Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 5561-BD

STAFiF APPRAISAL REPORT

BANGLADESH

SHRIMP CULTURE PROJECT

November 27, 1985

South Asia Projects DepartmentGeneral Agriculture I Division

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

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ABBREVIATIONS AND ACRONYMS USED

ADB - Asian Development BankBARC - Bangladesh Agricultural Research CouncilBB - Bangladesh BankBFDC - Bangladesh Fisheries Development CorporationBKB - Bangladesh Krishi BankBRRI - Bangladesh Rice Research InstituteBWDB - Baugladesh Water Development BoardDAEK - Directorate of Agriculture Extension and ManagementDC - Deputy CommissionerDFTC - Demonstration Farm and Training CenterDOF - Department of FisheriesEE - Executive EngineerERR - Economic Rate of ReturnFAO - Food and Agriculture Organization of the United NationsFD - Fisheries DivisionFRR - Financial Rate of ReturnGDP - Gross Domestic ProductGOB - Government of BangladeshEYV - High Yielding VarietyICB - International Competitive BiddingLA&LR - Ministry of Land Administration and Land ReformLCB - Local Competitive BiddingM&E - Monitoring and Evaluation*'EU - Mobile Extension UnitNEC - National Economic CouncilOCC - Opportunity Cost of CapitalO&M - Operation and MaintenancePCI - Participating Credit Institution (BKB and Sonali Bank)PIU - Project Implementation UaitPP - Project ProformaPRTA - Project Related Technical AssistancePSA - Project Special Acco_ntPY - Project YearSCES - Shrimp Culture Extension ServiceSCF - Standard Conversion FactorSDR - Special Drawing RightSE - Superintending EngineerSMS - Subject Matter SpecialistSWIP - Salt Water Intake PermitTOR - Terms of ReferenceUNDP - United Nations Development ProgramUNO - Upazila Nirbahi Officer

FOR OMCIAL USE ONLY

GLOSSARY

Aquaculture - Cultivation of aquatic products on commercialbasis.

Aus - Rice planted during February/March and harvestedin June/July.

Black Tiger Shrimp - Penaeus monodon.

Culture-based Fisheries - Fisheries in which harvesting is concentrated onfish stocks which have been built up throughstocking of vater bodies with young fish. Thefishing grounds, biological productivity, fishstocks and fishing activities involved in thistype of fisheries are, to some extent, manageableand controllable.

District - Administrative unit headed by a DeputyCommissioner and comprising a number of subdivisions.

Division - Administrative unit headed by a Commissioner andcomprising a number of Districts.

Freshwater Shrimp - Macrobrachium rosenbertii.

Indian White Shrimp - Penseus indicus.

Inland Fisheries - Fisheries conducted in inland waters.

Juvenile Shrimp - Shrimp grown to post-larval stage.

Marine Sbrimp - Penseus species.

Monsoon - Period of rains starting in June and ending in October.

Parishad - Board constituted for specific assignments comprisingelected and Goverument-nominated members.

Polder - A tract of low land reclaimed from a body of water.

Shrimp Fry - Young shrimp at its post-larval stage.

Upazila - Upgraded thana as defined by Local Government(Thana Parishad and Thana Administration)Ordinance 1982.

Union - Unit of self-government at village level; thereare about ten unions in a thana.

This document has a restricted distribution and may be used by recipients only in the per.v-nance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authoriza:ion.

BANGLADESH

SHRIMP CULTURE PROJECT

Table of Contents

Page No.

I. INTRODUCTION ............................................ 1

II. SECTORAL CONTEXT ........................................ 1

- Introduction .**....... ......................... . 1- The Fisheries Subsector . ........ ............... ...... 2- Shrimp Culture Development ........................... 5- Institutions ......................................... 8- Bank Group Involvement in the Sector ................. 11

III. THE PROJECT ............................................. 12

- Project Objectives and Rationale ..................... 12- Project Area and Status of Engineering ............... 13- Project Components ................................... 15- Detiled Features ....................................... 16- Dsro se t Costs ........................................ 20I O inancing ................... ......................... 22- Procureuent ...................................................... 24- Disbursement ..................................................... 26

IV. ORGARIZATION AIM BbAEET............................................... 28

- Implementing Agencies ........ ....... ................. 28- Phasing of Implementation ............................ 30- Monitoring and Evaluation ..... ..... ...... .. .......... 33

V. PRODUCTION, MARKETrNG AND PRICES ... ..... .... .. .......... 35

- Production ....................................................... 35

- Marketing ....................................................... 36- Prices ..... .... ....................... 37

VI. BENEFITS AND JUSTIFICATION .......... .. ....... .... 38

- Benefits, Beneficiaries, and Employment ............ .. 38

- Farm Incomes and Financial Analysis .................. 39- Cost Recovery ...... .................. ................ 41- Economic Analysis .................................... 41- Environment Effects .................................. 42- Project Risks ........................................ 43

VII. ASSURANCES AND RECOMMENDATIONS ........... ............... 45

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ANNEXES

Annex 1 - Tables 1-7Summary Cost Tables

Annex 2 - Role of PCIs and the Shrimp Culture Extension Service inMaking Project Subloans

Annex 3 - Table 1: Economic Price of Black Tiger ShrimpTable 2: Economic Analysis (Streams)Table 3: Economic Analysis (ERR)

Annex 4 - Table 1: Financial Price of Black Tiger ShrimpTable 2: Financial Analysis (FRR)

Annex 5 - Table 1: Shrimp/Paddy Farm ModelTable 2: Shrimp/Salt Farm ModelTable 3: Shrimp Nonoculture Farm NodelTable 4: Hatchery Cash Flov

Annex 6 - Quarterly IDA Disbursements

Annex 7 - Selection Criteria for Additional Project AreasTable 1: Staffing Requirements for PIIJ and BWDBTable 2: Land Acquisition Procedures

Annex 8 - Selected Documents and Data Available in the Project File

CHARTS

World Bank 30129 - Overall Implementation ProgramWorld Bank 27229 - Organization of BWDBWorld Bank 27228 - Organization of DOFWorld Bank 27227 - Organization of PIUWorld Bank 26928 - Embankments for Main Shrimp Farming InfrastructureWorld Bank 26929 - Regulators for Main Water Supply and DrainageWorld Bank 26930 - Farm Improvements, Embankments and RegulatorsWorld Bank 26931 - Shrimp Hatchery for PIUWorld Bank 26932 - Demoastration Farm and Training Center for PIU

MAPS

IBID 18698IBRD 18699IBRD 18700RIBRD 18701IBID 18703

BANGLADESH

SHRIMP CULTURE PROJECT

I. INTRODUCTION

1.01 Upon the emergence of Bangladesh as an independent nation, the Bankundertook a series of major studies to identify policy options and pLandevelopment strategies. The Land and Water Resources Study of 1972 provided,inter alia, tentative proposals for accelerating development of the inlandfisheries subsector. Since then, the Bank along with bilateral and othermultilateral agencies, has been supporting the Government of Bangladesh (GOB)to develop its inland fisheries subsector in efforts to diversify theeconomy.

1.02 The Bank supported two inland fisheries projects in Bangladesh withthe principal objective of increasing yields by supporting: (i) fish seedproduction to support the expansion of fish far'ing and the rehabilitation ofinland fisheries resources, and (ii) management of inland fisheries anddevelopment of aquaculture. Projects were manageably scaled, involved rela-tively simple technologies and included extensive technical assistance.Important goals of Bank Group lending for the inland fisheries subsector wereto: (i) improve the ability of the Department of Fisheries (DOWF), to plan andimplement fisheries programs; (ii) assess and correct the adverse effects ofdrainage and flood control measures on fish resources; (iii) launch cul-ture-based fisheries technology; (iv) improve incomes of the rural poor; and(v) effect the transition of external aid projects into national developmentprograms.

1.03 Discussions between GOB and the Bank regarding assistance in thedevelopment of coastal aquaculture date back to 1979. A shrimp cultureproject was identified in 1981. A project preparation report was availablein May 1983, and a report on preliminary detailed design by a local consult-ant served as the basis for appraisal. The proposed shrimp culture projectwas appraised in October/November 1984 by a mission consisting of J. Duester,S. Mawly, W. Roider, 0. Sissoko, Y.A. Tang (Bank) and B. Meeke (consultant).The mission's findings are the basis for this report. Credit Negotiationswere held in November 1985.

II. SECTORAL CONTEXT

INTRODUCTION

2.01 Bangladesh, one of the poorest countries in the world, is facedwith serious long-term problems. Population density of 680 inhabitants persquare kilometer (km2) and a population growth rate of about 2.6Z per annumexacerbate problems of food supply and employment. With export earningscovering less than one-third of the country's import bill, the economy facescontinuing structural deficits and is heavily dependent on foreign aid. GOBpolicies emphasize measures to control population growth, increase foodproduction and improve nutrition and contain the external trade deficit.

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2.02 Bangladesh's agricultural sector, incLuding fisheries, contributesabout 50Z of GDP and provides about 75% of employment and exports. Rice isthe country's staple foodgrain and paddy covers 80% of the cropped area.Cropping intensity is about 140%. With the average farm holding being only1.4 ha in a context of highly fragmented holdings and a majority of the ruralpopulation in dire poverty, investment in agricultural inputs and on-farmdevelopment is limited. Given the relative scarcity of land, significantincreases in production can only occur through crop intensification anddiversification, such as planting high-yielding varieties (HYV), increaseduse of inputs, expanded and improved irrigation and by increasing croppingintensity through measures such as better utilization of Land during theoff-season. GOB efforts are directed at: (i) developing infrastructure inirrigation and drainage; and (ii) strengthening supporting institutions incredit, input supply, marketing, research and extension.

THE FISHERIES SUBSECTOR

Resources, Production, and Consumption

2.03 Bangladesh is rich in fisheries resources. Located in the deltaof the Brahmaputra, Ganges, and Meghna rivers, one-fifth to one-third of itsland is flooded by the monsoon rains (June - October' for three to fivemonths of the year. Water, soil, and climatic conditions are favorable forinland fisheries and the flooded, rich agricultural Lands provide extensivegrounds for breeding, feeding, and larval nursing of fish and shrimps. As aresult, rivers and flood plains are abundant with fish and crustaceans.Also, Bangladesh has a 480 km coastline and claims 40,000 km2 of the con-tinental sea shelf that provides marine fish and shrimp.

2.04 Production of fish and shrimp in 1983/84 is estimated at 743,000tons, of which 80% came from inland fisheries and 20% from marine sources.Some 97% of the inland production stems from traditional small-scale fishingin flood lands, rivers, and lakes, and only about 3% of production is derivedfrom fish culture such as carp culture and shrimp culture which the projectwould support. Bangladesh ranks third in the world, behind China and India,among inland fish producing countries. Between 1962/63 and 1975/76 fishproduction declined from 720,000 tons to 640,000 tons (per capita consumptiondeclined from 12 kg to 8.7 kg) because of: (i) deterioration of fisheriesresources due to the construction of flood control works, water pollutionfrom industry and agriculture, and over-fishing of brood stock; and (ii) lackof government commitment and support for fisheries. Since 1980/81 whenproduction was 650,000 tons, inland fish production has picked up again andgrew 4.6% per annum in the years upto 1983/84, partly as a result ofincreased GOB emphasis put on inland fisheries and improved fishing gear suchas synthetic fiber nets for riverine fisheries. The catch of marinefisheries has increased even faster, at 8.6% per annum, in the same period.Fish contributes 80% of the population's animal protein intake. In 1983/84

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annual per capita consumption of fish was about 7.5 kg compared to 3 kg inIndia with one-third the population density and twice the per capita income.

Role in the Economy

2.05 The fisheries subsector contributes about 3% to Bangladesh's GDPor 62 to agricultural GDP. Subsectoral employment is about 3% of totalemployment, but these percentages do not highlight the importance of fishingas a full or part-time activity for many landless families. While fisheriesimports are negLigible, fisheries exports have become a major source offoreign exchange, US$76 M in 1983/84. Exports have grown more than 25% perannum over the past decade, with shrimp providing more than 80% of the value,and now exceed the value of leather and leather product exports, tradition-ally the country's second most important export category after jute and juteproducts. Bangladesh exports shrimp mainly to Japan and the countries of theEuropean Economic Community and its export volume constitutes less than 3% ofworld trade in shrimp.

Objectives for Development

2.06 GOB's principal objectives for the fisheries subsector are:

- to improve the nutritional level of the population throughincreased fish production and consumption (supplementing theagricultural development objective to increase foodgrainproduction to the level of self-sufficiency);

- to expand employment opportunities and improve socioeconomicconditions among those engaged in the fisheries subsector; and

- to increase export earnings from fisheries, including shrimp.

Increases in production and employment opportunities are mainly expected frominland fisheries, with aquaculture having the best potential for rapidgrowth. The proposed project would particularly address the export-earningsobjectives through shrimp culture.

2.07 The Bank reviewed the fisheries subsector in 1983, and concludedthat inland fisheries development would be more promising than marinefisheries in achieving GOB's development objectives and recommended develop-ment in three areas of aquaculture-based fisheries:

(i) Culture-based fisheries (mainly for carp) in larger inland waterbodies, such as in low-lying depressions within drainage and floodcontrol schemes. Annual production could increase from 150kg/ha/year to about 450 kg/ha/year. Some 200,000 ha of low-lyingland have such development potential;

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(ii) Shrimp culture development in coastal areas. Conversion ofcurrent low yieLding trapping methods into higher yielding"extensive" and "semi-intensive" operations could increase annualproduction of export quality shrimp from its current level ofabout 68 kg/ha to 250 kg/ha. Production on the 52,000 hacurrently exploited could increase from 3,500 tons head-on shrimpto 13,000 tons. An additional 42,000 ha of tidal land have beenidentified as technically suitable for shrimp-farming development;and

(iii) Intensification of carp culture in ponds where water controlconditions are appropriate. The adoption of "extensive"technology by fish farmers would aLlow annual production toincrease from 115 kg/ha to 500 kg/ha.

2.08 This development strategy was reemphasized in the "Draft MasterPlan for Inland and Marine Fisheries Development and Management" prepared byFAO. The findings and conclusions made public in March 1985 confirm mainemphasis on development of aquaculture by introducing new technology, exten-sion and credit. Also the need to strengthen and restructure DOF isreiterated.

Constraints for Development

2.0g Among the constraints identified in the fisheries subsector review,one is common to marine and inland fisheries: weak administration by theDirectorate of Fisheries (DOF) which lacks sufficient capability to plan,guide, and execute supportive or innovative subsectoral development. DOF'sabiLity to cater to the legitimate interests of the fisheries subsector isextremely limited. While the overall strengthening of DOF as an institutionwill be addressed in a separate project presently under preparation for UNDPfinancing (para 2.25), the proposed shrimp culture project would build up ashrimp culture extension service (SCES) and strengthen DOF's projectimplementation capability.

2.10 The main constraints to inland fisheries development, whereaquaculture is to receive highest GOB priority, are inadequate know-how anda lack of effective mechanisms to transfer know-how to fishermen. Also, thecapacity to create savings for investments necessary for aquaculture islimited when incomes are so low and fishing activities are small scale.Furthermore, GOB's current practice of short-term leases for public water-bodies is a disincentive for medium- or long-term investments. The proposedproject addresses each of these constraints.

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SHRIMP CULTURE DEVELOPMENT

The Setting

2.11 Shrimp trapping with nets for subsistence and commerce has beenpracticed in Bangladesh for a long time in rivers, tidal channels and alongthe coast. In the 1960s, traditional shrimp culture was interrupted whencoastal polders were constructed to protect AgricuLtural production fromfloods and saline water intrusion.

Area and Production

2.12 As demand and prices for shrimp on the international market rose,extensive shrimp culture developed mostly within polders. The area undershrimp culture has expanded rapidly over the past years, on the order of 40%per year, since 1980/81. In 1984, shrimp was cultivated over an area ofabout 52,000 ha in coastal areas, of which 61% were in the Khulna division inthe west, 36% in Cox's Bazar district in the east, and 3% in more centralcoastal areas. Production in 1984 was at some 3,500 tons of head-on export-able shrimp and 5,200 tons of miscellaneous small fish and shrimp consumed orsold locally. The 3,500 tons of head-on exportable shrimp are equivalent to2,200 tons of headless shrimp or 19% of Bangladesh's shrimp exports in1982/83 (11,500 tons), the balance coming from marine trawling as well ascoastal and riverine small-scale fishing.

Shrimp Farming

2.13 Shrimp farms are generally developed by building a small peripheraldike around low-lying land areas inside polders built by the Bangladesh WaterDevelopment Board (BWDB). Average landholding size in the polders is 1.' haand plots are fragmented and average 0.24 ha. The enclosed ponds range insize from 10 ha to 150 ha, depending on topographical features and localpractices in shrimp farming. Typically, the landowners lease the pond areafor about half a year to persons interested in shrimp farming, while using itfor paddy or salt production during the other half of the year. Water levelsin the ponds, varying with land elevation and tide, range between 0.3 m and1.0 m. Pond salinity varies with changes of salinity in adjacent rivers andtidal canals. The changes, in turn, depend on such factors as land elevationand location, volume and seasonal fluctuation of the rivers' upland flow. Inthe semi-saline zone of Khulna division in the west, river salinity risessteadily from October to June/July, then it decreases with the monsoon rains.In the eastern coastal area around Cox's Bazar, the shorter and wider riversand coastal channels respond to the influences of tne sea and to more intenserainfall, giving rise to a less stable and generally more saline regime.

2.14 The majority of shrimp is cultivated in rotation with paddy inKhulna division and with salt production in the Cox's Bazar district. Inthe shrimp/paddy rotation, shrimp grow from January to May; in the

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shrimp/saLt rotation shrimp grow from June to November. In both cases, Landis left fallow for half a year if it is not used for shrimp cuLtivation.Juvenile shrimp are entrapped in the pond with the influx of spring tides atthe beginning of the shrimp-growing season and depend for their growth mainlyon the detritus of decomposing micro-organisrns. Current yields of exportquality shrimp range from 50 kg/ha to 150 kg/ha with an annual average yieldof nearly 70 kg/ha/year. Yields have gradually improved in recent years,particularly in western Khulna division where some shrimp farmers havestocked their ponds with juvenile shrimp that were collected by fishermen inestuaries, and have reached yields of 150 kg/ha.

2.15 Shrimp monoculture is practiced in a limited area outside the BWDBpolders. Since 1979, to promote shrimp farming, DOF has leased from theDepartment of Forestry 1,695 ha previously under mangrove in Rampur in Cox'sBazar district. This tract of land has been converted to 41 shrimp monocul-ture farms of about 40 ha each that are operated by private individuals onshort-term sublease from DOF. In accordance with a recent COB decision themaximum size for a shrimp farming lease will be 13.2 ha so that three farmerswould jointly operate one 40 ha shrimp farm. To create an incentive forlease holders to make on-farm investments and to make them creditworthy formedium-term development loans the duration of the lease should be longer thanthe loan duration, i.e. at least eight years. Also, lease fees should be setat levels per unit of land that correspond to market rates in the very activemarket for shrimp farming leases. The proposed project would address theseissues (para 4.01). A similar shrimp culture project is currently beingfinanced by the Asian Development Bank on adjacent 1,700 ha. In the absenceof appropriate shrimp cuLture techniques, yields in shrimp monoculture areonly about 40% above those attained in rotation with paddy or salt.

Marketing and Processing

2.16 The local system for coLlecting, transporting, processing andshipping frozen shrimp is, in general, adequate and would accommodate theincremental output envisaged by the proposed project. In i984, 45 processingplants were in operation, of which 15 were in the Khulna, 28 in theChittagong and 2 in the Cox's Bazar area. Their combined annual processingcapacity is estimated to be about 60,000 tons of frozen headless shrimp.However, annual throughput is a mere 20% of installed capacity. This lowutilization is due to lack of raw material even though processors offercompetitive prices to attract shrimp to their plants or collection centers inshrimp producing areas. Thus, there is adequate processing capacity to deaLwith the project output and adequate price incentives for project producers.Most of the processing plants operate under a tax holiday system that exemptsprocessors from payment of income tax for five years or more, depending onlocation. In addition, processcrs benefit from other measures of industrialor export promotion, among which the Export Performance License System is themost important. It provides exporters of frozen shrimp with ImportEntitlement Certificates equivalent to 80% of the value of their exports.

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These certificates can be sold in the open market and, thus, improve businessprofitability. Some processors break even only because of the additionalincome from the sale of certificates.

Constraints and Potential

2.17 Without changes in technology, organization and policy, scope forgrowth of shrimp production is limited. Land suitable for extensive shrimpfarming is becoming scarce, and trawling involves difficuLt management ofocean fleet. In 1984, most poldered areas considered favorable for shrimpculture were already under some form of shrimp culture. Even if all suitableareas came into use with current technology, incremental production ofexportab:e shrimp would be minimal. Expansion of shrimp culture outside thepoldered areas is limited by the inaccessibility of land and the high cost ofland development. Current land-use policies and legislation make access tosuitable tidal land under mangrove forests difficult. Moreover, thc axran-sion of shrimp culture within the polders creates social rtnsions which slowfurther expansion. Shrimp culture is very often an acrivity of the rela-tively Larger landowners, who cooperate with bureaucrr.ts or businessmenpossessing the necessary capital, know-how, and entrepreneurial skill. Smalllandowners, paddy farmers, and salt producers who lease their small plots toshrimp entrepreneurs often feel deprived of a fair share of the financialbenefits of shrimp culture and maintain that shrimp producers do not ade-quately respect their interests. If the shrimp season is extended beyond itsusual duration for example, the production of paddy or salt in the rotationcan be reduced, thereby creating repercussions on empLoyment. These con-flicts are more pronounced in the paddy/shrimp environment of the westerncoastal belt than in the saLt/shrimp environment of the eastern coastalareas. The proposed project would address the issue of social conflicts bypromoting increased participation of small landowners (para 4.09), limitingproject activities in the western coastal areas (paras 3.04 and 3.05) andincluding components of relevant research and monitoring (para 4.16). Expan-sion of shrimp culture is further constrained by BWDB opposing saline waterintake in poldered areas. However, in the past BWDB was unable to stopshrimp farmers from making temporary cuts in embankments to allow tidalinflow of saline water sufficient for the low-yield shrimp culture that iscurrently practiced. Until very recently the Embankment and Drainage Act of1952 was not believed to be the right vehicle to regulate the intake ofsaline water into polder areas and therefore shrimp farming activities inpolder areas were considered illegal. However, instigated by the preparatoryefforts for the proposed project, COB examined the legal situation and, inJanuary 1985, the Ministry of Justice issued a legal opinion stating that theBWDB could be authorized under the Embankment and Drainage Act to permitsaline water intake in poldered areas. In the proposed project BWDB would bethe executing agency for the water control structures financed with publicfunds (para 4.02) and institute procedures for controlled saline water intake(paras 4.01 and 4.02).

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2.18 The key to sustained and expanded production and exports lies inintensifying existing shrimp-culture operations. First stage intensificationand improved shrimp trapping mainly involves improved water management. Itwould increase annual yields of exportable shrimp from the current averagelevel of about 70 kg/ha to 250 kg/ha. Further intensification through theuse of hatchery-produced juveniles in shrimp monoculture could increaseyields to 2,000 kg/ha. The intensification process has begun among a smallnumber of shrimp processors, who own shrimp-farming land, and have access totechnological advice from their partner in an importing country.

2.19 The technical know-how to run shrimp hatchery and more intensivefarming operations successfully is very limited in Bangladesh and there areno mechanisms to disseminate knowledge and proper culture practices to morethan 3,000 existing shrimp farms. Furthermore, intensification of shrimpfarming requires relatively costly investments in embankments, water controlstructures, and feeder canals. A broad intensification program cannotrealistically take hold without the more active participation of smallerlandowners, but the high cost of infrastructure for shrimp culture posesfinancing problems to most entrepreneurs, fishermen and farmers. Further,government ownership of the main perimeter embankments and government controlover the regulators and secondary embankments are the only ways to allay thelegitimate concerns of crop-farmer neighbors. Finally, the credit needs ofsmall landowners (e.g. for on-farm investments and seasonal working capital)as well as of middlemen and processors will have to be assured. All thispoints to the need for a joint public and private sector endeavor if the landresource is to be used efficiently and the potential for foreign exchangeearnings realized in full measure.

2.20 The proposed project aims at starting the intensification ofshrimp-culture production in Bangladesh's fisheries subsector. It would leadabout 15Z of the existing shrimp farms into the first stage of intensifica-tion and create the basis for further intensification, both in terms of areacoverage and progressively rising levels of technology.

INSTITUTIONS

2.21 The Department of Fisheries (DOF), the BangLadesh Water DevelopmentBoard (BIDB), the Bangladesh Bank (BB) and participating credit institutions(PCIs) would be the key project institutions and are described below. Otheragencies and institutions having a limited role in project implementation arelisted in para 4.05.

The Department of Fisheries (DOF)

2.22 DOF was created in 1943. Following independence, it was an agencywithin the Forest, Fisheries and Livestock Division of the Ministry ofAgriculture. In December 1977, DOF was transferred to the newly-formedMinistry of Fisheries and Livestock. During the government reorganization of

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1982, livestock and fisheries were combined with agriculture and forestsunder the Ministry of Agriculture. A further reorganization in 1985separated fisheries and livestock from agriculture. The Fisheries Division(FD) of the Ministry of Fisheries and Livestock now serves as GOB's mainagency in the fisheries subsector. FD includes DOF, the Bangladesh FisheriesDevelopment Corporation (BFDC), and a Marine Fisheries Research, Managementand Development Unit which is soon expected to be merged with DOF.

2.23 DOF is responsibLe for administering the development of inland andmarine fisheries. Its functions are: (i) implementation of fisheriesordinances including the administration of fisheries in public water bodies,licensing, and certification; and (ii) promotion of inland fisheries throughpreparation and implementation of fisheries development projects, research,training, and extension. DOF empLoys about 3,000 people. It is headed by aDirector, assisted by an Additional Director and Deputy Directors forregional and technical divisions. DOF's major functional unit is the FieldOrganization comprising Divisional, District and Upazila fisheries officesand fish seed multiplication farms. The Field Organization employs some 100senior and supervisory staff and about 900 field officers, fishery officers,lake managers and support staff. A biological research section consists ofsome 60 scientific officers, project officers and research assistants. DOFalso has a small training section and technological and marine groups headedby Deputy Directors.

2.24 DOF is neither adequately organized nor equipped with the necessaryfinancial, technical, and manpower resources to perform its managerial anddevelopmental functions effectively. DOF's tasks are further complicatedby the numerous GOB agencies involved in one or more aspects of fisheriesdevelopment, the generally cumbersome and inatficient administrative systemcontrolling the operations of all GOB agencies and low staff motivation,largely caused by imprecise job descriptions and low salary levels. Theorganization of DOF is shown in Chart 27228.

2.25 The Bank fisheries subsector review assigned highest priority toimplementation of a plan for organizationally strengthening DOF as a means ofadvancing fisheries development. In 1984, a Joint GOB/FAO/UNDP evaluationmission endorsed DOF's strengthening, and proposed the provision of consult-ing services (15 man-months) in organization, public administration, andfisheries development to assist GOB in preparing a program for improvingDOF's capabilities in specific areas. Subsequently, UNDP's Fishery AdvisoryService Project (BGD/81/0341F10112) provided funds for these services. Underterms of reference (TOR) approved by the Food and Agricultural Organization(FAO) as Executing Agency and by the Bank, a Programming Team completed fieldwork in mid 1985. The consultants have submitted a draft report proposinga UNDP financed technical assistance pro iect which would complement the morespecific Project Related Technical Assistance (PRTA) to be financed under theproposed project (paras 3.19 - 3.20).

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Bangladesh Water Development Board (BWDB)

2.26 BWDB operates under the supervision of the Ministry of Irrigation,Water Development and Flood Control. It is charged with the responsibilityof planning, constructing, and operating and maintaining all flood controland drainage schemes as well as major and medium-sized irrigation systems.In this capacity, it constructed the coastal embankment schemes in the 1960sand would also be the Executing Agency for the construction of major embank-ments and regulators in the proposed project. Water subsector deveLopment isguided by the following objectives, which were confirmed in a joint GOB/WorldBank review of BWDB in 1979: (i) improving water sector planning;(ii) strengthening the implementation capacity of BWDB; and (iii) rehabili-tating operational BWDB schemes. After several years of institutionalimprovements, a new organization plan (Chart 27229) was put into effect inOctober 1984.

Bangladesh Bank (BB) and Participating Credit Institutions (PCI)

2.27 The providers of agricultural credit in Bangladesh are:(i) Bangladesh Bank (2B) as the Central Bank and refinancing agency;(ii) Bangladesh Krishi Bank (BKB), a development bank and the largest sourceof institutional credit for agriculture; (iii) Bangladesh Samabaya Bank Lcd.financing the coeperative sector; (iv) nationalized commercial banks --Sonali Bank, Janata Bank, Agrani Bank, Pubali Bank and Rupali Bank; and(v) Uttara Bank, a formerly nationalized commercial bank that wasreprivatized in 1984 following COB's decision to readmit private banks. Thesystem is plagued by major institutional problems, particularly weak manage-ment, lack of financial discipline, and resulting high rates of overdueloans. Following an in-depth review of the credit system, conducted jointlyby GOB and the Bank in 1983, major policy changes are being implemented toimprove efficiency and credit availability. The credit component of theproposed shrimp culture project would be limited, and credit delivery wouldbe handled by BKB and Sonali Bank which have branch offices in the Upazilaswhere the proposed project would operate and such other PCIs as may be agreedby GOB and IDA. Because of this limited scope and its focus on a few smallgeographical areas, the proposed project cannot be used as vehicle to remedythe problems of the entire agricultural credit delivery system in thecountry. These weaknesses would have to be addressed in a second agricul-tural credit project that would focus on institution-building. However, theproposed shrimp culture project would lend institutional support to the PCIbranches operating in the project area and would disburse subloans under theproject under a supervised credit scheme (para 4.03) that would be carefullymonitored and is expected to have a demonstration effect on other creditactivities.

2.28 Bangladesh Bank (BB), established in 1972 as the Central Bank, isfully owned by GOB. Apart from performing all central banking functions, BBthrough its Agricultural Credit Department draws up the annual credit

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program, devises new credit schemes, advises credit institutions on ruralcredit matters, inspects commercial banks, BKB branches, and major coopera-tives engaged in rural credit operations, and channels refinance for rurallending to them. In FY80, BB introduced a short-term credit scheme forfinancing shrimp farmers through BKB and the nationalized commercial banks insome coastal districts.

2.29 Bangladesh Krishi Bank (BKB), established in 1973 is an autonomousGOB-owned bank. It accounted for 59% of institutional lending to agriculturein FY83. BKB's lending volume increased more than 22-fold from FY75(Tk 176 M) to FY83 (Tk 4,008 M); its profits rose from Tk 16.9 M in FY76 to31.6 H in FY80. Its loan recovery rate improved from 38Z in FY75 to 70Z inFY83, followed by deterioration thereafter. For FY84, the recovery rate onmedium- and long-term loans is only available for the Rajshahi division, thearea covered by the First Agricultural Credit Project (Cr. 1147-BD). It was32% in FY84, down from 45% in FY83.

2.30 Sonali Bank is the largest commercial bank in Bangladesh and isthe most experienced in agricultural lending. Its lending volume in agricul-ture almost doubled from FY81 (Tk 2,725.3 M) to FY83 (Tk 5,350.6 H) and itsnet profits increased five-fold from Tk 96.2 M to Tk 504.5 M over the sameperiod. Sonali Bank's recovery rate was 70X in FY77 and 72% in FY80, alsofollowed by a worsening recovery position. Recovery figures for the Rajshahidivision deteriorated from 54X in FY83 to 40% in FY84.

BANK GROUP INVOLVEMENT IN THE SECTOR

2.31 Bank involvement in inland fisheries development emerged in thecourse of financing water resource development projects. Spec_fically, itfocussed on the need to identify possible adverse effects on inland fisheriesfrom flood control, drainage, and irrigation works and to mitigate sucheffects by introducing fishery components in these projects. A fisheriessubproject, including significant technical assistance, was included in theKarnafuli Irrigation Project (Cr. 605-BD) in order to assess the impact ofirrigation and flood control projects on fisheries. It also involved theestablishment of a modern carp hatchery-cum-inland fisheries trainingfacility and was successfully completed in June of 1982. Recently the over-all project has been compLeted, but a Project Completion Report has not yetbeen prepared. Dialogue with GOB on the broader issues of inland fisheriesdevelopment has concentrated on increasing inLand fisheries productionthrough the introduction of upgraded aquaculture techniques.

2.32 The Oxbow Lakes Fisheries Project (Cr. 890-BD) finances hatcheryand fingerling rearing facilities at six individual lakes. The centralhatchery began operating in 1984. Hatcheries at satellite lakes are expectedto start operation in 1985. The stocking of lakes has begun and fish produc-tion exceeds expectations. However, delays and problems in project implemen-tation have been experienced because of: (i) organizational weaknesses in

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DOF; (ii) cumbersome GOB procedures and administrative ineffectiveness,especially with respect to release of GOB funds; and (iii) land acquisitiondifficulties. NevertheLess, it is expected that the objectives of theproject will be fuLly met and that the annual fish production from projectlakes will be increased by a factor of eight. As a pioneering undertaking,the project has great significance for large-scale development of cul-ture-based floodplain fisheries in Bangladesh. To date, there has been noinvolvement of the Bank in shrimp culture development.

III. THE PROJECT

PROJECT OBJECTIVES AND RATiONALE

3.01 The proposed project would intensify the production of shrimp inthe coastal area of Bangladesh through introduction of improvedshrimp-culture technology consisting mainly of improved water management andrelated shrimp culture practices. It would be physically implemented in fiveyears.

3.02 Through increasing shrimp production the project would aim toachieve two primary objectives:

(i) increase foreign exchange earnings through export of shrimp; and

(ii) increase incomes, economic activity, and nutrition in coastalrural areas.

Secondary objectives would be to:

(i) improve fisheries administration and extension services;

(ii) improve aquaculture policies and initiate procedures on the basisof existing legislation for controlled salt water intake inpolder areas for the purposes of shrimp culture;

(iii) modify GOB's leasing policy for public land to allow long termleases that are necessary to encourage investment;

(iv) improve capacity utilization in the shrimp-processing industry; and

(v) improve marketing of shrimp;

At full project development, incremental annual production would consist ofabout 1,500 tons of exportable shrimp with a farmgate value of US$7.1 K inconstant November 1985 prices equivalent to an export value of US$8.7 M, andof about 1,800 tons of miscellaneous shrimp and fish for local consumptionvalued at US$1.5 M.

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3.03 GOB accords high priority to the development of improved shrimpculture. Infrastructure for improved shrimp culture is costly and consistsof peripheral embankments, reguLators, and flushing and drainage channels.The building of new structures and their integration with existing ones posesfinancial, technical and organizational problems which, in the context ofBangladesh, can only be overcome by public sector efforts. Therefore,besides investment in physical structures in the main project area(para 3.04), substantial inputs are required to establish: (i) demonstrationfarms and pilot shrimp hatcheries to demonstrate the viability of new techni-ques to the shrimp-farming community and to encourage private investment; and(ii) a shrimp culture extension service and training systems for transferringtechnology. These inputs would also be made available in additional projectareas (para 3.04) where shrimp production would be supported only by exten-sion service and credit facilities offered to the private sector.

PROJECT AREA AND STATUS OF ENGINEERING

Location

3.04 A main project area of about 7,000 ha of low-lying, coastal landsalready under shrimp culture would be improved. About 1,400 ha would be inKhulna district (Polder 20 and 20/1) and 5,600 ha in Cox's Bazar district ofwhich about 3,900 ha would be developed in existing polders and 1,700 ha onformer mangrove land in Rampur leased by GOB to private shrimp farmers since1979. Additional project areas of 2,500 ha would be improved through exten-sion service and credit without public investment. These additional areaswould still be identified during project implementation. The location of theproject areas in Khulna and Cox's Bazar districts in relation to Dhaka isshown in Map IBRD 18698. Road and river communications in each of the dis-tricts and main administrative centers are shown in Maps IBRD 18699 and IBRD18700R.

Criteria for Selection

3.05 The project area includes lands where the three modes of shrimpcultivation currently in use (paras 2.14 and 2.15) are being practiced. Thecriteria for selection take into account numerous physical requirements andthe location's suitability for extensive or semi-intensive shrimp-farmingwithout adverse effects on existing land-use patterns. For the additionalareas (2,500 ha) where development without public sector construction ofinfrastructure is envisaged, these criteria would also be applied. A furtherprerequisite would be that the existing infrastructure would permit a waterexchange sufficient for some incremental production in extensive shrimpculture. Assurances were obtained at negotiations that: (i) the abovecriteria which are set out in detaiL in Annex 7 would be applied by theProject Implementation Unit (PIU) in selecting the additional areas

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(para 3.07); (ii) BWDB would app-ove the selection by PIU in terms of techni-cal suitability; and (iii) the proposals regarding che inclusion of addi-tional areas in the project for implementation would be submitted to IDA forapproval prior to the disbursement of project funds.

Status of Engineering

3.06 Consulting services were financed by UNDP and procured by the Bankas Executing Agency to carry out the detailed engineering plan and design ofthe main shrimp-farming infrastructure. The work commenced in January 1984,and a Draft Final Report, issued in August 1984 (Project File, Annex 8),provided the technical data basis for appraisal of the shrimp-farminginfrastructure component of the project. During preparation of the detaileddesign, alternative technical solutions were carefully examined before aproposed solution was adopted. For example, for Polder 20 three alternativeswere analyzed. It was finally decided to keep the Karia River that runsnorth-south through the Polder closed at both ends because this representsthe least cost solution, and the risk of river bed siltation through drainageis small. The report identified a totaL of 8,734 ha of land suitable forshrimp-farming development of which the following areas were retained fordevelopment under the project:

Area (ha)Cox's Bazar District(shrimp/salt rotation on Polder 70 1,255privately-owi.ed land) Polder 66/4 1,283

Polder 66/3 1,361Subtotal 3,899

Cox's Bazar District(shrimp monoculture ongovernment-owned land) Rampur 1,695

Khulna District(shrimp/paddy rotation onprivately-owned land) Polder 20 & 20/1 1,430

Total Area 7,024

3.07 The consultant's detailed design and cost estimates are generallyacceptable. BWDB would build the shrimp-farming infrastructure in the mainproject area and wouLd introduce minor design modifications as found neces-sary after final formation of shrimp farming groups. Particularly in theCox's Bazar but also in the Khulna district, additional areas with similarstatus of shrimp farming development are available. To test the feasibilityof increasing shrimp production without public sector investments 2,500 ha

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of additional areas would be included in the project where, supported byinstitutional credit, extension service and training, the necessary invest-ment would be undertaken by the private sector. The additional areas wouldbe selected by PIU during *..e first two years of project implementation underapplication of specific criteria and, after approval of implementation(para 3.05), credit for on-farm improvements and secondary embankments,extension service and training would be made available. Detailed engineeringfor the PIU hatcheries (para 3.12) would be prepared by the PIU consuLtants(para 3.19).

PROJECT COMPONENTS

3.08 The purpose of the proposed project is to intensify the productionof high-vaLue shrimp from tidal lands currently being used for low-yieldingshrimp trapping in order to generate income and foreign exchange in responseto demand for such shrimp on international markets. The project would com-plement GOB's current efforts and create the basis for future programs todevelop coastaL aquaculture within the Fisheries Master Plan that has beencompleted in March 1985 and contains 29 projects in the fisheries subsectorover the next 20 years. It would require close monitoring and evaluation togain insights for further investments to develop and expand shrimp culture insuitable coastal areas on a larger scale.

3.09 To achieve the above objectives the proposed project would providefor:

(i) infrastructure (embankments and water control structures andshrimp hatcheries) which would permit more efficient watermanagement in the main project area of 7,000 ha and supplyhigh-quality shrimp seed;

(ii) supply of medium-term credit to shrimp farmers, traders andhatchery operators for financing on-farm investments, marketingequipment and private hatchery investments;

(iii) institutional support through financing of buildings, equipment,incremental staff salaries, and incremental operating costs forDOF and BWDB in order to strengthen their ability to implement andmonitor the project; and

(iv) technical assistance consisting of: (a) consulting services toassist a Project Implementation Unit (PIU) in project implementation,training and coordination of project activities; and (b) trainingof shrimp farmers and providing fellowships for subject matterspecialists (SMSs) and PIU staff.

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DETAILED FEATURES

Infrastructure

3.10 Embankments and regulators are the principal infrastructurerequired to intensify shrimp farming in the main project area. Embanknentswould comprise: (i) mainflood protection embankments enclosing polderedareas; (ii) secondary embankments to separate the project's shrimp-farmingareas effectively from adjacent Land to avoid seepage of saline water andaLso to separate shrimp farms from each other; and (iii) pairs of parallelembankments forming main water supply and drainage channels for a set ofshrimp farms. Where BWDB embankments exist, project financing wouldrehabilitate and improve them to the standards required. The cross-sectionsof the three main categories of embankments, the general arrangement ofembankments, the location of the main regulator, and the supply and drainagechannel of a typical shrimp farming block are shown in Chart 26928. The7,024 ha for which detailed engineering has been completed would be dividedinto 55 shrimp-farming blocks of about 125 ha each. Each of these blockswould have one main regulator and consist of several shrimp farms. Land forthe construction of new or modification of existing embankments would have tobe acquired except in the 1,695 ha area in Rampur which belongs to COB and isleased out (para 3.06).

3.11 A main water control regulator's discharge capacity is designed asa function of the area to be served and the height to which high tides in thearea rise above the average level of the land. Layouts for proposed projectworks are provided in Maps IBRD 18701 for Polder 20 and IBRD 18703 for Polder66/4. A detailed description of the civil works is in the Project File(Annex 8). The total base cost of project embankments and regulators withoutthe cost of land would be Tk 267 M (US$8.9 M). This represents a cost per haof major structures of Tk 38,055 (US$1,267).

3.12 Shrimp Hatcheries. The construction of two PIU shrimp hatcheries,each with an annual production capacity of about 10 M juvenile shrimps wouldbe financed under the project for commercial and demonstration purposes.Hatchery sites would be in or close to the shrimp-farming areas, where waterquality is suitable, shrimp broodstock is obtainable, and the demand forhatchery-produced juvenile shrimp is high. The type of hatchery required isillustrated in Chart IBRD 26931 and consists of buildings and tanks describedin more detail in the Project File (Annex 8). The hatcheries would bedesigned and managed to produce juvenile shrimp of marketable size. Onehatchery each would be constructed simultaneously in the Cox's Bazar andKhulna districts. InitiaL demand for hatchery-produced juvenile shrimp isexpected from the monoculture shrimp farms in Rampur, which tend to haverelatively higher levels of production, calling for a supply of uniformjuveniles. As shrimp production intensifies in other areas, demand isexpected to iuicrease. Hatchery produced juvenile shrimp would not be crucialto achieving projected shrimp production benefits but would help to conserve

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natural shrimp resources by limiting the collection of juvenile shrimp in theestuaries. Once the hatcheries have demonstrated technical and financialviability DOF would transfer the technicaL knowhow to construct and operatehatcheries to the private sector. Interest in hatchery investment alreadyexists in the private sector, and, accordingly, credit for the constructionof nine private hatcheries would also be provided under the project. Thetotal base cost of the two PIU hatcheries would be Tk 11 M (US$0.3 M).

Credit Component

3.13 Farm Improvements. Credit would be provided to finance on-farminvestments in all the project areas. In the additional project areas creditwould also be provided to finance secondary embankments separating shrimpfarms from adjacent areas. Credit is essential because the small land-ownersparticipating in the project would not have the means to finance the neces-sary investments as equity nor would they be creditworthy as individuals.Under the project, loans would be made to groups of farmers under joint andseveral liability. In the Rampur area where government land is leased outand Leases are limited 13.2 ha, the average shrimp farm size would be about40 ha. Elsewhere the size of group farms would be in the range of 20-60 ha.Croup farms of 20 ha, 30 ha and 60 ha are expected to cover 53Z, 36% and 11%of the project area, respectively. On-farm investments would consist of theconstruction of embankments subdividing shrimp farms into individual ponds,including a storage pond and a harvesting channel for each. A schematic plangiven in Chart 26930 indicates the main features of the layout. Regulatorsof simple brick or wooden construction would control water supply anddrainage between the farm and the main water supply and drainage channel.Additional regulators leading into the main stocking area and the storageponds of each farm would facilitate water management and the movement andtrapping of stock. Equipment would also be provided for farm improvementsincluding tubewells, boats, nets, handtools, and other equipment. In partsof Rampur and in Polder 20, the elevation of some shrimp farms is too highfor a reliable water supply to be maintained by tidal action, and portablepumps would be included in the farm improvements for these farms. Creditwould also be available for drinking water pumps and village ponds to ensurean adequate supply of freshwater for human and animal consumption.Short-term operational funds would be made available by the PCIs but are notfinanced under the project. Total base cost of on-farm investments to befinanced under the credit component would be Tk 190 M (US$6.3 M).

3.14 Marketing Equipment and Private Hatcheries. To improve the qualityof shrimp for export, improvements in handling and transporting shrimp fromfarms to processing plants are important. Credit would be provided to shrimpfarmers and shrimp traders for: (i) insulated ice-boxes for temporary storageof shrimp; (ii) plastic containers to prevent damage to iced shrimp duringtransportation; and (iii) construction of small ice plants in remote areaswhere ice supplies are inadequate. The construction of nine private shrimphatcheries (para 3.12) would also be financed under the credit component.

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The totaL base cost of marketing equipment to be financed would be Tk 14 M(US$0.5 M). The nine private hatcheries would have a base cost of Tk 46 M(US$1.5 M). The cost per unit is slightly lower than for PIU hatcheries(para 3.12) because no residential buiLdings are incLuded.

Institutional Support

3.15 DOF Office Building. Construction of a new headquarters buildingfor DOF has commenced on a site at Segunbagicha in Dhaka, but only foundationpiling and some civil works of the super-structure have been completed.Budgetary constraints are expected to delay completion of the seven-storey,46,800 sq ft building for several years. Earlier completion of the buildingwould allow DOF to move out of its current inadequate accommodation earlierthan otherwise Likely. Therefore, the costs of construction of the super-structure of the buiLding would be financed under the project. The buildinghas been designed by the Directorate of Architecture of the Ministry ofPublic Works and Urban Development. Details of the layout which werereviewed and found acceptable are in the Project File (Annex 8). Total basecost of the building would be Tk 14 M (US$0.4 M), and work is scheduled to becompleted during PY 3.

3.16 DOF Project Administration and Shrimp Culture Extension Service.Under the project, a Project Implementation Unit (PIIU) would be establishedwithin DOF. The most important element of PIU would be a mobile shrimpculture extension service (SCES). To help alleviate GOB's budgetaryproblems, funds would be provided for: (i) salaries of incremental staff(Project Director, six PIU administrative and monitoring and evaluationofficers, two engineers, 22 extension officers, 12 DFTC officers, six subjectmatter specialists (SMS), eight hatchery officers, and support staff);(ii) vehicles, boats and equipment; (iii) vehicle- and boat-operating costs;and (iv) office and a limited number of residential buildings for PIU and theSCES in the project areas. IDA financing of the above salaries and operatingcosts would be on a declining scale (para 3.29). Base costs for the com-ponent without the DOF building would be Tk 62 M (US$2.1 M).

3.17 BWDB Field Divisions. To ensure the efficient implementation ofconstruction work, BWDB's field operations need to be strengthened. Twoseparate divisions (one each in the Cox's Bazar and Khulna area) would becreated to manage the construction work related to the shrimp farminginfrastructure. Finance would be provided for: (i) incremental staffsalaries and operating costs; and (ii) vehicles, boats and equipment. As forPIU, IDA financing of salaries and operating costs would be on a decliningscale. Base costs for the component would be Tk 49 M (US$1.6 H).

3.18 Demonstration Farms and Training Centers (DFTCs). Two DFTC units,one each in Khulna and Cox's Bazar area, would be established for purposesof: (i) training extension workers; (ii) training operators of shrimp farms;and (iii) demonstrating improved techniques in shrimp farming to the public,

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in general, and to fishermen and farmers, in particular. Each facility wouldconsist of about 8 ha of demonstration ponds, a combined training hall/guestquarters building (2,700 sq ft floor area) a hostel of (2,150 sq ft) andstaff residential buildings (5,950 sq ft). The ponds of up to 3 ft depthwould be enclosed within earthen embankments. A channel connected through aregulator to a nearby tidal channel would supply water and drainage. DFTCsites have been selected and transferred to DOF. A schematic DFTC layout isshown in Chart 26932. Total base cost for the two DFTCs is estimated atTk 16 M (US$0.5 M). Each DFTC would undertake continuous programs of demon-strating farming systems and corresponding production intensities. Salariesof incremental DFTC staff, including the farm managers, subject matterspecialists and technicians and support staff would be financed under theproject, on a scale declining over the period of project implementation(para 3.29).

Project-Related Technical Assistance (PRTA)

3.19 PRTA for Implementation. Implementation of the project wouldrequire technical expertise in intensified shrimp culture, a new endeavor forDOF. Furthermore, the project involves a number of implementing agencies andrequires efficient management and coordination. Tn ensure efficiency, thedesired demonstration effect, and project replicability, ibout 120 man-months(n/im) of internationally recruited consulting services would be provided toassist PIU in the fields of shrimp farming, project management, training,engineering/hydrology and various other project related disciplines includingrural development. The internationally recruited consultant would sub-contract with a local consultant, preferably a non-governmental organizatioi(NGO), which would be responsible for the field work related to the formationof shrimp farming groups (para 4.09). The PRTA for project implementationwould also include vehicles and equipment for the consultants. Total basecost of PRTA for PIU would be Tk 79 M (US$2.6 M). It would supplement otherongoing technical assistance, that is designed to strengthen DOF in its roleas policy-making and administrative agency for the fisheries subsector.

3.20 Training and Fellowships. Dissemination of advanced shrimp-culturetechniques by well-trained extension staff is essential to project success.Training of extension staff would be imparted by PIU's training staff in theproject DFTCs (para 3.18) and SMSs in their field of specialization. PIUconsultants would play an important role in initial training. The trainingwould be implemented in accordance with a training plan that would beannually updated (para 4.09). At a later stage, training in shrimp-culturetechniques would be supplemented by about 20 fellowships abroad for which theproject would provide funds. Also, stipends for the training of about 3,000shrimp farmers in DFTCs would be financed. The base cost of training andfellowships would amount to Tk 8 M (US$0.3 M). The entire cost of PRTA,including contingencies, of Tk 157 M (US$4.5 M), would be financed by UNDPunder a subproject for which IDA would be Executing Agency.

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PROJECT COSTS

3.21 Project costs, including physical and price contingencies, would beTk 1,299 M (US$36.7 M) of which Tk 180 M (US$5.1 M) would be duties andtaxes. Tk 327 M (US$9.2 M), equivalent to 25Z of total project costs, wouldbe foreign exchange. Details of costs, summarized below, are in Annex 1.

i

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BINLAESHSHRIMP CULTURE PROJCTPROJECT COST SUItARY

(T MIllion) (USS million)

Z Total Z TotalZ Forein Base I Foreign lase

Local Foreign Total Exchange Costs Local Foreign Total Exchange CostsSguaJDZJlB* smaa.333 =38 -33 amrre- Snugs n:rrro -rrrr orr:re:fr -==:

A. INFRASTRUCTURE

LAND 30.2 - 30.2 - 4 1.0 - 1.0 - 4ENDANKNENTS 61.9 - 61.9 - B 2.1 - 2.1 BREGLATORS 160.1 36.4 196.5 19 25 5.3 1.2 6.5 19 25VAVE PROTECTION 7.9 1.1 9.0 12 1 0.3 0.0 0.3 12 1HATCH. IUILDINGS (GOD OWED) 9.1 1.9 9.8 19 1 0.3 01 0.3 1B 1HATCH. EQUIPMENT (GOB DUPED) 0.9 0.7 1.4 46 0 0.0 0.0 0.0 46 0

Sub-Total INWRASTRUCTURE 269.9 39.9 309.9 13 39 9.0 1.3 10.3 13 39D. CREDIT FIN. SHRIMP FARM.

HATCHERY AND MARKETING INUESTMENT

ON-FARM INFRASTR. AND EQUIPMENT 153.4 36.2 189.6 19 24 5.1 1.2 6.3 19 24PRIUATE HATCHERIES 35.9 10.1 45.9 22 6 1.2 0.3 1.5 22 6JMARKETING (FARI TO PROCESSING) 9.7 5.7 14.4 39 2 0.3 0.2 0.5 39 2

Sub-Total CREDIT FIN. SHRIMP FARM,HATCHERY AND MARKETING INVESTMENT 199.0 52.0 249.9 21 32 6.6 1.7 9.3 21 32

C. INSTITUT. SUPPORT PIU AND BIDB

LAND 0.5 - 0.5 - 0 0.0 - 0.0 - 0BUILDINGS FOR PTU 21.6 4.7 26.3 19 3 0.7 0.2 0.9 18 3INCI SALARIES AND OP.

cosTs FOR PRIU 33.2 8.7 41.9 21 5 1.1 0.3 1.4 21 5INCR. SALARIES AND OP.

COSTS FOR BDD 26.9 - 26.9 - 3 0.9 - 0.9 - 3VEHICLES AND EQUIPMENT FOR PIU 6.0 1.2 7.3 17 1 0.2 0.0 0.2 17 1VEHICLES AND EQUIPMENT FOR BDMB 11.9 10.2 22.0 46 3 0.4 0.3 0.7 46 3-EONSTRATION FARMS 12.6 3.5 16.1 22 2 0.4 0.1 0.5 22 2

Sub-Total INSTITUT. SUPPORT PIU AND DUB 112.6 28.3 140.9 20 19 3.8 0.9 4.7 20 18D. TECHN. ASSIST., TRAINING

AND FELLOUSHIPS- - - - - - - -

IMfPLEENTATION CONSLTANTS 29.0 50.3 79.3 63 10 1.0 1.7 2.6 63 10TRAINING AND FELLOUSHIPS 3.5 4.6 0.1 56 1 0.1 0.2 0.3 56 1

Sub-Total TECHN. ASSIST,, TRAININGAND FELLOMSHIPS 32.5 54.9 87.4 63 11 1.' 1.8 2.9 63 11

Total BASELINE COSTS 612.0 175.1 787.0 22 100 20.4 5.9 26.2 22 100Physical Continsencies 66.3 18.0 E4.1 21 11 2.2 0.6 2.8 21 11Price Contingencies 293.5 134.2 427.7 31 51 4.9 2.8 7.7 36 29

Total PROJECT COSTS 971.5 327.3 1,298.B 25 165 27.5 9.2 36.7 25 140Nom b==e= 2. 15 1:_ =18,== __ ===== .== ===._= ___=

November '.'t 198s 13:18

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3.22 Cost estimates are updated to November 1985. For civil works theyare based on engineers' estimates. The costs of the other components arebased on actual costs for similar items and past experience. Physical con-tingencies were, in accordance with experience from other projects, added tobase costs as foLlows:

(i) zero for land to be acquired for embankments and for vehiclesand boats;

(ii) 10X for embankments, reguLators, buildings, incremental operatingcosts and staff salaries, office and other equipment and PRTA; and

(iii) 15% for the PIU offices, demonstration farms and residentialbuildings, including land.

Total physicaL contingencies amount to Tk 84 H (US$2.8 M) or 11Z of baselinecost. Price contingencies on foreign costs, amounting to Tk 134 M(US$2.8 M), were calculated at the foLlowing rates, compounded annually, forFY86-91: 3.4% (for eight months only), 7.0%, 7.25%, 7.62, 7.65% and 6.05Z.Price contingencies on local costs amount to Tk 294 X (US$4.9 H), computed onthe basis of 8.0% for eight months of FY86, 12% for FY87 and 10% for FY88 toFY91. Total price contingencies amount to Tk 428 H (US$7.7 M) or 29% ofbaseline cost.

FINANCING

3.23 The financing pattern would be as follows:

Investor PCIs BB UNDP IDA GOB Total

-_-__-_ ----- uS H

A. Land Acquisition - - - - - 1.2 1.2B. Civil Works - - - - 12.3 1.3 13.6C. Equipment and Vehicles - - - - 0.9 0.4 1.3D. Shrimp Farm Investment 0.9 1.8 0.9 - 5.4 0.0 9.0E. Pr. Hatch. & Marketing Inv. 1.0 0.6 0.5 - 1.2 0.0 3.3F. Technical Assistance - - - 4.5 - 0.0 4.5G. Incr. SaLaries & Op. Costs - - - - 2.2 1.0 3.2H. O&M for Civil Works - - - - - 0.6 0.6Total Disbursement 1.9 2.4 1.4 4.5 22.0 4. 5 36.7

X of Total 5.2 6.5 3.8 12.3 60.0 12.2 100.0

3.24 Total project costs amount to US$36.7 H, of which IDA would finance60Z, GOB 12%, UNDP 122, BB 4%, PCIs 7% and investors 5%. Duties and taxesare estimated at US$5.1 H or 14% of total project costs. Of project costs

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net of duties and taxes (US$31.6 H) the IDA Credit would finance 70Z, COB OZ,investors 42, PCIs 8Z, BB 4Z and UNDP 14%.

3.25 About 70 (US$15.4 H) of the IDA Credit wouLd be channelled by GOBto PIU and BWDB and later recovered, in part, from project beneficiaries(para 6.06). The remaining 30% (US$6.6 M) would be onlent tc BB at 6% perannum for twelve years, incLuding four years of grace. BB would bear theforeign exchange risk on behalf of GOB and retain 2.5% of the 6C onlendingrate as foreign exchange fee. IDA would refinance 80% (rounded weightedaverage) of the disbursements made by BB for all investments, and BB wouldrefinance 78% of PCI disbursements for on-farm investments and 72% of PCIdisbursements for investments in hatcheries and marketing equipment. BBrefinance would be at 8.5X per annum over eight years for medium-term (MT)loans. BB would refinance short-term loans from its own funds, i.e. theywould not be eligible for IDA financing, and assurances were obtained atnegotiations that BB and PCIs would make available short-term loans toproject beneficiaries in the amounts necessary and in a timely manner. ThePCIs would make direct loans for on-farm investmierts, for construction ofnine privately-owned hatcheries and for working capital requirements to theultimate borrowers-individual farmers, groups of farmers, traders andhatchery operators. The repayment period for investment credit would be 5-7years, depending on the projected cash flows, and six months for workingcapital financing. Repayments would be made according to the annuitiesmethod. The PCIs would provide credit equal to 702 of investment inhatcheries and marketing equipment and 90% of investments in farm improve-ments (para 3.13) for individual or groups of farmers. No equity contribu-tion would be required for short-term lending to farmers. Loans would besecured by hypothecation of crop, joint and several liability and chattelmortgage of assets. Land mortgage would only be required in the case ofhatchery loans. The interest rate on the loans to investors would be 16Z perannum including service charge. Penal interest rate of 6Z per annum wouldbe collected on overdue loans. The terms and conditions for nnlending arein line with those adopted in 1984 for agricultural lending on recommendationmade in the Joint GOB/IDA Credit Review (para 2.27). Details on the role ofPCIs in the credit component are in Annex 2.

3.26 Domestic infl.tion for Bangladesh is projected to decline from anestimated 14% in FY85 .o 12Z in FY86 and to 10 thereafter. The proposedinterest rate to ultimate beneficiaries would, thus, be positive in realterms. The signature of a Subsidiary Loan Agreement between GOB and BB andof Participation Agreements between BB and the PCIs reflecting the aboveonlending terms would be a condition of Credit effectiveness.

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PROCUREMENT

3.27 Procurement arrangements would be as follows:

Procurement Method a/ TotalICB LCB Other NA b/ Cost

~ ~ US$M _

Land Acquisition 1.2 1.2(0) (0)

Civil Works 13.6 13.6(12.3) (12.3)

Equipment and Vehicles 0.7 0.5 0.1 c/ 1.3(0.5) (0.3) (0.1) (0.9)

Credit Items (FarmImprovement, Private 12.3 12.3Hatcheries and Mark- (6.6) (6.6)eting Investments)

PRTA (Consultants, 4.5 d/ 4.5Equipment, Training) (0) (0)

Incremental Salaries 3.2 3.2and Operating Costs (2.2) (2.2)

O&M for Structures 0.6 0.6(0) (0)

Total 0.7 14.1 16.9 5.0 36.7(0.5) (12.6) (6.7) (2.2) (22.0)

a/ The figures include physical and price contingencies. Figures inparentheses are the respective amounts finsnced by the IDA Credit.

b/ Procurement procedures not applicable.ci Contracts of less than US$10,000 up to an aggregate of US$100,000.d/ Procurement in accordance with UNDP procedures.

3.28 The project would require procurement of land, civil works, equip-ment and vehicles, items to be financed on credit for private individuals,consultants, training, fellowships, and incrementaL expenditure for staff andoperating costs. Procurement procedures would be as follows:

(a) Land Acquisition (US$1.2 M including contingencies). Land forthe DOF administration building and the DPTCs is already acquired.Land needed for embankment construction would be acquired by BWDB

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with the assistance of the Deputy Commissioners in charge of theproject districts (para 4.11).

(b) Civil Works (US$13.6 M) would include embankments, regulators,hatchery facilities, office and residential buildings. Allstructures would remain the property of BWDB or PIU. The civilworks for embankments and regulators would be procured by the BWDBField Divisions in Cox's Bazar and Khulna districts. Contracts tobe awarded would be small (for example, not more than two mainregulators costing about US$175,000 each would be included in onecontract) and locations dispersed over the project area. Theywould also be spread over an implementation period of five years.Thus, civil works prcCurement would not be suitable for ICB.About 75 contracts would therefore be awarded following LCBprocedures which IDA has reviewed in the context of on-goingprojects in the agricultural sector and found acceptable. Theywould include the supply of construction material. Tenderdocuments and bid evaluations for the first contract for each typeof civil works (earthworks, regulators, buildings), as well as foreach contract exceeding US$200,000, would be reviewed and approvedby IDA before bids are invited and awarded. For all other works,bid evaluation reports together with the contracts would befurnished to IDA before reimbursement is sought.

Cc) Equipment (US$1.3 H) would contain: (i) boats and vehicles; and(ii) office and miscellaneous equipment. Wherever possible,vehicles and boats would be procured in bulk following ICBprocedures. For procurement under ICB a preference limited to 15%of the CIF price or the prevailing customs duty, whichever islower would be extended to local manufacturers in the evaluationof bids. Items which cannot be grouped together and costing lessthan US$100,000 for each contract, but not exceeding an aggregateamount of US$500,000, would be procured following LCB procedures.Items costing less than US$10,000 for each contract, but notexceeding an aggregate amount of US$100,000, would be procuredafter soliciting prices from at least three independent suppliersin accordance with procedures acceptable to IDA. Tender documentsand advertising procedures for all ICB procurement would bereviewed by IDA before bids are invited, and bid evaluations wouldbe approved before contract award.

(d) Consulting Services (US$2.6 H) financed by UNDP would beprocured by IDA as Executing Agency in accordance with WorldBank principles and procedures.

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DISBURSEMENT

3.29 IDA Credit disbursements would cover:

(a) 90% of contract expenditures for civil works (includingconstruction materiaL, engineering and supervision ofconstruction);

(b) 100X of foreign expenditures on directly imported equipment,100% of the ex-factory price of equipment manufactured withinthe country, or 70% of local expenditures;

(c) 80% of amounts reimbursed by BB against PCI subloans for all typesof investments. Disbursement against expenditures in additionalareas would be subject to IDA's approval of their selection(para 3.05);

(d) of incremental salaries and equipment operating costs of PIU,including DFTCs, PIU hatcheries, and BWDB Field Divisions createdfor project implementation:

AggregateDisbursement Disbursement Limit

z US$ M

95 1.080 1.360 1.740 2.0

3.30 Full documentation would be sent to IDA in support of withdrawalapplications for items (a) and (b) above except for small civil works con-tracts costing less than the equivalent of US$20,000 each. For small civilworks contracts and for items (c) and (d), withdrawal appLications wouLd besupported by certified statements of expenditure. Full actual documentationwould be retained by PCIs for item (c) and by PIU a.zd BDB for item (d) at acentral location and made available for review to IDA representatives onrequest. In addition, this documentation would be subject to audit.

3.31 The estimated schedule of IDA disbursements is given in Annex 6.The disbursement profile reflects the anticipated sequence of sub-projectimplementation modified to take account of the experience with the OxbowLakes (Fisheries I) Project (Cr. 890-BD) and the trend in regional disburse-ment profiles for fisheries and irrigation projects. The profile is alsobased on the assumption that disbursements for work done in a quarter wouldbe completed in the next quarter. Disbursements against subprojects in thequarters ending March 31 and June 30 would be large. This pattern is due toconcentration of civil works in the six-month period from October to March.

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Project Special Account

3.32 Project works are to be carried out by a large number of smallcontractors whose efficiency often depends upon the speed at which theyreceive payment for completed work. In the past, payments were frequentlydelayed on BWDB projects due to the long delays in transferring funds fromthe BIDB head office to the field divisions. Such delays mainly arise fromlack of funds within BWDB and occasionally affect payments for staff salariesand operating costs. Difficulties are accentuated even more in the case ofproject units operating within DOF, such as the one operating the Oxbow LakesFisheries Project. To remove these impediments, i.e. to facilitate payments,to ensure availability of funds and to reduce the number of withdrawalapplications submitted to IDA, a Project Special Account (PSA) would beestablished in the BB into which periodic IDA payments would be made. The BBwould subdivide this account into two sub-accounts, one to be used by PIU andone by BWDB. Assurances were obtained at negotiations that, in operatingthe PSA, PIU and BWDB would follow procedures satisfactory to IDA. An ini-tial deposit of US$1.6 M (US$0.5 M for the PIU and US$1.1 M for the BWDBsub-account) representing four months of IDA-financed expenditure would bemade.

Accounts and Audit

3.33 Both PIU and BWDB would maintain adequate records to identifyphysical progress and financial transactions relating to the project. Forthe PIU hatcheries and the DFTCs which would engage in commercial activitiesan accounting system in accordance with normal commercial practice would beestablished. Separate accounts would be kept for all expenditures for whichcredit withdrawals would be made on the basis of statements of expenditure(para 3.30). Auditors acceptable to IDA would audit the project accountseach year. The auditors' report would be sent to IDA within nine months ofthe close of each fiscal year. It would include an opinion as to whether theCredit funds disbursed against statement of expenditure have been used forthe purposes for which they were provided. Currently, BWDB's accounts areprepared separately for each project and are audited by its internalDirectorate of Audits and the Government Auditor General, while DOF accountsare audited only by the GOB Auditor General. This procedure is satisfactoryto IDA. Assurances were obtained during negotiations that the accounting andauditing requirements outlined above would be met.

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IV. ORGANIZATION AND MANAGEMENT

IMPLEMENTING AGENCIES

4.01 The Ministry of Fisheries and Livestock wilL have overall respon-sibility for implementing the proposed project through DOF in the FisheriesDivision. DOF will create a Project Implementation Unit (PIU) to overseephysical implementation and coordinate the activities of the other agenciesinvolved in project implementation. The District and Upazila FisheriesOfficers will be responsible at the regional level for coordination ofproject activities with other activities in the fisheries subsector. Maintasks of PIU in direct project execution wiLl be: (i) administering andsupervising the project's financial management, procurement, and constructionfor DFCTs and PIU shrimp hatcheries and office and residential buildings(paras 3.15-3.16 and 3.18); (ii) coordinating BWDB's construction of embank-ments and regulators (para 3.10); (iii) supervising consulting activities(para 3.19); (iv) operating and maintaining two DFTCs, one in Cox's Bazaraikd one in Khaliganj (Khulna division), for training extensionofficers/agents and shrimp farmers in advanced shrimp-farming technology(para 3.18); (v) establishing and maintaining an SCES for disseminatingtechnology at farm level (para 3.16); (vi) constructing and operating twoshrimp hatcheries (para 3.12) to supply shrimp farmers in the project areawith shrimp seed and to demonstrate the commercial viability of hatcheries toencourage private sector investment; (vii) monitoring progress in projectimplementation and trends in the shrimp market, conducting baseline surveysand evaLuation studies to monitor project impact and preparing quarterly andannual progress reports for submission to DOF and IDA; and (viii) proposingareas for long-term saline water intake permits (SWIPs) that would authorizeBWDB to open sluice gates of specific farm blocks for the intake of salinewater. Assurances were obtained at negotiations that DOF or another depart-ment or agency of GOB will be given the authority to grant to shrimp farminggroups or individual shrimp farmers: Ci) SWIPs for land within the mainproject area (para 3.06) and the additional project areas (para 3.07); and(ii) long-term Leases for government-owned land in Rampur at fees which willbe set at levels corresponding to market rates.

4.02 In view of its experience in constructing and maintaining coastalembankments, BWDB will, in close coordination with PIU, be responsible forthe procurement of all civil works that are financed as public investmentsand remain in BWDB's property, e.g. peripheral embankments and regulators.In keeping with BWDB's experience that one Field Division can handle Tk 40 M(US$1.3 M) of contract work annually, two separate Field Divisions, eachheaded by an Executive Engineer (EE) and under the supervision of a regionalsuperintending engineer will be set up (paras 4.11-4.12) within the existingorganizational structure of BWDB (Chart 27229). To ensure that structuresare functional for intensified shrimp culture, final detailed designs willbe approved by PIU. PIU will sign construction acceptance certificatestogether with BWDB. BWDB will further be responsible for: (i) approving the

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selection of and the proposed civil works in the additional project areasunder application of the criteria set out in Annex 7; (ii) operating theproject structures, once they are completed, under the instructions of theOperation and Maintenance (O&M} Committee previousLy known as Sluice GateCommittee (paras 4.12-4.13); (iii) carrying out the annual O&M works, thecost of which, based on BWDB estimates, will be separately budgeted by GOB;and (iv) acting as collection agent for direct recovery charges (para 6.06).Assurances were obtained during negotiations that: (i) BWDB will beauthorized to perform the above tasks; (ii) BWDB wiLl prepare and submit toGOB annual O&M work plans and budget requests; and (iii) GOB will, eachyear, allocate and disburse adequate budgetary funds for project related O&Mworks to BWDB.

4.03 BS will enter into a Subsidiary Loan Agreement with GOB and intoParticipation Agreements with the PCIs in which the terms and conditions forsubloans to be made by Bangladesh Krishi Bank (BKB), Sonali Bank and suchother PCIs as may be agreed by GOB and IDA (para 2.27) and for refinancing byBB will be laid down. Additionally, BB will develop and submit to IDA forapproval a banking plan that will contain details on the specific roles ofthe PCIs in establishing and maintaining a supervised credit scheme in theproject area. The signature and execution of Subsidiary Loan Agreement,Participation Agreements and Banking Plan, all satisfactory to IDA, will beconditions of Credit effectiveness. The PCI staff will be responsible forfield appraisal (assisted in technical matters by the shrimp-culture exten-sion officers), execution of subloan agreements, supervision of loan utiliza-tion, and recovery of principal and interest. To perform these tasks effi-ciently, the PCIs will staff their branches at the Upazila level in theproject area with a quaLified branch manager and at least one loan officer ofclass I-officer level.

4.04 IDA would be Executing Agency for the UNDP financed PRTA component(paras 3.19-3.20) and as such would be responsible for: (i) the preparationof a project document for approval and signature by GOB and UNDP; (ii) therecruitment of consultants for PIU including the subcontracting of counter-part local consultants; and (iii) the supervision of consulting activities.

4.05 Other agencies and institutions with a limited role in projectimplementation will be the following: (i) the Fisheries Section of theAgricultural Division of the Planning Commission which plays an importantrole in fisheries planning will have to zpprove the project; (ii) theForestry Department will plant mangrove on strips outside the new embankmentsconstructed under the project; (iii) the Bangladesh Rice Research Institutewill carry out soil analyses and on-farm trials in Polder 20; (iv) the Direc-torate of Agricultural Extension and Management (DAEM) will be responsiblefor agricultural extension in Polder 20; and (v) a PIU representative wouldparticipate in the District Coordinating Committee meetings chaired by theDeputy Commissioner (DC). The Upazila Nirbahi Officers (UNO) who are chiefadministrative officers at the Upazila level, are members of this committee.

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In this way, PIU can request the assistance of the local authorities inspecific project matters and, vice versa, receive a feedback from localgovernment.

PHASING OF IMPLEMENTATION

4.06 The expected phasing of implementation for the entire project isdetailed in Chart 27230. The sequence and description of essential events isoutlined below in paras 4.07-4.13. More detailed information about implemen-tation aspects is in the Project File (Annex 8).

4.07 The approval by GOB (Planning Commission and NationaL EconomicCouncil) of the two Project Proforma (PPs), one drafted by DOF, the other oneby BWDB will be a condition of Credit effectiveness. The PP containing theDOF part will authorize the creation of PIU with the staff oositions listedin Annex 7, Table 1; staff appointments will be made according to theschedule indicated there. The appointment or designation of key projectstaff such as the heads of PIU, of BWDB's Field Divisions and of the SCESwould also be a condition of Credit effectiveness. Positions for supportstaff would be created and staff recruited in accordance with actual require-ments. Projections of these requirements are in the Project File (Annex 8).Assurances with respect to the establishment of PIU and the recruitment ofstaff were obtained during negotiations.

4.08 The first and most important task for the success of the projectwill be DOF setting up the SCES in the form of three Mobile Extension Units(MEUs), one in the Khulna and two in the Cox's Bazar area. In the earlystages of the project, extension staff will have to be trained inshrimp-culture practices. The MEUs, in cooperation with the Monitoring andEvaluation Officer and the NGO staff (para 4.09) will undertake a baselinesurvey in the project areas. The survey is expected to provide more detailedinformation on: (i) social and economic structures of the shrimp-farmingcommunity; (ii) organization and management of the shrimp farms; and(iii) technological development of shrimp farming at the farm level. Suchinformation is essential to PIU for: (a) planning physical implementation ofthe project; (b) monitoring and evaluation; (c) formulating the DFTCs' demon-stration and training programs; and (d) devising MEUs' field extensionstrategies. The survey results will also be useful for the work of the NGOin organizing shrimp-farming groups. Following the survey, the main tasksfor the MEUs will be to render technical assistance to shrimp farmers in:improved water management, land preparation, shrimp raising, harvesting andmarketing practices; planning and constructing partition dikes and sluicegates to be finianced with medium-term credit in both the main and the addi-tional project areas; preparing loan applications for and supervision of theimplementation of farm improvement credit; and business management of shrimpfarms. PIU technical assistance to rural entrepreneurs in shrimp-hatcheryconstruction and operation will start as soon as the viability of hatcheriesis demonstrated by PIU.

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4.09 Consulting services financed by UNDP would be procured by IDA onbehalf of COB (para 4.04). A draft Project Document will be forwarded toUNDP and, upon appointment of IDA as Executing Agency, the terms of referenceand shortlists of consultants will be discussed with COB. Approval andsignature of the UNDP Project Document by GOB and UNDP will be a conditionof Credit effectiveness. The contract for the PIU consultancy would benegotiated and signed soon after Credit signature so that work can startsoonest after Credit effectiveness. The PIU consultants will have fullresponsibility for project-specific training of subject-matter specialistsin the fields of: (i) shrimp farm management; (ii) shrimp fry production;(iii) shrimp and fish marketing; and (iv) design of on-farm structures. Theywill also preparc course material for the training of extension officers andparticipate in their initial training, which subsequently will be carried outby DFTC managers, the Assistant Director Extension and, in their respectivespecialization, by the SMSs. Assurances were obtained at negotiations thatall training activities will be implemented in accordance with a trainingplan to be submitted to IDA for comments by December 31, 1986 and to beupdated annually by December 31. Other tasks for the consultants will berendering assistance and technical advice to PIU and BWDB in all matters ofproject implementation and coordination. Their manpower deployment wouldstart as soon as possible after Credit signature, reach a peak in PY2 and PY3and level off slowly in PY4 and PY5. The terms of reference for the PIUconsultants showing their scope of activities and phasing of field work, arein the Project File (Annex 8). The PIU consultants will subcontract withlocal consultants, preferably an NGO, for the field work related to theformation of shrimp-farming groups. The consent of all farmers in one shrimpblock will be needed before the detailed engineering for peripheral embank-ments and regulators can be finalized. Farmers not wanting to participate inshrimp-culture activities would be offered equitable lease arrangements.Farmers' land which, despite the considerable gains in income with theproject (para 6.04), is not released for shrimp culture, would be excludedfrom participation in the project through appropriate rearrangement of exter-nal or internal embankments. The grouping would entail frequent meetingswith farmers, farmers groups and Union and Upazila representatives and isexpected to take up to nine months for each polder. Local consultants,assisted by PIU in technical matters, would be more suitable than civilservants for this type of field work which requires a high degree of impar-tiality, motivation, and presence in the area. The local consultant wouldhave field units working simultaneously in three to five polders and wouldshift to another polder as soon as the work in one polder is completed andimplementation of civil works can start. They are expected to deploy 12 m/mof managerst services (with expertise in rural sociology and development),30 m/m for field supervisers', and 270 m/m for field agents in each ofPY2-PY4. Manpower input would be about one quarter of this level in PY1 andone half in PY5. Detailed TOR are in the Project File (Annex 8).

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4.10 In close coordination with PIU, BWDB will be responsible for theprocurement of civil works, mainly peripheral embankments and regulators frommodification of detailed design through tendering and contract award tosipervision of construction. The required Field Divisions and staff posi-tions listed in Annex 7, Table 1 will be created with the approval of the PPbefore Credit effectiveness. Appointments to these positions will be madeaccoiding to the time schedule indicated in Annex 7 and drawing upon existingBWDB staff or new recruits. For the purpose of reimbursement of incrementalstaff salaries (paras 3.16-3.17), all incumbents of these positions and thesupport staff working full or part-time on project implementation would becounted as incLemental. Salaries of part-time staff will be eligible forreimbursezent in proportion to their contribution. Details on the estimatednumber of support staff required are in the Project File (Annex 8). Thestaff of tte Field Divisions would be transferred to other units afterproject completion.

4.11 BWDB will coordinate with PIU's Director, the PIU consultants andtheir local counterparts to ensure that the views of farmers' groups aretaken into account in modifying, if necessary, the detailed design forperipheral embankments and flushing-cum-drainage channels. The land acquisi-tion procedures (Annex 7, Table 2), which usually take considerable time,should be started by BWDB, on the basis of the existing detailed design,immediately after Credit signature. The Deputy Commissioners in the projectareas would be involved at the stage of making cost estimates, issuing"Notices of Intent to Acquire", holding hearings and administration of funds.Procedures would be finalized as soon as the group formation for oneshrimp-farming block is completed. Modifications of the existing detailedengineering (para 3.06) would be done by BWDB's Design Division in Dhaka oron contract by local consultants. Funds for engineering amendments onembankments and regulators have been included in the cost estimates. Also,incremental staff salaries would be eligible for reimbursement under theproject (para 3.17). Assurances were obtained at negotiations that BWDBwill: (i) set up two Field Divisions as outlined above (para 4.10);(ii) coordinate with the PIU Project Director, the extension staff and theconsultants; (iii) take over the responsibility for land acquisition, i.e(a) submit land acquisition plans to the concerned Deputy Commissioners atleast nine months before the land is needed for construction, (b) provide tothe concerned Deputy Commissioner the funds, equipment and staff necessaryfor verification and approval of land acquisition pLans, and (c) undertakethe steps necessary to have the land required for the construction of embank-ments in the Rampur sub-area transferred; (iv) modify detailed design, ifnecessary; (v) take over all other work related to construction of shrimpinfrastructure; and (vi) review and approve the selection of and theproposals for civil works in the additional project areas.

4.12 The structures built by BWDB and the land on which they are builtwill remain the property of BWDB. Equally, the existing BWDB structures inthe additional areas will remain its property. The operation of the

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BWDB-built regulators will be the responsibility of BWDB staff under theinstruction of the O&M Committee that will be established in eachshrimp-farming block when the shrimp-farming groups are constituted. Commit-tee membership will incLude:

(i) Sectional Officer, BWDB (Chairman)

(ii) Shrimp Culture Extension Officer, PIU (Secretary)

(iii) Chairman, Union Parishad (Member)

(iv) Member, Union Parishad (Member)

(v) Two or more representatives of shrimp-farming groups (members)(depending on the number of groups in cne block)

(vi) Two or more representatives rice/salt farmers (members)(depending on the number of groups in one block)

(vii) Other members from the PCIs, the Land Administration and LandReform Department or other institutions, as deemed necessary.

4.13 The O&M Committee will represent one shrimp-farming block, eachincluding two or more group shrimp farms and have the following main tasks:i; assist in all matterz related to land use and land leases in the area;(ii) determine the dates for start and end of the shrimp/paddy or shrimp/saltseason; (iii) advise BWDB on necessary maintenance work; (iv) assist BWDB incollection of direct recovery charges; (v) assist PCIs in loan recovery; and(vi) all other matters which have a bearing on the relationship of shrimpfarmers to PIU, BWDB and GOB. Assurances were obtained at negotiations thatPIU, assisted by BWDB, will be responsible to set up the O&M Committees asdescribed above.

MONITORING AND EVALUATIOK

4.14 A Monitoring and Evaluation (M&E) Cell in PIU and its M&E Officerwill have responsibility for M&E of the project. Monitoring would cover twodistinct phases: start-up and construction, and regular operation. Annualwork programs and budgets would be prepared by both BWDB and PIU. PIU wouldwork out the program for all project activities and submit it to IDA forreview by May 31 for the following fiscal year. PIU would monitor projectprogress during constr:mction and start-up through monthly, quarterly andannual progress reports to be prepared and submitted to IDA by PIU's M&ECell. These reports wouLd include all relevant data on physical and finan-cial progress and would explain deviations, if any, from targets set underannual work programs. As soon as the farm blocks would enter the operationalphase, progress reports would include detailed production data and theircomparison with project projections. PIU's M&E Cell would also monitor price

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and market trends at international markets, processor and farm-level. TheSCES would use such information to advise shrimp farmers on the product mix.Assurances were obtained at negotiations that PIU's M&E Cell will undertakeand coordinate all M&E activities.

4.15 M&E of agricultural aspects in the paddy/shrimp rotation inPolder 20 would be essential. In Polder 20 transplanted paddy is tradition-ally grown on 1,430 ha from August to December. After harvest the same landis used for producing shrimp. Farmers so far have not reported adverseeffects on the yield of paddy under this rotation. They grow, however, localvarieties which are more :olerant to salinity than HYV varieties. Farmers inthe area do not apply fertilizers, maintaining that silt deposited duringthe monsoon floods contains the necessary nutrients. However, this practicehas not yet been substantiated by soil and water analyses. Yields of paddycould be increased if fertilizers were applied and supplementary irrigationgiven during the dry season in October when salinity of river water is low.

4.16 The availability of supplementary irrigation and drainage would beensured under the project by new or existing water control structures. Thelevel of salinity of river water and soils in the polder would be monitoredto determine the long-term effects of shrimp production on paddy cultivation,by relating paddy yields to water quality and soil chemistry. Analysis ofsoil and silt to determine nutrient content would be undertaken regularly toascertain the additicnal fertilizer requirements, particularly nitrogen,phosphate, potash, sulphur and zinc. Yields of different paddy varieties inthe polder and on control plots outside the polder where shrimp-cum-paddyrotation is not practiced would also be monitored. The Bangladesh RiceResearch Institute (BRRI) would carry out the monitoring of soils, water, andyields of paddy under contract for a research subproject to be approved bythe Bangladesh Agricultural Research Council (BARC) which implements theAgricultural Research II project (IDA Credit 1455-BD). Within the firstthree months of the project, PIU would propose a research contract and submitit to the Council. The research subproject's recommendations would, afterassessment, be disseminated to farmers by DAEM staff. A ratio of one BlockSupervisor for not more than 500 farm families would be maintained by DAEM.Assurances were obtained during negotiations that arrangements would be madeto carry out the monitoring program during and after the project period in amanner satisfactory to IDA.

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V. PRODUCTION, MARKETING AND PRICES

PRODUCTION

5.01 Incremental production of the project would consist of exportableshrimp, miscellaneous fish and shrimp, paddy and juvenile shrimp producedin the main project area. Incremental exportable shrimp production isprojected to consist of 75% of Black Tiger Shrimp species of the 21-25shrimp/lb count (headless). Indian White Shrimp of the 26-30/lb count wouldcontribute 10% and freshwater shrimp of 26-30/lb size would account for theremaining 15%. At farm level production per ha in the shrimp/paddy and theshrimp/salt rotation (paras 2.14 and 3.06) is expected to increase forexporotable Black Tiger Shrimp from 51 kg to 188 kg at full development in thefourth year after investment, for exportable Indian White Shrimp from 7 kg to25 kg, for exportable freshwater shrimp from 10 kg to 37 kg and for miscel-laneous shrimp and fish from 100 kg to 350 kg. The largest part of thieincremental exportable shrimp production (48%) would stem from theshrimp/salt rotation in the Cox's Bazar area. The shrimp/paddy rotation inPoLder 20 would yield about 18% of incremental shrimp production. Theremaining 34% would be generated by shrimp monoculture in Rampur (paras 2.15and 3.06) where production of exportable qualities of Tiger Shrimp, WhiteShrimp and freshwater shrimp is expected to grow from 75 kg to 300 kg, 10 kgto 40 kg and 15 kg to 60 kg respectively. Incremental production would startin PY3 in Rampur and reach full development in PY9 with 1,478 tons head-onexportable shrimp with an FOB value of Tk 260 M (US$8.7 M) in constantNovenber 1985 prices. This is equivalent to 14Z of the total shrimp exportvalue in 1982/83 or to about 40% of the estimated value of aqua-cultureshrimp exports. Aggregate incremental production of miscellaneous fish andshrimp consumed on the farm or sold locally would also start in PY3 and reachits full scope of about 1,840 tons valued at Tk 46 M (US$1.5 M) in PY9. Thisis not a quantity significant on the national level, but it will contributeto improve nutritional standards in the project area.

5.02 Due to increased agricultural extension efforts, a small increasein production of local paddy varieties (paras 4.15-&.16) of 114 tons at fulldevelopment is projected for Polder 20 and 20/1. Representative farm modelsfor shrimp in rotation with paddy and salt (no incremental salt production isenvisaged) as well as shrimp monoculture are in the Project Fil>. (Annex 8).

5.03 Under the project 11 hatcheries would be financed, of :which twowould be constructed and operated by PIU and nine by private investors.Their production would starL in PY2 with 10 M juveniles and build up to 110 Mjuveniles in PY6 and thereafter.

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MARKETING

5.04 The incremental production due to project investments would comefrom shrimp farms and hatcheries. The farms would produce exportable shrimpfor the international market while miscellaneous shrimp and fish as well aspaddy would be produced for the local market. The juvenile shrimp producedby hatcheries, both public and private, would be sold at market prices(para 5.07) to shrimp farmers either within or outside the project area.Black Tiger and Indian White Shrimp of exportable quaLity would primarily besold to Japan and to a lesser extent to the USA, while exportable freshwatershrimp would be sold to traditional markets in Europe. Export would be inheadless, block-frozen form. This corresponds to the current trade pattern.

5.05 Import demand and prices on these markets are considered favorablefor the near and medium-term future. Export marketing of project outputshould not face any demand constraints provided that adequate hygienic stand-ards are raintained. Bangladeshi shrimp had experienced problems of accept-ance by the importing countries in the late 1970s up to 1981 when theprocessing industry expanded rapidly. These problems have now been overcome.Relations between Bangladeshi exporters and importers in Europe, Japan andthe United States have developed, based on mutual interest in maintaininggood quality standards; well established processors are not expected tosuffer from discrimination on export markets.

5.06 The incremental export of headless shrimp of about 890 tons gener-ated by the project, equivalent to 8% of t!he volume of current Bangladeshshrimp exports (1982/83) and less than 0.4Z of the world trade volume, wouldbe readily absorbed by the international market. The existing processingindustry suffers from severe under-utilization of capacity and could easilyhandle the increased volume of shrimp (para 2.16). Capacity utilizationwould increase by about 1.5%. Processors normally buy shrimp through commis-sion agents, who in turn buy from shrimp traders. The latter are located inthe producing areas and buy at farm level either directly or from anotherlayer of smaller traders. Competition seems to maintain marketing margins atacceptable levels. After a 'irst grading according to size, shrimp would bebought head-on at the farm Level and transported in baskets either as head-load or by bicycle or by small boat to the traders' headquarters where theshrimp would be decapitated, graded again, and put on ice in larger transportbaskets. Hygienic standards are low, particularly at this level, and thereis a need to step up the awareness of hygienic problems among all par-ticipants of the collection chain from the farm level upwards. Iceoriginates from commercial ice-plants often many miles away. Ice supply andprices are often a bottleneck and subject to complaints by the trading com-munity. Transport from traders to the commission agent, to the collectioncenter or the processing plant would be by small truck or by boat, varyingwith location and season. Project investments would contribute to improvinghygiene and quality, partizllarly in the early stages of product handling.To achieve this objective the project's credit component finances ice making

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plants and more hygienic handling facilities such as insulated transportcontainers. Short-term consultancy services of a marketing expert who couldassist in training PIU's shrimp culture extension officers would also beavailable.

PRICES

5.07 Export parity prices for exportable Black Tiger Shrimp used ineconomic and financial analysis are shown in Annexes 3 and 4. They are basedon the assumption of a 0.5% increase in real CIF prices in the main importingcountries up to 1990/91 and of constant real prices thereafter. As a start-ing point, recorded October 1984 CIF prices were used and compared withshrimp prices existing at appraisal at farmngate, trader, commission agent andprocessor level. The 0.5% increase in real prices conforms with the resultsof a recent FAO study which forecasts medium-term prices in the light of pastand expected trends of production and demand. The miscellaneous shrimp andfish produced in shrimp ponds are valued at the current farmgate price,without a change in real prices in future. Since this fish and shrimp isonly sold locally, the economic price was derived by multiplying the finan-cial price with the SCF of 0.8. The financial price of incremental paddyproduction has been valued at current market prices while its economic priceis projected as an import par_ty price following August 1985 price forecasts.The price for hatchery produced juvenile shrimp has been assumed to remain ata level equivalent to the price paid for naturally collected shrimp fry,taking into account the higher survival rate of hatchery produced juvenileshrimp which results from the fact that all shrimp fry would be at an identi-caL stage of growth. Once the hatcheries have established a reputation forthe supply of high quality f- it is possible that prices would go up toreflect a quality premium and thus improving their profitability. Financialprices for unskilled labor are current market prices and the SCF has beenused to convert them to economic ones. The Opportunity Cost of Capital (OCC)is estimated to be equivalent to 12% interest per annum. The economic andfinancial prices detailed in the Project File (Annex 8) are summarized beLow:

Financial Farm Economic FarmLevel Prices Level Prices

Commodity (Constant November 1985 Tk) (Constant November 1985 Tk)1985/86 1990/91 1985/86 1990/91

Exp. Tiger Shrimp (kg) 153 157 164 169Exp. White Shrimp (kg) 134 137 144 149Exp. freshwater shrimp (kg) 64 66 72 74Misc. fish and shrimp (kg) 24.9 24.9 19.9 19.9Local paddy (ton) 5,698 5,698 4,324 6,350Salt (ton) 427 427 342 342Unskilled labor (manday) 27 27 21.6 21.6Juvenile shrimp (000') 227 227 182 182

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VI. BENEFITS AND JUSTIFICATION

BENEFITS, BENEFICIARIES, AND EMPLOYMENT

6.01 The iajor quantifiable benefits would be the annual incrementalproduction of about 1,500 tons of head-on exportable shrimp and about1,800 tons of miscellaneous shrimp and fish (para 5.01) on the main projectarea of about 7,000 ha. Other tangible benefits that were taken into accountin the financial and economic analysis are the production of juvenile shrimpin the project hatcheries (para 5.03) and the incremental production of somepaddy (para 5.02). These benefits would result in increased net incomes tofarmers and would be brought about by improved water management andshrimp-farming cechnology disseminated by the shrimp-culture extension serv-ice. The export of shrimp would, at full development, generate foreignexchange earnings of about US$8.7 H per annum, in November 1985 prices.

6.02 Additional benefits expected from project investments include thefollowing: (i) production increases from additional project areas (para 3.07)which are roughly estimated to be 15 kg per ha for exportable shrimp and 40kg per ha for miscellaneous shrimp and fish, resulting in total incrementalproduction of about 40 tons and 100 tons respectively; (ii) productionincreases induced by the demonstration effect of project activities on shrimpfarms not directly touched by the project and the future effect of the SCES;(iii) additional production generated by realigned policies on regularizedsaline water intake and replacing short-term by long-term leases of govern-ment land for shrimp culture in areas outside the project; (iv) institutionalimprovement Ln DOF; (v) additional shrimp production generated in non-projectareas by hatcheries established in the private sector; (vi) value added inquality shrimp production through improvement in marketing arrangements, aswell as in hygienic conditions for handling and transport; (vii) benefitsgenerated by slowing the depletion of juveniLe shrimp resources in coastalareas through availability of juveniles for shrimp culture from hatcheries;and (viii) income generated through better capacity utilization in theprocessing industry. These benefits have not been incorporated in theeconomic or financial analysis.

6.03 While the country as a whole would gain through an improved tradebalance, the main beneficiaries of the income increase would be the land-owning farmers in the project area. With farm-holdings in the main projectarea averaging 1.9 ha, a total of about 3,700 farm households with 22,000people would benefit directly from project investments. Under the projectthe direct participation of small landowners in group shrimp farmingactivities would be encouraged. Employment would be generated: first, viarequirements for permanent labor needed to staff PIU, carry out O&M work,and operate hatcheries; and second, via requirements for transitory labor forconstruction activities. Generation of permanent employment would be small

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because no additional labor is required to intensify existing shrimp cultiva-tion. Compared to the existing situation, improved shrimp culture wouldrequire more labor for harvesting and handling shrimps, but there is compen-sation by decreases in labor demand for maintaining embankments andregulators. About 1,000 job opportunities would be generated for O&M ofcivil works for PIU, including hatcheries and DFTCs and the privatehatcheries. Transitory labor requirements would amount to a total of about33,500 man-years resulting from construction of embankments (10,200),regulators (11,500), buildings (3,000), on-farm civil works (7,800), andtemporary PIU and BWDB employment (1,000).

FARM INCOME AND FINANCIAL ANALYSIS

6.04 Illustrative farm budgets (Project File, Annex 8) have beenprepared for typical shrimp farms. In the case of the shrimp/salt andshrimp/paddy rotation these would be group farms covering 30 ha beLongingto an average of 16 land owners. During the shrimp season the land ownerswould run the shrimp operation jointly or have partnership arrangements withothers. During the salt and paddy season, they would farm the land as beforethe project. rn Rampur, the typical monoculture farm has 40 ha and is run bypersons leasing the land from DOF. The farm budgets contain: (i) crop modeltables showing per ha yields and inputs, and financial budgets; (ii) farmmodels combining the various crops on a farm with production, inputs andfinancial budgets; and (iii) labor requirements. It is assumed that all ofthe unskilled labor is available in the form of family labor which is notcosted. However, this has no effect on the financial rate of return as noincremental labor in the "with project" situation is required for shrimpculture. All tables show the "without" and "with project" situation, as wellas increments; they contain figures on estimare! home consumption and onexpected medium- and short-term credit financing aad are available in con-stant prices of November 1985 and in current orices. They indicate that thenet cashflows after financing remain pos-tive in all cases. Details onprojected farm incomes for the three farm models, summarized below, are inAnnex 5, Tables 1-3.

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Net Farm Incomes before Financing (Constant November 1985 Prices)

per ha per Operating Unit per HouseholdWithout With Without With Wichout WithProject Project Project Project Project Project

…--- ---- 000---…--

30 ha Group Farmwith Shrimp/PaddyRotation 18.0 41.9 539.6 1,258.1 33.7 78.6

30 ha Group Farmwith Shrimp/SaltRotation 17.4 41.1 522.7 1,234.3 32.7 77.1

40 ha Farmwith ShrimpMonoculture 9.2 44.0 369.9 1,761.9 N.A. N.A.

The figures indicate that incomes are expected to rise by 1332 in theshrimp/paddy rotation, by 136Z in the shrimp/salt rotation and by 376Z inshrimp monoculture. The difference between the shrimp/paddy and theshrimp/salt mode stems from the slightly better profitability of paddy ascompared to salt. Income from shrimp production is identical in the twomodes. The sharper increase in income from shrimp monoculture is due to thelower annual per ha income in the 'without project" situation. This in turnis a result of the cost of shrimp production in the monoculture model beinghigher than in the other one due to lease fees and annual maintenance cost.

6.05 Financial analysis was undertaken for the three shrimp productionmodes for typical 30-ha group farms practicing the shrimp/paddy orshrimp/salt rotation and a 40-ha farm for shrimp monoculture. Financial rateof return (FRR) calculations and sensitivity analysis are in Annex 4. Forthe purpose of FRR calculation only on-farm investments are treated asinvestment cost. The major structures financed by public investment arereflected in the item "infrastructure charge" in the operating costs of thefarm budget. These charges would be payable by the investors starting at theend of the record shrimp season following the investment. They are calcu-lated to cover full O&M costs and achieve recovery of 9% of GOB investment ininfrastructure (para 2.19). The effects of the export cess are reflected inslightly reduced producer prices. The FRR for each of the three modelsexceeds 50%. They are very high because the major infrastructure is financedwith public finance (para 2.19) and the effects of the cost recovery scheme(para 6.06) in FRR calculations are mitigated because: (i) cost recovery feescan reasonably be levied only after benefits from the public investments havestarted to flow, i.e. in the third project year; and (ii) costs of institu-tional support are not included in the recovery scheme. Switching values

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indicate that the FRR is very robust in each case (Annex 4). They are moresensitive to changes in benefits than to changes in costs, and are in theorder of -60% for benefits and over 150X for costs. The FRR of thehatcheries is expected to be 30%, switching values being -37% for benefitsand 59Z for costs.

COST RECOVERY

6.06 Given the expected high financial returns to farmers, investmentand O&M costs of embankments and regulators built, maintained and operatedwith public funds would be fully recovered. During negotiations assuranceswere obtained that:

(i) Direct recovery in the form of a betterment levy or licensing feefor salt water intake would be enforced and coLlected from thebeneficiaries in the main project area. Collection in eachpoider would commence at the end of the second shrimp harvestafter the facilities constructed or provided under the projecthave started to operate. Direct recovery charges would be leviedat the rate of current term Tk 1,500/ha/year (equivalent toconstant November 1985 US$35) starting in FY89, increase toTk 2,500/ha/year (US$45) in FY92 and to Tk 3,500 (US$56) in FY94.Thereafter the charges would be inflation adjusted every secondyear. These direct charges cover full O&M and 9% of investmentcosts.

(ii) Indirect cost recovery in the form of an export cess would recoverthe remaining investment cost. The cess would start at the rateof 0.4Z of the FOB value of all shrimp exports of the country inFY89, increase to 0.7% in FY91 and to 0.9% in FY93 and thefollowing years.

(iii) Direct and indirect recovery rates could be modified by agreementbetween IDA and GOB, taking into account incremental income andyield levels of shrimp farming obtained under the project,provided such rates would be sufficient to achieve full costrecovery or such portion of it as IDA and GOB would agree. Fullcost recovery would include adjustments for inflation and a rateof return to GOB on investment of not less than 6Z.

ECONOMIC ANALYSIS

6.07 The economic rate of return (ERR) of the project is estimated at27Z. At a discount rate of 12%, the estimated opportunity cost of capital inBangladesh, the project's discounted benefits would be US$41 M, and thediscounted costs US$23 K, leading to a net present value in economic terms ofUS$18 K. Economic benefits and costs are expressed in constant November 1985prices. The aggregate streams for the ERR calculation are shown in Annex 3.

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6.08 In the economic analysis, it has been assumed that the project lifeis 20 years, with full production development reached in year eight. Unlessotherwise stated, residual values are 100% of the cost of land and 202 of thecost of civil works. Except for the cost of additional project areas allproject cost items, including the physical contingencies, are included in theeconomic analysis. Taxes and duties and price contingencies have beenexcluded. In cases where land had already been acquired, the market valueof its cost was introduced. Recurrent costs not accounted for in projectcosts, e.g. for hatcheries and demonstration farms, were added. For invest-ment items with a shorter than 20 year economic life, e.g. pumps, maintenancecosts have been set at levels high enough to ensure replacement. The finan-cial prices of local costs including wages are transformed into economicprices by applying an SCF of 0.8. For the economic analysis family labor hasbeen costed at the prices for unskilled labor indicated in para 5.07 whereincremental labor is required. Sensitivity anaLyses indicate that theproject remains viable under a variety of assumptions regarding costs andbenefits. As shown by the switching values (Annex 3), project benefits couldfall by 43% or lag five years before the ERR would fall below 12%.Similarly, project cost could rise by 76Z before the project would becomeunacceptable. The inclusion in costs of on-farm investment of additionalproject areas without adding potential benefits decreases the ERR to 24%.The project's low sensitivity to costs is about the same for investment andoperating costs. ERR for the total project is lower than FRR for theindividual investments because all cost of institution building are incLudedin the ERR calculation. Details of the economic analysis are in the projectfile (Annex 8).

ENVIRONMENT EFFECTS

6.09 The project would not have any detrimental effect on the environment.Intensification of shrimp culture under the project would only take place inareas where it is already practiced. Neither the existing land-use patternnor the present e'.oLogical balance wouLd be changed. Positive effects wouldbe achieved through: (i) elimination of salt water seepage into adjacentagricultural lanc by construction of appropriate boundary embankments; and(ii) efficient and timely water exchange to leach out salt from soils forpaddy cultivation in Polder 20. The further spread of extensiveshrimp-farming operations into agricultural and forest land would be coun-teracted by: (i) the project's contribution to realign GOB policies on saltwater intake and lease of public land; and (ii) demonstrating the financialrewards of intensified shrimp culture. The project would not cause harm toother riparian States nor would it be harmed by the use of water by suchother riparian States.

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PROJECT RISKS

6.10 There are various project risks. However, due to the robustnessof both the ERR (para 6.08) and the FRR (para 6.05), none of them wouldendanger the viability of the project as a whole or of individual projectcomponents. The two most important potential project risks in economic termswould be a substantial reduction in world market prices for shrimp or in theenvisaged shrimp yields. As to prices, the project would be able to absorb adecline in benefits of up to 43Z before it would become unacceptable. Thispercentage is higher than the price fluctuations experienced in the worldmarket since 1974 and, at present, there are no indications that the pricesof the species and counts of exportable shrimp produced by the projectbeneficiaries would face a substantial price drop on the main export markets(Japan, EEC) in the medium-term. As to the envisaged yields, the risk of notattaining them is small, because the technology for intensified shrimp cul-ture is simple and well developed and the planned production level is rela-tively low.

6.11 There would be some risks of inadequate or delayed implementation.These risks can, however, be reduced by good planning. Therefore, stepswould be taken to minimize these risks, e.g. by recruitment of PIU consult-ants. The on-going efforts to strengthen DOF (para 2.25) would also con-tribute to assure better policy support and improve institutionalcapabilities. Implementation slippage is frequently caused by inadequatepublic sector financing. While the financial capabilities of GOB will cer-tainly be strained, GOB has indicated strong commitment to the project whichshould be enhanced by the prospect that funds spent for the structures willfLow back through cost recovery. Shortages of public funds experienced inthe past would be overcome through the use of the PSA (para 3.32). Tneconstruction of shrimp farming infrastructure could be delayed due to cumber-some administrative procedures, slow speed in the formation of farming groupsand delays in land acquisition. However sensitivity analysis shows that theERR would drop to 22% if a two year lag in construction of shrimp cultureinfrastructure and related benefits occured. The risk of not achievingbenefits in the additional project areas as a consequence of inadequatestructures would be minimized through PIU's and BWDB's involvement in theselection of polders and their approval of civil works (para 3.05).

6.12 Other risks would be related to the occurrence of flooding andstorms. Enclosing embankments in the main project area are equal in heightto BIDB coastal embankments and it is estimated that their height gives 3 ftof free board over the highest river flood level that can be expected in a100-year period. The risk of over-topping is, therefore, very smaLl.Cyclonic storms, in addition to producing very high wind speeds, createsurges in water level which cause widespread damage and loss of life.However, the effects of a cyclone are local. A direct hit could be devastat-ing to the affected area, but is very infrequent. In Bangladesh, cycloneactivity is experienced once in 5-10 years. Only Polder 70, which represents

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18% of the main project area, has parts directly exposed to sea waves. Otherareas are much more sheltered and local wind drawn waves plus over-toppingwater levels would cause erosion, but rarely 100% destruction to embankments.Risks to regulators would be much smaller. Local failures could result intotal or partial loss of production. In estimating O&M costs, provision hasbeen made over and above normal O&M costs to replace 10% of embankment volumein seven years. Resulting crop losses of 50% in 10% of the affected areawould cause in two of 20 years of project life a 5% change of total benefits,to whtich the ERR is not sensitive.

6.13 The very intense rain storms sometimes experienced in the projectarea can cause over-topping and damage structures thereby interrupting thegrowth of the shrimp and reducing the crop. This risk is, however, not veryhigh, because it is possible to control the water level by operation ofgates. Damage from any single storm is expected to be confined to a verysmall part of the project area and repairs would be made quickly.

6.i4 The infrastructure is designed so that in eight out of ten yearstidal levels will be more than adequate to fill the ponds to desired levels.But in the two remaining years the production would have to be limited tothat attainable with a water level of 1.6-2.5 ft instead of 2-3 ft asdesigned. Production figures have been averaged accordingly.

6.15 Lack of maintenance would pose a risk. Embankments settle becausethey are built very crudely and on very poor soil. It is essential to main-tain them by adding earth to keep up their cross-sections. It seems unlikelythat slow settlement would be allowed to go so far as Eo endanger the shrimpcrop. The only maintenance require..ients for regulators is to keep the gatesin good condition to limit leakage losses. Maintenance of regulators issimple and should not create a special hazard.

6.16 Risks arising from technical design problems in the main projectarea are not very likely, because designs are simple and the same items arerepeated many times.

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VII. ASSURANCES AND RECOMMENDATIONS

7.01 During negotiations, assurances were be obtained from COB that:

(a) the selection of additional areas would take into account thecriteria specified in Annex 7, and proposals for their inclusionwould be submitted to IDA for approval (para 3.05);

(b) on-lending terms and conditions for loans from GOB to BB, from BBto the PCIs and from PCIs to beneficiaries would be as set out inpara 3.25, and laid down in a Subsidiary Loan Agreementbetween GOB and BB and Participation Agreements between BB andthe PCIs (para 4.03);

(c) DOF or another department or agency would be given the authorityto grant for the project area: (i) long-term saline water intakepermits (SWIP), and (ii) long-term leases for government-ownedland (para 4.01);

(d) BWDB would: (i) be authorized to operate project structures, and(ii) each year prepare and submit to GOB and O&M work plan andbudget requests, and perform ma, * nance as required(para 4.02);

(e) GOB would establish PIU, create staff positions, and recruit staffin a timely manner (para 4.07);

(f) PIU would carry out all training activities in accordance with atraining plan to be submitted to IDA for comments byDecember 31, 1986 and to be updated annually thereafter byDecember 31 (para 4.09);

(g) BWDB would create two Field Divisions, re it or designate stafffor them and take over the assignments including land acquisitionas outlined in paras 4.02 and 4.10-4.11;

(h) PIU assisted by BWDB would set up O&M Committees as described inparas 4.12-4.13;

(i) (i) By December 31, 1987 legislation would be enacted and allother measures be taken to set betterment levies and the exportcess at levels that would ensure full cost recovery, (ii) therecovery system would be implemented starting July 1, 1988,(iii) charges and levies would be revised every second yearthereafter to take account of actual investment and OEM costs, and(iv) recovery charges would be collected with due effort includingappropriate measures against defaulters, e.g. revoking of saltwater intake permits (SWIPs) (para 6.06).

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7.02 Conditions of Credit effectiveness would be: (i) approval by GOBof the two PPs for DOF and BWDB authorizing the creation of PIU and BWDB'stwo Field Divisions with the staff positions outlined in Annex 7, Table 1(para 4.07); (ii) signature of a Subsidiary Loan Agreement between GOB andBB, Participation Agreements between BB and the PCIs and Banking Plan, aLlsatisfactory to IDA (para 4.03); (iii) signature of a UNDP Project Documentfor the PRTA component by both GOB and UNDP (paras 4.04 and 4.09);(iv) appointment of key project staff (para 4.07); and (v) submission of abanking plan by BB to IDA (para 4.03).

7.03 With the above assurances the project would be suitable for an IDACredit of SDR 20.6 M (US$22.0 M) on standard terms.

-47-IBALADESH ANNEX 1

SHRIIP CULTIRE PROJECT Table 1Sudru Account, bh Year Page 1

(Tk '000)

Base Costs Forein Exchange

1 2 3 4 5 Total Z Amountur_=ruuu unnussts flSEEsas uWteuZt: UDrugtfl:urnmn:urt:aga :ue urreuuas

1. IIESTMENT COSTS

A. LAND ACQUISITION

SHRII FARMING IFR ASTRUCTURE 49016.5 7.171.9 11,035.4 7,880.0 - 3^0103.8 0.0 0.0PIU HATCHERIES - 136.0 - - - 1M1.0 0.0 0.0PIU BUILDINGS 84.2 337.8 33.5 - - 455.4 0.0 0.0

Sub-rotal LAND ACIGISITION 4t100.6 7.645.6 11,068.9 7i990.0 - 30,695.2 0.0 0.0B. CIVIL WIS

SHRI8P FAR1MIN INFRASTRUCTURE - 54,545.5 llp92.0 69t,,'9.9 8,412.8 244,740.2 15.3 37.390.2PIU HATCHERIES 266.6 9,479.7 100.0 - 9,848.3 19.1 1,779.0PIU DOSTRATION FARMS 4,74.1 6,530.6 463.5 - - 11,768.2 18.1 2.127.5PIU BUILDINGS 12,094.5 13p352.7 833.1 - - 26,2B0.4 17.8 4,66.'ENGINEERING AND DESIGN 3,271.4 4,612.6 3,299.7 1t958.6 13,142.3 0.5 66.0

Sub-Total CIVIL MORS 20,408.6 B8,521.3 116,6BB.4 71.74.4 8-412.2 3^5,779.4 15.1 46,029.1C. EQUIPMENT AND UVEICLES

HATCERY EDUIPIW - I419.9 - - - 1P419.? 46. £53.9_EMTRAIN FARM EQUIPMENT 1563.1 1,508.6 - - - 3,071.8 44.3 1.35?T4PIU OFFICE EQUIPMENIT 508M.5 2P179.1 - - - 7P268.6 17.0 19235.?PIU VEHICLES 2,246.9 5P604.5 - - 7,851.4 47.2 3,702.7PIU BOATS 106.6 1,188.3 - - - 1,294.9 15.0 522.331DB VEICLES 3,976.9 2i816.9 - 1,299.9 - 8,093.7 47.2 3,819.3BUD8 BATS 1355.5 1i207.3 - - - 2,562.8 45.9 1,176.

Sit-Total EQUIPMENT AND VEHICLES 14,33B.4 15P924.7 - 1,299.7 - 31,563.0 39.7 12,534.2D. SHRIIIP FARM, PRIVATE HATCHERIES

AND MARETING INVESTENUT

ON-FARM CIVIL RS - - 17,763.7 219900.4 7,893.0 47,557.2 0.0 0.0ON-FARM CIVIL IIORK

ADD. PROJECT AREAS 13,447.3 17u229.3 12401!.2 - - 42,694.8 0.0 0.0ON-FARM EQUIPIENT

MAIN PROIECT AREA - - 249235.5 28,551.6 12,909.8 65,696.8 35.1 23,059.4ON-FARM EWUIPMENT

ADD. PROJECT AREAS 10P597.5 13s579.5 9,469Y. - 33v6t 9 39.1 13t167.8HATCHEY CIVIL VIRKS 1,073.6 2v505.1 - 23,977.2 11,988.6 39,544.- 18.0 .,126.1HATCHERY EIUIPMENT - - - 4,259.7 2,:29.9 6,389.F 46.C 2,942.3MAREn NG - 3,982.8 7965.5 1,268.4 1,199.B 14,4! .5 39.4 5,679.1

Sub-Total SHRIMP FARMD PRIVATE HATOIERIESAND METING INVESTMENT 25,110.5 379295.7 71.453.7 79,957.3 36,121.1 249,946.3 20.8 51,974.8

Total INVESTMENT COSTS 63,966.1 149,387.3 199,211.0 160,995.7 44,533.9 617,984.0 17.9 110,534.1

11. mEuRIm cOM-4.8- ANN1X 1

A. tECiicaL ASSISTANOE. TRAININO Table 1aO FEULWIP8 Page 2

PIU OT41ANTS (rOE11N) 9.619,2 13.74L,m 10.347.? 10,293.1 5S030,6 49,032.4 87.0 42i649.7P10 CISULTANTS ILOCAL) I1B62.1 39BB3.9 3,O83.9 2,096.1 1.192,9 13,519.! 0.0 0.0IEHICLES , 30TS9 AND EQUIPFENT , PIU CONSULTANTS 2W2OW.2 46121.5 57.1 - l.062.l 7o468.9 45.7 3P410.5OP. COSTS VEHN. PIU CON9LTANTS £46.1 2016.7 2.016.7 24016.7 2p.57 9,253.9 46.0 4,256.3FELLMNIPS 892.3 594.8 - 14784.5 1,734.5 5056.1 90.3 4,566.9DNESTIC maIwiNm 305.9 509.9 713.8 764.9 764.9 3059.1 0.0 0.0

Sub-Total TECHNICAL ASSISTANCEP TRAININGAND FELUO75IPS 15,534.4 24P868.5 17,019.2 16t955.1 13v012.6 87.389.9 62.9 54,893.7

B. PIU AND M3 E2UIPNT. OP. COSTS

PIU MATA AND VEHICLES 569.4 29226.2 2s226.2 2P226.2 2.226.2 9,493.3 46.0 4,366.9NDJ MOATS AND VEHICLES 1.333.1 2.339.1 2,339.1 2,664.1 2,664.1 119339.6 46.0 5,216.2DEOTRATION FARM EIUIPICNT - 15.6 30.7 30.7 30.7 107.8 46.0 49.6

Sub-Total PIU AN WD8 EGUIPFT. OP. COSTS 1921.5 4.591.0 49596.1 49921.1 4921.1 20.940.7 46.0 9,632,7C. INCREIENTAI. SALARIES

PIU SALARIES 1.943.9 3,844.4 4,949.0 49949.0 4.949.0 20,535.2 0.0 0.0No SALARIES 5.385.6 5.395.6 5,385.6 5,385.6 59385.6 26.928.0 0.0 0.0

Sub-Total INMNTAL SILARIES 7,229.5 9.230.0 10,334.6 10,334.6 109334.6 47463.2 0.0 0.0D. 0 1 N FOR CIVIL WRUS

011 EINIUNS - 10.5 459.5 1.127.3 19419.3 39016.6 0.0 0.0GEN REGULATORS - 42.9 977.8 2P245.7 20768.9 6,035.0 0.0 0.0CN UWAE PROTECTION - - 5.3 106.7 202.8 314.9 0.0 0.0OGE WEMR. FAIM BUILDINGS - 143.2 339.1 353.0 353.0 1.1889. 0.0 0.0GEN PIU BUILDINGS - 362.9 763.4 789.4 78B.4 29703.1 0.0 0.0

Sub-Total a i N FOR CIVIL 1413(8 - 559.3 2,545.2 4,621.2 5.532.3 13.258.0 0.0 0.0

Total REURRW COSTS 24.685.3 39t239.8 349495.1 36.831.? 33P800.6 169,051.8 39.2 64516.5Total BASELINE COSTS 896514. 18fU626.1 233,706.1 197.717.6 789334.4 7874035.8 22.2 175050.6

Physical Cantingmnies 99412.4 20v266.0 23.473.2 21,940.5 9?070.0 84,062.1 21.5 189044.3Price Contingencies 16,200.6 59.583.6 105,313.6 152.?49.4 93.641,3 427s6B8.5 31.4 134.230.1

Total PROJECT CQSTS 114,264.5 268,475.9 362,492.9 372.507.5 iS81045.8 1,29S9786.4 25.2 3279324.9

Taxes 17,451.4 39,157.1 42,409.3 50,497.1 29,997.0 179p501.B 0.0 0.0Foreign Exchanie 31PM.2 65,335.7 72,101.1 99.129.9 59.986.1 3279324.9 0.0 0.0

MIr CLTURfE PuEr

, ~~~~~~~~~~~Phoolcal COtcnUtln0 Pric Ci.ot,Ut.ln Phm,cali COStS Total Ihcl. Cant. Cmt. 71 SP InStC t

.. ._.__ ....... _._ It,l ...................... tLocal .P--t- Cot. frift COO.LOw l l (Etc]. kti" I for. (Eal, PtAlN I (Enl. utm I Local (Eal. kOtin I m INICo mkw

For. ELch. ICXn) Tlxr Total xch, Tons) Tasm total For. Loth. 700 t?xo Totll) for, Eva. tTono Tr Ttal Cmt. * ott

1. IM27RUt COSTS

A. LAS NcDuJsI2T2-. _..._.........

ut Ml F uulA -0 FRASTRUCTU - 1 .°W.5 s l . - 79. - 79.3 - 125.4 15.4 * 12U.2 - 12.2.2 933 1,274.9Plu I2T0OUIES - 4.5 0.0 4.5 o -0.5 0.0 0.5 *5.0 0 e s 55.PIU SUILAW . 14.9 0.3 15.2 - 2.2 0.0 2.3 - 1-d 0.0 I, 15.7 0.4 29.1 2.5 26.0

Sub-total LASN UISITIU- 1.022.0 0.3 1.02.2 .J1.5 0.0 I2.d - 237.5 e.0 2*7.0 M22 .4 29M.3 5.5 11106.5A. CIVIL VMS

Mlii. rFA IUW2RMSTRIETIkE 2.2.2 0.1453 746.4 #1150.0 124.6 014.0 70.0 513. 544.1 1.377.0 211.5 2.113.2 12915.0 3,l.5 12es4.5 11P07. 2,009.7 10,097.3PIU 11t14 l9 59.3 M30 f 3.7 326.3 11-7 41.1 12.7 05.7 10.5 25.1 6.3 44.3 32.6 271.4 5.2 43L. 73.0 343.2PrW K)UTMIIOS FAMS 70.9 251.1 70.3 392.3 7.1 251 7.0 39.2 9,3 19.9 0.6 36.0 17.3 296.1 04.1 467.5 42.5 425.6 PIU IUI61N 155.5 549.2 171.2 170.0 23.3 75.6 21.5 127.4 20.5 42.5 125. 75.0 29.4 670.3 212.3 1.012.0 I7.5 944.6 E NEERIS AN ESIP 2.2 432.5 3,3 431.2 0.2 43.3 0.3 43.3 0.3 02.6 0.2 03.3 2.7 316 2.9 54.2 49., 495.0

Sub-Total CIVIL WORS 1,5343 7s.93.5 2074.9 10,92.0 167.1 e02. 122.2 lI01.9 564.0 2,527. 243.0 21355.1 20210 9*913.9 1.40,.1 13214100 1.312.3 1W27.7C. EWIPMlIT AM MIMCLES

204tt00 r.6r1n 21.3 7.9 17.7 47.3 - 3.2 0.6 2.4 0.4 25.0 6.7 20.1 53.7 53.7ISTJ161101 FAR" EWIPIOtT 45.1 t3.2 38.9 102.4 4.5 1.3 3.9 10.2 5.3 1.4 4.0 10.7 25.1 21.3 46.9 i3.3 11.2 112.1PIU OFFI(E (E2u6In 41.2 136.1 03.0 242.3 0,2 20.7 9.4 3.3 4.4 7.1 4.6 125.5 51.3 25.9 70,5 294.2 3.' 22.*PIU ff2301ES 122.4 36.2 100,1 201.7 12.3 3.8 20.0 20.2 17.0 3.4 12.5 12.6 152.7 45.4 122.& 320,7 29.2 291n.PIU I3A1S 1294 7,5 16.3 43,2 1.9 0.7 1,0 4.3 3.0 0.3 2.3 0.2 24.4 9.o 20.2 53.6 4.9 46.7Nu 4E2ICL1S 127,3 39.4 102,1 269.3 * - 26.3 3.0 13.1 43.7 153.6 4. 121.9 31.s - 16.5Ml 01ATS 3".? 2J.2 33.0 85.4 - - 4.2 0.3 1.2 6.1 43.4 14.0 3.1 3.5 - 93.5

j-totoI (WUI t #912 M 015tLS 417.7 202.3 372,1 12052. 25.0 27.1 25.0 77,1 63.3 17.3 47.2 1213 506,0 307.2 444.1 ,57. 3.& 1173.90. MliiP FA. P51!ATE HIT0OIESAN NAVIN IE 11005

2fAR- CIVIL WS - 2.565,2 - 1515.2 - 256.5 Ise.s - 455. - 455. . 2199.6 - 219.6 00.0 1999.6A-Fr ClIlL 11XSAO,n 9e0l m - 1.23,2 - 1423.2 -. 142.3 42.3 159.4 - 1S4 - 17249 - 172.9 250.3 IS.1

01r E01M11T O l-OUM lPItlf 706.0 739.3 032.9 229.9 76.9 71.9 63.2 219.0 556.0 234.2 191.1 1.26,4 1.403,6 12,22.s 1,260.2 19592.3 326.6 32057 . 7

06W. 1,00 4N,9 321.6 304.1 1.121,6 43J. 31, 36.4 112.2 70N7 35.7 54.4 160.7 m.S 330.1 454.6 1,394.5 120.0 1,207.72ATO0T CIVIL 5 237.5 320.4 25.2 12311.2 47-5 164.1 50.3 262.4 271.0 275.2 140.4 086.5 55.0 1,205.0 44s.4 24207.1 37.1 1,0.52AI210 EWIPNI7 9.I 15.4 79.5 213.0 - - - - 93.2 10.9 62.6 100.6 12l.3 40.3 142.2 379.1 379.1WlErI3g 189.3 119.0 172.3 4U0.5 13-. 12.9 17.2 43.1 5.5 29.4 43.4 12U.4 263.; 200.3 22.9 657.0 59.7 Wt7.2

SU-TtaIl SHMII. FtM PRIVATE 207t02IE1MS IVSAMZI INSMSIT eI732.5 5.097,2 1,502.0 W3,335 137.2 567.0 167,7 f42.5 lo046.5 19200.6 092.9 2,942.0 209"., 0,65.3 2,303.0 22,213.1 1,240.4 106.7

olal I24S1)2 1 CSTS 3,064.5 23,903.7 2949.3 244.5 379.3 24, 314.9 2.293,0 2.290,4 2933.8 9`2.2 5,612.4 5760.2 11-311.3 4,240.4 23404.q 2,736.1 2s,6.7

11. KCSM7 C01 t3T_...............

11.MItXlL <151TA 1"1"ADMWVLW503PS

.. .......

PIU CUlTUILTM(1 (FOU1W) 1.421.7 211.5 12 1.634.4 142I 2 24.1 0.2 16.5 623.4 41.7 0.2 665. 21117.2 277.4 1.6 2o466.2 227`4 21226JFIUll COSLTANIS ILXALI 440.7 2.o 450.7 - 17.3 0.3 67.6 J 92.7 0.4 93.1 60*,7 2.1 611.3 79,7 531.6MIIULS IOAII * ANID EIUIlMEI * PIU C0ttL NIS 113.7 J7.1 16.2 ;47.0 11.4 1i 9.6 24.9 37.2 5.0 26. IT.0 IU-.2 41.0 132. 342.3 11.2 Jll.7

WP COTS 15 4.. PlU CONSIATMII 141.9 43 1203 306.5 213 6.9 11.0 416 101.1 12.1 72.4 115.6 264.2 4514 210.7 540.3 105 4U7.1FTUWa In 152.2 16.3 * 16U5 15.2 1.6 * 6.9 121J3 4.4 132.7 295.7 22.3 311.1 26.9 2M1.mOISIC IMINI - 1 102.0 202.0 1 1.2 10.? * 5.13 25.J3 117.5 13175 12.5 125.0

......................................... ................ ............... .................... , ..... ....... ........ ....... .......... .......... ........ ....... .......... ............ ........ ........ ...... ............. _._-__

U-1b0oll TItCINICN ASSIUANCEP T1I6I OAMDW FLLWIIIP 1129.5 563.9 29o7 2,913.0 190.0 114.1 2831 332.13 89, HIllJ 99.7 1170 2.94 10159.2 3U.6 4.16 450.2 3,66.1

3. PIU MW UN IUWPDT. OP. CSll

PIP fTiAND MA I U1tLEtS 2456 47.5 127.4 IN6A4 14,6 4.7 12.3 Jl.l 93.3 11.1 67.0 171 252.4 63u.t 202.t 520.0 47U 472,7VA INAIl M 1W 5 YIOI 173,9 54,7 147.1 373.0 17.4 5.7 14.7 37.3 110 3 13.4 79.1 202.3 301,5 75.1 24112 13.6 Sil2 5U62.3UCRUSIATIU Fr 111U191 1.7 0.5 1.4 3.4 0.2 0.1 0.1 0.4 1,2 0.2 0.19 2.3 3,1 0.7 2.4 4.2 0. 53.7

.. . ...... .......... . ....... . .. :. ..... . ..... .. .......... ....... ........ ....... ......... ...... .... .. ..... ........ ____. Sb-Total fllu IO We 11o1 1, W. CTOST 321.1 104I 7 2723 4n 0 3J21 10.5 27.2 69, 2043 25.2 147A0 37.0 553.0 140.4 444.5 1.144,1 104.1 1,00.7Cs IlaSMlTlL SAtA*lt

C. ................. Flu 5U1S * 674.2 10,3 604.5 67* 4 1.0 5* 165.7 2.5 161 I 107.3 13. 921.1 ? 13.1 7.4IV"3 " lS 696 1.3 397.6 1 96 0.1 1.1 19.7 0.1 239.9 1.17505 1Il 1,177.3 107,0 I1010.3

Sub-Ttoal I AW .L 5611* 1570.5 11.6 1.5,1 * 157.0 122 153,2 355.3 2.7 351 * 2,002.9 IS.S 21 09n.4 It0o' 11107.6o. o i a rw CIYIL m$

.. _.................

O t IEI41s * `1.5 2.0 100,6 - 9.9 0.2 10,1 33.3 0.7 34.0 14117 2,9 144. 13.1 131 4OmIIUAIUt * 10711 Ie0 20102 * 1707 014 2§1 * 41 U.O I 704 * 212.7 S.l Mt?7 21. 262.4 01OI5witt OTCIIM 10*3 0.2 10.5 - 1.0 0.0 1.0 3.* 0.1 3.9 15.1 0.3 A 4 1120 OM K1UTI. FM IUIIUIN 3n.1 0.1 39.6 * 3.9 01 4,0 11l1 0.2 11,3 53.1 11 54 5.o0 4.7010 U PI ILO3IN * 16.3 11 P0o1 * 1132 O.3 23.5 26.1 0.5 26,6 127.6 2.6 130.2 17.0 113.2

Sub-Total 01 N FM CIVIL * 4133.1 .6 44.9 7 .477 10 0 .7 . 140.2 29 743I1 621U0 12.7 633,7 62.0 571,0..... ............ ........ ........ ..... ....... ........ ....... ,.,.,...... ....... ... ..... ....... ,.......... ,,,, .... ,........ ... ,,,,,,,,,,,.,,,, ,,,,.... ...... _. .. ... .. . . ..... I-

Toltl uAIiR CtOlS 2slO0. 2,972.1 512.4 5.35,1 222,1 32714 57. 6990 1f0i 4,7 702.0 252.3 240.1 3447.4 4.002,S 62292 1.213,1 107.1 71U4.4Total 5.0350 1.37o6 3.4617 261234.5 61. el Is2,2 372.4 2.eo2,1 291s1 3o .11 1.234.5 7.UI,4 9227,6 22.401,1 5.0686 36.690,0 3.545s 33 2152

, ~~~~~~~~~~~~~~~~~~~~~~~. ................................ .......................... .. ...... ...... .. .........................

-51- A1r 1-~~~~~~~~N IainAe TWble 3

SO 19 OLIE FiLET Page 1Sumur kcmft by Tear

TEWsb litujlm C,tdinamcLu Totals I,tIuiii Coit1ei~tus(lb 10001 cmSS low)

1 2 3 4 5 TOtl 1 2 3 4 5 Total_ -_ - - _ _ - -

1. D USII TS

A. LW iI5I1I

9S1 F115 1JST3EIE 5.. 9e.6U.0 U151.4 13321.0 - 44,516.2 150.1 27. 469.3 3).0 - 1.2632M MIIIMIES - 172.7 - - - 172.7 - 5.0 - - - 5.0FEu ; S9J 110.1 493.4 5.3 - -- 50 3.3 14.3 1.5 - - 19.1

Su*-Tow LACMISM= 51U63.7 10320.0 16.572.2 1332.0 - 45,346.9 193.4 2M. 470.0 370.0 - 19292.3L CIIL I

S9W FFIIN 1T3E3 - 76P741.9 17315.4 1 12,619.6 17,509.2 33.100.1 -27224.4 4#91f.3 3.491.4 471.? 1,107.0pl mOWE5 369.0 14576.7 16f9. - - 15.14.0 10.9 4M.5 4.3 - - 433.3Fri MDBM I' FANS 6,0.3 * 20.2 718.4 - - LS1m9T 18D.4 26.7 20.4 - - 467.5rA Nai.e 16437.0 19,514.5 13M.9 - - 36,976.4 47.7 su.0 33 - - 1092.0E93151338 3 5B1 4.11. 6P446.0 51.0 3.310.? - 13899 122.3 13.3 144.1 92.0 - 545.2

S*-Total C IIL 26,601.1 5U.4 I47.3 10.5 17,U50.2 130,140. 739.4 3p6U.4 5.126. 3,513.3 471.9 13.640.0C. EEfHT mS UES

*TCNOD IE01 - 16.1 - -- l- of.l. - 53.7 - 53.76191M83 FMA E ITW - 2043.5 s2z,.4 - - - 42tS.Y 60.6 62.7 - - 1Z.3

mm F m 0ErI 6 M76 3v20.6 - - - MM93. 201.1 93.1 - - 24.2on maw 2,97.3 3PC.. - - - 10,995.3 37.2 233. - - - 320.7tIR is 1534 1706.7 - - - 1.345.0 4.1 49.5 - - - 53.6

_ w 4.72.? 3,612.0 - 2 n572.6 - 10,981.5 140.3 10W - 71.5 - 31M3m TS .U6e.0 1577.1 - - - 3,187.1 47. 5.W - - - 93s

S-uToital E 1fA U101ME. 11233.6 32.230.? - 2.572.6 - 43,7.2 541.1 64. - n.5 - 1P257.5-. geg F11. F T ITRE IOIES

8 anL 5 - -o2792.3 37,022.2 14.677.3 79.m7 - - 775.5 12.4 3956 2.91AD*FF a nL Mm

AIL FUECT 8 1694.0 24,069.5 13M.4 - - 5,474.5 502.5 697.7 524.7 - - 19724.9lwlfmlli EIIITW

IUl F14SCT mm - - 30.01435 5355g3. 32,360.S 127 433.5 - - 1,010.0 1.62.6 Z5.7 3,592.3°11 EWUVEI

A9. MISET 13MM2m.0 19,433.0 14U372.7 - - 480'7.8 40a.7 563.3 422.5 - - 1,394.5USlTCUD CUVILa 1,474.9 34M.0 - 434.3. 2,561.7 32,193.5 43.3 110.7 - 1.343.3 69.3 2.267.1

1T13EiIr fWI - - - 3,76.5 5A.9 13d3s.4 - - - m-7 147.1 37V9inTIW1 - 5.71S. -12P54.9 24335.3 2599.2 23.193.? - 16S.7 356.3 64.9 70.1 457.0

Sub-Total 931 F. tIE 4103t1E5AM iiET11 LSINWE I 32,190.9 ,0363.5 II .230.4 154.652.2 34,137.2 435t207.2 954.9 15137.3 3.15.1 4.295.? 2.2 7.8 12,215.1

Total DIAEBIT0 OUTS Cl2,14.3 212.133. 3U.240.4 29.5o6.4 101646.4 1003m51.3 2,439.7 6.1W40 315.3 82320.7 2739.8 2.B404.?-___ .__ . _e - =~~ =- -_-

I. REONMU OMTS -52-

A. TEDtU AESSTrSCE. T D iAn rels Page 2

Pig CUO 7TS t( Si) 12,686.0 19MA0.M 16409.2 23.300.5 14,13.7 B7v1=.0 V6.4 575.7 466.2 647.2 400.7 2,46U.2pnl SLTMTS (LOCAL) :.452.4 5672a. 6,24D.1 3M7G4.4 345.4 21.55.1 72.J 161.4 177.3 102.1 93.9 611.3V =ES * MATS * rd EDiIEIIT * PIU CLTMTs 2.104.4 5,92.9- C.5 - 361.3 119977.2 85.6 1717 2.5 - 3.1 342.8oW. COSTS V.1 MIU CITItS 2.7 3.083.2 3.324.2 4,380.9 7s5M.. 1940.1 26.2: .J 94.4 127.2 204.6 540.3FaL&Amzps 1.174.5 1. - 44047.4 3411.7 11,403.2 34.9 24.9 - 112.4 145.9 318.1BoESoC TR*11 335.2 72.3 1,097.0 1I2M2.8 1,42=.1 *59.4 1:.4 23.6 3:..: Z.9 33.3 137.5

Sub-Total TEDINIIW 4 1STIU Tw1N141111iAM FBaL PS 20,445.2 36,3.5 27V 9.0 36926.0 35,857. 5t.46.0. 607.3 1,012 771.6 1.23. tU.-. 4.41:.:

3. Pig W gm IPU. G. osrS

M iUTS 1D WaCIES 763.9 3o199.6 34510.1 4a37.0 6320.1 le3635.7 Z2.0 92.7 9.7 :34.4 :70.6 Xc.0MM ATS AM 1ES0 1.742.2 3,3U.9 3.69.1 537BB.4 7.593.2 22.143.7 51.7 97.4 104.3 160.8 203.9 613.6

anWTI*l FMi 0W07T - 72.5 48.4 66.7 37;2 224.8 - 0.7 1.4 I.9 2.4 6.2

S*-Tutal Pll AM111 EBIPOM. BP. CISTS 2PS11.1 6.35.9 7246.6 10692.2 1370.4 41.004.2 4.3 190. 20. 97.0 376.4 1,144.C. DiJEROL SLURE1

PD SAES 2.322.0 5,370.9 7.605.6 *.366.2 9.202C 32,37.4 68.9 15.7 2U.1 232.4 24.81 921.13 SIA*IS 6.M7.0 7,324.2 3876.6 9,104.2 10.014.7 41,701.6 201.2 213.1 23.1 2.9 269.Y 1,177.3

S.r-TatB1 D1 ITK IL 91*1E3 19103.9 12.MI5.l :M.82.2 17.470.4 19,217.4 74369.0 270.1 33.8 451. 493.3 5U.0 2 .0.4P. 0 11I Ft CIVL O

am ENTS - 14.7 706.1 1.90M.7 2.639.2 5.26.1 0.4 20.1 52.9 71.1 144.6eu 5E3*AT6 - 59.7 1,32.7 3.796.2 s3,48.7 10.37.3 - 1.7 42.7 10s5 133. 253!.7am Nw PR01ECTIS - - 0.2 0.4 377.0 365.6 - - 02 I.. 10.2, :5.4MPt' .993 nD FIN UhLISIS - 200.1 1. 596. 656.5 1,974.6 - 3. 14.8 U. 1.7 54.9DU nu juJLDIUS - s30.0 1,i6.6 1393.4 1.5M.7 *4.62.6 - L4 34.3 3IL 41.3 130.2

Su*-Tota1 D 1 N FO CIL LM - 304.5 3.964. 7472. 10P354.1 22.995. 23. L L. 28. . 63 .7

rotal o0;ra COSTS 32c.2 36341.9 S4U .5 72*961.1 7Y39.3 29 3.1 951.9 1WM3.: 1,341.3 2,26.7 2140.1 e.:n.1

Total FrBEcT a0s 114,264.5 2U6P415.8 362.492.? 372.507.5 s 1.048 1v.71,7.4 3390.6 '.731.M? I0.290.! I0,37.4 4,37.9 36.67.0= - .... .- _ - n.. .... .. ......................... a_ n a_ _

ANNEX 1Table

SHtD CILTURE PROJECTPro.het Cowonfts hi Tear

cm Nillim)

Total

n6~~~~~~~~~~(s,1 2 3 4 5 Tk illiom)

A. INFR*S1JCTIRE

LMU 4.0 7.3 U.0 7.9 - 30.2 1.0EIILWEJ,TS 0.4 12.1 27.2 18.7 3.5 61.8 2.1RI/EATfRS 2.9 46.9 E.5 52.7 8.5 196.5 6.5O"E FROTECTIO - 0.2 4.1 3.8 0.9 9.0 0.3HP701. NJILJDS (60 am) 0.3 9.5 0.1 - - 9.8 0.3RT01. EDIIPIENT (013 OUDI - 1.4 - - - 1.4 0.0

Sub-Total 1IFRASTRDCT3IE 7.6 77.4 127.9 83.1 12.8 308.8 10.38. CDIT FIN. SRINP-FvR,

HATDERY U MRXEETING IUESTIENT

ON-FR INFRJSTR. OM EGUIPMEjT 24.0 30.8 63.5 50.5 20.8 189.6 6.3PRIUWTE HATCEIES 1.1 2.5 - 23.2 14.1 45.9 1.5NRRETID (FARN TO PROCESSING) - 4.0 8.0 1.3 1,2 14.4 0.5

Sub-Total CREDIT FDN. SHRIIP FMU,HATOER AND IMWET3I IIENTSENT 25.1 37.3 71.5 80.0 36.1 249.9 8.3

C. INSTITUT. SIPPIRT PID AND MUD

LAMB 0.1 0.3 0.0 - - 0.5 0.0IfLiDIGNS FIR PIU 12.1 13.4 0.8 - - 26.3 0.9

nic. Sm.RIES u.COSTS fOR FIU 4.8 13.2 7.9 8.0 8.0 41.9 1.4

INCR. SALRIES AND W.COSTS FOR DB 5.4 5.4 5.4 5.4 5.4 26.9 0.9

VEHICLES AND E 0IPIENT FDP PID 5.1 2.2 - - - 7.3 0.2W IDLE5 AND EOIIPIENT FOR J4DB 6.7 6.4 2.3 4.0 2.7 22.0 0.7

DEIIOSTRATION FAN 6.3 8.2 0.8 0.4 0.4 16.1 0.5

Sub-Total INSTITU1. SIF99RT PIU NM1DB 40.4 49.0 17.4 17.7 16.4 140.? 4.7D. 7EON. ASSIST. TRAININM

MM FESULSR

IEJATIM MOLTITS 14.3 23.8 16.3 14.4 10.5 79.3 2.6TRAINIEN MD FELLOUISHPS 1.2 1.1 0.7 2.5 2.5 8.1 0.3

SbTotal TEOHN. ASSIST.i TRAIeNDiMD FELLOUSI 15.5 24.9 17.0 17.0 13.0 87.4 2.9

Toral USELIIE COST5 88.7 188.6 233.7 197.7 78.3 797.0 26.2Physical CDmtin*oeius ?.4 20.3 23.5 21.8 9.1 84.1 2.8Price Continnencies 16.2 59.6 105.3 152.9 93.6 427.7 7.7

Total PROJECT COSTS 114.3 268.5 362.5 372.5 181.0 12998.0 36.7

Taxes 17.5 39.2 42.4 50.5 30.0 179.5 5.!Foreian Exrhaide 31.8 65.3 72.1 98.1 60.0 327.3 9.2

Noveber 22, 1985 13:14

-54- ANNEX 1soNIGLAR Table 5

-M OLTRE PRUETProject Cam mts hi Year

Tous Icluding Cantinuoi.s Totls Including Catinim s(Tk Nillion) CM$ Hillion)

1 2 3 4 5 Total 1 2 3 4 S Totl

A. IFATUTE

LAND 5.1 9.8 16.5 13.3 - 44.7 0.2 0&3 0.5 04 - 1.3ElN3II 0.5 16.8 41.8 31.6 6.4 97.2 0.0 0.5 1.2 0.9 02 2.7REGtLATWRS 3.6 66.1 132.4 96.4 17.5 316.1 0.1 1.9 3.8 2.7 0.5 8.9WE PROTECTN - 0.3 6.3 6.0 1.7 15.1 - 0.0 0.2 0.2 0.0 0.4HATCH. BUILEDIGS (GMB OIlED) 0.4 14.6 0.2 - - 15.1 0.0 0.4 0.0 - - 0.4MATCH. EDOIENT (603 OIlED) - 1.9 - - - 1.9 - 0.1 - - - 0.1

Sub-Total DlRASTMUCT1K - 9.5 109.5 197.1 14B.2 25.7 49 0.0 0.3 3.2 5.6 4.1 0.7 13.9P. CRIT FIN. SIM FARN,

IATDERY AND MRETDI INIESTl1NT

GI-ARF IJFRASTR. AND EGUIPHENT 30.7 43.5 98.7 95.6 47.5 316.0 0.9 1.3 2.8 2.7 1.3 8.9PRIVATE HATCNERIES 1.5 3.8 - 56.7 34.0 96.0 0.0 0.1 - 1.6 0.9 2.6MRKETING (fARM TO PROCESSIN6) - 5.7 12.5 2.3 2.6 23.2 - 0.2 0.4 0.1 0.1 0.7

Stib-Tot CREDIT FIN. SINRIP FARNPHATOERAtWMlARKETING IIWESTNENT 32.2 53.0 111.2 154.7 84.1 435.2 1.0 1.5 3.2 4.3 2.3 12.2

C. INSTIIJT. SJ'PORT PIE AND KDW

LAND 0.1 0.5 0.1 - - 0.7 0.0 0.0 0.0 - - 0.0BUILDINGS FRWPIU 16.0 19.6 1.3 - - 37.0 0.5 0.6 0.0 - - 1.1DICR. SAARIES MD BP.

COSTS FOR PIU 6.2 18.9 12.3 14.6 17.1 69.0 0.2 0.5 0.4 0.4 0.5 1.9DOCR. S5LE AND OP.

COSTS FOR Be 6.8 7.5 8.3 9.1 10.0 41.7 0.2 0.2 0.2 0.3 0.3 1.2UEHICLES AND EouIPnENT FOR PIID 6.8 3.2 - - - 10.0 0.2 0.1 - - - 0.3UEHICLES AND EGUIPIENT FOR BIDB 9.1 8.6 3.7 8.4 7.6 36.3 0.2 0.2 0.1 0.2 0.2 1.0DENMISTRAIN FARNS 8.1 11.6 1.3 0.7 0.7 22.4 0.2 0.3 0.0 0.0 0.0 0.7

Sub-Total INSTITUT. SUPPORT PIU MD NO DB 52.1 69.9 27.0 32.7 35.4 217.1 1.5 2.0 0.8 0.9 1.0 6.2D. TECHN. ASSIST.. TRAINIIG

AND FELLOMISHPS

IMPLENENTATION CONSULTANTS 19.9 34.5 26.1 31.6 29.0 140.1 0.6 1.0 0.7 0.9 0.8 4.0TRAINING AND FELLOISHIPS 1.6 1.6 1.1 5.3 6.8 16.4 0.0 0.0 0.0 0.1 0.2 0.5

Sub-Total T'ECH. ASSIST., TRAININGAND FELLUOSHIPS 20.5 36.1 27.2 36.9 35.9 156.5 0.6 1.0 0.8 1.0 1.0 4.4

Total PROJECT COSTS 114.3 269.5 362.5 372.5 181.0 19298.8 3.4 7.8 10.3 10.3 4.9 36.7

November 22M 1985 13:15

s3w6 CULIUiE MtECTFtinarcI Plan bv SuaaarI kcmts

(M1 '000)

IMSTOR PCI Is lIS IDA 991 Total........ .. __ -.-...-........-------- ........................... Local (Oct. Mi" IhAmt 2 A1ma I b k I Z Aa 2 AA11t I uAit Z eat 2 For. Cxdh. Tim)l T s

, ". s _ _ass sw " *w"8 ._ ....Bassoon.............................................1..1.....................=........... as*

1. INISTIENT CO9TS. .........

A. LAND AUIZITION...... .........

SHRIMP FANRINIW ff -R- - - 1,211.2 100,0 l2,2J2 3.5 - 12d.2PIU ATM--ICS - s.0 100.0 5.0 o.o -asoo 0.PIU IUILDINIS - 19,1 1000 19 .1 - 1.7 04

.. . ....... . .. ._. ..... .... .. __. .... ..... _ ..... ._ ... ..... . .. . .. .... ....... .. . _... _.... ..

Sub7Total LAD AUISITION - s.m 100W0 Im.3 l.5 -is9. 0.43, CIVIL IV S

S1H2IM FANIN INFRASTRUl- -- - 9,9,39.0 1.110.7 10.0 11,107.0 30$2 1,915.0 9,137.5 1,05411PIU HIIA IES - 11.1 t0.0 43U. 10.0 43.3 1.2 81,6 271,4 6.2PIU KWlTRATIOI FArs- 420,3 00 46. 10.0 4a7.5 1.3 973 296,1 341PIU DUILDINGS 973-- 90.0 106.2 10.0 1,O02.0 209 1"4 670GM 212,3 31ENGIWOII AD KISN -490.7 90.0 s4,s Joto 54342 1.5 2.7 S.P6 3J. Yt

Sub-Total CIVIL NOS-- 12,276.0 90.0 1,364.0 10.0 136400 37.2 2M2OM0 99139 1440o1C. EUJIPIflT MD VEHICLES

H41CHEJY EGUIPINT- 34.9 65.0 11.1 35.0 53.7 0.1 25,0 h.7 20.1KMtCIIA N FA EiUlITfflT- -10.2 65.0 432 35.0 123,3 0,3 55.1 21,3 46.9PIU OFFICE EGUIPIENT…-9112 65.0 103.0 35.0 294,2 0.9 51.3 515.9 76.5P:U VEHICLES 201.5 65.0 152,3 35.0 320.7 O.S 152,7 45.4 122.6PIU WCAIS MS 65.0 18-3 33.0 534 0.1 24,4 9S0 20.2MCI NDIEHLES 207.0 65,0 111,5 35.0 153.s 0.9 153.6 42.9 121.9NiD, BOATS 60,3 65,0 32.7 35,0 93.5 0.13 43.4 140 36,1

Sub-Tatal EPlIfNIT MD VHICLES S17.1 MO 440.1 35.0 1.257,5 3.4 50610 307,2 444.3Do SEll?P FAR. PRIVAIE HATCERIES

AD MARETING INWSTMENT........ ... .. ........

ON-FARM CIVIL WORKS 220.0 10.0 439. 20.0 329. 153.0 - - I.209S 33.0 0.0 o.O 2,199,6 6.0 - 2,199.6ON-FAM CIYIL MS

AOD. PROECT AWAS 172,5 10.0 345.0 20.0 25.7 15.0 - * S94,7 55.0 0.0 0.0 1,724,9 4,7 - I724,9 -ON-ARM EOUIPIENT I

MAIN M CT AREA 3592 10,0 715.3 20,0 338,955,0 - - 5,975 55.0 090 0.0 3,59n.3 9.S 1,403,t 1,102.5 1.016,2 1 ON-FA EWUIPIENT

ADD. MA.ECT AREAS 139.4 10.0 279,9 M0 209,2 15.0 - 767,0 5.60 0.0 0.0 1194.5 31,9 55135 3U6.1 454. ' MATCHERY CIVIL VMOlS 110.5 30.0 453.4 20O 340O1 1.0 - - 793,5 35,0 0.0 0.0 2,267,1 6.2 56.0 126,6 445.4HATDERY EOUIPMET 113,9 30,0 76.0 20.0 57,0 - - 1329 3500 0.0 0,0 379S3 1.0 191,3 46.3 142.2AWUXT1t 17lt57.5 3O 131,4 200 o.55.0 - - 22, t 35.0 0.0 0.0 657,0 I.e 263.7 160.3 232.9

.... .. .... ... .... .... ...... ... ........ ... .... .... ..... ..... .......... ........... .....

Sub-Total SHRIP FTAR MIVATE HATO(RIESAND MARETING IESTNT 1.N2.3 53.4 2.4340 20.0 1132,3 15.0 - - 61057,5 496 0,0 0.0 12t215.1 33.1 2968.2 6,35.3 2,361,6

Total INESTENT SITS 192*3 6.6 2,443v0 3.6 1,32,3 6.5 - - 19,150.9 674 309o6.4 10.9 29O,4. 77,4 50760.2 1,399,3 4.246.4

11. REMNT COSTS

A. 1E0I1CAL ASSISETAC TAININIAND FELLOSHIPS

. .*..._.....

PIU CESILTANTS (F0WIINJ - - - * - - 2,6.2 100.0 - - 0.0 0.0 2,444.2 6.7 2P137.2 27.4 1.PIU COuLTATS (LOCL) - - - - - 6214 100.0 - - .o 0.0 61.3 1.7 - 60.7 2.6WHIM.ES . MOATS I NO ECUIN p lu CM TTS - - - 342,3 100.0 - - 0.0 0.0 342.3 0,9 162.2 46.0 132.6Wo CMTS Wit, PIU COSNUL1AE1S - - - - - - 540.3 00.0 - 0.0 0.0 50.3 1.5 264,2 M.4 210.7FILL4IPI - - - - - - 312.1 100.0 - - - - 315.1 0.9 2957 22.1lDOSTIC TRAININ - ^ - - - - 237vs 100.0 - - - - I37.S 0,4 - I27. -

S,h-Tatal MAICAL ASSISTANCE, TRAININGAND #MLOMS,NIPS - - - - - - 4,416.2 100.0 - - 0.0 0.0 4,416.2 12,0 290.4 1,159.2 147.6

1. PIU 110 MISS EJIPNY, OP, COSTS... . ............... . ..

!:U IATS AMD UEUCS -…33.3 6-.1 131,7 34.9 5200 1.4 M34 61.0 2M2oNl35 MTS W U-4035 6 - -- 5 U.2 215.0 34.1 6116 2 .7 301.5 75.1 241.2IIIOSUATIE FAIl EOUIPIEII- -3.3 60. 2.5 39.5 6.2 0.0 3.1 0.7 2.4

Co Totl lU MIAARUIJST .W6OTS7- 45.6 65,1 399.2 34,9 1144.0 3.1 553.0 140.4 444.5C. 2IIElIEN SALARIES

PIU SM2IES -*24.9 67.3 296.2 32.2 521,1 2.S - 507.1 13.1N .SAIA-IES 846.2 71. 331.1 23.1 1177.3 3.2 - 1o1g5. l.S

Sb-Total INCWETLM. SALARIES ……-471,O 70.1 W7.1 29,9 20M,4 5.7 - 202. 1S.o. 0 1N FMR CIVIL Mge9

OLI fOA S … - - - - - - - -…… I44.6 l100. 144.6 0,4 - 141.7 2.90U 111 ATOAS- 211.7 100.0 216,7 0,3 - 22.9 5.3OMN IAIE ROUcT- 1504 100,0 15.4 0.0 - 15.1 0.3am NI TR. fI .--LDIS- -54, 100.0 54, 0.1 - 53,3 1.1aim PIU 3IILINS-- 130,2 100.0 130.2 0.4 - 127,6 2.6

S-Tatal 0 1 N FOR CIVIL Ws -633.7 100.0 633,7 1.7 - 6210 12,7

Total IE T COSTS - - - - - 4416,2 53.3 2W216.7 26.7 1.t60,2 20.0 3,29M1 22,6 3,467.4 4,003.5 2.2Total ODlbu,s.nt 1.962.3 5.1 2434.0 6.7 1332.3 5.0 4,4162 12.0 21,367.55.2 4.756.4 13,0 u3 96,0 100.0 9,W27. 22001.3 5046,10

in,u murM wo MMmM#2 xm332 1221 mroullorro ,. -311 1UUM11113 31331 11RIICISI 111=13 Sm= a"=1 aammm=M88 21MM mm

............. . ............. ............................... _._ _ . ._..._

lloreb 229 IMI 13:20 N:

-57-

ANNEX 1T2ble 7

SEIW COLi MIECTri ,wi na bu Pijat Cnwuta

DlJEST FCI le Ul IDA 03 nhut LocalFar. (E,el. DIutie S

bmrt 2 A_li 2 burnt 2 _un Z burnt 2 I-t 2 burnt 2 Excd. Taxes) Tawsa _ ,la _ a ma _ _ . em S _m eas ara si ._-we 15ff

A. DXRNSTIItTE

LAN - - 1.3 100.0 1.3 3.5 - 1.3 0.0D_OA- _ 2.3 85.3- 0.4 14.7 2.7 7.5 - 2.7 0.1IEiTI 7.8 in.' 1.2 13.1 0.7 24.3 1.7 6.1 1.0INIE RJEC-IL- - 0.4 90.0 0.0 10.0 0.4 1.2 0.1 0.3 0.0HATIW. N LDiSt (GM m ) -…0.4 e9.0 0.0 10.0 0.4 1.2 0.1 0.3 0.11N141. sEDXrfT (ESo -)…0. -5.0 0.0 35.0 0.10.1 0.0 0.0 0.0

ShTot u!W,=URE - - ---- 10.9 70.7 2.9 21.3 13.9 37.8 2.0 10.7 1.21. WIT FM. 5EW FEE,

HA1TO4W AM HETIK fllLCSIIEm

OtIFUR DFSMI. ND EUIPIWI 0.9 10.0 1. 2J.0 1.3 15.0 - - 4.9 55.0 0O 0.0 0.9 24.3 2.0 5.4 1.5PRITE H1TCl11S 0.3 30.0 0.5 20.0 0.4 15.0 - - 0.9 35.0 0.0 0.0 2.6 7.2 0.7 1.3 0.6rAEI W?M TO PSl615W 0.2 3e.0 0.1 20.0 0.1 15.0 - - 0.2 35.0 0.0 0.0 0.7 I.0 0.3 0.2 0.2

ST-Tata CnT FDI. SOWIP FrHIOAMB M lETW IMISIBEIIT 1.9 25.4 2.4 20.0 1.8 15.0 - - 6.1 49.6 0.0 0.0 12.2 33.3 3.0 6.9 2.4

C. DI6liu. SMUT Flu 0 Smm

LA- - - - - - - - - o-e 10.0 e.o 0.1 - 0.0 0.0KIMUILD Ff3 PM -1.0 P.0 0.1 10.0 1.1 2.9 0.2 0.7 0.2110. SAlARIS M B.

COS 1Fl1 M 1.2 62.0 0J 3.0 1.9 5.3 0.4 1.2 0.4n. SIARI NO W.

CSIS FM DM 0.- 7n.9 0.3 23.1 1.2 3.2 - 1.2 0.0IENIO AIM IDE FOR MI0 0'- -0.2 05.0 0.1 35.0 0.3 0.e 0.1 0.2 0.111MEB1 S A 5IM ETF- FOR -I -0.7 65.1 0.4 34.9 1.0 2.0 0.5 0.1 0.4INBU*TIM F 0.5 77.4 0.l 22.6 0.7 1.0 0.1 0.4 0.1

Su*-Ttal DISTIS. 5MT MAU N -M- 4.4 70.9 1.0 3.1 6.2 16.9 1.3 3.7 1.23. TED. ASSIST.. TRADIR

M FEtUlWS

WWWATIN CWSILTiS - - - - - - 4.0 100.0 - - 0.0 0.0 4.0 10.0 2.6 1.0 0.3D AM FBL - - - - - - 0.5100.0 - - - - 0.5 1.2 0.3 0.2 -

Stb-Tatal 2IN2. ASSIST.. 1111115AM FUlIISIS - - - - - - 4.4 100.0 - - .O 0.0 4.4 12.0 2.9 1.2 0.3

TOtWl DisW*w t 1.9 5.1 2.4 6.7 1.0 5.0 4.4 12.0 21.4 53.2 4.0 13.0 36.7 100.0 9.2 22.4 5.1

Novbir 22 19M 13:22

-58- ANNEX 2

BANGLADESH

SHRIMP CULTURFE PROJECT

Role of PCIs and the Shrimp Culture Extension Service in Hakint Proiect Subloans

1. Under the project, the PCIs would provide medium-term subloans toindividuals and groups of farmers at conditions set forth in para 3.28 ofthe SAR to finance on-farm investments, nine shrimp hatcheries and marketingequipment. Working capital requirements for both farm improvements andshrimp hatcheries would be financed under short-term credit.

2. Lending scope of each PCI vould be determined by the choice of theapplicants. The PCI would be responsible for:

- Review of loan applications;- On-farm appraisal assisted by the shrimp culture extension officer;- Preparation of projected Cash Flows (in current terms);- Determination of duration in accordance with Cash Flows;- Verification of indebtedness of applicants;- Recommendation for approval by Field Officers;- Decision on loan approval by Branch Manager or Regional Manager;- Fulfilling formalities for collateral/contract signature;- Disbursements (if possible to supplier);- Supervision of utilization after each installment;- Periodical visits to Borrowers for supervision purposes

(one in two months);- Recovery:

i) Notice of repayment one month before due date,Xii) Collection at harvest time through Recovery Agents;

- Keep permanent records of project transactions;- Prepare quarterly statements of loans disbursed, fallen due,

recovery, etc., for Regional Office; and- Prepare withdrawal application to BB (Regional PCI Office).

3. The Extension Service would be responsible for:

- Preparation of technical details;- Production plan;- Input requirements;- Investments necessary for groups of farmers, yield estimates

and projection; and- Preparation of loan application.

EANCLADEIN

SHRIMP CULTURE PROJECT

Economic Export Parity Price I/for Black Tiger Shriun of 21-25 Shriua u-r lb Count (Headless)

(Constant Novmber 1985 Prices)

~ St:e Unit Oct. 1984 Nov. 1985 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91& nwsLlds

C & F Japan US$/kg/headlecs 10.50 10.46 10.46 10.51 10.56 10.62 10.67 10.72

Leas Freight, Unloading US$/kg/headleas 0.3AI 0.35 0,35 0.35 Q .35 0.35 9,35 0.35

FOB Bangladesh UMS/kg/headleas 10.15 10.11 10.11 10.16 10.21 10.27 10.32 10.37 D

Exchange Rate Tk/US* 26 30 30 30 30 30 30 30

FOB Bangladesh Tk/kg/headless 264 303 303 305 306 308 310 311Less Transport & Handling between

Processor and Ship V Tk/kg/headlevs 2 2 2 2 2 2 2 2

Leas Processing Cost V Tk/kg/headleas 20 22 22 22 22 22 22 22Less Transport and Marketing Cost

between Farmgate and Processor 2/ Tk/kg/headleas 24A 27 ..L 27 27 27 27

Farmgate Price Tk/kg/headleas 218 252 252 254 255 257 259 260

Farmgate Price Tk/kg/head-on 3J 142 164 164 165 166 167 168 169

1J This table is derived from the financial price table for the same type of shrimp.O2 Financial cost multiplied with SCI of 0.8.3/ Factor 0.65 for conversion from headless to head-on farmgate price.

-60-Nm.E ANNM 3

SIM ClTWIE PUSECT Table 2

INCENETAL WIERTS -OCOSTS

TK (0001

1 2 3 4 3 6 7 B 9 10-19 20

IIEN TAL EIEFITS

SHIDEW F111I EXWITAILE 51HRIP - - 12797.0 6932.0 12356.0 1UI13.0 2004S1.0 226192.0 226192.0 1m.0 226192.0NISCELLAIEEI FISH S HRIII - - 3373.0 9592.0 19195.0 30043.0 35s.0 36631.0 366.0 366.0 36631.0PADY - - - 351.0 545.0 718.0 716.0 712.0 706.0 704.0 704.0

STElSEI; .IJNEIIIE SIRID - 1020.0 3640.0 9100.0 17290.0 20020.0 20020.0 20020.0 20020.0 20020.0 20020.0

SUTOTAL INCDRJTAL BEIEFITS - 1820.0 19810.0 U95.0 16236.0 236694.0 256494.0 293555.0 293551.0 293547.0 293347.0

IEJITIL COSTS

911-fShUOCeTS: INESTIET 6230.0 33009.2 105261.0 6693.0 7030.0 - - - - - -M97 .0:EECIWtDIT - 44.0 1200.0 2905.0 3669.0 7917.0 3677.0 3677.0 3677.0 3677.0 3677.0

SHERIP raNS : IwNESTue - - 322.0 m941S.0 11.0 - - - - - -2913.0:RECEWRET - - 3019.0 30272.0 37139.0 46233.0 4633.0 46233.0 46233.0 46233.0 46233.0

PIU : IIESNT 2554.0 31225.0 1105.0 - - - - - - - -12514.0:EURREIIT 1965.0 7m.0 7239.0 7260.0 7268.0 6433.0 643E.0 643B.0 6433.0 6439.0 6439.0

IB : DWESTIET 3125.0 2373.0 - 753.0 - - - - - - -: RECIENT 5520.0 6244.0 6244.0 6452.0 6452.0 6452.0 - - - - -

PRIV. HATIERIES: IJ TNJESI1ENT 867.0 2024.0 - 21900.0 10690.0 - - - - - -676.0:RECIFJIT - - 2B63.0 467B.0 4569.0 4B69.0 4569.0 4969.0 4369.0 4369.0 4369.0

TAP IRAINJN : IESTIET 1415.0 26.1.0 39.0 - 691.0 -473.0 - - - - -: RECURRENT 13766.0 20674.0 1373.0 16954.0 11314.0 - - - - - -

HARIETINIS : INVESTIENT - 2562.0 5124.0 875.0 327.0 - - - - - -1395.0

SUBTOTAL INIICENTM COSTS 59506.0 129531.0 1B1101.0 1M67.0 107140.0 71331.0 61217.0 63217.0 61217.0 617.0 -13951.0

INCRETM E IETEBITS

TOTAL INCRETAL NET EDETS -39506.0 -126711.0 -161291.0 -IO772.0 5446.0 16363.0 19527.0 222339.0 2234.0 222330.0 369493.0

faovmber 229 1985 o9:20

-61- AM= 3Table 3

BANGLADESH

SHRIMP CULTULRE PROJECT

Economic hnalvsJi.

EconmicRate of Return

(a) Project Base Case 27

(b) Project costs increase 20Z 22

(c) Project benefits decrease 20X 20

(d) Project benefits lag 2 years 18

(e) Project benefits decrease 43Z 12

(f) Project costs increase 761 12

(g) Project benefits lag 5 years 12

(h) Construction of shrimp farminfrastructure, on-farm investments,incremental farm operating costsand benefits from shrimp productionlagged two years 22

(i) Investment in additional projectarea is made but no incrementalyield occurs 24

BUNIGLADESH

SRRIKP CULTURE PROJECT

Financial Export Parity Price of Black Titer ShriaDs of 21-25 Shrim per lb Count (Beadlegi)(constant November 1985 Prices)

Period Oct. 84 Nov. 85 / 85/86 2] 86/87 87/88 88/89 89/90 90/91& Onwards

Item Unit Proiect Year 1 2 3 4 5 6 - 20

C 6 F Japan US$/kg headless 10.50 10.46 10.46 10.51 10.56 10.62 10.67 10.72

Less Freight, Unloading US$/kg headless 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35

FOB Bangladesh U/ SS/kg headless 10.15 10.11 10.11 10.16 10.21 10.27 10.34 10.37

Exchange Rate Tk/US$ 26 30 30 30 30 30 30 30

FOB Bangladesh Tk/kg headless 264 303 303 305 306 308 310 311

Less Exportt ax YJ fk/kg headless 1 2 2 2 2 3 3 4Less Transport and Handling

between Processor and Ship Tk/kg headless 3 3 3 3 3 . 3 3

Price at Processing Plant Tk/kg headless 260 298 298 300 301 302 304 304

Less Processing Cost/Kargin Tk/kg headless 25 28 28 28 28 2828 28

Processor Buying Price Tk/kg headless 235 270 270 272 273 274 276 276Leos Transport and Karketing Costs

from Faugate to Processor Tk/kg headless 30 341 34 34 34 34 34 34

Farugate Price Tf/kg headless 215 236 236 238 239 240 242 242

Faragate Price g/ Tk/kg headon 140 153 153 155 155 156 157 157

11 Inflators for period between October 1984 and November 1985: Foreign prices/costs 0.993; local costs 1.133.]/ Constant November 1985 prices for 1985/86 and onwards.IJ Cbalna, Cbittagong.g. The export tax was 0.51 at the time of appraisal, but reportedly has been lifted in the

first balf of FY85. For the above calculation it im assumed that the 0.5% tax continues and theproject induced export tax is added. Project induced incrermental export tax is assumed to beO.1 in 1988/89 and 1989/90, and 0.71 in 1990/91 and 1991/92, and 0.91 in the following years.Total export tax vould thus increase from 0.9Z in 1988/89 and 1989/90, to 1.2Z in the two followingyears and to 1.41 thereafter.

J Factor 0.65 for conversion from headless to head-on farogate price.

-63- ANNEX 4Table 2

B&NGLADESH

SHRIMP CULTURE PROJECT

Financial Analysis for Sbrium Farms and Hatcheries (Z)

Values ChangeBase Switching Operating Investment

Investment ERR BenefitsC08t Costs Costs

30 ha shrimp/paddyrotation 119 -68 209 1,223

30 ha shrimp/saltrotation 118 -68 213 1,211

40 ha shrimpmonoculture 119 -62 205 737

Shrimp hatchery 30 -38 131 110

Table 131 IV W.I N FLTPage I

TAKE 4.2 U3DUiF LgCL 30-lu O Fare Nh

(In Tk 00)

FT

Ultiamut 11th Proiert

1 2 3 4 5 to 20 1 2 3 4 5 6 7 to 2

Ex. tir d1w Ia 234. 27.15 237.15 23.43 260.21 2I4.09 522.45 697.30 79.34 M35.40 W.4A 605.43 II5A4Ew. ddt. udiw lb 21.14 M3. 23.56 2.56 2J.77 23.14 60.75 81.60 102.00 102.75 102.75 102.75 102.75Ex. trem Weer s1w le 19.0 19.50 11.5t 19.5 19.80 19.2 42.90 3.50 72.15 73.26 73.2 73.2 73.26fuse. tisb ad shJo Id 74.70 74.70 74.70 74.70 74.70 74.70 149.40 224.10 261.45 261.45 261.45 2U.45 261.45PadbLW I Vuiab 242.73251.2J2 11226.6 266.67242.n 20.12 2U.33 201.34 230.34 20.34 230.34 20.34

-To Nan Prdotim 59J. 1 U0.98 61.03 U .152B11 5g13.3 1036.2 19330.60 1I5957 1603.28 1403.21 103.2B 1603.2B

Wi-far C_mmmtiuRise. fish ad shr.im /d 39 3.9 3.9 3.90 3.1 3.93 3.93 3.t8 3.90 3.t9 3.91 3.98 3.93P_IWIocu1 varie 5.47 15.47 5.47 35.47 J5.47?547 5.47 15.47 E5.4 5.47 5.47 J5.47 85.47

SWTo:l S-Fm C_NtixM 1W.45 39.45 89.45 3AS.45 3.45 19.45 39.45 A.45 39.45 39.45 39.45 39.45 89.45

.. a:w 01 Prajetiun 59W.41 521.33 5Dt.S 31 540.9 509.41 97.17 1,240.62 1,551.33 1,51343 1,513.13 1513.93 1#513.133LS 55.41 521.53 S23.3 5M35 560.69 55.41 97.1 1240.62 156.33 13133 1,513.83 15.3 13513.83

Pr0tim cast

Civil lars ad _Em t 357.81 - - - - - - -

InutsJaule dri_ _ - - - - - - 54.4 38.53 i29. 129.39 i2.3 12.3 1.39Nint. civil sets 1 _az t 24.96 24.9 24.% 24.96 24.96 24.96 3.33 3.33 38.3 31.33 33.03 3.33 3.J3IAI?IStUIEtuIVdmhI - - - - - - - 31. 23.80 43.50 39.75 5S.40 3.40 55.40Riseuliuumu 1 ui. 14.0 14.0 14.3 14.0 14 14.3B 19.14 19.14 19.14 1.14 19.14 19.14 19.14P-- sd - 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79 4.79OM, - - - - - - 2.06 2.74 3.43 3.43 3.43 3.43 3.43Ser Im - - - - - - 1.97 2.63 3.29 3. 32 3.2 3.29Hired hullcks 14.67 14.0 14.7 14.67 14.67 14.67 14.67 14.67 14. 14.67 14.67 14.67 14.6

-Totl 1ut, 59.2 59.2? 59.2 .2929 59. 217.43 25t.12 307.03 303.23 313.93 3i3.93 313.93Nired LOar

mra. hired lar 20.16 20.16 20.16 20.16 20.16 .6 20.16 20.16 20-16 25.16 20.16 20.16 20.16I_g..gt 11.13 il.13 11.13 11.13 11.13 11.13 U.13 11.13 11.13 U.13 lr.13 11.13 11.13

b-Tota Hired Labor 31.29 31.2 312 . 31.2 31.29 31.2 31.2 31.29 31.29 31.2 31.29 31.29

-Ta1 beratin 90.3 . 90.395.5 90.SI 9SO.53 248.72 231.41 331.32 334.D7 345.2V 345.22 345.22

*TOa Preztm cost "0.SI 0.38 0.53 9.S3 90.3B 44.39 248.72 2 .41 338.32 334.57 345.22 345.22 365.22

-65-

Table 1Page 2

U91U F1-3 41.13 43C." 47." 44J7 4.0.11 M* 69344 9.21 1.1IQ.01 l, 6 1,143.61 I1.U 1,6S31

FM FlLY 1i5S IBM FnIE 503.2 SADU W 5.52 M9.56 1.47 .90 143.d DIV.* l.awn 1,2M.06 1,239.01 1,23.6

Sns, 11t Famc3h*.uu.ats b Ln1 Tmo - - - - -L.o3 - - _ _ _ siavmmts on gbt T Lw - - - - - . 23.72 Z25.13 262.9 13.3 13.09 130 13.WTrait Fm Prai ftr -d 90.3 96.3 0.3 9 3 35.70 - 56.23 13.33 2r.74 267.13 217.13 207.13Ls Tranift, To bit FMWi 90.3 6.3 93 93 93 - 5.2 135.33 20.74 207.13 207.13 207.13 207.13

5hTu1 Soo 1 Finoc - - - - - 443.39 192mM 14.09 17 V. 4 1M3.0 130 133.0

L1O TM Principal - - - - - - - 54.32 13.t1 73.0 84.79 3. -L1A Tm Jatewost - - - - - - - 9.77 M1N 41.00 29.30 15.74 -Sint Tom riacbu - - - - - 90.3 26372 5.t3 202.9 133.13 13.09 130 13.099St TOMn Jut - - - - - 7.25 19.90 1MA1 24 10.71 11.5 11.05 11.05

Tatal L nu - - - - - 97.33 26.62 W.23 3.32 23.62 263.22 263. 149.13

IElT F C - - - - - D0 -76.13 -211.14 -1974 -13.13 -12S.13 -125.13 -S1A5

CMl Rl WM8 FDIMD 41E.i 430.94 3." 443.01 451.11 411.3 1.26 743.07 972.37 14 1.43 1.03.4 I5746

FM F l WFn5 W FIZr 3.3 4D WO.45 W7.32 5.56 511A03 772 3m.n 1,061.73 1137M. 1 .93 1137.93 1P247A

bor 21 1Z 5 .07

-66- A 5Table 2

IAHAII Page 19 aLCrT FULECT

TALE 6.2 UISALT 30-a OM Fa. IlfDUL

(In ik '001)

FT

Vithmut withi Projuct

1 2 3 4 St20 1 2 3 4 5 6 7 8to20==Z= B= smug _xm =_= z_e GzzS=s zx~z2z=ZZ=

main PioductianExo. titer srip la 234.69 237.15 237.15 238.63 240.21 234.69 S5.45 697.0 379.4 35.41 15.41 8.43 M5.43Exo. white shrim b 21.14 25.35 23.56 23.56 23.77 23.14 60.75 3.60 102.60 10275 102.75 102.75 102.75Ex. fsbh water shrim /c 19.2D 19.50 19.50 19.50 19.30 19.20 42."0 3.30 72.15 73.26 73.2 73.21 73.26llisc. fish srid /d s4d74.70 74.70 74.70 7.0 74.70 74.70 14.40 224.16 261.45 2U1.4S 261.45 261.45 261.45Salt 500.54 590.54590.54590.54 59O.54590.54 50.54 90.54 590.54 59.54 590.54 590.545 0.54

Sub-Tatal Fain Productio 946.67 95.24 950.45 9." 9 4.02 946.7 1,36.04 1,62.24 905.9B 1,913.4 1,913.48 1913.4A 1,913.49

Ob-far CnsumptionMixS. fish nd shriw Jd 3.9B 3.98 3.99 3.96 3.93 3.93 3.93 3.93 3.98 3.98 3.98 3.93 3.9B

Net Ualw ot Prduttime 942.6 946.26 946.47 943.00 950.04 942.L, 1,365.06 19643.26 1,902.00 1909.50 1,99.50 1,909.5t0 I909.50BFLOD 942.69 941.26 946.47 943.00 950.04 942.69 l,313.06 19648.2 1,902.001 909.50 l,909.50 1i909. 1s909.50

Productio Cost~w tm

Civil Vurks and Eguirunt - - - 357.01 -perating

Juvenile shrimp - - - - 54.4 MM3 123 129.39 129.39 12.39 129.9faint. civil ,rks * umupen 24.96 24.96 24.96 24.96 24.96 24.96 88.83 83.3 0383 U.S 8.33 19.33 .83.3Infrastructure dare - - - - - - 31.50 23.0 43.50 39.75 50.40 50.40 50.40niscedlmas durges --. 49 9.49 3.49 3.n 3.49 3.49 12.75 12.75 12.75 12.75 12.75 12.75 12.75Embnkent Rapir 8 96.4 P6.64 86.64 86.64 36.64 06.64 3 6.4 316 4 86.64 B6.64 3 6.64 6.64 3164Replacnt Minor Itms 25.98 25.98 25.98 25.93 25.98 25.98 25.98 25.93 25.93 25.98 25.98 25.98 25.98

Su-Total lRuts 146.07 146.07 146.07 146.7 146.07 146.07 30.13 331. 37.09 33.34 393.99 33.99 393.99Hired Labor

"bsk. hired labor 274.03 274.09 274.0 274.06 24.03274.03 274.03 274.03 274.06 274.09 274.03 274.06 274.0maaetmt 11.13 11.13 11.13 11.13 11.13 11.13 U1.13 11.13 11.13 11.13 11.13 11.13 11.13

ubTotl Hired Labor 295.21 205.21 295.21 25.21 25.21205.21 23s.21 2Js.3 295.21 295.21 295.21 205.21 235.21

SubToalIperatinM 431.23 431.23 431.23 431.2 2 431.23 431. 505.39 616.74 62.30 663.55 69.20 679.2 67920

Sub-Total Prduction Cost 431. 431.23 431.28 431.3 431.23 739.09 55.39 616.74 672.30 663.55 679. 679.20 679.20

-67- ANNlA 5Table 2Page 2

en Fni Iff13 FIlllO 511.41 514. 935119 516. 513.76 151.0 779.7 1i@31.52 1,229.70 1.240.95 1.230.30 1,230.3D 19230.30

FM FmILY SIulEI FDIWM 515.39 518.% 519.17 W.70 52,74 157.53 73.65 1435.50 1,233.63 1,244.93 1R234.2 1,234.23 1,234.2B

Smurs Of Financrisburit 0S LanE Ter Loan - - - - - 322.03 - - - - - - -

ilaauints ab Shrt Term - - - - - 431.28 W5.39 493.39 403.38 267.42 271m.6 271.68 271.6BTrwmftr Fm Previwus Period 431.28 431.2B 431.2B 431.2B 431.23 35.76 - 123.35 268.92 401.13 407.52 407.52 407.52Los Tru?e To Net PerIo 431.2S 431.23 431.2 431.23 11 - 123.35 268.92 401.13 407.52 407.52 407.52 407.52

-Tatal Sm Of Fioa - - - - - 739.09 462.04 347.92 21.17 261.03 271.68 271.68 271.68

Lam RueAntsLora Tore hindpal - - - - - - - 54.32 63.01 73.09 34.79 99.35 -LownTore Interest - - - - .n77 Si.0O 41.00 29.30 1S.74 -Short Tom Princ-al - - - - 431.2B 5.39 493.39 403.3B 267.42 21.68 271.68 271.69Shrt Ttre Interest - - - - - 34.50 46.03 39.47 32.27 21.39 21.73 21.73 21.73

S6-Tatal LOa RwfIU - - -- - 465.76 632.22 646.95 549.74 402.90 407.50 07.S0 293.41

MET FDWEIA I - - - - - 2.31 -170.19 -2Y9.13 -273.57 -141.97 -U15.82 -135.92 -21.73

Wl FLUB FMR FIIAEII 511.41 514.93 515.19 516.72 513.76 476.0 609.49 732.39 9.13 1,099.09 19094.49 1.094.49 1.20B.56

FmN FlLY IJEFITS WMER F DAN 515.39 51B.96 59.17 520.70 522.74 490.89 613.47 736.37 55.11 1W,13.06 1,099.46 1s099.46 1,212.55

_--der 21, IMS IS:OB

-68- ANNETable 3Page 1

tED?OLUNFWCTAKE 3.2 UEIVDIWlTM7 40-ha Faor MIi

FIE UOIET(Inl 1k 'M

FT

Mitmut ViLi Project

1 2 3 4 5 t 20 1 2 3 4 5 6 7 1 to 20

IbLn ProduciExr. lir shrt w /a 459.00 465.00 465.00 46U.00 471.00 691.56 1,401.20 1,643.00 132.00 liUBB4.00 I,4.00 1.834.00 1l334.00Exr. Ait. shrll /b 53.60 54.00 54.40 54.40 54.00 80.40 1U.00 190.40 217.60 219.20 219.20 219.20 219.20Emr. fruob m.r shrli /c 33.40 3.00 39.00 3N.00 39.40 56.32 114.40 130.0 1.00 115.40 153.40 1L5.40 153.40Nise. fish ad s1ip d 9.60 9.60 99.60 9.60 99. 199.20 293.3 343.60 39.40 398.40 33.40 39.40 398.40

Sub-Total hain Proiwtin 45.60 657.60 63.0 661.00 665.00 I0e27.4s 19976.40 2,312.00 2,644.00 2e460.00 2M66000 24660.00 29660.00

Om-Fare ContaioNise. fish ad sbriw Id 7.97 7.97 7.97 7.97 7.97 7.97 7.97 7.97 7.97 7.97 7.97 7.7 7.97

Nut vulw Kr Probdution 642.63 649.63 50.03 653.03 657.03 1,019.51 1,963.43 2,304.03 2.136.03 29632.03 2W6s2.03 29652.03 2462.03DFLUZ 642.6 649.63 60.03 653.03 657.03 1M019.51 1,963.43 2P394.03 2,636.03 2.02.03 2,652.03 2.652.03 2.452.53

Proction Cost

Civil Moks and Eudaint 19136.1 - - - - - - -

gill - - - - - 79.45 2w4.73 272.40 2.34 322.34 3.34 3m2.34 2.34hlint. civil works I nunt 135.83 11354. 135.34 133.34 15.34 135.34 260.04 260.04 210.04 240.0* 260.04 260.04 260.04Law fu 53.16 53.16 53.16 3.16 53.16 3.16 53.16 53.16 53.16 53.16 53.16 53.16 53.16Infr,stacturu duriw - - - - - - 42.00 31.40 53.00 53.00 67.20 7.2 67.20NisuLres duarms . 6.36 6.36 6.36 6.36 6.36 15.96 31.3 43.30 95.63 95.63 ss.6 95.8 95.68

Sib-Tatl lzuts 195.36 195.36 195.36 195.36 195.36 M4.41 113 637.80 789.22 734.22 798.42 79.42 793.42Urid Labor

.us. hired labor 30.64 80.64 3.64 80.64 80.64 80.64 30.64 30.64 0.64 80.64 00.44 00.64 30.64hlagmt 19.03 19.03 19.03 19.03 19.03 19.03 19.03 19.03B 19.0B 19.0 19.03 19.03 19.03

Sub-Teal Hired Lbor n.72 s.72 n.72 .n72 n.72 n.72 9.72 .72 s.72 9.72 n. 99.72 .n72

bTOtia eatis 295.00 295.0B 295.0 295.03 295.03 384.13 711m.3 787.52 M.94 333.94 393.14 M3.14 B98.14

Sub-Total Pruction Cost 295.03 295.0B 295.0e295.03 295.081,571.01 711.53 787.52 8.94 333.94 M.14 M93.14 3M3.14

Table 3page 2

riu nom urE rnaut 347.3 354.35 354.9 157.95 361.9 -31.31 1.6.90 1516.51 1747.09 1,76.0N 175.1 1753.3f I753.39

FMI FAZRLY mnsEI W f EN 335.2 32.32 362.92 365.92 39.92 -43.33 12414.V 1,524.41 1.U.06 19776.06 1.761.56 Il.3 1." l.761.36

Sear,. Or Fant.kidburuuunt On Lii Tur Lan - - 1n06.19 - - - - - - -

hi*ursNU On Shrt Turm Lon - - - - - 34.13 711.53 630.02 53.36 353.3 359.26 359.26 359.26TrmnsFr Fro Pruvious Ploed 25.l 295.0 295M. 295.06 295.06 111.6 - 157.50 355.3 530.36 53B.3 531.1 53.3Lu Traider To h.t Ptuied 295.08 295.0 215.06 295.0 295.06 - 157.50 35.B 530.6 su.u sl.8 533B.3 533.

IT-OU Smwu Of Fnn - - - - - I,571.01 554.03 431.94 353.3 35.06 3P.26 339.26 359.26

Leg Turn Prinewal - - - - - - - 110.13 259.01 242.45 231.24 326.24Lora Trn Inteust - - - - - - - 193S 10.43 35.9" 97.20 52.20 -

shrt Tom Princpal - - - - - 34.13 711.3 630.02 m3.36 3S3.3 359.26 39.26 359.26Shrt TMt Jtun"st - - - - - 30.73 56.92 50.40 42.47 2.29 28.74 2B.74 28.74

ur-etal Lea Iuuuits - - - - - 414.36 76.45 1POW.35 954.47 760.30 76.43 76.43 314.00

fT FIIXI - - - - - 1,156.15 -214.43 -6.91 -595.3 -415.24 -407.17 -407.17 -23.74

CUSH FLN WII E FDlWEl 347-.55 354.53 354.95 357.9 361.95 604.65 £.042.43 399.61 liSl.20 133.51. IU346.72 1.346.72 1,725.15

FIN F IEY IEJITS WMI FDI WI 355.52 362.52 362.92 363.92 369.92 612.42 1.0SD.44 99?.5 1,159.17 1U60.12 1.354.6 1.54.69 IPM.12

:_nter 21n I1 15:09

-TO-

Table 4

UNGLADESM

Shrian Culture Proiect

Financial Nodel for a 10 gillion Shrin Hatchber, i1(Constant November 85 Tk '000)

Year I Year 2 to 20

I. GROSS SALES 3/ 1.135 2,270

II. INVESTHEUT COSTS M

k. Land Acquisition 0.40 ba - 75B. luildinas

Indoor Hatchery and office 9625 sq ft - 2,971Nachinery House 520 sq ft - 178Service Building and Store 2150 sq ft - 737Spawner and Larval Cisterns - 280

(indoor)Larval and Plankton Tanks 311

(outdoor)Water Storage Tanks - 205Water Tower - 89Architecte Fee 'Subtotal Buildings 5383

C. ninuiment

Generator (15 Kw) 1 pC - 146Electric Water Pimp 4 pc - 35

(I hp)Portable Pump (2 hp) 2 pe - 128Air Compressor (1 hp) 1 pC - 146Plastic tanks (1 cu.-m

3.5 cu. & 0.3 cum) 3 pc - 140Water Testing Instruments 1 set - 82Hand Tools and Misc.

Equipment 1 set - 3Subtotal Equipment 712

Total Investment Costs 6,095

III. OPERATING COSTS

Building & Tanks #( 161 161Equipment 5/ 107 178Feeds & Chemicals .1 49 80Wages 71 148 148Nisc. .j _Total 520 622

Net Income before Financing 612 1,648

LI Without residential buildings..?J Annual production of juvenile shrimp (20-25 days after the post

larval stage) is expected to be 5 million in year 1 and 10 millionin year 2 and onvards. The current price for juvenile sbrimp atsuch sizes is Tk 227 per 1,000 on average.

.2, Physical contingencies are included in total value of investmentat the rate of 20% for buildings and tanks.

Al 3% of cost of buildings and tanks..J 151 of cost of equipment in first year. 25S tbereafter.V/ Feeds for both juvenile and broodatock hrimp.21 Manager 12 a/m e Tk 4,250/month, technicians 36 .1. e Tk 2,660/outh.

-71- ANNEX 6

BANGLADESH

SHRIMP CULTURE PROJECT

Proiection of Quarterly IDA Disbursements

Fiscal Year and Quarter Durina Quarter CumulativeUS$ N SDR M US$ M SDRM

FY87I 1.6 1.5 1.6 1.5II 0.0 0.0 1.6 1.5III 0.0 0.0 1.6 1.5IV 0.0 0.0 1.6 1.5

:Y88I 0.0 0.0 1.6 1.5II 0.1 0.1 1.7 1.6III 0.9 0.8 2.6 2.4IV 1.4 1.3 4.0 3.7

FT89I 0.8 0.8 4.8 4.5II 1.2 1.1 6.0 5.6III 1.7 1.6 7.7 7.2IV 2.0 1.9 9.7 9.1

,w0X 0.6 0.5 10.3 9.6TT 1.1 1.1 11.4 10.7III 1.4 1.3 12.8 12.0IV 1.7 1.6 14.5 13.6

FY91I 0.6 0.5 15.1 14.1II 0.9 0.9 16.0 15.0III 1.1 1.0 17.1 16.0IV 1.4 1.3 18.5 17.3

FY92I 0.5 0.5 19.0 17.8II 0.6 0.5 19.6 18.3III 0.7 0.7 20.3 19.0IV 1.0 1.0 21.3 20.0

FY93I 0.4 0.3 21.7 20.3II 0.3 0.3 22.0 20.6

ANNEX 7-72-

BANGLADESH

SHRIMP CULTURE PROJECT

Selection Criteria and Credit Support Conditions for Additional Project Areas(Those SuDuorted Only bv the Provision of Extension Services. Credit and Trainina)

1. Area selection and shrimp farming infrastructure of project areaswith extension, training and credit only (the Additional Project Areas)should follow very closely the criteria and technicel standards employed forthe project areas with public shrimp farming infrastructure (the Main ProjectArea). The criteria for selection of locations involve a number of physicalrequirements and suitability for the introduction of extensive shrimp farmingpractices without adverse effects on existing land-use patterns (para 3.05 ofSAR).

2. Shrimp culture in the three main shrimp-farming modes - shrimp/saltin rotation, shrimplpaddy in rotation and shrimp monoculture could be sup-ported under this project component.

3. The existing peripheral embankments of the selected polders mustbe of good standards to assure that shrimp culture and agriculturalactivities are safe from flooding.

4. A fundamental requirement is a sufficient supply of saline waterthat can be controlled and easily provided to shrimp fields. Locations musttherefore be close to waterways having adequate salinity levels in theshrimp-farming season. The tidal characteristics of the waterway and theelevation of the proposed land for development must be such that the land canbe flooded by gravity flow during the relatively short and intermittentperiods of high spring tides which increase in level in the early part of theshrimp-farming season. Rapid filling is desirable and as a minimum require-ment ponds should be capable of filling to an average depth of two feet inless than 45 days and should reach a depth of three feet by mid-season.Besides the dimension and quality of the water control structures, the criti-cal factor for rapid filling is an adequate level of water at high tidesabove the land surface. Areas for development and project supported watercontrol structures must allow this rapid filling.

5. Rapid and complete drainage of shrimp fields is required for anumber of reasons; namely, to facilitate speedy transition from one mode toanother, allow the effective flushing away of saline water in shrimp/paddymodes, and to allow the ground to be drained, dried, and exposed to theatmosphere as a conditioning treatment necessary for enhanced shrimp produc-tion. The topography of the selected areas must facilitate drainage and thelayout of shrimp-farming blocks and the water control structures will have toprovide for drainage at the lowest parts in the area.

-73- ANNEX 7Page 2

6. The enclosing embankments for shrimp farming areas are subject tothe conditions of exposure obtaining in the tidal water areas which surroundthem. Areas of exposure to severe wave action are to be avoided because thecosts of providing protective works would be significant.

7. Provision must be made in developing shrimp-farming areas forprevention of any adverse effects to neighboring areas. The possibility ofseepage of saline waters into agricultural land must be avoided and whereshrimp lands are developed along the tidal margins of land areas under otheruses, provision must be retained for the latter to be fully drained independ-ent of the water management requirements in the shrimp-farming blocks. Theembankments separating the shrimp farms from other land must be built to thestandard identical to those applied in the Main Project Area.

8. In planning the development of shrimp-farming areas, existingcommnmication must be preserved and the requirements of homestead, drinkingwater supply and areas for livestock grazing must be taken into account.

9. The area selected must have been under shrimp culture during partsof the preceding two years or be wasteland.

10. The financial rate of return on total investment in the sub-projectshould be above 25Z.

11. For the Additional Project Areas public investment funds forinfrastructure would not be made available under this project, and funds tobuild or rehabilitate infrastructure would have to be financed by credit toindividual shrimp farmers or groups of shrimp farmers.

12. Benefiting land owners should indicate: (i) support for theproject; and (ii) willingness to participate with their land, either directlyor on a lease basis, in shrimp farming operations. The consultant working onshrimp farming group formation must have investigated the area and confirmedthis.

13. PIU and BWDB must formally agree to the area selection, as well asthe standards and layout of existing and proposed water control structures.BWDB should supervise whether the standards agreed at credit approval havebeen followed by the shrimp farmers or sbrimp farming groups. Non-compliancewould lead to withdrawal of salt water intake permits.

14. Credit should be disbursed in tranches to foster maintenance ofstandards agreed at credit approval.

15. Subproject proposals for each individual sub-area prepared by PIUand agreed to by BWDB would be submitted to IDA for approval.

16. The polders selected by PIU and agreed to by BWDB would conform tothe above selection criteria and be submitted to IDA to be approved forinclusion in the Project.

-T4- ^ANI 7Table 1

BANGLADESH

SHRI?P CULTURE PROJECT

I. Staffint Recuiremente for PIV

Latest Recruitment TimeNumber of in Nonths After

Position Level frgitij n Credit Effectiveness

Project Director PSO JJ 1 °Dep. Director Administration Dep. Dir 1 3Ass. Director Extension 880 Z 1 °0 /

1 6Planning and Budgeting Officer SO Al 1 3Procurment Officer SO M 1 6Monitoring and Evaluation Officer SSO U 1 3Accounting Officer SO i4/ 1 9Personnel and Admin. Officer 80 A/ 1 9Executive Engineer 8SO J 1 3Assistant Engineer SO A 1 9Read Mobile Extension Unit SO A 1 3

1 6Extension Officers Class I1 3 3

3 9Extension Assistants 14th Grade 6 3

6 9Ass. Director DFCT S90 3J 1 3

sso 2U 1 9Subject Matter Specialists 880 ;J 2 3

2 62 12

Ass. Director Hatchery 8S0 3/ 1 91 12

Hatchery Supervisor SO A 1 91 12

Hatchery Officer Class II 2 92 12

D?CT Supervisor SO Al 1 3SOI 1 9

DFCT Assistants 14th Grade 2 32 9

II. Staffinn Reauirements for_ _BDB

Latest RecruitmentNumber of Time in Months After

Position Positions Credit Effectiveness

Superintending Engineer/Coordinator 2 0 °iExecutive Engineer 1 3

1 6Assistant Engineer 3 3

3 9Assistant Technical Officer 2 6Sectional Officer 3 3

3 94 15

A} Principal Scientific Officert Senior Scientific OfficerJ/ Condition of EffectivenessA Scientific Officer

-75-ANWEX 8

BANGLADESH

SHRIMP CULTURE PROJECT

Selected Documents and Data Available in the Proiect File

A. Selected Reports. Studies and Documents Related to the Proiect

1. Coastal Aquaculture Project, Preparation Report - World Bank, May 1983

2. Fishery Subsector Review - World Bank, December 1983

3. Bangladesh Coastal Aquaculture Project, Engineering Study - DevelopmentConsultancy Services Ltd. and Engineering Consultancy Services andAssociates Ltd. Dhaka, August 1984.

- Volume I- Hydraulic and Structural Design Type A- Design Details Regulators, Drawings A1-A7

4. Small Scale Water Control Structures, Bangladesh Coastal Zone Overview- Northwest Hydraulic Consultants Ltd. North Vancouver, Canada,

August 1984

5. Bangladesh Coastal Aquaculture Project, Report on Socio-EconomicStudy - Development Consultancy Services Ltd. and EngineeringConsultancy Services and Associates Ltd. Dhaka, February 1985.

6. Plan and Estimate for Construction of a Multi-Storied Building of theDirectorate of Fisheries, Dhaka - PND, November 1982

B. Selected Working Papers and Tables Pre-ared by Bank Staff

Appendix B.1: Status, Trend and Constraints on the Development of ShrimpCulture Technology- Basic Data of the Fisheries Sector

Appendix B.2: Details on Project Area, Status of Engineering ProjectDescription and Monitoring and Adaptive Research

Appendix B.3: Engineering Aspects- Notes on Estimates of Cost for Engineering Items- Background Notes to the Text and Tables Prepared for

the Engineering Aspects

Appendix B.4: Economic Analysis Data- Assumptions used in the Economic Analysis- Economic Version of Cost Tables- Economic Analysis

-76- ANNEX aPage 2

Appendix B.5: Financial Analysis Data- Farm Models in Constant Terms for Shrimp/Paddy and

Shrimp/Salt Rotation and for Shrimp Monoculture- Same Farm Models in Current Terms- Assumptions for Farm Models- Note on Foreign Exchange and Tax Rate Calculation- Data on Participating Credit Institutions

Appendix B.6: Cost Recovery- Possible Scenarios for Cost Recovery- Tables

Appendix B.7: Draft Terms of Reference for PIU Consultants

Appendix B.8: Detailed Cost Tables

Appendix B.9: Summary Cost Tables

-77-

BANGLADESHSHRIMP CULTURE PROJECT

Overnll ImplementatIon Program

YEAR NUMBER (Jury 31 to June 30)IfEM ACTMTY

1 2 3 4 5

DRY SEASON 7 P 77 - 7P 77

Land ACquSto Buildings - Ser%fce

Imperentaton Sat Rotrrnt _ _ _Unit Equlpnnt Procutrrent_

DOF Headquater Bulidrng _ _ _ _ _ _

BWDB ~~~Deslgnatlon cE StalfEquipment Ptactement

Appoint ConsultantTechnical Baseline SurmreAssistance Farning Group Organizafon& Training Mobile Exten5on Services

In-service Training

Po_d_S _ Englneedng PreparationRompur & Land Acqustion20+20/1 CMI tWorks Cornstruction

On-fan Improvements

Poides Engineering Pmreoatilon6/366/4 | Land AcquWltion& 70 CMI Works Construction

On-frrm Imrrovneents

Additional IdenltilfCdion of AreasProdect Areas. Layout Preparatlon

On-farm Improvements

Land AcquisitionPIlt Technical PRprationShrimnp Construction - Cox's BazarHlotcherlem - Khulna(2 No) Resdences

Eaulpment

| hoafebSh |p Construction (9 No.) I|1_

Farn Constuctbn - Kalgon-PIU - Cors BazorDern Buildinrs - TroiningForms --esIcences

Eauipment Procurerrent

Worid Bonk-30129

BANGLADESHSHRIMP CULTURE PROJECT

Organization of Bangladesh Water DeeCopffent Board(As d October 1984)

CharnD

r M r e n Nbnbor } | b -n w

P di tdon L _ nme | ° .mgoto

Df*ec taLo &

fti~~~~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~osr Zan _C rhn2coaief Ertar" CN_ _N# Ch Er41_ CNd En F;_ l"t _ ^,Ductor _ _ * |~~~~~~~~~~fut . Ca ro NRqZn orti"fih (oo) (R*0 )II EPS a | | Cat0y PL & |tf ,Vot t .

I~~~~~~~~~~~~~~~~he Ia gh ea Ih

Mo~~~~~~~~~othWnwnonI000%v

| X: Eh"_ | ~t ls

~~~~~~~~~~~~IC^I 0"boI

5 mom~ 441100" _

E%*ffwo Mc"l^orErw-~ f

C~~~i lawOAl

-it

~~iISS ll |

§~~~A -i- i@S

BANGLADESHSHRIMP CULTURE PROJECT

Organization Chad Project Implementatlon Unit (PIU)

WenslonotDu Dire

_ SSO . § l? (D.p Dlr Level)

Ext. lo Eil. som~ExcuN' Egiee Pinfl & 2 Hatchery Monciger 2 DernoniStrofaolUnit CosuoobE ExocuBowoEng4 _l) Budgoting Ofcar ( in Caes Baszr DisI.) Fa2m & trIronng

(50 Lovnl)n (SO L('eO)' (1 in Ktuha Ditjct) Cont r M nags

(so _"), (SO . ._._ (SSODO.L L") (1 iCncues BWoor)

I -- I . . 1_ inS Khol;ir4)HExt. Officers Ext. Olikers Ext. Oftcen (550 Do. LOcr --..II I I ~~~~~~~~~~~emRouww Oftcw - - -cce fOmar Chalruno Khulna (50 Eeyol)

(2 ol Closs lOtt Lasl) (2 at Class 11 Off. e ) (2 at CkiO 11ON. LVel) 2 Halche (vsol's

ICI I oxs |aL 6 & H (|Mau

I Exl. A.sLstantS 1 Ext. Asxlonts jj Ext. Astants Ste & EcM. omcoo Specialsts)Ext. Asslstants ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~(80Leel'(SS Le~ml) (4at l4thGrode) (4a1 i4thGrode) | 4 (Aof14 thG4ode) ( IL ? I 1 Htc I

(CIass 110ff (Cb eit ) 1 l

farm & TailnlnAccounting Offwicermvsc

(SO Levl)' (SO Lvel)

A4 Demonsratin

Pe & Admm Officer Faom n TrdAning

IFt0 finck* clanItinc Sldhod2 S enak Scieniffc OfficerI SO = Scionlifc Offc

WoV Ban-27227

-81-

BANGLADESHSHRIMP CULTURE PROJECT

Embankments for Madn Shdmp Forming Inrastrcu

RIVERSIE CrO lG-el t4o LANDSVE

4-6c;3aaDs;t(-) a § 3 r ee YAOV&L k runced b-o Tde +14 (ltiS0 fw AsO GuLe

--- 3~~~~P 77t- 17

SECTlON PA MAIN FLOOD PR07ECTION EMBANKMENTS

Cr est muk Level Aes

LANSE 'I SMPFARMDE

rm77 f7v7/,'',7//////'S/77 7-IGAound Lewel VI. typiooy +d to 7

SECTION 9B-. SECONDAR EMBANKIMENTS

N0741 GI C,e4sOo 6 fOlSo mo lan r adicon ebellw,

2 feiopite 4rrnae to ineceptol Qwto ulo.v sot1eeag

Ns 7Vans. TypicaNv W

be-87 CeSt 4 Above Averae Gron l.6

* K>/77/ r nrF7w77J| 'e fr/ 7 /77/ ////7 channelChionnei Iner 3 BlwM t LvlSDq

Awn -L Avernae G unc Lev

SECinON C-CR SUPPLY/DRAINAGE CHANNR EM8AWCMENIS

1S A1|^ 1 Ara el h ers01asof9olvj /charoIrem

Mbe V sjcvOed into sevewu av,~ Wrya eacho

lv arMi un*DanseReLeronwoed as pw o ale team mvestrierir

c mcx Danage Regulator Pov,de toAss Deslllk/D wtsebe a Drcinage

E rE = - ' : S jr ~~~~~~~~~Ctbnenris AvWbbe

;! 1 s - - I ~~~~~~Seep gDtn

1+ c IA eovels ce refeae

toPWD daum

lRan or Man 9Swmp Farwg Blk(Schemofic)

NOT TO SCALE

w|d NV* -

-82_

BANGLADESHSHRIMP CULTURE PROJECr

REGULATORS FOR MAIN WATER SUPPLY AND DRAINAGEGeneral Afrongement of Typical Supphi/Dlnoge Slruce - Type A

GKSe Uffkg G-em

- i - y ~~~~C +14.5Khuk=D~s

suprrD8Io -C +16.50mtsfiazasrost, t >nooechurnel_l | _|_/ X ~ ~ ~ Tid Vdw eve

SKiing

Ty~~~~ R~~~~ Funcilon ~ ~ ~ ~ sig

A 5*'1--6 o s 1ctJ S'yi71

C 65 I I a| EE ̂y/w

o- - 6 2 Suf O- l* -

/ 6-5 1 S0yOnJr

I \~5 ____ .rGuide

0~~~~~~~~~~~~~~~~~Mi R , 'tk

5OOCa 5ji -ix oe Bric _ __w

ToCm Block Culr fnn

RD"ORS RE2UIREDS _N

H 45 56 2 W /flc~~~ ~~~~~~~~~~~~~~~~~~~ 6 _ _ _ _iai

-83-

BANGLADESHSHRIMP CULTURE PROJECT

Farm Improvements, Embankments and Regulators

Fawn Water 9Sup1l and Dmaage Regula

SupplV/Dalnrge Chonnel to Main Bbck

bm the a-edit Pfovi5loDdingErfbaramn

tB F . t Hve andanet e

Pond -Mkx)6 fr B-&m

A/2 NomInaA a As e

. ~ ~ ~~~~~~~~~~~~~~~A A|

The outer pt1nmeter of and is UaSLK th_VAcetunensites wouldbi Pwvided undrar

< mdn ShdmP Famz(see Figue 26) -

Paet Plan sh hvm* spfomu*dowog mwaad haeodionrow to bme pidded unde8 lr faf bMece fctu The araenX"o fis

s3wrof Thnbe dricw ultoeglaos of prexrrt requed temshave aK*deqaNo tes.. Enbagormty s hr tida ZS5 si sJate and o aest heht da 4a

above oveae 9"dO klwel- Crest width is A2 B 10rA -a2

2Z Nkan ran §zes of 60haL 30rwa ana 20ha Would be, MespecnWv*.1/2. 114. ancl 1/6 oft he avroe sized mriin avrrp Rgyf bo:kAcU szswLd t6 dd bv R>d ownershi pOte ndtopogrihiC detoil.

3 Trer or brr- buM eoubatc are mqied 10 ha adeqjotecdbciy for tidal supdo wocer cod lor scrfe storm ckoirnoge.

WOWd Bonk -26930

_84-

BANGLADESHSHRIMP CULTURE PROJECT

Shrimp Hatchety for Proect Ilrnpementation Unit

Opon ToppedOutdOor Trni"

24 25 21 22

12

Waler Store Tonis Mochine Rooms

.175

1 1 02 -4u o o 5so H 11

Main Hatchersy Building Continuous Pitched Roof Wth Transucent PanelBullding PortyOpenSded

13 12

14 7T15 Open ToppedOutdoorTaonks

BULDINGS SCHEDUE SER'CE ILDrNGMAIN -ATcHEL J e-,ExrG

14 carDens1vI Office 15 MechiancsRloom

16 2 IkshoQ 16 Storage88' 3. Routine Loorabarv 17 BOohroom

4 Matel Storage is Kitchen

17 18 5 SpaW Tans 19 Lumn Roorn6 Artemio Room 20 Dtory7 Plarton RPoorm8 Artifici Sesmn*oton Room OIJJDING

19 9inspection Roor 21 Aeration PoOnh10 So5wflng Tank 22 Gererator11. Larval TonKs

V;ATr5rORAGE ! _ 0 10 20 30 _0 50OUTDOOR 1A4N AERII I

20 23. Water Towier Scole in Feet12 ! arvol Tanks 24 Frsh Wler Tank131 PRotonTcnks 25 Sct? Water Tonk

Se"Uice Buildinug Word Bonk - 26931

_85-

BANGLADESHSHRIMP CULTURE PROJECT

Demonsraion Fafn and Training CGnter fbr Project Implbmentatlon Unit

CentSu Dnoge Lcu H &

Security Fence Pond Area About Bho

Notes I EBAANMENIS houe 125ieloscn- mepa"~e~ve 1:a Crest Ieal sin klai area 4- abowe averoge groLzndvel Cresr 'vel on nkd creek or wtwe exposeto noockmang to

be as br coastal embankments. Crest vAdthon perlmeter(A-A)and dIdirg Donds (5-B) is 6 Crest wKit is 8- dong centrcsvoly/cratnage channel (CC)

2 ReguLltors ae bnck or timber construction and htaveadequate ca,aciv tao storn aoraage

3 A mapin a gXYCi reglator on the tidW cxnel maV berequired Ot an eristinx structure is not aVankable

WOrldJ Barik - 26932

ffi x ~~~~~~~~~~~~~~~~IBR 1169

~~~- ~~~~~ O~~0DHMAI

0 ___ ; - -; I N D I A

-,jf~ ~ ~ ~ ~~~I

'EL

I f '-'-'" 'l .\ JS 2

dial'. -Lb'S '

FflgeS X WBAY OF BENGA|

-lA - Cows

BANGLADESHINDI A / SHRIMP CULTURE PROJECT

BURMA LOCATON OF PROJECT AREAS

* Natio"al capital

o Urban Cantom

.s BAY OF BENSAL Bo-ndar,es

/ , , .:-eA :

A_ , - -,,_-_0 25 75 KILOMErEM

W A' tU91~so o 40uLk

JANUAARY 1965

I ANGLADESH

SHRIMP CULTURE PROJECTPOLDER 20, KHULNA DISTRlCT

ROAD AND RIVER COMMUNICATIONS

Project Area Chu x,naga

* Proposed Mobile Extension Unit / / -h0o

R Proposed Demonstrotion Form

Polder Numbers !.muri\

Embonkments

Main Roads

D Oivision Capitol t

0 District Copital TVlE

0 Upozila Capitols Ai

o Other Cities

International Boundaries 1 IH

I N D I A

3 4~~~~~~~~~~

7/2 ~

Z \ ~~N Ku iganj ~~- a KILOMETERS

14/25~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

I BRD 18700RTo CDhirSgog O

/ 8\ / ,) >-

( BJV B A N G L A D E S HJ ,< \\ \ . SHRIMP CULTURE PROJECT

'' )| > i, COX'S BAZAR DISTRICTo t j, /! *} IiK9r-\-~ ROAD AND RIVER COMMUNICATIONS

8 \ / , 54/2B )) PROJECT FEATURES:C 0 l 9s , /65/A3 :: Projeci Areos

71~~~~~~~- Embonkmenits

* Mobile Extension Unit.

/ /| . 64/2 6412B A . PIU Hatchery

/ ~~~~~~~' a U~~~~~~~~~~ Demonstration Farm

/41B J/; lEXISTING FEATURES:

~~~. ,,-'-- ~~~~~~~~~~~~~64 Polder Numbers

i 1&- A C° o)noi i Embankments

( f( / ~ ~~~~~~~~~~~~~~~~~~~~~- Main Roads7~~~~~~t, ~~~~~~~~~~~ S~~~~~ Disirict Capifal

B /. 0 Upozilla Heodquarters

\. 65/Al a Other CitiesRivers/Channels

Ba&rkholi

\zz nit G .e . 7 -For detail see

b9 |9 t / 4 b ~~~~~~IBRD 18703./ ~~~69

66/\ jJ § >-s_ r Napi~~~~~~~~~~~~~tk holi

/

1-'z X V 66

S / \'it 66R2 \ ~~~~~~~~~~ ~ ~~~KILOMETERS \ ' / ' ' \ O -~~~~~~6/ 0 2 4 i 6

~~~~_,__ ~~~~Cox's Bm

'\\ _,_, 1985NOVEMBER 1985

IBRD 18701

POLDER 17/1 POIDER 29

BA N G L A DE S H

5 SHRIMP CULTURE PROJECTPOLDER 20 & 20/1

- i* -. t a PROPOSED BLOCK LAYOUT FOR

( | ( Z * \ - SHRIMP AND RICE FARMING CYCLE

POLDER 19

1 \ . PROJECT FEATURES:

................. 2 Block Num bers

Guachoba 6 Secondary Embonkments6 Madhukhali - Supply/Drainage Channels

_- . X .- . * Supply/Drainage Regulolors

/ -- -- 4 | _. EXISTING FEATURES:

1 7< Maoin Embankments

i . y 4 . _ 0 * Main Drainage Regulolors

...- ' ~~~~~~~~~~0 Minor Droinage Regulators

( 4 { . ( . 3.0 Elevation above PWD Daium (ft.)

Main Rivers/Channels

/. . .~~~~~~~~............

/ 2 \ 8gai 50

| / 3 ~~~~P O L D R 2 ° 0

! -------1 Oighalia i/ / /

/ Hanimurskic . -

POLDER 20/1

. J I4 I -f>0 KILOMETERS I

._ t__8 - ~ MILES

POLDER 21

fl t -_ -J d9_

JANUARY t985

IBRD 18703

BANGLADESH

SHRIMP CULTURE PROJECTPOLDER 6614

PROPOSED BLOCK LAYOUT FORSHRIMP AND SALT FARMING CYCLE

PROJECT FEATURESz -2 Block Numbers

Secondary Embankmoant

Supply/Drainage Channels

* Supply/Drainage Regulotors j.

EXISTING FEATURES: To - c---j >T oo 4

Main Embankments ))/J / } Jo|Clu/ go..:.

* Drainage Regulators \ > ,J\ ((_,

EI Elevation above PWD Datum fft.) l0

Main Rivers/ Channels . . . |

/ ,~/ ifE.. .?

/ /~~/ \ ;-- _I

' 1 ' '' ~~~~~~~~~~~~~* } /

ii / ,POLDER\66 64

7o ' - -

'7 .~~~~

MILES

/

/ o _e><n^_, ~~~~~_ t_ _,,=o

k ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~ ~AUR 198