WEST DELTA WATER CONSERVATION AND IRRIGATION REHABILITATION (WDWCIR) PROJECT ByA.M.Farahat

WEST DELTA Northern Area (Nubaria) Northern Area (Nubaria) Area65000 feddans Area65000 feddans Irrigationsurface Irrigationsurface Southern Area Southern Area Area feddans Area feddans Irrigation underground water Irrigation underground water

WEST DELTA Total area feddans Total area feddans (100000) hectars Agriculture annual output Agriculture annual output $ million Inhabitants Inhabitants Jobs Jobs Cultivated land47% Cultivated land47% Water extraction870 milliom cu meter Water extraction870 milliom cu meter (in year 2000) 36.2% increase over a decade

THE PROJECT Closed conduit (piped) surface water irrigation system Closed conduit (piped) surface water irrigation system In southern area only, i.e feddans In southern area only, i.e feddans Threshold area feddans Threshold area feddans Private Public Partnership Private Public Partnership Private operator (local or foreign, individual or consortium) Private operator (local or foreign, individual or consortium) 30 years concession basis 30 years concession basis Full cost borne by farmers Full cost borne by farmers Design-Build-Operate scheme Design-Build-Operate scheme Contractual interest of farmers to “ Connect and Pay ” Contractual interest of farmers to “ Connect and Pay ” Operator can withdraw if contracting farmers less than threshold Operator can withdraw if contracting farmers less than threshold Good potential for a growing agribusines Good potential for a growing agribusines

CONSTRUCTION (INFRASTRUCTURE) COST $ million, for feddans only $ million, for feddans only 15% to be covered by operator ’ s own contribution ( venture capital) 15% to be covered by operator ’ s own contribution ( venture capital) 85% loan from World Bank through the Egyptian Government 85% loan from World Bank through the Egyptian Government Line of credit type of lending Line of credit type of lending Repayment through annual concessional fees to the government Repayment through annual concessional fees to the government

PROJECT COST 1. Fixed (capital) cost 1. Infrastructure for feddans 2. Expansion beyond feddans (max feddans) 2. Variable Cost 1. Operating cost 2. Routine maintenance 3. Management fees

FARMERS’ TARIFF 1. Fixed component per feddan covering: 1. Annual concessional fees 2. Expansion cost ( beyond feddans)?? 3. Return on investment / profit 2. Volumetric component per cubic meter covering: 1. Operating cost 2. Routine maintenance 3. Management fees

PROJECT STAGES Prequalification ( Pass/Fail basis) Prequalification ( Pass/Fail basis) Distribution of TOR ( including technical specs and service standards) to bidders Distribution of TOR ( including technical specs and service standards) to bidders Tendering 12 April 2007 Tendering 12 April 2007 Contract Award ( minimum tariff criterion) Contract Award ( minimum tariff criterion) Subscription period ( legal contract between operator and farmers, operator verifies exact demand figure) Subscription period ( legal contract between operator and farmers, operator verifies exact demand figure) Security payment by farmers Security payment by farmers Final design by operator Final design by operator Implementation starts Implementation starts