams or adequate ground water and have potential for increased agricultural production but which are experiencing food insecurity due to lack of irrigation facilities, poor soils, lack of inputs etc. The features of the individual sites are set out in Annex 1 and their constraints and proposed technologies which are to be demonstrated for their resolution are set out in the table below.

Site Name	Constraints	Technologies Proposed for Demonstration
A	Water scarcity in water Pests and diseases Inputs; Soil fertility	Water lifting devices (small motorized pump) Crop intensification and diversification Pest and isease control Improved seed . Soil fertility enhancement.
B	Same as above	A twin set of motorized pumps; Rest same as above
C	Water-lifting technology Inputs Soil fertility Pests and disease Markets	Submersible pump Crop intensification and diversification Improved seed Soil fertility enhancement Improved market access.
D	Dry winter months Water-lifting technology Inputs Soil fertility.	Improved seed; Soil fertility enhancement Pests and disease control Improved market access. Improved seed; Soil fertility enhancement Pests and disease control Improved market access.
E	Dry winter months Water-lifting technology Pests and disease Inputs Soil fertility Markets	Treadle pump Crop intensification and diversification Improved seed Soil fertility enhancement.
F	Same as above	Small motorized irrig. pump Crop intensification and diversification Pests and disease control Improved seed Soil fertility enhancement Improved market access.
G	Dry winter months Water-lifting technology Pests and disease Inputs; Soil fertility.	Same as above
H		Treadle pump Crop intensification and diversification Pests and disease control. Improved seed Soil fertility enhancement.

Participating farmers would be provided with a full package consisting of irrigation equipment and accessories, agricultural inputs and extension services. The pilot activities would cover the four cornerstones of the SPFS, namely: water control, crop intensification and diversification, and constraint analysis, in so far as crop production is concerned.The pilot demonstrations would last about two years and would be followed by an Expansion Phase to be incorporated in the country's planned investments in the agricultural sector.

II. Objectives of the Assistance

The overall objective of the assistance is to help Country X improve its food security through rapid increases in agricultural production of both food and cash crops and increase productivity on an economically and environmentally sustainable basis. This objective is to be achieved through water and irrigation development in combination with intensification, diversification, soil fertility enhancement and a continuous analysis of constraints to agricultural development. Demonstration activities will be piloted on 8 sites described in Annex 1. The technologies to be piloted are set out in Annex 2A.

The immediate objectives of the programme are as follows:

Objective 1

Demonstrate improved on-farm irrigation technologies and practices and train Department of Irrigation (DOI) and other front-line extension staff and farmers.

Objective 2

Intensify and diversify the cropping systems through demonstration of appropriate improved water management techniques and improved agronomic practices.

Objective 3

Demonstrate soil fertility enhancement methodologies within the agronomic regime.

Objective 4

Demonstrate improved marketing techniques and train front-line extension staff and farmers.

Objective 5

To identify and recommend ways to remove constraints that prevent farmers from increasing agricultural production and adopting improved technologies and management practices.

III. Project Outputs

Output 1a

Planning and installation of 15 treadle pumps covering 4.5 ha and 15 farmers; 5 small motorized pumps covering 27 ha and 270 farmers; and one submersible pump covering 10 ha and 100 farmers.

Output 1b

About 120 farmers and 152 front-line extension staff trained in the appropriate installation, operation and maintenance of the irrigation equipment and facilities as well as in appropriate irrigation practices.

Output 2a

Over an area totalling 41.5 on which pilot activities would be undertaken, agricultural production will be increased (because of higher cropping intensity and yields since, all the crops to be demonstrated would not be grown in the dry months or only about 10% of the expected yields would be attained under rainfed conditions) and diversified.

Output 2b

About 70 farmers and 66 front-line extension staff trained.

Output 3

Improved soils for sustainable agriculture.

Output 4

Marketing strategies developed and farmers as well as front-line extension staff trained.

Output 5

Constraints identified and proposals made for their removal.

IV. Work Plan

The activities to be undertaken by the programme would be carried out according to the Work Plan set out below for individual outputs (for details, see Annex 2B, table A2).

Activities for output 1a

1. Selection of suitable sites for demonstration with the help of DOI staff*.
2. Selection of farmers willing to participate in the demonstrations.
3. Preparation of soil and topographic surveys with full farmer participation.
4. Preparation of technical feasibility studies with full farmer participation.
5. Preparation of alternative designs.
6. Financial and economic analysis of different alternatives.
7. Farmer selection of options to be adopted.
8. Procurement and distribution of equipment.
9. Construction of wells and installation of pumps and equipment with full farmer participation.
10. Monitoring and evaluation of the operations.
11. Review and impact assessment and recommendations for the Expansion Phase.

Activities for output 1b

1. Provision of training to the farmers on the operation and maintenance of the pumps and equipment.
2. Planning and demonstration of appropriate on-farm water management techniques.
3. Organizing of farmer field days and in-country farmer visits.
4. Study tours by farmers and front-line DOI extension staff.

Activities for output 2a

1. Selection of suitable sites for demonstrations*.
2. Selection of farmers.
3. Assessment of the present crops and agricultural practices.
4. Establishment of Farmer Field Schools (FFS).
5. Farmer selection of crops to be grown.
6. Procurement and supply of necessary agricultural inputs.
7. Planning and demonstration of appropriate cropping intensification and diversification programmes, including the introduction of high value crops.
8. Monitoring and evaluation of introduced technologies.
9. Monitoring and evaluation of outputs from irrigated farming under the programme.
10. Preparation of recommendations for the Expansion Phase based on the overall performance of the demonstrated technologies.

1. Identification of farmers interested in organizing themselves in groups for marketing purposes.
2. Assisting the interested farmers to form suitable groups for marketing purposes.
3. Training of farmer groups and front-line agricultural extension staff.
4. Organizing of farmer field days and in-country farmer visits.
5. Study tours by farmers and agricultural extension staff.

Activities for Output 3

1. Introduction into the farming system of crops with nutritional values to the soils.
2. Promotion of the use of composite/organic manure.
3. Training of farmers and front-line extension staff in agronomic soil fertility enhancement methods.

1. Selection of farmers for training.
2. Training of farmers and front-line extension staff on group formation for marketing purposes, market identification and access, product promotion and pricing and market intelligence.
3. Farmer visits to markets.
4. Development of marketing strategies by farmers.
5. Monitoring and evaluation of activities.
6. and impact assessment of the programme.

Activities for Output 5

1. Base-line diagnostic survey of the pilot sites.
2. Socio-economic analysis of the farming population in the pilot sites.
3. Design an impact monitoring system that can, at the end of the project, be suitably consolidated into the existing monitoring evaluation activities of MAI.
4. At the end of each cropping season, carry out simple statistical surveys and cost/benefit
5. Prepare discussion document consolidating the experiences, lessons learnt and proposals for resolving the constraints identified.
6. A stakeholders' workshop to discuss and agree on the proposals set out in 5. above.

(* Denotes activities which have already been done).

V. Capacity Building

The SPFS is a locally managed programme. The TCP in itself will therefore contribute in strengthening capabilities of all staff and farmers involved in its implementation by offering the opportunity to practically implement new irrigation and farming techniques. Farmers and front-line extension staff would be trained in methodologies to identify markets for their products, product promotion and pricing as well as market intelligence. More specifically, national staff and farmers will be trained in various aspects of irrigated agriculture, agronomic methods of enhancing soil fertility, and marketing (see Training in Section VI - Inputs by FAO). The subsequent Expansion Phase would institutionalize the positive experiences gained under the TCP.

VI. Inputs to be Provided by FAO

Personnel (up to US$ 115,893)

The following personnel will be provided by FAO (see Annex 4 for Terms of Reference):

TCDC International Irrigation Expert National Irrigation Engineer National Agronomist National Agro-economist National Marketing Specialist PRA and Constraints Analysis Advisor

5 months 3 months 2 months 2 months 3 months 5 months

Assistance was provided by FAO to finalize the formulation of the captioned TCP project proposal. This assistance consisted of one Economist from TCIR (10 days) and one Irrigation Engineer (consultant, 14 days) (see Table 5 for detailed costs and Annex 4 for the Terms of Reference).

The TCDC Irrigation Engineer will provide his inputs in four missions during which he will assist in the initial technical designs, procurement arrangements and, later, supervise and monitor the implementation of the programme and assist in capacity building of DOI staff and farmers. His inputs will be spread over a two-year period. The national specialists will provide their services on a "while actually employed" basis composed of short missions to the project.

FAO, using technical staff from SAFR, will provide an Irrigation Engineer (3 weeks) to technically backstop the water control component and a Policy Economist (2 weeks) to backstop the Marketing and Constraints Analysis components. In addition, SAFR technical staff would undertake supervisory support to the project.

Official Duty Travel (up to US$21 100)

It is envisaged that FAO contribution will cover the duty travel of the national consultants, the TCDC expert, the backstopping officers and the mid-term review.

Contracts (up to US$10 000)

To finance the costs of a local NGO who would be hired to assist with the distribution of equipment and inputs, marketing of produce, recovery of loans from farmers and administration of the Revolving Fund (see Annex 4 for TORs)

General Operating Expenses (up to US$11 052)

Calculated on the following basis:

US$500 per month/consultant x 20 months US$ 10,000

+ provision for terminal statement US$ 1,000

Materials and Supplies (up to US$21 572; see Tables 1 - 3)

These relate to consumable supplies and agricultural inputs. The inputs will be supplied to the farmers by DOI on credit to be repaid at the end of the marketing season (see Section 8 - Special Considerations). Equipment (up to US$92 503; see Table 1)

This covers the provision of the irrigation equipment, one 4-wheel drive vehicle, one computer and printer, one photocopier and audiovisual equipment for training. The equipment will be procured according to FAO/GoX procedures. GoX, in collaboration with FAO, will select a suitable NGO to carry out the distribution of the irrigation equipment to the beneficiaries on loan and recover the loans from them (see Section 8 - Special Considerations).

Direct Operating Costs (up to US$20 000)

To cover miscellaneous expenses at FAO Headquarters related to the implementation of the project.

Training (up to US$60 880)

8 training courses for farmers and 10 training courses for front-line extension staff will be delivered, as well as 15 field days and a study tour to Zimbabwe for 12 farmers and frontline extension staff.

the tentative budget breakdown is as follows:

1. farmers @ US$ 10 per day for 18 days each - US$ 21 600
2. front-line extension staff @ US$ 20.00 per day for 7 days each - US$21 280
3. study tour to Zimbabwe for up to 12 farmers and frontline extension staff @ US$100.00 per day (consolidated cost) for 10 days - US$12 000
4. training - US$1 000
5. Analysis training - 5 000

VII. REPORTING

The reporting to the Government and FAO will be the responsibility of the National Programme Coordinator. The following reports are required:

Quarterly Reports

Every three months, the National Programme Coordinator will prepare, in the standard format, the Information Sheet on the SPFS for submission to FAO.

Six Monthly Reports

Every six months, the National Project Coordinator will prepare a project progress report containing:

• Actual implementation of activities compared to the workplan
• Identification of problems and constraints (technical, institutional, economic, social, etc.) in project implementation
• Recommendations for corrective measures
• Detailed and updated workplan for the following reporting period.

The Progress report will be submitted to the Government and FAO as scheduled in the overall workplan.

Technical Reports

The project will publish relevant technical reports, reference materials and training and extension materials to assist field staff in the implementation of the programme. The reports will be submitted, to both the GoX and FAO, by the National Planning Coordinator. Technical Reports as foreseen in the Outputs and Activities of the project documentation will be submitted by the National Project Coordinator to both the Government of Country X and FAO.

Field Documents

To be produced by national consultants and the TCDC Irrigation Engineer.

Terminal Reports

One month before the end of the project, the National Project Coordinator will submit a draft Terminal Report to FAO and the Government of Country X, for consideration at the terminal review meeting.

As per established FAO procedures, the AGLW/SAFM backstopping officer will draft a Terminal Statement to be submitted by FAO to the Government.

These report/statement will assess in a concise manner, the extent to which the project's scheduled activities have been carried out, its outputs and progress towards achieving the objectives. They will also provide adequate recommendations for the expansion phase.

Review

The progress of the project will be jointly examined by FAO and the Government of Country X at the end of the first year. The final evaluation of the project will be done towards the end of the second year and will produce recommendations for the Expansion Phase. A terminal review meeting will then be held to examine project achievements and decide on follow-up.

VIII. Government Contribution and Supporting Arrangements 1

Personnel

The project will be supervised by a National Programme Steering Committee (NPSC) composed of the Permanent Secretary of MAI as Chairman and Representatives of other institutions concerned with the implementation of the project, as well as the FAO Representative to Country X. The NPSC will oversee, guide and closely supervise the formulation and implementation of the programme including the coordination of programme funding from FAO and GoX. At MAI, Directorate of Immigration (DOI), will be entrusted with the overall day-to-day responsibility for the implementation of the project. MAI will appoint a National Project Coordinator, and provide on a part-time basis, the services of: an Irrigation Engineer, an Agronomist, and an Agricultural Economist, and field support staff at no cost to the project. Irrigation support to the project will be provided by DOI while support in extension and marketing will respectively be provided by the Department of Agricultural Extension Services (DAES) and the Department of Agricultural Planning Services (DAPS) of MAI (see also annex 3B, programme implementation arrangements).

Travel

As a supplement to FAO contribution.

General Operating Expenses

Include stationery, telephone, electricity and maintenance of Government equipment to be used by the project.

Equipment and Premises

The Government will provide furniture, vehicles and computer facilities for the project, as well as office space.

Training

The Government will provide accommodation for training and other facilities, such as printing of training materials.

Special Considerations

This project, as part of the WCC pilot phase of the SPFS, involves the introduction of new or unfamiliar technologies. The aim is to promote sustainable development of irrigation and ownership by farmers, not only on the project sites but also on a larger scale, during the expansion phase. Therefore, the demonstration of irrigation technologies will be linked to the testing of farmers' capacity and willingness to become owners of the technologies. The project approach is that sustained technological and social innovations can result only from farmers' participation and ultimate responsibility for financing and construction of the irrigation facilities.

This suggests that part of the risk and costs associated with participating in the demonstrations should be shared between the farmers and FAO. However, in the interests of determining replicability, and achieving sustainability, the farmers should be expected to meet all reasonable costs.

The formation of farmers into formal or informal groups and Water Users Associations (WUAs) and the establishment of sound principles of cost recovery in these groups would be an integral part of setting up the irrigation demonstrations. Beneficiary farmers would participate in the groups/WUAs and, through signed or verbal agreement, endorse the terms and conditions associated with the development and operation of the demonstrations. At the onset of the project, the National Project Coordinator and the DOI staff will hold discussions and negotiations with group/WUA members with a view to establishing cost recovery mechanisms on the basis of the principles set out in Annex 5.

PROJECT BUDGET

Country:	Country X
Project Title:	Water Control Component of the Special Programme for Food Security
Project Symbol:	TCP/..../....(D)

FAO CONTRIBUTION IN US$

BL	BUDGET ITEM	TOTAL
1100	International Experts and Consultants	11,000*
1200	FAO Advisory Technical Services (ATS)	16,202**
1300	Support Personnel	1,500
1700	National Experts and Consultants	22,500
1800	International Expertise under Partnership Programmes	40,000
1900	Supervisory Technical Services (STS) 1910 Standard Supervisory Technical Services (7,500) 1920 Supervisory Function of Lead Technical Units (1,170) 1930 Field Visits by Technical Officers (15,521) 1950 Thematic Evaluations (500)	24,691
	Sub Total Personnel	115,893
2000	Official Travel within the Country	21,100
3000	Contracts	10,000
4000	General Operating Expenses (GOE)	11,052
5000	Materials and Supplies	21,572
6000	Equipment	92,503
7000	Direct Operating Cost (DOC)	20,000
8000	Training	60,880
	Grand Total	353,000

For summary costs, by Budget Line and Component, see details in Annex 1 below.

* TCI Assistance to the TCP project formulation (see Table 5 and TORs in Annex 4).

** Includes US$9 043, cost of TCI assistance to project formulation (see Table 5 and TORs in Annex 4)

ANNEXES

1. BUDGET BREAKDOWN BY ACTIVITY AND YEAR

2. MATRIX DESCRIPTION OF PILOT SITES

3. WATER CONTROL OPTIONS AND PROGRAMME IMPLEMENTATION ARRANGEMENTS

4. TERMS OF REFERENCE

5. COST RECOVERY PRINCIPLES

6. FARM INCOME ANALYSIS

ANNEX 1

Budget Breakdown by activity

Foot Note:

1/ Composed of US$ 61,003 irrigation equipment and US$31,500 vehicles and office equipment.

For detailed costs by Component, please see Tables 1- 5 below.

ANNEX 1

Budget Breakdown by activity by year

Table 1: Water Control

	TCP/BL	Quantities				Costs (US$)
		Unit	1999	2000	Total	Unit Cost	1999	2000	Total
1. Investment Costs
A. Equipment
Treadle Pumps (1)		Sets	15		15	332	4,980		4,980
Motorised Pumps
Small Diesel (2)		Sets	3		3	5,138	15,414		15,414
Small Diesel (3)		sets	2		2	11,288	22,576		22,576
Submersible		Sets	1		1	6,819	6,819		6,819
Borehole & reservoir		No	1		1	11,214	11,214		11,214
Sub Total	6000						61,003		61,003
B. Training
Farmer Training						Lump sum	10,800	10,800	21,600
Staff Training						Lump sum	10,640	10,640	21,280
Farmer Tours						Lump sum	12,000		12,000
Sub Total	8000						33,440	21,440	54,880
C. Technical Assistance
Irrigation Engineer (TCDC)	1800	m/m	3	2	5	8,000	24,000	16,000	40,000
National Consultants (4) 1700	1700	m/m	4	3	7	1,500	6,000	4,500	10,500
FAO Technical back-stopping(ATS)	1200					Lump sum	4,000	3,160	7,160
FAO Supervisory Support (STS)	1900					Lump sum	4,000	2,500	6,500
Sub Total							38,000	26,160	64,160
Grand Total						193,943	77,152	271,095

(1) Treadle pumps, fittings and in-field improvements

(2) One motorised pump lifting water from a perennial river

(3) A set of two motorised pumps lifting water from Lake X.

(4) These are Irrigation Engineer, Agro-economist and Agronomist. All 2 m/m each.

Table 2: Agricultural Inputs 1/

1/ These are indicative only as the selection of actual crops and inputs to be demonstrated under Programme will be farmer-driven.

Table 3. Marketing

TCP/BL	Quantities				Cost (US $)
	Unit	1999	2000	Total	Unit Cost	1999	2000	Total
Marketing Specialist 1700	M/m	1.5	1.5	3	1500	2250	2254	4500
Training Materials 5500					L/Sum	1500	1500	3000
Group Formation 5000					L/Sum	1000	-	1000
DSA 2000	Days	15	15	30	40	600	600	1200
Transport (fuel, driver overtime etc.) 2000					L/Sum	1000	1500	2500
Sundries 4000					L/Sum	500	500	1000
Total						6850	6350	13200

Table 4: Constraints Analysis

TCP/BL	Quantities				Cost (US $)
	Unit	1999	2000	Total	Unit Cost	1999	2000	Total
Constraints Analysis Advisor 1/ 1700	m/m	4	1	5	1500	6000	1500	7500
DSA 2000	Days	70	40	110	40	2800	1600	4400
Transport (fuel, driver, overtime etc.) 2000					Lump Sum	1000	2000	3000
Enumerators 1300	Days	100	50	150	10	1000	500	1500
Stakeholders' Workshop 8000						1000	4000	5000
General Operating costs 4000						-	500	500
Total						11800	10100	21900

1 / Agro Economist with experience in PRA. Most of his inputs as well as those of others connected with the component (enumerators etc) will be needed in the first year of the Programme.

Table 5: Assistance to TCP Project Formulation

TCP/BL	Quantities				Cost (US $)
	Unit	1	2	Total	Unit Cost	1	2	Total
TCIR Economist Honorarium	Days	10			585	5850		5850
DSA	Days	14			178	2492		2492
Travel Total 1200					Lump Sum	700 9042		700 9042
International Consultant Honorarium Travel     Total 1100	Days Days	14 14			300 178 Lump Sum	4200 2492 4308   11000		4200 2492 4308   11000
Grand Total						20042		20042

ANNEX 2

Matrix Description of Pilot Sites

ANNEX 3 

 A. Water control options and programme implementation

B: Programme Implementation Arrangements

General

1. Overall responsibility for programme implementation will lie with the Ministry of Agriculture and Irrigation (MAI) through its line departments.

2. Coordination of the different inputs by the different department s of MAI will be carried out by the National Programme Coordinator (NPC). The NPC will also be responsible for the facilitating of linkages among other central and field level institutions whose operations have a bearing on the SPFS. He/she will liase with FAO and other donors who may be interested in participating in the SPFS. Additionally, he/she, in consultation with the appropriate technical line department of MAI, will be responsible for the sourcing and recruitment of consultants, formulation of the annual work plans for the programme and for regularly reporting programme activities to the National Steering Committee. His/her Terms of Reference are set out in Annex 4.

3. The Controller of the Department of Irrigation (DOI), through his staff at the Agricultural Development Division (ADD), Rural Development Division (RDD) and Extension Planning Area (EPA) levels, will be responsible for supplying irrigation extension to the farmers; recommending on what irrigation equipment to buy and methodologies for its installation; and organizing irrigation training activities for farmers and front-line extension workers.

4.The Director of Agricultural Extension Services (DAES) through his staff at the ADD, RDD and EPA levels, will provide extension support to farmers in all aspects of crop production, crop protection, soil fertility enhancement and training of both farmers and front-line extension staff involved in the programme. This will include liaising with the MAI officials in charge of the UNDP Sustainable Livelihood Programme to ensure that the SPFS pilot sites are included in the areas where the UNDP Programme will support the establishment of Farmer Field Schools (FFS).

5. The Controller of Agricultural Planning Services (CAPS) through Pricing and Marketing Unit, will be responsible for the implementation of the activities of the marketing component of the programme

6. The Government is discouraging the free handout of donor assistance to farmers. The equipment and inputs provided by this programme will therefore be given as credit in kind. DOI will therefore supply them to selected farmers on credit.

7. A detailed matrix of who will specifically do what is set out in the Plan Operation in Table A2 below.

Table A2: Plan of Operation

		Year 1				Year 2
Activity	Responsibility	1st quarter	2nd quarter	3rd quarter	4th quarter	1st quarter	2nd quarter	3rd quarter	4th quarter
Objective 1: Demonstrate Improved on-farm irrigation
Technologies and practices and train Department Of Irrigation (DOI) front-line extension staff and farmers
A. Irrigation systems introduced and installed	PIO
- Conduct awareness meeting & assess site	PIO
- Confirm site with DITF members	PIO
- Conduct PRA
- Debrief farmers & staff on PRA results	PIO
- Conduct farmers awareness meeting	PIO
- Facilitate elections for scheme committees	DO
- With farmers' collaboration, formulate draft constitution	DO
- Legalize the constitution	PIO
- Conduct soil & topographic survey	PIO
- Conduct groundwater investigation (B/hole only)	PIO
- Carry out preliminary & detailed design	PIO
- Discuss designs with farmers	PIO
- Drill borehall/tubewell	PIO
- Procure and supply pumps a.	NPC
- Dig shallow open wells (for treadle pumps)	PIO
- Procure construction materials/equipment	NPC
- Install pump, test and demonstrate	PIO
- Lay out irrigation network	PIO
- Carry out farm land development	PIO
B. Irrigation Technology Transferred
- Conduct farmer courses	PIO
- Conduct staff courses	PIO
- Conduct farmer study tours (in country)	PIO
- Conduct staff study tours (in country)	PIO
- Conduct staff/farmer study tours (external)	NPC
- Organize farmer field days	PIO
C. Irrigation Water management Monitoring Improved
- District task-force field visit	PIO
- Data collection (Monitoring etc.)	EvO
- Data analysis (Evaluation etc.) & report writing	EvO
- Conduct supervisor visits (ADD, RDP, EPA)	PIO
Objective 2: Demonstrate Improved agronomic and introduce high value crops under irrigated conditions
- Selection of suitable sites for demonstrations (partly done already)	PIO
- Selection of Farmers	PIO
- Assessment of the present crops and agricultural practices	PIO
-Establish Farmer Field Schools (FFS)	PIO
- Farmer selection of crops to be grown	DO
- Supply of necessary inputs	NPC
- Planning and demonstration of appropriate cropping programs,	GCO
including high value crops
- Planning and demonstration of appropriate on-farm water	PIO
Management techniques
- Monitoring and evaluation of introduced technologies	EVO
- Monitoring and evaluation of outputs from cropping programmes and water management	EVO
- Preparation of recommendations based on overall performance of demonstrated technologies	PIO
Objective 3: Demonstration soil fertility enhancement - Methodologies within the agronomic regime
- Selection of farmers to be trained	PIO
- Training of farmers and front-line agricultural extension staff through FFS	PIO
- Organizing of farmer field days in-country farmer visits	PIO
- Study tours farmers and agricultural extension staff	PIO
Objective 4: Demonstrate Improved Marketing Systems and Train Farmers and Extension Staff
- Training of farmers through FFS	CAPS
- Formation of Marketing Groups and Training of staff and Group members.	CAPS
- Development of strategies and an intelligence system	CAPS
- Farmers visits to markets	CAPS
- Monitoring and evaluation of the programme	CAPS
- Analysis of Constraints	CAPS
- Impact assessment and recommendation	CAPS
Objective 5: To identify and remove constraints that prevent farmers from increasing agricultural production and adopting improved technologies and management practices
- Base-line diagnostic survey of the pilot sites.	CAPS
- Socio-economic analysis of the farming population in the pilot sites.	CAPS
- Design an impact monitoring system.	CAPS
- Carry out simple statistical surveys and cost/benefit analysis.	CAPS
- Prepare discussion document consolidating the experiences, lessons learnt and proposals and plan for resolving the constraints identified.	CAPS
- A stakeholders' workshop to discuss and agree on the proposals set out in 5. Above.	CAPS

Key: DO = Development Officer; EvO = Evaluation Officer; NPC = FAO National Project Coordinator; PIO = Principal Irrigation Officer; Y2 = Year Two Site

Table A3
Government Contribution in Kind (Estimated in Local Currency)

	1999		2000		Total
	m/m	MK	M/m	MK	mm	MK
Personnel
1 National Project Coordinator	12	120,000	12	120,000	24	240,000
1 Irrigation Engineer	3	15,000	4	20,000	7	35,000
1 Irrigation Agronomist	3	15,000	4	20,000	7	35,000
1 Agro-Economist	3	15,000	4	20,000	7	35,000
8 ADD Programme Managers	8	64,000	8	64,000	16	128,000
8 ADD Principal Irrigation Officers	8	120,000	8	120,000	16	240,000
8 RDP Irrigation Officers	48	144,000	48	144,000	96	288,000
Component Total	77	413,000	80	428,000	157	841,000
Duty Travel		300,000		300,000		600,000
Miscellaneous/General Operating Expenses		300,000		300,000		600,000
(Telephone, electricity, stationery, operation and
Miscellaneous equipment)
Equipment
Furniture		200,000		300,000		500,000
Premises
Office space		200,000		300,000		500,000
Training
Training Facilities		300,000		300,000		600,000
GRAND TOTAL		1,793,000		2,008,000		3,641,000

US$ 1 = 40 MK approximately

ANNEX 4

TERMS OF REFERENCE

National Coordinator

Duration: 24 months (full time basis)

Job Description

The National Coordinator will be responsible for the following:

1. Ensuring the implementation of the SPFS and supervision of its activities, including the surveys and technical designs of the pilot areas, the procurement of equipment and necessary inputs and supplies.
2. Facilitating linkages among the central and local level institutions involved in the implementation of the Programme.
3. Liaising with FAO and other participating donors.
4. In collaboration with the respective service departments in MAI, ensuring the timely procurement of physical and technical assistance inputs.
5. Guiding, assisting and supervising the work of all parties involved in the programme.
6. In consultation with the respective technical line department heads, source and recruit consultants for the programme.
7. Publicizing the positive results of the programme to the Government and potential donors for the Expansion Phase.
8. Assisting with the organization of relevant workshops, seminars, training programmes.
9. Producing periodic progress reports of the programme and reporting the same to the National Steering Committee.
10. Producing the Terminal report for consideration at the Final Review Meeting.

Qualifications

The candidate should possess a least an Msc in Agriculture and have 10 years of professional experience, of which preferably at least 5 years should be in a project management position. Prior experience with internationally funded projects will be an added advantage.

The Non-Governmental Organizations(NGO)

Duration: 24 months

Job Description:

Under the guidance of the National Programme Coordinator (NPO), and in collaboration with other members of the project implementation team:

1. Collaborate with DOI in identifying farmers who are interested to form groups for irrigation activities.
2. Guide the farmers in the formation and administration of the groups.
3. In collaboration with DOI staff and on the basis of the recovery principles set in annex 5, discuss and agree with farmers on suitable cost recovery mechanisms and help in the establishment of revolving funds and sinking funds.
4. Train farmers in the administration of the revolving and sinking funds.
5. In collaboration with the NPO and DOI staff, distribute the irrigation equipment and agricultural inputs to the farmers.
6. At the end of every cropping season, assist the farmers in the marketing of their produce.
7. At the end of the marketing season, recover instalments of the loans for irrigation equipment and agricultural inputs as agreed beforehand with the farmers.

Qualifications:

A proven record in the mobilization of farmers, training rural groups, and delivering agricultural services particularly rural finance and marketing.

TCDC International Irrigation Engineer

Duration: 5 months (in four missions)

Job Description:

The International Irrigation Engineer will undertake his/her duties under guidance of the National Project Coordinator and in collaboration with other members of the study team and national staff. His/her specific duties will be implemented in three missions over the project period and will include:

First Assignment Mission (March - April 1999 - one and a half months)

1. Define requirements and TOR for supporting surveys, technical studies and PR appraisals to be carried out for technical and social feasibility and design of the water control technologies to be introduced;

   assess staffing of local DOI and Agricultural and Rural Development Divisions (ADD, RDD), Extension Planning Area (EPA) and suitable NGOs in the pilot districts and advise on appropriate institutional framework in support of the implementation of the programme;

   in the supervision of the surveys and technical designs of the pilot areas, the procurement of equipment and necessary inputs and supplies;

   engage a suitable NGO or local manufacturer in providing the necessary support to the introduction, manufacturing, sale and servicing of the treadle pump and other irrigation pump devices;

   the NPC in the preparation of a realistic work plan for the implementation of the water control component of the SPFS linked to the .irrigation season of 1999;

   in the organization of a national seminar to present and discuss the SPFS workplan;

   in the organization and conduct of a technical staff training course (TST1) to prepare technical field staff on the implementation of the programme;

   relevant training and reference material to assist staff in the implementation of the programme;

   in the preparation of relevant extension material and staff training for the implementation of the Farmers' Field School in Farm Water Management.

   Second Assignment Mission (July - August - one and a half months)

   • Review, during monitoring visits to the field and in cooperation with national consultants, the introduction of water control techniques and improved agricultural practices, assess constraints and advise field staff on the various aspects of the water control techniques in the field;
   • organize during the growing season technical training session (TST2) for field staff to evaluate progress and constraints and enhance knowledge and skills of the technical and extension staff on specific aspects and techniques,
   • organize for September a staff training (TST3) to conclude and evaluate results of the for 1999 irrigation season;
   • prepare a mission report concluding results of one irrigation season and prepare recommendations for the implementation of the second season in 2000.

   Third Assignment mission (March 2000 - one month)

   • Assist the NPC in the preparation of a work plan and training programme for the implementation of the WCC-SPFS programme for the irrigation season of 2000;
   • assist in the organization and conduct of a technical staff training course (TST4) to prepare technical field staff in the implementation of the programme for the 2000 season;
   • prepare and update relevant training and reference material to assist staff in the further implementation of the programme;
   • review in monitoring visits to the field and in cooperation with national consultants results and constraints and advise on the further enhancement of the programme;
   • assess in discussions with the relevant departments and donor agencies on possibilities and options for the SPFS expansion phase10.

   Fourth Assignment mission (Sept 2000 - one month)

   • review, during monitoring visits to the field and in cooperation with national consultants, the results and achievements of the programme and assess institutional and political constraints to expand the programme on a national scale;
   • organize in September a staff training workshop (TST5) to conclude and evaluate results of the 2000 season and to reach conclusions on constraints and recommendations for further expansion of the programme;
   • assist in the organization of a national seminar for senior staff in MAI and Donor agencies to present and discuss the results of the SPFS programme and recommendations for the further expansion of the programme,
   • prepare a mission report which will conclude results of the national seminar.
   • Assist the NPC in drafting the Terminal Report.

Qualifications

At least an MSc in Irrigation Engineering and 10 years of experience in irrigation planning, implementation and monitoring and evaluation. Prior international experience would be an added advantage.

National Agro-Economist

Duration: 2 months (on a when-actually-employed basis)

Job description

The Agro-economist will undertake his/her duties under the guidance of the NPC and in collaboration with other members of the team and national counterparts. His/her duties include:

• the NPC to prepare a work plan for the SPFS.
• out a review of financial and economic impacts of the programme.
• in the marketing training of farmers.
• monitoring and evaluation guidelines for the programme.
• Preparing appropriate reports as specified in the work plan.
• with the preparation of the Expansion Phase of the programme.
• other duties as defined by the NPC.

Qualifications

A minimum of Msc in Agricultural Economics and at least 7 years of experience on economic and financial evaluation of agricultural projects.

National Agronomist

Duration: 2 months (on a while actually employed basis)

Job Description

The Agronomist will work under the orientation of the NPC. The responsibilities of the agronomist include:

1. Assisting the NPC to prepare a work plan for the SPFS.

2. Assisting with the implementation of the crop intensification and diversification activities of the SPFS.

3. Assisting in fine-tuning the agricultural aspects of the programme.

4. Contributing to the preparation of proposals for the Expansion Phase.

5. Carrying out any other duties as defined by the NPC.

Qualifications

A minimum of Msc in Agronomy and at least 7 years of experience in work related to agricultural development projects.

National Irrigation Engineer

Duration: 3 months (on a while actually employed basis)

Job Description:

The National Irrigation Engineer will undertake his/her duties under the guidance of the National Project Coordinator and the International Irrigation Engineer. His/her duties include:

1. Assisting the NPC to prepare work plan for the water control component of SPFS.

2. Assisting the NPC in implementation and supervision of the irrigation activities of the project, including surveys and technical designs of the pilot areas.

2. Assisting the counterparts involved in planning and implementation of the programme.

3. Assisting the NPC with monitoring and evaluation of the activities of the programme.

4. Assist in the formulation of the Expansion Phase proposals.

5. Carrying out any other tasks defined by the NPC.

Qualifications

A minimum of Msc degree in Irrigation Engineering/Water Management and at least 7 years of experience in irrigation planning, designing, implementation and monitoring and evaluation.

Marketing Specialist

Duration: 3 months (on a while actually employed basis)

Job Description

The Marketing Specialist will undertake his/her duties under the guidance of the NPC and collaboration with other members of the team. His/her duties include:

1. Assisting the NPC to prepare a workplan for the SPFS.

2. Training front-line extension staff and farmers on market intelligence, product promotion and pricing, and market access.

4. Providing guidelines for the assessment of marketing effectiveness in project areas.

5. Assisting the farmers with the establishment of appropriate marketing strategies.

6. Preparing appropriate reports as required by the NPC.

Qualifications

A minimum of Msc degree in Agricultural Economics (Marketing) or Business Administration (Marketing) and at least 7 year' experience in marketing role with a reputable organization, preferably in the food industry.

National Pra and Constraints Analysis Specialist

Duration: 5 months

Job Description:

Under the direct supervision of the National SPFS Programme Coordinator and the support of the FAOR and the responsible TCO Officer, and with the technical support of the responsible TCA Policy Officer and the orientation to be provided by detailed guidelines prepared by FAO, the National Results and Constraints Analysis Advisor will:

(1) prepare a programme of work to carry out, in a participatory way, the analysis of constraints to increased production under the scope of the SPFS, and identify the areas of expertise and the human resources required;

(2) organize the collection of information for the constraints analysis, including the carrying out of base-line diagnostic surveys and small statistical farm-management type performance surveys in the pilot phase sites;

(3) select and supervise the work being undertaken in this respect by the national team as well as national consultants, if required;

(4) review all reports relating to end-of-season results, impact monitoring and constraints analysis;

(5) ensure that the SPFS national team maintains a suitable database for these purposes;

(6) assist in organizing discussions of national and regional constraints with stakeholders, and in preparing for National Coordinating Committee meetings and finalizing reports required by funding agencies for these purposes;

(7) assist in the preparation of investment and policy and institutional reform programmes for the expansion phase benefiting from the lessons learnt from the analysis of constraints; and

(8) perform other related duties as required to ensure the smooth operation of the programme. Specifically, he/she will:

A. During the start of pilot phase activities

1. Review existing literature on the potentials and constraints for food production in the country, and indicate the ways in which the activities proposed for the pilot phase relate to those potentials and constraints.

2. Arrange for the carrying out of a base-line diagnostic survey using participatory appraisal methods of the areas selected for the pilot phase, covering:

• a summary description of agro-ecological and institutional conditions;
• a description of existing production systems, including farm management practices, farm budgets (including calculations of gross and net margins), allocation of land and labour (by gender and age group), processing and marketing, and off-farm sources of income; include also a section on past evolution and evolutionary trends of the production systems; and
• a socio-economic analysis of the farming population of the areas, including distribution of assets, access to land, labour, inputs and produce markets, access to support services, gender roles, relevant institution and cultural factors, and existing processes of accumulation and impoverishment.

3. Assist the National Coordinator in the design of an impact monitoring system which will permit to assess achievements of the pilot phase in each demonstration area at the end of each production season.

B. During and at the end of each production season

1. Provide the support necessary to enable local and district-level extension workers and other programme coordinators and external appraisal teams, if required, to hold regular group meetings and informal discussions with farmers and other local people and stakeholders on the progress and results of the demonstrations, in particular on problems encountered, and actions to address them. (In carrying out this task, provision should be made in the national programme budget for the recruitment of national consultants or the contracting of NGOs, Universities or other groups with experience in participatory methods to provide extra support to local and district-level coordinators, as required, or carry out independent assessments).

2. Organize and supervise the carrying out of simple statistical surveys at the end of the growing seasons to collect the minimum farm budget data (mostly use of land, yields, input and labour use) required to assess the evolution of the demonstration areas.

3. Build up a dossier documenting the problems encountered, analyzing their apparent causes and describing and justifying the proposed solutions.

4. Assist the national coordinator to

i) carry out inquiries and organize a participatory dialogue with stakeholders on food security issues and related constraints at the regional and national level;

ii) stir up discussion among stakeholders on investment and policy actions required to address those constraints; and

iii) discuss within the National Coordinating Committee those policy and investment proposals which appear to be mature for action.

5. Link up with on-going projects and programmes in the country to search for solutions to the constraints identified and to incorporate their experience in the constraints analysis work.

C. Around six months before the end of the pilot phase

1. Prepare a discussion document consolidating the experience and lessons learnt from parts A and B above and the proposals emerging from them, and assist in the dissemination and discussion of the document among all interested parties.

2. Assist the national coordinator, relevant government officers and interested donors to organize and carry out the preparation of a programme of action for the expansion phase, which would profit from the experience and lessons learnt during the pilot phase. This programme of actions would consist of:

i) an investment programme for the expansion phase capable of being appraised for financing by government and donors; and

ii) linked to it, a coherent set of recommendations to improve institutional mechanisms and policies in order to foster national food security (whose implications in terms of capital and recurrent costs should be included in the investment programme). The expansion phase may also include the extension of pilot activities in other areas.

Essential Qualifications

Person with 10 years' experience in programme and project planning, participatory methods, institutional management, political decision making processes, with an established reputation in the country.

Education qualification Agricultural or Socio Economist with a Masters Degree.

FAO Technical Assistance

IRRIGATION ENGINEER

Duration: 5 Weeks

Duties:

Under the direction of the concerned Service Chief in the Land and Water Division (AGL) and operating from SAFM, he /she will:

First Mission: March/April 1999 - two and a half weeks (2.5)

1. Review the terms of reference for the TCDC and national consultants assisting in the implementation of the SPFS.

2. Participate in the selection of the national and TCDC consultants and review and clear their outputs.

3. Review the designs and tender documents for the selected sites and assist the National Project Coordinator in launching the implementation phase of the SPFS.

4. Offer technical support to the irrigation engineers implementing the program.

5. Prepare a detailed training programme for the irrigation activities.

6. Prepare a technical report on the above.

Second Mission: June/July 1999 - Half (0.5) a week.

1. Review, in discussions with the SPFS national team and, during visits to the pilot sites, with farmers, the technologies being demonstrated.

2. Prepare recommendations for the further improvement of the technologies being demonstrated.

3. Advise on the curriculum and materials for the training of farmers and front-line extension staff.

4. Advise on the terms of reference and work plan for the national consultant irrigation engineer.

5. Prepare a technical mission report.

Third Mission: March/April 2000 - Half (0.5) week

1. Review results of the previous irrigation season by the project.

2. Review and advise on the work plan for the next irrigation season.

3. Review and advise on the irrigation-training programme for the farmers and frontline extension staff.

4. Prepare a technical mission report.

Fourth Mission: September/October 2000 - One and a half weeks (1.5)

1. Review the results of implementing the WCC and assess farmers' acceptance of the irrigation technologies demonstrated.

2. Review the technical reports prepared by the TCDC Irrigation Engineer and national implementing team and consultants.

3. Review work plans for the season.

4. With the SAFR Policy Officer, review the constraints identified in as far as irrigation and water management are concerned and assess their impact on the programme.

5. Assist in the preparation of recommendations for an outline of an investment programme for the expansion phase.

5. Any other duties designated by the responsible Service Chief in AGL Division.

6. Prepare a technical mission report.

7. Prepare the Terminal Statement to be submitted by FAO to the Government, as per established FAO procedures.

FAO TECHNICAL ASSISTANCE

POLICY OFFICER

Duration: 2 Weeks

Duties:

Under the guidance of the respective unit chief in TCA Division and operating out of SAFR:

First mission: Mid 1999 - One (1) week.

1. Review the terms of reference for the various national consultants to be recruited in support of the Results and Constraints Analysis (RCA) of the TCP.

2. Screen and evaluate candidates for the RCA national consultant posts.

3. Guide the national consultants on the scope, methodology and reporting of RCA activities.

4. Any other duties as assigned by the respective unit chief in TCA Division.

5. Prepare a technical report.

Second mission: Autumn 2000 - One (1) week

1. Review the relevant documentation, hold discussions with the SPFS national team and, in visits to the pilot sites, assess the effectiveness of the project in terms of increased food security and household incomes.

2. Review, comment on, and finalize the RCA report.

3. Participate in a national stakeholders workshop to discuss the RCA report with the view to agreeing on strategies and action plans for removal of the constraints identified.

4. Any other duties as assigned by the respective unit chief in TCA Division.

5. Prepare a technical mission report.

TCI Backstopping Mission for the Formulation of the Water Control TCP

On or about 2 November 1998, the members of the mission will proceed to Country X to assist the National Formulation Team (NFT) to finalize the formulation of the draft TCP Project agreement to finance the Water Control Component (WCC) of Pilot Phase of the SPFS. They will stay in the country for about two and half weeks. They will visit the sites which have been selected for the Pilot Phase operations, collect the relevant data and discuss the SPFS with relevant potential beneficiaries. They will work closely with the office of the FAO Representative.

The Economist / Financial Analyst will be the mission leader and the main focus in contacts with Government and FAO Representation. He/she will review the SPFS proposal and ensure that it is in accordance with the SPFS approach and guidelines. With the National Programme Coordinator, he will review the documents for the Water control Component, including the related draft TCP project agreement and Plan of Operations. He/she will agree with the NFT on required changes in the respective documents and assist the NFT to finalize them. Specifically, he/she will be responsible for the: (i) programme cost estimates; (ii) financial and economic analysis of the programme, including issues on cost recovery and financial sustainability; and (iii) organization and management aspects of the Programme. In conjunction with the Government, he/she will also investigate other potential donor support for the programme. He/she will also review and recommend on the institutional arrangements for the Pilot Phase and draft TORs for national and international consultants and the backstopping/ATS missions foreseen during programme implementation.

The Irrigation Engineer will review and complete the Water Control Component proposal and the related TCP project agreement and Plan of Operations. In conjunction with the National Agriculturist, he/she will assist the NFT in assessing the production and cost implications of the proposed irrigation activities and the subsequent benefits to the participants. He/she will also review and recommend on the institutional arrangements for the Pilot Phase and draft TORs for national and international consultants and the backstopping/ATS missions foreseen during programme implementation.

Before leaving Country X, the mission will discuss the draft documents with the National Programme Coordinator and ensure that the approach and revisions to the documents have the full backing of the Government.

On return to Harare, the mission will prepare a Back-to-Office and Full Report. The mission will send the revised WCC/TCP documents to Rome for final review.

ANNEX 5

COST RECOVERY AND REVOLVING FUNDS

With the assistance of an NGO and DOI staff, a farmer group/WUA would establish one or more revolving funds for the group/WUA scheme into which payments to recover the costs of scheme development and operation would be paid. The revolving funds would be administered by the group itself through the WUA committee and, if deemed necessary, with the help of an NGO.

For capital irrigation works associated with the development of irrigation infrastructure such as headworks, canals, drains, and non-removable equipment (buried pipes, pump houses, etc.), no recovery of the capital costs would be expected. However, the beneficiary farmers are expected to provide a substantial contribution towards the costs of the construction works with labour and materials such as clearing, excavation works and procurement of construction materials (sand, stones etc.). In certain cases also part of the contributions in kind can be replaced by cash contributions.

For mobile irrigation equipment associated with movable irrigation devices (pumps, equipment, etc.) farmers would be expected to recover in principle all costs through an appropriate financial arrangement (private or communal credit schemes, or revolving funds). Recovery will be effected by payments over an agreed period (up to 5 years) and interest rates should reflect the market rates. In exceptional cases, where initial investments are high and present income of farmers is low, consideration should be given to subsidize part of the investment costs. The financial arrangements and level of subsidy would be determined by a socio-economic analysis, which will recommend a fair rate of recovery in relation to expected income from irrigated crop production and advise on a suitable mechanism to recover costs through local credit arrangements and revolving community funds.

The resources accumulated in the revolving fund would be available as loans for members and for new farmers participating in the programme, upon terms and conditions agreed by the members of the group/WUA.

For scheme level (e.g. for the proposed submersible pump demonstration), operating costs (including routine maintenance), farmers would make payments into an operation and maintenance fund, the level of which would be set by the committee of the group/WUA. Fee levels would be determined by estimated operation and maintenance costs, and levied according to estimated (or, if appropriate, measured) water use or holding size.

For seasonal inputs (fertilizer, seed, pesticides etc) including simple hand tools, if they are provided by the project for the demonstration programme, a separate revolving fund would be established. Repayments would be made by farmers at the end of the marketing season. The resources accumulated in this revolving fund would be available as loans for members and new farmers participating in the programme, upon terms and conditions agreed by the members of the group/WUA.

For the future replacement of major equipment associated with the irrigation activities, participating farmers would be encouraged to establish a sinking fund, into which annual payments determined by the members of the group/WUA would be made.

Monitoring the beneficiary contributions and the operation of the various revolving funds would be an important element in the programme. The group/ WUA would be expected to keep careful records, which would be examined during the constraints analysis with a view to assessing replicability and sustainability.

ANNEX 6

FARM INCOME ANALYSIS

Crops

Crop budgets were estimated for the recommended crops using November 1998 prices. Farm labour is generally readily available. The gross margin analysis and returns for all the crops (except green maize) are generally attractive and are summarized below. When the crop growth duration is taken into account, green beans would produce much higher returns per hectare month because if grown in inter-cropping with maize, two crops of green beans could be grown with each cycle of maize. Besides financial returns, pigeon pea and soybean are also valuable for purposes of building up soil fertility and thus, contributing towards the sustainable exploitation of the soils. In terms of inputs, the programme will emphasize the use of compost manure and as little inorganic fertilizers as possible. IPM demonstrations are due to start in the country and the pilot sites would be ideal for these. The programme is therefore recommending a minimum use of pesticides.

Summary of Net Returns for Recommended Crops for the Pilot Phase

____________________________________________________________________________________

Crop Returns per Growth Returns per

Man day Duration ha/month

($) (months) ($)

Green Beans 0.28 2 94.75

Tomato 1.00 5 139.2

Cabbage 0.26 4 41.86

Green Maize 0.06 4.5 8.39

Onion 1.11 5.5 134.21

Spices 2.22 7 215.64

Pigeon Pea 0.76 9 56.7

Soybean 0.391 5 53.26

Although the return on green maize is low, the crop is usually inter-cropped with other crops. Because the above crops would not be grown in the dry months without irrigation, the above returns are all incremental. However, it is estimated that, if farmers tried to grow under dryland farming conditions, only about 10% of the yields expressed here would be attained.

Spices, soybean and pigeon pea would be new crops. Crop budgets for each crop proposed for demonstration are set out in Tables 1 - 8.

Irrigation Pumps

Three types of pumps would be demonstrated: the treadle pump; the small-motorised pump; and the submersible pump. It has been decided to include the latter two, although more costly to buy than the treadle pump, so as to cater for groups of farmers and demonstrate appropriate methodologies for joint ownership and operation of the pumps. It is proposed to share one pump at least among 10 farmers. Government is strongly promoting the formation of Water Users' Associations. It is envisaged that the farmers participating in the demonstrations would be members of those associations. The treadle pumps, because of the low cost involved, would be individually owned.

The cost of irrigation development is estimated at US$ 1 106 per ha for the treadle pump technology; US$ 1027 per ha for the small motorised pump; and US$ 1 803 per ha for the submersible pump. Operational costs are estimated at US$ 697 per annum for the small motorised pump and US$ 174 per annum for the submersible pump. Operational costs for the treadle pump are negligible.

Because of the small capital outlay involved, it has not been considered necessary to prepare cashflow statements for the treadle pumps. However, motorised pumps are more expensive and involve a substantial amount of operational costs. Cashflow projections have therefore been prepared for the motorised and the submersible pumps (see Table 9 and 10). Over an estimated useful life of 5 years for the motorised pump and 10 years for the submersible pump, the analysis shows that both technologies would be viable, attaining internal rate of return of 33% and 45% respectively. They also show that with the cash surpluses generated from year 2 onwards, the farmer groups would easily be able to pay off their borrowings (estimated at US$ 5,000 for the small motorised pump and US$ 16,000 for the submersible pump), within 4 years.

Cost Recovery

To make the demonstrations attractive to the participants while at the same time ensuring the long-term sustainability of the operations, it is essential that the participants be required to make reasonable contribution towards the investments. Guidelines on the proposed cost recovery and administration methodologies proposed are set out in Section VIII and Annex  5 of the main project proposal.

Table 1: Green Beans - 1.0 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Fertiliser - Manure - Compound D - Ammonium Nitrate - Dithane M45 3. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 2. Sales 1/ Net Returns	Kg 80 0.92 73.60 Ton 5 2.38 11.90 Kg 200 0.1 20.00 Kg 30 0.1 3.00 Kg 7 7.0 14.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 20 0.60 12.00 Man day 20 0.60 12.00 Man day 600 0.60 240.00 530.50 Ton 3 240.00 720.00 189.50

1/ Estimated Yield is 3 tons per ha and a farmgate price equivalent to US$ 80 per ton.

Returns per man day = $ 0.28

Table 2: Tomatoes - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Fertiliser - Manure - Compound S - Ammonium Nitrate - Dithane M45 4. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	Kg 0.25 51.60 12.90 Ton 5 2.30 11.90 Kg 300 0.15 45.00 Kg 50 0.10 5.00 Kg 1 7.00 7.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 40 0.60 24.00 Man day 20 0.60 12.00 Man day 600 0.60 360.00 700 501.40 Ton 10 120 1,200.00 698.6

1/ Estimated yield of 10 tons per ha and a farmgate price equivalent to US$ 120 per ton.

Returns per man day = $1.0

Table 3: Cabbage - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seedlings 2. Fertiliser - Manure - Compound S - Ammonium Nitrate - Thiram 80% 3. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	No. 33.53 8.60 288.36 Ton 5 2.38 11.90 Kg 250 0.15 37.50 Kg 100 0.10 10.00 Kg 1 17.00 17.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 40 0.60 24.00 Man day 20 0.60 12.00 Man day 600 0.60 360.00 700 784.95 Ton 10 95.24 952.40 167.45

1/ An estimated yield of 10 tons per ha and a farmgate price equivalent to US$ 95 per ton.

Returns per man day = $0.26

Table 4: Green Maize - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed (NSCM 41) 2. Fertiliser - Manure - Compound D - Ammonium Nitrate - Dithane M45 3. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	Kg 25 1.67 41.75 Ton 5 2.38 11.90 Kg 200 0.10 20.00 Kg 40 0.10 4.00 Kg 2 7.00 14.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 40 0.60 24.00 Man day 8 0.60 4.80 Man day 600 0.60 360.00 680 504.45 Ton 10 54.42 544.20 39.75

1/ An estimated yield of 10 tons per ha and a farmgate price equivalent to US$ 52.4 per ton.

Returns per man day = $ 0.06

Table 5: Onion - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Fertiliser - Manure - Compound S - Ammonium Nitrate - Lime - Dithane M45 3. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	Kg 6 47.62 285.72 Ton 5 2.38 11.90 Kg 300 0.15 45.00 Kg 60 0.10 6.00 Kg 10 0.02 0.20 Kg 2 7.00 14.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 10 0.60 6.00 Man day 15 0.60 9.00 Man day 600 0.60 360.00 665 761.82 Ton 10 150 1,500.00 738.18

1/ Estimated yield of 10 tons per ha and a farmgate price equivalent to US$ 150 per ton.

Returns per man day = $ 1.11

Table 6: Spices - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Fertiliser - Manure - Compound S - Dithane M45 3. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 4. Sales 1/. Net Returns	Kg 10 3.50 35.00 Tons 5 2.38 11.90 Kg 200 0.15 30.00 Kg 2 7.00 14.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 20 0.60 12.00 Man day 20 0.60 12.00 Man day 600 0.60 360.00 680 490.50 Ton 2 1,000 2,000.00 1,509.50

1/ Estimated yield of 2 tons per ha and a farmgate price equivalent to US$ 1,000 per ton.

Returns per man day = $ 2.22

Table 7: Pigeon Pea - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	Kg 6 0 .95 5.70 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 15 0.60 9.00 Man day 20 0.60 12.00 Man day 600 0.60 360.00 675 410.70 Ton 1 921 921.00 510.30

1/ Estimated yield of 1 ton per ha and a farmgate price equivalent to US$ 921 per ton.

Returns per man day = $ 0.76

Table 8: Soybeans - 1 Hectare

Inputs	Unit Quantity Unit Cost Value (US$) (US$)
COSTS 1. Seed 2. Dithane M45 2. Labour - Land preparation - Planting - Weeding - Harvesting - Water lifting Total Production Costs INCOME 1. Sales 1/ Net Returns	Kg 80 0.92 73.60 Kg 2 7.00 14.00 Man day 30 0.60 18.00 Man day 10 0.60 6.00 Man day 20 0.60 12.00 Man day 20 0.60 12.00 Man day 600 0.60 360.00 680 495.60 Ton 0.8 952.38 761.90 266.30

1/ Estimated yield of 0.8 ton per ha and a farmgate price equivalent to US$ 952 per ton.

Returns per man day = $ 0.39

Table 9: Cashflow for Diesel Motorized Pumps (4hp)

(Total Irrigated Area: 5 ha)

Year

1 2 3 4 5

Outflows

Investment costs

Pump 3035

In-field works 1803

Miscellaneous 300

Operating Costs

Fuel and Lubricants 400 400 400 400 400

Maintenance 250 250 250 250 250

Total 5788 650 650 650 650

Inflows

Net Margins

Tomatoes (1 ha) 279 489 699 699 699

Cabbages (1ha) 74 129 184 184 184

Onion (1 ha) 295 517 738 738 738

Green maize (1ha) 16 28 40 40 40

Spices (1ha) 623 1090 1557 1557 1557

Total 1268 2219 3170 3170 3170

Net Inflow/outflow -4520 17569 2520 2520 520

Financing

Medium Term Loan 5000

Loan Repayment 1250 1250 1250 1250

Total 5000 -1250 -1250 -1250 -1250

Net Inflow/Outflow

After Financing 480 319 1270 1270 1270

Financial Rate of Return 33%

Table 10:

Cashflow for Submersible Water Pump(10hp)

(Total Irrigable Area: 10 ha)

Year 1 2 3 4 5 7 8 9 10

Outflows

Investment costs

Borehole 4549

Pump 6819

Reservoir 2256

In-field works 4109

Miscellaneous 300

Operating Costs

Electricity 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Total 19033 1000 1000 1000 1000 1000 1000 1000 1000 1000

Inflows

Net Margins

Green maize (2ha) 32 56 80 80 80 80 80 80 80 80

Onion (2ha) 591 1033 1476 1476 1476 1476 1476 1476 1476 1476

Spices (4ha) 2415 4227 6038 6038 6038 6038 6038 6038 6038 6038

Tomato (2ha) 559 978 1397 1397 1397 1397 1397 1397 1397 1397

Total 3596 6294 8991 8991 8991 8991 8991 8991 8991 8991

Net Inflow/outflow -15437 5294 7991 7991 7991 7991 7991 7991 7991 7991

Financing

Loan 16000

Loan Repayment 4000 4000 4000 -4000

Total 16000 -4000 -4000 -4000 4000

Net Inflow/Outflow after Financing

563 1294 3991 3991 3991 7991 7991 7991 7991 7991

Rate of return 45%

1 The participation and obligations of governments are also outlined in the standard text of the General Provisions which is attached to and is full part of any TCP project agreement or letter of agreement (seen Annex II)

Consideration will be given to substituting TCDC expertise by expertise available within the framework of South-South Cooperation (SSC), provided that such an SSC agreement would be concluded by the Government with another FAO Member Country subject to the availability of such expertise with the required qualifications within the project workplan, and not exceeding the budget foreseen for the TCDC expertise (US$40,000). In this case, the project would cover the salaries and DSA of SSC experts, excluding travel costs.