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

2. WEST DELTA Northern Area (Nubaria) Northern Area (Nubaria) Area65000 feddans Area65000 feddans Irrigationsurface Irrigationsurface Southern Area Southern Area Area190000 feddans Area190000 feddans Irrigation underground water Irrigation underground water

3. WEST DELTA Total area255000 feddans Total area255000 feddans (100000) hectars Agriculture annual output Agriculture annual output $300-500 million Inhabitants500000 Inhabitants500000 Jobs250000 Jobs250000 Cultivated land47% Cultivated land47% Water extraction870 milliom cu meter Water extraction870 milliom cu meter (in year 2000) 36.2% increase over a decade

4. THE PROJECT Closed conduit (piped) surface water irrigation system Closed conduit (piped) surface water irrigation system In southern area only, i.e. 190000 feddans In southern area only, i.e. 190000 feddans Threshold area 90000 feddans Threshold area 90000 feddans Private Public Partnership Private Public Partnership Private operator (local or foreign, individual or consortium) Private operator (local or foreign, individual or consortium) 30 years concession basis 30 years concession basis Full cost borne by farmers Full cost borne by farmers Design-Build-Operate scheme Design-Build-Operate scheme Contractual interest of farmers to “ Connect and Pay ” Contractual interest of farmers to “ Connect and Pay ” Operator can withdraw if contracting farmers less than threshold Operator can withdraw if contracting farmers less than threshold Good potential for a growing agribusines Good potential for a growing agribusines

5. CONSTRUCTION (INFRASTRUCTURE) COST $ 203.5 million, for 90000 feddans only $ 203.5 million, for 90000 feddans only 15% to be covered by operator ’ s own contribution ( venture capital) 15% to be covered by operator ’ s own contribution ( venture capital) 85% loan from World Bank through the Egyptian Government 85% loan from World Bank through the Egyptian Government Line of credit type of lending Line of credit type of lending Repayment through annual concessional fees to the government Repayment through annual concessional fees to the government

6. PROJECT COST 1. Fixed (capital) cost 1. Infrastructure for 90000 feddans 2. Expansion beyond 90000 feddans (max. 190000 feddans) 2. Variable Cost 1. Operating cost 2. Routine maintenance 3. Management fees

7. FARMERS’ TARIFF 1. Fixed component per feddan covering: 1. Annual concessional fees 2. Expansion cost ( beyond 90000 feddans)?? 3. Return on investment / profit 2. Volumetric component per cubic meter covering: 1. Operating cost 2. Routine maintenance 3. Management fees

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