Democratic Socialist Republic of Sri Lanka J i

. ....- ' , C ) Ministry of Mahaweli Development

Maduru Oya Project

FeasibilityReport

Annex K Implementation, Organization and Management

A Acres International Limited, Niagara Falls, Canada August 1980

FOREWORD

The Feasibility Report on the Maduru Oya Project, ofwhich this Annex forms a part, is made up as follows:

Main Report

Annex A - The Project Area

Annex B - Soils and Land Classification

Annex C - Hydrology and Water Balance

Annex D - Engineering Works

Annex E - Agronomic Studies

Annex F - Livestock

Annex G - Agroeconomic Studies

Annex H - Forestry

Annex I - Settlement Planning

Annex J - Environmental Aspects

Annex K - Implementation, Organization and Management

Annex L -Economic and Financial Analysis

TABLE OF CONTENTS

LIST OF TABLES LIST OF FIGURES

Page

1 - INTRODUCTION 1--------------------------------------1

2 - BACKGROUND 3----------------------------------------3 2.1 - Historical Resume 3---------------------------3 2.2 - Summary of Current Institutions ------------- 5 2.3 - Requirements for System B ------------------- 6

3 - ORGANIZATION FOR CONSTRUCTION PHASE--------------- 9 3.1 - Organization for Construction

of Headworks 9------------------------------9 3.2 - Organization for Construction

of Canal System 0---------------------------10 3.3 - Nonirrigation Infrastructure ---------------- 15 3.4 - Construction Labor Force -------------------- 19

4 - ORGANIZATION FOR OPERATION PHASE ------------------ 23 4.1 - General Description of

Organization of MEA ----------------------- 23 4.2 - Organization for Water Management ----------- 26

5 - AGRICULTURAL SERVICES BY MEA ---------------------- 31 5.1 - Agrarian Development Services --------------- 31 5.2 - Agrarian Development Service Center --------- 36 5.3 - Summary of Staff Requirements --------------- 41

6 - WATER MANAGEMENT - TECHNICAL ASPECTS -------------- 43 6.1 - General Conditions -------------------------- 43 6.2 - Water Management Within the

Maduru Oya Project Area ------------------- 44 6.3 - Operation of the Overall Mahaweli System 47

7 - PROJECT MANAGEMENT COSTS -------------------------- 55

APPENDIX I - EXTRACTS FROM MAHAWELI DEVELOPMENT BOARD ACT, NO. 14 OF 1970

APPENDIX II - EXTRACTS FROM MAHAWELI AUTHORITY OF SRI LANKA, ACT NO. 23 OF 1979

APPENDIX III - EXTRACT FROM DRAFT OUTLINE OF THE MAHAWELI ECONOMIC AGENCY

FIGURES

LIST OF TABLES

Number Title

K-3.1 CECB Buildings at Maduru Oya Damsite Completed in System B - June 1980

K-3.2 MDB Construction Organization

K-3.3 Construction Periods and MDB Personnel Requirements

K-3.4 MDB Buildings in System B - June 1980

K-3.5 Labor Requirements for Development Scenario A

K-3.6 Labor Requirements for Development Scenario B

K-4.1 Mahawali Economic Agency: System B .Field Organization - Estimated Staff Requirements

K-5.1 Basic Training Program of Agrarian Field Staff for System B

K-7.1 Cost Estimate - Project Management Infras tructure

K-7.2 Estimate of Operation and Management Cos ts

LIST OF FIGURES

Number Title

1K-1 General Organization Chart

K-2 Mahaweli Development Board -Organization StrucLure

K-3 Organization for Construction

K-4 Command Areas

K-5 Mahaweli Economic Agency

K-6 Mahaweli System Schematic Diagram

1 - INTRODUCTION

The purpose of this annex is to describe the institutional framework required for

- the construction of the irrigation scheme and auxiliary

works

- the operation and maintenance of the irrigation scheme

- the general direction of management activities in area B (including the provision of agricultural extension

services).

It is evident that the establishment of a viable agricultural economy based largely on the settlement of newly-developed areas will require very substantial effort by the Government of Sri Lanka. This has been recognized by the Mahaweli Authority of Sri Lanka (MASL) and the task of preparing this annex has been facilitated by the planning and advance measures undertaken in the early months of 1980.

The subject matter of this annex is treated primarily inrespect of the Maduru Oya project. This, however, is only a component of the much larger Mahaweli complex, which means that the organization and institutions required specifically for the local development must accommodate themselves to the overall requirements of a broader framework.

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2 - BACKGROUND

2.1 - Historical Resume

The Mahaweli Development Board (MDB) was established in 1970. Prior to that date the principal government institutions involved in the planning and development of irrigation projects were the Ministry of Agriculture, the Ministry of Irrigation, Power and Highways and the Irrigation Department.

A comprehensive reconnaissance level study of the Mahaweli basin was carried out in the 1960'o. This led to the Master Plan presented in the FAO report of 1968.

It was recognized that, for so large a development, a separate agency should be set up having broad responsibilities for the implementation of the scheme, with the necessary power to discharge this function. The decision was taken to establish the MDB, the functions and powers of which are presented in Appendix I.

It will be noted that, whereas MDB is vested with adequate power to construct the physical works of the Mahaweli Scheme, there is little specific provision for carrying out the function of "promoting agricultural and economic development". No mention is made of the subject of settlement.

The initial phase of the Mahaweli. development was undertaken by MDB during the 1970's. This comprised the Polgolla Diversion and the Bowatenna Reservoir, which, with other associated works, feed System H.

In 1979 the Government approved the Accelerated Mahaweli Programme, which calls for (inter alia) the construction of

4

the Victoria and Kotmale reservoirs and the development of Systems B and C, together amounting to some 85 000 ha. The settlement of the newly-developed areas and the active promotion of a vigorous rural economy are important features of the Accelerated Programme.

It became apparent that the powers of the MDB were not explicit enough in the nonengineering areas to meet the requirements of the Accelerated Programme.

An organization with a much wider scope was indicated, and the Mahaweli Authority of Sri Lanka (MASL) was therefore established in 1979. Its functions and powers, which are presented in Appendix II, considerably exceed those of MDB. It will be noted in particular that MASL is specifically empowered in such areas as settlement, extension services, farm credit, supply of inputs, marketing services, and the involvement of the private sector. Provision is also made in the MASL Act (Section 35) for the establishment of corporations to carry out any of MASL's functions.

At the time of writing the government is in the process of setting up a corporation, to be known as the Mahaweli Economic Agency (MEA), which will undertake all of MASL's responsibilities in Systems B and C with the exception of the construction of the irrigation works. More specifically,

according to the draft of an "Order Under Section 35 (of the Mahaweli Authority Act)", the functions of MEA will be those listed under paragraphs (3) to (36) inclusive of Clause 13 of the Act (see Appendix II).

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2.2 - Summary of Current Institutions

In the course of the developments reviewed above, the Ministry of Irrigation, Power and Highways has ceased to exist and other changes have been made at the Ministry and Department level. The following is a summary of the organizations which are expected to play key roles in the Mahaweli development, and particularly in the implementation of the Maduru Oya project.

Mahaweli Authority of Sri Lanka the highest authority having overall responsibilities and powers.

Mahaweli Development Board - responsibility delegated by MASL for canal system construction and bulk water management.

Central Engineering Consultancy Bureau - responsibility delegated by MASL for construction of headworks.

Mahaweli Economic Agency - responsibility delegated MASLby

for project operation and management functions.

The following agencies, in addition to their regular functions, are expected to be involved in the development and/or operation of the Mahaweli projects (although not necessarily in System B)

- Irrigation Department

- Ceylon Electricity Board - River Valleys Development Board

- Survey Department.

The relationship of the MASL to the government and to the above agencies is illustrated in Figure K-1.

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2.3 - Requirements for System B

In terms of area to be developed and the amount of new settlement, System B is the largest of the irrigationprojects scheduled for immediate implementation in the Accelerated Mahaweli Programme.

The main tasks to be accomplished in the construction phase are

(a) construction of the headworks (diversion tunnel from the Mahaweli, Maduru Oya dam and appurtenant works), based on detailed construction designs

(b) development of definitive designs, specifications and tender documents for the main and branch canals

(c) tendering and selection of expatriate contractor for

(d) construction of main and branch canals based on detailed construction designs

(e) development of definitive designs, specifications and tender documents for the tertiary irrigation system and drainage works

(f) tendering and selection of local contractors for (e)

(g) construction of tertiary system and drainage works

(h) development of roads and social infrastructure

(i) selection and progressive settlement of about 35 000 farm families

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(j) organization of settlers assist into system preparation.

The organizations required for tasks (a) to (h) above are described in Section 3 of this annex. Organizational aspects for tasks (i) and (j) are described in Annex I.

The main objectives in the operation phase of the project are of course the achievement of agricultural production targets and the harmonious evolution of a healthy rural community in the System B area.

System B will be predominantly, if not overwhelmingly, a paddy-producing area. Observations in the region and particularly in the Pimburettewa scheme indicate that settlers may be expected to achieve high levels of production of this traditional crop. However, the very objective of the Mahaweli scheme is the full utilization of the available water resources. This means that, on a larger scale and to a greater degree than before, there will be stress between water supply and demand and increasing competition between water users. Good water management, particularly at the local level, is perceived as being the most important factor affecting the success or failure of the project.

An important related factor, peculiar to System B, will be the existence of a major water storage facility (the Maduru Oya reservoir), the deliveries from which will be controlled exclusively for the irrigation of the system. Only bulk deliveries from the mainstream of the Mahaweli Ganga into the reservoir will have to be under centralized control.

The above considerations lead to the conclusion that it will be desirable and feasible for the direction of both the construction and operation phases to be loca. notand centered in Colombo.

8

The organization envisaged by MASL has been, and to some extent still is, evolving. However, the concept of decentralized management has been endorsed by MASL and is reflected in their organization charts, on which Section 3 and 4 of this annex are based.

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3 - ORGANIZATION FOR CONSTRUCTION PHASE

The following division of construction work has been adopted

for the Maduru Oya project.

MASL Principal Executing Construction

Project Area Agency Agency Supervision

Headworks CECB Expatriate Expatriate

Contractor Consultant

Main and Branch Canals

MDB Expatriate Contractor

Expatriate Consultant

Tertiary Systems MDB Local MDB and on-farm works Forces

Roads and Social MDB To be deter- To be deter-Infrastructure mined rined

In addition, MEA will be responsible for the settlement of

the project area during the construction phase. The

organization for this aspect of the work is described in

Annex I.

The interrelationship of the above agencies is shown in

Figure K-1.

3.1 - Organization for Construction of Headworks

The Sri Lankan agency which will be responsible to MASL for

the headworks is the Central Engineering Consultancy Bureau

(CECB). CECB has in fact been involved over the past 3 years

in the preliminary studies of the headworks, and, more

recently, in the design of the dam and appurtenant works. It

was the prime representative of the Government in the recent

selection of the headworks contractor.

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A firm of consulting engineers has also been selected for thesupervision of headworks construction. This firm will be responsible, inter alia, for the certification of progress billings.

Since the day-to-day management and technical direction of the headworks construction has been delegated to these expatriate forces, it is considered that the present CECBorganization does not require major changes to enable it to fulfill its function, at least so far as the Maduru Oya project is concerned.

Some progress has already been made in the construction of

field accommodation for personnel associated with the construction of the headworks. Table K-3.1 lists the quarters completed as of June 1980. Costs of project management infrastructure are discussed in Section 7.

3.2 - Organization for Construction of Canal System

The responsible government agency is the MDB.

As already mentioned, design and construction of the main andbranch canals will be undertaken by expatr:iate forces. In principle, this will be similar to the organization for the headworks. However, the expatriate consultants for the mainand branch canals ,who have already been selected) have also to provide advisory services to MDB for the tertiary system,

drainage works and other aspects. Futhermore, construction of the main and branch canals, the tertidry system and drainage works, and the settlement of farms and land preparation will be occurring simultaneously. A considerable degree ofcoordination will therefore be required, and this coordination will devolve upon MDB.

TABLE K-3.1

CECB BUILDINGS AT MADURU OYA DAMSITE COMPLETED IN SYSTEM B - JUNE 1980

For Expatriate Contractor

1 senior officer quarter 9 junior officer quarters 5 minor employees quarters

9 minor employees dormitories

For CECB Staff and ExpatriateConstruction Supervision Consultants

5 consultant bungalows

1 circuit bungalow 1 chief resident engineer bungalow 3 staff officer quarters 4 junior officer quarters 1 senior officer dormitory 2 junior officer dormitories

1 minor employees quarter 3 minor employees dormitories

1 CECB office

1 CECB store

I clubhouse 1 contractor's office

1 contractor's stores

12

The MDB organization has undergone a number of changes during the course of the present study. The latest structure (dated June 1980) is reproduced in Figure K-2, and has been assumed for the organization for the construction period, with the exception of the settlement and marketing functions.

Regarding the construction of System B, MDB had prepared, prior to completion of the land classification, an outline organization in which the area was split between two management groups, and further broken down to five divisionj comprising a total of some 65 to 70 "blocks"*. The present proposal, shown in Figure K-3, takes into account the irrigation system layout described elsewhere in this report, which is based on the complete land classification. While MDB's general allocation of staff has been retained, the present proposal differs from MDB's original concept in that only one project management group and four divisions are recommended. Figure K-4 shows the canal command areas on which the geographical distribution of responsibility is based.

The responsibility at the system level would be assumed by a Project Manager having the rank (within MDB) of "Assistant

General Manager". Since formal liaison between MDB and the consultants for the main and branch canals should take place at the system level, the AGM's establishment has been augmented by the addition of a Project Engineer and an

*The expression "block", used by MDB to denote units of about 500 to 600 ha, conflicts with the use of the term by MPA inthe operation phase when "block" refers to areas of about2,500 ha (see Section 4). In the present context the smallconstruction units will be referred to as "Sections", and the larger areas under the supervision of REs will be referred to as "Zones".

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accountant. Day-to-day coordination of local activities should be adequately covered by the organization envisaged at the Division and Zone levels. The location of the System B office would be at Welikanda.

The divisional level would correspond generally with the operating sectors into which the system layout is naturally divided. However, because of its relative size, difficulty of access and present undeveloped state, Sector 3 has been divided into two for construction purposes. Each of these four construction divisions would be under the charge of a Divisional Resident Engineer. It is envisaged that the local headquarters of each of the Divisions 1 through 4 would be located respectively at Aralaganwila, Welikanda, Meeyankolla and Wadamunne.

MDB's original concept envisaged a total of 16 Resident Engineers supervising some 65 to 70 Project Engineers at the section level. The presently-proposed organization also allows for 16 Resident Engineers, but it is envisaged that 4 of these (1 per Division) would be responsible exclusively

for the management and technical direction of on-farm works, in which much of the land leveling would be done by the farmer settlers themselves. This leaves 12 Resident Engineers at the zone level, each being responsible for some 3,000 ha on the average.

As already discussed, each Zone will be divided into sections of which a total of 70 in the system is assumed. Each section will be in the charge of a Project Engineer.

The allocation of technical and administrative staff to the four levels mentioned above is shown in Table K-3.2.

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TABLE K-3.2

MDB CONSTRUCTION ORGANIZATION

Allocation of Field Personnel In each In In each of 4 each of of 70Position System Divisions Zones12 Sections

Technical Staff

Project Manager (AGM) 1 Chief Engineer 1 Divisional RE 1 RE - Zone 1 RE - On-farm works

Project Engineer 1

1 1 1Engineer Assistant 1 2Draftsman 3 5Work Supervisor 3 4

Subtotal 3 10 7 7

Clerical Staff

Senior Accountant 1 Accountant 1 2

Chief Clerk 1 1 1Clerk 1 3Storekeeper 2

Stores Assistant 2 Accounts Clerks 3 General Clerks 2 Typist 2 2 1 Supplies Officer 1 Radio Operator 1 1 1 Roneo Operator 1 Bookkeeper 1

Shroff 1

Subtotal 9 17 6

Support

Drivers 3 4 2 Peon 2 2 2

Watcher 3

Pump/Gen Operator

2 1

Subtotal 5 9 7 1

TOTALS 17 36 20 8

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Table K-3.3 shows the approximate construction periods for each of the Divisions in Scenarios A and B, as well as the estimated mid-year level of MDB personnel requirements during the two scenarios.

As in the case of the headworks, some site accommodation required for the canal system has already been constructed. The status as of June 1980 is given in Table K-3.4.

3.3 - Nonirrigation Infrastructure

Roads

The primary roads and bridges under consideration for financing by ADB may be designed with the assistance of expatriate consultants. The actual construction may or may not be carried out by expatriate contractors, depending on the type of contract, the construction standards adopted, and the availability of local contractors for this type of work. The primary roads would be handed over to the Department of Highways soon after construction, so that maintenance can take place as part of existing departmental road maintenance

programs.

Access Roads

These roads are of a relatively low standard. Construction will be a matter of high priority to facilitate the design and survey work on the main and branch canal system. Contractors engaged by MDB should make an early start on the access road network.

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TABLE K-3.3

CONSTRUCTION PERIODS AND MDB PERSONNEL REQUIREMENTS

Construction PeriodsDivision Scenario A Scenario B

1 (= Sector 1) Feb 81 to Sept 85 Feb 81 to Sep 87 2 (= SectoL 2) Feb 82 to Mar 86 Sept 82 to Sept 88 3, 4 (= Sector 3) Feb 83 to Mar 87 Sept 84 to Sept 89

Year Mid-Year Personnel Requirements

1981 265 265 1982 565 265 1983 840 565 1984 785 565 1985 455 575 1986 435 605 1987

455 1988

455 1989

435

Total Indicated 3,345 4,186 Man-years

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TABLE K-3.4

MDB BUILDINGS COMPLETED IN SYSTEM B - JUNE 1980

MDB MDB Welikanda Aralaganwila

Residences - Grade II 4 10 Residences - Grade III 4 16 Residences - Grade IV 11 Residences - Grade V 9 Residences - AGM 1 2 S tores 5 3 Bank buildings 1 2 Dormitories (about 15 pers/ea) 7 2 Office buildings 2 1 Co-ops 1 Agarian training center 1 Temporary quarters 4 Temporary circuit bungalow 1 Workshop 1 Ammunition magazine 1 Parking shed 1 Lorry shed 1 1 Watch huts 2 2 Welfare office (for MIDB staff) 1 Club (for MDB staff) 1 Canteen (for MDB staff) 1 Library (for MDB staff) 1

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Irrigation System Roads

An early transportation planning study should be undertaken to indicate which canal maintenance roads should be upgraded to function as important links in the area's road network. If this is done, the extra work required to widen and otherwise improve the roads can be incorporated into the canal construction contracts.

Link Roads

These roads would be constructed by medium size contractors under contract to MDB.

Settlement Roads

These roads can be constructed by local (medium and petty) contractors. Petty contractors could be groups of settlers working on roads in their settlement area, once the basic road has been completed.

Settlements

The construction of settlements, like the small villages and hamlets, can be a comparatively simple matter. Of primary

importance are the selection of appropriate locations, and the provision of adequate linkages to other centers. Once the settlement locations have been confirmed, and the linking road network planned, the homesteads can be surveyed and internal roads laid out. After the farmer/settlers have been allocated their homesteads, they can begin work on their homes and do some work on internal roads. For the smaller settlements, little outside construction labor will be required.

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For the larger villages and towns local contractors supervised by MDB will be engaged on the construction of social and project management infrastructure. The construction of schools, health centers, stores, offices, cooperatives, staff housing etc, should take place with construction labor engaged locally if possible. For the larger more specialized buildings, design and supervision should be passed to architectural firms, to be engaged by MDB. The use of local architectural firms to undertake the planning, design, implementation and supervision of complete communities is recommended; the larger communities in particular could benefit from this approach.

Experimental Demonstration Farm

The development of the Experimental Demonstration Farm (a matter of high priority) should be handled by a special implementation group. This group would be part of the MEA organization to be described in Sections 4 and 5 and would consist of crop and extension experts, irrigation and drainage engineers, and administrators.. While overall construction supervision would be an MDB responsibility, the active participation of this special project group would be required at all stages.

3.4 - Construction Labor Force

The approximate size of the construction labor force required to implement the Maduru Oya project has been estimated for Implementation Scenarios A and B. Tables K-3.5 and K-3.6 present the results of these estimates in summarized form. Further details, particularly for the main canals, can be found in Annex D.

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TABLE K-3.5

LABOR REQUIREMENTS FOR DEVELOPMENT SCENARIO A

Number of Skilled and Unskilled Workers PeakConstruction Average TotalPeriod of Peak Year Year ManActivities Construction Year Level Level Years

Dam and tunnell 1980 to 1983 1982 1 600 1 000 3 000

Main and Branch 1981 to 1986 1983 1 500 1 000 5 000 Canalsl

Tertiary irriga- 1981 to 1987 1983 36 000 24 000 120 000 2tion system

Nonirrigation 1981 to 1987 1983 2 500 1 700 12 000 infras tructure

Overall project 1980 to 1987 1983 40 000 20 0003 140,000

Notes:

iAssuming machine- intensive construction by international

con trac tors. 2 Assuming labor-intensive construction methods. 3 Average over 8 yr.

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TABLE K-3.6

LABOR REQUIREMENTS FOR DEVELOPMENT SCENARIO B

Number of Skilled and Unskilled Workers Peak Average TotalConstruction

Activities Period of Construction

Peak Year

Year Level

Year Level

Man Years

Dam and tunnel1 1980 to 1983 1982 1 600 1 000 3 000

Main and Branch Canals 1

1981 to 1988 1985 1 000 625 5 000

Tertiary irriga-tion system 2

1981 to 1989 1985 20 000 13 333 120 000

Nonirrigation 1981 to 1989 1985 1 800 1 200 12 000 infrastructure

overall project 1980 to 1989 1985 22 800 14 0003 140,000

Notes:

1Assuming machine-intensive construction by international contractors.

2Assuming labor-intensive construction methods. 3Average over 10 yr.

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Labor requirements for the development of System B should be examined in the context of simultaneous requirements for other development projects. The supply of labor for headworks and main canal construction should be adequate, and some of the work for the tertiary irrigation system and for

nonirrigation infrastructurethe can be carried out by settlers. However, it is doubtful that any more than one third of the tertiary system labor requirements can be met by settler/workers unless such workers are required to work for several years before being allowed to settle.

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4 - ORGANIZATION FOR OPERATION PHASE

As previously noted, it is planned that the broad functions of MASL in the operation phase will be delegated to a new "Corporation", to be known as the Mahaweli Economic Agency (MEA).

Extracts from a draft document outlining the organization of MEA envisaged by MASL (as of May 1980) are reproduced in Appendix III of this Annex.

The government's ideas for the organization of MEA are still evolving. The agency itself has not yet been formally constituted and those of its staff who have so far been appointed are operating in the meantime under the auspices of MASL. The framework presented in this section results from discussions with the Project Coordinator for System C and the designated Resident General Manager for System B.

4.1 - General Description of Organization of MEA

The organization proposed is illustrated in Figure K-5.

It is the general intention that the management of the Mahaweli Development be decentralized as much possible.as

The functions of the MEA direction at the national level will be primarily those of policy-setting, coordination between systems and otherwith national agencies, provision of special support, etc.

System B has an area of approximately 36 000 ha allotted to farms. For this area, the subdivision of the organization has been somewhat modified from the outlines made available

24

and the description given in Appendix III (which were largely based on the organization conceived for System C). Thus the principal components below the level of system headquarters are envisaged as follows.

Present Proposal Previous Designation

Sector (average 12 000 ha) Zone Block (average 2 500 ha) Zone Unit average 250 ha) Unit

It will be noted that an additional level - that of "Sector" has been introduced. This follows from the way in which the System B area is divided for development purposes, and reflects the phased development facilitated by this division. It also has the probable advantage of limiting to about 6 the number of blocks to be administered by one office.

The idea of the local management or "production" unit being

the main contact between MEA and the farmers, adopted for System C, forms the basis of the organization proposed for System B. Each unit manager would be responsible for an area of about 250 ha. He would be assisted by 2 field officers each of whom would cover some 6 to 10 turnout groups or about 125 farmers.

These unit management teams would be generalists, supported at the next higher level by a Block Manager who would have at his disposal an Agrarian Service Team, comprising a number of personnel who have received specialist training a varietyin

of relevant subjects. It will be noted from the Organizational Chart (Figure K-5) that a Settlemernt Service Team would also be allocated to each Block Manager. This team, whose functions dte described in Annex I, would be required from the start of the settlement period, but would phase out as settlement is finalized and associated problems have been solved.

25

The general functioning of the Management Units and AgrarianServices Teams, theirand relation to the Agrarian Development Service Center proposed at the system level is described in Section 5 of this annex.

At each of the higher levels - i.e. at the three sectors and at the system headquarters there will be a st :f of administrators, with professional qualifications, capable of handling all aspects of agricultural production, land and settlement, and water management. Evidently at the system level the coverage will have to be comprehensive and six Deputy Managers are envisaged for the agricultural, social and financial aspects plus one Deputy Manager for Irrigation and Water Management.

The inclusion of Deputy Managers andfor Land Administration

Settlement, and for Credit and Marketing, is based on the assumption that these long-term functions will be performed by MEA and not MDB (as implied in MDB's general organization chart, Figure K-2).

An important function of the system staff will be to interpret and reformulate for System B the policy guidelines and general administrative directives issued theat national level. While the ultimate line of authority from top to bottom of the MEA organization will be as shown in Figure K-5, it is intended that matters of technical interest should be communicated (in both directions) between the junior and senior specialists involved, without going through formal channels.

Some concern is felt regarding the availability of trained personnel in sufficient numbers to fill staff functions at the Sector level. It could well be that in the initial phases, when settlement and agricultural development will be

26

concentrated in Sector 1, staff will be required at this level only. In such a case it is considered that the

Resident General Manager for the system should be supported by a Sector Manager plus the staff required at the Sector level. This would afford the opportunity to observe performance and select promising individuals for promotion to the system level when expansion is required.

The estimated staff requirements of the MEA field organization are shown in Table K-4.1. The staffing at the Block and

Unit levels and at the Agrarian Development Service Center is

further discussed in Section 5.

4.2 - Organization for Water Management

It will be noted from Appendix III that, in the original concept for MFzi, water management would be a function of the "Production, Credit and Marketing Division". It is considered that water management will play such a vital role in the successful operation of the Mahaweli Scheme and its component projects that it should have its own divisional

organization and chain of communication.

It is therefore proposed that the position of Manager, hater Resources, be created at the na" onal level (see Figure K-5).

This office would have the responsibility for coordinating the control of the water resources of the Mahaweli Basin aas

whole, and for the distribution of water to the various irrigation systems. An additional function would be the liaison with other water users of which the Ceylon Electricity Boar

is an important example.

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TABLE K-4.1

MAHAWELI ECONOMIC AGENCY SYSTEM B FIELD ORGANIZATION ESTIMAI'ED STAFF REQUIREMENTS

System Level

Resident General Manager 1

DM - Financial and administration

DM - Agriculture 1

1DM - Land administration and settlement 1DM - Credit and marketing

DM - Community development 11DM - Business developrent

DM - Irrigation water management

1

Agrarian Development Service Center 1 20

and Demonstration Farm

Support staff: officers, secretaries, drivers,

clerks, etc (3 to 1 ratio) 84

Subtotal

112

Sector Level

Sector Manager

3AM - Financial and administration 3AM - Agriculture 3AM - rLand administration and settlement

AM - Community development 3 3AM - Irrigation and water management

AM - Irrigation system maintenance 3 3Support staff: officers, secretaries, drivers,

clerks, etc (3 to 1 ratio) 63

Subtotal

84

Block Level

Block Managers

14Agrarian service teams 100Settlement service teams 42Support staff: officers, secretaries, drivers,

clerks, etc ( 0.5 to 1 ratio) 78

Subtotal

234

Unit and Turnout Levels

Unit Managers

140Field Officers

280

Support staff: nil

Total Field Organization 850

Notes: Above totals include 540 personnel whose activitieswould be primarily devoted to the MEA AgrarianDevelopment Service proposed for System B (see Section 5). Staff for the World Food Aid Program are not included.

28

The Manager, Water Resources, would have charge of the Water Management Center whose prime function would be the maintenance of records, scrutiny of system performance and the operation of the simulation and other computer programs

which will be required.

Liaison with water users than ownother MEA's irrigation interests would be effected by a permanent committee with representatives from the Electricity Board, Districts, water consumers, and (possibly) fishing interests. This committee would meet regularly under the chairmanship of the Manager, Water Resources to review the month-to-month operations of the Mahaweli system. At less frequent intervals it is envisaged that the committee could be called, with wider participation, under the chairmanship of the Director, MEA (or Director, MASL).

At the system level the Resident General Manager's staff would include a Deputy Manager, Irrigation and Water Management, who would be responsible for all technical aspects of water management within the system.

It is at this point that the maintenance of the physical works of the irrigation system should be separated from the nonphysical aspects of water management. The objective is to keep the canals, structures, control gates, drainage system etc in proper working order so that at no time is good water management inhibited by failure of these facilities to

perform.

It is therefore proposed that tne Deputy Manager, Irrigation and Water Management, would have direct charge of Assistant Managers, Maintenance, at the Sector level. This would include budgetary control and would mean that the routine activity of maintenance would not have to be administered

29

through the normal line of authority via the Sector, Block and Unit Managers.

The management of water distribution, however, involves more than the purely hydraulic aspects. The crop calendar, the hectarage under cultivation and the effect of rainfall will all influence the required delivery to a given area at any

time. During occasional periods of possible shortage, these and other nonengineering factors will be important in determining when, where and to what degree constraints may have to be imposed. The normal line of authority through sector,

block and Unit Managers should therefore be retained.

For this purpose, each sector manager's staff will include an Assistant Manager, Irrigation and Water Management. At the Block level the Agrarian Service Team will include a field

specialist in water management. At the Unit level the field officers will be in direct contact with the farmers, who in

turn will be concerned with managing their own water distribution within the turnout g-7oup. The field officer, as a "generalist", will provide the essential liaison between the farmers' turn-out groups and the water management specialist

in the Agrarian Service Team.

It should be a matter of priority for the MiEA atstaff the Block and Unit levels to motivate the farmers to organize themselves into water user's groups - the turnout being the basic module. Coordination between turnout groups could

evolve into more formally constituted Water Users

Associations.

The technical aspects of water management are further

discussed in Section 6 of this annex.

31

5 - AGRICULTURAL SERVICES BY MEA

At present there are, in fact, two government agricultural supporting services: one is the Agrarian Development Service and the other is the Extension Service. Both are often operating from one office and are more or less interwoven although they may operate separately. Because this situation would not really be practical in the context of System B, it is suggested the projectthat for a well-defined organization be structured to support agrarian development in the area. A proposed organization to operate as part of the MEA structure already presented for System B is discussed in this section.

5.1 - Agrarian Development Services

5.1.1 - Structure

The structure of the MEA Agrarian Development Service would have two organizational components: a farm production organization and a complementary Agrarian Development Service. The relationship between the two would be approximately as follows.

Production Organization MEA Agrarian

Development Service (ADS)

Turnout Group Field Officer to provide = 12 to 20 farmers guidance and support

One Field Officer would cover 6 to 10 turnout groups; 2 Field Officers

would cover 250 ha.

32

Production Unit

= 12 to 20 turnout Groups

= 250 ha paddy

= 250 farmers

Production Block

= 10 Production Units

= 2,500 ha paddy

= 2,500 farmers

Production Sector

= 4 to 6 Production

Blocks; there would

be three sectors in

System B

Production System B

= 3 Production Sectors

= 34 300 ha paddy plus

homesteads plus highlands

Each organization component is

immediately following.

Production Organization

Unit Manager, assisted by

the 2 Field Officers referred

to above would cover one

production unit. The functions

of these three staff members

could be organized along

skill or subject area lines,

or along geographic lines.

Block Manager, assisted by

10 Unit Managers and 20 Field

Officers, and by specialist

Agrarian Service Team (about

7 persons).

Sector Manager, assisted by the above, and by administra

tive and program execution

staff.

System General Manager

assisted by the above,

administration and program

staff and by the Agrarian

Development Service Center.

discussed in some detail

The production organization would have five levels: Turnout Group, Production Unit, Production Block, Production Sector and Production System.

33

1 - The basic (grassroots) organization would be the Turnout Group of 12 to 20 farmers (about 20 ha if homestead is included).* Its area corresponds to the average irrigation system water turnout area. The Turnout Group would include an animal power pool and a machinery pool. All agricultural practices within the Turnout Group would be expected by the farmers in cojisultation with one another. One cropping pattern would prevail per Turnout Group. The Field Officer would be consulted frequently.

2 - The Production Unit would comprise 10 Turnout Groups, about the size of one village. Activities would include dealings with the cooperative, negotiation and discussion with the Unit Manager on various agricultural aspects, and improvements in the socioeconomic infrastructure of the village.

3 - The Production Block would comprise some 10 Production

Units.

4 - The Production Sector would comprise some 4 to 6 Production Blocks.

5 - The Production System would comprise all of System B.

The purpose of (3), (4) and (5) is to represent the farmers' interests at the higher levels of Project Management.

*Not all of the 0.4-ha settler homestead plot would be used for agricultural production.

34

5.1.2 - Functions of the Agrarian Development Services

1 - At the grassroots level would be the Field Officers. They would be generalists rather than specialists. They would work closely with farmer Turnout Groups and with individual farmers; they would have to know farmers well. Each Field Officer would work with 6 to 10 Turnout Groups (125 ha). The Field Officers would be the main link between farmers and the Agrarian Development Service. In a sense, they would be comparable to the present KVS (village extension worker) but they would have a more intensive guidance/contact function. The Field Officer would deal with agricultural and irrigation matters primarily, although all areas of farmer welfare would be his province. The Field Officer should live in the village where his Turnout Groups are located.

Each2 - pair of Field Officers would operate under the leadership of a Unit Manager wouldwho himself have the qualifications of a Field Officer. practice workIn the of the team of three would be shared, the Unit Manager organizing tasks according to geographical area, or possibly subject matter. This would, to some extent, depend on how MEA intends (a) to function vis-a-vis the farmers and (b) to motivate the Unit Managers and their teams.

3 - At the next level would be the Agrarian Service Team. This team, instead of operating on a client basis like the Unit Managers and Field Officers, would work with programs. The team would be composed of a team leader (generalist, comparable to an Agricultural Extension Officer) and 6 specialists (comparable to Agricultural Instructors or Cultivation Officers). The specialized areas would include

35

- water management

- agronomy

- livestock - cultivation practices and mechanization -rural credit and bookkeeping

- supply of inputs and marketing outputs

- commi nity development.

One Agrarian Service Team would work with one Production Block (2,500 ha) which would consist of 10 Production Units. The team leader would give guidance and support to the 10 Unit Managers and 20 Field Officers in the Production Block.

The Agrarian Service Team would have a technical liaison position between the Production Units and Agrarian Development Service Center and would execute extension programs at the Production Unit level up to Production

Block level.

The Agrarian Service Team would have an office in a centrally located village withi.n the Production Block. Within System B there would be some 14 Agrarian Service Teams comprising about 100 specialists.

5.1.3 - Program Principles

In summary, there are a number of principles along which the Agrarian Development Program should function.

- A Turnout Group is a small group of farmers with sli,.ilar concerns. Each farmer must contribute to make the Turnout Group function well.

- The Agrarian Development Service must focus on the Turnout Group.

36

- The method of extension should be the "training and visit" method, now adopted in many districts in Sri Lanka.

- Training should be done at the Unit Level and Block level, generally by one of the AST specialists on a particular topic. Visiting should be done by the Field Officer.

- The farmers, through the Field Officer, should inform the Agrarian Development Service in what topics they want training. The Agrarian Development Service, on the other hand, will develop programs for the whole area, applicable to specific agricultural practices, etc.

5.2 - Agrarian Development Service Center

This center would be part of the headquarters of the ,hole of System B. The Center would play a supporting role it,all Agrarian Development activities in the area. To do this, it should have three main separately operating functions: adaptive research, training and extension.

5.2.1 - Adaptive Research

This would be carried out at the Experimental Demonstration Farm. Although it will be physically located away from the Center the early establishment and subsequent administration of the farm should be directed by the Development Center, in order to maintain coordination with other agricultural development aspects.

The Experimental Demonstration Farm is discussed in Annex E.

37

5.2.2 - Training

Training would take place at the Development Center. The center would be provided with classrooms and permanent lodging facilities for about 100 students/trainees. In the early years of the project the number of trainees could be as high as 150; therefore, additional temporary lodging facilities for 50 trainees should be considered. The 1-rmanent training staff could be 1 head, 7 subject matter specialists (the same as in the Agrarian Development Service), 1 leader for practical training and 1 for sports and social development. The total teaching staff would be Three10. training programs would be conducted, lasting from 6 months to 1 year.

(a) Agrarian Development Course

This course would treat all the subjects in a simple and practical way. It would give a diploma to the Field Officer on the basis of attendance and performance, without official examination.

(b) Specialist Training Course

This course would offer a choice of the seven subjects covered by the Agrarian Service Team. This training would have some parts wh ich are common to all specialists. It would combine theory and practice at the Demonstration Farm and the farmer's field and would lead to the diploma of specialist, by examination.

(c) Integrated Rural Development Course

This would be a course designed as further training for the Field Officers and Unit Managers and for the

38

specialists in the Agrarian Service Teams. It would be suitable as an upgrading course for people who have been in the service for some time. It would lead to the diploma of Agricultural Instructor, by examination. The duration of this course, if it is to be a refresher course, should no thanbe longer 6 months.

The necessity to have numerous Field Officers and agricultural specialists in the early stages of the project will dictate the development of an extensive training pr'gram. The anticipated training program schedule is indicated in Table K-5.1. Even with high ofthese rates training, additional experienced people will be requi-ed from outside the project area.

Training would start with 70 students for a general agricultural training program 1of year. This would qualify the students as Field Officers. If some of these students take further training as specialists more students would be required for the basic course.

The training in Integrated Rural Development should preferably follow at least 3 years of job experience. After a period of 10 to 12 years, sufficient field staff will be trained. However, it should be borne in mind that other organizations, private wellas as government, usewill make of the trainees. This, of course, is part of the development process and therefore it is likely that training of each type will continue indefinitely, although at lower levels of

enrolment.

5.2.3 - Extension Services

Back-up extension services would be provided by the Development Service Center. The task be tomain would

39

TABLE K-5.1

BASIC TRAINING PROGRAM OF AGRARIAN FIELD STAFF FOR SYSTEM B

Type ofTraining

Number of Trainees Per Year Year1 2 3 4 5 6 7 8 9 10 11 12 Total

Agrarian

Development Course (for Field Officers, Unit Managers)

70 70 70 70 70 70 420*

Agrarian

Service Team Specialist Training Course

20 20 20 20 20 100"*

Integrated

Rural Developmen t Course (6 months Refresher)

40 40 40 40 40 40 40 280

Includes 140 Unit Managers and 280 Field Officers.*Basic staff for 14 Agrarian Service Teams of 7 persons each.

ote: Above numbers are minimum requirements, and do not allow

for dropout and replacement in the field; actual training

levels could be set 50 percent higher.

40

provide the information material for the Agrarian Service Teams and to be the link with the Research Centers and the Extension Service elsewhere in the country. It would coordinate and support all extension activities in the Production Blocks and it would channel the problems that arise in the Production Blocks to the Demonstration Farm for adaptive research (under their guidelines) or to the Research Station in Maha Illuppallama for more fundamental research.

5.2.4 - Staff

The staff at the Development Service Center would comprise a leader and subject specialists. These staff members should all be university trained. Part of their time would be devoted to training, such as by staffing the course on Integrated Rural Development. The total professional staff would be in the order of 12 persons. In addition, there would be an office manager. For accommodating this staff, an office with nine rooms would be required with a gross floor space of 100 m2.

To complete the staff for the Development Service Center, there would be one general director or coordinator, who would be responsible for the smooth functioning of the three interrelated sections. He would be the main person responsiblefor the Agrarian Development Service in System B, reporting to the Resident General Manager.

Besides the coordinator, the Center havewould office staff that can be pooled or divided between sections.

41

5.3 - Summary of Staff Requirements

The general organization of the MEA field management has been described in Section 4 and the overall staff requirements

given in Table K-4.1.

The staff who would be allocated to the MEA Agrarian Development Service are listed below.

Field Officers 280

Unit Managers 140 Service Team Specialists 100

Development Center Specialists 20

TOTAL 540

43

6 - WATER MANAGEMENT - TECHNICAL ASPECTS

6.1 - General Conditions

It will be apparent from a reading of Section 4.2 of this annex that a clear dichotomy exists in the water management organization of MEA. On the one hand the Water Resources Manager at the national level will be concerned with the optimal use of the Mahaweli Ganga not only through irrigation in the various component projects but also through the generation of power and other benefits.

On the other hand the water management at the project level (where irrigation is the predominant objective) will be concerned with supplying the farmers with the irrigation water they need to maximize agricultural production in the area. Competition between projects between(and water use purposes) must be expected to increase as the total resources developed by the Mahaweli system are stressed to their limit. This competition will probably create tensions between the Mahaweli system and component project levels, and this may be regarded as entirely healthy to extentthe that it can contribute to water economy and the ultimate achievement of an optimal water balance.

In the case of the Maduru Oya project the interface between the national and project levels of responsibility is clearly

represented by Maduru reservoir.the Oya Under the direction of the MEA's national water management, bulk deliveries will be made from the Mahaweli tc the reservoir via the Minipe Right Bank Canal and link tunnel. Since these inflows will comprise what remains after deliveries to System C have been made they will not follow the pattern of irrigation demand in System B. More storage will therefore be required for

44

regulation than would normally be expected for the relatively small natural inflow from the Maduru Oya.

In fact, the Maduru Oya reservoir is one of the largest in the Mahaweli system, and its role as a "reregulator" referred to in the preceding paragraph may result in some degree in management being imposed "from above". At the same time, control of outflows from the reservoir to the canals will be firmly in the hands of the project management. Due to the size of the reservoir the project management will have considerably more discretion over deliveries in the short term than their counterparts in System C.

Further discussion of the technical aspects of water management will proceed in the following sections in an "upstream direction" starting theat turnout level.

6.2 - Water Management Within the Maduru Oya Project Area

Within a typical turnout group, the 12 to 20 farmers involved will have joint control over deliveries of water in the field channel system. It will be one of the prime responsibilities of the Field Officers, supported by the water management specialists in the Agrarian Service Teams, to advise the

farmers as howto an equitable distribution can be achieved. The result aimed at should be the establishment of rotational water deliveries within the turnout groups themselves.

There may be some difficulty in achieving this intra-turnout rotation, particularly in the initial operation of the project. In this case rotational deliveries will have to be effected at the sub-distributary level, which would require more direct control by the MEA service organization previously described.

45

In either case an important function of the MEA project organization will be the frequent monitoring of the situation at the farm level, so that irrigation deliveries are properly matched to crop requirements. Reliable information will be required on the following

- crop status, based on monitoring of planting dates

- recent rainfall, based on a network of rain gauges

- field water conditions, based on farmer and staff reports and possibly a network of representative field plots

-theoretical water requirements, based on regularly updated calculations

- performance capability, based on routine monitoring of actual water use in each zone, supplemented by more detailed monitoring in smaller sample areas.

The progressive accumulation through the project area of forecast deliveries, taking into account the effects of rotation in reducing peak demands, will result in estimated required flows in the distributaries, branch canals and ultimately the main canal. The need for the field staff to maintain scrupulous field logs of gate settings and water levels at all key points is apparent. Similarly the reading of strategically-located raingauges (on a daily basis at least during the Maha season) will also devolve upon the field staff.

It is reasonable to predict that releases fror the reservoir into each of the main canals will require adjustment at least as frequently as once and probably twice per week.

46

One of the prime functions of the water management staff at the project and sector levels will be the immediate esta

blishment and scrupulous maintenance of water accounts.

It is envisaged that the most detailed records will be developed in the sector offices. These will be based on the field logs of water levels, gate settings, etc, maintained by

the Field Officers and transmitted via the water management specialists in the Agrarian Service Teams. These data will be translated to flows by professionals under the direction of the Assistant Managers, Irrigation, in the sector offices.

Area rainfall records will also be developed using the Thiessen or similar method which lends to routine dataitself

processing techniques. A comprehensive water account can thus be drawn up from which it will be possible to judge the performance of the delivery network in each sector. This

account should be updated daily.

Consolidated returns will be submitted from the sectors to the project headquarters on a weekly basis. Here they will

be summarized for each of the two main canal commands and checked against the records of releases from the reservoir.

The Deputy Manager Irrigation would also be concerned with the operation of the Maduru Oya reservoir. Taking into

account the measured amuunts of water delivered through the link tunnel, as well as estimated evaporation losses (based

on data from pan(s) established near the reservoir), a "backrouting" procedure will yield a hydrograph of natural

inflow from the Maduru Oya drainage basin. At the same time the maintenance of flow records at the Welikanda gauge site

and at the Punanai Anicut will complete the hydrological picture for the project area as a whole.

The Deputy Manager, Irrigation, will have overall responsibility for policing the water management within the project

area. The water account will be his main analytical tool

47

purpose. He will also be responsible for maintaining the reliability of the many metering points in the system. He technicians,

should have at his disposal a team with adequate metering equipment,

of

to

hydrometric

check

for this

regularly '.he calibration of all flow-measuring facilities.

The hydrometeorological requirements considered necessary for proper water management are

- one fully equipped hydrometeorological station, located at Welikanda

- 5 to 7 daily rainfall gauges, located at representative points throughout the project area

- flow measurement provisions in the form of staff gauges and gate opening scales at all control structures down to the subdistributary level

- two flow measurement crews initially (one permanently) to calibrate the control structures.

6.3 - Operation of the Overall Mahaweli System

6.3.1 - The Need for High-Level Coordination

The Mahaweli Scheme, even as envisaged over the near-term future, will constitute a complex, multipurpose water resource system. F re K-6 is a simplified schematic layout

of the system after the completion of Victoria, Kotmale and Maduru Oya dams and Systems B and C. The following major decision points are indicated.

48

- Kotmale - Energy generation is its prime function, but downstream requirements for other purposes may modify its operation.

- Polgolla - Water required for System H and energy generation at Ukuwela and Bowatenna must be compared as to productivity against water needed at Victoria dam and Systems B, C and E.

- Victoria Dam - Release patterns for power and irrigation must be reconciled, and potential shortages considered.

- Minipe - The needs of Systems C and E (run-of-river), and B (with regulation provided by the Maduru Oya reservoir) must be reconciled and downstream requirements met.

- Ratkinda Oya - The needs of northern System C and System B (via link tunnel diversions) must be reconciled.

- Maduru Oya - Releases for irrigation use in System B must conform to the pattern dictated by probable natural and supplementary (link tunnel) inflow patterns.

With the completion of the Randenigala reservoir and SystemA, further complexities will be introduced. The possibilityof a subsequent major diversion to the northern part of the island, while dependent on further studies of water availability, would increase naturethe and severity of potential conflicts and also add to the complexity of the sys tem.

With the Mahaweli Scheme, as foreseen for the near future, and the potential for the introduction of further decision points, it is clear that flexible, sophisticated management procedures must be established to manage the water resource

49

effectively. The following sections discuss the technical aspects of the proposed management system which would be administered by a unit under the MEA, called the Water Management Center.

6.3.2 - The Water Management Center

As discussed in Section 4.2, it is proposed that a computer-equipped Water Management Center be set up under the control of MEA's Manager, Water Resources. The Center would operate as an independent technical unit, reporting to the Manager, Water Resources, and, through him, to the Water Users' Committee. The functions of the Center would be as follows.

(a) Establish a set of equitable and usable water management policies and procedures, thein close consultation with

Water Users' Committee.

(b) Evaluate seasonal drought handling policy a-ternatives, based on past experience, current system status, and projections of demands and inflows.

(c) Receive and process data andat daily weekly intervals on the status of the Mahaweli System and its components.

(d) Estimate at weekly intervals current, short-term and long-term demands for water for irrigation, power

production, water quality control and riparian rights

fulfillment.

50

(e) Based on the information obtained from (a) to (d) above, perform the necessary calculations, at weekly intervals, to determine the management strategy to be followed over the coming two weeks, and convey the necessary information on water releases, projected energy generation, etc to other concerned parties.

(f) Provide support to the water management staff in each component project in the implementation of good water management practices and theon collection of data regarding the actual rates of water use being achieved within each project.

6.3.2.1 - Establishment of Policies

A set of computer studies, which would update the studies completed by NEDECO in 1978, and which themselves would periodically be updated, bewill required as a top priority. These studies would examine operating policy options which are technically and administratively feasible, given the sizing of the major system components which has now been defined, arid given the newly computer irrigation water requirements resulting from the feasibility studies of Systems B and C. These studies should incorporate the economic analysis of tradeoffs in the use of the water resource among conflicting users and among different geographic regions. Particular consideration of national needs for hydroelectric energy and capacity will be needed, especially in the period before adequate capacity and energy reserves are established through the addition of major new generatingfacilities. Flood handling policies should also be examined, both for their influence on monthly operating effectiveness and on short term flooding.

51

The results of the studies should be presented in a concise form to the Water Users' Committed, which would evaluate the tradeoffs thus exposed and establish operating policy guidelines. These guidelines would ideally be formulated so that the routine operation of the Mahaweli System can be handled by the Water Management Center without further reference to the Committee. Only in times of serious impending water shortages or changed circumstances, which would warrant a reevaluation of policies, would it be necessary for the Committee to initiate action. At all other times, it would review the actual operation theof system and provide a forum for the resolution of conflicts among users.

6.3.2.2 - Drought Handling Alternatives

As an outgrowth of the policy studies outlined above, seasonal drought handling policy options should be examined. A computational tool, possibly in the form of a computer simulation program which begins from a known system state andexamines the probable consequences of a given policy option, will be required. Procedures to be followed at the beginning

of each Yala season to determine the probability of system failure and the means to share impending shortages can then be put into place. The policy can be reexamined at any time during the season to theassess effects of unexpected inflows, altered energy generation requirements, etc.

Given the security of its water supply made'possible by its reservoir, the Maduru Oya project will be less vulnerable to temporary upstream shortages than will Systems A and C. An impending shortage, once identified, can be programmed into the Yala operating plan for the reservoir and the project area.

6.3.2.3 - Data Gathering and Processing

To maintain control of water allocation throughout the

Mahaweli system, and particularly to respond to unexpected changes as they occur, will require rapid collection,

analysis and display of critical indices of system status, demands and performance. These data would include -

- rainfall at key catchment and irrigation area locations

daily

- natural streamflows, canal, tunnel and power station flows

- at key points in the system - daily

- key reservoir levels - daily

- electrical energy - generation at key hydro plants - daily

- status of national system - weekly

- crop status in irrigation areas - weekly.

The data would be reported by radio or telegraph and computer coded, as received, at the Water Management Center. Weekly

reports based these data limitedon limited with interpretation, could be processed on the computer as soon as the

last day's data are entered.

6.3.2.4 - Demand Estimation

Based on weekly reports by individual projects, or, if neces

sary, by independent calculation at the Center, irrigation demands at key allocation points would be estimated for the coming two weeks. A longer-term estimate might be prepared as well, for use in long-range forecasts if required. A key

element of this exercise would be the comparison of the

53

demands predicted for the previous week and the actual flows. Investigations of the reasons for significant discrepancies should receive high priority, as a means to improve the reliability of the weekly analyses and to assist in identifying the wasteful use of water.

6.3.2.5 - Operating Strategy Determination

A computer simulation program will greatly simplify the calculations of reservoir releases, energy generation, reservoir levels etc which will result from delivering the water requirements calculated as described above, according to policy guidelines approved by the Water Users' Committee. Once again, comparisons of predicted and actual performance combined with one- and two-week projections of operating requirements will be needed.

6.3.2.6 - Support of Project Staff

The Water Management Center, as envisaged here, would not only perform its coordinating role among the projects and in operating the major distribution works, but would be a source of expertise in water management for use by project personnel. Cooperation between Centerthe and project staff will make the estimation of irrigation water requirements easier for the Center and better related to actual farmer

needs.

Joint studies of instrumented areas within the projects to assess water usage rates and the potential for improving them would provide a useful basis for detailed technical contact. The analytical capabilities of the Center would be of particular benefit in formulating and interpreting the results of the studies.

55

7 - PROJECT MANAGEMENT COSTS

In principle, the estimate of project management costs has been considered in the context of the two phases already referred to in this annex: the Construction Phase in which the costs are spread over a limited time period and are therefore akin to capital outlays; and the Operating Phase in which the costs build up to an annual total which is applicable throughout the life of the project.

In practice, the manner of preparing all the project estimates has resulted in a modified breakdown of these costs. The construction cost estimates presented in Annex D identify separately the cost of expatriate consultants for the headworks and canal system. The rates on forwhich the estimate

the tertiary system is based include an allowance which is considered adequate to cover the cost of the MDB project management staff described in Section 3 of this annex. On the other hand it has been necessary to build up an estimate of the cost of the MEA organization described in Sections 4 and 5.

At the same time, estimates have been prepared for the Project Management Infrastructu,7e, comprising primarily the accommodation required for the management staff. Allowance has been made for the use by the operating staff of a proportion of the accommodation built for the construction management personnel. Thus at least one cost item is divided between the construction operation phases.*and

*In practice it may also be expected that items of equipment,

especially vehicles, will be transferred to the operatingstaff as construction of the project is completed. This hasbeen taken into account in estimating MEA's transportation requirements.

Operation and maintenance costs for the engineering works have been based, as is customary, on assumed percentages of

the capital costs involved. MEA's management and agrarian service costs have been estimated on the basis of assumed

salaries for an appropriate range of personnel with an additional consolidated allowance of 50 percent for fringe

benefits, support, administrative costs, travel, etc. The following salary rates have been assumed in estimating the

cost of the MEA field organization.

Rs/Annum

Senior Managers 25,000

Professionals and Senior Specialists 15,000 - 20,000

Unit Managers and Service Team Specialists 10,000 - 15,000

Field Officers 9,000

The costs referred to in the foregoing paragraphs are

presented in the following tables

Table K-7.1: Cost Estimate - Project Management

Infrastructure

Table K-7.2: Estimate of Operation and Management Costs

All costs are expressed in 1979 rupees.

57

TABLE K-7.1

COST ESTIMATE PROJECT MANAGEMENT INFRASTRUCTURE

Million Rupees

Housing Requirements

MDB: 900 units at 85 m2 at Rs 1,050/m 2 80 2 2MEA: 850 units at 90 m at Rs 1,175/m 90

Deduct for reuse by MEA of 75 percentMDB houses (60)

Subtotal - Housing 110

Office Buildings

MDB + MEA 20

Transportation and Other Equipment

Allow for 400 bicycles 300 motorcycles 100 jeeps office equipment 15

TOTAL PROJECT MANAGEMENT INFRASTRUCTURE 145

Assumed Breakdown: Sri Lanka costs 101.5 Foreign costs 43.5

SCHEDULE OF COSTS (million Rs)

Scenario A Scenario B Sri Sri

Year Lanka Foreign Total ForeignLanka Total 1980 14.0 6.0 20 9.8 4.2 141981 14.0 6.0 20 9.8 4.2 141982 14.0 6.0 20 9.8 4.2 14

1983 14.0 206.0 9.8 4.2 141984 14.0 6.0 20 9.8 4.2 141985 14.0 6.0 20 9.8 4.2 141986 14.0 6.0 20 9.8 4.2 141987 3.5 1.5 5 9.8 4.2 141988 - - 9.8 4.2 141989 9.8 4.2 141990 3.5 1.5 5

58

TABLE K-7.2

ESTIMATE OF OPERATION AND MANAGEMENT COSTS

Million Rs Per Annum

Operation and Maintenance of Engineering Works

(based on percentage of capital cost including

contingencies but excluding engineering)

Headworks - 0.5 percent on Rs 1,602.9/m 8 Irrigation Works - 1.5 percent on Rs 2,421/m 36 Allocation of Right Bank transbasin canal (nil in Base Case)

Subtotal 44 (For Sensitivity only - 50 percent of Right Bank transbasin canal allocated - 1 percent on Rs 504/m) (5)

Management Costs

MEA Organization (other than Agrarian 3.4 Development Service) - 310 persons

Agrarian Development Service - 540 persons 6.1 Allow 50 percent for indirect benefits, 4.7 administrative cost, supplies, travel and miscellaneous expenses

Subtotal 14.2

Total Operation and Maintenance, and Management 58.2

Table K-7.2 - 2 59

Estimate of Operation and Management Costs

Million Rs Per Annum

Brought forward 58.2

General Overhead - allow approximately 2.8 5 percent

TOTAL FOR MANAGEMENT DURING OPERATION PHASE 61.0

SCHEDULE OF COSTS

Year Scenario A Total Scenario B Total (million Rupees) (million Rupees)

1981 1 1

1982 4 3

1983 5 4

1984 25 20

1985 36 28

1986 49 35

1987 61 44

1988 61 53

1989 61 61 and on

For Sensitivity Test (50 percent of Right Bank transbasin canal charges to Project), add Rs 5 million per year with effect from 1984, in both Scenarios.

APPENDIX I

EXTRACTS FROM MAHAWELI

DEVELOPMENT BOARD ACT, NO. 14 OF 1970

APPENDIX I

EXTRACTS FROM MAHAWELI DEVELOPMENT BOARD ACT, NO. 14 OF 1970

8 - Functions of the Board

The functions of the Board, within any special area, shall

be

(a) to promote and operate schemes of irrigation, water

supply, drainage, flood control and control of soil

eros ion

(b) to promote agricultural and economic development

(c) to ensure the necessary coordination between the Government and local bodies in the development of such

area.

9 - Powers of the Board

The Board may exercise all or any of the following powers

within any special area

(a) to construct, maintain and operate such dams, channels,

drainage systems and other irrigation works and structures as may be required for any of its purposes

(b) to determine and levy rates for the supply of water for

irrigation

(c) To construct waterworks for the supply of water for industrial and domestic purposes and levy rates or fees for the supply of such water in bulk or by retail

1-2

(d) to construct and maintain roads, buildings and other public utilities

(e) to undertake land and agricultural development operations

(f) to enter into and perform, either directly or through authorized agents, such contracts as may be necessary

for the exercise and performance of its powers and

duties

(g) to acquire and hold any movable or immovable property, or dispose of any movable or immovable property acquired or held by it

(h) to establish provident funds and to provide welfare and recreational facilities, houses, hostels and other like accommodation for the employees of the Board

(i) to do all other things which are necessary for the proper discharge of its functions

10 - Generation and Supply of Electrical Energy

The Board may, with the concurrence of the Electricity Board, construct such installations as may be necessary for the purpose of the generation and supply of electrical energy

11 - Activities of the Board

(1) The Board may establish its own departments or agencies for the purpose of any work of planning, designing,

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construction operations or any other work involved in the discharge of its functions, or may make arrangements with Government departments, public corporations and local authorities and other similar bodies for carrying out its functions.

(2) The Board may, with the approval of the Minister given with the concurrence of the Minister of Finance, make arrangements with Government departments and educational and research institutions for carrying out research, and make cash grants to such departments or institutions for

the purpose.

(3) The Board may establish, maintain and operate laboratories, experimental and research stations and farms, for conducting such experiments and research as may be necessary in the exercise and discharge of its powers and functions.

APPENDIX II

EXTRACTS FROM MAHAWELI AUTHORITY OF SRI LANKA, ACT NO. 23 OF 1979

APPENDIX II

EXTRACTS FROM MAHAWELI AUTHORITY OF SRI LANKA, ACT NO. 23 OF 1979

12 - Functions of the Authority

The functions of the Authority in, or in relation to, any Special Area shall be

(a) to plan and implement the Mahaweli Ganga Development

Scheme including the construction and operation of reservoirs, irrigation distribution system and installations for the generation and supply of electrical energy:

Provided, however, that the function relating to thedistribution of electrical energy may be discharged byany authority competent to do so under any other written law;

(b) to foster and secure the full and integrated development of any Special Area

(c) to optimize agricultural productivity and employment

potential and to generate and secure economic and agricultural development within any Special Area

(d) to conserve and maintain the physical environment within any Special Area

(e) to further the general welfare and cultural progress ofthe community within any Special Area and to administer the affairs of such area

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(f) to promote and secure the participation of private capital, both internal and external, in the economic and

agricultural development of any Special Area, and

(g) to promote and secure the cooperation of Government

departments, State institutions, local authorities, public corporations and other persons, whether private

or public, in the planning and implementation of the Mahaweli Ganga Development Scheme and in the development

of any Special Area.

13 - Powers of the Authority

Notwithstanding the provisions of any other law and without prejudice to the generality of the power conferred on the

Authority by this Act, the Authority shall in or in relation to any Special Area have the power

(1) to construct, maintain and operate such dams, channels, drainage systems, and other irrigation works and structures for the purpose of achieving its objects

(2) to construct such hydro-power installations as may be necessary for the purpose of the generation and supply

of electrical energy

Provided, however, that the function relating to the distribution of electrical energy may be discharged by any authority competent to do so under any other written

law

(3) to take such measures as may be necessary for watershed

management and control of soil erosion

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(4) to promote, assist in, and secure the settlement of persons on lands, farms and properties in any special area and to make, advance to and pay for or contribute to the expenses of, and otherwise assist persons settling, farming or otherwise developing any such lands, farms and properties or are desirous of so doing and to take all such steps as are necessary or are connected therewith

(5) to manage farms and to engage in farming, agricultural and horticultural activities of every kind

(6) to manage, improve, farm, cultivate, maintain, lease, purchase, sell or otherwise deal with all or any part of lands

(7) to provide advisory and farmer training services to improve cultivation techniques, water management, soil management and the preservation of the physical environ

ment

(8) to assist in the implementation of agricultural plans formulated by family communities

(9) to manage and operate a scheme of supervised credit to farmers

(10) to provide agricultural inputs such as seed materials, fertilizers, agro-chemicals, power, agricultural machinery and equipment to farmers and persons

(11) to carry out research relating to the development of agriculture and agro-based or related industries

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(12) to promote, undertake and participate in agro-based or related industrial or commercial enterprises

(13) to recover cesses on farm and other produce and to levy a charge or fee for the supply of water and for any service rendered by the Authority.

(14) to provide marketing services for the purchase, storage, processing and sale of farm and other produce

(15) to manufacture, buy, sell and generally deal in any plant, machinery, tools, goods or things of any des

cription

(16) to purchase or otherwise acquire, erect, maintain, reconstruct and adapt any offices, workshops, plant, machinery and other things

(17) to import, export, buy, sell and otherwise deal in goods, produce, articles or merchandise

(18) to acquire by subscription, purchase or otherwise and to accept and take, hold and sell, shares or stock in any company, society or undertaking, such as may be likely to promote or advance the objects of the Author

ity

(19) to accept stocks or shares in or debentures, mortgage debentures or other securities of any company in payment or part payment for any services rendered or for any sale made to or debt owing from any such company

(20) to pronote, invest and participate in subsidiary, companies which have a principal place of business

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(21) with the concurrence of the Minister in charge of the subject of Finance, to borrow, raise money or secure obligations from sources, either in Sri Lanka or abroad, by the issue of debentures, debenture stock, bonds mortgages, or any other securities or without any security, and upon such terms as to priority or otherwise as the Authority may determine

(22) to receive money on deposit with or without allowance

of interest thereon

(23) to advance or lend money upon such security as may be adequate or without taking any security therefor

(24) to invest the monies of the Authority in such manner as may from time to time be deLermined by the Authority

(25) to draw, accept and make, and endorse, discount andto

negotiate bills of exchange and promissory notes and other negotiable instruments

(26) to issue or guarantee the issue of or the payment of interest on shares, debentures, debenture stock or other securities or obligations of any company or association and to pay or provide for brokerage, commission and underwriting in respect of any such

issue

(27) to act as agents for any Government or other authority and for private or public bodies and other persons

(28) to undertake promotional and advertising activities

connected with the objects of the Authority

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(29) to pr'omote, organize and manage all kinds of sports recreations and entertainments and to provide facilities for recreation and other leisure-time occupation in any Special Area

(30) to provide for the relief of poverty suffering and distress among persons within any Special Area

(31) to subscribe or contribute to any charitable, benevolent or useful object of a public character within any Special Ar-i

(32) to appoint such employees and agents, as are necessary for carrying out the functions of the Authority

(33) to provide for the welfare of persons in the employment of the Authority or formerly in the employment of the Authority and wives, andthe widows families of such persons, by grants of money, pensions or other payments and to form, subscribe to or otherwise aid benevolent, religious, scientific nationalor institutions in any Special Area

(34) to take all such steps as are necessary for the general welfare of the community in any Specii.l Area

(35) to exercise any of the powers of the Authority whether as agents, trustees or otherwise and whether alone or in conjunction with others, and

(36) to do all such other acts and things as are incidental to or consequential upon or connected with the exercise, performance and discharge of the powers, duties and functions of the Authority

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14 - Departments and Agencies of the Authority

(1) The Authority may establish its own departments or agencies for the purpose of any work involved in the discharge of its functions.

(2) The Authority may make arrangements or contracts with Government departments, local authorities, public corporations and other bodies whether private or public for the purpose of carrying out its functions.

15 - Empowering of Persons to Act For Authority Outside Sri Lanka

The Authority may in writing under its seal empower any person, either generally or in respect of any specific matter, to act for and on behalf of the Authority in any place outside Sri Lanka

16 - Delegation of Powers, Etc of the Authority

(1) The Authority may, subject to such conditions as may be specified in writing, delegate to any Director or to any head of any department of the Authority, any power, duty or function conferred or imposed on or assigned to the Authority.

(2) Notwithstanding any such delegation, the Authority may exercise, perform or discharge any such power, duty or function.

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19 - Authority to Ensure that Financial Assistance Given For Any Purpose is Utilized for Same

The Authority shall take all such matters as may be necessary to ensure that any financial assistance rendered by the Authority to any agricultural, industrial or commercial enterprise is utilized for the purpose for which it is

given.

20 - Authority Not to Transact Business with Enterprise in Which a Director Has Interest Unless Approved by the Minister

The Authority shall not make an investment in or otherwise transact business with an enterprise to which a director of the Authority is a partner, director or shareholder or is in any other way directly or indirectly interested, unless the transaction is approved by the Minister.

21 - Special Powers of Authority In Respectof Certain Departments and Corporations

(1) Notwithstanding the provisions of any other law

(a) where the Authority considers it necessary for the purposes of this Act, the Authority