1.

1 ARJO-DIDESSA IRRIGATION PROJECT

1.1.1 GENERAL
Arjo Didessa Project is located along Didessa River, which is said to be the largest tributary of the Blue Nile River. It drains to the Abbay River contributing roughly a quarter of the total flow of Blue Nile. The catchment area from where the river drains is estimated to be 34,000 km 2 originating from the Mt. Venino and Mt. Wache ranges. It flows in an easterly direction for about 75 km, then after, turning rather sharply to the north until it reaches the Blue Nile River. The major tributaries of to Didessa River among others include Rivers of Wama from the east, Dabana from the west and Angar from the east (see Map 03 for location of Project). The catchment area at the proposed Dam site is 5,280 km 2, and it extends to area 8 districts of the two zones (Jima-Arjo and Illubabor) of the National Regional State of Oromia. The districts to which the catchment and command area of the project extends include among others, Limu Seka, Limu Kassa, Manna, Goma, Setema, Sigmo, Gera and Seka Chekorsa of West Welega zone, and Gechi, Boracha and Didessa of Illuababora zone. As per the feasibility study of the project (WWD&SE, May 2007), the project is intended to develop the area for irrigated agriculture by impounding the river flows, through the provision and construction of an 40.6 m high earth and rock-fill dam for which a feasibility design is available. The dam would be located in the Jima zone, on the river Didessa at about 1.5 km upstream of its confluence with Wama river. Two main canal systems would run along the right and left side of the river in order to irrigate the potential arable land (17, 825 ha) located on both sides of the river. Watershed management is also proposed as the major component and part of the development activities to be undertaken.

1.1.2 REVIEW OF AND ANALYSIS OF PREVIOUS STUDIES

The following studies pertaining to the Arjo-Didessa Irrigation project are available for review and analysis of the project:

Study made by USBR (1964): The United States Bureau of Reclamation (USBR) was the first to undertake the studies for the investigation of Land and Water Resources Development in the Blue Nile River Basin in General and the Arjo-Didessa River Sub-basin in Particular. The study was at reconnaissance level. The study identified several Largescale irrigation and multi-purpose projects including the Arjo-Didessa project. Study by TAMS (1975): Following the study of the area by USBR, a consulting firm named TAMS based in USA made a study of the Didessa upper Valley. The purpose of the study was focused on the agricultural potential of the valley. Study by WAPCOS (1990): This study made by the Water and Power Consultancy Service, India, was also a reconnaissance level that extended to all river basins of Ethiopia for the study and update of the Ethiopian Basins. The study proposed two dam sites on River Didessa for the purpose of irrigation and hydropower development. The ARBID/MPS of 1999: this study covered the Arjo-Didessa Project by a reconnaissance level study. The project was not covered by a PFS at the time as it was not ranking high enough.

However, WWD&SE in association with ICT studied the project at feasibility level in 2006/2007. The following reports had been produced and all details given hereunder are based on information/data extracted from these study reports:

Main Report Sectoral Studies in 5 Volumes:

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Volume I (a):

Surveying and Investigation,

Volume I (b): Appendices, Volume II: Volume III: Water Resources (4 Annexes), Natural Resources (3 Annexes), and

Volume IV: Environmental and Socio-economic Aspects (7 Annexes)

Map 03: Irrigation projects in Anger, Didessa and fincha sub-basins

1.1.3 PROJECT OUTLINE

The Didessa Irrigation Project is located in Jima (East Welega) and Illuababora zones of Oromia National Regional state within the Blue Nile River Basin of Didessa Sub-basin. It is a tributary of Abbay River. The following are the main features of the project as outlined by the recent feasibility study and presented in the Main Report

The project comprises a rock-fill earth dam of 40.6 meter height, The dam is to be built on the main stream of the river Didessa upstream of the confluence of Wama River; Two canal systems are proposed to offtake water to both flanks, right and left banks, to supply water to a gross command area of 17,825 ha; The project area comprises 4 major components:
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The reservoir area covers 8,785 ha and extends to 15 kebeles; The catchment area is 34,000 km2; The dam site is located within two kebeles /localities/: right bank located in Wama and the left bank located in Chitu Bosona Kebeles; The command area is located along both banks of the river, covering 3 and 8 kebeles at the right and left sides respectively. The gross command area is estimated to be about 17,825 ha with net cultivable area assumed to be 13,665 ha 7,450 ha on the left and 6,225 ha on the right banks.

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The average elevation of the project area is 1,340 masl receiving a mean annual precipitation of 1,600 to 1,800 mm; clay for vertisols that vary with depth indicating the existence of moderately deep-to-deep soils; The area is sparsely populated with very low cropping intensity of about 15-20%; The average temperature of the project area ranges from 20 0C to 25.4 0C with a maximum temperature reaching 27.7 0C and a minimum temperature declining to 16.3 0C; Teff is the main subsistence crop followed by maize and sorghum, and a high maize production was registered compared to other crops; system. That is, the rainfed crop cultivation integrated with livestock rearing is the main agricultural system in the area.

The soils of the project area vary from sandy loam to clay for reddish brown soils and clay to heavy

The farming system in the project area is, as many of other areas in the country, a mixed farming

1.1.4 PRESENT SITUATION

The feasibility study reports for the irrigation developments have been completed and submitted to the Ministry of Water Resources. The Ministry had reviewed the reports a long time ago. The detailed design of the irrigation component is presently in progress by the consultant.

As the main objective of the project was to optimise the benefits from the available water resources at the proposed dam sites, a pre-feasibility study is now being undertaken by the same consultant in order to harness the available potential for the generation of hydropower along with the development of the proposed irrigation schemes. If this proposal were found attractive, the immediate objective would be to go ahead with the preparation of a feasibility study and detail design for the hydropower component as well. It has been confirmed that a firm power generation of 20 MW could be achieved. Adopting a load factor of 60% the installed capacity could be kept as 33 MW but this has resulted in raising the dam height by 20 meters in order to harness the potential hydropower generation available at the site. Simulation studies had been conducted for power generation by increasing dam heights prior to arriving at the final decisions. The Project area covers 2 zones of Oromia National Regional State in 8 and 3 districts of the two zones respectively. Geographically it is bounded between latitudes 8 30 and 8 40 N, and l ongitudes between 36 22 and 36 43 E. The project is within the Didessa River sub -basin, and the river flows into Nile River. Many rivers like Wama, Angar, Kolati and Sope Rivers are the main tributaries of Didessa River, which in return is the main tributary of the Abbay River. The Project area is accessible via two highways and from two directions. The AA Nekemte main road and the road from AA to Bedele are the main highways joining the project area with other areas via Arjo-Bedele or Nekemte-Arjo-Bedele. It is approximately 30 km north of Bedele town. Thus BedeleArjo or Nekemte-Arjo-Bedele tracks links the project site with the main roads to AA. Infrastructures are poorly developed and needs serious attention and consideration. The occurrence of Malaria and Tsetse flies are the major constraint to voluntary and spontaneous settlement in the valleys, which is arable but idle land.

1.1.5 PHYSICAL ENVIRONMENT

The project site lands form a complicated system of hills, bordered and interrupted by, savannah plains sloping gently towards the river, while the nature of topography negates consideration for economic gravity flow irrigation at the extreme end of the river. The catchment area consists of undulating topographies with different ridges, valleys and steep slopes. There are many permanent and seasonal streams of water found between the ridges. The soil is very much degraded due to high population and overgrazing. The climate of the area is mild. The average temperature ranges from 20 0C to 25 0C, whereas the maximum temperature reaches 27.4 0C. The heavy annual precipitation is indicative of rainfed agricultural development potentials. The area forms part of the tertiary Trappean Lava composed of largely basalts and basaltic tuffs.

1.1.6 SURFACE AND GROUNDWATER RESOURCES

The Arjo-Didessa flows within three zones of Oromia Regional National State. The general slope of the sub-basin or catchment is toward NE, E & NW directions. The area has generally a rugged topography with the highest and lowest elevations of about 2,890 masl & 1,030 masl located at Sigmo-Gera and Didessa River Valley respectively. The presence of thermal springs, cold groundwater and saline springs in the area shows the diversification of the hydrogeological set up of the river catchment. The main groundwater recharge of the area is the SE, SW& the NE part of the river catchment. The intercalations of the volcanic ash with fractured and /or weathered volcanic lava flows cause the emergence of many springs within the Didessa River Valley. The surface runoff of the Didessa river catchment at the gauged station was recorded to be 2.11 BCM, whereas the total minimum monthly flow of the river (base flow) which was the best estimate that would potentially recharge the ground water was found to be 199 m3/s.

1.1.7 SOILS, LAND SUITABILITY, AND PRESENT LAND USE

Generally, the parent soil material of the project area is the result of colluvial & alluvial deposition. The soil types of the project are different. Soils like vertisols; weakly developed with dark grey to black & very greyish to dark brown colour covering an area of 13%, cambisols; weakly developed soils with area coverage of 15.2%, Luvisols; deep to very deep, dark reddish brown soils covering 8% of the area, Nitosols; having B horizon with shiny pedfaces and covering 6% of the area. Land suitability of the project command area was assessed versus the proposed and potential crops composing of rice, wheat, maize, vegetables, and sugarcane and forage under the conditions of different soil suitability classes. The present land use pattern was also studied for four districts where the command area of the project falls in. As per this study, the cultivable area accounted at 36.8% of the districts total area followed by 21.4% of uncultivated land. The grassland covered 14.2 %, while cultivated land accounted 17.7%. The other land uses were forest and woodland land (8.6%), buildings and settlement (1.0%) and swampy or water logged areas (0.5%). In general, the project command area was sparsely populated with very low cropping intensity of about 15-20%.

1.1.8 AGRICULTURE, LIVESTOCK AND FISHERIES

The main crops grown in the project area included among others maize (7,119 ha), sorghum (3,328 ha), Teff (8,827 ha), barely (706 ha), wheat (383 ha), and f. millet, horse bean etc are also cropped with less intensity in the order of the area coverage and productivity. The rainfed crop cultivation integrated with livestock rearing is the principal farming system in most parts of the project area. The area is sparsely populated with a few small holders; hence major part of the area was undeveloped even under rainfed agriculture. The grazing areas account 14% of the overall area; nevertheless the grasses are low nutritional value in the absence of any legume. The cattle are being reared mainly for sale and draught power for land preparation and threshing. Bullock local plough (Maresha), and manual operated tools are used for the land preparation. Generally, crops were cultivated only during the wet seasons through rain fed agriculture; hence the mono cropping was a dominating factor in the project area. Despite the high economic contribution of the livestock population in the project areas households, no significant changes had occurred in adopting a better management practices for increased animal productivity. The main problems discouraging this are animal diseases prevailing in the project area and shortage and unavailability of animal feeds. Didessa River is one of the main tributaries of Abbay River, which has fish resources at different segments of the river channel. The studies conducted in this respect indicated that fishery resources could be exclusively utilized for subsistence where the intensity varies along the different segments of the river Didessa and its tributaries. It is, however, concluded that in the project impact area, which was proved to be a virgin land, noninteraction of human activities with fish resources had existed. And thus no subsistence or commercial fisheries were experienced and practised in order to exploit these readily available resources.

1.1.9 ENVIRONMENTAL ASPECTS

The Environmental Impact Assessment (EIA) of the proposed project area was conducted at feasibility level by WWD&SE in association with ITC along with an integration of mitigating measures required in the design of the project, implementation and operation activities.

The study had indicated and proved that most part of the Didessa valley including the project area had been left undeveloped due to the influence of human and animal diseases particularly malaria and Trypanosomiasis respectively. The trend, however, has recently changed with the settlement of large number of people and expansion of cultivation by clearing vegetation covers. The settlement policy made by the government increased the movement of human interventions in the area. Settlers from the highlands had moved their animals to the low lands mainly looking for livestock grazing, but also for some cultivation and settlement. These phenomena had, therefore, triggered and resulted in the shortage of land and degradation due to population pressure in the uplands. The natural vegetation dominating in the project area was dominantly woodland Savannah, but with variation in density of woody vegetation, type of vegetation, drainage and slope. Wilde life of the Didessa valley including the project area has not been well studied. As mentioned earlier, as of the year 2003/04, due to the governments settlement policy programme, many people are settled in the project area as a result; big wild animals like lion and Gazel have migrated probably to downstream areas where there was room for these creatures. On the other hand, some species of wild animals such as primate species (eg Anubis baboon, Grivet monkey and colobus monkey), small antelopes, Warthog, wild pig, etc are still available in the area. With regards to aquatic fauna, Hippopotamus & Nile crocodile commonly occur in the Didessa River. On the other hand, the Environmental Management Plan of the Project encompassed in the study document has recommended the provision of monitoring modality mechanism so as to deal with above matters.

1.1.10 SOCIO-ECONOMIC AND INSTITUTIONAL ASPECTS

As is the case for most of other rural parts of Ethiopia, the majority of the inhabitants of the project impact area are driving their means of livelihood from mixed farming, involving crop production and livestock rearing. The need, however, was not promisingly satisfactory, by any yardstick, apart from perpetuating the prolonged peasant life that had involved a lot of toiling. As per the current study made by WWD&SE, on house hold socio-economic status of the project area, out of the total surveyed household 96% are earning their major source of income from crop production. This indicated that the farming system was dominated by crop farming. The number, type and distribution of social services like schools, health centres, water supply points, road networks & other infrastructures vary from district to district of the project area. In all cases of the districts, the provisions of socio-economic infrastructures are not sufficient and in some places it could be said as non-existent. The socio-economic impacts to be attributed from the project are identified as those of food security that would be attained sustainably, promotion of family welfare, creation of job opportunities, implementation of infrastructure that would probably be evenly distributed, promotion of income generating activities, and establishment of agro-industries. Similarly, the project would adversely impact the socio-economic conditions by threat of malaria, displacement of dwellers, loss of social services etc unless proper mitigation measures are to be taken prior to and after the implementation of the project is realised. Resettlement planning for the project was envisaged is envisaged in the current feasibility level of study of the project. As the proposed dam would submerge 8500 ha of land and the development area will cover 13665 net irrigable areas this situation on the ground would result in displacement of the habitants and damage of private and public properties. The major findings of the project revealed that there were also various communal properties that would be affected and damaged as a result of the implementation of the project. Further, the report details out the possible displacements that could occur and property damages due to the realization of the project.

Similar to the resettlement aspect of the project, the institutional set up of the envisaged project was also well addressed in the feasibility study (WWD&SE, 2007) of the project. In the report it was proposed that the institutional structure of the project to be effected in two phases:

Phase I: Planning, Design and Implementation (the responsibility is fully entrusted to MoWR), and Phase II: Operation and Maintenance (the responsibility bestowed to Oromia Irrigation Authority).

1.1.11 ECONOMIC ASPECTS

Financial and economic analyses of the project have been conducted at feasibility study level. Accordingly, the Net Present Value (NPV) incremental of the project at 10% discount factor is estimated to be ETB 607.5 million with the same discounting factor, the BCR is found to be 1.87. The IRR for the financial cost flow is found to be 15.4%. Thus, the analysis indicated that the project was viable at 2006 constant prices prevailed in the country, Ethiopia. The economic analysis, on the other hand, had indicated that the incremental benefits of the project at 19% discount factor to be at ETB 1312 million Birr. With the same discounting factor the economic B/C ratio was to be found 3.2. The EIRR for the financial cost flow was found to be 22.06% indicating that the project is economically most viable and robust. The updated project investment and recurrent costs are shown in the Chapter on Cost Estimates.

1.1.12 CONCLUSIONS AND RECOMMENDATIONS

It was proper and high time to recommend the project for further detail design and implementation, as it is vivid from the study output of the project that prevailed in all terms of the project. It was economically viable and environmentally friendly and sustainable with insignificant limitations, which were not indicative to careful scrutiny in order to come up with serious mitigation measures. The Arjo-Didessa Irrigation Project, which would be a large-scale irrigated agriculture development project, would no doubt contribute to improving the socio-economic situation in the region in particular and in the country in general.