Transcript kimira oluch smallholder farm improvement project

MINISTRY OF REGIONAL DEVELOPMENT
AUTHORITIES
KIMIRA OLUCH SMALLHOLDER FARM
IMPROVEMENT PROJECT
KIMIRA MAIN CANAL M3
OLUCH INTAKE WEIR AND BRIDGE
PROJECT IMPLEMENTATION PROGRESS REPORT
PRESENTED TO THE PERMANENT SECRETARY,
ON 9TH JULY, 2012
1.2 Key Dates
2
 Date of Loan/Grant Approval:
31st May 2006
 Date of Loan/Grant Signature:
14th July 2006
 Date of Loan Effectiveness:
21st September 2006
 Date of Grant Effectiveness:
14th July 2006
 Date of Loan Disbursement
Effectiveness:
20th October 2006
 Date of Grant Disbursement
Effectiveness:
6th November 2006
 Starting Date and Duration:
February 2007, for 6yrs
 Loan Last Disbursement Date:
30th September, 2013
1.3 Project Goal
3

To improve income levels in a sustainable manner
for the rural households and thus reduce poverty

To improve agricultural productivity and
production and Value of produce for poverty
reduction and improved livelihoods
1.4 Project Objectives
4
 To
develop sustainable and environmentally
friendly smallholder irrigation schemes in Kimira
and Oluch.
 To
empower farmers through acquisition of
entrepreneurial skills to manage the schemes.
 To increase household income and food security
through irrigated agriculture
2.0
PROGRESS IN PROJECT IMPLEMENTATION
5
 The Executing Agency (EA) – MoRDA constituted
KOSFIP Project Management and Coordination Team
(PMCT) in March, 2007, and currently has a workforce
of 54.
 Since then it has been implementing project activities
under the following three (3) distinct components:2.1
Irrigation Scheme Development and
Management
Under this component activities are being undertaken
under the following sub-components:-
2.1.1 Formation of Water Users Associations
6
 The target farmers have been organized to form
Kimira Water Users Association and the Oluch
Water Users Association.
 The two IWUA’s were registered under the Ministry
of Social Services and assisted to obtain permits
from Water Resources Management Authority
(WRMA).
 The community members have been mobilized and
sensitized to develop IWUA constitutions.
 Registration of IWUA members is ongoing.
2.1.1 Formation of Water Users Associations
7
 Election of the leaders will take place in July, 2012
 The two IWUA’s will then be registered at the
Attorney General’s Chamber.
 Both IWUA’s have opened bank accounts.
 The PMCT, in conjunction with the relevant line
Ministries, has continued to capacity-build the two
IWUAs to be in a position to operate and maintain
the two irrigation schemes upon handing over.
2.1.2 Irrigation Scheme Development
8
Under this sub-component the irrigation and drainage
infrastructure for the two schemes were to be delivered
using two phases; namely:i) Major Civil Works Contracts
 Two contracts were awarded to M/S Sinohydro Corporation
Ltd/Machiri Ltd Joint Venture at costs of Ksh.1,396,134,224.54
and Ksh.1,543,670,027.48 for Kimira and Oluch Schemes,
respectively.
 The two contracts run concurrently and are expected to end in
October, 2012.
 The summary of progress of construction works for each contract
are as indicated in the next slide;
Table 1: Summary of Progress of Major Civil Works
9
Description
% Completed in Kimira % Completed in Oluch
Intake Works
90%
98%
Water Conveyance System
90%
90%
Sand Trap
98%
96%
Major & Minor Siphons
97%
82%
Night Storages
90%
85%
Drainage Systems
60%
60%
Access and Service roads
90%
85%
Communal Water Points
75%
56%
WUA Buildings
97%
98%
Maugo Bridge
76%
Lower Awach Tende Bridge
98%
Overall works progress
88%
84%
ii) Minor Civil Works
10
 The contract for design and supervision of Minor Works
was awarded to M/S Otieno Odongo & Partners
Engineering Consultants on 6th Dec 2011 at a cost of
Kshs.88, 302,100.
 The Consultancy is to run for 24 months with effect
from 31st January, 2012, and is now on its 6th month.
 The consultant has submitted preliminary designs for
in-block irrigation & drainage systems for 12 blocks in
Oluch Scheme.
 The consultancy is however behind schedule as the
tendering process should have commenced for the first
10 blocks in each scheme, by 30th June, 2012.
ii) Minor Civil Works Cont...
11
 The works are to be executed through several
national contracts which will run concurrently, under
supervision of the consultant.
 The Loan funds allocated for the Minor works is
Kshs. 124,984,643.50. However the preliminary
cost estimates for the works is Kshs.
1,207,897,635.00, hence there is an approximate
deficit of Kshs. 1,082,912,991.50. The exact cost,
however, will be known once the Engineer’s Estimate
is ready.
2.1.3 Supervision of Scheme Construction
12
 Construction
of Major Civil Works is being
supervised by M/S Sabbour Associates/CAS
Consultant Ltd who were awarded a 60 months’
contract for this consultancy and are currently on
their 51st month of service.
2.1.4 ENVIRONMENTAL MITIGATION
13
a)
Compensation for affected parcels of land and
using Grant Funds
houses
The Bank availed a grant of approximately Kshs.130.7Million,
to fund activities under this sub-component.
These include:
Trainings and Monitoring

Increasing farmers’


awareness on best environmental
management practices through training workshops.
Monitoring the implementation of environmental management
plan, during project implementation.
Oversight environmental monitoring by the District Technical
Advisory Committee to ensure contractor adherence to the code
of good practice.
2.1.4 ENVIRONMENTAL MITIGATION Cont...
14
 Under Grant funds, 24 houses (18 in Kimira and 6 in Oluch)
were tendered. Construction of 14 (11 in Kimira and 3 in
Oluch) have been completed and handed over. Construction
of 5No is nearing completion, while completions of the last
5No have been retendered.
 51 land owner’s who were identified during project design,
have been compensated for loss of land to the night storage
reservoirs.
2.1.4 ENVIRONMENTAL MITIGATION Cont...
15
b) Compensation for affected parcels of land and


houses using GoK Funds
During project implementation, more families have been
identified to be on the irrigation canal alignment, while new
farmers have lost land to Night Storages Reservoirs. GoK
has availed an additional Kshs. 123Million to compensate
another 59 farmers, and construct 71 new houses and 1
church.
GoK has also funded construction of 71 houses (32No.
houses in Kimira; 39No. houses and 1No. Church building
in Oluch Scheme), through 37 contracts.
2.1.4 ENVIRONMENTAL MITIGATION Cont...
16
 The
allocation for compensation activities including
resettlement houses for, FY 2011/2012 was Kshs.123 Million.
Out of these funds, Kshs.11,039,585 were utilized in
compensation for land taken up by night storage reservoirs.
 The total contract sums for the 37 No. GoK contracts for
construction of resettlement houses is Kshs.157 Million.
Therefore, the total expenditure on compensation including
the funds committed under the resettlement houses contracts
is Kshs.168,039,585. This implies that there is a shortfall of
Kshs.45,039,585 which we have requested for in FY
2012/2013.
2.2 Marketing and Extension Component
17
 This component has three sub-components:- i) Support
to farmers; ii) Support to extension workers; and iii)
Market linkages.
 The activities in the above three Sub-Components were
to be implemented by a Consultant - M/S Sabbour
Associates/CAS Consultants/Heritage Consultants Ltd,
who failed and its services were terminated.
 The component is now being implemented by PMCT,
spearheaded by Agronomists.
 The activities that have been achieved include provision
of capacity building to farmers on agricultural
production and sustainability which is done in
coordination with relevant line ministry technical staff.
2.3 Procurement
18
 Major procurement of goods, services and works
have been concluded.
 Evaluation of Proposals for the consultancy on
Environmental Audit is on-going.
2.4 Disbursement
19
 The cumulative disbursements on the Loan funds
stand at Kshs.2,011.09 Million (77.23%) of the total
ADF Loan amount of UA 22,978,992 approximately
Kshs.2.604 Billion.
 The Government has disbursed a total of Kshs.1,
273.46 million since Project inception.
Table 2:
Funds received as at 30th June 2012
20
Kshs ‘000000’
Source of Funds
ADF – Loan Revenue
ADF – Loan A-I-A Direct Payments
ADF – Grant Revenue
Total
149.19
1,861.90
57.74
GoK Contribution
1,273.46
Total
3,342.29
Table 3: Cumulative Expenditure as at 31st May, 2012.
21
Financier
“000,000” Kshs
ADF – Loan
1,976.33
ADF – Grant
30.68
GoK
1,019.90
Total
3,026.91
Percentage
66.31%
33.67%
2.3 Audit
22
 The Project has been prompt in submitting to the
Kenya National Audit Office(KENAO) its
Financial Statements for auditing, and the Bank
has accepted the certified Project Financial
Statements and Audit Reports for Financial
Years (FY) 2006/2007 (3months); 2007/2008;
2008/2009; 2009/2010; and 2010/2011.
 The Project has no outstanding audit issues.
3.0 KEY CHALLENGES
23
3.1
Need for additional funds for development of
Minor Works
 The amount allocated for the Minor works is Kshs.
124,984,643.50. However the preliminary estimated cost
of the works is Kshs. 1,207,897,635.00. This implies that
there is an approximate deficit of Kshs. 1,082,912,991.50.
3.2
Provision of way-leaves for construction of
Irrigation and Drainage Infrastructure: The farming communities had not anticipated the sizes
of the way- leaves necessary for construction of Access
and Service Roads; Irrigation and Drainage
Infrastructure. There is now considerable resistance for
way-leaves to construct the drains and secondary canals.
3.0 KEY CHALLENGES Cont…
24
3.3
Vandalism and theft of irrigation
structures’ Metal Works.
There has been reported cases of theft and vandalism
of installed gates and valves on the major irrigation
infrastructure in both Kimira and Oluch schemes.
This pauses two challenges; A threat to the efficient operations of the system
once handed over to the farmers.
 Lack or weak sense of ownership by the targeted
beneficiaries of the schemes being constructed.
3.0 KEY CHALLENGES Cont…
25
3.4 Effects of flooding
The floods experienced in April/May 2012 across the
country affected the access roads, canals and drains at
the project area. In some areas the structures were
vandalized by the community to allow passage of flood
water. The floods also eroded most of the drains,
forming big gullies. This pauses two challenges; Additional costs for repair of the damages on the
roads and the canals.
 Need for stone pitching of most drains
3.0 KEY CHALLENGES Cont…
26
3.5
Increased demand for compensation
Following the new compensation considerations, there is marked
increase in demands by the community members for compensation.
The April/May 2012 floods have made the situation worse.
This has affected way-leaves for construction of drains, for which
farmers are now demanding for compensation, although those were
contributions by the community, in accordance to the Loan Agreement.
3.6
Low sense of ownership of the project by the Beneficiary
community
 Community ownership of the project is still low in spite of the intensive
sensitizations done. This was depicted in the low number of farmers who have
registered as IWUA members - which is way below 10%, for each scheme.
 The Project Steering Committee noticed this and formed a committee to
develop an exit strategy on transitional management of the schemes so as to
facilitate smooth handing over to farmers. The exit strategy paper has been
prepared although it is yet to be presented to the stakeholders for ratification
before submission to MoRDA.
4.0 RECOMMENDATIONS
27
 Need for extension of implementation period by at least
one (1) year after the set 30th September, 2013, Loan last
disbursement date.
This is necessary to oversee the completion of the
construction of Minor works, the defects liability period
for the last Minor works’ element, preparation of
operation and maintenance manuals, handing over and
preparation of Project Completion Report (PCR).
 GOK to provide additional funding for construction of
minor works.
 More sensitisation of farmers on provision of way- leaves
and ownership of the infrastructure.
28