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MINISTRY OF AGRICULTURE, MECHANISATION AND
IRRIGATION DEVELOPMENT:
DEPARTMENT OF IRRIGATION DEVELOPMENT
APPRAISAL REPORT
ZHOVHE SMALL SCALE IRRIGATION PROJECT
ZIMBABWE
LIST OF ANNEXES
Number Title
1. Map Showing Project Area
2. List of Goods and Services
3. Environmental Impacts and Proposed Mitigation Measures
4. Tentative Implementation schedule
5. Crop Budget and Financial Analysis
6. Calculation of the Economic Internal Rate of Return
LIST OF TABLES
Number Title
4.1 Summary of Project cost Estimates by Component
4.2 Project Cost by Category of Expenditure
4.3 Source of Financing
5.2 Summary of Other Models of Arrangements
5.5 Expenditure Schedule by Source of Finance
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TABLE OF CONTENTS
BASIC DATA, CURRENCY AND MEASURES, LIST OF (i)-(vii)
TABLES, LIST OF ANNEXES, LIST OF ABBREVIATIONS,
PROJECT BRIEF, PROJECT MATRIX.
1 INTRODUCTION BACKGROUND AND BANK STRATEGY 1
1.1 Origin and History of the Project 1
1.2 Performance of Similar Projects in the Country 1
2 THE AGRICULTURAL SECTOR 2
2.1 Salient Features and Structure 2
2.2 Constraints to the Development of The agricultural Sector 3
2.3 Performance of the Sector 3
2.4 Agriculture Institutions 3
2.5 Government Policies in the Agricultural Sector 4
2.6 Land Tenure and Land Use 5
2.7 Credit System in the Sub-Sector and Constraint 6
3 THE IRRIGATION SUB-SECTOR 7
3.1 Irrigation Sub-sector Analysis 7
3.2 Project Area 8
3.3 Project Beneficiaries 8
3.4 Environment 9
3.5 Gender Issues 9
3.6 Donor Co-ordination 10
4 THE PROJECT 10
4.1 Project Objectives
4.2 Description of Project Outputs 11
4.3 Detailed Description of Activities and Components 13
4.4 Project Assumptions and Risk 13
4.5 Project Costs 14
4.6 Sources of Financing 15
4.7 Environmental Impacts 16
4.8 Impact on Women 16
4.9 Poverty Reduction 16
5 PROJECT IMPLIMENTATION 16
5.1 Executive Agency 16
5.2 Organization and Management 17
5.3 Procurement of Goods, Works and Services 18
5.4 Implementation Plan and Expenditure Schedules 21
5.5 Monitoring and Evaluation 22
5.6 Recurrent Costs, Cost Recovery and Project Sustainability 22
6 TECHNICAL AND ECONOMIC JUSTIFICATION 24
6.1 Technical Justification 24
6.2 Project Benefits 24
6.3 Financial and Economic Justifications 25
7 CONCLUSIONS AND RECOMMENDATIONS 26
7.1 Conclusions 26
7.2 Recommendations and Conditions of Loan 27
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WEIGHTS AND MEASURES
1 Metric Ton (mt) 2.200lb (pounds)
1 Kilogram 2.2lb (pounds)
1 Meter 3.28ft (feet)
1 Kilometer 0.62 miles
1 Hectare (ha) 2.471 acres
LIST OF ABBREVIATIONS
ADB African Development Bank
ADF African Development Fund
AFC Agricultural Finance Corporation
AGRITEX Agricultural Technical and Extensional Services
ASMP Agricultural Services Management Project
CAMPFIRE Communal Area Management Program for Indigenous Resources
COTTCO Cotton Company of Zimbabwe
CSC Cold Storage Company
DDF District Development Fund
DMB Dairy Marketing Board
DRSS Department of research and Specialized Services
DWD Department of Water Development
DVS Department of Veterinary Services
EIA Environmental Impact Assessment
EIRR Economic Internal Rate of Return
ESAP Economic Structural Adjustment Program
FAO Food and Agriculture Organization
GDP Gross Domestic Product
GMB Grain Marketing Board
GNP Gross National Product
GOZ Government of Zimbabwe
ICB Internal Competitive Bidding
IPPM Integrated Production and Pest Management
IMC Irrigation Management Committee
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MIS Monitoring Information System
MLGNH Ministry of Local Government and National Housing
MoLA Ministry of Lands and Agriculture
NGO Non-Governmental Organizations
RDC Rural Development Council
SADC South African Development Community
SEDCO Small Enterprises Development Program
UA Unit of Account
UNDP United Nations Development Program
ZDB Zimbabwe Development Bank
ZIMPREST Zimbabwe Program for Social Transformation
PROJECT INFORMATION SHEET
Date: MAY 2012
The information given hereunder is intended to provide some guidance to prospective financiers,
contractors, consultants and all interested stakeholders. More detailed information and guidance should
be obtained from the Executing Agency.
1. COUNTRY : Zimbabwe
2.
3. NAME OF PROJECT : Zhovhe Small Scale Irrigation Projects
4.
5. LOCATION : Matabeleland South Province
6.
7. PROJECT PROMOTER : The State of Zimbabwe
8.
9. EXECUTING AGENCY : Ministry of Agriculture, MECHANISATION AND IRRIGATION
DEVELOPMENT
No. 1 Borrowdale Road
P Bag 7701
Causeway Harare
10. DESCRIPTION
The activities of the project will involve (a) Development of irrigation Infrastructure which comprises
(i)preparation of a detailed feasibility study (design, BOQ, socio-economic analysis and implementation
plans of the civil works and its supervision , construction of water diversion structure at the Zhovhe dam
site, a 28 km long concrete lined canal to convey water both communal and commercial farmers to
irrigate about 2,520 ha of land, 21 km of secondary canals to irrigate 1,170 ha of land for the communal
farmers and provision of drainage were required); (ii) infield development which would constitute
provision of a sprinkler irrigation system for 500 ha and surface / basin irrigation works for another 500
ha, and installation of 10 sand abstraction pumping units for the provision of water to irrigate 170 ha of
land for the communal farmers who cannot be served by the canal; (b) Agricultural Development which
comprises of provision of credit, extension services and training to the beneficiaries and (c) provision of
the Project Management and personnel and equipment.
11. TOTAL COSTS : US$25 million
12. ESTIMATED STARTING DATE OF PROJECT AND DURATION : July 2013 for 3 Years
PROCUREMENT : project goods, works and services will be procured according to International
standards rules and procedures. Construction of main canal and secondary
canals and infield development will be procured through International
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Competitive Bidding (ICB), while construction of produce collection sheds will be
through NCB. Agricultural inputs, vehicles and motorcycles, office equipment
supplies will be procured through National Shopping. Consultancy services will
be procured through limited completion using short list.
13. CONSULTANCY SERVICES REQUIRED AND STAGE OF SELECTION :Project managers, designers and
other key experts will be required.
SUMMARY, CONCLUSION AND RECOMMENDATIONS
1. PROJECT PROMOTER : GOZ
2.
3. EXECUTING AGENCY : Ministry of Agriculture, Mechanisation and Irrigation
Development
4. PROJECT COST : US$25 Million
5.
POSSIBLE FINANCE TERMS
i. Interest rate : To be negotiated with Financiers
ii. Duration : 20 years including a grace period of 4 yrs
iii. Repayments : Semi –annual installments beginning 5th year after loan
Signature
6. PURPOSE OF THE FUNDING REQUIREMENT
The funds amounting to US$25 million would be used to finance the entire cost associated with
the construction of the canal, infield development, credit, office equipment, supplies and
furniture, farm inputs, training and technical assistance. The funding would also finance both
operating and maintenance cost under the agricultural development and project management
and component of the operation and maintenance of the canals and infield development.
7. THE PROJECT
a) Objective: The project will contribute to the Government sector goal to raise the
productivity and incomes of smallholder agriculture which is the major vehicle to eradicating
poverty, hunger, malnutrition and unemployment. The project’s specific objective is to
contribute to household food security for the communal farmers of the Mtetengwe and
Masera communal lands and raise their household incomes.
b) Description: The activities of the project will involve (a) Department of Irrigation
Development which comprises (i) preparation of detailed and implementation plans for the
civil works and its supervision, construction of a water diversion structure at the Zhovhe
dam site, a 28 km concrete lined canal to convey water both communal and commercial
farmers to irrigate ABOUT 2,520 ha of land, 21 km secondary canals to irrigate about 1,170
ha of land for the communal farmers and provision of drainage where required. (ii) infield
development which would constitute provision of a sprinkler irrigation system for 500 ha
surface/ basin irrigation works for another 500 ha and installation OF 19 SAND
ABSTRACTION PUMPING UNITS FOR THE PROVISION OF WATER TO IRRIGATE 170 ha of land
for the communal farmers who cannot be served by the services and training to
beneficiaries, and (c) provision of the project management and personnel equipment.
8. PROJECT COST
The total cost of the project is estimated at US$25 million including contingencies. A summary
position is shown in table below:-
Summary Activities
Component
a) agricultural infrastructure
i) Design, socio-economic analysis and supervision
ii) Construction of water diversion and canal
iii) Infield development
b) Agricultural development
c) Project management
9. SOURCES OF FINANCE
The project would be financed by any willing organization in partnership with GOZ.
10. IMPLEMENTATION
The project will be implemented over a 3 year period with 2013 being PYI.
11. PROCUREMENT
Procurement of goods and services will be accordance with the international rules and
procedures for procurement of goods and services. Construction of the main and secondary
canals and infield development will be through International Competitiveness Bidding while
construction of produce collection sheds will be through NCB. Agricultural inputs, vehicles,
motorcycles, office equipment and supplies as well as farm inputs will be procured through
National Shopping. Consultancy services will be procured through limited competition using a
short list.
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12. CONCLUSION AND RECOMMENDATIONS
Conclusion :
The project is in line with the GOZ strategy of poverty reduction. Beitbridge District is very dry and
dry land cropping is almost impossible. Maize which is the staple food yields between only 90 kg to
800 kg per ha. The majority of the rural; population therefore relies on Government handouts for
their food requirements. The project will significantly reduce poverty and food insecurity in the area
which is occupied mainly by small holders. At full implementation about 7,899 tons of grain maize
will be produced enough to support more than 2,340 families. Irrigated farming will enable the
farmers to grow grain maize in summer and vegetables in winter. A total of 2,246 tons of sugar
beans, 439 tons of green maize, 2,633 tons of tomatoes, 2,048 tons of onions and 3,218 of
cabbages. In monetary terms the average net income per beneficiary family will increase to an
estimated US$1,005.00 which is substantially higher than the cut-off national poverty line of US$
221.33 and the rural poverty line of US$192.42 as defined in the poverty assessment survey
undertaken in the country in 2005. The commercial farmers who will participate in the Project will
mainly benefit from reduction of water loss from 40 % currently experienced from the utilisation of
sand abstraction method of irrigation to 2% as a result of the construction of the canal. This
amounts to US$1, 682,337 per year in monetary terms.
The harsh climatic conditions experienced in the district necessitate that most food consumed in the
area is brought from Bulawayo, 300 km away. As a result of the project, the amount of food brought
from outside the district will be reduced. The project will therefore directly ensure household food
security of the beneficiaries but it will also indirectly ensure food security position of a significant of
the district population who will be able to buy food from within. All the benefits will be realized with
positive environmental impact. It is therefore concluded that the project is technically sound,
economically and financially viable and socially desirable.
ZIMBABWE
ZHOVHE SMALL-SCALE IRRIGATION PROJECT (ZSIP)
Project Matrix
NARATIVE SUMMARRY (NS) OBJECTIVELY VERIFIABLE INDICATORS (OVI)
MEANS OF VERIFICATION
(MOV)
IMPORTANT ASSUMPTIONS
1
Sectoral Goal To contribute to GDP growth and poverty reduction
1.1 Agricultural sector contribution to GDP increases by at least US$ 2.73 million by the year 2005
1.1.1
Information from projects monitoring and data from Central Statistics Office Report
1 Economic reforms which encourage investment in the agricultural sector continue
1
Purpose To contribute to house hold food security for the target communal farmers and raise
1.1
Diversion structure from Zhovhe dam. Main and secondary canals as well as infield irrigation infrastructure in operation by the
1.1.1
Reports from the project management
1
The required amount of water to irrigate 1.170 ha by smallholder farmers
their household income 1.2
year 2002 …Year… Tons $ 1998 2005 Grain Maize 0 8775 Sugar Beans 0 2245 Green Beans 0 439 Tomatoes 0 2633 Onions 0 2048 Cabbage 0 3218 Average farm gross margin increased by US$1.027 by the year 2005
1.2.1
Farm budget records from the Project Monitoring and E valuation
2 3 4 5
allocated Farmers are willing to adopt new crop production technology Allocation of irrigation plots to farmers is timely Crop prices in the domestic and the world market remain stable Dependable rainfall pattern
1 2 3
Outputs Irrigation infrastructure put into place Agriculture improved Effective project management in place
1.1 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.6
Detailed design and implementation plan documents A water diversion structure 28km of main canal 21km of secondary canal Sprinkler irrigation system on 500ha Surface irrigation system on 500ha 10 sand abstraction units and pumps All these operational by November 2002 Extension officers trained Extension field assistants trained Farmers trained Credit provided IMCs established Extension services provided Necessary vehicles and equipment Project manager appointed Vehicles and other equipment
1.1.1 2.1.1 5.1.1 5.1.2
Quarterly Progress Reports and Bank Supervision Quarterly Progress Reports and Bank Supervision Quarterly Progress Reports and Bank Supervision Communication with the government
1 2
Government staff expected to be involved in the project remains in place Experienced contractors available
1 2
Activities Develop irrigation infrastructure
Develop detailed design and implantation plan
Construct water diversion
Construct main canal
Construct secondary canal
Install sprinkler irrigation system
Install surface irrigation system
Install sand abstraction
Undertake agricultural development
Provide credit
Project Budget (In UA)
Detailed design and implementation plans Water diversion & canals 6.96 Infield development 3.09 Agriculture development 2.30 Project Management 0.30 Total 12.99
Project management progress reports
1 2 3 4
Contractors recruited in time Project implemented and designs All equipment inputs and supplies procured in time and within budget Qualified staff to implement the project available
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3
Provide extension services and provide vehicles and equipment
Provide training, training material and vehicles
Put in place project management and provide vehicles and equipment
1. INTRODUCTION
1.1.1 Origin and History of the Project
1.1.2 The republic of Zimbabwe is a landlocked country with a total area of 390,759 km. It is located in
the Southern part of African continent and shares boarders with Mozambique in the North East,
and South East, Zambia in the Northwest, Botswana in the South west and South Africa in the
South. Geographically the country lies entirely within the tropics, but most of the Highveld and
the Eastern Highlands experience sub-tropical to temperature climate as a result of modifying
effects of altitude.
1.1.3 The population of Zimbabwe is estimated at 12.6 million. It is characterized by a high growth
rate of 3.15% per annum. Women constitute 51% of the population and men 49%. The
projection shows that, by the year 2000, the population would increase to 15.2 million out of
which 73% will be located in the rural areas.
1.1.4 The main resource base of Zimbabwe is agriculture which plays a key role in the Zimbabwean
economy. Almost the whole country has good soils. !about 90% of total land and is therefore
considered suitable for agricultural production. However about 65% of the country receive less
than 65 mm of rain which is unreliable and is subject to frequent droughts and dry spells. The
rainfall is therefore too low and uncertain for crop production. The country’s internal
renewable water resources have been estimated at 12.26 km3/year, of which 11.26 km3 are
surface water resources, and 6.00 km3 are groundwater resources. The overlap between surface
water and groundwater resources has been estimated to be 5.00 km3 The country has potential
to harness these water resources for agricultural development to counter the effects of drought.
1.1.5 With assistance of the donor community, the Government has constructed development, and
most of these dams remain underutilized. In April 1998, the Bank launched 26 dams for
irrigation. The construction of dams did not go hand in hand with agricultural an identification
mission to the country, during which the need to fund development of agricultural to utilize
these dams was identified. The project proposal for utilization of Zhovhe dam was found at an
advanced stage to enable preparation of the project design. In addition due to the state of food
availability in the proposed area (about 80% of the population depend on food relieves), the
project ranks high in the country’s development priority.
1.1.6 Following a GOZ invitation the ADB Bank mounted a field mission from June 1 to June 18, 1985
to prepare the project. The preparation report established that the project is viable and is a
Government priority. The Bank therefore undertook an appraisal of the project from July 27 to
August 9, 1998 and appraisal missions of July / August 1998. The bank had pledged to fund the
project but backtracked when the country started to experience macroeconomic instability.
2 THE AGRICULTURAL SECTOR
2.1 Salient Features
2.1.1 The agricultural sector currently contributes about 17% to the GDP from 40% prior to 2000. It
dominates the national economy through its impact on employment linkages with the
manufacturing industry and contribution to its expert earnings. About 70% of the population
depends on farming for its livelihood and the sector offers employment to 25% of the labour
force. Agriculture is a major source of raw materials for the manufacturing industry. It is also a
major foreign exchange earner through exports of tobacco and cotton. Other agricultural export
commodities include beef, maize, sugar and horticultural crops.
2.1.2 Zimbabwe produces a wide variety of food and cash crops. Food crops include maize, wheat,
sorghum, sugar beans and vegetables while cash crops are comprised of tobacco, cotton, coffee,
tea and sunflower. More recently, horticultural products such as flowers, fruits and vegetables
have made significant contributions to the country’s export earnings. Between 1992 and 1996,
horticultural exports increased in value from US$39 million to US41.03 million.
2.1.3 Majority of Smallholders occupy marginal where rainfall is below 600mm per year. They
therefore depend on extensive livestock production for livelihood. As such the smallholders
raise 68.2% of the national cattle herd, 98.8% of goats, 84.5% of sheep and 59.6% of pigs.
2.1.4 Structure : The agricultural sector is distinctly divided into estates, commercial farm enterprises
and smallholder farms. The principal commercial products are tobacco, beef and maize,
followed by cotton, sugar, soya beans, tea and coffee.
2.1.5 Smallholder farmers, in general, occupy land that is communal or resettled. Most of smallholder
land is situated in marginal areas and therefore is less suitable for intensive agricultural
development. Smallholders mostly concentrate on subsistence farming under which they grow
maize which is the staple food, millets and sorghum. To a small degree they are also involved in
the production of cash crops such as tobacco and cotton.
2.2 Constraints to Agricultural Development
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2.2.1 Zimbabwe’s agriculture experiences serious development constraints, the most important being
recurrent drought. Other constraints include the weak institutional, land reform transitional
challenges and infrastructural support. Unfavorable fiscal policies and declining soil fertility. The
scope of research and extension activities has improved, but access to information by
smallholder sector needs to be improved. The inadequate provision of support service such as
credit, marketing and extension, not only constrain production, but also contribute to soil
degradation and low yields. Investment in physical and social infrastructure has been slow and
the smallholder agriculture areas still require major investments in irrigation, soil amenities such
as schools and health centre, feeder roads and water supply in order to improve their
agricultural productivity.
2.3 Performance of the sector
2.3.1 The contribution of the agriculture sector to the total GDP is depended on rainfall availability
and distribution. In 1991 the sector grew by 3.15% but decline sharply to 24.4 5% in 1992 as a
result of severe drought experienced that year. In 1993 the sector achieved a record growth due
to good rains and hence high maize and tobacco production. However in the subsequent year
the trend was reversed due to recurrence of drought, leading to 12% decline in output in 1995.
The sector recovered again in 1996 and high growth of 41.1% was recorded but however
lowered to less than 17% in 2000 before starting to gain in 2009.
2.3.2 In addition to rainfall the sector is also affected by lack of incentives to invest in the sector and
inadequate institutional support. Low levels of funding of agricultural services, and hence
inadequate research and extension services, and inadequate agricultural credit to a small holder
farmers, result in low productivity by the majority of the rural population.
2.4 Agricultural Institution
2.4.1 The Ministry of Agriculture, Mechanization and Irrigation Development (MAMID) is the main
institution responsible for the development of agriculture in Zimbabwe. Its responsibility is to
promote and sustain a viable agriculture sector based on the development and implementation
of sound agricultural policies which optimize productivity through provision of appropriate
technical, administrative and advisory services. It also provides support services for agricultural
production.
2.4.2 Within the Ministry of Agriculture are four main parastatals namely; AMA, GMB, ARDA and
AGRIBANK which compliment the Ministry in implementation of Government funded projects,
planning and implementation of resettlement schemes and maintenance of farms purchased for
resettlement programs. AGRIBANK is the main source of credit for agricultural sector in the
country. Other parastatal include the main Agricultural Research Council, Tobacco Research
Board and the Pig Industry Board.
2.4.3 The Ministry of Water formulates policies for the utilization of Zimbabwe water for irrigated
agriculture and other purposes. Other institution includes COTTCO, DIARIBORD and CSC. These
are the former marketing parastatals. While the first two have been privatised, GMB has been
commercialised so that while it is still wholly Government owned it operates as a private
holding.
2.5 Government Policies in the Agricultural Sector
2.5.1 The ESAP was launched in 1991 and comprised of fiscal policy reforms including civil service and
parastatal reforms, monetary policy reforms, deregulation of domestic economy including
pricing, marketing and distribution, investment procedures and employment and sectorial
reforms in order to increase enhanced output and efficiency. The aim of the reform was to
attain overall growth stability and high level of social welfare.
2.5.2 The implementation of ESAP which was completed in 1995 largely achieved its objectives. All
pricing and agricultural commodity marketing and distribution controls and subsidies removed.
The main Government still in place is the exportation and importation of maize which is
considered a strategic crop and therefore its external trading is controlled by GMB. All the
Agricultural marketing boards were privatised except for GMB (see 2.3.4). GMB although fully
commercialised still handle the grain strategic reserve on behalf of the Government.
2.5.3 The main objective of the reforms in the agriculture sector were to eliminate losses and hence
need for the subsidies. In addition the macro-economic aspects of ESAP favoured exports and
economic growth and land emphasis on market forces and the private sector, reducing market
controls and restrictions on farmers and traders. All these have improved incentives for farmers
thus stimulating production, marketing and exports.
2.5.4 The Government of Zimbabwe launched a new agriculture policy and strategy, the Agriculture
Policy Framework (1995-2020) in May 1996. This policy framework has laid the future
development policies for agricultural sector. On other rears emphasis is on future marketing and
trade policy, which would address food security, industrial use, promotion of regional and
international trade. As regard food self-efficiency, the policy would be targeted towards
expansion on the maize and wheat production which are considered food security crops. At the
same time momentum of horticultural sector which took the early 1990s will be maintained
with special attention being given to smallholder participation.
2.5.5 In April 1998 the GoZ launched Zimbabwe programs for Economic and Social Transformation
1996-2000 (ZIMPREST) which is a second phase in change in areas such as access to and use of
water for agricultural purposes, controls to access to land for agricultural, commercial and
industrial purposes will be implemented. Under ZIMPREST, emphasis will be on smallholder
development, oriented to increasing agricultural productivity and production of high value
crops. Access to the small holder information, technology, finance and infrastructure is to be
17 | P a g e
facilitated. It is expected that this will encourage such farmers to switch from subsistence to a
balanced mix, which include commercial oriented production.
2.5.6 In 2011 the government launched the Medium Term Plan (MTP), which focused mainly on
restoring productivity in the agricultural sector through irrigation development.
2.6 Land tenure and Land use
The land acquisition act that followed the land reform program saw all land being state land. Zimbabwe
currently has four distinct land tenure systems (i) communal (ii) A1 (iii) A2 and (iv) estates.
2.7 Credit Systems in the sector
2.7.1 Zimbabwe’s agricultural credit intermediaries can be classified into three groups(i) formal
banking system, comprising of commercial and merchant banks which provide agricultural
credit, mostly to commercial farming sub sectors, (ii) the state-owned development financial
institutions- AGRIBANK, the Small Enterprise Development Corporation (SEDCO) and the
Infrastructural Development Bank of Zimbabwe (iii) the Micro-Finance Institutions (MFIs).
2.7.2 The MFIs includes diverse groups as small investment houses, NGO and ago-business companies
who provide credit in physical goods (credit in-kind). These includes COTTCO, SEDCO.
Agricultural cooperatives, on-governmental organisation and informal institution also mobilise
funds principally for collectively self-financing of rural production ventures to improve the
standard of living of the rural population.
2.7.3 The bulk of agricultural credit is mostly provided to the commercial agricultural sub-sector while
small-holder sub-sector attracts only a small percentage. Smallholder farmers are unable to
attract adequate credit because (i) most of the formal and informal credit providers narrowly
focus on the country main urban and sub-urban centres and generally lack the capacity outreach
to the remote communal lands (ii) majority reside in communal areas where land ownership
arrangements do not provide collateral required for commercial lending.
2.7.4 Service charges by the financial sector including interest rates have been deregulated, and
therefore the lending rates are determined on the basis of marginal cost.
3. IRRIGATION SUB-SECTOR
3.1 Irrigation Sub-Sector Analysis
3.1.1 The irrigated agriculture is currently a major contributor to the agricultural GDP. Crops grown
under irrigation constitute nearly half of the total value of all crops sold in the country, although
the irrigated area comprises less than 10% of the total cropped area.
3.1.2 Irrigation farming began in 1859 with small-scale schemes built by missionaries. Commercial
irrigation started in 1910. Since then, irrigation expanded steadily in general, expects for the
period where severe droughts have been encountered. The total area being irrigated is currently
estimated at 135,000 ha from 200,000 ha prior to 2000.
3.1.3 Five basic farming categories are involved in irrigated agriculture (i) large scale commercial
farming, including the privately owned sugar estates. They produce for the national and
international market, and are generally larger than 100ha each (II) Parastatal Estates which
belong to the agricultural and Rural Development Authority (ARDA).The estates are situated on
schemes established in the communal lands. Or on ex-commercial farms which have been
purchased by the government for operation by ARDA (iii) A2 settler farming which average 100
ha - 500 ha (IV) Smallholder area farming which is often semi subsistence farming on plots not
exceeding 2ha in irrigation schemes developed by the government on communal land or ex-
commercial farms. The irrigation schemes in this category are usually less than 100 ha (V)
Informal or traditional irrigation which comprises schemes developed spontaneously by
individuals or groups of individual.
3.1.4 The main implementing agencies for irrigation development outside the commercial sector are
the Department of Irrigation, ARDA, AGRITEX, and NGOs. Overhead sprinkler systems are being
locally manufactured to international standards and are widely used by farmers from all
categories. Gravity irrigation (mainly furrow) is found in the low veld utilizing irrigation water
from regulated river flows and storage dams.
3.1.5 The Zhovhe dam built in 1996 lies in the Jopempi Block in the commercial area along
Umzingwani River in Beitbridge District. It is one of the 12 dams mentioned in paragraph 1.1.4.It
was built to supply irrigation water to commercial, communal and resettlement areas. The dam
has a full capacity of 133 million cubic meters of which 42 million cubic meters in the 10% safe
yield. Of this amount10 million cubic meters has been ear-marked for the smallholder irrigation
sector 18 million cubic meters remain for the commercial farmers, 2.5 million cubic meters for
the Beitbridge District and 12.5 million cubic meters remain un-committed. Commercial farmers
are currently irrigating about 1,350 ha using water in the Zhovhe dam. However the irrigation
scheme for the smallholder to utilize its share of water has not been developed, and therefore
the Zhovhe dam is not being fully utilized. The proposed project is therefore designed to enable
the smallholder farmers utilize the water in the Zhovhe dam, while allowing the commercial
farmers maintain their current level agricultural activities.
3.1.6 The 10 million cubic meters of water per year currently (see 3.1.5) reserved for the smallholder
all the irrigable land available to the smallholder farmers (1,170 ha) a total of 18 million cubic
meters will be required per year. The Government has assured the Bank that required amount
of water will be allocated to the smallholder. This will be a loan condition.
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3.2 Project Area
3.3.1 Geographic Coverage: The proposed project will be located in Beitbridge District situated in the
south-eastern corner of Matabeleland South Province bordering South Africa in the south,
Botswana in the west. Gwanda District in the northwest and Masvingo Province in the North and
east.
3.3.2 Climate: Temperatures are normally above 20oC. In winter the mean daily maximum is 24.4oC,
while in summer it goes as high as 33.5oC .The rainfall in Beitbridge is highly variable but is
generally below 400mm/year. About 90% of total rainfall is associated with thunderstorms,
producing rainfalls of short duration and high density. The rainfall in general is less than half of
the potential evaporation.
3.3.3 Topography, and Soils: The landscape of Beitbridge district is slightly undulating with isolated
hills and intersected by numerous streams and rivers. The altitude ranges from 480 (along the
banks of Mzingwane River) to 540 masl further east. Soils are generally sandy loam to clay loam,
relatively fertile but shallow. Alluvial soils, along the riverbeds are sandy loam, have a depth up
to 40 cm and are considered more fertile.
3.3.4 Vegetation: The area is characterized as shrub savanna that consists of bushes and annual
grasses. The annual grasses disappear during the dry season. The major grass associations
include, Eragrotis and Cenchrus species. The bush vegetation includes various Acacia species
.Colophosperm Mopani and Termanalia, Salvadora angustifolia and Maerua parvifolia.
3.3.5 Water resources :The main rivers in the District are the Limpopo, the Shashe and the
Umzingwani. The Limpopo generally carries water throughout the year; the other two rivers are
dry for a great part of the year. All rivers at all times have some underflow. The flow under the
river beds can be used throughout the year through various water abstraction techniques. In
parts of the districts without rivers, people depend for water on boreholes (domestic and
livestock) and on earth-filled masonry and dams. A recent inventory of dams in the District
counted 55 dams in the communal areas, ranging from the Zhovhe dam constructed in 1996 in
the Umzingwani River to the various small and partly silted dams in streams in the rural areas.
The lack of water forms a major problem in the project area. Although data are not available
there are indications of dropping ground water levels, wells in the communal lands dry up and
yield of boreholes are decreasing. Also the underflow of the river has reduced.
3.3 Project Beneficiaries
3.3.1 A total of 2,340 smallholder famers occupying about 1,170 ha or 0.5 ha per farmer are expected
to benefit from the project. They constitute mainly subsistence farmers who are catergorised
into two groups. One group comprises those farmers who do not own cattle and constitute 50
to 60% of the target group. They are considered very poor and unproductive in dryland
agriculture development due to the harsh conditions. Maize which is a staple food, yields about
90kg /ha. This group therefore rely more on range of meager non-agriculture income
opportunities beer brewing, knitting, crafts making, casual labour, trading small stock but above
all on government handouts. The second group comprises of subsistence farmers who own
cattle. They constitute 10 to 15% of those who own more than 10 anima and are therefore large
cattle herd owners and 30% to 35% of the farmers who own less than 10 animals. However
most of the farmers cannot rely on agriculture to meet their household needs and seek
additional income from off-farm activities most often as farm laborers. About 45% of the
farmers in this area are women heads of households. For the category 5 ha per beneficiary in
the irrigation scheme is recommended.
3.3.2 There are about five commercial farmers located in the project area who may benefit from the
construction of the irrigation canal. Currently these are farmers are using the Zhovhe dam for
irrigated agriculture. They will benefit from the project only through the utilization of the main
canal that will be constructed passing their estates and these can be given large area. ARDA can
also be involved and allocated part of the project.
3.4 Environment
3.4.1 There are four ecological and physiographic regions in Zimbabwe Eastern Highlands high veld,
middle veld and low veld. The project area lies in the lowveld which is characterized with annual
rain intensity of less than 500 mm (mainly from November to March) temperature range of 22-
30oc and elevations less than 900 meter above mean sea level.
3.4.2 The project area though not environmentally sensitive is rich in flora and fauna. Herds of giraffe,
zebra, wildebeest, impala, kudu and others are common in the area. Various spices of birds exist
in both the communal and commercial lands, and the Zhovhe dam reservoir. The region is
characterized with loose cover of shrubs and trees of different sizes including Baobab trees.
3.4.3 Environmental awareness is generally high and a number of legislative acts deal with the need
to protect the resource base. Zimbabwe has a National Conservation Strategy, was adopted in
1987. The Ministry of Environment and Tourism has the responsibility of implementing the
Environmental Impact Assessment Policy for development project, which are likely to have
significant environmental consequences. Other legislative acts of relevance are Fertiliser, Farm
and Remedies Act and the Pesticides Regulation Act.
3.5 Gender Issues
3.5.1 The population in the project area is rather skewed with constituting 60 %of the population and
men 40%. Nevertheless due to male migration in search of paid labour in South Africa and
Zimbabwe large cities women constitute about 70% of the actual population living in the project
area. In addition 45% of the total households are female headed. Thus the engagement of
women farmers in the project would be essential for food security.
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3.5.2 There is no clear-out division of labour between men and women in agriculture. Traditionally
men predominated in land preparation, ploughing and pest control, women primarily engaged
in watering, planting, weeding, harvesting and marketing. However due to the large number of
women leaving alone, both men and women participate in all regular agricultural tasks. In
decision-making males dominate in the male headed households while women in the female
headed households make all decisions including farm management decisions.
3.5.3 Traditionally women have been denied access to land due to cultural beliefs that only man can
own land. However in the past 10 years this has changed. Several policies have been introduced
to enhance the legal status of women. The most important is the legislation which has made it
possible for married women to acquire immovable property, including land, without having to
obtain consent from their husbands. This has therefore enabled women to own land on their
rights.
3.6 Donor co-ordination
3.6.1 Prior to 2000 as a first step towards a consolidated effort for donor co-ordination in the
agricultural sector, the Government initiated, in 1996 the Agricultural Services and Management
Program (ASMP). ASMP entails strengthening of the agricultural institutions which would
implement the proposed Agricultural Sector Investment Program (ASIP0 Under ASIP sub
programs were expected to be implemented as follows(1) crops and livestock production (ii)
small holder irrigation development(iii) farmer credit and input supply(iv) agricultural education
and farmer training As such IFA and DANIDA had already formulated a project, the smallholder
Irrigation Support and upgrading of existing irrigation schemes and strengthening of Institutional
and policy Framework.
3.6.2 The proposed Zhovhe small scale irrigation project was discussed with representatives of donor
community resident in Zimbabwe including FAO, The World Bank, UNDP, IFAD, THE EC, and
some bilateral agencies such as DANIDA .The project met the donor’s approval as it was found
to be within the framework of ASIP.
4 THE PROJECT
4.1 Project Objective
The project will contribute to the Government sector goal to raise the productivity and incomes of
smallholder agriculture which is the major vehicle to eradicating poverty, hunger, malnutrition and
unemployment. The project, s specification objectives is to contribute to household food security for the
communal farmers of the Mtetengwe and Masera communal lands and raise their household incomes.
4.2 Description of Project Outputs
4.2.1 The projects output include a water diversion structure at the Zhovhe Dam a 28km long
concrete lined canal, 21km of secondary canals, sprinkler irrigation system to irrigate an area of
500ha surface \basin irrigation works to irrigate and additional 500ha and 10 sand abstraction
units to irrigate 170 ha.
4.2.2 Under Agricultural development ,the outputs will comprise of at least 900 persons \days of staff
training at least 5,280 persons \day of farmer training including familiarization tours an irrigation
scheme covering 1,170 ha of communal farmers established with at least 12 irrigation
management committees (IMC) and a demonstration plot per IMC. At full production,
communal farmers will produce annually 8,775tons of maize, 2,246 tons, beans 439tons of
green maize, 2,633 tons of tomato, 2,048 tons of onions and 3,218 tons of cabbages.
4.2.3 Credit to about 60% of the smallholder beneficiaries or 1.404 farmers to procure farm
implements such as animal driven plough and harrows, knapsack sprayers, draught power and
agricultural inputs seed, fertilizer and pesticides.
4.3 Detailed Description of Activities and Components
4.3.1 The project is envisaged to have 3 major components (A) Development of Irrigation
Infrastructure (B) Agricultural Development and (c) Project management
A. Development of Irrigation infrastructure
4.3.2 The activities of this component will mainly be physical works which will involve (i) preparation
of detailed designs and implementation plan and supervision of the civil works (ii) construction
of water diversion structure at the Zhovhe Dam site a 28 km long concrete lined canal to deliver
water to irrigate about 2,350 ha of land on the bank of the river, which comprises both
communal and commercial farmers, 21 km of secondary canals to provide water to irrigate
1,000 ha which will be cultivated by the communal farmers (iii) infield works which will
constitute land clearing and leveling, provision of sprinkler irrigation system for 500 ha of the
land to be developed. surface basin irrigation work for the remaining 500 ha and installation of
10 sand abstraction pumping units to provide irrigation water about 170 ha for communal
farmers in the Southern part of the project area where feasible. The project will provide
infrastructure to convey water to the commercial farmers up to the field edge through the
construction of the canal. The commercial farmers will be expected to finance and undertake
the infield development of their which constitute the remaining 1,350 ha. Crossing for the
wildlife will be in place along the canal.
4.3.3 The Department of Irrigation will prepare the detailed and the implementation plan for the
project. The department has the capacity to prepare the implementation plans as far as the in-
field irrigation works, soil survey social aspects and the identification of participating farmers are
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concerned and supervise the related civil works. The department will also prepare the detailed
designs of the water abstraction units, conveyance systems and eventually the construction
supervision of the same.
B Agricultural Development
4.3.4 Agricultural Development will involve support to smallholder farmers to enable them produce
both and green maize, sugar beans tomatoes, onions and cabbages under irrigated farming. The
component will comprise of three sub-components (i) Smallholder Credit (ii) Support to
Extension Services and (iii)Training The project will provide funds also for the construction of a
production collection centre one per IMC to assist farmers in the storage and marketing of
produce.
(i) Smallholder Credit
4.3.5 Most participating farmers have no source of income and will require assistance at the
beginning of the project in order to develop their irrigation plots. Funds will be required provide
farmers with seasonal inputs and farm implements. Short-term credit will be required for the
purpose of seed, fertilizer and chemicals. Medium term credit will be required to allow the
purchase of ploughs and harrows for land preparation and knack sack sprayer for pest and
disease control.
(ii) Extension Services
4.3.6 4.3.7 Extension support will focus on training the farming the farmers in group formation and
management water use management and crop production and marketing. The training will aim
to facilitate the adaption of irrigation agriculture to enable the IMC to become small agricultural
business enterprises.
4.3.7 Demonstration plots will be used to test crops under irrigation conditions. Farmers will be
demonstrated the benefits of Integrated Production and Pest Management (IPPM) techniques
and land husbandry methods to conserve moisture and reduce soil erosion. With regards to
IPPM, the project will collaborate with the FAO supported Integrated Pest Management Project.
One demonstration plot will be established per farmer group. The demonstration plots will be
used as training ground for other farmers within and outside the IMC. Exchange visits and field
tours will be organized.
(iii) Training
4.3.8 The project beneficiaries have been involved in livestock and some limited rain fed farming.
Irrigated farming will therefore be a new technology both to the smallholder farmers and most
of the front line extension staff operating in the area. Training will be an important activity.
Funds will be provided for in service training of the field extension staff in water use
management, crop husbandry practices (including IPPM), and marketing.
C. Project Management
4.3.9 To ensure efficient performance funds will be provided for type 4x4 vehicles. One computer and
printer, a photocopier, a fax machine and funds for office administration and field supervision.
The project will also provide a team of experts to do the project management.
4.4 Project Assumptions Risks
4.4.1 Important assumptions made and risks envisaged under the sector goal include: Government
failure to complete liberalization of the sector which started under ESAP may hinder full
achievements of the expected incentives which would encourage smallholders to invest in
agricultural development. It is expected that the Governments economic reforms will complete
the process in the sector and thus provide the required incentives.
4.4.2 Important assumption made and risks envisaged under the project objective include:
(i) Government failure to allocate at least 18 million cubic meters of water required to irrigate
1170 ha by small holders may reduce the scope and hence the benefits of the project. It has
therefore been assumed that GOZ allocate the required water for irrigation by small holder
immediately so that the uncommitted water is not allocated for other use.
(ii) Most of the project area inhabitants keep livestock and some of them may not readily adopt
crop production technologies. It is assumed that the intensive extension services will remove
such barriers. In addition the effect of persistent food shortage will encourage farmers to adopt
methods which will produce high returns.
(iii) Reduction in world prices may reduce the expected benefits. It is assumed that crop prices in
domestic and world prices will remain stable.
4.4.3 Important assumption made risks envisaged with regards to project outputs include: Persistent
drought may reduce available water in the dam for irrigation. This would reduce yields and
hence the expected benefits. It is assumed that dependable rainfall patterns will prevail.
4.5 Project Cost
The total cost of this project is estimated to be US$25 million. Physical contingencies have been applied
to the construction of canals at 20% and to all other costs at 5% except Technical Assistance and
Government staff salaries where no physical contingency apply.
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4.6 Environmental Impacts
4.6.1 Overall, there scale of the proposed scheme is not likely to have any major effects on the
environment. Training and capacity building will focus on wildlife utilization and environmental
management soil and water conservation techniques, crop diversification and improved crop
and land husbandry activities. The use of IPPM technique will limit the use of fertilizers and
pesticides.
4.6.2 Positive Impact: The positive impacts include reduced water losses by seepages, minimization of
random settlement intensification of production reduced soil erosion, improvement of self
sufficiency in stable food and improvements of the well being of smallholder families.
Continuous cultivation will provide enough vegetation cover that reduces the effect of intensive
rain during the wet season. This will consequently decrease soil erosion that usually occurs
under seasonal (rain fed) cultivation which leaves the land bare for most of the year. In addition,
the project will improve health conditions through improved nutrition.
4.6.3 Negative Impacts: There are no significant negative impacts expected to results. The risks from the misuse of fertilizers and pesticides will be minimized as the project will implement IPPM techniques. Risks of soil deterioration due to salinity and sodicity affecting soil suitability for agricultural production is present in most alluvial soils especially in the South. There may also be some risks of adverse impacts on wildlife due to corridors blockage and conflicts with farmers. In addition, disease ecology in the area could be negatively changed due to the project activities. The mitigation and monitoring of environmental issues are provided in Annex 3.
4.7 Impact on women
4.7.1 It is estimated that women constitute 70% of the population involved in agriculture activities in the project area. By targeting the small-scale producers therefore the project will directly impact on women. Women heads of households who will constitute 45% of the target group will be incorporated as irrigation plot holders as well as position holders in the IMCs. As such they will have a say in decision making in matters that affect the scheme and women activities in particular. The project will ensure that, women and in particular the female heads of households, are accorded equal right to acquire irrigation plots in their own right and receive all services including credit in their own rights.
4.8 Poverty Reduction
4.8.1 The Government of Zimbabwe commissioned a Poverty Assessment Study in 1995. The results of the study were that the country’s total population is poor to very poor, out of which 71% are in the rural areas, and 32% of those in the rural areas are in the communal areas. In the project area, 62% of the population is categorized as very poor to poor, 68% of which are in the rural areas. Of this 68%, 77% and 83% are in the communal lands and resettlement areas respectively.
4.8.2 The main cause of poverty has been identified as inequitable land distribution, which resulted in
congestion in the communal areas, set aside for indigenous population. These lands lie in the low rainfall regions IV and V with poor soils and low availability of water for irrigation. In addition, many people displaced during the war of liberation are landless with no means of livelihood.
4.8.3 The Government has recognized that the structural adjustments that it is undertaken should go hand in the hand with poverty sensitive macro-economic policies and development programs to tackle the problem of mounting poverty. The Zhovhe small-scale irrigation project is a part of these development programs. It will develop irrigation infrastructure to deliver water already collected in the Zhovhe dam for intensive agricultural production. It will provide water for production of food and cash crops by smallholder, including women farmers who constitute a major portion of the poverty stricken population. It will therefore have a sustainable impact on poverty reduction.
5. PROJECT IMPLEMENTATION
5.1 Executing Agency
5.1.1 The Executing Agency of the Zhovhe small-scale irrigation project will be the Ministry of Agriculture (MAMID), which will play the co-ordination role for the project implementation.
5.1.2 DOI, within the Ministry of Agriculture, Mechanisation and Irrigation Development is responsible for planning, designing, constructing and managing smallholder irrigation schemes, and providing extension services. It is therefore the Department that will be responsible for the implementation of the project. The Department is decentralized and is represented at Provincial and District levels. The Department of Water Development (DWD) is responsible for planning ware utilization. It also designs and supervises the construction of major water structures such as dams.
5.1.3 The administration of the credit funds will be through any agreed agency.
5.2 Organisation and Management
5.2.1 The implementation of the project will be through the existing Government institutions. As such, the Director of DOI will be responsible for the execution of the project. However, in order to ensure timely implementation of the project, the Director of DOI will delegate this responsibility to a team of senior staff and designate them Project Managers. The Project Managers will be answerable to the Director of DOI.
5.2.2 Consulting Services and Training: Procurement of consulting and training services will be done for the project.
5.2.3 National Procedures and Regulations: Zimbabwe`s national procurement laws and regulations have been reviewed and determined to be accepted
5.3 Implementation Plan and Expenditure Schedule
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5.3.1 The project will be implemented over a 3-year period from 2013 to 2016. The first of the
project, which will take 1 year, will include preparation of detailed design for the irrigation infrastructure development, including topographic surveys and socio-economic analysis. The second stage which will commence during the second year of the project will involve the construction of the water diversion structure from the Zhovhe dam, the main canal and the infield works including the installation of sprinklers and the surface water structures and the drainage system. This stage is expected to take one year during which the demarcation of the irrigation plots and their allocation to the farmers will be undertaken. It will be completed during the beginning of the fourth year of the project. The third stage will involve the agricultural development and will be implemented during the last one year of the project.
5.3.2 The selection of the smallholder subsistence farmers will be based on willingness to acquire irrigation plots, and capability to undertake irrigated agriculture. Invitations will be sent out through the Rural District Councils (RDC`s) and area councilors. A list of applicants will then be prepared and appraised for past performance by the project team, councilors, District administrator and AGRITEX staff. Those selected will be allocated plots, and then organised into Irrigation schemes. Since about 45% of the households in the project area are headed by women, 40% of the irrigation plots will be allocated to women. The other Part will be allocated to either ARDA, potential partners or leased to commercial entities.
6. TECHNICAL AND ECONOMIC JUSTIFICATIONS
6.1 Technical Justification
6.1.1 A dam was constructed in 1996 to provide irrigation water to both communal and
commercial farmers. While commercial farmers have been utilizing their share of water
through sand abstraction, communal farmers have not been able to utilize their share. The
construction of a canal for irrigated agriculture, from an existing dam will therefore be fully
justified. The proposed concrete lining of the canal will reduce the water loss through
seepage by about 38%, hence increasing the area to be cropped due to the additional
(saved) water. The canal option, if compared to the presently used sand abstraction system,
is further justified in that, once constructed, it will need minimal maintenance.
6.1.2 The project has opted to use overhead sprinkle irrigation method for shallow soils. It will
improve application efficiency, and minimize adverse effects of using fertilizers. Surface
irrigation method has been considered for areas with deep soils. This method is attractive
because of its comparatively low investment, replacement and maintenance cost.
6.1.3 The communal areas covered by the project are, if used at all, mainly used as dryland
ranches. There will be no resettlement of people. However, where displacement will take
place it will only be that of farmers who, voluntarily, will move closer to the nearest water
outlet for irrigation purposes. These farmers will be given the option to retain a piece of dry
land for rearing their cattle. The absence of displacement implies that the project will not
have to invest in social amenities such as schools, rural health clinics etc.
6.1.4 Crop selection is based on agro-ecological suitability and their response to supplemental
irrigation. The primary crop to be grown during summer is maize, and during winter, sugar
beans, and vegetables such as onions, tomatoes, cabbages and green maize. These crops
have all successfully been grown in the area and are readily marketable. Private traders are
present in the area to market surplus produce.
6.1.5 Irrigation Management Committees will see to it that irrigation schemes will operate
efficiently by taking care of the operation, repair and maintenance costs. The project will be
sustainable, as these committees will have to meet the full costs of running the project. The
establishment and capacity building of the IMC will be assured through a vigorous training
program provided by AGRITEX.
6.1.6 The Integrated Production and Pest Management strategy to be introduced by the project
has proven to be technically and economically viable and environmentally sound. The IPPM
strategy consist of a limited use of agro-chemicals by introducing economic thresholds, the
use of disease tolerant varieties and other appropriate crop husbandry practices, including
crop rotation and use of farm yard manure.
6.2 Project Benefits
6.2.1 At full development, the project will produce on communal land 8,775 tons of maize, 2,246
tons of sugar beans, 439 tons of green maize, and 7.899 tons of vegetables which will be
either locally consumed or sold to nearby markets. The commercial farmers who are
utilizing water from the Zhovhe dam are currently producing 50,400 tons of citrus, 945 tons
of cotton, 1,760 tons of wheat, 1,200tons of tomatoes and 25 tons of paprika. This
production level is possible by using their water allocation as well as a portion of water
reserved for communal farmers who have not been able to utilize their portion of water
allocation. With the construction of the canal, the commercial farmers will be able to
produce the same amount of crops as water loss, currently estimated at 40%, will be
reduced to 2%. Development of small holder irrigation scheme without a larger water
conveyance system to serve commercial farmers as well would have reduced the
commercial farming activity by 38%. The project will therefore significantly contribute
towards the Government`s objective of food self-sufficiency and poverty alleviation.
6.2.2 Maize is the staple food and it is estimated that almost the total production under the
project will be consumed by the beneficiaries, while about 60% of the beans and vegetables
that will be produced will also be consumed. These crops will therefore improve household
food security. The surplus produce will be sold in the domestic market. The district is very
dry and the level of food production is very low. All vegetables produced will therefore be
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absorbed in the local markets. There are local traders and canning companies who buy
beans and vegetables on the farms in the existing irrigation schemes in the district. The
project beneficiaries will make such marketing arrangements through their Irrigation
Management Committee. The feeder road work is adequate to provide accessibility to the
irrigation scheme.
6.2.3 The project will directly benefit 2,340 smallholder farm families. The introduction of
irrigation and two harvests per year will provide food security to these families or 14,000
individual average size of a household is 6 people). Farmers` disposable incomes will
therefore increase which will raise their purchasing power and thus their demand for
consumer goods. These will in turn attract entrepreneurs to open retail shops and establish
workshops thereby establishing rural growth centres. Such growth centres are important to
reduce rural – urban migration. The project would benefit a large group of women due to
the fact that approximately 70% of the area population is composed of women.
6.3 Financial and Economic Justification
6.3.1 Financial Justification:
6.3.2 The project`s financial rate of return is estimated at 28% from previous studies, under
conservative assessment is considered satisfactory. The project would be in a position to
provide comfortable margins that would cover its operation, repair and maintenance costs
as well as operating expenses.
6.3.3 Economic Justification:
6.3.4 An Economic Internal Rate of Return (EIRR) has been estimated in order to assess the
economic justification of the project. The infrastructure being put in place, the canal is
durable and is expected to last for about 35 years without major rehabilitation. The project
costs and benefits have therefore been projected over a period of 35 years. Replacement
costs have been added for the sprinkler system and the sand abstraction facilities. The
replacement costs for the sprinkler system amount to US$1,170,000 every ten years while
the replacement cost for the sand abstraction facilities amount to US$900,000 every fifteen
years. The benefits include incremental production by the small holders of grain maize in
summer and sugar beans, green maize, tomatoes, onions and cabbages in winter. The water
available in the dam would not allow commercial farmers to expand their cultivation under
the project as they would need to share with the small holders. However, commercial
farmers would gain through reduction of water loss.
6.3.5 The costs include the investment cost, operating costs of the project and incremental
variable crop production costs. At full development which is estimated to be the fifth year of
the project, the economic value of the benefits accruing to the project would amount to
US$2,729,858 per year.
6.3.6 The estimated EIRR is 15%. Sensitivity analysis has been done for various possible situations.
An assumption of ten percent increase in the investment costs of the project would reduce
the EIRR to 14%. A combined increase of 10% in investment and 10% in operating costs
would reduce EIRR to 13%. On the other hand, a 10% reduction in expected benefits would
reduce the EIRR to 12%, and a delay in project benefits by two years would have an effect of
reducing the EIRR to 10%. The sensitivity analysis therefore shows that the project is only
moderately sensitive to changes in costs but more to changes in benefits. Reduced benefits
are likely to result from crop failure due to droughts. This risk would be mitigated through
the proposed provision of irrigation water.
7. CONCLUSIONS AND RECOMMENDATIONS
7.1 Conclusions
7.1.1 The project is in line with GOZ Strategy of poverty reduction. Beitbridge district is very dry
and dryland cropping is almost impossible. Maize which is the staple food yields between
one and two bags per ha. The majority of the rural population therefore relies on
Government handout for their food requirements. The project will significantly reduce
poverty and food insecurity in the project area which is occupied mainly by small holders,
majority of who are women. Food crop production will be the first priority for he small
holders. At full implementation, about 7,605 tons of grain maize will be produced, enough
to feed about 14,000 individuals or 2,340 families. Irrigated farming will enable the farmers
to grow grain maize in summer and vegetables in winter. A total of 2,246 tons of sugar
beans, 439 tons of green maize, 2,633 tons of tomatoes, 2,048 tons of onion and 3,218 tons
of cabbages.
7.1.2 In monetary terms the average net income per beneficiary family will increase to an
estimated US$1,027.00. This is substantially higher than the cut- off national poverty line of
US$221.33 and the rural poverty line of US$500. The commercial farmers who will
participate in the project will mainly benefit from the reduction of water loss currently
experienced from the utilization of sand abstraction method of irrigation as a result of the
construction of the canal. This amounts to US$153,763 per year in monetary terms.
7.1.3 The harsh climatic conditions experienced in the district necessitate that most of the food
consumed in the area is brought in from Bulawayo, 300km away. The project will therefore
directly ensure household food security of the beneficiaries and indirectly improve food
security position of a significant portion of the district`s population. All these benefits will
be realised with positive environmental impact. It is therefore concluded that the project is
technically sound, economically and financially viable and socially desirable.
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7.2 Recommendations and Conditions
It is recommended that GOZ extensively seek a potential partner both financial and technical for the
implementation of the above project .
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Zhovhe Small Scale Irrigation Project
ENVIRONMENTAL SUMMARY
The project is classified as Category ii according to the ADB Environmental guidelines, as all the necessary mitigation measures will
be incorporated into the project design as follows:
Anticipated Environmental Impacts Mitigation measures
Change in river ecology due to flow blockage An existing downstream tributary (Mazowe river) is providing enough compensation to maintain same river ecology
Surface and ground water pollution due to improper use of pesticides and fertilizers
The use of pesticides and chemical fertilizers will be kept at the minimum, with the use of non residual pesticides and organic fertilizers(e.g manure and compost) recommended by the project.
Irrigation will provide dense land coverage (crop vegetation) all the year around. This in addition to conservation of natural trees will help reduce soil and sheet erosion. In addition, the use of organic fertilizers mentioned above will increase soil stability in the long term.
Risks of soil salinity (common in most alluvial soils)
Problems of salinity, water logging and ground water table rising will be avoided through the Best Management Practices(BMP, )introduced in the project. These mainly include design and implementation of a good drainage network, good on –farm water application (via leveling, water control, etc) and deep tillage when necessary.
Destruction of Ecology and Bio diversity: Fauna and Flora
This will be conserved through: 1. Environmental education of project beneficiaries 2. Prohibition of huge tree cuttings 3. Provision of canal crossings in conformance with the wildlife corridors
and migration routes. 4. Electrical fencing of main canal (by the project) to minimize destruction to both
project infrastructure, increased incomes through the project that will indirectly reduce pressure on local ecology and wildlife hunting for food.
Socio-economics The project does not involve displacement or (involuntary) ressettlment. On the other hand the project will result in higher incomes, improvement in the role of women and empowerment of producers, through their involvement in identification, design, and implementation and management of the project schemes.
Health risk of water borne diseases (e.g malaria and schistosomiasis) in the irrigation water
This will be minimized through proper canal design to avoid stagnant or slow moving water. Moreover , pests and weeds (as habitats for snails) should be reduced using biological methods where possible or the application of limited quantities of degradable pesticides. In all project areas, the Health Department would provide the necessary health services.
Projected Crop Production Summary
Crop Year1 Year 2 Year 3 Year 4 Year 5 Year6 Year 7 Year 8
Citrus 50,400 50,400 50,400 50,400 50,400 50,400 50,400 50,400
Cotton 945 945 945 945 945 945 945 945
Wheat 1,760 1,760 1,760 1,760 1,760 1,760 1,760 1,760
Tomatoes 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Paprika 25 25 25 25 25 25 25 25
ASSUMPTIONS MADE IN THE CALCULATION FOR EIRR (Economic)
1. The commercial farmers who are currently utilizing water from the Zhovhe dam to cultivate
1350 ha of irrigated land producing 50400 tons of citrus, 945 tons of cotton, 1760 tons of wheat,
1200 tons of tomatoes and 25 tons of paprika will not increase their hectrage. They will however
be able to produce the same amount of crops because the water loss currently estimated at
40% will be reduced to 2%. Development of smallholder irrigation scheme without a larger
water conveyance system to serve commercial farmers as well would have reduced the
commercial farming activity by 38%.
2. The amount of water loss reduced by 38% is a benefit to the project. Without the project water
for irrigation was released 40% more than the farmer’s requirement, which would be lost
through seepage. If this water was used for irrigation, farmers would pay the government this
water at a rate of $12 per mega liter.
3. Most of the crops to be produced by the smallholders, maize beans and vegetables will be
mainly for consumption by the producers taking into account that they have been experiencing
severe food shortages. However, some of these commodities especially maize and beans have
potential for external market. The analysis therefore uses local market prices for the vegetables
and green maize, while for maize and beans, price used was that quoted at the Zimbabwe
Commodity Exchange which involves internal traders and is therefore in line with parity prices.
4. The commercial farmers have been growing citrus, cotton, wheat, tomatoes and paprika which
they will continue to grow. Citrus, cotton and paprika are grown for export while tomatoes are
for domestic market. While wheat is grown for domestic consumption, a substantial volume is
imported. Parity prices were therefore used for citrus, cotton, wheat and paprika. Local market
prices were used foe tomatoes.