E4155 V4 Uzbekistan Drainage, Irrigation and Wetlands Improvement Phase- 1Project Consulting Services for Environmental and Social Assessment for South Karakalpakstan Water Resources Management Improvement Project (Loan No. 4707-UZ / Credit No. 3796-UZ) Project Implementation Unit for Water Infrastructure Ministry of Agriculture and Water Resources of the Republic of Uzbekistan and World Bank FINAL REPORT SOCIAL ASSESSMENT FRAMEWORK Prepared by: Projects Implementation Unit for Water Infrastructures Project Implementation P February 2013 CONTENT CONTENT ..................................................................................................................................2 LIST OF TABLES .......................................................................................................................4 LIST OF FIGURES .....................................................................................................................6 LIST OF DIAGRAMS ..................................................................................................................7 LIST OF ANNEXES ....................................................................................................................8 GLOSSARY ................................................................................................................................9 ACRONYMS AND ABBREVIATIONS ....................................................................................... 10 PROJECT SUMMARY .............................................................................................................. 11 INTRODUCTION ...................................................................................................................... 21 METHODOLOGY OF SOCIAL ASSESSMENT......................................................................... 27 CHAPTER I KEY STAKEHOLDERS AND BENEFICIARIES OF THE PROJECT ..................... 42 1.1 GENERAL INFORMATION......................................................................................... 42 1.2 KEY STAKEHOLDERS .............................................................................................. 43 1.3 KEY BENEFICIARIES OF THE PROJECT ................................................................. 53 CHAPTER II BASIC STATISTICAL INFORMATION ABOUT RAIONS OF PROJECT ZONE ... 55 2.1 BRIEF DESCRIPTION OF THE REPUBLIC OF KARAKALPAKSTAN AND PROJECT RAIONS .................................................................................................................................... 55 2.1.1 GEOGRAFICAL INDICES OF PROJECT RAIONS ................................................... 56 2.2 BRIEF DESCRIPTION OF GENERAL STATISTICAL INDICES OF PROJECT RAIONS ... ....................................................................................................................................... 57 2.2.1 DEMOGRAPHY OF PROJECT RAIONS................................................................... 57 2.2.2 INDICES OF SOCIAL-ECONOMIC DEVELOPMENT OF PROJECT RAIONS .......... 64 CHAPTER III OUTCOMES OF SOCIAL ASSESSMENT .......................................................... 80 3.1 GENERAL DATA ON HH SURVEY: ............................................................................... 80 3.2 CURRENT STATE OF PROJECT RAIONS ................................................................... 85 3.3 PRODUCTION. INCOME AND EXPENSES .................................................................. 95 3.4 IRRIGATION AND DRAINAGE SYSTEMS OF PROJECT RAIONS ............................. 113 3.1.1 CURRENT STATE OF IRRIGATION AND DRAINAGE SYSTEMS .......................... 113 3.1.2 CHANGES IN OPERATION OF IRRIGATION AND DRAINAGE SYSTEM FOR THE LAST FIVE YEARS ................................................................................................................. 120 3.5 COST AND WAYS OF PAYMENT ............................................................................... 128 3.6 FEEDBACK BETWEEN SUPPLIERS AND USERS ..................................................... 133 CHAPTER IV PROPOSED OPTIONS ON WATER RESOURCES MANAGEMENT IMPROVEMENT IN SOUTH KARAKALPAKSTAN ................................................................. 148 4.1 VARIANTS OF FEASIBILITY STUDY .......................................................................... 148 4.2 PROPOSALS OF PARTICIPANTS OF MEETINGS AND SEMINARS IN PROJECT RAIONS .................................................................................................................................. 152 CHAPTER V CONCLUSIONS, RECOMMENDATIONS AND PROPOSALS OF SOCIAL ASSESSMENT ON PROJECT DESIGN ................................................................................. 158 АНТ/ Ekspert Fikri Page2 of221 5.1 URGENCY AND NEED FOR PROJECT ...................................................................... 158 5.2 INSTITUTIONAL CHANGES AND PROJECT STATUS ............................................... 162 5.3 SUSTAINABILITY AND PROJECT BENEFITS ............................................................ 163 5.4 IMPLEMENTATION OF PROJECT AND ITS COMPONENTS ..................................... 168 5.5 PROPOSALS ON INVOLVEMENT OF THE COMMUNITY IN PROJECT MANAGEMENT ..................................................................................................................................... 177 5.6 GENERAL CONCLUSIONS OF THE PROJECT .......................................................... 178 АНТ/ Ekspert Fikri Page3 of221 LIST OF TABLES Table 1 Data on number of participants of FGD ........................................................................ 39 Table 2 Size of permanent population of project raions for the period 2007-2011 (thousand people) ..................................................................................................................................... 58 Table 3 Population size in project raions by gender for 2011 (thousand people) ....................... 59 Table 4 Size of urban and rural population in project raions by gender for 2011 (thousand people) ..................................................................................................................................... 60 Table 5 Natural movement of the population of Beruni raion fort the period 2006-2010 (people) ................................................................................................................................................. 61 Table 6 Natural movement of the population of Turtkul raion fort the period 2006-2010 (people) ................................................................................................................................................. 61 Table 7 Natural movement of the population of Ellikkala raion fort the period 2006-2010 (people) ................................................................................................................................................. 62 Table 8 Migration of population in project raions fort the period 2010-2011 (people) ................ 63 Table 9 Aggregate macroeconomic indices of the Republic of Karakalpakstan for 2010-2011 .. 64 Table 10 Indices of industry development in project raions for 2010-2011 (million UZS) ........... 65 Table 11 Indices of economic activity and employment in project raions in 2010-2011 (thou.people) ............................................................................................................................ 67 Table 12 Number of medical institutions in project raions in 2008-2011 (units) ......................... 70 Table 13 Number of educational institutions in project raions for 2010-2011 (units) .................. 71 Table 14 Commissioning of houses in project raions for 2010 – January-September 2011 (thou. m2/ million UZS) ........................................................................................................................ 72 Table 15 Indices of municipal infrastructure development in project raions for the period of 2010-2011, % ........................................................................................................................... 73 Table 16 Cultivated area of main crops in project raions fort he period 2006 – nine months of 2011. ........................................................................................................................................ 74 Table 17 Irrigated area of project territory for 2010-2011 .......................................................... 74 Table 18 Indices of total and irrigated area in project raions in 2010-2011 relative to the indices in 2000 ...................................................................................................................................... 75 Table 19 Indices of agriculture of project raions for 2010-2011 ................................................. 77 Table 20 Primary current problems of HH out of infrastructure and environment in project raions ................................................................................................................................................. 87 Table 21 Minor current problems of HH out of infrastructure and environment in project raions 89 Table 22 Current HH problems out of infrastructure and environment in project raions on the third place by importance .......................................................................................................... 90 Table 23 Main problems of production/cultivation of animal produce in project raions............... 91 Table 24 Necessary improvements for efficient work of farms in project raions......................... 91 Table 25 Diseases of adults and children in project raions in 2011 ........................................... 93 Table 26 Diseases of adults and children in interviewed farms of project raions in 2010 ........... 94 Table 27 Reliability of water supply to irrigation canal used for watering, for the period autumn 2010 – autumn 2011 ............................................................................................................... 116 Table 28 Regularity of land plots irrigation in farms of project raions....................................... 119 Table 29 Loss of yields by farms of project raions ................................................................... 120 Table 30 Changes in operation of irrigation and drainage system of project raions for the last five years ................................................................................................................................ 120 Table 31 Changes in operation of drainage system of project raions for the last five years ..... 121 Table 32 Changes in regularity of water supply in irrigation system of project raions for the last five years ................................................................................................................................ 122 Table 33 Changes in volumes of supplied irrigation water in project raions for the last five years ............................................................................................................................................... 123 АНТ/ Ekspert Fikri Page4 of221 Table 34 Changes in quality of supplied irrigation water in project raions for the last five years ............................................................................................................................................... 123 Table 35 Changes in efficiency of cleaning of drainage canals in project raions for the last five years ....................................................................................................................................... 124 Table 36 Calculation of payment of farms for irrigation water supply in project raions ............. 128 Table 37 Calculation of payment of farms for irrigation water supply in project raions ............. 129 Table 38 Activity of WUA in project raions .............................................................................. 134 Table 39 Consulting services of WUA in project raions ........................................................... 135 Table 40 Required consulting services of WUA in project raions ............................................ 136 Table 41 Design flow speed of canals in m3/s: ........................................................................ 151 АНТ/ Ekspert Fikri Page5 of221 LIST OF FIGURES Figure 1 Project territory of SKWRMIP ...................................................................................... 22 Figure 2 Organizational structure of agriculture and water resources department of the Republic of Karakalpakstan ..................................................................................................................... 45 Figure 3 Scheme of irrigation networks management ............................................................. 133 Figure 4 Variant A: Proposed Buston canal ............................................................................ 149 АНТ/ Ekspert Fikri Page6 of221 LIST OF DIAGRAMS Diagram 1 Share of resident population of project raions in the Republic of Karakalpakstan .... 57 Diagram 2 Size of urban and rural population of project raions for the period 2007-2011 (thousand people) ..................................................................................................................... 59 Diagram 3 Ethnic population structure in project raions in 2010-2011 (%) ................................ 63 Diagram 4 Volume of industrial production in project raions and Republic of Karakalpakstan in 2010-2011 (%) .......................................................................................................................... 66 Diagram 5 Indices of number of economically active, employed and unemployed population in project raions in 2010-2011 (thou. people) ................................................................................ 68 Diagram 6 Share of population employed in economy by sectors in project raions in 2010-2011, % .............................................................................................................................................. 69 Diagram 7 Morbidity of population of project raions for 2010-2011 (%) ..................................... 70 Diagram 8 Commissionning of houses in project raions for 9 months of 2011 (%) .................... 72 Diagram 9 Age characteristic of interviewed respondents ......................................................... 80 Diagram 10 Level of education of interviewed respondents ...................................................... 81 Diagram 11 Welfare of respondents by self-estimation ............................................................. 82 Diagram 12 Change of welfare of respondents during the last five years: ................................. 83 Diagram 13 Employment structure of HH member bringing the greatest income ...................... 85 Diagram 14 Share of farms interviewed within the survey located in different parts of irrigation system of project raions .......................................................................................................... 114 Diagram 15 Satisfaction with the source of irrigation water in project raions ........................... 126 Diagram 16 Concern of farms about the situation with irrigation water in project raions .......... 127 Diagram 17 Concern of farms about situation with irrigation water in breakdown by project raions ...................................................................................................................................... 127 Diagram 18 Frequency of payment for supply of irrigation water, operation and maintenance of irrigation canal in project raions .............................................................................................. 129 Diagram 19 Main source of information on agricultural issues in project raions....................... 142 Diagram 20 Main source of information on irrigation water supply and drainage waters in project raions ...................................................................................................................................... 144 Diagram 21 Appeals of farms with applications, claims and requests to eliminate problems in operation of irrigation and drainage systems in project raions ................................................. 145 АНТ/ Ekspert Fikri Page7 of221 LISTOFANNEXES ANNEX A RESPONDENTS PROFILE .................................................................................... 182 ANNEX B QUESTIONNAIRE FOR HHS/FARMS ................................................................... 184 ANNEX C CONTENT-PLAN OF «ROUND TABLE» ............................................................... 203 ANNEX D GUIDELINES FOR MEETINGS AND QUESTIONS ............................................... 208 ANNEX E NUMBER OF PERSONNEL INVOLVED AT PUMP STATIONS – DUSTLIK PS, KILCHINAK PS AND NYMAN-BESHTAM PS ......................................................................... 213 ANNEX F PHOTO OF FGD, PUBLIC MEETINGS - CONSULTATIONS AND WORKSHOPS IN PROJECT AREA .................................................................................................................... 217 АНТ/ Ekspert Fikri Page8 of221 GLOSSARY Viloyat Administrative region (Uzbek form of Russian “oblast”).Uzbekistan is divided into 12 viloyats plus the Republic of Karakalpakstan. Viloyats are subdivided into tumans (raions). The Republic of Karakalpakstan is divided directly into tumans (raions). Dehkan Dehkan farm consists of homestead lands, allotted to heads of families under inheritable life tenure, producing and selling agricultural products on the basis of the labour of family members. Makhalla Territorial community, community of neighbours; In Uzbekistan, this word means an organ of self-governance of citizens. Oblselvodkhoz Regional department of agriculture and water resources Optimization of The process triggered by the Decree “On Optimization of Cropping Areas farms and Increasing of Food Crop Production” and “Instruction On Constitution of a Special Committee (SC) in charge for development of proposals on optimization of farm enterprise plots” issued by the President of the RUz in October 2008. The main idea of the abovementioned decisions is to consolidate a big amount of existing small (less than 10 Ha) leasehold farms into sustainable (around 50 Ha) leasehold farms to raise their marketability and to improve situation with irrigation water supply. Raiselvodkhoz Raion department of agriculture and water resources Rural Assembly A body of local self-governance in rural areas. One RAC consists of either of Citizens one or several Makhallas. (RAC) Project districts Administrative districts of Republic of Karakalpakstan (Beruni, Turtkul and Ellikkala) where the Project Area is located. Project Area Territory of nearly 30,000 hectares covering approximately a half of irrigated land of the Project districts Tamarka Household plot or backyard ofthe dekhkan farmer Tuman Administrative district (Uzbek form of Russian “rayon”) Farmer Leasehold farm producing crops for commercial purposes. This definition excludes dekhkan farms, which within this definition are considered as farms producing crops for household and private consumption. Khokimiyat Local authorities/government (city hall). АНТ/ Ekspert Fikri Page9 of221 ACRONYMS AND ABBREVIATIONS WUA Water Users Association RRA Rural Restructuring Agency WB World Bank inc. including GIS Geoinformation Systems PIU Project Implementation Unit PIU for WI Project Implementation Unit for Water Infrastructure US$ US Dollars HH Household PAP Project Affected Person M&E Monitoring and Evaluation MAWR Ministry of Agriculture and Water Resources IWMI International Water Management Institute NGO Non-Governmental Organization PS Pumping station EIA Environmental Impact Assessment QCBS Quality and Cost Based Selection OP Operational Policy SKRBC South Karakalpakstan Right Bank Canal RBTC Right Bank Tuyamuyun Canal SKRB South Karakalpakstan Right Bank UTC Urban-type community RAP Resettlement Action Plan RRA Rapid Rural Appraisal EMP Environmental Management Plan DIWIP Drainage, Irrigation and Wetlands Improvement Project GoU Government of Uzbekistan SKWRMIP South Karakalpakstan Water Resources Management Improvement Project SA Social Assessment RAC Rural Assembly of Citizens RPF Resettlement Policy Framework ToR Terms of Reference UZS Uzbek Soum PAN-ISA Pakhta Arna Nayman Irrigation Systems Authority FE Farming Enterprise DF Dehkan Farm, or Household (HH) CAR Central-Asian Region O&M Operation and Maintenance EA Environmental Assessment ESA Environmental Social Assessment IS Irrigation system АНТ/ Ekspert Fikri Page10 of221 PROJECT SUMMARY South Karakalpakstan Water Resources Management Improvement Project (SKWMIP) is implemented under the proceeds from a credit/loan obtained by the Government of Uzbekistan (GOU) for Drainage, Irrigation and Wetland Improvement Phase-I Project (DIWIP). SKWRMIP covers the territory of three southern regions of the autonomous Republic Karakalpakstan, namely Beruni, Ellikkala and Turtkul, the tail end of the right bank of Amudarya River. The area of SKWRMIP is located less than 100 km from the city of Nukus in the North, the capital of Karakalpakstan, and about 20 km from the city of Urgench in the West, the capital of Khorezm region. Thegivenreportisprepared in order to conduct the social assessment of project impact on project area.The content of the given report refers directly or indirectly to the project objectives as well as Terms of Reference. According to the proposed Terms of Reference for Consultant social assessment is aimed at: (i) Identification of key social problems and potential risks related to the Project; (ii) analysis of beneficiaries and stakeholders and institutions and their possible impact on project implementation; (iii) assessment of potential social impact of the project on social groups of population of project territory; and (iv)ensuring of attainment of social development outcomes. The final report on Social assessment represents basic data obtained through the analysis of available documents and statistical data, focus group discussions, in-depth interviews, consultations and seminars with experts and the population, as well as interviews with HH. The structure of the report includes the following:  Executive summary  Introduction and Chapter on SA objectives and methodology, including methodology of sampling survey;  Discussion on the issues of social development;  Identification of key interested persons with the analysis of their abilities, interests, conflicts and potential roles in implementation of the project;  The key obtained data on SA activity, focused on important social aspects which should be addressed and their relation to the project objectives and their conclusions for design and implementation of the project;  Recommendations on strategies for strengthening of organizational construction on water resources management, including any updates to existing actions which can influence behavior of certain social groups during implementation of the project;  Recommended mitigation measures for any adverse impact on certain groups;  Assessment of needs in training for local groups of the communities/organizations, local NGO and other groups for comprehensive participation in the project; АНТ/ Ekspert Fikri Page11 of221  Plan of public participation;  Proposed indicators of social monitoring and assessment. Demographic, socialandeconomicindicators Theassessmentofdemographic, social and economic indicators of the project area was conducted upon the Project. The prevailing share of the population in project raions is ruralwith agrarian economy.The raions of the project areaare characterized by relatively high rate of population growth in comparison with average value of natural growth in the Republic of Karakalpakstan. Thegreatestrateofpopulation growth falls on Turtkul raion. Project raions have quite low rates of migratory outflow of the population relative to indices for the Republic of Karakalpakstan. Howevermigratory growth of population in project raions has negative character. It is caused by prevailing number of leaving over the number of arriving population. Upon social and economic development of project areas about 30 % of economically active employed in economy population of the Republic of Karakalpakstan are employed population of project raions. The gratest share of economically active and employed population is the share of Turtkul raion. Howevera quarter of officially registered unemployed population is the share of project raions. In the structure of employed population in project raions agricultural employees (30 %) and employees of education and culture sector (17 %) prevail. the main diseases of project raions are diseases of blood, hemopoietic organs and separate abnormalities involving the immune mechanism % and diseases of respiratory organs Agricultural indicators According to the data of State committee of statsticsthe total area of land resources of South Karakalpakstan makes 1 682 411 ha. About 250 650 ha (about 15 %) are considered suitable for irrigation, from them 97,917 ha (about 40 % of 250 650 ha) MAWR refers now to irrigated lands. Cotton remains the main crop of Karakalpakstan, including project raions. Cultivated area of cotton which in previous years was decreased as a whole, for last five years became rather steady concerning the total area under crops. Main sectors of agriculture of the Republic of Karakalpakstan are grain production (production of wheat and raw rice), cotton production, animal husbandry and silkworm breeding. Among project raions the biggest share of volume of gross production of agriculture of RK is the share of Beruni raion. In spite of the fact that about 98 % of agricultural production is the share of non-state sector, productivity of irrigated lands remains at the lowest level. Thus efficiency of agriculture (potatoes, vegetables and other crops) in private and dekhkan farms is much higher, than in official commodity farms, and the share of the crops first in such production is very high. Private and dekhkan farms dominate in production of potatoes, vegetables, milk, meat and other agricultural goods АНТ/ Ekspert Fikri Page12 of221 Animalhusbandryproductioninprojectareaisabout 47% production of animal husbandry in RK. the prevailing share of production is the share of dairy production, in particular milk; and the biggest share of crops production is the share of grain (after cotton which is the main crop of raions). The main problem of agriculture is poor quality of soils in project raions.Salinity of soils reduces productivity of cotton by 50 %; productivity of wheat - by 15-70 % over the whole range of salinization. Outcomes of social assessment While implementation of tasks assigned by the Terms of Reference for Consultant for social assessment, the following stages of the survey were carried out:  Focus-group discussions – 12 groups;  HH survey – interviewing of 950 HH;  In-depth semi-structured interviews – 70 experts and interested persons;  Public meetings/ consultations and seminars. Survey was implemented in three project raions – Beruni, Turtkul and Ellikkala Current state of project raions Population of project raions faces serious demographic changes which are characterized by the actual reduction of population in raions. In spite of the fact that official data of statistics reflect dynamics of positive natality under the condition of negative balance of population migration, according to participants of social survey, number of children and birth rate in raions decreases Project raions are characterized by high migration of population outside the country, especially young men (aged 16-45) and some of the women in search of employment. The main consequence of such high migration is gradual increase of the share of women, children and elderly people in the structure of the population and decrease of the share of men in labor market, especially decrease of qualified workers, machine operators and technicians. The most important current problems of infrastructure and environment of the project areas the following: i. Poor quality of lands (soils salinization); ii. Lack of water for irrigation; iii. Bad supply of electricity; iv. High level of ground waters. In production and cultivation of animal produce in project raions farms also face problems of poor quality of lands – soils salinity which has negative impact on lands for pasture of cattle. At the same time socialoutcomesstates that the following improvements are necessary for more effective work of their farms: АНТ/ Ekspert Fikri Page13 of221 i. Improvement of lands quality; ii. Improvement of operation of irrigation network; iii. Improvement of access to water resources. Production and incomes  Crop farming All land plots in all types of farms have official contracts of lands tenure/lease concluded by farm enterprise with khokimiyats and HH - with RAC. Sizes of lands, on the average, in the cities and at HH are about 0.06 ha, in rural HH – 0.12-0.20 ha and at farm enterprise – about 50 ha. In spite of the policy of optimization and support of diversification, productivity of farm enterprise per area of lands has reduced as compared to 2005 by, approximately, 30% due to the shortage of water or its delayed supplies. The volumes of production of raw produce from land size by farm enterprises in the raions have been increasing in the last five years as well. Farm enterprises are producing 100% of cotton and 50% of wheat for the government and as per the set quotas, as well as some other crops as per agreements with government institutions. Cotton is being grown on, approximately, half of the farmers’ lands; however, profits from cotton either have not been increasing in the last 5 years or have even been dropping because of the ‘price scissors’1, decreasing income and loss of farmers’ interest both in increasing the yields and in production of cotton.Only those farm enterprises that are located close to canals and cleaned drainages report increased production of cotton and yields per ha.In farm enterprises located far from irrigation systems, yields have dropped and risks have increased because of unstable and unreliable water supplies. Farm enterprises are to sell 50% of the target yield of wheat to the government, however, some farm enterprises mentioned that in reality they had to sell more than 50% of their yield at government prices, because their yields were usually less than the planned ones. The volumes of production of other crops, – apart from rice, – have been growing, as well as the quality of this production as a result of keen competition for consumers. Farm enterprises regard rice as the most profitable traditional crop that allows them not only to get profit but to increase yields of other crops due to proper rotation. However, since 2010, yields and volumes of rice production have been dropping because of the risks related to water supplies and its shortage. Production of vegetables, tomatoes, fruits and grapes has been growing in the raions because the number of vegetable-growing and gardening farm enterprises has been increasing. Production of vegetables and tomatoes has been growing. Many of the HHs are building greenhouses (low power and simple technology), where they are producing seedlings and then 1 The quotation from statements of representatives of state institution speaks of this obstacle. “If prices for farm produce are increasing by 20% within three years, prices for F&L, fertilizers and the rest are increasing each year by 30%.” АНТ/ Ekspert Fikri Page14 of221 selling their produce in the markets of their own and neighboring oblasts.Watering of seedlings and plants is usually being done with ground water from a HH plot. The increase in the production of fruits and vegetables is being accompanied with growing risks of water supplies and, accordingly, the risks of over- or underproduction.People are traditionally growing cucurbits in the raions (melons, water melons, pumpkins) for the same reason (they do not require a lot of water). That is why the volumes of production of cucurbits have been growing, also because the areas under cucurbits have expanded on the lands where they stopped growing rice.  Stock-breeding produce Farm enterprises and HHs keep animals, – mainly as cash liquidity (‘walking dollar’) that could be sold if cash is needed for production purposes; or is being used as collateral and/or as a source of paying off a loan; or for HH consumption. The reduction in the number of cattle in farm enterpriseswas partially compensated with the increase in the number of cattle in HHs; that is why the volumes of meat production have remained approximately at the same level in the last five years. The indication of the growing demand for meat and the low increase of its production is the fact that prices for meat have been growing, among the reason being the restrictions to the access to fodder, increasing prices and deteriorating quality of fodder, the lack of possibility to purchase imported fodder due to the restrictions for conversion and the ban on barter deals. Prices for meat have increased in the past 5 years almost twice from 6 000 Soums up to 15 000 Soums. As a result of this increase, and to protect vulnerable groups of population, the authorities persuade stock-breeders to sell meat at fixed prices, are setting the volumes of these sales, supplying them fodder at a discount instead as an incentive; however, farm enterprises regard this incentive as a very weak incentive. The situation with production of milk products is similar to that meat products Production of fish has been developing in the raions, and production volumes have been growing after local reservoirs had been handed over to farm enterprises and conditions created for development of fish-farming enterprises which breed young fishes and grow fish in reservoirs. Nevertheless, fish-farming is not stable yet because of the risks of lack of water. Bee-farming is developing in the raions, and volumes of honey production have been increasing. Production of silkworm cocoons is restoring and has been growing in the last 5 years. However, it is limited by the lack of power for heating of premises and the lack of mulberry trees, plantations of which though have been expanding and will help further development of production. Farm enterprises and HHs are widely using selection methods in stock-breeding, fish-farming and bee-farming, as well as veterinary services and artificial insemination performed by specialized veterinary stations. However, selection methods are being used sometimes sporadically, – people are simply exchanging experience betweeneach other rather than АНТ/ Ekspert Fikri Page15 of221 seeking consultation and services in selection from some permanently operating specialized or cooperative organizations Due to the social assessment survey there are some obstacles to development of produce processing, including the following:  Difficulties with loan raising and purchasing equipment;  Low quality of gas, electricity supplies and poor quality of piped water;  Low demand and surplus of raw produce, or lack of this raw produce;  Low quality of produce grown with too much fertilizers and chemicals;  Risks of fluctuation of prices for raw and processed produce in the domestic market and difficulties with promotion onto the foreign market. Current state of irrigation and drainage systems Absolute majority of farms use water from irrigation canal as a water source for irrigation of the plot. In project raions after farm enterprise intervention in irrigation system designed for state farms and drainage system there are cases of unduly close or bound arrangement of irrigation and drainage system which result in loss of their efficiency. Farms assume that they use irrigation canal as a source of water, but actually water in this irrigation canal is not only irrigational, but from drainage system. As a result quality of irrigational water considerably decreases that leads to deterioration of lands (threatens with a secondary salinizatione of lands of farms) and decrease in volumes of yields of farms. DrainagewaterforirrigationoflandsisnotusedbyHHsin project area.The efficiency of operation of drainage systems is estimated as satisfactory by themainshareofHHs.  Reliability of water supply in irrigation canal The main share of farms notes periodic delays in water supply in irrigation system.Priority in supplies of water is for those who grow crops for the government. Reliability of water supply to irrigation canal in project raions also varies depending on season.  Regularity of land plots irrigation in farms ThemainshareofHHsinprojectarea irrigate their land plots HHsonce a week or once every two weeks. Regularity of watering of land plots by farms in most cases has direct dependence on type of cultivated crops on land plots of farms.  Loss of yields АНТ/ Ekspert Fikri Page16 of221 Changes in frequency of water supply, lack of water for irrigation, shallow and droughty periods, climatic features of the region cause loss of yields by farms.The majority of interviewed respondents note loss of from 50 % to 80 % of yield in case of shortcoming or lack of water for irrigation of farm lands.  Changes in operation of irrigation and drainage system for the last five years Situation improvement with irrigation system is noted by a thirdof respondents, in particular considerable improvement is noted only by 7.37 % Almost a half of all interviewed farms of project raions note improvements in operation of drainage system from which 12.63 % note considerable improvements.  Changes in reliability of irrigation water supply Due to the social outcomes the following changes occurred in operation of irrigation and drainage systems for the last five years:  water for irrigation is being supplied less often – 44.63 % of HHs;  the volume of supplied irrigation water decreased – 45.16 %;  no changes in quality of irrigation water – 69.05 %;  timely cleaning of drainage canals – 42.63 %.  Changes in volumes of supplied irrigation water Almost a half of all participants of social assessment of project raions noted that for the last five years the volume of supplied water decreased. No changes are noted by almost a half of all participants of social assessment of project raions as well.  Changes in quality of irrigation water Themostofparticipants of social assessment of project raions note no changes in quality of supplied irrigational water. Improvements in quality of supplied water in irrigation systemare noted by eachseventh ofparticipants of social assessment.  Changes in efficiency of drainage system operation improvements in quality of supplied water in irrigation systemnoted improvements in timeliness of cleaning of drainage canals. Athirdofthemmention no changes in carrying out cleaning of drainage canals. Obvious and dramatic improvement of condition of main irrigation system and especially, drainage system are observed in project raions, but not inter-farm is noted. The condition of irrigation systems needs urgent updating as farm enterprise most sharply face problems with water supply which is reflected in intention of part of farm enterprise to hand over the land if water supply will not improve. АНТ/ Ekspert Fikri Page17 of221 By the results of conducted survey general situation with satisfaction of farms with irrigation water is as follows: the greatest share of respondents shows dissatisfaction with their source of irrigation water. The main reasons for dissatisfaction with source of irrigation water are the following:  irregularity and instability of water supply for irrigation;  low volume of supplied irrigation water;  poor quality of irrigation water. In view of high indicators of dissatisfaction of farms with irrigation water which they use for watering of their land plots, quality and irregularity of its supplies which have direct influence on the amount of losses of farms yields, most of respondents of project raions are concerned about current situation with irrigation water. Current situation with irrigation water concerns all farms noting the dissatisfaction with irrigation water in project raions. Feedback between suppliers and users Absolute majority of farms of project raions are members of WUA.I&D systems are maintained by Hydro-melioration Facilities Department and Hydro-Melioration Expeditions. The latter controls the groundwater level, and the first performs works at IFDS. The same organizations are providing services to WUAs and farm enterprises. WUA activity in project raions is generally aimed at management of irrigation systems and water distribution between its members. WUA also carry out activities on management, maintenance, rehabilitation, repair and improvement of irrigation systems in project raions The participants of social assessment reflect the following difficulties WUA face in their activity:  Amount of contributions of farm enterprise is not enough for WUA to purchase transport and machinery for operational management of water, IFIS and IFDS;  Low level of income of farm enterprise does not allow to increase WUA potential;  The existing legislation is developed inadequately to the level and requirements of development of WUA. The status of Non-governmental Non-profit organization contradicts requirements of WUA and farmers for development of commercial relations between them. Because of uncertainty and institutional weakness some farm enterprises think WUA should become commercial organizations, and another part – state ones;  Farm enterprises state that WUA legislation should be amended and reviewed and «Law on WUA» should be adopted. However lawyers state that Laws allow WUA to operate freely, but this freedom is interfered by instructions of other organizations, with which WUA cooperate;  WUA are created and managed not by farmers themselves, but experts of RMAWR and khokimiyats. Therefore a part of farmers think that WUA are not necessary in the existing form and they substitute RMAWR functions. АНТ/ Ekspert Fikri Page18 of221 Theparticipantsofsocialassessmentnotedthe following reasons and consequences weaknesses of WUA institutesand environment for its activity:  Shortcoming and instability of water supplies for farm enterprise and DF which are located at the end of irrigation system or on elevations;  Absence or lack of limits of water (norms of supplies) for repeated crops;  Depreciation and destruction of suspended flumes in irrigation system, sedimentation, sloping of canals laid in soil and fall of a part of concreted canals;  Water losses, raise of level of ground waters and drainage system overflow by the above mentioned reasons;  Lack of machinery for cleaning of inter-farm irrigation anddrainage system, and labor force - for cleaning of irrigation and drainage system inside farm enterprise and DF;  Need in use of pumps and payment for electric power for lifting or delivery of water and lack of possibility to compensate these expenses at the expense of the prices for production, which is bought from these farms at the same prices, as in farms with gravity irrigation;  Mistakes of designers or insufficient participation of farm enterprise in design and execution of works on irrigation and drainage system;  Insufficient authority of WUA and, consequently, absence of system of encouragement for water saving and penalties for surpluses in water consumption.. Sources of information The main source of information on agricultural issues in project raions is WUA. The second source of information on agricultural issues in project raions is khokimiyats. Conclusions and recommendations The main conclusion of social assessment is need of project area in activity to improve the situation of irrigation and drainage system. Social assessment showed the inability of agricultural producers to carry out construction and rehabilitation of canal at the expense of only own funds.Under current conditions farms accumulating already most part of irrigated lands, grow up production for state needs under the conditions defined from the top, and on the lands which have fallen into decay owing to insufficient financing and irrational use water and land resources, including inadequate conditions of irrigation and drainage system. Important issue from Project sustainability point of view is mass involvement of households /dekhkan farms in management, maintenance and co-financing of irrigation and drainage systems. Construction of the canal and the Project, in general, will allow to cut farm enterprises’ and HHs’ expenses for agricultural production and increase profits, thus improving living standards of the population. Better supply of water to the raions will allow improving the environment and the health state of the population who is now suffering from shortage and poor quality of water as well. Capacity of canal is high and will allow not only supplying water to the poorly irrigated lands but developing not cultivated lands as well. АНТ/ Ekspert Fikri Page19 of221 Improvement of quality and timeliness of water supply to producers of agricultural production will allow them reduce their expenses on irrigation and growing their products as well as reduce the self-cost of their products consumed by project residents. Consequentlytheefficientprojectimplementationwillincrease the quality and level of living standards of the residents. Projectrisks The main project risk is risks of withdrawal of lands and structures for canal construction. Nevertheless, expected benefits of the project are more attractive to part of farmers and population, than benefits from keeping of land plots, but without implementation of the project. It is caused by that they expect worse lands will be provided to them, than they had, since good lands are occupied long ago, and the lands remote from settlements are inconvenient from the point of view of access to transport or its absence. The information in details about withdrawn land, the order of appraisal of damage and compensation is described in following reports upon this Project: Resettlement policy framework and Resettlement action plan. For the results of social impact assessment in details see this report. АНТ/ Ekspert Fikri Page20 of221 INTRODUCTION General information about Project territory South Karakalpakstan Water Resources Management Improvement Project (SKWRMIP) covers the territory of three southern regions of the autonomous Republic Karakalpakstan, namely Beruni, Ellikkala and Turtkul, the tail end of the right bank of Amudarya River. The area of SKWRMIP is located less than 100 km from the city of Nukus in the North, the capital of Karakalpakstan, and about 20 km from the city of Urgench in the West, the capital of Khorezm region. Population of the project area is over 400,000 people or 26 % of the republic. About 80 % of the population is involved in agriculture, and their income makes below 2 US$ per capita a day. Project area has distinct arid continental climate with dry hot summer with the maximum temperature above +28°C in July and the cold dry winter with the minimum temperature below - 40°C in January. Frost-free period, on the average, makes about 195 days a year. The average annual precipitation makes about 100 mm, generally in winter and spring, while evaporation is about 1,300 mm. Such climatic peculiarities of the region cause need in irrigation for all crops. The main crop of the project territory is irrigated cotton. Wheat (grain), forage crops, vegetables and fruits are also grown up in the project territory. The main obstacle of optimum agricultural production is unreliable irrigation supply at farms level. The main reasons are small level of ground waters, soil salinity, dysfunctional infrastructure, bad operation and maintenance of the system, and general bad water resources management. АНТ/ Ekspert Fikri Page21 of221 Figure 1Project territory of SKWRMIP АНТ/ Ekspert Fikri Page22 of221 Source: Working group of the Project АНТ/ Ekspert Fikri Page23 of221 Irrigation and drainage system of South Karakalpakstan Almost the entire drainage system of the South Karakalpakstan Right Bank (SKRB) system has been successfully rehabilitated under the on-going DIWIP using the World Bank’s funding of about US$ 60 million (equivalent).2 In addition to success of DIWIP, SKWRMIP is aimed at improvement of water resources management of the combined system of irrigation and drainage, in general, and irrigational aspects of the system, in particular. The total irrigated area of the project zone of about 100,000 ha3 is fed by the system of canals which take water from Amudarya, either by gravity through the South Karakalpakstan Right Bank Canal (SKRBC) taking water from the Tuyamuyun Reservoir, or by pumping from the river to the north from reservoir. Being the arid region, irrigation is used here since the ancient times. Irrigation in the basin of Amu Darya is dated the third century B.C. In the recent past intensive development of irrigation system began in early 1920s of the Soviet Union time in the Khorezm oasis which includes a part of the region of Karakalpakstan. The first irrigation system in South Karakalpakstan area was established by direct water drainage from Amu Darya through the system of Pakhta Arna canal. Pakhta Arna is the direct water drain canal which lies along the bottom level of the right bank of a flood plain of Amu Darya and is fed by gravity to several irrigation areas in Turtkul and Ellikkala raions through the main Pakhta Arna and its distributive systems of canals. Pakhta Arna canal has 4 main secondary canals, namely: - Kelteminar (13,811 ha), - Amirabad (8,669 ha), - Bagyap (29,995 ha) and - Rashidov Arna (235 ha) About 35,000 ha in Beruni raion and another 5,000 ha in Turtkul and Ellikkala receive irrigation by pumping from three main pump stations on Amu Darya, namely: - Bozyap (Kilchinak PS), - Otiodiashiy (Naiman Beshtam PS) and - Dustlik PS Some other small PS also service certain irrigated areas, and there are many secondary PS directly from the subsequent system of canals. Since independence of Uzbekistan expenses for pumping increased which led to considerable reduction in pumping. 2 The main focus of on-going DIWIP is improvement of drainage system which hard depended on the machine pumping and problems of defects before reconstruction. Newly constructed main collector and reconstructed on-farm and inter-farm drainage system under DIWIP is being improved and flow by gravity. 3 Beruniarea–33,397ha;Ellikkala– 34,392ha;and Turtkul–32,222ha, respectively АНТ/ Ekspert Fikri Page24 of221 At the end of 1980s, Tuyamuyun Reservoir was constructed on the Amu Darya primarily for irrigation of cotton and secondarily for generation of incidental hydropower. From the dam, the Right Bank Tuyamuyun Canal (RBTC) with a design discharge of 200 m3/s and a length of about 31 km was constructed to a main control and distribution structure to feed the SKRB system. From this new main control and distribution structure, two new canals serving Turtkul district was added to complement the original Pakhta Arna canal commanding 52 700 ha:  Yanbash lined canal for irrigation of 12,566 ha and  Boshyap-Akbashli canal for irrigation of 1338 ha Thus, about 66,700 ha are irrigated from the Right Bank Tuyamuyun canal by gravity. The remained 35,000 ha are irrigated with water pumped from Amu Darya. Today the potential irrigation area of more than 100,000 ha can receive irrigation in three raions. However the irrigated area of SK Right Bank system makes today only about 65,000 ha, generally as a result of inadequate operation, the contents and system shortcomings. General pump discharge for irrigation of the right bank from Amu Darya makes 103 m 3/s. However, along with continuous dredging at water intakes of pump stations this option becomes expensive for irrigation. Moreover water level in Amu Darya for pumping cannot be realized while discharge from Tuyamuyun will not reach 650 m3/s in the downstream because of the wide meandering of the river at this extent. Floating pump stations are not so dependent on water level in the river. Present pump operation from Amu Darya consists of 3 main and 21 secondary PS costing annually 1,320.39 million Uzbek sums (about 1.0 million US dollars). Besides, there are about 630 small pumps maintained by farmers on the area of the third level which costs another 2,574 million sums (about 2.0 million US dollars) annually. In this regard the technical and economic analysis of the project on construction of the new lined Buston canal with a design discharge of 105 m 3/s and length of 71 km to pump station Naiman-Beshtam was executed from head construction of the Right Bank Tuyamuyun Canal. The purpose of the project is gravity irrigation of 80,000 ha of lands, thereby eliminating all existing pump stations on Amu Darya. However, owing to lack of financing the decision to cut down canal construction to the extent of 35 km to the canal Bogyab in the earth bed with the decreased discharge of 55 m 3/s at the first stage of construction was made. For the present construction of the first section of the canal is complete 4. It is reported that all complete canals, including the Right Bank Tuyamuyun Canal cannot discharge as per the initial design, partially because of strong sedimentation at its headrace, partially because they were not constructed in full design sizes and partially because of operation shortcomings since input. 4 Within proposed versions of project feasibility study the issues of the increased dischargeat the constructed section of the canal and continuation of construction of the canal from Bogyab canal to pump station Naiman- Beshtam are considered as well. АНТ/ Ekspert Fikri Page25 of221 Present Right Bank Tuyamuyun Canal is strongly silted in its main upstream of 31 km which reduces its capacity to half (about 90 m3/s) while all the three main offtaking canals are therefore running with discharges much lower than their designed discharges. This is evident by comparing the current and design discharges in the following:  Yanbash lined canal is 18 m3/s against its designed discharge of 52 m3/s  Boz-yab Akbashly it is 1 m3/s against 3 m3/s designed  Pakhta Arna canal is 60 m3/s against 87.5 m3/s designed. The canal operation is also difficult for rotational supply in case of lower discharges due to insufficient cross regulators in branch, secondary and tertiary systems. The total length of main and inter-farm canals under Pakhta Arna – Nayman are about 973 km, of which only 81 km are lined. The canals in many reaches pass through the light sandy soils resulting in heavy losses through deep percolation and seepage. These in turn result in rising groundwater and salinity in the irrigated areas. This condition is exacerbated by siltation in head reaches and lack and poor conditions of regulation structures. It is reported that the main and branch canal often times run with discharges as low as 20% of the designed discharges. Frequent fluctuations of the canal water levels without control also induce banks sloughing and erosion in many reaches. Currently the inter-farm canals operate with an uninterrupted supply mode on their turns. As a result, considerable water volume is lost during refilling the supply level after each stoppage of supply until it is brought back to a level during next rotation to command the land. Secondly, during the short period of supply, all farmers may want water for irrigation resulting in simultaneous competing demands. The total water delivery outlets (at tertiary canal and water courses) in the project area are about 792 units of which 633 units are supplied by pumping and 159 units by gravity. There is almost no water measuring devices. Commanded area served by each outlet varies. In the Beruni district it ranges from 3 ha to 296 ha, with an average of 91 ha; in Turtkul district it is from 4 ha to 257 ha, an average of 156 ha; and in Ellikkala district from 30 ha to 260 ha, an average of 160 ha. The system which lacks proper regulation with non uniform command areas under each outlet creates difficulty for systematic rotation resulting in many unaccounted water losses in the supply system. Pumped water supply at current high energy prices also leads to high cost for the agricultural productions. Under these circumstances, growing of state order crops becomes non-profitable for farmers since prices are regulated and same for all over the country. Construction of cross regulators on main and inter-farm canals could provide gravity supply to many of these delivery outlets. There have been concerns regarding flood management in the lower Amu Darya. Following construction of Tuyamuyun reservoir peak flows have generally diminished, whilst the total volume passed downstream of Tuyamuyun has reduced. Consequences have been two-fold:  Extended out of bank flooding is reduced and this may have led to encroachment along the banks of crop land and shelters or houses АНТ/ Ekspert Fikri Page26 of221  Changes in the sediment deposition regime. Nowadays there has to be a managed increase in discharges into the lower Amu Darya at Tuyamuyun to allow the bed to erode as discharge rises. This is to prevent occurrence of short-term out of bank flooding; the prevailing management regime takes account of the settlement that has occurred. METHODOLOGY OF SOCIAL ASSESSMENT Objective of social assessment The main objective of this report is Social Assessment of potential impact of Project implementation. According to the proposed Terms of Reference for Consultant social assessment is aimed at: (v) Identification of key social problems and potential risks related to the Project; (vi) analysis of beneficiaries and stakeholders and institutions and their possible impact on project implementation; (vii)assessment of potential social impact of the project on social groups of population of project territory; and (viii) ensuring of attainment of social development outcomes. The SA is carried out to ensure that: (a) the proposed project as a whole has positive social benefits, and if there are any adverse social impacts, they do not fall disproportionately on the poor or vulnerable groups; (b) where there are potential adverse social impacts, the project will include measures to avoid, minimize, or mitigate them to the extent feasible; (c) the project is tailored to user needs as well as the social and institutional context; (d) project preparation involves important actors who are responsible for implementing project activities aimed at achieving identified social outcomes, and have the willingness, capacity, and incentives to do so; or alternatively, includes measures and resources to build ownership and capacity. The specific SA objectives are to: (a) Identify social groups and stakeholders that would potentially benefit or are likely to be affected by the project as well as clarify the roles and interests of each group and any conflicts among them. Of particular importance is the identification of the most vulnerable/excluded groups (for example, pensioners, children, youth, women, peasant farmers, downstream farmers). (b) Establish baseline socioeconomic and farms conditions, including main sources of income (if possible, quantify income levels by type of activity), consumption levels (as a proxy for income), household size and structure, area of cultivable land, decision-making at the household and farm levels, land ownership, level of АНТ/ Ekspert Fikri Page27 of221 agricultural production, use of water, and payments in cash and in-kind for water and O&M for irrigation and drainage systems. (c) Characterize farmers’ views on what they perceive as the main impediments to improving production and productivity. For example, do the farmers view the shortage of water as the principal constraint, or are they more concerned about inadequate drainage; lack of fertilizer, equipment, and finance; continued state control; or other factors such as indirect price regulation by the state, their inability to sell output because of poor marketing and distribution systems? What type of training do the farmers think they need to improve production or income? (d) Characterize farmers’ views on existing institutions involved in the management of the water delivery system and O&M of irrigation and drainage systems. Do farmers trust these institutions? What types of communication/interactions are there between the farmers and the water management institutions? Do farmers support the idea of private entities providing irrigation maintenance services? (e) Characterize water users’ views relating to the possibility of transferring responsibilities for water management and O&M of the newly emerging farm entities by creating Water User Associations (WUAs) that would be responsible for managing irrigation and drainage covering a larger area. (f) Determine farmers’ and other water users’ willingness to contribute in cash or in - kind to cover the costs of water, O&M, and other costs needed to improve all aspects of on-farm and off-farm irrigation and drainage in the project areas. (g) Understand the relationship between land tenure and the optimal institutional framework for irrigation and drainage management. (h) Determine how water users’ view their existing water delivery and drainage systems and identify their preferences for improving these systems through alternative institutional and technical arrangements. (i) Establish an appropriate framework for the participation of various categories of farmers, the poor, and other key stakeholders in assessing the feasibility of establishing effective water users’ associations and in other aspects of project design and implementation. (j) If there are existing WUAs in the area, describe their organizational mechanism and identify ways that those can be improved or enhanced. If WUAs do not exist, identify appropriate mechanisms for organizing water users into Water User Associations (WUAs), enhancing the role of WUAs in the management of the irrigation and drainage systems in the project area, and ensuring that the appropriate arrangements are made for informed participation in establishing and managing financially viable WUAs. (k) Inform officials, local communities, and NGOs about the project and its objectives and impacts as well as arrange stakeholder consultations for reaching consensus on management and technical approaches. (l) Identify cultural or other social factors that should be taken into account in project design and implementation. For example, are there conflicts over water or other resources, and what is the nature of any conflict, if relevant. АНТ/ Ekspert Fikri Page28 of221 (m) Establish a framework and identify mechanisms for continuous participation of all important stakeholders (for example, farmers, local communities, and NGOs) in the next phase of project preparation and subsequent implementation. (n) Identify stakeholder needs for training and environmental awareness-raising aimed at water conservation and surface and ground-water protection. (o) Provide input to the institutional development consultant on mechanisms and ways which would enhance the implementation and acceptance of irrigation management changes and the management of the irrigation and drainage systems in the project area. (p) Identify appropriate social development indicators for project monitoring and mechanisms for monitoring and evaluation throughout project implementation. (q) In addition, identify public health and damage to property and other welfare issues, as the waterlogging is a major problem in the project areas. Social Assessment tasks Social assessment tasks are prepared in accordance with the proposed Terms of Reference for Consultant. Task 1: Background Socioeconomic Study - Identification of Important Social Development and Participation Issues The Consultant will conduct a review of available sources of information and data to identify the social development and participation issues relating to this project. The review includes both qualitative descriptions and analyses, and quantitative indicators of change (positive and negative) such as: population, economic activity, standard of living, physical infrastructure, investments, land ownership, and farm conditions. The purpose of this task is to: (a) articulate the historical context for the current project, focusing on physical, demographic, and social changes; (b) identify groups and agencies that are most directly affected by the proposed investment, the various roles played by different stakeholders over time, and any conflicts among stakeholder groups that may undermine the implementation of the proposed investment; and (c) determine the important social development issues that pertain to the project, and how specific stakeholders groups may facilitate or impede the participation of the poor and other vulnerable groups, how these groups may be affected, and how the participation of the poor and vulnerable groups may affect project ownership and sustainability. The background study also addressed more general social development issues such as social cohesion, equity, social capital, conflict, youth/gender, social diversity, and social organization. This task involves the following sub-tasks:  Subtask 1: Identify Broad Social Development Issues АНТ/ Ekspert Fikri Page29 of221 The Consultant will carry out a preliminary identification of important social development issues based on available secondary information including: (a) available social development literature/studies; (b) social impact monitoring studies for similar projects in the same country; (c) existing social development profiles or other background information; (d) country social science studies and area studies; (e) demographic data; (f) previous SA reports; (g) relevant social, political, and institutional information; (h) and consultations with knowledgeable local and international experts. The types of information include population and other relevant socio-economic statistics for the project area (for example, population trends over the past five years, demographic structure, average income, unemployment, urban growth and migration rates, the economic base, number and types of economic enterprises, numbers and types of social services, patterns of settlement as a function of migration from other cities, and the effects of migration patterns on the water supply and demand situation), and information on water supply conditions and institutions responsible for water resources management and maintenance of irrigation networks.  Subtask 2: Identify and Analyze Main Stakeholder Groups. The Consultant will carry out a comprehensive stakeholder analysis to identify the most important actors to involve in preparing and implementing each component of the project. For example, these actors will include: (a) local communities, collective farms if they exist still, private farms, (b) government officials and staff (at all appropriate levels); (c) non-governmental advocacy; and (d) other interest groups, civil society organizations, informal leadership structures (for example, mahallas), and international and bilateral organizations. The analysis of each stakeholder will cover the following basic questions. (a) Who are the stakeholders and what are their stakes? Each significant actor should be described in terms of such factors as size (number of units, size of unit), level of resources (financial, land, property, etc.), location, and role in the sector. The stakeholder groups may be of different types, each of which may have a number of discrete units. At least five categories of stakeholders (which can be subdivided) are likely to be affected by or have an interest in the project, not all of which will be equally significant:  Water Users. These include: (i) existing Shirkats if any; (ii) family farms, private farms, and peasant or dekhkan farms; and (iii) domestic, municipal, and industrial water users. АНТ/ Ekspert Fikri Page30 of221 The farms also can be categorized on the basis of their size and location (upstream vs. downstream); and ownership.  Government Institutions. These include: (i) organizations responsible for the management and operation and maintenance (O&M) of the irrigation and drainage systems; (ii) organizations in charge of the management and O&M of inter-farm canals; (iii) organizations responsible for on-farm water management as well as care for the on-farm drainage and collector system; (iv) and organizations responsible for the management and O&M of the collector drainage system. Other actors include the Oblast Committee for Nature Protection and institutions dealing with land use and allocation of land at oblast and raion level, and local institutions.  Non-governmental organizations and others.These include NGOs; community groups, mahalla, shirkats, NGOs that work with the poor or women, and international and bilateral organizations.  Vulnerable groups. These include poor farmers, various ethnic groups, women, poor women, children, and the elderly. (b) What interest does each stakeholder have in irrigation? Are the interests of each stakeholder economic, political, environmental, social, or other? If a stakeholder has a specific interest but is unable to act in terms of the interests, what prevents them from doing so? What are the sources of conflict, if any, between stakeholders? (c) What is the relationship between different stakeholders? Which stakeholders are dominant, which are subordinate? Which are powerful economically, politically, and socially, and which are weak? Which stakeholders are engaged in alliances, either because they are part of the same structure (administration), or because they have a common understanding or economic ties which cause them to work together? Which stakeholders are in conflict with each other due to the existing arrangements for irrigation and drainage? How are these conflicts managed; how do alliances emerge? Which stakeholders constrain or promote others? Are the alliances and conflicts formal or informal? Is there a difference between the official position of a stakeholder and its actual behavior? What are current incentive structures that account for these differences? (d) What are the consequences of the interests of different stakeholders and the alliances or conflicts between on irrigation and drainage systems as well as broader water resources management? What are the current and long-term consequences of the roles and relationships of particular stakeholders? (e) What should be changed to get stakeholders to promote sustainability as well as to improve agricultural production and productivity? What incentives should be changed? What sort of regulation should be enacted or enforced? Where should resources be made available that can have the greatest positive impact? What relationships must be changed such as to create farmers' incentives to improve production and productivity? With the broad social development issues clarified and the key stakeholders identified and analyzed, the SA will focus on how the poor and other vulnerable groups are affected by АНТ/ Ekspert Fikri Page31 of221 existing irrigation and drainage systems, how they will be affected by the proposed project, and how the participation of the poor may affect project ownership and sustainability. Task 2: Semi-Structured In-Depth Interviews The Consultant will carry out 70 in-depth interviews, including about 50 interviews with the farms and households and 20 in-depth interviews with other stakeholders. The interviews will be used to obtain a better understanding of public attitudes and potential vulnerabilities. The Consultant will prepare an in-depth interview guide that will be used for different stakeholder groups (urban households, farms, other enterprises, local authorities). The Consultant will prepare a list of stakeholders to be interviewed which will be reviewed by the World Bank. Task 3: Focus Group Discussions The Consultant will conduct 12 focus group discussions involving representatives of key stakeholder groups. The selection of participants for each group should be based on location, farm type, and access to irrigation and drainage (i.e. at least one of head enders, one of tail enders), and type of water system. The focus groups include separate discussions with representative of ethnic groups, especially poor individuals, youth, and women. The Consultant will prepare a focus group discussion guide reflecting the relevant issues associated with each group, arranged for all logistics, recorded the discussion, and prepared a focus group discussion report highlighting the key points and including actual quotes. At least one focus group discussions included only women. In addition, at least two focus group discussions are held prior to the household survey to identify project issues that may not have been previously identified but may require investigation. The areas of investigations include: (a) Land tenure and its affect on farm productivity. (b) Existing limitations in having proper drainage system and obtaining access to water for agricultural and other purposes. (c) Perceptions of deficiencies with current arrangements for water management and O&M of irrigation and drainage systems, as well as reliability of water delivery. (d) Views on alternative arrangements for establishing WUAs. (e) Willingness to participate in WUAs or other activities to improve O&M of irrigation and drainage systems in the project area. (f) Needs for better access to basic education and health services, land tenure, infrastructure services, and agricultural infrastructure (specifically irrigation) Following the discussions, the Consultant will prepare a content analysis of the discussions and articulate conclusions and implications of the discussions for the project design and АНТ/ Ekspert Fikri Page32 of221 implementation. The Consultant is responsible for preparing a separate focus group report and incorporating the results of these discussions into the final comprehensive analytical SA report. Task 4: Farm/Household Survey A farm survey is carried out to: (a) establish baseline socioeconomic and farm conditions in the project area (for example, household size and structure, income, agricultural production, size of farm plots, water use); (b) determine how farmers view the current arrangements for management and O&M of irrigation and drainage systems; (c) determine farmers’ preferences for alternative management arrangements and any proposed technical improvements; (d) determine the extent to which farms are currently paying for water, and farmers’ willingness and ability to contribute in cash or in-kind for an improved supply of water, and improved irrigation and drainage systems. The survey is also used to investigate issues identified during the initial focus group discussions and pilot testing of the questionnaire. This task includes the following sub-tasks:  Subtask 1: Design Farm/Household Questionnaire The Consultant will design the farm/household questionnaire which will be used in administering the survey. The Consultant will ensure that the questionnaire is designed to: (a) Collect general data on economic and household characteristics including the number, gender, age, and occupation of household members as well as household income (from all sources including employment or self-employment, other assets, transfers) and expenditures, especially those for food, rent, utilities, and farm equipment. (b) Collect farm data relating to land ownership; number of employees, size and condition of land holdings; water supply conditions; farm type, farm equipment, production, drainage system, expenditures for water and related services, existing arrangement for O&M of irrigation network, and type and level of production. (c) Collect information on public attitudes towards alternative arrangements for managing and operating and maintaining irrigating and drainage systems, existing water management institutions and needed improvements, willingness to participate in alternative water user association arrangements, priorities for additional changes that would affect farm productivity, access to information, and information and training needs. The Consultant covers any additional topics in the questionnaire which it regards as useful to the ultimate objective establishing mechanisms and ways which would enhance the implementation and acceptance of irrigation management reforms and the management of the irrigation and drainage systems in the project area. The questionnaire is constructed so that the time required to administer the full questionnaire does not exceed 40 minutes. Prior to the full АНТ/ Ekspert Fikri Page33 of221 survey, the Consultant carries out a pilot survey to test the proposed sampling design and questionnaire. The Consultant sends the draft questionnaire to the World Bank TTL for comments. The number of households covered in the pilot survey should be sufficient to test all of the important aspects of the survey instruments, but need probably be no larger than 50. After completing and reviewing the results from the pilot survey, the questionnaire is revised to reflect the lessons learnt from the pilot.  Subtask 3: Design Sample The Consultant will develop a sampling design that will best generate the desired information. Final representative sample will include at least 750-1,000 households [to be confirmed by sampling expert] that would be affected by the project.  Subtask 4: Field Survey The Consultant is responsible for administering the farm/household survey. In carrying out this sub-task, the Consultant will train local enumerators, arrange for transportation and all logistics, and ensure quality control.  Subtask 5: Data Entry, Data Cleaning, and Analysis The Consultant will undertake a detailed analysis of the results of the farm/household survey. The analysis will focus on: (a) willingness and ability to pay for water or contribute in-kind to the improvement of the water management system; (b) water needs of households, farms, and other water users; (c) preferences of different groups for alternative irrigation and drainage management arrangements; and (d) interest in starting new businesses and related training needs. In carrying out the survey analysis, special attention should be paid to differences of perceptions, interests, and needs according to gender, ethnicity, income level, location, age, farm type, and land ownership. The Consultant is responsible for preparing an initial questionnaire, testing the questionnaire, revising the questionnaire, administering the full survey, coding the results, cleaning the survey data, statistical analysis, and providing a summary set of analytical tables plus copies of the clean data-set in SPSS format to the Client and the World Bank.5 Task 5: Develop Public Participation Plan 5 Staff of the World Bank will provide advice and comments based upon their experience of carrying out and analyzing similar studies elsewhere in Central Asia. АНТ/ Ekspert Fikri Page34 of221 An SA incorporates two types of participation. First, there is the participation of the poor and vulnerable groups, which is a principle objective of the assessment. Second, there is the participation of the broader group of stakeholders -- governmental and non-governmental organizations, donors, and other partners -- in project strategy design. The broader stakeholder participation is critical for attaining the participation of the poor and vulnerable groups, and both levels of participation are important in developing support for the specific project proposals and institutional arrangements. The SA process, therefore, involves the design of an information and communication strategy to ensure stakeholder ownership of these proposals. This plan usually has three elements:  Mechanisms to share the information from the SA with the broader group of stakeholders and partners (including national and international official agencies and NGOs).  Mechanisms to ensure the participation of key stakeholders, wherever feasible, in the next phase of project preparation, and during project implementation.  Feedback mechanisms that facilitate stakeholder response to the information provided. The Consultant should prepare a public participation plan that will provide a general framework for involving participation throughout the next stage of project preparation, accomplishing the various types of participation mechanisms during project implementation, and continually updating the public participation plan throughout project implementation. The plan will: (a) identify key stakeholders; (b) delineate appropriate level of participation for each stakeholder group (for example, information dissemination, consultation, collaboration from each stakeholder group, empowerment); (c) describe frequency of stakeholder consultations; (d) describe how the consultation process will be carried out to ensure that all key stakeholders are engaged, (e) identify training that will be needed to carry out public consultations or other public participation activities; (f) describe how public involvement and participation activities will be monitored and evaluated; and (g) indicate budget required to initiate and sustain these activities. The Consultant also should identify local NGOs or institutes that can contribute to designing and managing the public education and outreach activities during project implementation. АНТ/ Ekspert Fikri Page35 of221 Task 6: Identify Social Development Indicators and Define Mechanisms for Monitoring and Evaluation The inclusion of monitoring and evaluation (M&E) procedures is mandatory for Bank-financed projects. The Consultant will provide inputs to the M&E component by identifying social development indicators for monitoring the program’s effectiveness during implementation. Specifically, the Consultant will: (a) identify monitoring indicators such as benchmarks to measure and monitor inputs that either facilitate participation of poor and vulnerable groups or meet other social objectives, process indicators for the same purpose, output indicators, and procedures and impact measures to determine whether intended social development impacts actually occur; (b) define transparent evaluation procedures, including participatory approaches; and (c) define M&E procedures as part of any impact mitigation plan. Methods and instruments used in social assessment While carrying out SA quantitative and qualitative methods to reflect existing social and economic and demographic conditions are used, to characterize the problems related with irrigation and drainage, with which key stakeholders and beneficiaries face, and also to assess available institutional capacity. Analysis of social assessment includes available information concerning the project zone, including data of official statistics and previous surveys:  Baseline survey and analysis of official statistical data Within SA several data sources are used: (i) Collection of official quantitative indicators at regional and project’s district levels describing the current situation and changes, such as the size of the population, employment, economic activity, living standards, infrastructure, investment, land use, etc.; (ii) Collection of official data on demographic situation at the level of Project Area’s communities; mapping of rural assemblies of citizens (RACs) using GIS technologies; (iii) available qualitative information is analyzed to clearly formulate historical context and to identify groups and the organizations which are most affected by the project; (iv) available sociological data is used to identify important social development problems which are common for the Project as well as to understand which groups of beneficiaries may enhance or impede the participation of low-income and other vulnerable groups.  Quantitative survey method – households survey The household survey was initiated in December 2011. During the pre-field stage the questionnaire for the farmers and household survey was developed and piloted, the sampling parameters were adjusted; fieldwork staff (interviewers and supervisors) was trained to work АНТ/ Ekspert Fikri Page36 of221 with the toolkit and sample implementation.The piloted questionnaire, data on samples parameters and other tools are presented in the Annex to the given report which is prepared after carrying out, processing and analysis of obtained data of HH survey. Totally 1000 standardized interviews with HH were carried out from which 50 interviews were conducted as the pilot ones. HH were chosen by equiprobable and quota sample in three project raions, i.e. Beruni, Turtkul and Ellikkala. Survey of farmers and households was carried out by the face-to-face method at respondents’ house and other places available to carrying out interview, but according to a territorial sample. Survey was carried out by specially trained interviewers. Quality control of work of interviewers was carried out by field supervisors who again visited 6 % of HH. The special program for data input providing quality control of entering was developed for input of information. Final base was processed by standard software for statistical processing SPSS V.15.0 and specially developed program on the basis of Delphi. Sampling for household survey For the farmer and household survey a two-stage random sampling was used so that all populated areas in the Project Area would be covered with equal probability.Cities/UTC and RAC covering the whole territory of project regions were used as primary territorial units. At the I stage settlements / makhallas which are part of RAC become sampling units. In RAC the list of makhalla for selection was prepared taking into account location of settlements so that only those makhallas got to survey, which lie within the borders of project zone. Further in each of rural assemblies of citizens from 2-5 makhallas, 1-2 makhallas were selected for survey by equiprobable sample. At the II stage sampling units were HH. At selection of households random sample from makhalla list of HH, structured in such manner that each family had equal chances to be interrogated. Sample size determination For carrying out of HH survey random probability sample providing representativeness of 95 % at the level of three raions of project zone was created. Calculation of volume of random non- repeated sample was made by the following formula: where n – sample size N – general population size Z - critical point of standard and normal distribution for the set significance value (α = 0,5)  - limiting sample accuracy δ - dispersion of general population index with normal distribution and significant for research objectives. АНТ/ Ekspert Fikri Page37 of221 General population size (number of HH in project areas) is calculated according to the state statistics. Critical point of normal distribution – constant value of confidence probability for the set level of representativeness is 95 %. Limiting sample accuracy is defined by the set significance value and does not exceed 5 %.  Qualitative survey method In each of three raions FGD, public meetings/consultations, in-depth interviews and at final stage of social assessment seminars were carried out. Focus-group discussions SA includes 12 focus groups discussions (FGD) with involvement of representatives of key groups of beneficiaries. Special efforts are undertaken by the Consultant to guarantee equal participation of women and men in these groups. Qualitative analysis of the content of discussions is supplemented with the quantitative analysis (quantification, content analysis). These discussions are carried out for the whole range of selected problems which are of special interest for sustainability of long-term investments into areas of agriculture and water resources management. By the results of planned focus groups discussions (FGD) corresponding report which includes analysis of obtained qualitative information, and also quotes and statements of participants of these discussions is prepared. Data on carrying out and number of participants of FGD in breakdown by areas are presented in the table below: АНТ/ Ekspert Fikri Page38 of221 Table 1 Data on number of participants of FGD Ellikkala raion Number of Name Participants sex Participants Age people st 25 – 70 1 group 8 people 100% women Living in the city of Ellikkala raion years nd Entrepreneurs, living within the city of 25 – 70 2 group 8 people Does not matter Ellikkala raion years rd 25 – 70 3 group 8 people 100% women Living in rural area of Ellikkala raion years th 25 – 70 4 group 8 people Does not matter Living in rural area of Ellikkala raion years Beruni raion Number of Name Participants sex Participants Age people st 25 – 70 1 group 8 people 100% women Living in the city of Beruni raion years nd 25 – 70 2 group 8 people Does not matter Entrepreneurs, living within the city years rd 25 – 70 3 group 8 people 100% women Living in rural area of Beruni raion years th 25 – 70 4 group 8 people Does not matter Living in rural area of Beruni raion years Turtkul raion Number of Name Participants sex Participants Age people st 25 – 70 1 group 8 people 100% women Living in the city of Turtkul raion years nd 25 – 70 2 group 8 people Does not matter Entrepreneurs, living within the city years rd 25 – 70 3 group 8 people 100% women Living in rural area of Turtkul raion years th 25 – 70 4 group 8 people Does not matter Living in rural area of Turtkul raion years FGD are carried out in Uzbek language with participants who freely speak Uzbek language. In groups with 100 % participation of women FGD are carried out by female moderator. Moderators observe the following rules  Cause polemic, disputes for a call of different opinions, live stories and examples – «Really!?», «And I heard another...», «What other opinions?».  If questions cause difficulties (shyness, etc.) - ask not directly about participants, but about acquaintances and rumours. For example, «And among your acquaintances?» or «It is said that …., is it true?»;  Questions in case of their complicated perception were re-formulated saving the idea;  Question «Why?” was the main in FGD and for all answers; АНТ/ Ekspert Fikri Page39 of221  General and abstract answers are not accepted and live stories and examples are caused at participants;  Participants are proposed to evaluate quantitative indices in figures, even the approximate; Moderators inform participants about the following:  Answers are confidential and information will be used for project improvement;  About need to let each participant express his opinion since there are no right or wrong answers, all opinions are valuable;  Permission to use of dictaphone, which is necessary not to distort the statements of participants.  Consultations seminars and information dissemination Besides works within the research, seminars and consultations with beneficiaries in project areas are planned to share information collected within SA. Within SA three consultations and two seminars with interested persons the goal of which is also identification of any questions necessary to address in final design of technical aspects of the Project are carried out. The purpose of regional meetings and seminar is achievement of consensus concerning design, construction and operation of Buston canal and other canals. Objectives of meeting and seminars are the following: i. To acquaint participants with the route and technical details of the canal construction project; ii. To present to participants of meetings and seminars results of environmental and social assessment; iii. To acquaint participants with basic provisions of Resettlement Policy Framework; iv. Collection of questions and proposals of participants for discussion and decision- making. Final results of each seminar were the list of priority subjects by groups – benefits, project risks and proposals. Participants of meetings and seminars included the following interested persons:  Farmers, city businessmen, rural and city HH;  Representatives of khokimiyats and departments of the Ministry of agriculture and water resources;  Representatives of regional department of economy;  Representatives of financial institutions - banks, tax authorities, insurance companies, statistics departments;  Regional and district representatives of Association of Dekhkan and Leasehold Farms;  Representatives of Administrations of Irrigational Systems;  Representatives of local WUA;  Representatives of local female groups;  Representatives of Project implementation unit;  Experts on environmental and social assessment. АНТ/ Ekspert Fikri Page40 of221 At seminars participants are divided into groups by raions. These groups show their vision of benefits, risks and proposals for the project in presentations. Meetings and seminars are conducted by interactive participation, and also using structured format of questions and subjects for discussions. Subjects and questions for discussions are presented in the Appendix.  Semi-structure in-depth interviews Within social assessment Consultant carries out 70 in-depth interviews. Types of interested persons with which interviews are carried out, include:  farmers in different locations of the project area;  urban households;  industrial enterprises;  individuals occupying various types of housing and farms;  adults, young families and others subject to definition. At carrying out interview special attention is given to the difference in perceptions, interests and needs depending on sex, family structure, income level, location, age, type of household and land ownership.  Community participation While preparation of SA report special efforts are undertaken to ensure participation of low- income and vulnerable groups both in identification of needs and access to direct benefits from current and future investments which is of special importance. Thus, information on low-income households, and influence of systems of water - and land use on living standard of low-income families and vulnerable groups of the population is analyzed with special attention. SA process includes development of both strategy of obtaining information and communication strategy to ensure obtaining of proposals from all beneficiaries. SA implementation procedures SA is implemented by local experts consisting of social scientists and interviewers who work under the general supervision of Consultant. Consultant will be responsible for: (a) preparation and transfer of all survey tools (questionnaires on households, guides on in-depth interviews, guide on focus groups discussions) using samples provided by the World Bank; (b) development of representative samples along with training of interviewers, coders and supervisors; (c) preparation of vehicles at and through the project areas, along with placement and food for the field staff (if necessary); and (d) observance of procedures of strict quality control during realization in the field and coding to provide reliability of data. АНТ/ Ekspert Fikri Page41 of221 CHAPTER I KEY STAKEHOLDERS AND BENEFICIARIES OF THE PROJECT 1.1 GENERAL INFORMATION National and regional levels of the Project stakeholders are represented by organizations funded by the State budget and representing State interests. These organizations are responsible, first of all, for the development of agriculture and water resources strategies as well as for operation of agricultural facilities and irrigation and drainage infrastructure. Key stakeholders at national level are: i) Government; ii) Ministries and state agencies; and iii) Design and research institutions. At regional and district levels, key stakeholders include: i) Regional khokimiyats and khokimiyats of the districts of the Project Area, ii) Hydro-Ameliorative Expeditions; iii) Basin authorities of irrigation systems; iv) Regional and district departments for agriculture and water management and their local units, v) Pump Stations Directorate; vi) Irrigation and drainage system operation and maintenance organizations. The other group of stakeholders (mainly local level institutions) does not belong to the Government de jure. They operate in the field of agricultural production or provide production means to the agricultural producers. However, de facto, considering state order covering more than a half volume of agricultural production effectiveness of these organizations directly depends on the state policy in the sphere of water and land use. These organizations include the following: i) Construction companies; ii) Suppliers of agricultural inputs; and iii) Organizations dealing with purchasing of agricultural products. Along with this, the following stakeholders are important at the local level: i) Agricultural producers and their associations; ii) Citizens’ self-governance bodies (Makhallas); iii) NGOs; and iv) Residents of the Project Area, whose incomes depend on agricultural production at irrigated lands. АНТ/ Ekspert Fikri Page42 of221 Besides the above mentioned stakeholders – Uzbek residents, the Project concerns the interests of number of international organizations, which aim to improve the living standards of the people in Uzbekistan, including the Region, through funding of number of activities, including agricultural development and water resources management. These organizations include the World Bank, Asian Development Bank, UNDP, Europa House, and TACIS. 1.2 KEY STAKEHOLDERS I. State agencies of agriculture and water resources sector 1. Ministry of Agriculture and Water Resources (MAWR), namely Ministry of Agriculture and Water Resources of the Republic of Karakalpakstan is public governance body on issues of agriculture and water resources. Ministry of Agriculture and Water Resources of the Republic of Karakalpakstan is subordinate to the Council of Ministers of the Republic of Karakalpakstan and Cabinet of Ministers of the Republic of Uzbekistan. The main functions of MAWR in the field of land improvement and water resources supply are: developing the strategy for water resource management and land improvement, coordinating the activity of water facilities, preservation and rational use of water resources taking into account economic development specifics of the regions of the Republic of Uzbekistan; providing maintenance of main and inter-farm canals, collectors, water reservoirs, hydraulic facilities, pump stations, wells, power lines, transformer substations and other objects on the balance of MAWR; maintaining the water cadastre and state control over the quality of irrigated land, certification of water supply and amelioration systems etc. MAWR is funded through budgetary provisions and revenues of subordinate organizations. The structure of MAWR includes: regional and district territorial departments for agriculture and water resources, basin authorities of irrigation systems, structural departments providing operation of large irrigation and drainage systems. 2. Fund for Ameliorative Improvement of Irrigated lands under the Ministry of Finance of the Republic of Uzbekistanwas established by a special decree of the President of the Republic of Uzbekistan. The Fund is state body, accumulating target financial resources, allocated for improvement of ameliorative condition of irrigated lands. Department for Management of Fund for Ameliorative Improvement of Irrigated Lands acts as Fund Steering Authority. The main goal of Fund establishment is from one hand accumulation of budgetary provisions and attraction of investments, and from another hand monitoring of efficiency and target disbursement of funds. In addition to these, Fund is responsible for the development of medium- and long-term state programs to improve irrigated lands and rendering support to agricultural producers. 3. Ministry of Agriculture and Water Resources of the Republic of Karakalpakstan and District departments of Beruni, Turtkul and Ellikkala districts are local institutions implementing the agrarian policy aimed at increasing of effectiveness of agricultural production, fertility of irrigated lands and rational use of land and water resources. Departments of agriculture and water resources are funded from the State budget and through payments of farmers and revenues from commercial activity of its units. Main responsibilities are: АНТ/ Ekspert Fikri Page43 of221  Developing water resources balance, recording and control over effective use of water;  Managing and supplying water resources to the region taking into account interests of all water users and consumers; and  Implementing measures to improve ameliorative condition and rehabilitate the existing irrigated lands, development of new lands, and introduction of progressive irrigation methods, etc. Main functions are:  Control over target use of land resources, including use by livestock-breeding farms ;  Monitoring fulfillment of contract obligations by leasehold farms;  Development of water balance for the region on the basis of list of applications and forecast of water resources;  Ensuring uninterrupted water supply and rational water use;  Rendering consultancy services to farmers in the field of agricultural production;  Ensuring reliable operation of canals, collectors, water reservoirs, hydraulic facilities, pump stations, communication and power lines, and other communications;  Servicing water supply and amelioration systems at farms;  Monitoring the ameliorative condition of lands; and  Control over design, construction and rehabilitation of infrastructure related to land and water resources use. 4. Basin administrations of irrigation systems (BAIS) were created in accordance with the Decree of the Cabinet of Ministers of the Republic of Uzbekistan in 2003 on the basis of existing bodies of water resources authorities of the central level and their territorial units. Lower Amudarya BAIS with the head office in Nukus city operates in the Project Area. Main tasks of BAIS are:  Ensuring target and rational use of water resources;  Implementing unified technical policy in water resource management;  Providing uninterrupted and timely water supply to consumers;  Rational management of water resources of the basin; and  Ensuring reliable record of water use. One of the main functions of BAIS is development of recommendations on long-term water resources development, modernization, reconstruction and technical reequipping of irrigation and amelioration systems and facilities, participation in development of investment projects. Structural units of BAIS are administrations of main canals and irrigation systems. In Karakalpakstan districts there are 6 administrations of irrigation systems. Pakhtaarna-Naiman irrigation system administration (PAN-ISA) operates in the Project area. 5. Karakalpak Hydro-geological Meliorative Expedition (KHGME). KHGME is one of the key stakeholders of the Project. It provides operation and maintenance of inter-farm, inter- АНТ/ Ekspert Fikri Page44 of221 district and main collectors, monitors ground waters level, salinization of agricultural lands, and chemical composition of drainage water. The tasks of KHGME also include monitoring of land- improvement works by agricultural producers and development of recommendations on sluiceway irrigation. KHGME is a structural unit of BAIS. 6. Karakalpak Pump Stations Directorate (PSD) is in charge of operation, maintenance and repair of irrigation and ameliorative pumping stations. PSD consists of several pumping stations supplying water from Amu Darya River to irrigation system. Biggest ones are Naiman- Beshtam, Kilchinak and Dustlik pumping stations. Figure 2 Organizational structure of agriculture and water resources department of the Republic of Karakalpakstan Council of Ministers of the Republic of Karakalpakstan Ministry of Agriculture and Water Resources of the Republic of Karakalpakstan Water resources sector Agriculture sector(self- (Irrigation and Drainage) financed) Lower Amudarya Basin Administration of Irrigation Agriculture Administration of Systems (BAIS) the region Khokimiyat Karakalpak Hydro-geological Melioration Expedition Agriculture Administration of (KHGME) raion Karakalpak Pump Stations Directorate (PSD) Water Users Association (WUA) Leasehold Farms (LF) АНТ/ Ekspert Fikri Page45 of221 7. Republican water inspection "Uzsuvnazorat" (Uzvodnadzor) monitors the rational and effective use of water resources and observance of schedules and volumes of water-intake from different water sources, including surface and underground sources. 8. Republican association "Uzsuvta’mirfoydalanish" (Uzvodremekspluatatsiya) is responsible for the procurement of specialized equipment and machinery for equipping of water management facilities. 9. Republican Committee for Irrigation and Drainage is an inter-agency and inter- regional body, which coordinates the activities on irrigation and drainage in the Republic of Uzbekistan. Members of the Council are the heads of large water management enterprises and the deputy khokims of the regions in charge of water management issues. 10. Scientific-Information Center of Inter-State Coordination Water Commission (SIC ISCWC) develops proposals and recommendations on the rational distribution of water among the countries of the region based on analysis of information on water resources in the Central Asian region. 11. Scientific-production union SANIIRI develops scientific and practical recommendations and activities in the field of irrigation. 12. Uzbek scientific-production center for agriculture Main tasks of the Center are: (i) Organization of scientific researches on essential issues of agro-industrial complex of the Republic and introduction of their results into agricultural production; (ii) Development of scientific and methodological fundamentals for increasing fertility and effective use of irrigated, dry-farming and forest lands, mountainous, desert territories and pastures; (iii) justification and introduction of intensive technologies for cultivating, storing and processing of agricultural crops, rational use of land and water resources; (iv) broadening researches in the field of selection and seed-growing of cotton, grain and other crops, testing and preserving the selection achievements; (v) addressing scientific problems of livestock and pedigree stock-breeding, theory of veterinary, veterinary sanitation and acarology, creation of scientifically substantiated systems of medioprophylactic activities; (vi) organization of researches in the field of biological and integrated methods of plants protection, investigation of low-toxicity herbicides, pesticides, growth regulators and other high-efficient environment friendly compounds for environmentally clean production. 13. Educational institutions of MAWR system (Tashkent Agrarian University, Tashkent Institute for Engineers of Irrigation and Mechanization of Agriculture, Samarkand and Andijan Institutes of Agriculture, Nukus subsidiary of Tashkent Agrarian University , professional colleges and academic lyceums of agricultural specialization6) - train personnel of higher and secondary professional qualification for work in water resource management bodies, in irrigation and land-improvement institutions, and in the communal services sector. II. State organizations implementing measures on acquisition of land plots and determination of compensation amounts 6 under the Ministry for Higher and Secondary Specialized Education jurisdiction АНТ/ Ekspert Fikri Page46 of221 14. Regional land acquisition commission is established by the decision of regional khokim. Commission: (i) determines location of facilities and constructions, envisaged by the project; (ii) selects land plot for construction site; (iii) prepares and approves Certificate of agreement of land plot allotment; (iv) approves Certificate for the right for land use, with indication of area of crop land exempted, agreed conditions and total value of losses of agricultural production. Commission, along with its permanent members, also includes representatives of enterprises and/or organizations, to which the plots are allotted, and organizations, from which the plots are being exempted. 15. Department of State committee on geodesy and cartography (Uzgeocadastre) withinthe district khokimiyat is the main executing agency, whose functions include: (i) determination of losses incurred by landowners and land-users and losses of agricultural production; (ii) defining extents and methods emphasized on restoration of land for farming activity, including removal and temporary storage of rich soil; (iii) defining necessity to establish sanitary and water-protection zones around facilities being constructed and the rules and restrictions to be followed within such perimeters; (iv) elaboration of proposals for compensation with equivalent surface land of same or better quality in other areas in consultation with citizens; (v) in case of permanent acquisition of irrigated lands, estimation of requirements and cost for the reclamation of replacement new lands; (vi) approval of Certificate of landmarking with an attached plan; (vii)amendment of official documents confirming the right to ownership or the right for land use, and other land and cadastre documents. 16. Evaluation commission, constituted by resolution of the district khokim, determines in the established order losses incurred by landowners and land-users resulting from acquisition of land for state and public needs based on the information, provided by the design institute which has developed the planning for land acquisition. The findings of the evaluation commission are formalized in form of Certificate for the right to land use, specifying the area of agricultural lands exempted, the agreed conditions, and the total value of losses of agricultural production. 17. Territorial nature protection departments: (i) carries out environmental examination of negative effects of facilities being commissioned or technologies being introduced; (ii) approves location of facilities having negative effects on soil condition; (iii) develops measures aimed at land preservation during location, design, construction and putting into operation of new and reconstructed facilities, constructions and structures, as well as when introducing new technologies that have negative effect on condition of lands; (iv) approves Certificate of agreement to land allotment. АНТ/ Ekspert Fikri Page47 of221 18. Departments of State sanitary and fire inspection, departments of water resources approve the Certificate of agreement to land allotment. III. Other State Bodies 19. Ministry of Economy and its regional branches is the key public institution responsible for planning and implementing socio-economic development programs including development of agriculture and water resources, involvement of international organizations in project implementation, etc. 20. Khokimiyats of the Republic of Karakalpakstan, cities and districts of the Project Area. In accordance with the existing legislation, khokims bear personal responsibility for the development of the region. Key functions of khokims include: (i) managing economic, social and cultural activity; (ii) ensuring implementation of socio-economic development programs, including programs in the field of agricultural production; (iii) mobilizing territorial and inter-sector resources for increase of effectiveness of production and resolving social problems; (iv) organizing privatization activities at local level; (v) promoting international and inter-regional economic relations; (vi) implementing the local budget; (vii) ensuring observance of law, maintaining order and providing individual security; (viii) managing local enterprises for communal service and socio-cultural sphere; and environment protection. Many departments of khokimiyats have dual subordination (for example, Department of Economy of khokimiyat subordinates not only to Khokim but also to the Ministry of Economy. Department of labour and social protection – to the Ministry of Labour, Department of agriculture and water resources to MAWR, etc.). 21. State Committee for Nature protection (Goskomprirody) ensures control over observance of legislation in the field of environment, develops and implements environment protection activities. Committee and its subdivisions monitor land condition, including its quality. 22. Center of hydro-meteorological service under the Cabinet of Ministers (Uzgidromet) provides the agriculture sector of the Republic with weather forecasts, monitors hydrological mode of rivers, lakes and water reservoirs, and bears responsibility for monitoring of quality of water in rivers, lakes and reservoirs. Uzgidromet has a ministerial status. 23. State Committee of the Republic of Uzbekistan on Land Resources, Geodesy, Cartography and State Cadastre (Goskomzemgeodezkadastr). Goskomzemgeodezkadastr of the Republic of Uzbekistan was established by the Decree of the President of the Republic of Uzbekistan on 15 October 2004 on the basis of State Committee for land resources of the Republic of Uzbekistan and State Department for Geodesy, Cartography and State Cadastre under the Cabinet of Ministers of the Republic of Uzbekistan. АНТ/ Ekspert Fikri Page48 of221 Main tasks and fields of activity of Goskomzemgeodezkadastr of the Republic of Uzbekistan are:  Implementation of unified state policy on rational use and protection of lands;  Maintenance of State control over rational use and protection of lands;  Development and implementation of State programs on improving fertility of soil, rational use and protection of lands;  Management of geodesic and cartographic activity;  Organization of State geodesic control;  Coordination of activity of national and local authorities in the field of maintaining state cadastres;  Maintenance of State land cadastre, State cartographic-geodesic cadastre, State cadastre of buildings and constructions as well as the Common system of State cadastres. 24. Centers for support to employment are branches of respective khokimiyats and the Ministry of Labor and Social Protection and are represented in every district of Uzbekistan, including in the Republic of Karakalpakstan. The centers provide support for employment, training, retraining of unemployed and those seeking employment, fix and pay allowances. They also organize involvement of unemployed citizens in temporary paid public works, including works on repairing, rehabilitation and cleaning of irrigation and drainage systems. Several other ministries and institutions are entrusted with implementation of environment protection activities and performing control functions. They also carry the responsibility for certain respective areas, namely:  Agency for Energy and Electrification manages hydro power stations and relevant water reservoirs; and  Committee for Geology and Mineral Resources is responsible for monitoring and control over underground water. IV. Self-financing enterprises – potential participants of design and construction works Self-financing enterprises of MAWR of RUz: 25. State unitary enterprises “Davlatsuvmahsuspudrat” (state water special contractor) are the newest type of state-owned enterprises created by special Decree of the Cabinet of Ministers (May 7, 2008, No. 92). The main purpose of the Decree is to create enterprises exclusively specialized in implementation of ameliorative land improvement works and other works on servicing of irrigation and drainage system. In 2007 in pursuance of the Decree of the President of the Republic of Uzbekistan dd. October 29, 2007 No. PD-3932 "About measures on radical improvement of system of ameliorative improvement of lands", with a view of stimulation of modernization of existing and creation of diversified park of ameliorative machinery, ensuring supplies to construction and operational water resources organizations which carry out activity on ameliorative improvement of irrigated lands, modern ameliorative machinery and equipment the Cabinet of Uzbekistan adopted the АНТ/ Ekspert Fikri Page49 of221 Decree No. 266 on establishment of Specialized state leasing company "Uzmeliomashleasing".The company provides delivery of specialized modern machinery and equipment on the terms of financial leasing to the construction and operational water resources organizations improving irrigated lands in the Republic. The main function of SLC "Uzmeliomashleasing" is transfer of ameliorative machinery, cars and other means of mechanization, procured on the bid basis for leasing for a period of 10 years, to the construction and operational water resources organizations, and also water users associations and leasehold farms. Thus 15 % of the cost of leased machinery will be paid by lessee in form of advance payment out of own funds, and 85 % – to be financed by "Uzmeliomashleasing" out of the funds provided to it on credit terms by the Fund for ameliorative improvement of irrigated lands under the Ministry of Finance of Uzbekistan. 26. Association “Uzmahsussuvdrenaj” (Special water drainage) deals with construction, repairs and reconstruction of inter-district, inter-farm and on-farm drainage systems and collectors. Their work is based on inquiries of agricultural enterprises. 27. Association “Uzirta’mirkurilish” (Uzirremstroy) carries out contractual works on construction and repairs of irrigation networks. This enterprise deals with construction, repair and cleaning of drainage-collector and irrigation networks. 28. Production-financial association “Suvmahsustamirkurilish” (Vodspetsremstroy) unites self-financing enterprises, trusts and construction departments which deal with construction and repairs of water-intake facilities, water reservoirs, irrigation and drainage canals, pump stations and other hydraulic constructions and facilities. 29. Republican foreign economic enterprise “Uzsuvhorijiykurilish” (Uzvodvneshstroy) operates in the field of use and construction of water resource facilities at inter-governmental level, including those located outside the territory of Uzbekistan. 30. Association of industrial enterprises of water sector unites machinery-building enterprises which produce equipment, machinery and mechanisms for hydro-melioration needs, including pumps and their component parts. They receive orders for production of equipment by machinery-building enterprises which are not members of the Association. 31. Association “Uzsuvloyiha" (Waterproject-Giprovodkhoz) unites project organizations which design hydro-melioration constructions, and conducts monitoring and expertise of projects in the field of water supply for land-improvement. 32. Scientific-research institute for amelioration and water resources “UzGipromeliovodkhoz” designs hydro-melioration constructions. V. Other self-financing enterprises: 33. Joint-stock company “Uzsuvuskunabutlash” (Uzvodooborudremont – Uz water equipment repairing) unites the enterprises which deal with repairs and servicing of hydro- melioration equipment, including pump stations and locking devices. 34. Association “Uzmeliosuvtrans” (Uzmeliovodtrans) provides construction and assembly trusts and departments with transport facilities and other specialized vehicles used for land-improvement works. АНТ/ Ekspert Fikri Page50 of221 35. Production department “Suvokava” (Vodokanal) deals with repair works and use of water pipe networks and communications; ensures water-intake, filtering and processing of water to the potable quality, and supplies the population with the drinking tap water. Contractor for construction of water-pipe networks. VI. Non-governmental organizations related to land use 36. Makhallas are local self-government bodies or assemblies of citizens of settlements, villages and city quarters. Rural Assembly of citizens (RAC) is a supreme self-governance body which has a right to represent the interests of the population and make decisions on its behalf within respective territory. The authorities of citizens’ assemblies include resolving almost all issues pertaining to day-to-day activity of the population, which lives within the respective territory, including the following:  Creating a favorable environment, developing social infrastructure of the territory, including supplying the population with drinking water and natural gas;  Participating, in cooperation with public governance bodies and economic actors, in resolving issues pertaining to distribution of land for dehkan and leasehold farm and constructions;  Organizing pooled labor (khashars7) for improving the territory, construction of social infrastructure objects, including cleaning of irrigation and drainage systems; and  Ensuring completeness and timeliness of payments for housing and communal services through outreach activities, and using community influence methods on families which have debts for non-payment for public utilities. 37. Republican Association of Dehkan and Leasehold Farms unites dehkan and leasehold farms and small enterprises dealing with processing of agricultural production, protects and represents their interests in public and other organizations. One of the main objectives of the Association are: (i) Regular studying the effectiveness of land use by dehkans and leasehold farms, providing recommendations to the khokimiyats on land allocation or expropriation; (ii) Supplying agricultural producers with seeds, fertilizers and other resources (on a contractual basis); (iii) Providing consulting services and other assistance to dehkans and leasehold farms; and organizing training for their members in modern agro-technologies, rational and effective use of land and water resources. 38. Water Users Associations (WUAs) are unions of leasehold farms and legal entities and individuals providing paid services for irrigation water distribution and operation of on-farm irrigation and drainage systems. WUA is a new type of non-governmental organization in land and water use. The legislative basis for the creation of WUA and their operation is the Decree of the Cabinet of Ministers dated January 5, 2002 “On measures for restructuring agricultural enterprises into leasehold farms”. 7 Khashar – voluntary non-paid activities to improve the territory and to carry out construction and other works implemented by voluntary will of citizens. KhasharsaretraditionalandwidespreadphenomenainUzbekistan. АНТ/ Ekspert Fikri Page51 of221 39. Non-governmental non-profit organizations (NGOs) working in the sphere of environment protection include the Republican Fund “ECOSAN”, Karakalpakstan department of ecological association, “Aral gold heritage” in the Republic of Karakalpakstan. The Project has to establish cooperation with such organizations. VII. Communal services organizations 40. Uzbek Agency “Uzkommunhizmat” was created in 2000 on the basis of the abolished Ministry for Communal Services of the Republic of Uzbekistan and is public authority in the sphere of communal servicing of population. The main tasks of the Agency in the field of water supply consist of the following: (i) Provision of sustainable and reliable operation of inter-regional water pipelines; (ii) Development and implementation of common technical policy for operation and maintenance of inter-regional water pipelines, acting as a contractor for construction of water pipelines; (iii) Development of legal framework and technical-economic requirements concerning communal services. The main functions in the sphere of water supply are: (i) Development of concepts and programs for inter-regional water pipelines network, irrigation and drainage infrastructure development in the territory and settlements; (ii) Development of economically sound tariffs and norms of communal water use. 41. Territorial communal associations (TCA) are local economic governance bodies subordinate to the regional khokimiyat and the Agency. TCA is Client for construction of inter- district water pipelines and other communal facilities. The main functions of TCA in the field of water supply are: (i) Supplying the population with drinking water, central heating and sewerage; (ii) Creating organizational and economic conditions for creation of associations and single customer services and alternative contractual organizations for providing the population with communal services; (iii) Maintaining state control over the activity of local (district and municipal) communal services and organizations; (iv) Monitoring drinking water quality; (v) Monitoring the operation of municipal drainage network. The budget of TCA is formed through payments of district and municipal self-funding communal operation organizations and its subordinate enterprises. Budget subsidies are provided for capital construction of TCA. 42. Homeowners associations (HOA) are non-governmental organizations acting as independent legal entities which unite the homeowners for joint management, operation and safety of homes, determining the terms of ownership and use of community facilities, ensuring relevant sanitary, fire-prevention and technical condition of property of the homeowners. АНТ/ Ekspert Fikri Page52 of221 Associations of homeowners usually formed on the basis of abolished housing and operation bodies. The associations deal with the following: (i) Servicing and repair works of housing; (ii) Providing communal services for the homeowners, tenants and lessees; (iii) Ensuring observance of regulations for the use of housing, common use of facilities and adjacent territories; (iv) Ensuring complete and timely payment for operation and communal services by homeowners, tenants and lessees; (v) Serving as a contractor for works related to housing services; (vi) Improvement and greenery planting of adjoining the house territories; (vii) Protecting the rights and interests of homeowners with regard to issues pertaining to communal services in all instances and organizations. 1.3 KEY BENEFICIARIES OF THE PROJECT Key beneficiaries of the Project are:  Leasehold farms are independent entities engaged in agricultural production on land provided by the Government for long-term lease up to 50 years. The Government of Uzbekistan has formulated a reform policy in the agrarian sector according to which, optimization of leasehold farms is carried out. Since October 2008 the following change with focus on “optimization” of sizes of leasehold farms for creation of larger units. Number of farmers in Turtkul raion decreased from about 900 to 356 units in 2011, in Beruni – to 308 and in Ellikkala – to 390. For the moment total number of leasehold farms in the project area makes 1054, operating in Beruni, Turtkul and Ellikkala raion;  Dehkan farms are family-owned small-scale farms producing and selling agricultural products by personal labor of family members at adjoining land plot of 0.1-0.15 ha (tamarka) provided to the head of family for the life inheritable tenure. In Beruni raion during the above-mentioned reforms there were 21,375 owners of adjoining land plots irrigating about 3,166 ha or in average by 0.15 ha/farm, and in Turtkul raion – 23,000 owners of adjoining land plots irrigating 5,000 ha (by 0.22 ha/farm);  Owners of housing and buildings: rural and urban households and representatives of small business –owners of property and users of public buildings and infrastructure damaged as a result of problems with operation of irrigation and drainage infrastructure may also benefit from the Project; Most of project beneficiaries live in rural area. The majority is engaged in agricultural sector, nevertheless differences between the raions are considerable. Project will contribute to the increase of living standards of population. It will also affect reduction of number of vulnerable population. Vulnerable groups of the project zone are represented with: i. Farmers and dekhkans lands of which are subject to salinization and waterlogging; and ii. People living in impounded houses (first of all, women and children); iii. Low-income people; АНТ/ Ekspert Fikri Page53 of221 iv. Working exclusively at dekhkan land plots. АНТ/ Ekspert Fikri Page54 of221 CHAPTER II BASIC STATISTICAL INFORMATION ABOUT RAIONS OF PROJECT AREA 2.1 BRIEF DESCRIPTION OF THE REPUBLIC OF KARAKALPAKSTAN AND PROJECT RAIONS Republic of Karakalpakstan is located in the northwest of Uzbekistan in Amu Darya River lower reaches, along the southwest coast of the Aral Sea on Turan lowland. From the southwest Karakalpakstan is adjoined closely by Kara Kum Desert, in the northwest there is Ustyurt plateau, and in the northeast - Kyzyl Kum Desert. The territory of Karakalpakstan includes the southern half of the Aral Sea at dried bottom of which new saline Aralkum Desert and drying-up lower reaches of the Amu Darya River is formed now. The territory of the Republic makes 166.59 thousand m2. Climate in Karakalpakstan is sharp and continental with hot and dry summer, and also cold winter with some insignificant precipitation. The average temperature in January makes from -5 to - 8С. The minimum temperature in winter makes - 38С. The average temperature in June reaches from +26 to +28С, and in July and August - +50С. The average level of precipitation makes 100 mm per year. As for January 1, 2011 total number of population of the Republic of Karakalpakstan made 1 648.9 thousand people8. Number of economically active population – 627.4 thousand people (38% of total population of the region), grew by 2.4% in comparison with the period of 2009- 2010. The capital of Karakalpakstan is Nukus. There are 12 cities and 25 urban settlements in the republic. The Republic of Karakalpakstan is divided into 14 raions. Analysis of indicators of gross regional product of the Republic of Karakalpakstan for the last several years shows GRP growth. GRP in 2006 made 578 billion UZS, in 2010 this indicator reached 1 389.8 billion UZS, with annual growth of 105-108 % during 2006-2010. Main branches of agriculture of the Republic of Karakalpakstan are grain production (production of wheat and raw rice), cotton production, animal husbandry and silkworm breeding. For January 1, 2011 the area of agricultural lands in the republic made 262.9 thousand ha. Quantity of farms makes 4.119 thousand; 171.6 thousand people are working there. The volume of gross output of agriculture makes about 482 billion UZS. Existing problems of irrigation and drainage in this territory are the factor defining decrease in income of the population and causing significant damage to houses and infrastructure. The project will promote overcoming of obstacles for efficiency of agriculture in South Karakalpakstan (SK) region, in particular, on the area of about 100,000 ha located in project raions. All these raions are located on the right river bank, in the southern part of the Autonomous Republic of Karakalpakstan. 8 Data on population for total 2011 will be available after the reporting period of 2012. The reporting period falls on February, 2012. АНТ/ Ekspert Fikri Page55 of221 2.1.1 Geografical indices of project raions South Karakalpakstan region with total area of 16.841 km2 is represented by, in most part, an extensive plain in the delta of Amu Darya, with small incline towards the Aral Sea. The surface of the plain is crossed by old river beds and irrigation and drainage network. The lowest level is in Barsakelmesa (29 m), and the highest – in Sultan-Uvais (473 m). The area of 150,650 ha is considered suitable for irrigation, including 100,000 ha which are already served by infrastructure of irrigational system. However not all this infrastructure is in working condition. Project territory is geographically located in the Republic of Karakalpakstan in the northwest of Uzbekistan near the Aral Sea (41°10' – 44°00' northern latitude, 59°10' – 61°40' east longitude) and borders with Navoi region in the east, Bukhara region in the southeast and Khorezm region in the southwest. Administratively project territory is part of the territory of three raions of Karakalpakstan - Beruni, Ellikkala and Turtkul. АНТ/ Ekspert Fikri Page56 of221 2.2 BRIEF DESCRIPTION OF GENERAL STATISTICAL INDICES OF PROJECT RAIONS 2.2.1 Demography of project raions Number of resident population of the project zone makes about 29% of resident population of the Republic of Karakalpakstan. In 2011 number of resident population of the project territory made 472.1 thousand people. Diagram 1 Share of resident population of project raions in the Republic of Karakalpakstan Source: State Committee on Statistics of the Republic of Uzbekistan Dynamics of number of resident population of project raions is positive. Population growth during 2007-2011 made 6.4 % for the entire period. Population of Beruniy raion during 2007-2011 increased by 8.2 %. The annual growth of population of the raion for the specified period reaches 1.3 % a year9. Population of Turtkul raion increased by 6.7 % during the last five years with annual growth of 1.6 % a year. During the last five years in Ellikkala raion the annual population growth made about 1.8 % a year, and by 2011 population increased by 7.2 %. 9 Average indicator for the considered period АНТ/ Ekspert Fikri Page57 of221 Table 2 Size of permanent population of project raions for the period 2007-2011 (thousand people) 2007 2008 2009 2010 2011 Republic of 1582,7 1595,4 1615,7 1632,0 1648,9 Karakalpakstan including: Beruni raion 153,3 155,0 157,1 159,1 161,5 Turtkul raion 167,1 169,4 172,3 175,4 178,3 Ellikkala raion 123,4 125,2 127,7 130,0 132,3 Source: State committee on statistics of the Republic of Uzbekistan The prevailing share of the population in project raions is rural. The most part of rural population is typical for the population of Ellikkala raion. In spite of the fact that the smallest share of the population lives in Ellikkala raion among considered project raions in general – 132.3 thousand people, the share of rural population reaches 89 % or 117.8 thousand people. About 125 people of urban population are the share of each 1000 people of rural population in the raion. In Beruni raion urban population makes about 38 % of total number of population of the raion. Rural population makes 62 % of total number of population of the project raion respectively. In 2011 about 660 people of urban population were the share of each 1000 people of rural population. In total number of resident population of Turtkul raion urban population makes about 36 %, rural population – about 64 % respectively. About 640 people of urban population are the share of each 1000 people of rural population of the raion. Urban population of project raions lives in the cities of Beruni, Turtkul and Bustan and in urban type settlements. At the same time considerable number of inhabitants of urban settlements either depends on agriculture, or has problems because of deterioration of buildings owing to high level of ground waters, and can be therefore included in number of direct or indirect beneficiaries of the project. Indicators of a ratio of urban and rural population of project raions are presented on the diagram below: АНТ/ Ekspert Fikri Page58 of221 Diagram 2 Size of urban and rural population of project raions for the period 2007-2011 (thousand people) Source: State Committee on Statistics of the Republic of Uzbekistan As table shows the share of number of men and women in project raions varies slightly. The prevailing share among the population is still the share of men. The share of men among the population of Beruni raion makes 50.5 %. About 979 men are the share of 1000 women of the considered raion. In Turtkul raion the share of men among the population reaches 50.4 %. At the same time, in spite of the fact that the share of male population in this raion exceeds the share of men among the population of Beruni raion by 0.1 %, 4 men more than in Beruni raion, making about 983 men is the share of 1000 women of Turtkul raion. The share of men among the population of Ellikkala raion is less than the share of men among the population of Beruni and Turtkul raions and reaches 50.3 %. At the same time for Ellikkala raion the greatest number of men per 1000 women in the raion is typical. This indicator makes 989 men per 1000 women, and exceeds the indicator of Beruni raion by 10 people and Turtkul raion by 6 people. Table 3 Population size in project raions by gender for 2011 (thousand people) Population size Share in population, % Number of men per Raion Total men women men women 1000 women Beruni 161,5 81,6 79,9 50,5% 49,5% 979 Turtkul 178,3 89,9 88,4 50,4% 49,6% 983 Ellikkala 132,3 66,5 65,8 50,3% 49,7% 989 Source: State Committee on Statistics of the Republic of Uzbekistan In general among urban population the number of women slightly prevails over number of men while more men than women are the share of rural population. Among urban population in АНТ/ Ekspert Fikri Page59 of221 project raions only in Beruni raion male population is more than female, in other two raions number of women is higher which is described by various reasons, including high rate of migration abroad. The difference between number of men and women in rural areas of Beruni raion varies between 49.8 and 48.7 thousand people. Number of men exceeds number of women living in rural areas by 1.1 thousand people respectively. The share of men among rural population makes 50.6 %. In the city area the number of men exceeds number of women by 0.6 thousand people. The share of men among urban population reaches 50.5 %. In Turtkul and Ellikkala raion more women, rather than men is the share of urban population, and in rural areas number of male population as in Beruni raion prevails over the female population. In Turtkul raion the share of men among rural population makes 50.8 %. Number of men exceeds number of women by 1.7 thousand people. In Ellikkala raion number of men of rural areas makes 50.4 % and exceeds number of women by 1 thousand people. Prevalence of male population in rural area can be described by the fact that in rural areas heavy physical work is required, and heavy work is generally done by men. Table 4 Size of urban and rural population in project raions by gender for 2011 (thousand people) including: including: including: Total City Village men women men women men women Beruni 161,5 81,6 79,9 63,0 31,8 31,2 98,5 49,8 48,7 Turtkul 178,3 89,9 88,4 69,6 34,7 34,9 108,7 55,2 53,5 Ellikkala 132,3 66,5 65,8 14,5 7,1 7,4 117,8 59,4 58,4 Source: State Committee on Statistics of the Republic of Uzbekistan Indices of project raions population natural movement, based on such demographic indices as birth rate, mortality, increase in population, allow to see positive tendencies of population growth. This fact also shows that gender and age structure of population has positive tendencies of growth of number of young population and tendencies of aging of the population is not observed in project raions. Indices of natural movement of the population of Beruni raion: Number of resident population of the raion for the considered period has tendencies of stable positive growth. At the same time for the same period indices of natural movement of the population vary. In the raion birth rate in natural value increases, and mortality grows simultaneously. Tendencies of natural increase of the population also fluctuate, and by the end of 2010 the index of natural growth reached the number of 3,148 people per year which makes about 19.6 people of growth per 1000 of population of the raion. АНТ/ Ekspert Fikri Page60 of221 Table 5 Natural movement of the population of Beruni raion fort the period 2006-2010 (people) out of them: died at the Natural growth of Number of born Number of dead Year age of 1 year population per 1000 of per 1000 of per 1000 of per 1000 of people people people people population,‰ population,‰ population,‰ population,‰ 2006 3523 23,1 733 4,8 - - 2790 18,3 2007 3828 24.8 781 5.1 - - 3047 19.7 2008 3825 24.5 839 5.4 - - 2986 19.1 2009 3965 25,0 789 5,0 -* -* 3176 20,0 2010 3918 24,4 770 4,8 46 11,7 3148 19,6 Source: State Committee on Statistics of the Republic of Uzbekistan *State Committee on Statistics did not provide this index for 2006-2009 in breakdown by raions. For the specified period the index is provided for the Republic of Karakalpakstan as a whole. Indices of natural movement of the population of Turtkul raion: Indices of number of resident population of the raion during the last five years are characterized by stable growth. At the same time indices of natural movement of the population and natural growth have periodic character. In general indices of natural increase of the population in the raion are positive. Index of natural movement of the population of Turtkul raion in 2010 made 2,593 people per year which is about 18.0 people of growth per 1000 population of the raion. Table 6 Natural movement of the population of Turtkul raion fort the period 2006-2010 (people) out of them: died at the Natural growth of Number of born Number of dead Year age of 1 year population per 1000 of per 1000 of per 1000 of per 1000 of people people people people population,‰ population,‰ population,‰ population,‰ 2006 3557 21,4 877 5,3 - - 2680 16,1 2007 3956 23.5 892 5.3 - - 3064 18.2 2008 4204 24.6 859 5.0 - - 3345 19.6 2009 4423 25,4 823 4,7 -* -* 3600 20,7 2010 3997 22,6 811 4,6 14 12,5 3186 18,0 Source: State Committee on Statistics of the Republic of Uzbekistan *State Committee on Statistics did not provide this index for 2006-2009 in breakdown by raions. For the specified period the index is provided for the Republic of Karakalpakstan as a whole. Indices of natural movement of the population of Ellikkala raion: Despite stable growth of population in Ellikkala raion same as in two other project raions indices of natural movement of the population and natural growth have periodic character. Indices of natural growth in the raion made 2,593 people a year at growth of 19.8 people per 1000 population in 2010. АНТ/ Ekspert Fikri Page61 of221 Table 7 Natural movement of the population of Ellikkala raion fort the period 2006-2010 (people) out of them: died at the Natural growth of Number of born Number of dead Year age of 1 year population per 1000 of per 1000 of per 1000 of per 1000 of people people people people population,‰ population,‰ population,‰ population,‰ 2006 2862 23,4 535 4,4 - - 2327 19,0 2007 2990 24.1 550 4.4 - - 2440 19.7 2008 3240 25.6 579 4.6 - - 2661 21.0 2009 3263 25,4 526 4,7 -* -* 2737 21,3 2010 3117 23,8 524 4,0 34 10,8 2593 19,8 Source: State Committee on Statistics of the Republic of Uzbekistan *State Committee on Statistics did not provide this index for 2006-2009 in breakdown by raions. For the specified period the index is provided for the Republic of Karakalpakstan as a whole. As a whole raions of the project territory are characterized by relatively high level of population growth in comparison with average value of natural growth in the Republic of Karakalpakstan, making about 18 people per 1000 population in 2010-2011. It is caused by high birth rate in rural areas. In dynamics of the considered period of 2006-2010 the highest birth rate is noted in Turtkul raion and makes 3,997 people. However owing to high mortality natural growth of the population in this raion is the lowest among three raions of the project territory. The highest ratio of natural growth of the population in 2010 is typical for the population of Ellikkala raion with the highest share of rural population. Total growth of population of project raions can be characterized only by analysis of indices of population of raions, indices of natural growth of the population and population migration rates. Project raions have quite low rates of migratory outflow of the population relative to indices for the Republic of Karakalpakstan. In 2010 the share of arrived in project raions made 17 % of total arrived in the Republic of Karakalpakstan. The number of left from the project raions makes about 14 % of the index for the Republic of Karakalpakstan. Considering that in project raions the prevailing share of the population lives in rural areas, respectively the greatest share of migrating and emigrating population is the share of rural population. The highest migration is observed in Beruni raion – during 2010-2011 the number of left out of the raion for permanent residence made about 0.92 % of population of the raion, in other raions of project zone – less than 0.9 %. Migratory growth of population in project raions has negative character. It is caused by prevailing number of leaving over the number of arriving population. In 2010-2011 in Beruni raion migratory growth made 748 people or 4.6 people per 1000 of population. Taking into account indices of natural growth of population of 19.6 people per 1000 of population, total growth of population considering migration will make 15 people per 1000 of population. АНТ/ Ekspert Fikri Page62 of221 Migratory growth in Turtkul raion makes 287 people or 1.6 people per 1000 of population. Total growth of population taking into account migration makes about 16.4 people per 1000 population at natural growth of population of 18.0 people per 1000 of population. In Ellikkala raion migratory growth index made 293 persons for 2010-2011 or 2.2 persons per 1000 population. At natural growth of the population of 19.8 people per 1000 of population total growth of population considering migratory growth makes 17.6 people per 1000 of population. Table 8 Migration of population in project raions fort the period 2010-2011 (people) Total City Village arrived left arrived left arrived left Republic of 14275 26971 8209 17643 6066 9328 Karakalpakstan raions: Beruni 700 1487 244 511 456 976 Turtkul 705 1009 289 499 416 510 Ellikkala 969 1192 280 515 689 677 Source: State Committee on Statistics of the Republic of Uzbekistan Ethnic structure of population is presented by various nations and nationalities. In project raions more than 38 % of the population are Uzbeks, Karakalpak – about 35.7 %, Kazakhs – 18.6 %, Turkmens – 5.1 %, Russian – 0.7 % and other nationalities. In places of compact residence – Karakalpak, Kazakh, Russian, Tajik and Kirghiz languages are used along with Uzbek. Ethnic structure of the population of project raions is presented in the diagram below: Diagram 3 Ethnic population structure in project raions in 2010-2011 (%) Source: State Committee on Statistics of the Republic of Uzbekistan АНТ/ Ekspert Fikri Page63 of221 2.2.2 Indices of social-economic development of project raions 2.2.2.1 Macroeconomic indices In general the Republic of Karakalpakstan plays important role in economy of Uzbekistan. In 2010-2011 in the Republic of Karakalpakstan Gross Regional Product in established prices made 1 389.8 billion UZS, growth rate by the period of 2009-2010 in comparable prices made 110.0 %. In GRP structure of the Republic of Karakalpakstan other sectors (35.6 %) and agriculture (24.4 %) are at the main place. Share of industrial production – 9.6 %, construction – 8.3 %, trade and public catering – 8.1 %, transport and communication – 7.6 %, taxes – 6.4 %. 10 Table 9 Aggregate macroeconomic indices of the Republic of Karakalpakstan for 2010-2011 Index Gross Regional Product 1 389.8 billion UZS Volume of industrial production 406 673.8 million UZS Gross agricultural production in established prices 482 353.9 million UZS Volume of capital investments 457 852.4 million UZS Retail turnover 684 244.6 million UZS Paid services 207 459.5 million UZS Foreign trade turnover 115 426.2 thou. USD Local budget revenues 512 914.2 million UZS Local budget expenditures 509 008.4 million UZS Source: Data of the Ministry of Economy of the Republic of Karakalpakstan In 2010-2011 the number of entities of small business of RK, without dekhkan and leashold farms, made 8 967. Share of small business in GRP – 63.6 % (growth by 4.6 % in comparison with 2009-2010). The volume of produced construction materials in 2010-2011 made 32 547.8 million UZS (growth by 199.0 % in comparison with 2009-2010). Volume of industrial production is 387 877.3 million UZS (109.4 % of indices in 2009-2010). In 2010-2011 production of national consumption was in amount of 153 634.5 million UZS (109.2 % of indices in 2009-2010). For 2010-2011 the quantity of farms operating in the Republic of Karakalpakstan made 4 119.0, out of them 3 532 leashold farms are occupied with agriculture, 435 - animal husbandry, 152 farms with other spheres. Bank sphere of Karakalpakstan develops quite quickly. In the Republic Karakalpak Republican Department of the Central Bank of the Republic of Uzbekistan and 13 branches and offices of 10 Data on macroeconomic indices in breakdown byraionsare not provided. It is stipulated by the established form of reporting for statistics bodies. АНТ/ Ekspert Fikri Page64 of221 commercial banks of the Republic of Uzbekistan actively participating in financial security of business development operate: Department of National Bank of the Republic of Uzbekistan in the Republic of Karakalpakstan, Promstroibank, Pakhta-bank, Mikrocredit-bank, Savdogar- bank, Galla bank, Turan bank, Asaka-bank, Aloka-bank, Ipoteka bank, Halk bank, Universal bank (Nukus mini-bank) and Hamkor bank. In 2010-2011 the volume of credit investments of all banks made 215 049.3 million UZS, grew by 115.8 % in comparison with 2009-2010. In 2010-2011 industrial enterprises of the republic produced production and services in amount of 562 178.7 million UZS, production growth made 109.4 %.in comparison with 2009-2010 In 2010-2011 light industry made production in amount of 4 591.5 million UZS, fuel and energy complex – 65.5 billion UZS (39.6 mln. USD), food industry – 63.4 billion UZS (38.4 mln. USD), flour-and-cereals and mixed-fodder industry – 44.5 billion UZS (26.9 mln. USD), chemical and petrochemical industry – 35.2 billion UZS (21.3 mln. USD). Growth of industrial production in fuel, chemical and petrochemical industry, metallurgy is observed for the last years. Growth in fuel industry is described by increase in production of gas and CLM, in chemical and petrochemical industry by the commissioning of Kungrad soda plant producing new type of production – soda ash. 25 main industrial enterprises operate in the Republic of Karakalpakstan. Among them are: JSC Zarubezhneftegaz GPD Central Asia (production of natural gas), Kungrad soda plant (soda ash), JV Igilik-gaz (kerosene and CLM), Takhiatash thermal power plant (electric power), JSC “Chimbay May” (vegetable oil), OJSC Karakalpakboyan (liquorice), JV Lanekstrakt (processing of liquorice), JSC Beruni eggar (vegetable oil), JSC Nukus vinzavody (wine - vodka products), JV Yuniver (garments), JSC Nukus balyk (preparation of fish), JSC Karakalpak vermi (production of vermiculite). Main indices of industry development of project raions in 2010-2011 are presented in the table below. Table 10 Indices of industry development in project raions for 2010-2011 (million UZS) Volume of including: out of them: Consumer industrial Non- light industry products foodstuff alcohol production foods goods Republic of 562 178,7 163 670,3 87 513,3 27 710,4 48 446,6 4 591,5 Karakalpakstan raions: Beruni 34 607,2 15 905,9 13 295,2 - 2 610,7 40,0 Turtkul 27 143,3 8 039,0 4 921,3 - 3 117,7 350,2 Ellikkala 23 497,9 2 869,0 1 579,6 - 1 289,4 790,5 Source: State Committee on Statistics of the Republic of Uzbekistan In 2010-2011 the volume of industrial production of project raions makes 15 % of total volume of industrial production of the Republic of Karakalpakstanand amounted to 85 248.4 million UZS. The biggest volume of industrial production among project raions is in Beruni raion making 6 %. The volume of industrial production of Turtkul raion makes 5 % and Ellikkala raion – 4 %. АНТ/ Ekspert Fikri Page65 of221 Diagram 4 Volume of industrial production in project raions and Republic of Karakalpakstan in 2010-2011 (%) Source: State Committee on Statistics of the Republic of Uzbekistan 16 % of volume of consumer goods of RK making about 26 813.9 million UZS are the share of consumer goods of project raions. The share of foodstuff of project raions makes 23 % of volume of foodstuff of RK, share of nonfoods – 14 %. The biggest volume of foodstuff, 15 %, falls on Beruni raion. About 5 % is the share of Turtkul raion, and the smallest volume of foodstuff – 2 % falls on Ellikkala raion. At the same time Turtkul raion is the leading in volumes of nonfoods – 6 % of nonfoods of RK. The volume of nonfoods of Beruni raion makes 5 % of nonfoods of RK, Ellikkala raion – 3 %. Project raions have 26 % of total volume of textile goods production of RK; here leading share belongs to Ellikkala raion – 17 % of volume of textile goods production of RK. The volume of textile goods production in Beruni raion makes 1 %. 2.2.2.2 Employment of population In 2010-2011 in the Republic of Karakalpakstan number of economically active population made 627.4 thousand people which corresponded to 38 % of the population of Karakalpakstan. Officially registered unemployment rate reached 7.4 % of economically active population. About 30 % of economically active employed in economy population of the Republic of Karakalpakstan are employed population of project raions. АНТ/ Ekspert Fikri Page66 of221 Number of economically active population in project raions made about 177.2 thousand people which are more than 28 % of economically active population of Karakalpakstan. The employment rate in the project territory reaches 28.3 % of population size at able-bodied age. The biggest share of economically active and employed population is the share of Turtkul raion. In Turkul raion the share of economically active population reached 10.5 % for RK. The share of employed population in economy of the raion made 10.8 %. Economically active population of Beruni raion makes 9.7 % of economically active population of the Republic of Karakalpakstan. The employment rate in the project raion reached 9.8 % of employment in RK. About 8.0% of economically active population and employed population are concentrated in Ellikkala raion. Table 11 Indices of economic activity and employment in project raions in 2010-2011 (thousand people) Republic of Project Beruni raion Turtkul raion Ellikkala raion Karakalpakstan raions Economically active 627,4 177,2 61,1 66,0 50,1 population Number of employed 580,8 165,6 56,7 62,5 46,4 Number of unemployed 46,6 11,6 4,4 3,5 3,7 Source: State Committee on Statistics of the Republic of Uzbekistan A quarter of officially registered unemployed population is the share of project raions which makes 11.4 thousand unemployed population seeking for job and are officially registered in regional labor exchanges. The most favorable rates of population employment are in Turtkul raion which is characterized by the biggest number of economically active and employed population and the smallest indices of number of unemployed population. Number of unemployed makes 3.5 thousand people or 1/3 of unemployed population of three project raions. Relative to economically active population of the raion unemployed population makes about 5.3 %. About 38 % of unemployed population of three project raions is the share of Beruni raion. Relative to economically active population of the raion unemployed population makes 7.2 %. 32 % of unemployed population of project raions seeking for a job is the share of Ellikkala raion. The share of unemployed population of the raion in number of economically active population makes 7.4 %. АНТ/ Ekspert Fikri Page67 of221 Diagram 5 Indices of number of economically active, employed and unemployed population in project raions in 2010-2011 (thousand people) Source: State Committee on Statistics of the Republic of Uzbekistan Diagram above shows that number of unemployed population in project raions does not exceed the index of unemployed population in the Republic of Karakalpakstan as a whole which made 7.4 % during 2010-2011. In project raion about 45 % of unemployed population are men, and about 56 % respectively women. In the structure of employed population in project raions agricultural employees (30 %) and employees of education and culture sector (17 %) prevail. In 2010-2011 8.7 % and 9.2 % of all employees respectively were occupied in the sphere of industry and construction, and their share increases constantly11. In financial, credit and insurance sphere only 1 % of employed population, in housing and communal services – 3 %, in transport and communication sphere - 5 % are occupied. In Beruni, Ellikkala and Turtkul raion the share of employed in agriculture makes about 61.3 % of all employed. 11 According to the data of the Ministry of Labor and Social Protection of Population, 2010-2011. АНТ/ Ekspert Fikri Page68 of221 Diagram 6 Share of population employed in economy by sectors in project raions in 2010-2011, % Source: State Committee on Statistics of the Republic of Uzbekistan 2.2.2.3 Indices of social development Taking into account that the Republic of Karakalpakstan is divided into 14 raion, each raion has, in average, about 4 medical institutions and 22 out-patient and polyclinic establishments. During 2008-2011 in the Republic reduction of number of medical institutions and out-patient and polyclinic establishments is observed. Number of medical institutions decreases in Beruni and Ellikkala raions. Number of out-patient and polyclinic establishments decreases in all three project raions. It is caused by the fact commissioning of new out-patient establishments is carried out more slowly, than liquidation of old type establishments. As a result total number of medical institutions was reduced from 62 in 2008 to 50 by the period of 2010-2011. It is also possible to draw a conclusion on non-uniform distribution of ambulance stations on the territories of project raions and that available out-patient and polyclinic establishments work with overload which negatively affects quality of service. Thus, for example, by 2011 number of medical institutions in Beruni raion was reduced from 3 to 1 per the whole raion, but at the same time number of hospital beds (490) is more than in 4 hospitals in Ellikkala raion (403). More favorable situation is in Turtkul raion where 4 hospitals provide 680 hospital beds. The best situation with out-patient and polyclinic establishments is in Turtkul raion as well where 26 units of out-patient and clinical establishments are concentrated. АНТ/ Ekspert Fikri Page69 of221 As a whole in project raions 18 % of medical institutions and hospital beds, and also 27 % of out-patient and polyclinic establishments are concentrated. 12 Table 12 Number of medical institutions in project raions in 2008-2011 (units) Republic of raions: Karakalpakstan Beruni Turtkul Ellikkala 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 Number of medical 62 53 52 50 3 1 1 1 4 4 4 4 4 5 5 4 institutions Number of beds 8649 8651 8669 8624 490 490 490 490 680 680 680 680 403 413 403 403 Number of out- patient and 313 308 289 301 22 19 20 19 31 31 29 26 26 23 23 24 polyclinic establishments Source: State Committee on Statistics of the Republic of Uzbekistan Thus, access to medical institutions considerably differs in project raions. The most favorable situation with availability of hospital beds and out-patient and polyclinic establishments is in Turtkul raion, the least favorable – in Beruni raion. Morbidity of the population of project raions is presented in the diagram below: Diagram 7 Morbidity of population of project raions for 2010-2011 (%) Source: State Committee on Statistics of the Republic of Uzbekistan 12 Data is provided by the State Committee on Statistics of the Republic of Uzbekistan for the beginning of each year. АНТ/ Ekspert Fikri Page70 of221 According to the data of the diagram above, the main diseases of project raions are diseases of blood, hemopoietic organs and separate abnormalities involving the immune mechanism – about 31.5 % and diseases of respiratory organs – 26.3 %. In the Republic of Karakalpakstan the developed education system which structure in 2010- 2011 included 332 preschool institutions (PSI), 754 day secondary schools, 83 secondary professional educational institutions of all types, 6 higher educational institutions (from them 4 branches of Tashkent higher educational institutions) operates. Number of secondary schools grows, however number of pupils decreases because of reduction of pupils of 10-11 grades which allows increasing coverage by education in one shift. According to the National program of education number of secondary professional educational institutions up to 76 professional colleges and 7 academic lyceums increases fast, and secondary professional educational institutions of the project zone make 27.7 % of total secondary professional educational institutions of the Republic of Karakalpakstan. Total number of educational institutions makes 26 % of RK educational institutions. 9 % of RK educational institutions operate in Beruni and Turtkul raions each, in Ellikkala – 8 %. The biggest number of preschool institutions is concentrated in Beruni raion - 11 % of RK preschool institutions. In Turtkul and Ellikkala raions 7 % of RK preschool institutions operate. Total share of preschool institutions of project raions makes 25 % of RK preschool institutions. Number of school educational institutions prevails in Ellikkala raion – 10 % of RK school educational institutions. In Beruni raion about 9 % of RK school educational institutions, in Turtkul – 8 % respectively are concentrated. Identical number of secondary professional educational institutions – 10 % of number of RK secondary professional educational institutions operates in Turtkul and Beruni raions, in Ellikkala raion 8 % of secondary professional educational institutions are concentrated. Table 13 Number of educational institutions in project raions for 2010-2011 (units) Republic of raions: Karakalpakstan Beruni Turtkul Ellikkala Number of preschools 332 35 24 24 Number of schools 754 67 63 72 Secondary professional 83 8 8 7 educational institutions Higher educational 6 - - - institutions Source: State Committee on Statistics of the Republic of Uzbekistan In project raions construction of new houses is carried out. In 2010 commissioning of houses in project raions made 141.5 thousand m2 with total amount of about 27083.1 million UZS. For comparison for 9 months of 2011 commissioning of houses made 127.9 thousand m2 at cost of 31204.9 million UZS. АНТ/ Ekspert Fikri Page71 of221 2 Table 14 Commissioning of houses in project raions for 2010 – January-September 2011 (thou. m / million UZS) 2010 January-September 2011 2 2 thou.m million UZS thou.m million UZS Republic of 452,8 86 969,9 424,3 100 832,0 Karakalpakstan raions: Beruni 44,1 8052,6 38,0 9401,6 Turtkul 48,8 9562,3 40,1 9503,9 Ellikkala 48,6 9468,2 49,8 12299,4 Source: State Committee on Statistics of the Republic of Uzbekistan The biggest volume of commissioning of houses is the share of Ellikkala raion – 12 % of commissioning volume for RK for 9 months of 2011. In Turtkul and Beruni raions the volume of commissioning of houses makes 9 % respectively. Diagram 8 Commissionning of houses in project raions for 9 months of 2011 (%) Source: State Committee on Statistics of the Republic of Uzbekistan Indices of development of municipal infrastructure in project raions reflect condition of accomplishment of life of the population in project raions. АНТ/ Ekspert Fikri Page72 of221 Table 15 Indices of municipal infrastructure development in project raions for the period of 2010- 2011, % Beruni Turtkul Ellikkala Area of housing stock equipped with, in percentage: Water supply 34,2 56,0 98,0 Sewerage 2,2 3,9 0,2 Central heating 10,4 44,1 2,9 Hot water supply 0,0 0,0 0,1 Bathrooms 1,3 2,5 0,1 Natural gas 98,2 99,6 99,8 Source: State Committee on Statistics of the Republic of Uzbekistan The indices presented in the table above, reflect almost complete gasification of housing stock of project raions. Tap water is provided mostly in housing stocks of Ellikkala raion – 98.0 %. In Beruni raion water supply system is provided only in a third of all housing stock of the raion. In Turtkul raion water supply system is provided in a half of operating housing stock of the raion. Project raions are not provided with the sewerage, hot water supply and bathrooms. 2.2.2.4 Agriculture The government of Uzbekistan substantially supervises agriculture in the Republic of Karakalpakstan. Plans of seasonal cultivation of crops are prepared at farms level, then are studied and completed taking into account forecasted water supply and production of strategic crops required under the state quota, established by MAWR in the centralized order, including cotton, wheat and rice. Nationally cotton is very important crop for receiving foreign currency. Grain is important for self- reliance (national strategic objective). Forage crops are necessary for animal husbandry: silage corn is cultivated as repeated crop after grain. Vegetables and fruit are cultivated, mainly for the local use. Dynamics of increase in cultivated areas under the main sowing crops during the last five years has positive character. Cultivated areas increase in three project raions. The share of cultivated areas under the main sowing crops for the considered period in project raions relative to indices of RK varies from year to year. The biggest share of cultivated areas under the main sowing crops is the share of Turtkul raion. In 2010-2011 the volume of cultivated areas under the main sowing crops in this raion made 9 % relative to RK indices. In Ellikkala raion the volume of cultivated areas reached 8 %, in Beruni raion – 7 % relative to RK indices. АНТ/ Ekspert Fikri Page73 of221 Table 16 Cultivated area of main crops in project raions fort he period 2006 – ten months of 2011.13 (a) Area of main crops (ha) Year Total by project Republic of Beruni Turtkul Ellikkala raions Karakalpakstan 2006 20 246 20 130 20 463 60 839 252 775 2007 20 194 22 058 21 306 63 558 234 658 2008 21 450 22 996 21 508 65 954 227 713 2009 24 049 23 417 22 787 70 253 202 462 2010 24 131 27 116 29 596 77 843 262 864 th 10 month 20 045 22 748 21 671 64 464 265 750 2011 2011 forecast 26 727 30 331 28 895 85 953 354 333 Source: State Committee on Statistics of the Republic of Uzbekistan In general the total area of land resources of South Karakalpakstan makes 1 682 411 ha. About 250 650 ha (about 15 %) are considered suitable for irrigation, from them 97,917 ha (about 40 % of 250 650 ha) MAWR refers now to irrigated lands (see the table below). However in recent years the considerable part was infertile. Another part is pastures, sand and beats of rocks. Table 17 Irrigated area of project territory for 2010-2011 Total area of the raion Irrigated area Share of total Raion Area Share Area Share area of the (ha) (%) (ha) (%) raion (%) Beruni 393 059 23,4% 33 115 33,8% 8,4% Ellikkala 541 920 32,2% 33 051 33,8% 6,1% Turtkul 747 432 44,4% 31 751 32,4% 4,2% Total 1 682 411 100% 97 917 100% 5,8% Source: Data provided by raion Khokimiyats Table data above show that the share of irrigated area of project raions makes only 5.8 % of total area of raions. In Beruni raion the irrigated area does not exceed 8.4 %, in Turtkul raion – 6.1 %, in Ellikkala – 4.2 %. Difficulty of determination of the actual area, now in use for irrigated agriculture in South Karakalpakstan, is caused by the following reasons:  Discrepancies between cultivated area and the physical irrigated area are possible as double account, in case two crops are cultivated in the field can be carried out;  Some records concern only the lands sowed according to official system of the state order with the main or commercial crops, and do not include the areas sowed with private crops, for example, fodder or for own consumption.  Determination of the irrigated and suitable for irrigation area is not always accurate. 13 Cotton, grain, rice, others grain, lucerne, others fodder, vegetables and potatoes, grown up on the land included in official statistics. АНТ/ Ekspert Fikri Page74 of221  Various sources of data classify differently fallows or waste lands. Land can be irrigated (in sense of existence of operating infrastructure), but not sowed because of high level of ground waters, salinity, lack of water in tail-end of the system, or simply left fallow within crop rotation (though the last occurs seldom). Changes of a ratio of indices of total area of project raions and the irrigated area in 2010-2011 relative to indices of 2000 are presented in the table below: Table 18 Indices of total and irrigated area in project raions in 2010-2011 relative to the indices in 2000 Non- Total Raion Year Area (ha) Cultivated area Orchards cultivated Pastures Tamarka area area Irrigated 33081 29019 1019 371 472 n/a 2000 Total 393059 29019 1019 371 294478 n/a Beruni 2010/ Irrigated 33115 23592 596 662 472 3160 2011 Total 393059 25853 1067 662 294478 3160 Irrigated 33994 28490 1293 380 573 n/a 2000 Total 541920 28490 1293 380 357482 n/a Ellikkala 2010/ Irrigated 33051 24099 509 420 573 3376 2011 Total 541920 25051 924 420 357463 3376 Irrigated 31977 26629 825 613 927 n/a 2000 Total 747432 26629 825 613 578869 n/a Turtkul 2010/ Irrigated 31751 22948 307 635 927 4472 2011 Total 747432 24202 774 14949 578869 4472 Irrigated 99052 84138 3137 1364 1972 n/a 2000 Total 1682411 84138 3137 1364 1230829 n/a Total 2010/ Irrigated 97917 70639 1412 1717 1972 11008 2011 Total 1682411 75106 2765 16031 1230810 11008 Source: DIWIP; SKWRMIP; Feasibility report; data for 2010/2011 is provided by Khokimiyats Main sectors of agriculture of the Republic of Karakalpakstan are grain production (production of wheat and raw rice), cotton production, animal husbandry and silkworm breeding. Cotton remains the main crop of Karakalpakstan, including project raions. Cultivated area of cotton which in previous years was decreased as a whole, for last five years became rather steady concerning the total area under crops. The share of wheat, potatoes and vegetables is insignificant. Rice and cucurbits occupy the most part of cultivated lands in Karakalpakstan, including in project raions, than as a whole in Uzbekistan. In the last decade Uzbekistan takes measures for cultivation of winter wheat for the reasons of food security. In South Karakalpakstan, considering rather cold winters, alternating cultivation of winter wheat and cotton on the same fields is problematic. Nevertheless, on the one hand, cultivation of winter wheat affected increases of demand for water for the production purposes though, on the other hand, probably, the need for winter washing of fields decreased. In project raions sometimes there were additional areas with other crops, including rice. Their exact registration is complicated, as: АНТ/ Ekspert Fikri Page75 of221  Part of rice could be grown up in part-time farms which usually with a view of water resources management are considered as vegerable-growing plots;  Part of rice could be grown up on lands with very high level of ground waters and considered unsuitable for cultivation of state crops;  Some crops could be cultivated on the lands relating to not irrigated, for example, right-of-ways of roads, canals or collectors;  Permission for sowing of rice can be given by the end of vegetative season, only when it becomes clear that there is enough water for other crops. Therefore rice sowing is not always reflected in the plan as it was already late. These factors complicate exact determination of the area sowed with rice. For 2010-2011 the volume of gross production of agriculture of RK makes about 482 billion UZS. The share of project raions by this index makes 27 % of RK index. Among project raions the biggest share of volume of gross production of agriculture of RK is the share of Beruni raion and reaches 14 % of RK indices. Gross harvesting in the raion in 2010- 2011 made 8 % of gross harvesting in RK. At the biggest gross harvesting among project raions of 8.9 % the volume of gross production of agriculture of Ellikkala raion makes 13 %. The smallest share of volume of gross production of agriculture among project raions is the share of Turtkul raion and makes 12 %. Index of gross harvesting is around 8 %. In spite of the fact that about 98 % of agricultural production is the share of non-state sector, productivity of irrigated lands remains at the lowest level. Thus efficiency of agriculture (potatoes, vegetables and other crops) in private and dekhkan farms is much higher, than in official commodity farms, and the share of the crops first in such production is very high. Private and dekhkan farms dominate in production of potatoes, vegetables, milk, meat and other agricultural goods. АНТ/ Ekspert Fikri Page76 of221 Table 19 Indices of agriculture of project raions for 2010-2011 Republic of Beruni raion Turtkul raion Ellikkala raion Karakalpakstan Agriculture production, in 482 353,9 66 853,3 59 706,6 65 061,2 current prices, million UZS including production: crop production 256822,8 30586,4 30352,1 30504,6 animal husbandry 225531,1 36266,9 29354,5 34556,6 Area, ha Cultivated area 265750 24131 27116 29596 including grain 102583 6216 6807 5195 potato 5954 485 512 515 vegetables - total 6763 732 913 683 cucurbits - total 5917 634 608 472 fruits - total 4661 858 621 705 grapes 540 88 82 57 Gross harvesting, tonne grain 289360 23947 25820 23198 potato 31114 3708 3715 2764 vegetables - total 134245 14436 16328 18273 cucurbits - total 69530 9347 7400 5174 fruits - total 24728 5029 2413 3021 grapes 3467 778 436 296 Head of cattle and poultry, thou. heads (by the end of the year) Cattle-total 760,1 95,4 80,3 88,6 including: Cows 254,1 27,3 28,4 27,8 Sheep and goats 764,3 58,7 101,3 109 Pigs 3,7 0,5 0,4 0,1 Horses 18,5 0,8 1,6 2,2 Poultry-total 1526,9 260,1 123,4 168,3 Production of animal husbandry Total produced meat, in live 58881 9852 6406 8413 weight, tonne Milk-total, tonne 183554 23052 34318 33239 Eggs–total, thou. units 45998 15517 1617 3240 Source: State Committee on Statistics of the Republic of Uzbekistan Animal husbandry production in RK for 2010-2011 makes 288 443 tonnes. The share of project raions makes about 47 %. The biggest share of production of animal husbandry among project raions is the share of Beruni raion – 17 %. Beruni raion has the biggest index of heads of cattle and poultry among three project raions – about 16 % of indices of heads of cattle and poultry of RK. АНТ/ Ekspert Fikri Page77 of221 The share of production of animal husbandry in Turtkul raion makes 15 %. This raion has the smallest index of heads of cattle and poultry among three project raions and does not exceed 9 % of heads of cattle and poultry of RK. Share of production of animal husbandry in Ellikkala raion is 16 %. In Ellikkala raion the quantity of heads of cattle and poultry relative to indices of RK makes 11 %. Among three project raions the prevailing share of production is the share of dairy production, in particular milk; and the biggest share of crops production is the share of grain (after cotton which is the main crop of raions). The main problem of agriculture is poor quality of soils in project raions. Considering meliorative condition of lands of project raions one can say that the main feature of soils in this region is sandy loam with inclusions of soils with high content of sand, lying from the North to the South. Closer to Amu Darya the soils irrigated since ancient times, are often more silty which testifies to the river deposits being accumulated during many years. In the east, especially on the irrigated lands developed in 1970th in the northeast, soils are strongly sandy and suffer from covering with dune sands. Long-term plowing to the same depth, especially in heavy soils, led to formation of condensed layer in depth. If hard layer is not destroyed by deep plowing or deep loosening, it negatively affects quality of soil and reduces penetration of roots of plants, thus limiting access of plants to water and nutrients. Previously deep plowing of soil to the depth of 0.7 – 0.8 m was systematically carried out in regular periods, depending on mechanical structure of the soil. Now such plowing is not carried out. Salinity of soil is, mainly, widespread in South Karakalpakstan. Higher level of salinity of soil was observed in the lower part of irrigation system where ground waters lay at the depth of 1.0- 1.5 m, and the condition of drainage was unsatisfactory. This situation was improved due to DIWIP. In the head (southern) part of irrigation system and along irrigation canals irrigated lands have low levels of salinity. Karakalpak Hydro-Geological Expedition annually makes approximate balance of salts in salt inflow with irrigational water and drainage flows. Accuracy of such calculations is limited to difficulties in measurement of water consumption and that small discrepancies in concentration can considerably affect the calculated mass of salt. Hence, it is assumed that in all regions of South Karakalpakstan inflow and removal of salts are approximately balanced at the moment. Salinity of soils reduces productivity of cotton by 50 %; productivity of wheat - by 15-70 % over the whole range of salinization. Decrease of level of ground waters is also important for decrease in salinity of lands of project raions. Decrease in levels of ground waters creates preconditions for desalination of irrigated lands, prevention of re-salinization of soils and, therefore, increased productivity of irrigated agriculture in middle and long-term prospect. АНТ/ Ekspert Fikri Page78 of221 Today the area of lands with level of ground waters within 1.5 m from earth level (on average annual basis) decreased approximately by 70 %: from a third of irrigated area to approximately one tenth. АНТ/ Ekspert Fikri Page79 of221 CHAPTER IIIOUTCOMES OF SOCIAL ASSESSMENT While implementation of tasks assigned by the Terms of Reference for Consultant for social assessment, the following stages of the survey were carried out:  Focus-group discussions – 12 groups;  HH survey – interviewing of 950 HH;  In-depth semi-structured interviews – 70 experts and interested persons;  Public meetings/ consultations and seminars. Survey was implemented in three project raions – Beruni, Turtkul and Ellikkala. Detailed information on the Profile of interviewed respondents and interested persons participated in conducted surveys is provided in the Annex. 3.1 GENERAL DATA ON HH SURVEY: 950 respondents took part in the survey out of which absolute majority of respondents (100%) were heads of HH. This condition allowed to obtain maximum information by tools developed for the interviews. Age characteristics Age characteristic of interviewed respondents shows that survey covered groups of population from 18 to 51 years and older: Diagram 9 Age characteristic of interviewed respondents Source: Outcomes of HH survey АНТ/ Ekspert Fikri Page80 of221 Most part of interviewed respondents refers to the heads of HH at the age of 41 to 50 years. Gender indices Gender characteristic of obtained results has irregular nature which is explained by the fact that majority of HH heads is men:  97% - men;  3% - women. Within the carried-out survey it was planned to interview heads of leasehold farms, dekhkan farms and HH with homestead land plots. In the course of carrying out survey and the subsequent processing of the results of survey absolute majority of interviewed respondents is made by heads of leasehold farms. However taking into account that leasehold farms are formed by merger of small-scale dekhkan farms, dekhkan farms are today part of large leasehold farm and call themselves as "leasehold farms". Thus, data on the interviewed respondents is represented by heads of leasehold and dekhkan farms. Marital status of respondents:  Almost absolute majority of respondents are officially married – 91.68%;  Part of divorced respondents makes 1.26%;  2.63% of respondents are in religious marriage “nikokh”;  3.26% - widower/widow.  Less than 1% of respondents are not married. Indices of achieved level of education of respondents: Diagram 10 Level of education of interviewed respondents Source: Outcomes of HH survey АНТ/ Ekspert Fikri Page81 of221 Considering the obtained results, the main part of respondents has education level above the secondary – 75.87 %. The most part of respondents with education level above the secondary is in Ellikkala raion – 83.52 % of respondents. Welfare of respondents by self-estimation: Respondents estimated their welfare by the following selection of statements. HH distribution by selections looks as follows: Diagram 11 Welfare of respondents by self-estimation Source: Outcomes of HH survey By the results of survey 1/4 of respondents (20.84 %) refers to vulnerable groups of population. Welfare of average prosperity of the population is noted by 45.79 % of respondents. 29.26 % of respondents note welfare of their HH as above the average. Changes in welfare of HH during the last five years (by self-estimation) look as follows: Improvement of welfare of HH is noted by 45.47 % of respondents against 45.16 % of respondents which declare no welfare changes during the last five years. АНТ/ Ekspert Fikri Page82 of221 Diagram 12 Change of welfare of respondents during the last five years: Source: Outcomes of HH survey Opinions of participants of in-depth interviews and FGD showed that income level of the population has increased in the last 5 years, – especially because of money remittances from abroad where HH members are working. HHs-F5, Ellikkala, city. As compared with 2005, the population’s incomes have increased by approximately 50%. HHs-F8, Ellikkala, city. There are more and more cars these days, beautiful houses with all the amenities. People can afford to buy computers now, which was not common in 2005. HHs-F6, Ellikkala, city. In the past, many parents could not afford to hire a tutor for their children or pay for additional English lessons. Entrepreneur/farmer2, Ellikkala. 10 year ago tables were half empty during wedding ceremonies, while now there’s not even one empty space on the tables, - they are full with meals. Thus, one may say that people live much better. Farmer fish farmer, Beruni. Each family has 2-3 members who work in Russia. Each month they are receiving 500 dollars from them. There are very few of those here who earn their income working on their land plots or from animals. Farmer, Kaltaminor c., Turtkul. Farmers’ incomes have been dropping because prices for everything are growing year after year but prices for their products are increasing very insignificantly. АНТ/ Ekspert Fikri Page83 of221 The increase in incomes can be rather seen in villages than in the cities. HHs-F6, Ellikkala, village. Life in a village is easier these days than in a city because there are no jobs in the cities; while in a village everybody has a plot of land. In the past, we didn’t grow anything on our household plots; - we used to buy all the products in the city market. However, these days we all are growing vegetables and fruits on our plots. Nominally and in monetary units, incomes from wages in raion HHs have been growing (approximately by 20% per year), but actually this growth is being nullified by the inflation (approximately 25% by the CPI) and is dropping due to the difficulties in access to cash when being paid wages. HHs-F1, Beruni. Prices are growing while real wages are falling. HHs’ expenses for food are higher than the budget from wages. HHs-F4, Ellikkala, city. Prices are growing as wages are growing. HHs-F1, Ellikkala, city. That is why you cannot say that prices in the past were lower. Farmer, Kaltaminor c., Turtkul. Real earnings of the population in the past 5 years have dropped by, approximately, 20-30%, if you do not take into consideration remittances from relatives working abroad. Farmers cannot provide decent wages to their workers because their income is not high enough; besides, there are limitations on the wages fund in loans for produce for the government; and there are too many workers. F7, Beruni, city. It was easier in the past because there were no credit cards. We used to buy everything for cash. While now we almost do not receive cash. All our wages are being transferred to cards (debit bank cards). For example, if you are buying a sack of flour for cash it would cost 67,000 Soums, but with a card it’s 75,000 Soums. That is why we are losing 15% of our income from wages on all these purchases. The main criterion for a HH’s decent income is affordability of staple foods. HHs-F6, Beruni, city. For our people the main criterion of a good income is consumption of meat. Our staple foods are meat, bread, oil and flour. If there are enough of these products our people are quite happy. Structure of employment: In employment structure the main part of respondents noted that members of HH who are bringing the greatest income, are private entrepreneurs – 42.42 % and employees of private companies – 39.79 %. The majority of private entrepreneurs is in Beruni raion – 74.07 % of respondents. In Ellikkala and Turtkul raions the prevailing part of respondents noted that members of HH bringing the greatest income, are employees of private companies – 51.53 % and 57.30 % respectively. АНТ/ Ekspert Fikri Page84 of221 Diagram 13 Employment structure of HH member bringing the greatest income Source: Outcomes of HH survey The main part of interviewed HH makes many-generation families. In 78.95 % of interviewed HH more than 6 people live in one HH. The greatest part of many-generation families is in Turtkul raion – 82.17 % of HH. In Beruni raion the part of such families makes 75.93 % of HH, in Ellikkala – 78.28 % of HH. For project raions, as well as for the whole Republic of Uzbekistan, the tendency of average child families in which the number of children does not exceed 2-3 is typical. 56.21 % of respondents note that in their HH number of children – 1-2 at the age from 7 to 17 years and 46.0 % of HH – 1-2 children under 6 years. 3.2 CURRENT STATE OF PROJECT RAIONS Population of project raions faces serious demographic changes which are characterized by the actual reduction of population in raions. In spite of the fact that official data of statistics reflect dynamics of positive natality under the condition of negative balance of population migration, according to participants of FGD and in-depth interviews, number of children and birth rate in raions decreases. Mahalla representative, Turtkul. Women are now complaining that they have to bring their kids to the 1st class to remote schools. In some rural schools they couldn’t start the 1st class because they didn’t have enough children. It turned out that starting with 2009, the birthrate has dropped significantly in our rural area. In raions high level of migration both inside the raions from "desert" zone to "cultivated", and abroad the country is noted. As a result, population grows in villages and the regional cities where level of irrigation is higher, than in those, from where population migrates. It is caused by АНТ/ Ekspert Fikri Page85 of221 insufficient level of irrigation, employment, income and poor quality of services of infrastructure (gas, electricity and so forth). RAC Chairman, Turtkul. The housing estate Yonboshkala is the largest housing estate in the tail-end of the canal, but water does not reach this place. The number of population in Yonboshkala has dropped sharply, - approximately, by 50%, - they all have moved closer to water. If the problem of water supply hasn’t been solved it’s likely that villages will simply disappear in these places. People have been moving closer to the Bogyap canal from the desert zone. When there was enough water, the population’s main income was coming from the desert zone; - people would go there in the summer coming back in the autumn. Farmer F3, Turtkul, Pakhtaarna c. In the recent years many people from our village left for Kazakhstan. There are 400 HH in our village. Previously there were twice more. Farmer, gardener, stock-breeder, Turtkul. Because of shortage of water, they do not allow us to grow rice. In the past, people were engaged in rice-growing. They only support cotton growing but it’s not profitable, that is why people are leaving. Project raions are characterized by high migration of population outside the country, especially young men (aged 16-45) and some of the women in search of employment. The main consequence of such high migration is gradual increase of the share of women, children and elderly people in the structure of the population and decrease of the share of men in labor market, especially decrease of qualified workers, machine operators and technicians. Farmer, gardener, Turtkul. Most of the population from the Kukcha housing estate has moved to Kazakhstan because of the lack of water and high salinity of lands. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. Many people are leaving these days. Farmer and WUA leader, Turtkul. All of our young men are in Russia. The share of children, adults and elderly has been increasing. Farmer, Ellikkala. In the last 2-3 years, it’s mostly women who are working in the villages instead of men. Entrepreneur4, Ellikkala. About 50% of men are now working outside Uzbekistan. Most of our population is women and children. Only cotton growing is being supported here, but it’s not profitable, that is why people are leaving. Farmer, Turtkul, Buston canal. 80% of young men have left in search of work. There are very few men left here. RAC Chairman, Turtkul. About 50% of our men are abroad now, among them experts, tractor drivers. АНТ/ Ekspert Fikri Page86 of221 Farmer, Kaltaminor c., Turtkul. Farmers are not able to pay decent wages to their workers. 200,000 Soums (per month) is a miser these days. It’s not enough to support a family. That is why they are leaving for Russia. There are very few skilled workers left here and those who know how to operate farm machinery. Entrepreneur-F, Turtkul. They are being paid at least 500 US dollars a month there; that is why it is impossible to make them stay here for 200,000 soums. Farmer and WUA leader, Turtkul. Only elderly workers or young people without profession have stayed here. Primary problems for the population of project areas are infrastructure and environment problems. It proves to be true by the results of carried-out quantitative survey. According to the survey of HH the primary problems of infrastructure in project areas are the following: Table 20 Primary current problems of HH out of infrastructure and environment in project raions Problem Beruni raion Turtkul raion Ellikkala raion Poor quality of lands (soil salinity) 29,94% 32,03% 31,09% Lack of water for irrigation 29,63% 29,53% 20,22% Poor supply with electricity 1,85% 1,39% 23,97% Delays in planned supplies of water 5,86% 5,29% 5,62% High prices for agrochemicals (fertilizers, pesticides, etc.) 5,56% 4,46% 2,62% High prices for agricultural resources 5,56% 3,06% 3,37% Lack of agricultural machinery 4,63% 3,34% 3,37% Bad quality of maintenance of irrigation and drainage canals, 4,01% 6,96% 3,00% especially at inter-farm level High level of ground waters 3,40% 3,62% 3,00% Lack/absence of private vehicles for transportation of production 2,47% 1,95% 0,75% Lack/absence of funds/financing for procurement of agricultural 2,16% 1,39% 1,12% resources High rate of land plot tenure 1,85% 0,84% 0 Difficulties in obtaining of credits for HH development 1,85% 0,56% 0 Bad condition of irrigation canals 0,31% 2,51% 1,12% Bad condition of drainage canals 0,31% 0,56% 0,37% State regulation of crops quantity 0 1,11% 0,37% State regulation of prices for products 0,31% 0 0 No problems 0,31% 0,84% 0 Source: Outcomes of HH survey Practically a third of respondents in each project raion consider poor quality of lands (soils salinization) as primary current problem of HH. Every third respondent of Beruni and Turtkul raions mention also a problem of lack of water for irrigation. In Ellikkala raion this problem is noted by every fourth respondent. АНТ/ Ekspert Fikri Page87 of221 Results of in-depth interviews and FGD also have shown that high risks of production and loss of incomes are caused by risks of water supplies for irrigation and reduction of irrigated areas: Farmer, fruit/vegetable grower, Kazakh-yab c. Each HH has several apple trees. Apples fall down and rot on the earth; they are used to feed cattle. Productivity of tomatoes is very high in our raion in the season. We could manufacture tomato paste or pickles, however, this year you’ve got a good yield but the next year it’s not so good. Farmer, fruit/vegetable grower, Beruni. People are leaving because this year we had no water in our canal. Important problem of Turtkul raion is bad supply with electricity. In Beruni and Ellikkala raions the problem of bad supply with electricity is noted by no more than 2 % of respondents. According to results of FGD and in-depth interviews primary problem is bad gas supply, typical for all three project raions. Lack of gas and/or electricity is compensated by firewood for which trees are cut-down and which cost rather expensive. Several women from HHs, Beruni, village. They should first of all supply gas to us! It’s our biggest headache! The second problem is electricity. The third is good water. All the rest we will find ourselves. HHs-F 8, HHs, Shimanyab c., Beruni. We have electricity only early in the morning - between 6 and 8-9 a.m. In the afternoon, we have it between 12 and 2 p.m. in the evening, we have electricity between 6 p.m. and midnight. Even if you don’t have indebtedness they are cutting off electricity to everybody. Farmer, Amudarya c., Ellikkala. Periods when they supply electricity to us have cut down by 60% in the last 5 years. Irrigator-F, Turtkul. They are cutting off electricity to us because of overconsumption of electricity. Many HHs are cooking meals on electric stoves. Some who have small kids use electric heaters. We always have these problems in the autumn, winter and spring. HHs-F, Beruni. We would buy a cart of firewood these days for 450-500 thou. soums. Big families would usually buy a cart twice a year for almost 1 million. However, we would rather pay this money for gas. HHs-F9, Turtkul, village. We are heating only one room with firewood. If children are running out to the other room we are telling them to go back to the warm room not to catch cold. Minor problems of the population of project raions are the following: АНТ/ Ekspert Fikri Page88 of221 Table 21Minor current problems of HH out of infrastructure and environment in project raions Problem Beruni raion Turtkul raion Ellikkala raion Poor quality of lands (soils salinity) 25,00% 10,31% 14,61% Lack of water for irrigation 11,42% 11,70% 7,12% High level of groundwaters 10,80% 11,98% 10,49% Delays in planned water supplies 7,41% 8,64% 9,74% Lack of agricultural machinery 9,57% 5,01% 6,74% Bad supply with electricity 1,23% 2,79% 7,87% Bad quality of maintenance of irrigation and drainage canals 5,56% 11,14% 5,99% especially at inter-farm level High prices for agrochemicals (fertilizers, pesticides, etc.) 4,63% 11,98% 10,86% High prices for agricultural products 4,94% 2,51% 4,87% No problems 4,94% 6,69% 2,25% State regulation of prices for production 1,54% 2,23% 0 State regulation of crops quantity 2,16% 1,95% 4,12% Bad condition of irrigation canals 3,40% 1,67% 0,75% Lack/absence of private vehicles for transportation of products 1,23% 0,84% 3,75% High rates of land tenure 1,23% 1,95% 1,00% Difficulties with obtaining credits for development of HH 1,85% 1,95% 3,37% Bad condition of drainage canals 0,62% 1,11% 2,25% Lack/absence of funds/financing for procurement of agricultural 0,31% 2,51% 1,87% resources Source: Outcomes of HH survey Every fourth respondent of Beruni raion notes that the most important by significance problem on the second place is also quality of lands. Poor quality of lands in Turtkul raion is the second problem by importance for 10.31 % of respondents and for 14.61 % of respondents in Ellikkala raion. Almost every ninth respondent of Beruni and Turtkul raion note lack of water for irrigation as the second by importance problem. Thus in Ellikkala raion this second by importance problem was noted by every 14th respondent. In project raions highly important problem is high level of ground waters. This problem is noted by every tenth respondent in Ellikkala and Beruni raions and every ninth respondent in Turtkul raion. Among noted problems respondents also called problems with delays in planned supply of water, lack of agricultural machinery and bad supply of electricity. The third place by importance of the current problems of project raions, according to the respondents, is occupied by the following: АНТ/ Ekspert Fikri Page89 of221 Table 22 Current HH problems out of infrastructure and environment in project raions on the third place by importance Problem Beruni raion Turtkul raion Ellikkala raion Lack of water for irrigation 14,20% 11,14% 8,61% Poor quality of lands (soils salinity) 11,11% 4,74% 11,24% High prices for agrochemicals (fertilizers, pesticides, etc.) 6,17% 12,53% 5,24% Lack of agricultural machinery 6,48% 5,01% 12,36% Lack/absence of funds/financing for procurement of agricultural 5,25% 11,70% 4,12% resources High level of ground waters 6,79% 5,85% 9,36% High prices for agricultural resources 8,64% 3,90% 7,87% Bad supply with electricity 5,56% 5,85% 8,61% Bad quality of irrigation and drainage canals especially at inter- 4,94% 7,24% 3,75% farm level Delays in planned water supply 5,56% 4,18% 4,87% Difficulties in obtaining of credits for development of HH 3,40% 3,90% 4,87% Bad condition of irrigation canals 4,63% 1,11% 1,12% No problems 0,62% 4,46% 3,00% Lack/absence of private vehicles for transportation of products 2,47% 0,84% 4,87% State regulation of crops quantity 2,47% 1,95% 2,25% State regulation of prices for products 1,54% 2,23% 1,87% High rates for land tenure 0,93% 1,39% 2,62% Bad condition of drainage canals 0,62% 2,23% 0,75% Source: outcomes of HH survey Lack of water for irrigation is the third problem by importance for every seventh respondent in Beruni raion, every ninth in Turtkul raion and every twelfth respondent in Ellikkala raion. Poor quality of lands is noted by every twelfth respondent of Beruni and Ellikkala raions. Every eighth respondent of Turtkul raion mentions importance of problem of high prices for agrochemicals and every ninth - lack/absence of funds/financings for procurement of agricultural resources. Lack of agricultural machinery is mentioned by every eighth respondent of Ellikkala raion. Considering the results of survey it is possible to consider the most important current problems of the project areas the following: v. Poor quality of lands (soils salinization); vi. Lack of water for irrigation; vii. Bad supply of electricity; viii. High level of ground waters. In production and cultivation of animal produce in project raions farms also face problems of poor quality of lands – soils salinity which has negative impact on lands for pasture of cattle. АНТ/ Ekspert Fikri Page90 of221 In Beruni raion this problem is mentioned by every fourth interviewed farm. In Ellikkala and Turtkul raions problem of poor quality of lands for pasture of cattle is less important in comparison with Beruni raion. In Ellikkala raion the problem of poor quality of lands for cattle pasture is noted by every sixth farm, in Turtkul raion – every seventh interviewed farm. Every fifth farm of Beruni raion tells about problem of lack of fodder for cattle. As a whole in Turtkul raion the main part of farms (40.67 %) note lack of problems of production and cultivation of animal produce. In Ellikkala raion the main part of interviewed farms find it difficult to note problem of production and cultivation of animal produce – 62.17 % of respondents. Table 23 Main problems of production/cultivation of animal produce in project raions Problem Beruni raion Turtkul raion Ellikkala raion Poor quality of lands for cattle pasture (soils salinity) 24,07% 15,60% 17,60% Lack of fodder for cattle 20,68% 9,47% 5,24% No problems 18,52% 40,67% 1,87% Low-quality vaccination of cattle 4,01% 5,01% 2,25% High rate of morbidity 4,63% 2,79% 5,24% High death rate of cattle 5,25% 1,95% 1,12% Lack of drinking water 4,94% 3,34% 1,87% Difficult to answer 14,51% 18,66% 62,17% Other problems 3,40% 2,51% 2,62% Source: Outcomes of HH survey The most important improvements which are necessary for farms for efficient work are provided in the table below: Table 24 Necessary improvements for efficient work of farms in project raions Required improvement Beruni raion Turtkul raion Ellikkala raion Improve quality of soils 63,27% 64,62% 59,93% Improve irrigation network 54,63% 44,85% 38,95% Improve access to water resources 43,83% 42,06% 34,83% Reduce tax burden 33,64% 43,18% 42,32% Allow farmers to decide themselves crops for cultivation 38,27% 37,88% 44,94% Improve access to CLM (combustive-lubricating 37,96% 40,11% 37,08% materials) Improve access to fertilizers 35,49% 38,72% 30,71% Facilitate procurement of machinery 31,48% 22,01% 30,34% Simplify access and decrease interest rate for credits 26,23% 25,91% 37,45% Increase farm size 21,91% 15,04% 18,35% Improve rights protection for land use and land tenure 16,05% 24,51% 19,48% Simplify administrative procedures for organization of 12,65% 21,17% 29,59% business activity Reduce state regulation of prices for production 16,36% 13,09% 25,47% Official permission for repeated cropping 11,42% 16,16% 34,08% Training to increase farm productivity 4,32% 6,13% 17,23% Source: Outcomes of HH survey АНТ/ Ekspert Fikri Page91 of221 Taking into consideration specified main problems of infrastructure and environment in project raions the majority of respondents note that the following improvements are necessary for more effective work of their farms: iv. Improvement of lands quality – 62.84% of interviewed farms in three project raions; v. Improvement of operation of irrigation network – 46.53% of interviewed farms in three project raions; vi. Improvement of access to water resources – 40.63%; Interviewed farms also noted minor improvements required for increase of efficient performance of farms:  Reduction of tax burden;  Allow farmers to decide themselves crops for cultivation;  Improvement of access to CLM (combustive-lubricating materials);  Improvement of access to fertilizers;  Facilitation of purchase of machinery;  Simplification of access and decrease of interest rate for credits and others. Among the important improvements received by the population of project raions during the last five years participants of FGD noted improvement of supply with tap water in raions: HHs-F10, Ellikkala, city. The supply of drinking water has improved. Piped water is being delivered even to the remotest settlements. HHs-F4, Ellikkala, city. Five years ago there were almost no water pipes in rural areas. Now piped water is being supplied to approximately 70% of the HHs. In general, opinions of participants of in-depth interviews and FGD confirm existence of the specified current problems, typical for project areas, and also necessary improvements for more effective work of farms. However along with the specified problems, according to participants, an important problem is also unemployment and lack of male labor in the raions. In the labor market surplus supply from women grows who are compelled to work for low payment, including carrying out physically hard manual and day or seasonal work – cultivation of cotton and for work which was considered earlier as male, for example, works at irrigation system and drainage system. PE-F, greenhouses, Turtkul. I feel sorry for women when I shake hands with them, - I can feel how rough their hands are from hard work. Farmer-F, Beruni, city. In the past, women were ashamed to go out for work. HHs-F6, Beruni, city. These days women agree to work as ‘mardikors’ (odd-jobbers). In the past it was men who did that.. Chairman of RAC, Turtkul. Earlier the farmer, the owner of 20 hectares of lands, managed with the members of the family. And now the area of land of the farmer reaches 100 ha АНТ/ Ekspert Fikri Page92 of221 and there are not enough workers for these 100 ha of land. Productivity falls because of lack of labor. F-9, Beruni, village. For collecting of one kg of cotton we were given from 150 soums this year. Payment is scanty and in addition it is transferred to "plastic" (debit card). Therefore farmers have to involve students from colleges and employees of hospital for weeding and collecting. For such money they work badly. The Government gives maximum 30000 UZS for weeding of 1 ha of cotton to the farmer. Who will weed the whole hectare for such money!? Official statistics states that the unemployment is about 6-7%. However, the population considers employment only as permanent employment but not seasonal, day or odd jobs; that is why they state the following. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. There are a lot of unemployed here these days. There are no jobs, especially in villages. That is why some of them sublease land from farmers - 5-10 hundred square meters. They are growing produce there for me and for themselves. Some of my and their produce they are selling in the bazaar. The unemployed are being offered jobs by the Employment Center and entrepreneurs, but they refuse from such jobs because of low labor payment when transportation and meals expenses are more than salary. Current situation of problems of public health in project raions in 2011 is presented as follows: According to the statistical data on project raions the most widespread diseases are blood diseases, hemopoietic organs, separate abnormalities including the immune mechanism and diseases of respiratory organs. However according to the results of survey every third respondent notices that in 2011 among diseases of adults and children most often were gastroenteric infections. Blood diseases / anemia are mentioned by every sixth respondent in project raions as a whole. Diseases of respiratory system are noted only by every thirteenth respondent in project raions. In spite of the fact that the region of Karakalpakstan, as well as other regions in Uzbekistan, is characterized by the diseases connected with lack of iodine, in project raions such disease are mentioned by every fifth respondent in Turtkul and Ellikkala raions and every sixth – in Beruni raion. Table 25 Diseases of adults and children in project raions in 2011 Name Beruni raion Turtkul raion Ellikkala raion Gastrointestinal 38,89% 30,64% 31,09% Blood diseases/anemia 11,11% 19,50% 13,86% Lack of iodine 14,81% 22,84% 18,73% Genito-urinary and nephrolithiasis, etc. 8,95% 20,89% 15,36% Locomotive (bones, joints) 15,74% 13,37% 17,98% Respiratory system 4,94% 5,85% 13,11% АНТ/ Ekspert Fikri Page93 of221 Cardiovascular 12,96% 18,11% 10,11% No diseases 26,54% 28,97% 22,10% Find difficulty to answer 2,16% 1,11% 0,75% Source: Outcomes of HH survey Among diseases of adults and children in each third interviewed HH of Beruni raion in 2010 there were gastroenteric diseases. Almost every third respondent noted that in 2010 his family members had no diseases. In Turtkul raion almost every third respondent also noted that in 2010 his family members had gastroenteric diseases. A third of respondents also noted absence of the listed diseases among members of their family. In Ellikkala raion almost every third respondent notes absence of diseases among members of the family against every fourth respondent noting that in 2010 there were gastroenteric diseases among his family members. Every tenth respondent mentioned blood diseases among members of families of respondents of Beruni raion. In Turtkul raion almost every fifth family had such disease, and in Ellikkala raion – every ninth family of respondents. Diseases connected with lack of iodine occurred in every seventh family of Beruni raion, in Turtkul – in every fifth, in Ellikkala – in every sixth family of respondents. In every fifth family of Turtkul raion there were diseases of urinogenital system, including nephrolithiasis. In Beruni and Ellikkala raions such disease among members of the family were noted by every twelfth respondent. Every eighth family of respondents of Ellikkala and Turtkul raions in 2010 suffered from diseases of musculoskeletal system. In Beruni raion every sixth family suffered from such disease. Table 26 Diseases of adults and children in interviewed farms of project raions in 2010 Name Beruni raion Turtkul raion Ellikkala raion Gastrointestinal 34,57% 28,13% 26,97% Blood diseases/anemia 9,88% 18,66% 11,61% Lack of iodine 13,58% 22,01% 16,48% Genito-urinary and nephrolithiasis, etc. 8,64% 18,94% 8,24% Locomotive (bones, joints) 15,12% 13,09% 12,73% Respiratory system 4,94% 6,13% 14,61% Cardiovascular 12,04% 16,71% 8,99% No diseases 28,40% 30,64% 29,96% Find difficulty to answer 2,78% 1,11% 1,12% Source: Outcomes of HH survey Among the reasons of the diseases widespread in project raions can be decrease in quality of tap water. АНТ/ Ekspert Fikri Page94 of221 Irrigator-F, Turtkul. The quality of water has deteriorated by approximately 50%. NGO representative, Turtkul. Drinking water is too salty and very hard. That is why many people are suffering from joint diseases, high blood pressure, kidney problems. 3.3 PRODUCTION. INCOME AND EXPENSES 3.3.1 Land tenure All land plots in all types of farms have official contracts of lands tenure/lease concluded by farm enterprise with khokimiyats and HH - with RAC. Sizes of lands, on the average, in the cities and at HH are about 0.06 ha, in rural HH – 0.12-0.20 ha and at farm enterprise – about 50 ha. The ownership right on HHs’ land is perpetual and inheritable. The right of use of land can be forfeited if farm enterprise has not fulfilled its obligations in the improvement of land productivity within 3 years or has not fulfilled the government quota, and also if the right of inheritance for farm enterprise has not been approved by the khokimiyat commission. In general all types of lands can be withdrawn from owners for state and/or public purposes. The law provides in this case different compensations – from cash to provision of other lands. Optimization of farm enterprise sizes continues along with support of their diversification and specialization in production Entrepreneur/farmer2, Ellikkala. In the last 2-3 years, many businesses have been developing – bee-farming, poultry farming, gardening, stock-breeding and fish-farming. In spite of the policy of optimization and support of diversification, productivity of farm enterprise per area of lands has reduced as compared to 2005 by, approximately, 30% due to the shortage of water or its delayed supplies. Productivity of lands is defined by the soil bonitet and without taking into consideration farmers’ opinions. All the farmers stated that the most recent bonitation was conducted in 2006 and that their government quotas are being increased each year, as well as taxes, no matter what the actual soil bonitet is (which is much lower than the official one). Moreover, it is officially (but not actually) being overestimated for reports on improvement of the quality of soil. Farmer, Kaltaminor, Turtkul. The soil bonitet is being estimated once in five years. They came to us from Bukhara and measured it, and since then nobody else has done it. It’s not possible to change this bonitet for 5 years. Farmer-F, Turtkul. One day World Bank experts were working on my land and I asked them to measure the soil bonitet of my plot. They did it and the bonitet was 36 scores. Whereas local experts estimated it as 70. Our yields and taxes and subsidies are linked to these 70 scores, and I cannot meet the quota for these 70 scores. Farmer, Kaltaminor c., Turtkul. In 2010 I had the bonitet of 40, and in 2011 they gave me 45. АНТ/ Ekspert Fikri Page95 of221 Farmer and WUA leader, Turtkul. There is a clause in our agreement for the land use saying that a farmer is obliged to improve the soil of his plot each year, cultivate his lands so that the quality of soil improves and the bonitet increases. One of the obstacles in improvement of the quality of soil is the lack of farmers’ interest in doing that because they are not sure that their lands will not be seized tomorrow, – like it was during the optimization of sizes of farm enterprise plots or in case described below. Farmer – fish-farmer, Beruni. In 1996, I got a land plot and created a fish-farm on the area of 8.5 ha. I paid off all the credits, however, in 2007 my land was handed over to one farmer-cotton grower. Farm enterprises believe that the existing crop rotation (cotton-wheat) is inadequate, and think it necessary to introduce a rotation with rice and alfalfa which would water and enrich soil. Farmer, Turtkul. In recent years yields have been dropping due to the lack of rotation after rice. After rice the yield of cotton used to reach 25 centners while after wheat we hardly have 15 centners. Farm enterprises have different opinions as to the optimization of areas of lands after their withdrawal from small-size farm enterprises (10-20 ha) and handing them over to large farm enterprises (50 ha and more). Farm enterprises believe this size as optimum for efficient management of lands, while larger areas (up to 100 ha and larger) are impossible to be managed more efficiently. Farmer and WUA leader, Turtkul. There was conducted the process of optimization and enlargement of farm enterprises. Say I’ve got 53 ha of lands, and he has 60. If it remains like this it’s OK, because you can get 15-20 centners of wheat and 30-35 centners of cotton per ha. However, if the area of your plot is more than 50-60 ha, you will not be able to use this land more efficiently than a smaller farm enterprise. Farmer-F, Turtkul. If a farmer himself is not able to control the state of his lands, - each of his plots, - he won’t be able to efficiently manage them and yield good crops. Moreover, he will have to sublease them to other farmers, but he will never find anyone who would agree to grow cotton on subleased land. Some farm enterprises believe that reduction of yields in some large farm enterprises can be explained by the fact that small-size farm enterprises were yielding better crops than large ones, since small-size farm enterprises were cultivating their lands and growing crops more efficiently. Farmer, (cotton only), Ellikkala. Yields in small-size farm enterprises per the whole area of lands were higher by 30% than in large farms. It’s because in the past one farmer here had, on average, 10 ha and was achieving the highest productivity on his lands. While now, the least area of farm enterprise’s lands is 60 ha. It’s easier to manage smaller areas. Large farm enterprises are not able to till their lands in time. That is why the yields have dropped. АНТ/ Ekspert Fikri Page96 of221 On the whole, the volumes of production of raw produce from land size by farm enterprises in the raions have been increasing in the last five years, but lower as it was before land restructuring. Nevertheless, the increase in production is likely to stop and/or reduce due to the following reasons:  In farming – lack and risks of timeliness and volumes of water supplies for irrigation;  In stock-breeding – obstacles in the access to quality fodder (high prices or lack of fodder), as well as to pastures and watering places that used to be communal in the past but are now owned by farm enterprise barring access to them for other farm enterprise and DF (HHs); Farmer-Stock-breeder3, Beruni. There are good pastures near our village; however, they have been captured by other farmers who do not allow us to graze our cattle there. Nobody is using these lands. We wanted to mow grass there but the farmers told us to give them 2-3 trusses for each truss for ourselves.  Limited purchasing capacity in the domestic market and low possibilities in promotion ofproduces into the foreign market; 3.3.2 Production of agricultural produce Production of farm produces for the government Farm enterprises are producing 100% of cotton and 50% of wheat for the government and as per the set quotas, as well as some other crops as per agreements with government institutions. Farm enterprises mentioned 3 major problems in their relationships with buyers of their produce grown for the government they are concerned over: i. The cost of cotton and wheat production not being specified at the moment of signing contracts, prices being set arbitrarily by a buyer at the moment of sale at the level which is lower than market prices; ii. Delayed payments for sold cotton, including the markup for the above-target production. Delays in payments are detrimental for farm enterprises because of the high inflation (25% per year by CPI) and growth of prices for supplies during the overdue period. iii. Restrictions introduced in 2006 for payments for own production with the same production: cotton-seed oil, ground oil-cake, husk (as it was before 2007), and limitations imposed by Uzdonmakhsulot on purchasing of fodder from processing wheat sold for the government. Lack of settlements with by-products after processing of production for the government results in reduction of volumes of fodder for cattle, of funds for paying wages to workers, and of oil consumption (one of the three staple products) by HHs. АНТ/ Ekspert Fikri Page97 of221 Farm enterprises believe that if it is not possible to avoid buyer’s monopolism, there should be introduced competition between its representatives – cotton plants and wheat collection stations, – i.e. farm enterprises should have the right of choice. Farmer F, Beruni, city. Farmers are not interested in government orders these days like it was in the past. Farmer, Turtkul. Farmer has no stimulus for cultivation of cotton. Many farmers are ready to hand over the land to the state, but it is impeded by debts, which are necessary to pay prior to hand over. Farmer, Stock-breeder, Beruni. If there’s no profit and if cotton prices are not growing the number of farmers who are abandoning lands will be increasing. Production of cotton Cotton is being grown on, approximately, half of the farmers’ lands; however, profits from cotton either have not been increasing in the last 5 years or have even been dropping because of the ‘price scissors’14, decreasing income and loss of farmers’ interest both in increasing the yields and in production of cotton. Prior to 2009, farm enterprises were receiving cotton-cake and oil at a discount for sold cotton which they were then selling or giving to their workers as wages. These days, this source of income is either lacking or has been reduced to a minimum. Farmer, Turtkul, Buston canal. I sold 85 tons of cotton. I wouldn’t have covered all my expenses even if I had sold twice as much - 150 tons. State purchasing prices are not growing while our expenses per centner of cotton are higher than in the other oblasts. Farmer, Beruni. There’s no benefit from cotton if the yield is, on average, 20 centners per ha. Too many expenses but no profit. One can get profit only if the yield is 40 centners. We never have such yields because of problems with water, and not only with water. Statistical reports show that our yields are 30 centners per ha, but it’s on paper only, and because of not officially registered lands under cotton. Farmer, Turtkul, Buston canal. Government does not care, it requires only cotton and that’s all. In the past, they used to give us cotton-cake, ground oil-cake and oil, but they haven’t been doing that for about 3 years already. Out of 5 tons of sold cotton they could give you maximum 10 l of oil at a discount. One could rather buy this oil in the bazaar than work his guts out with this cotton. Only those farm enterprises that are located close to canals and cleaned drainages report increased production of cotton and yields per ha. Farmer (cotton only), Ellikkala. The closer is the water the higher are the yields. Yields are from 20 up to 30 centners per ha. Our raion is located close to Amudarya. Cotton 14 The quotation from statements of representatives of state institution speaks of this obstacle. “If prices for farm produce are increasing by 20% within three years, prices for F&L, fertilizers and the rest are increasing each year by 30%.” АНТ/ Ekspert Fikri Page98 of221 production increased by 3.5% only after the optimization of sizes of farm enterprises and only because the areas under cotton have expanded. Farmer (cotton, orchard, silkworms), Ellikkala. It’s because their canals and collectors have been cleaned. In farm enterprises located far from irrigation systems, yields have dropped and risks have increased because of unstable and unreliable water supplies. Farmer, Beruni. They make us grow cotton, but our lands are not suitable for cotton. That is why our cotton yields are poor. Our expenses for cotton production are not being justified. RAC Chairman, Turtkul. Before the 90s’ our three raions were producing 80 -100 000 tons, but now, approximately, half of that. Farmer, Beruni. In the past, there were 11 seeds in one cotton ball, but now - only 5-6 because of shortage of water during growing of cotton. Cotton lacks moisture. Farmer, Turtkul. Not enough water. One-time irrigation is not enough. You need to water it at least three times to get a good cotton yield. Production of wheat Farm enterprises are to sell 50% of the target yield of wheat to the government, however, some farm enterprises mentioned that in reality they had to sell more than 50% of their yield at government prices, because their yields were usually less than the planned ones. Nevertheless, the condition that arm enterprises can sell 50% of their wheat at free prices in the market makes them interested in production of wheat. Farmer, Amudarya c. Ellikkala. If 3-4 years ago were harvesting 17 centners per ha, now it’s as much as 20. People are trying to get more wheat from their lands. Farmer, Kaltaminor c., Turtkul. In desert zones, - Kumbogsan, Yonbosh, - yields are 12-16 centners wheat per ha. Yields are not dropping because farmers are improving their lands; they are not dropping but not increasing, either. Production of other crops The volumes of production of other crops, – apart from rice, – have been growing, as well as the quality of this production as a result of keen competition for consumers. Entrepreneur1, Ellikkala. Our population is now growing more farm produce on their household plots, selling extra produce in the market. That is why there’s keen competition in the market these days. Those who are producing farm produce are doing their best to achieve higher yields and quality of their produce. Production of rice АНТ/ Ekspert Fikri Page99 of221 Farm enterprises regard rice as the most profitable traditional crop that allows them not only to get profit but to increase yields of other crops due to proper rotation. However, since 2010, yields and volumes of rice production have been dropping because of the risks related to water supplies and its shortage. Farmer, stock-breeder, Beruni. Most of our lands by soil quality, by bonitet are more suitable for growing of rice. They don’t allow us to grow rice. They force us to grow cotton. However, our lands are not good for cotton. That is why cotton yields are poor. Farmer, gardener, stock-breeder. We used to sell a certain amount of rice to the state and the rest we were selling ourselves and were getting good income. On our lands there is no other alternative but rotating cotton with rice. After rice we could grow cotton and harvest 1.5 times as much cotton as after wheat even without irrigation. Miller-farmer, Beruni. Last and this year there were few rice, but before there had been more. I’ve been growing rice for as long as since 1982. Year after year the production of rice had been growing. However, last year because of shortage of water the yield was poor, and that is why since 2011, they don’t allow us to grow rice. Production of fruits and vegetables Production of vegetables, tomatoes, fruits and grapes has been growing in the raions because the number of vegetable-growing and gardening farm enterprises has been increasing, and authorities are persuading farm enterprises and HHs in the necessity of production of rural farm produce. Farmer, Kaltaminor c., Turtkul. Our Government supports the development of gardening. In the past there were cotton fields everywhere, but now there’s no water for cotton, and some of the lands were handed over for gardening. In the ‘cultivated’ zone there were 14 ha of orchards up to 2005, but now they are harvesting yields from 44 ha. It’s grapes and other fruits. There are no processing enterprises however; the crops are being bought by wholesale buyers. Farmer, gardener, Turtkul. In the past, we were not allowed to grow cucurbits, vegetables and corn on the skirts of cotton fields, aryks and collectors. However, it’s for already 2 years after the issuance of a Cabinet of Ministers’ resolution that raion Prosecutor’s, khokimiyats and interior departments have been instructed to see that something is being grown on all the unused lands, - for example, pumpkins, corn, etc. Farmer, Turtkul, Buston canal. The population has been growing and production of fruits and grapes have been growing by the same %. When young families separate from their families they would always plant and grow fruits and grapes. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. Production of fruits has increased since 2006 by 15-20%. According to the Order of the Cabinet of Ministers, each citizen should plant 20 fruits trees on his plot or along canals and roads. АНТ/ Ekspert Fikri Page100 of221 Farmer, Ellikkala. I’m growing pomegranates at home. Each year I’m harvesting 1 -1.5 tons of pomegranates. Apart from pomegranates I have grapes, apples, peaches and sweet cherry. If in 2005 I had 8 trees, now it’s already 25. Farmer, multibusiness, Ellikkala. There are vineyards in each HH. However, few of them are selling grapes because they eat them themselves and preserve for the winter for guests and children. Production of vegetables and tomatoes has been growing. Many of the HHs are building greenhouses (low power and simple technology), where they are producing seedlings and then selling their produce in the markets of their own and neighboring oblasts. Watering of seedlings and plants is usually being done with ground water from a HH plot. ‘Mahalla’ Foundation leader. In ‘Uzbekistan’ village, about 900 households are engaged in the greenhouse business. They are selling their produce in Nukus, Turtkul, Khorezm, etc. The increase in the production of fruits and vegetables is being accompanied with growing risks of water supplies and, accordingly, the risks of over- or underproduction. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. I can’t say the productivity is stable or growing. This year you can harvest a good yield, but the next year the yield could be poor. Entrepreneur/farmer2, Ellikkala. We leased 5 ha of lands under an orchard. In the beginning, there was enough water. We planted new seedlings. But when the cotton season started, the amount of water dropped sharply. We couldn’t water the seedling in time and in needed volumes, and some of them died. Entrepreneur/farmer2, Ellikkala. Not to mention 5 ha, we weren’t able to water even our 2.5 ha! We’d treated the land, bought the best and most expensive seedlings so that the varieties were the best and the yield was high. We’d planted trees on the whole plot. However, two months later, - when they started to plant cotton, - water almost disappeared. Almost all our trees dried up. We incurred great losses. Production of legumes and cucurbits Under the conditions of water shortage, farm enterprises and HHs have started to plant more legumes, sunflowers, joughara; these crops need less water than other crops. Farmer, Ellikkala. Last year they planted a lot of mung beans (legumes) because it does not require a lot of water. Farmer-F, Amudarya c., Ellikkala. They planted more sunflowers, too, - for the same reason. People are traditionally growing cucurbits in the raions (melons, water melons, pumpkins) for the same reason (they do not require a lot of water). That is why the volumes of production of cucurbits have been growing, also because the areas under cucurbits have expanded on the lands where they stopped growing rice. АНТ/ Ekspert Fikri Page101 of221 Farmer, gardener, Amudarya c., Ellikkala. Since they do not allow us to grow rice here all the plots that used to be under rice in the past are under cucurbits now. The income is almost the same as from rice. Farmer, Beruni. There’s demand for cucurbits. You can sell them almost all the year round. Prices are good, too. That is why people have started to grow cucurbits for selling. Plant selection Farm enterprises and HHs have started to widely use plant selection, the indication of which is the increase in the demand and prices for seeds and seedlings. Farmer, Ellikkala c. They have started to sow an experimental variety of cotton ‘Bukhara - 2’. It’s been selected for shortage of water. As we were told, this variety is being produced in 150 countries of the world. It’s known for good-quality fiber. Thanks to this we could fulfill the quota. Farmer, gardener, Amudarya c., Ellikkala. We have 9 ha under an orchard. Of them, on 1 ha we planted experimental dwarf apple trees. This was supported by the German GIZ Project; - they were giving us seedlings on a credit. However, the roots of these apple trees grow no more than 15-20 cm deep into the earth. It’s not good for our region because the groundwater level is lower than half meter. Entrepreneur-F, Turtkul. There are entrepreneurs who are selling vegetable and fruits seeds and seedlings. People are taking loans, buying seedlings and 3 years later they are harvesting yields. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. They are bringing seedlings to us from the Ferghana Valley. Prices have increased for them, too. If two years ago we were buying one seedling for 2,000 Soums, this year the price was already 4,500 Soums. So, prices have increased by more than 50%. Farmer, gardener, Shimom-yab c., Beruni. I, for example, went to Samarkand where I visited two horticultural farming enterprises and saw how they were working. Farmer, cotton/corn, Beruni. If I hear that there are good quality fruits somewhere I’m going there and bringing seedlings and seeds from there. For example, there’s a variety of grapes called ‘Kirov’. I saw it in Bahat raion of Khorezm oblast. It’s known for good yield. People from Russia are coming and buying this variety from them. I heard that in Yangiaryk raion of Khorezm oblast they are harvesting 20 tons grapes from 2 ha. 3.3.3 Stock-breeding and poultry-breeding produce Production of stock-breeding produce Farm enterprises and HHs keep animals, – mainly as cash liquidity (‘walking dollar’) that could be sold if cash is needed for production purposes; or is being used as collateral and/or as a АНТ/ Ekspert Fikri Page102 of221 source of paying off a loan; or for HH consumption. That is why farm enterprises’ and HHs’ most urgent need is that some of their lands be freed of the state order for production of fodder, grazing cattle, getting manure from it for fertilizers, and for other purposes. Production of meat of animals and poultry in the ‘cultivated’ zone of the raions has incr eased, while in the ‘desert’ zone it has reduced. The reasons are shortage of water, as well as handing over of communal pastures and watering places to farmers, and lands of farmers – stock- breeders to farmers – cotton-growers. Farmer, gardener, Amudarya c., Ellikkala. In our Ellikkalin raion production of poultry has increased by 100%. Farmer, multibusiness, Ellikkala. We’ve got enough free lands where one could sow fodder crops if there’s enough water. Farmer, (cotton, orchard, silkworms), Ellikkala. After wheat they would sow fodder crops. Farmer, (cotton only), Ellikkala. There’re plenty of places where you can graze cattle. Miller-farmer, Beruni. The number of farming enterprises engaged in stock-breeding has dropped. In our ‘Gulli’ aul there used to be 40 farmers - stock-breeders in the past, but now there’s none of them left. Entrepreneur, Beruni. They were cut down as a result of the optimization program - they merged small enterprises into large ones. The reduction in the number of cattle in farm enterpriseswas partially compensated with the increase in the number of cattle in HHs; that is why the volumes of meat production have remained approximately at the same level in the last five years. Farmer, stock-breeder, Beruni. The number of animals in farm enterprises has dropped. Farmer, stock-breeder, Beruni. The Cabinet of Ministers issued an Order that each household should have about 50 hens, 5 heads goats and sheep, and at least two heads cattle. Miller-farmer, Beruni. There are more HHs now who keep at least 2-3 heads of animals. Miller-farmer, Beruni. The volume of meat production has not increased. Entrepreneur, Beruni. 20 butchers are selling the same amount of meat now as 5 butchers in the past. The indication of the growing demand for meat and the low increase of its production is the fact that prices for meat have been growing, among the reason being the restrictions to the access to fodder, increasing prices and deteriorating quality of fodder, the lack of possibility to purchase imported fodder due to the restrictions for conversion and the ban on barter deals. АНТ/ Ekspert Fikri Page103 of221 Farmer, Kaltaminor c., Turtkul. We are selling wheat to the state at 200 Soums per kg, but when we are asking them to sell mixed fodder from this wheat they are selling it to us at 1,000 Soums per kg! Even the market prices are lower - 700 Soums. Farmer-F, Turtkul. They should sell fodder to farmers out of its production at a reduced price, - like it was 6 years ago. Why are farmers now handing over their lands? Because in the past they used to get husk and cake, and mixed fodder, and oil, that is why farmers were working, while now they are not being given anything. Entrepreneur, Beruni. In the past, animals were fed with cotton-cake in which there was some oil left. Now, with new technologies, they are extracting most of the oil from the seeds, and therefore ground oil-cake is not so nutritious. If in the cotton-cake there’s 40- 50 % of oil, in the ground oil-cake – maximum 8-9 %. And you can hardly find cotton-cake these days. Farmer-Stock-breeder, Beruni. In the last 3-4 years they are giving you only ground oil- cake. Even this ground oil-cake is hard to be found. Farmer stock-breeder3, Beruni. We have no choice but feed our animals with hay and husk. Farmer stock-breeder3, Beruni. They told in Tashkent that there’s an organization that supplies fodder from Byelorussia and Russia. However, we are not able to pay for it. We cannot buy currency and barter is banned. Prices for meat have increased in the past 5 years almost twice from 6 000 Soums up to 15 000 Soums. As a result of this increase, and to protect vulnerable groups of population, the authorities persuade stock-breeders to sell meat at fixed prices, are setting the volumes of these sales, supplying them fodder at a discount instead as an incentive; however, farm enterprisesregard this incentive as a very weak incentive. Entrepreneur, Beruni. Stock-breeders are being set a quota by khokimiyats for selling meat at a reduced price. If one kilo meat costs 15 thousand in the market, they are to sell it at 11 thousand. Farmer-Stock-breeder, Beruni. This order has been introduced in the last 2-3 years. We are being told how much kg meat we are to sell at a reduced price - 80 %. Farmer stock-breeder3, Beruni. We are selling meat at a low price and they are giving us ground oil-cake and husk. For 10 kg of meat at 11 thousand they would give us 1 kg of ground oil-cake and husk at 1,000 Soums. But we can never produce 10 kg of meat for 1 kg of ground oil-cake! Production of milk The situation with production of milk products is similar to that with meat products described above due to the same reasons. АНТ/ Ekspert Fikri Page104 of221 Farmer, stock-breeder, Beruni. When we fed our animals with cotton-cake they used to gain weight easily. Milk yields were higher. However, ground oil-cake is low-caloric. Our milk yields have dropped because of that The productivity of milk from one average cow is about 3-5 liters per day because of the low quality of fodder and its shortage. Farmers’ Association representative, Turtkul. The volumes of milk production have increased because the number of cattle has increased, however, you can hardly see well- fed cattle anywhere. It’s because fodder is poor these days and there’s not enough of it. Miller-farmer, Beruni. Cows produce less milk these days. Production of milk has not been increasing due to the low demand from the population and processing enterprises (which are producing milk and milk products themselves), as well as the lack of certificates for supplies to children’s institutions. Representative АLFs, Turtkul. Both the poorest and the richest households have cows; they all have their own milk and are processing it (into milk products). Farmer, stock-breeder, Beruni. In the past, we used to sell our milk to the milk plant. They were making kaimak there and sour cream. However, 2 years ago the plant was closed for some reason. That is why we are bringing our production to the bazaar. Farmer - fish farmer, Beruni. SES (the Sanitary and Epidemiological Station) would give you a certificate for meat easily; however, they don’t have equipment to test milk. And we cannot sell milk to children’s institutions without a certificate. Now we are not giving milk to kindergartens but selling it in the market. Production of fish Production of fish has been developing in the raions, and production volumes have been growing after local reservoirs had been handed over to farm enterprisesand conditions created for development of fish-farming enterprises which breed young fishes and grow fish in reservoirs. Nevertheless, fish-farming is not stable yet because of the risks of lack of water. Farmer, Ellikkala. There are more fish farmers these days than 5 years ago. Farmer, Ellikkala. In our raion, there are now at least 10 fish farming enterprises. Farmer, stock-breeder, Beruni. There are 4 fish farming enterprises in our raion. One entrepreneur-farmer brought equipment for breeding young fishes - plastic aquariums. He’s growing young fishes from spawn and then selling the, to fish breeders. Farmer, Ellikkala. There are a lot of small artificial lakes in the raion for breeding young fishes. Farmer, Ellikkala. More and more people are breeding fish these days. There’s ‘Akcha kul’ lake in our raion. Farmers are leasing it to fish breeders. АНТ/ Ekspert Fikri Page105 of221 Production of wool and skins As was mentioned in subsection ‘Production of stock-breeding produce’, there is a lot of cattle in the raions, which means there is a lot of raw materials for production of wool and skins. There are no enterprises for processing skins in the raions. Part of the wool is being processed at HHs into felt litters, rugs, socks, handmade shawls; some of it is being purchased by carpet manufacturers. Farmer, multibusiness, Ellikkala. There are 2-3 sheep in each household for family events, - wedding, etc. When they slaughter animals they are selling wool or skin in the market. However, I haven’t seen large amounts of wool or skins. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. There are Kazakhvillages 50 km away from out settlement; - they are selling wool and skins there. Farmer, Ellikkala. They are selling wool shawls and socks in the bazaar. However, I haven’t seen anybody selling wool itself. Farmer, Kaltaminor, Turtkul. There’s a lot of wool here, however, there’s no demand for it, and nobody is buying it. It’s cheap - 200-300 Soums per kilogram. Maybe this wool is of low quality, because sheep are rough-haired. They are being bred for meat only. This wool will be in demand if there’s demand for felt. Farmer-F, Turtkul. Yes, our women use wool for felt, rugs and carpets. They weave Turkmen carpets in our HHs. They used to manufacture a lot of carpets, but now very few people do this, because there’s no demand for expensive carpets. It’s a hard work. There will be demand if these carpets are exported abroad. On the whole, processing of wool has a high potential due to its large quantities and low prices, and if it finds way to the foreign market – to Russia and Kazakhstan. However, development of wool and skins processing is limited by the possibilities of borrowing for purchasing of equipment, low quality of electricity supplies, high tax rates, and low purchasing capacity in the local market. Farmer, gardener, stock-breeder, Turtkul. Our carpets are hand-made and have a great value. There are some villages here where Turkmen live. One has to bear expenses to sell carpets, to obtain documents, to pay taxes. They were opened legally and were officially registered, however are already closed. There’s no permission for export, and our population wouldn’t buy these carpets. Farmer, gardener, Turtkul. Wool is considered an ecologically clean and cheap product. There is an enterprise that is functioning nearby in Khorezm called ‘Khorezm Palas’, - they are selling products at affordable prices, since they are being made from chemical fiber with the use of machines, while ‘Turkmen’ handmade carpets are expensive. You can buy 30 Khorezm carpets for 1 Turkmen carpet. Farmer, Turtkul, Buston canal. I once opened a weaving mill to manufacture handmade carpets, and started working, however, I hardly made the first products tax inspectors АНТ/ Ekspert Fikri Page106 of221 came to me, and inspectors from other agencies, and they all bothered me with their endless inspections. And I decided to ‘go into the shade’. I had been willing to work officially but they didn’t let me do that. Production of bee products Within the frames of the above mentioned governmental resolutions, bee-farming is developing in the raions, and volumes of honey production have been increasing. Bee-farming has a high potential of exporting such products as royal jelly, beebread, bee-glue, apitoxin; however, there is no, or yet a poor level of, marketing for promotion of this production onto the domestic and foreign markets. Honey is widely used by confectionery shops of the raions, however, bee- farming is not evenly distributed. In the ‘cultivated’ zone, bee production is developing, while in the desert zone it is limited by the lack of plants and excessive winds and dust. Farmer, Ellikkala. We were told at the khokimiyat that according to the Cabinet of Ministers Order, each farmer has to have at least 12 beehives. Farmer, cucurbits, Beruni. We’ve got 2-3 bee-farming enterprises. However, they are small and cannot even provide the population of their raion with their products. Farmer and WUA leader, Turtkul. They are not selling their produce abroad; they can sell everything here because there’s a good demand. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. We don’t have conditions for bee- farming. No flowers. Too much dust. Production of silkworms Production of silkworm cocoons is restoring and has been growing in the last 5 years, however, it is limited by the lack of power for heating of premises and the lack of mulberry trees, plantations of which though have been expanding and will help further development of production. Farmer, Ellikkala. My mother had been engaged in silkworm production all her life. There were some difficulties. She had to bring mulberry leaves from far away. We were recently given 1.5 hа of lands under mulberry trees. Selection in stock-breeding and veterinary services Farm enterprisesand HHs are widely using selection methods in stock-breeding, fish-farming and bee-farming, as well as veterinary services and artificial insemination performed by specialized veterinary stations. However, selection methods are being used sometimes sporadically, – people are simply exchanging experience betweeneach other rather than seeking consultation and services in selection from some permanently operating specialized or cooperative organizations. Farmer, Ellikkala. We’ve got two stations in our village; they are doing artificial insemination of cows at farm enterprises and HHs. After that people have pedigree calves. Zootechnicians themselves are coming to farming enterprises. АНТ/ Ekspert Fikri Page107 of221 Farmer, stock-breeder, Beruni. I know of such farmers in our raion center who are bringing pedigree cattle from abroad for fattening. One farmer recently brought several heads of cattle from Poland. Farmer and WUA leader, Turtkul. They are bringing cows and bulls from Ukraine and Estonia. In the raions of the Project the potential of produce processing development is high, and processing of farm produce has been developing, however, not to the extent that would allow for efficient use of produced raw production. Entrepreneur/farmer2, Ellikkala. Sausages and other meat products used to be imported from Tashkent. However, these days many types of sausages are being produced here. Farmer, Ellikkala. Starting with 2005, processing of produce has increased by approximately 30%. Entrepreneurs are bringing equipment and opening sausage and cheese shops, however, not in our raion. There are such in Khalkabad raion and in Khodjeily. Farmer, fruit/vegetable grower, Kazakh-yab c., Beruni. We would be willing to start processing of our production. We would even be able to build buildings. The only thing we need is either equipment or money to purchase it. I would produce apple juice. Besides, I could produce dried fruits - apples, pears, apricots. I heard that there is a special drying plant with which you can dry a certain amount of apricots or other fruits within 1-2 hours. Farmer-F, Turtkul. We don’t have processing enterprises because it’s more profitable to sell produce unprocessed. Farmer - fish farmer, Beruni. There was one Uzbek-German JV, but their business didn’t go well here and they are now working in Samarkand or Jizzakh. They were manufacturing liquorices. Entrepreneur, Beruni. They didn’t close this JV, they just moved the building and equipment, but are manufacturing raw production here. Obstacles to development of produce processing are the following: 1 Difficulties with loan raising and purchasing equipment; Farmer, gardener, Turtkul. We would be willing to do this, but we don’t have possibilities for that. We need to raise loans, buy equipment. Farmers’ Association representative, Turtkul. There are 1-2 people who would like to be engaged in processing, but they complain of the lack of good (affordable) loans. Farmers’ Association representative, Turtkul. Only dehkan enterprises can raise loans with 4-5% interest rate. But, I guess, the amount of a loan is only up to 1 mil Soums. However, even 3 million is not the amount needed for development of this business. 2 Low quality of gas, electricity supplies and poor quality of piped water; АНТ/ Ekspert Fikri Page108 of221 Irrigator, Kaltaminor c., Turtkul. Why we don’t have processing enterprises? The main reason is that we don’t have electricity and gas. Who would start this business knowing that it’s doomed to failure. 3 Low demand and surplus of raw produce, or lack of this raw produce; Farmer, stock-breeder, Beruni. Meat and sausage shops wouldn’t buy our meat, because they have their own stock-breeding farms. Farmer, gardener, stock-breeder, Turtkul. There is a lot of meat, but we would rather sell raw meat to Tashkent than process it. There’s, for example, a tomato shop in Turtkul. We, - farmers, - are bringing there our tomatoes, they are buying them, but we are spending too much money for transportation. There’s no sense in it. Farmer, gardener, stock-breeder, Turtkul. There were milk plants here in the past, but now they are all closed because there’s not enough milk. Entrepreneur, Beruni. You can buy a separator, but they are not for individual use. If you take a big separator, you’ll not have enough raw production for it. Farmer, fruit/vegetable grower, Kazakh-yab c. Each household has several apple trees in their gardens. You feel sorry for all these apples falling onto the ground and rotting there, or being fed to cattle. People wouldn’t take these apples to the bazaar because of low prices. You would spend more money for transportation than gain from selling them. But if there were mini-shops manufacturing apple juice other people would be able to provide such a shop with apples. There would be additional income source. Or, take tomatoes. You can get a good yield of tomatoes in the season. They could manufacture tomato paste, or pickle tomatoes here. 4 Low quality of produce grown with too much fertilizers and chemicals; PE-F, greenhouses, Turtkul. HHs themselves are canning vegetables and fruits for their own consumption, but some are doing this for the bazaar. Entrepreneur, Beruni. In 2006, we wanted to get land for growing vegetables and fruits with a minimum use of chemicals. Produce bought in the market is no good for processing because there are too much chemicals in it. It cannot be canned because it won’t stay long and burst soon. 5 Risks of fluctuation of prices for raw and processed produce in the domestic market and difficulties with promotion onto the foreign market. Farming Enterprises (FEs) (those who would like to start the processing business) would like to purchase the following types of equipment for farm produce processing:  Equipment for processing vegetables/fruits;  Equipment for oil production;  Threshers, bakeries; АНТ/ Ekspert Fikri Page109 of221  Equipment for production of milk products;  Equipment for processing meat;  Equipment for processing skins, wool and silkworms. АНТ/ Ekspert Fikri Page110 of221 3.3.4 Cooperation and far, enterprises’ associations Cooperation of farm enterprises in production of farm produce is sporadic and does not have sustainable organizational forms, which hinders development of their potential and efficiency improvement in the situation of meeting challenges in production, processing and sales of production. One-time cooperation is quite common, – from the process of mutual crediting up to sales of production. Farmer, fish-farmer, Beruni. Say, I’ve got 5 million and I’d like to buy some product which cost 10 million. My farmers - acquaintances with whom we have mutual trust are giving me money without any interest and collateral. There are people who’ve got a lot of money on a bank account. Farmer, multibusiness, Ellikkala. 4 of our farm enterprises are located along the line of the canal. We used to pool money and lease machinery to clean the canals. All the farmers were watching and controlling the cleaning works. They pooled money for the diesel fuel. We would do this once in two years. It’s easier for us to help each other than to turn to the MTP. Farmer-Stock-breeder, Beruni. The khokimiyat sets a quota for our farm enterprises for selling meat at a lower price. One farmer asks another farmer to sell meat instead of him promising to do the same for him next time. Sustainable cooperation between farmers takes place mostly within the frames of their WUA, as well as in distribution of water. Within the frames of WUAs farmers have started to cooperate in those works which are impossible or useless to be performed separately since they require significant amounts of money, labor, machinery and equipment, – like in cases of cleaning and fixing of irrigation and drainage systems. Farm enterprises believe that in spite of current weakness of WUAs, they can, and should, become the basis of production and sales cooperation under certain conditions. Farmer-stock-breeder, Beruni. I think that in future WUAs will be able to turn into an independent cooperative in production and sales of farm produce. Farmer-cotton-grower, Turtkul. I think that WUAs can transform into rural cooperatives - provided they have machinery, more independence and not so much control on the part of the state. Other forms of cooperation vary depending on the types of farmers’ activities and are based on exchange or mutual provision of machinery, vehicles, equipment, workers, purchasing of seeds, CLM, fertilizers, materials and spare parts. The level of cooperation and sustainability could be even higher if it were not for the restrictions in farm enterprises’ rights of managing their assets, in exchange of consultation in agronomy issues, in development of business plans, loan applications, reports, etc. АНТ/ Ekspert Fikri Page111 of221 Farmer-F, gardener, Amudarya c., Ellikkala. Farmers should be given a possibility to sign agreements between each other. For example, I’ve got 5 tractors. Neighboring farming enterprises are asking me to cultivate their plots. However, the bank wouldn’t give permission for that because money for these types of works should be transferred directly to an MTP. But I have spent about 13 million Soums for the repair of 3 tractors only. Who, and how, is going to cover these expenses? There is almost no cooperation in storage of farm enterprises’ produce. This form of cooperation is being hindered by fears to lose production if it is stored in someone else’s warehouse. On the whole, institutional and legal environment are aimed at supporting WUAs and farm enterprises, protection against arbitrariness and infringement of their legal rights. For example, the government fulfilled measures in the sphere of improvement of legal safety of farm enterprises. The government allotted the АLFs and the Ministry of Justice the main role in protection of farmers, – they conducted a series of seminars in the raions, published guides in legal education for farmers, and are protecting farm enterprises’ rights to a certain extent. However, as we can conclude from the above described problems faced by farmers, solution of these problems is a difficult or impossible task for each individual farm enterprise or HH if they act separately, and could be possible only in associations, production institutions, sales and consumer cooperation. Only in cooperation farm enterprises could find complete or partial solution of these problems via feedback with suppliers and buyers, and only if they participate in design and planning of works on irrigation anddrainage systems and in control over these works. Farmer, stock-breeder3, Beruni. Farmers cannot even dispose freely of their own money. Everybody else is disposing of his lands and money! А farmer should become the owner, otherwise farming is senseless. Farmer, fish farmer, Beruni. Why should I turn somewhere, - for example, to the court!? I’m a small figure! Miller-farmer, Beruni. If he goes somewhere he’ll be told: ‘Why would you care?’ They’ll tell him that it’s not his business and that he should attend to his own affairs. The main role of these institutions of cooperation and the main condition for equalization of farm enterprises’, suppliers’ and buyers’ rights would be, in the opinion of farm enterprises, creation of a fair competition environment for suppliers and buyers, some of whom are acting as monopolists while farm enterprises find themselves in conditions of keen competition for them. For example, farm enterprises can purchase CLM and other resources at commodity exchanges but these commodity exchanges accept applications for bulk supplies only, whereas one farmer does need supplies in such amounts. A similar situation is observed in sales of farm enterprises’ produce. 3.3.5 Sales in domestic and foreign markets Supplies of non government order crops onto the domestic market have been growing with the growing production and growing prices for this produce. At the same time,farm enterprises and АНТ/ Ekspert Fikri Page112 of221 HHs are always facing the risks of overproduction or underproduction in the market, which results in sharp fluctuations of prices for the produce. Entrepreneur4, Ellikkala. Last year prices for cucurbits dropped significantly. There were many melons and water melons. One water melon cost 1,500 Soums, and 1 kg of melon – a little over 1,000 Soums. Farmer, gardener, stock-breeder, Turtkul. One of the last years, rice cost 500-600 Soums, but the next year it was 3,000 Soums per kg. Supplies of non government order crops onto the foreign market are being performed centrally and via specialized enterprises, which limits farm enterprises’ own possibilities in exporting their crops and cooperation in processing and/or sales of production. Farmer, gardener, stock-breeder, Turtkul. In 2005-2006, entrepreneurs themselves were exporting their fruits. But now nobody is allowed to export greens or fruits abroad; there is no permission to export any food items at all. Farmer, gardener, Shimom-yab c., Beruni. We should somehow organize selling of fruits abroad. For example, in the season one kg of apples cost 700 Soums here. This price does not cover all the expenses. Miller-farmer, Beruni. There are special enterprises that are exporting produce buying it from us at very low prices. If we ourselves could export it we would gain goof profits. Farmer, Kaltaminor c., Turtkul. In the season, one kg of melons cost 300 Soums, while in Russia it’s 1 US dollar. Unfortunately, we don’t have such possibilities. We’ve got to pay 6-8 million Soums per one truck for transportation. We need extra money, loans. Farmer2, Beruni. They are buying produce from us and later exporting them - dried apples, silverberry, tomatoes, apricots, melons. Farmer, gardener, stock-breeder, Turtkul. We are not exporting anything. Irrigator, Turtkul. To start exporting our produce, there should be created conditions for entrepreneurs for processing and export of production. 3.4 IRRIGATION AND DRAINAGE SYSTEMS OF PROJECT RAIONS 3.4.1 Current state of irrigation and drainage systems Location of farm in irrigation system For the purpose of comparison of opinions of farms about the current situation of operation of irrigation and drainage systems, farms located in various parts of irrigation system were covered by the survey: АНТ/ Ekspert Fikri Page113 of221 Diagram 14 Share of farms interviewed within the survey located in different parts of irrigation system of project raions Beruni raion Turtkul raion Ellikkala raion Source: Outcomes of HH survey Sources of irrigation water Absolute majority of farms use water from irrigation canal as a water source for irrigation of the plot – 99.58 % of respondents. In project raions after farm enterprise intervention in irrigation system designed for state farms and drainage system there are cases of unduly close or bound arrangement of irrigation and drainage system which result in loss of their efficiency. Farms assume that they use irrigation canal as a source of water, but actually water in this irrigation canal is not only irrigational, but from drainage system. As a result quality of irrigational water considerably decreases that leads to deterioration of lands (threatens with a secondary salinizatione of lands of farms) and decrease in volumes of yields of farms. According to opinions of participants of in-depth interviews and FGD river-channel-lake serve as sources of irrigation of land plots of farms. Drainage water from wells or collectors is used in case of lack / absence of water in the main source of water for irrigation. Farmer-F, Turtkul. There’s no water, but these crops can be watered with subsoil water, too, and this is what people are doing. Farmer and WUA leader, Turtkul. However, ground water is of low quality, - it’s too salty. Along with it results of survey of farms showed that in this case drainage water for irrigation of lands is used by less than 2 % of respondents. 98 % of farms do not use drainage canal and collectors for irrigation. As a whole, the main share of farms considers efficiency of operation of drainage systems as satisfactory – 54.74 % of interviewed farms of project raions. Thus in Turtkul raion such opinion АНТ/ Ekspert Fikri Page114 of221 is adhered by 72.14 % of interviewed farms. In Beruni and Ellikkala raions the efficiency of operation of drainage systems is estimated as satisfactory by 45.37 % and 42.70 % of interviewed farms Efficiency of operation of drainage systems is estimated as high by 39.47 % of all farms of project raions. In Beruni and Ellikkala raions such opinion is adhered by every second farm, in Turtkul – by every fourth. Reliability of water supply in irrigation canal The main share of farms notes periodic delays in water supply in irrigation system. Majority of farms mentioning periodic delays in water supply in irrigation system is in Turtkul (67.97 % of interviewed farms) and Ellikkala raions (67.79 %). In Beruni raion periodic delays are noted almost by every second farm. Long delays with water supply in Beruni and Ellikkala raions are mentioned by every fifth farm, in Turtkul – by every fourth. The main part of farms mentioning long delays with water supply, are the ones located at the end of irrigation system. It is caused by the fact that by the end of irrigation system pressure of water supply decreases. Opinions of participants of in-depth interviews and FGD show that priorities in water supplies exist in project raions as well. Priority in supplies of water is for those who grow crops for the government. Farm enterprises, Turtkul. The first to receive water should be enterprises that grow state crops, - wheat and cotton. And then water could be delivered to private farmers, and HHs are taking water from them. Farm enterprises, Beruni. First of all, we water wheat - this is bread. Bread is our life. Cotton is in the second place, - because it’s the government order. On the whole, those farm enterprises that are located near water sources receive more water. The rest of the farm enterprises are not satisfied with water supplies, – neither with the volumes nor with timeliness of supplies. Women, – heads of farm enterprises and HHs, – do not suffer from gender discrimination in water distribution. Moreover, they receive water among the first, – both because of respect being paid to them and because of water suppliers’ willingness to avoid ‘brawls’ with them. Reliability of water supply to irrigation canal in project raions also varies depending on season. АНТ/ Ekspert Fikri Page115 of221 Table 27 Reliability of water supply to irrigation canal used for watering, for the period autumn 2010 – autumn 2011 There was no More than Index water at all/less 1-2 hours 3-5 hours 6-10 hours 11-15 hours 15 hours than 1 hour Autumn 2010 Beruni raion 0,31% 0,31% 5,86% 28,40% 39,81% 25,31% Turtkul raion 0,28% 3,90% 24,51% 31,48% 22,56% 17,27% Ellikkala raion 0 0,37% 13,48% 20,22% 25,84% 40,07% Winter 2010 Beruni raion 0,31% 0,31% 9,88% 38,58% 34,88% 16,05% Turtkul raion 1,39% 9,19% 26,74% 32,87% 21,17% 8,64% Ellikkala raion 3,37% 1,12% 11,61% 26,22% 31,84% 25,84% Spring 2011 Beruni raion 0,31% 0,31% 23,46% 36,42% 28,40% 11,11% Turtkul raion 1,11% 13,65% 30,92% 27,86% 18,66% 7,80% Ellikkala raion 1,12% 6,37% 22,47% 27,34% 19,85% 22,85% Summer 2011 Beruni raion 0,31% 0,62% 20,99% 39,51% 27,16% 11,42% Turtkul raion 2,23% 25,35% 24,51% 16,71% 22,84% 8,36% Ellikkala raion 1,12% 7,49% 20,97% 23,97% 23,97% 22,47% Autumn 2011 Beruni raion 0,31% 0,31% 18,21% 41,05% 27,16% 12,96% Turtkul raion 2,23% 10,31% 36,49% 14,76% 27,58% 8,64% Ellikkala raion 0,75% 5,99% 13,11% 22,85% 29,21% 28,09% Source: Outcomes of HH survey Beruni raion As a whole, in Beruni raion water in irrigation canal, used for watering, according to the interviewed respondents, was most regularly supplied from 6 to 15 hours a day during the period autumn 2010 - autumn 2011. Water supply regularity of more than 15 hours decreases for the specified period. In autumn 2010 93.52 % of respondents received water in irrigation canal more than 6 hours a day, in particular:  every third respondent noted that water in irrigation canal was 6-10 hours a day;  every third - 11-15 hours a day;  and every fourth respondent noted that water in canal was more than 15 hours a day. In winter 2010 availability of irrigation water in canal for more than 6 hours a day was noted by 89.51 % of respondents, in particular:  Every third respondent noted that water in irrigation canal was 6-10 hours a day;  every third - 11-15 hours a dayas well; АНТ/ Ekspert Fikri Page116 of221  and every sixth respondent noted that water in canal was more than 15 hours a day. In spring 2011 availability of irrigation water in canal for more than 6 hours a day was noted by 75.93 % of respondents, in particular:  every third respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth - 11-15 hours a day;  and every ninth respondent noted that water in canal was more than 15 hours a day. In summer 2011 – 78.09 %, in particular:  every third respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth - 11-15 hours a day;  and every ninth respondent noted that water in canal was more than 15 hours a day. In autumn 2011 – 81.17 %, in particular:  every third respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth - 11-15 hours;  and every seventh respondent noted that water in canal was more than 15 hours. Turtkul raion The main period of water supply to irrigation canal for watering during the autumn 2010 – autumn 2011 in Turtkul raion varies from 3 to 15 hours. Water supply regularity of more than 15 hours in this area is low, according to respondents. In autumn 2010 78.55 % of respondents received water in irrigation canal during more than 3 hours a day, but not more than 15 hours, in particular:  every fourth respondent noted that water was supplied 3-5 hours a day;  every third respondent noted that water in irrigation canal was 6-10 hours a day;  and every fourth - 11-15 hours a day; Every sixth respondent noted that water in canal was more than 15 hours a day. In winter 2010 availability of irrigation water in the canal for more than 3 hours a day, but no more than 15 hours was noted by 80.78 % of respondents, in particular:  every fourth respondent noted that water was supplied 3-5 hours a day;  every third respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth - 11-15 hours a day; Every twelfth respondent noted that water in canal was more than 15 hours a day. In spring 2011 availability of irrigation water in the canal during more than 3 hours a day, but no more than 15 hours a day was noted by 77.44 % of respondents, in particular: АНТ/ Ekspert Fikri Page117 of221  water was supplied 3-5 hours a day, according to every third respondent;  every forth respondent noted that water in irrigation canal was 6-10 hours a day;  every fifth - 11-15 hours a day; Every twelfth respondent noted that water in canal was more than 15 hours a day In summer 2011- 64.07 %, in particular:  every fourth respondent noted that water in irrigation canal was 3-5 hours a day;  water was supplied 6-10 hours a day, according to every sixth respondent;  every fourth - 11-15 hours a day; Every twelfth respondent noted also that water in the canal was more than 15 hours a day. In autumn 2011 – 78.83 %, in particular:  every third respondent noted that water in irrigation canal was 3-5 hours a day;  water was supplied 6-10 hours a day, according to every seventh respondent;  every fourth - 11-15 hours a day; Every twelfth respondent noted also that water in canal was more than 15 hours a day. Ellikkala raion Ellikkala raion is characterized by the most regular supply of water in irrigation canal during the period autumn 2010 – autumn 2011 more than 15 hours a day. In autumn 2010 86.14 % of respondents received water in irrigation canal for more than 6 hours a day, in particular:  every fifth respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth - 11-15 hours a day;  And almost every second respondent noted that water in the canal was more than 15 hours a day. In winter 2010 availability of irrigation water in the canal for more than 6 hours a day was noted by 83.90 % of respondents, in particular:  Every fourth respondent noted that water in irrigation canal was 6-10 hours a day;  every third - 11-15 hours a day;  and every fourth respondent noted that water in canal was more than 15 hours a day. In spring 2011 availability of irrigation water in the canal for more than 6 hours a day was noted by 70.04 % of respondents, in particular:  every fourth respondent noted that water in irrigation canal was 6-10 hours a day;  every fifth - 11-15 hours a day;  and every fourth respondent noted that water in canal was more than 15 hours a day. АНТ/ Ekspert Fikri Page118 of221 Every fifth respondent noted also that water in canal was 3-5 hours a day. In summer 2011 – 70.41 %, in particular:  every fourth respondent noted that water in irrigation canal was 6-10 hours a day;  every fourth respondent also noted that water appears 11-15 hours a day;  and every fifth respondent noted that water in canal was more than 15 hours a day. Every fifth respondent noted also that water in canal was 3-5 hours a day. In autumn 2011 – 80.15 %, in particular:  every fourth respondent noted that water in irrigation canal was 6-10 hours a day;  every third - 11-15 hours a day;  and every third respondent noted that water in canal was more than 15 hours a day. Reasons for incomplete or non-timely receiving of water are the following:  Lack of water as a whole;  Factor of seasonality and climatic features of the region;  Lack of electric power for PS and/or high prices for electric power;  In some cases, closeness or injustice of decisions on water distribution. Regularity of land plots irrigation in farms Respondents answered the following to the question «How often does your farm irrigate the land plots?»: Table 28 Regularity of land plots irrigation in farms of project raions Index Beruni raion Turtkul raion Ellikkala raion Once a day 0 0,56% 0 Once every three days 7,10% 5,29% 1,50% Once a week 53,09% 39,83% 28,84% Once every two weeks 32,72% 54,32% 68,16% Does not irrigate at all 0,62% 0 0 Find difficulty to answer 6,48% 0 1,50% Source: Outcomes of HH survey In Beruni raion every second farm waters its land plot once a week, every third farm - once every two weeks. In Turtkul raion every second farm waters its land plot once every two weeks, every third farm - once a week. In Ellikkala raion the majority of farms (68.16 %) water their land plots once every two weeks. Watering once a week is made only by every fifth farm. АНТ/ Ekspert Fikri Page119 of221 Regularity of watering of land plots by farms in most cases has direct dependence on type of cultivated crops on land plots of farms. Loss of yields Changes in frequency of water supply, lack of water for irrigation, shallow and droughty periods, climatic features of the region cause loss of yields by farms. Table 29 Loss of yields by farms of project raions Percentage Beruni raion Turtkul raion Ellikkala raion From 10% to 20% 0 0,56% 1,87% From 20% to 50% 10,80% 7,52% 27,72% From 50% to 80% 66,67% 64,07% 53,56% Up to 100% 21,30% 27,86% 16,85% No losses at all 0,62% 0 0 Source: Outcomes of HH survey The majority of interviewed respondents note loss of from 50 % to 80 % of yield in case of shortcoming or lack of water for irrigation of farm lands. The most part of farms with yield losses up to 80 % is concentrated in Beruni and Turtkul raions – 66.67 % and 64.07 % respectively. In Ellikkala raion up to 80 % of yield is lost by more than a half of respondents – 53.56 %. Up to 100 % of yield in Turtkul raion is lost by every third farm, in Beruni raion – every fourth and in Ellikkala raion - every sixth farm. Farms also suffer losses of a crop as a result of necessary consumption of water lands washing from salt. The average quantity of land washing from salt was from 1 to 4 times. Hence, the need in water constantly grows, and incomes of farms do not allow to cover expenses of this need. In this view farms consider that the state should subsidize their expenses, in particular on installation of pumps and electricity for production under the state order. 3.4.2 Changes in operation of irrigation and drainage system for the last five years Irrigation system Situation improvement with irrigation system is noted by 39.05 % of respondents, in particular considerable improvement is noted only by 7.37 %. Table 30 Changes in operation of irrigation and drainage system of project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Considerably improved 0,31% 4,46% 19,85% Slightly improved 11,42% 36,77% 49,44% Has not changed 41,67% 44,01% 24,34% Slightly worsened 41,67% 11,42% 4,87% Considerably worsened 3,70% 1,95% 1,12% АНТ/ Ekspert Fikri Page120 of221 Find difficulty to answer 1,23% 1,39% 0,37% Source: Outcomes of HH survey Improvements of condition and operation of irrigation system are noted in Ellikkala raion – 69.29 % of respondents. Considerable improvements are noted by almost every fifth farm of the raion. No changes in condition of irrigation system are mentioned by 24.34 % of respondents. In Turtkul raion the situation with irrigation system for the last five years, according to the majority of respondents, has not changed – 44.01 % of respondents. Improvements are noted by 41.23 % of respondents from which only 4.46 % of respondents mention considerable improvements of condition and operation of irrigation system in the raion. In Beruni raion improvement of irrigation system is noted by only 11.73 % of respondents. Thus equal number of respondents of farms states that for the last five years the situation with irrigation system has not changed and slightly worsened – 41.67 % of respondents respectively. As a whole the situation with irrigation system in the raion worsened, and deteriorations are noted by 47.37 % of respondents. As a whole, in three project raions 39.05 % of respondents note improvements in operation of irrigation system against 37.68 % of respondents which argue that the situation with system operation has not changed for the last five years. Drainage system 46.42 % of all interviewed farms of project raions note improvements in operation of drainage system from which 12.63 % note considerable improvements. Table 31 Changes in operation of drainage system of project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Considerably improved 3,70% 5,57% 32,96% Slightly improved 14,20% 44,85% 42,70% Has not changed 57,10% 38,44% 19,85% Slightly worsened 21,30% 4,46% 2,62% Considerably worsened 0 1,39% 1,12% Find difficulty to answer 3,70% 5,29% 0,75% Source: Outcomes of HH survey Improvements of condition and operation of drainage system are noted in Ellikkala raion – 75.66% of respondents from which 32.96 % note considerable improvements in system operation. Every fifth respondent mentions no changes in operation of drainage system for the last five years. Deteriorations are noted only by 3.74 % of respondents. Improvements in operation of drainage system are noted also in Turtkul raion – 50.42 % of respondents. At the same time 38.44 % of respondents note that for the last five years there are no changes in operation of system. Deteriorations are noted by only every twentieth respondent or 5.85 % of respondents. АНТ/ Ekspert Fikri Page121 of221 No changes in condition and operation of drainage system for the last five years are noted by the majority of farms of Beruni raion – 57.10 % of respondents. In Beruni raion the improvements are felt by only 17.90 % of respondents. Every fifth farm notes deteriorations in operation of drainage system. As a whole deteriorations in operation of drainage system are noted by every tenth respondent in three project raions. Improvements are mentioned by 46.42 % of respondents against 39.58 % noting no changes in condition and operation of drainage system of project raions for the last five years. Changes in reliability of irrigation water supply The main part of respondents answered the following to the question «What kind of changes occurred in operation of irrigation and drainage systems for the last five years?»:  water for irrigation is being supplied less often – 44.63 % of respondents;  the volume of supplied irrigation water decreased – 45.16 %;  no changes in quality of irrigation water – 69.05 %;  timely cleaning of drainage canals – 42.63 %. Table 32 Changes in regularity of water supply in irrigation system of project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Water is supplied more often 10,19% 7,80% 21,72% Water is supplied less often 49,38% 48,19% 34,08% No changes in water supply 40,12% 39,28% 42,70% There was and is no water 0,31% 0,56% 0 Find difficulty to answer 0 4,18% 1,50% Source: Outcomes of HH survey The majority of respondents of Beruni and Turtkul raion notes that for the last five years water in irrigation system is being supplied less often – 48.38 % and 48.19 % respectively. No changes are noted by 40.12 % of respondents in Beruni raion and 39.28 % in Turtkul raion. In Ellikkala raion no changes in water supply in irrigation system are noted by the majority of respondents – 42.70 %. Deteriorations in regularity of water supply are noted by 34.08 % of respondents. As a whole improvements in regularity of water supply are noted only by every fifth farm of Ellikkala raion, every tenth - in Beruni raion and every thirteenth – in Turtkul raion. Changes in volumes of supplied irrigation water Among the interviewed farms of project raions 45.16 % of respondents noted that for the last five years the volume of supplied water decreased. No changes are noted by 43.37 % of respondents of project raions. АНТ/ Ekspert Fikri Page122 of221 Table 33 Changes in volumes of supplied irrigation water in project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Volume of water increased 8,33% 6,13% 14,23% Volume of water decreased 50,31% 45,40% 38,58% There is water, but there are no changes in 40,74% 43,45% 46,44% volumes of water supply There was and is no water 0,31% 0,28% 0% Find difficulty to answer 0,31% 4,74% 0,75% Source: Outcomes of HH survey In Beruni raion every second interviewed farm notes that the water supply volume in irrigation system for the last five years went down. No changes are noted by 40.74 % of respondents. In Turtkul raion 45.40 % of interviewed farms note that the volume of irrigation water went down against 45.45 % of farms which note no changes in water supply for the last five years. In Ellikkala raion the main share of interviewed farms mentions no changes in irrigation water supply for the last five years. 38.58 % of respondents note deterioration in water supply volume. At the same time in three project raions less than 1 % of interviewed farms note lack of water in irrigation system. Improvements are noted by every seventh respondent in Ellikkala raion, every twelfth – in Beruni raion and every sixteenth - in Turtkul. As a whole increase of volume of water in irrigation system by three project raions is noted only by 9.16 % of farms. Changes in quality of irrigation water 69.05 % of interviewed farms in project raions note no changes in quality of supplied irrigational water against 13.26 % of respondents noting deterioration of water. 15.26 % note improvements in quality of supplied water in irrigation system. Table 34 Changes in quality of supplied irrigation water in project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Quality of water increased 8,95% 14,48% 23,97% Quality of water decreased 21,91% 10,31% 6,74% There is water, but there are no changes in 68,21% 70,75% 67,79% quality of water There was and is no water 0,62% 0,56% 0 Find difficulty to answer 0,31% 3,90% 1,50% Source: Outcomes of HH survey АНТ/ Ekspert Fikri Page123 of221 The most part of respondents mentioning no changes in quality of supplied water is in Turtkul raion – 70.75 %. Deterioration of irrigation water in this raion is noted by every tenth farm against every sixth, noting improvement. No changes in Beruni raion is noted by 68.21 % of respondents against 21.91 % noting deterioration of quality of supplied water. Improvement of quality of irrigation water in the system is mentioned by every eleventh farm. In Ellikkala raion improvement of quality of irrigation water is noted by every fourth farm. The amount of respondents noting no changes of quality of water in irrigation system for the last five years makes 67.79 %. Every fifteenth farm in this raion mentions deterioration of supplied irrigation water. Changes in efficiency of drainage system operation 42.63 % of interviewed farms of project raions noted improvements in timeliness of cleaning of drainage canals. 37.89 % of respondents mention no changes in carrying out cleaning of drainage canals. Table 35 Changes in efficiency of cleaning of drainage canals in project raions for the last five years Index Beruni raion Turtkul raion Ellikkala raion Yes, is timely cleaned 20,37% 43,18% 68,91% No, is untimely cleaned 22,22% 7,80% 5,62% No changes 50,93% 37,88% 22,10% Find difficulty to answer 6,48% 11,14% 3,37% Source: Outcomes of HH survey The greatest improvements in timeliness of carrying out cleaning of drainage canals are noted by respondents of Ellikkala raion – 68.91 %. Every fourth farm of this raion mentions no changes in timeliness of cleaning of drainage canals for the last five years. Only 5.62 % of respondents consider that cleaning of canals is carried out untimely – the smallest index by three project raions. Every second farm of Beruni raion (50.93 % of respondents) notes no changes in overall performance of drainage canals. Every fourth farm of the raion notes both improvements and deteriorations in timeliness of cleaning of drainage canals for the last five years. In Turtkul raion the main share of respondents – 43.18 % - note improvements in timeliness of cleaning of drainage canals. A third of respondents mention no changes in timeliness of cleaning of drainage canals against 7.8 % of respondents noting their untimely cleaning. By the results of in-depth interviews with experts and conducted FGD in project raions obvious and dramatic improvement of condition of main irrigation system and especially, drainage system, but not inter-farm is noted. Farmer, gardener, cattle breeder, Turtkul. World Bank made a lot for improvement of our system of irrigation and drainage through its projects. Collectors are reconstructed and АНТ/ Ekspert Fikri Page124 of221 excavated. But IFIS (inter-farm irrigation system) became deteriorated, until the irrigation problem is not solved out, we cannot supply water, as these are big losses. In case our canals are not reconstructed and concreted, there will be no improvement. Deterioration of IFIS is caused by new aryks in lands of farm enterprise which leads to growth of extent of irrigation system networks and load of IFIS and IFDS (inter-farm drainage system). New irrigation and drainage system in farm enterprise are laid on soil where losses of water grow and level of ground waters, salinity of lands raises. Substantially all this is caused by division of state-farm plantations with one type of crops into many land plots with different crops. Repair of IFIS and IFDS is complicated, including that the lands adjacent to them and which should be free for machinery access, are occupied with kitchen gardens, gardens, structures that complicates access for repair. The condition of irrigation systems needs urgent updating as farm enterprise most sharply face problems with water supply which is reflected in intention of part of farm enterprise to hand over the land if water supply will not improve. These intentions can be declarative, but, nevertheless, these intentions are considered, since farm enterprise of desert zone and a part of cultivated zone assert that in the last year productivity has not «changed» or "decreased". Farm enterprises highly estimated the state of drainage systems renovated in recent years; however, they mentioned some shortcomings in quality of works performed on drainage collectors. Farmer and WUA leader, Turtkul. There is a large collector K1 along the Kaltaminor canal, - all the drainages have been cleaned and dig out, including all the small drainages, with the help of the Amelioration Fund. In the last 2 years they have done what nobody could do in the previous 10-15 years. SSG Chairman, Turtkul. Under this drainage project, there were performed works to the amount of 75 million US dollars during these 5 years. The drainage is in good condition now. Salty water is self-flowing via Akchadarya (the main south collector) into the Sub- Aral area, Zhanadarya; while in the past salty waters were flowing into Amudarya. Farmer-merchant8, Ellikkala. I cannot see collectors clogged with sand or trash now as it was in the past. АFE representative. The main drainages were cleaned a couple of years ago. Now they are clogged again. It would be nice if they clean them again this year. Miller-farmer, Beruni. Last year collectors were cleaned, and the situation has significantly improves, however, there are some flaws. For example, when they were cleaning the collector they were only cleaning one side of it on the surface, and not up to its depth. They made it look nice on one side which can be seen from the road where inspectors are driving, while the inner side was left uncleaned. Farmer fish farmer, Beruni. They’ve been cleaning properly the collectors for 2 years already; however, some places haven’t been cleaned for decades. They are digging dry places which is easier for them, but are not working in places where water has accumulated. АНТ/ Ekspert Fikri Page125 of221 Farmer, Turtkul. In some places they are making collectors too deep and all the water goes down into the earth and lands are not being watered. Miller-farmer, Beruni. As a result of the improvement of drainages our lands have dried up. Farmer fish farmer, Beruni. It would be good if groundwater is at the depth of 1.60-1.70 m. However, their level is dropping below 2 meters. Because of that, 3 days after irrigation the lands dry up again. By the results of conducted survey general situation with satisfaction of farms with irrigation water is as follows: the greatest share of respondents shows dissatisfaction with their source of irrigation water – 64.63 % of respondents. Diagram 15 Satisfaction with the source of irrigation water in project raions Source: Outcomes of HH survey The main share of farms unsatisfied with the source of irrigation water, is concentrated in Beruni and Turtkul raions. In Beruni raion about 84.57 % of respondents against 14.2 % satisfied with the source of irrigation water are not satisfied. In Turtkul raion 64.9 % of respondents are not satisfied with the source of irrigation water against 34.26 % of satisfied with irrigation water of farms. In Ellikkala raion the main share of farms is satisfied with the source of irrigation water – 58.8 % of farms against 40.07 % of the farms noting the dissatisfaction with irrigation water. The main reasons for dissatisfaction with source of irrigation water are the following:  irregularity and instability of water supply for irrigation;  low volume of supplied irrigation water; АНТ/ Ekspert Fikri Page126 of221  poor quality of irrigation water. In view of high indicators of dissatisfaction of farms with irrigation water which they use for watering of their land plots, quality and irregularity of its supplies which have direct influence on the amount of losses of farms yields, 61.16 % of respondents of project raions are concerned about current situation with irrigation water: Diagram 16 Concern of farms about the situation with irrigation water in project raions Source: Outcomes of HH survey Current situation with irrigation water concerns 95 % of all farms noting the dissatisfaction with irrigation water in project raions. Diagram 17 Concern of farms about situation with irrigation water in breakdown by project raions Beruni raion Turtkul raion Ellikkala raion АНТ/ Ekspert Fikri Page127 of221 Source: Outcomes of HH survey The situation with concern about current state of irrigation system in project raions, as well as dissatisfaction with source of irrigation water in raions, is most sharply shown in Beruni and Turtkul raion. In Beruni raion 61.42 % of respondents, in Turtkul raion – 64.35 % of respondents are concerned about condition of source of irrigation water. Along with satisfaction of the main share of farms with source of irrigation water in Ellikkala raion the concern about condition of this source is expressed by 56.55 % of respondents. As a whole in project raions 38.84 % of farms the situation of current state of irrigation system in raions does not concern. Opinions of participants of FGD and in-depth interviews showed that in raions there is also a concern of farms about land reclamation and soil improvement: SSG Chairman, Turtkul. We are consuming a lot of water, - because much water is needed for leaching and watering of lands. The potential of retention of moisture and humus on our lands is poor. Farmer, gardener, stock-breeder, Turtkul. Our soil has been depleted, - it’s dry and sandy. One has to water it four times for cotton seeds to sprout. While, say, in Andijan they would sprout after the first watering.. Farm enterprises believe that the efficiency of managing drainages could be improved if WUAs are provided with machinery for efficient cleaning of collectors. Farmer, Kaltaminor c., Turtkul. WUAs should have machinery for works on drainages; however, they do not have any machinery. 3.5 COST AND WAYS OF PAYMENT 96.84 % of interviewed farms in project raions note that cost of supply of irrigation water is calculated depending on the size of irrigated land. Table 36 Calculation of payment of farms for irrigation water supply in project raions Index Beruni raion Turtkul raion Ellikkala raion Depends on the size of irrigated land 99,69% 97,77% 92,13% Depends on volume of water consumption 0 1,39% 5,62% Depends on volume of water supply 0 0,84% 0,75% Does not know 0,31% 0 1,5% Source: Outcomes of HH survey The main share of farms in project raions pays for supply of irrigation water, operation and maintenance of irrigation canal by non-cash payment – bank transfer – according to the tariff fixed at the moment of payment – 96.32 % of farms. Payment in-kind or percent from the harvested yield is not used as payment for supply of irrigation water, operation and maintenance of irrigation canal in project raions. АНТ/ Ekspert Fikri Page128 of221 Table 37 Calculation of payment of farms for irrigation water supply in project raions Index Beruni raion Turtkul raion Ellikkala raion According to the fixed tariff in cash 6,48% 0,56% 0,75% According to the fixed tariff via bank transfer 92,28% 99,16% 96,38% According to the fixed tariff via credit card 0 0 0,37% Find difficulty to answer 0,75% 0 0 Source: Outcomes of HH survey By the results of HH survey of farms in Beruni raion 6.48 % of farms pay for supply of irrigation water, operation and maintenance of irrigation canal in cash according to the tariff fixed at the moment of payment. In two other project raions cash payment is made by less than 1 % of farms. It is caused by the fact that all farms are associated into farm enterprise – legal entities, which should make payments for delivered services via bank transfer. This condition of payment by farms for supply of irrigation water, operation and maintenance of irrigation canal in project raions provides high rates of payment among farms. Vast majority of respondents of farms pay for supply of irrigation water, operation and maintenance of irrigation canal. Diagram 18 Frequency of payment for supply of irrigation water, operation and maintenance of irrigation canal in project raions Source: Outcomes of HH survey Every third farm of project raions pays for supply of irrigation water, operation and maintenance of irrigation canal, approximately, once in three months (once a quarter) and once a year. Every fifth farm of project raions makes payment for supply of irrigation water, operation and maintenance of irrigation canal once a year. АНТ/ Ekspert Fikri Page129 of221 In Beruni raion the main share of farms (43.52 %) makes payment for supply of irrigation water, operation and maintenance of irrigation canal once a year. 38.27 % of farms pay for operation and maintenance of irrigation canal once a half year. In Turtkul raion payment for supply of irrigation water, operation and maintenance of irrigation canal once a year is made by 40.39 % of farms and 40.11 % of farms - once in three months. In Ellikkala raion the main share of farms (52.06 % of respondents) pay once in three months. Payment for supply of irrigation water, operation and maintenance of irrigation canal is made to WUA which are created by farm enterprise. Amount of contributions is determined at general meeting of members of WUA and according to cost estimates prepared in WUA. Results of in-depth interviews and FGD confirm that the amount of payment of farm for supply of irrigation water, operation and maintenance of irrigation canal depends on the size of land in farm enterprise. Payment is contributions on expenses for water supply. Almost all farm enterprise pays contributions to WUA. One of the reasons of unwillingness to pay or non-payment of contributions de facto is that some farm enterprises are in the beginning of canal or because they are growing state crops. In case of refusal of WUA to supply water to farm enterprise WUA simply receives the order from khokimiyat and has to obey to it. RAC Chairman, Turtkul. There’s an ancient saying: ‘Those in the head of water drink water, but those in the end get nothing. Farmer, cotton/corn, Beruni. I, for example, even don’t know how our WUA representative looks like. Farmer, cucurbits, Beruni. This is because you don’t grow cotton, and your farm is located near the Darya. That is why you don’t have problems with watering. While we have to deal with our WUA. Some farmers believe that those who are not paying fees should be cut off water, others believe that without water these farm enterprise will not be able to harvest yields and will not be able to pay at all. That is why they suggest that a WUA should wait until the next year and transfer the indebtedness/the fee onto the next year yield. Some WUAs believe that those who refuse to pay their fees or do not guarantee future payment should be excluded from WUA members. These WUAs are discussing such measures as exclusion from WUA membership, which are of little effect though. Farmers believe that they should pay WUA fees only if WUAs upon water delivery to farmers’ lands, – so that farmers do not to have to bear their own expenses for delivery of water. Farmer, Beruni. I’ve got my own separate canal, and I myself bear expenses for watering, - I’m pumping water with a pump, that is why I do not owe anything to our WUA. However, if the WUA installs an electric pump on my canal and maintains it, and supplies water to me this way, then I will agree to pay them. According to the Law of the Republic of Uzbekistan of 1993 «About water and water use», purchase and sale of the rights to water is forbidden. Differentiated payment for volumes of АНТ/ Ekspert Fikri Page130 of221 consumed water in the country does not exist and it is replaced by land tax for farm enterprise or water tax for DF, as well as payments to WUA for supply and management of water. Thus, per-hectare type of payment for water supply prevails which is caused by lack, absence or inefficiency of measuring constructions and devices. The second way – by measuring devices and the third way - operating time of the pump is measured and multiplied by its throughput capacity in cubic meters. Farm enterprises think that while the system of measurement of water volumes at hydro stations is not enough accurate - the per-hectare type of payment with adjustments/coefficients for pump or gravity irrigation is the most acceptable. Limits of water and fixed rates of payment for water are calculated for state order production; accordingly payment for water supply from the state credit for production of state order (about 3 % of the credit sum) is made. But for production of repeated crops or not for the state order the sequence of irrigation and prices are set "informally". Farm enterprises think that farm enterprise should make the additional contract with WUA for supply of water repeated crops and pay for its services in transparent manner and fair according to WUA charter. The law and the status of non-governmental non-profit organization allows WUA to receive payment for services in any form and leaders of WUA, farm enterprises think that during the establishment and weakness of WUA types of payment should be diversified and combined for accumulation of resources at WUA and adaptation to solvency of WUA members. Farmer, Beruni. Payment should be determined by the quality of land, by remoteness from the canal, requirement for water for washing of soil, availability of pumps at farm enterprises as those who is closer to the canal receive more water and in time, and those who is remote - risk to lose a part or all crops. Among the proposed types of payment are: 1 Cash for volume and differentially depending on quality of soil, pump or gravity irrigation; 2 Part of a crop/income; 3 Combination from the previous types of payment Some farmers entrust the second type of payment because consider more interest from WUA in incomes of farmers in this case. However some leaders of WUA are inclined to reception of the fixed share of the state credit from farm enterprise for production of state order and are against the second type of payment as they expect special attention to from control, tax, and other bodies after that which interferes the possibility of WUA to become a basis of industrial and marketing cooperation of farm enterprises. Almost all respondents think that in case of requirement for additional water over-limit water should be supplied at overprice and this is already the case in some WUA. In case of non- delivery of the demanded volume of water payment for supply of water should be underestimated from the previously discussed cost for supply, and farm enterprise which irrigate the land with pumps, should have benefits. Almost all farmers and leaders of WUA think that WUA should have the fund of encouragement and measures should be taken for motivation of farm enterprise to save the water. This fund can АНТ/ Ekspert Fikri Page131 of221 be created at the expense of penalties for excessive consumption of water and/or at the expense of penalties «for theft» waters. The majority of farmers assume that finally they will face growth of payment for water and are ready to it. They make one condition – substantial increase of prices for production for the state, at least, twice or decrease in tariffs for electricity since PS in raions are converted from CLM to electricity. Farmer, (cotton, orchard, silkworms), Ellikkala. Our life has become much easier after they installed electric pumps. They started doing this about 3 years ago. In the last, it was hard to find diesel fuel. Farmer-F, Amudarya c., Ellikkala. If you save electricity you are not going to have too many expenses. Farm enterprises often participate in payment for irrigation beside payments to WUAs. These increasing expenses are for cleaning of their own and inter-farm irrigation and drainage systems, for farmers’ pumps and electricity for them. SSG Chairman, Turtkul. Excavators are being ordered from the city. Farmer, gardener, stock-breeder, Turtkul. А farmer has to pay for work, and find diesel fuel and motor oil, and provide meals (lunch, dinner…) etc. Farmer, multibusiness, Ellikkala. I cleaned myself both the canal and the drainage collector. I cleaned 1,200 meters. I paid 1 million 800 Soums, including the expenses for diesel fuel for machinery. Farmer, multibusiness, Ellikkala. I paid 3 million 600 Soums. 5 years ago expenses were not so high because prices were lower. Farmer, gardener, stock-breeder, Turtkul. In the last 5 years, volumes of water have reduced by 50%, and expenses, - vice versa, - have increased because we are paying a lot for electricity. Conflicts during water distribution Farm enterprises and HHs mentioned cases of conflicts related to the distribution of water and underflooding of neighboring lands by those farm enterprises who are using excessive amounts of water, – for example, for production of rice or other crops. Farm enterprises believed that the WUAs’ potential in prevention of such conflicts is not being used efficiently. Farmer-F, Turtkul. It’s not possible to divide water without screams and rows (everybody laughing). АНТ/ Ekspert Fikri Page132 of221 3.6 FEEDBACK BETWEEN SUPPLIERS AND USERS South Karakalpakstan Water Resources Management Improvement Project (SKWRMIP) is also aimed at strengthening of feedback between users and irrigation water suppliers. It is caused by need of strengthening of interaction in institutional environment and involvement of users of WUA services in feedback. Absolute majority of farms of project raions are members of WUA. Current structure of irrigation water management in project raions is shown in the Figure below: Figure 3Scheme of irrigation networks management BISA ISA ISA ISA WUA WUA WUA HH as associate members via Farmers of all types RAC representative I&D systems are maintained by Hydro-melioration Facilities Department and Hydro-Melioration Expeditions. The latter controls the groundwater level, and the first performs works at IFDS. The same organizations are providing services to WUAs and farm enterprises. From the participants of FGD and in-depth interviews point of view, WUA is a key institution for the Project. According to the Regulations on WUAs, the main directions of WUAs’ activities should be:  Regulation of water management relationships between water users;  Management of water resources within the served territory;  Organization of water delivery to water users based on market principles;  Introduction of up-to-date water-saving technologies;  Maintenance of waterworks facilities being in their balance sheet and keeping them in working condition, and taking measures aimed at their efficient use;  Development of plans of water use in accordance with the allotted limits of water; АНТ/ Ekspert Fikri Page133 of221  Provision of services to water users as per signed agreements;  Adherence to the principle of water use priority in their activities According to results of conducted survey WUA carries out the following activity: Table 38 Activity of WUA in project raions Name Beruni raion Turtkul raion Ellikkala raion Management of irrigation systems and distribution of water 89,81% 71,87% 92,13% between WUA members Management, maintenance, rehabilitation, repair and 21,30% 35,38% 26,97% improvement of irrigation systems Study problems and shortcomings of Your farm in the sphere of 16,98% 19,50% 36,70% agricultural production and water use Distribution of bulletins in language available to farmers before each considerable agricultural action, namely before plowing, 16,67% 15,88% 30,71% sowing, fields breakdown into irrigation plots, irrigation, application of fertilizers and other works Monitoring of indicators of efficiency of water and land at plots of 10,80% 23,96% 26,59% the farms located in the territory of WUA Rendering of consulting services to Your farm 8,64% 17,83% 27,34% Find it difficult to answer 5,56% 5,85% 4,12% Source: Outcomes of HH survey WUA activity in project raions is generally aimed at management of irrigation systems and water distribution between its members – 83.68 % of respondents of project raions. WUA also carry out activities on management, maintenance, rehabilitation, repair and improvement of irrigation systems in project raions. In Turtkul raion this WUA function is noted by every third respondent, in Ellikkala raion – every fourth, in Beruni raion – every fifth respondent. According to every third respondent of Ellikkala raion WUA is also studying problems and shortcomings of farms in the sphere of agricultural production and water use, and also disseminates bulletins in language available to farmers before each considerable agricultural action, namely before plowing, sowing, fields breakdown into irrigation plots, irrigation, application of fertilizers and other works. WUA also render consulting services to farms in project raions: АНТ/ Ekspert Fikri Page134 of221 Table 39 Consulting services of WUA in project raions Name Beruni raion Turtkul raion Ellikkala raion Information and legal support of farmers and increase of their 16,36% 19,78% 48,69% knowledge Information on preparation of lands for sowing of crops 11,73% 10,86% 47,19% Planning of irrigation and selection of optimum technological 10,19% 19,78% 48,69% scheme of irrigation Planning of agricultural activity for receiving the maximum profit 8,64% 13,65% 32,96% from unit of area Selection of crops which are most favorable for this zone and 8,02% 11,70% 35,21% for the certain period of time Introduction of new techniques on management of use of 13,58% 30,92% 33,71% irrigation water and improvement of its efficiency Training on water saving methods of irrigation and application 11,73% 31,48% 43,45% of new technology of irrigation Search of possibilities to minimize expenses during production 5,56% 13,37% 27,34% of crops Search of possibilities of achievement of potential efficiency (on 3,40% 6,13% 23,60% the basis of the field record) Marketing of sale, supply and service issues 3,40% 1,11% 8,99% Find it difficult to answer Source: Outcomes of HH survey WUA of Ellikkala raion render consulting services most actively. The main share of respondents of project raions takes part in WUA consulting service, trainings and seminars. However the share of such respondents in project raions does not exceed 60 % of respondents. The most active participation is noted by respondents of Ellikkala raion – 56.93 % respectively. Despite insufficient efficiency of WUA, farms declare that need WUA which for the moment are mainly aimed at servicing of farm enterprises and partly DF. DFs are not aware of WUA as their interests in WUA are represented by leaders of RAC. 65.26 % of respondents declared that need consulting services, trainings and seminars of WUA. The majority of such respondents are in Ellikkala raion – 76.78 % of respondents. In Turtkul raion the share of such respondents makes 67.69 %, in Beruni raion – 53.09 %. АНТ/ Ekspert Fikri Page135 of221 Table 40 Required consulting services of WUA in project raions Name Beruni raion Turtkul raion Ellikkala raion Information and legal support of farmers and increase of their 28,09% 26,46% 46,07% knowledge Information on preparation of lands for sowing of crops 20,06% 16,43% 39,70% Planning of irrigation and selection of optimum technological 20,99% 25,63% 49,06% scheme of irrigation Planning of agricultural activity for receiving the maximum profit 10,19% 20,06% 33,33% from unit of area Selection of crops which are most favorable for this zone and 12,04% 17,55% 34,08% for the certain period of time Introduction of new techniques on management of use of 25,93% 21,73% 30,34% irrigation water and improvement of its efficiency Training on water saving methods of irrigation and application 32,41% 39,55% 32,96% of new technology of irrigation Search of possibilities to minimize expenses during production 15,43% 15,88% 29,59% of crops Search of possibilities of achievement of potential efficiency (on 8,33% 4,46% 22,47% the basis of the field record) Marketing of sale, supply and service issues 7,10% 4,74% 13,86% Minimization or prevention of pollution, waterlogging and soils 12,96% 7,80% 18,73% salinity Source: Outcomes of HH survey The most required directions of consulting services, trainings and seminars of WUA for farms of Beruni raion are: i. Training on water saving methods of irrigation and application of new technology of irrigation – 32.41 % of respondents; ii. Information and legal support of farmers and increase of their knowledge – 28.09 %; iii. Introduction of new techniques on management of use of irrigation water and improvement of its efficiency – 25.93 %; iv. Planning of irrigation and selection of optimum technological scheme of irrigation – 20.99 %; v. Information on preparation of lands to sowing of cultures – 20.06 %. In Turtkul raion the most required consulting services, trainings and seminars which are necessary for raion farms are: i. Training on water saving methods of irrigation and application of new technology of irrigation – 39.55 % of respondents; ii. Information and legal support of farmers and increase of their knowledge – 26.46 %; iii. Planning of irrigation and selection of optimum technological scheme of irrigation – 25.63 %; iv. Planning of agricultural activity for receiving the maximum profit from unit of area – 20.06 %. The respondents of Ellikkala raion note that the most necessary consulting services, required for their farms, are the following: АНТ/ Ekspert Fikri Page136 of221 i. Planning of irrigation and selection of optimum technological scheme of irrigation - 46.09 % of respondents; ii. Information and legal support of farmers and increase of their knowledge -46.07 %; iii. Information on preparation of lands to sowing of crops – 39.70 %; iv. Selection of crops which are most favorable for this zone and for the certain period of time -34.08 %; v. Planning of agricultural activity for receiving the maximum profit from unit of area – 33.33 %; vi. Training on water saving methods of irrigation and application of new technology of irrigation – 32.96 %; vii. Introduction of new methods on management of use of irrigation water and improvement of its efficiency – 30.34 %. Consultations, trainings and seminars of WUA which are carried out for farms of project raions, allow to raise level of knowledge and awareness of farms concerning the most effective maintenance and minimization of risks in production/cultivation of agricultural production and animal husbandry. In-depth interviews and opinions of participants of FGD reflect the following difficulties WUA face in their activity:  Amount of contributions of farm enterprise is not enough for WUA to purchase transport and machinery for operational management of water, IFIS and IFDS;  Low level of income of farm enterprise does not allow to increase WUA potential;  The existing legislation is developed inadequately to the level and requirements of development of WUA. The status of Non-governmental Non-profit organization contradicts requirements of WUA and farmers for development of commercial relations between them. Because of uncertainty and institutional weakness some farm enterprises think WUA should become commercial organizations, and another part – state ones;  Farm enterprises state that WUA legislation should be amended and reviewed and «Law on WUA» should be adopted. However lawyers state that Laws allow WUA to operate freely, but this freedom is interfered by instructions of other organizations, with which WUA cooperate;  WUA are created and managed not by farmers themselves, but experts of RMAWR and khokimiyats. Therefore a part of farmers think that WUA are not necessary in the existing form and they substitute RMAWR functions. Water management in WUA By the results of in-depth interviews and conducted FGD weaknesses of WUA institutes and environment for its activity are caused by the following reasons and consequences, namely:  Shortcoming and instability of water supplies for farm enterprise and DF which are located at the end of irrigation system or on elevations;  Absence or lack of limits of water (norms of supplies) for repeated crops;  Depreciation and destruction of suspended flumes in irrigation system, sedimentation, sloping of canals laid in soil and fall of a part of concreted canals;  Water losses, raise of level of ground waters and drainage system overflow by the reasons in point 3; АНТ/ Ekspert Fikri Page137 of221  Lack of machinery for cleaning of inter-farm irrigation anddrainage system, and labor force - for cleaning of irrigation and drainage system inside farm enterprise and DF;  Need in use of pumps and payment for electric power for lifting or delivery of water and lack of possibility to compensate these expenses at the expense of the prices for production, which is bought from these farms at the same prices, as in farms with gravity irrigation;  Mistakes of designers or insufficient participation of farm enterprise in design and execution of works on irrigation and drainage system;  Insufficient authority of WUA and, consequently, absence of system of encouragement for water saving and penalties for surpluses in water consumption. Need in improvement of institutional role of WUAs Some farm enterprises believe that under conditions when the state plays a decisive role in planning and purchases, it is the state bodies that should reinforce WUAs. Farm enterprise, Beruni. Our farmers are not on such a level when they themselves should be concerned over the development of WUAs. Since WUAs have been created ‘from the above’ they should be supported ‘from the above’ as well. Among farm enterprises’ suggestions as to how to improve the efficiency and usefulness of WUAs are the following: 1 WUAs should have enough machinery and equipment for serving IFIS, IFDS and PS; Farmer F, Beruni, city. One woman (a farmer) says the right thing. When we were explained by the khokimiyat that WUAs were being set up, they said that one of the WUAs’ tasks would be cleaning of our canals and drainage system. However, we used to clean in the past, and are cleaning now, all the canals and collectors ourselves because they do not have any machinery for that. Farmer, Turtkul, Buston canal. Pumps and their maintenance should be on the balance sheet of the state, otherwise farmers or WUAs won’t manage this, and everything will fall to pieces eventually because fixing a pump could cost 5-6 million Soums. They’ve already started to transfer pumps to the PS Department. 2 WUAs should more properly inform water users on forecast and planned water distribution; Farmer, Kaltaminor, Turtkul. Their main role is to warn farmers in advance about the days of irrigation. Their role is prompt information of farmers and distribution of water according to schedule and by days, - for the optimization of watering and water saving. 3 Water should be distributed honestly and fairly; 4 To improve efficiency and transparency of measuring the consumed water; 5 To combine separate groups of farm enterprises into a common network of serving IFIS and IFDS; 6 To enhance farm enterprises’ rights in disposal of their produce and provide them guarantees of sustainability of land owning; АНТ/ Ekspert Fikri Page138 of221 7 To organize irrigation by the ‘ailanma’ principle, – i.e. from the tail-end of an irrigation system. Farm enterprises believe that the achievement of the above tasks will not be possible without investments into WUAs and, especially, without granting them loans and leasing based on water users’ consolidated responsibility. In case there are doubts as to the ability to pay off loans, the farm enterprises suggest that loans or leasing services be provided to groups of WUAs having joint responsibility and using common irrigation and drainage systems. This type of loans/leasing will allow to use machinery more efficiently, and will lay a foundation for consolidation and cooperation of farm enterprises with WUAs in the water related issues. Majority of farm enterprises believe that prospects for WUAs raise no doubts, however, if WUAs are not supported in their institutional development they will simply transform into quasi-state departments of ISA or RMAWR Participants of meetings – consultations and seminars presented the proposals on improvement of activity of WUA, increase of its potential in raions: Participants of meeting in Beruni raion were sure and came to a consensus that without effective management of water between users and increase of potential and role of WUA, the effect from construction of the canal will be lower than the possible. For this purpose they recommended the following:  First of all - economical use of water and introduce graduated scale of sanctions for non economical use and encouragement for economy of water. For today we have a lot of losses. According to our data today losses make 44 % because of water filtration from canals to the soil.  Introduce water saving technologies, including drip and stream system of irrigation;  Provide farmers with guarantees of reliable supply of water and/or crop insurance  Increase the rights of farmers in decision making on placement and crops rotation. We make decision on which crops to cultivate at the last minute when it becomes a bit clear about expected volumes of water.  Increase the rights of WUA in relations with farmers; strengthen legal, financial, technical and qualifying potential of WUA and their employees. We have the biggest problem – collection of payments for our services. It is difficult to collect money from farmers. Prices are not high, but they do not pay, and we cannot cut them water since we are ordered to supply water even if the farmer does not pay contributions to WUA. АНТ/ Ekspert Fikri Page139 of221 WUA have no equipment. Representatives of WUA should travel constantly over the territory, and they have no transport for this purpose. And everything again hinges on collection of payments from farmers for WUA services. WUA should be headed by more professional people, increase payment to them since without it they will not be able or will have no will to work. Who will work now without money? All should feed their family. Participants of meetings in Turtkul raion discussed the following proposals:  Measures are necessary for effective use of canal and investment of water users into water saving constructions and technologies. There are no hydraulic constructions for on-farm canals. They should be built for management of water and its economy.  Population and farmers should be trained in management of water and involved in it. If people do not use water effectively and rationally, level of ground waters will increase and there will be salinity of lands.  Management of water between users should be centralized in WUA while now each farmer operates water intake from irrigation system by pumps, in which let partially, but the need remains. There is a saying «Suv boshidagi suv ichadi, ohiridagi uv ichadi», i.e., the one who is at the beginning of water drinks water who is at the end of aryks, drinks poison. Under the law distribution and supply of water should be managed by WUA since electric pumps and diesel pumps are on balance of WUA which had huge debts for electricity and fuel. Now their debts are frozen, and pumps are given for management by farmers themselves.  WUA capacity should be strengthened by the following measures. In the law it is stated that WUA should receive monthly contributions from farmers for the rendered services. During 8 months farmers should pay for WUA services at the expense of soft loan, and the rest of the time – from their income. But only during 3 months money are transferred to farmers out of a soft loan and WUA receives only 15-20 % of contributions. The contractual relations between WUA and farmers should be established and supervised by the Ministry of Justice and the Ministry of agriculture and water resources. Tax inspections receive land tax from farmers and it should be arranged in such a way that farmers pay water tax to inspection, and it, in turn, transfer this money to WUA. Only after collecting of revenue WUA will render services to farmers: will clean canals, pumps, etc. АНТ/ Ekspert Fikri Page140 of221 WUA should have the right of compulsion of farmers for payment for WUA services. Timely pay to WUA. On paper WUA is the owner of water, but cannot manage! Because, if it wants to close water for someone, any "high" person will come and order to open water and WUA is compelled to obey it.  Farmers should have available services of the organizations which have excavators, mechanisms to level the earth and participants gave examples of such organizations. It is necessary to make the proposal in the project of the World Bank to include also machinery for WUA to project expenses. It is necessary for the subsequent operation, maintenance of condition and repair of irrigation and drainage systems. If today we construct the canal, and tomorrow this water cannot flow by on-farm canals, the benefit from construction of Buston canal will be zero. In Amudarya raion there is a WUA which was given credit for purchase of machinery and pays back debt at the expense of contributions from farmers. In Beruni raion MTP was created, it was given 8 big tractors, seven laser graders, ten cultivators. Farmers could sign contracts with MTP. MTP is state organization – serves all three raions. Previously there were projects when WUA gave excavators. It was during WUA creation. Participants of a meeting in Ellikkala raion recognized that management of water suffers such challenges, as illegal seizure of lands and water loss for their unforeseen irrigation. People obtain a land plot for housing construction of 6 or 9 hundred square meters, but behind this plot they occupy half a hectare in addition. But they need water for it and water should be economized. They show consumption and payment for water only for those 6-9 hundred square meters. Therefore water limit is not sufficient. Participants of a meeting suggested to take measures for those canals to which water will not be supplied by gravity for increase of water management efficiency. Where water does not flow by gravity there are no regulating gates with which it would be possible to regulate level and water volume. Therefore water does not reach end farms and lands. It is necessary to pay attention and assign finances for construction of gates at adjacent canals, otherwise again water becomes not manageable and will be used not effectively. Water management should be made by WUA with extremely insufficient potential and whose potential was involuntarily undermined by illegal taxes. WUA has no necessary machinery, base. And if there is no machinery, then there is no water as well. The main reason of non-development of WUA is a problem of payment of contributions – farmers do not pay. And they do not pay because they have no money. АНТ/ Ekspert Fikri Page141 of221 WUA have NGO status, but we did not know that NGO should be exempted from taxes, and tax inspectors did not know about it. Until the Ministry of Justice has not explained it – several years WUA were withheld taxes which are still subject to return. For example, tax inspection decided that WUA resold electricity, and therefore had income. That’s why they paid taxes. WUA receive certain percent from the soft state loan (tranche) for farmers but as soon as money comes to WUA, tax inspection withholds taxes immediately. After that almost nothing remains for WUA. Sources of information The main source of information on agricultural issues in project raions is WUA – 63.79 % of respondents. 47.89 % of respondents note that information on agricultural issues they receive from khokimiyat of the raion. Diagram 19 Main source of information on agricultural issues in project raions Source: Outcomes of HH survey In Beruni raion the main source of information on agricultural issues is khokimiyat – 54.01 % of respondents. 45.37 % of respondents mention WUA as institute providing information on agricultural issues. In Turtkul and Ellikkala raions the main source of information on agricultural issues is WUA – 71.31 % and 76.03 % of respondents respectively. Khokimiyat as the source of information is mentioned by 34.54 % of respondents of Turtkul raion and 58.43 % of respondents of Ellikkala raion. АНТ/ Ekspert Fikri Page142 of221 Data on irrigation water supply and drainage waters in project raions is also provided by WUA – 63.16 % of respondents of project raions. 39.68 % of respondents mention khokimiyat as a source of obtaining information on irrigation water supply and drainage waters. АНТ/ Ekspert Fikri Page143 of221 Diagram 20 Main source of information on irrigation water supply and drainage waters in project raions Source: Outcomes of HH survey In Beruni area the main share of respondents notes that data on irrigation water supply and drainage waters they receive from khokimiyat – 53.09 % of respondents. 43.21 % of respondents note that data on irrigation water supply and drainage waters are provided by WUA. In Turtkul and Ellikkala raions the main source of information on irrigation water supply and drainage waters is WUA – 70.75 % and 77.15 % of respondents. Taking into account the obtained results one can say that efficiency of WUA activity in Beruni raion is lower in comparison with efficiency of WUA activity in Turtkul and Ellikkala raions. It is caused by the fact that WUA is an institute, development of which began quite recently and today it requires actions for increase of institutional role of WUA in project raions. Inadequate functioning and problems with operation of irrigation and drainage systems require timely elimination and solution. 51.26 % of respondents with the purpose to eliminate problems in operation of irrigation and drainage systems address WUA. 72.11 % of them are in most cases satisfied with the results of their appeals. In Turtkul and Ellikkala raions farms address WUA – 61.28 % and 72.28 % of respondents out of which 72.98 % and 84.27 % have been satisfied with the results of appeals. In Beruni raion only 22.84 % address WUA out of which 61.11 % of addressed have been satisfied with the results of appeals. 58.33 % of respondents do not address anywhere with the АНТ/ Ekspert Fikri Page144 of221 purpose to eliminate problems in operation of irrigation and drainage systems. It is caused by low institutional role of WUA in the raion, as well as low activity of the population in case of occurrence of necessity to solve out arising problems in operation of irrigation and drainage systems. Diagram 21 Appeals of farms with applications, claims and requests to eliminate problems in operation of irrigation and drainage systems in project raions Source: Outcomes of HH survey According to the obtained results of in-depth interviews and FGD farm enterprises’ associations and khokimiyats are regularly conducting or organizing meetings where farm enterprises are being informed on new laws, cotton or wheat varieties, agronomic technologies, etc. Farmer, Kaltaminor c., Turtkul. Last year, in February, the Ministry of Agriculture and Water Resources conducted training of farmers in farming, water economy, cotton growing and legumes. Farmer, Kaltaminor c., Turtkul. In recent years, they organized training seminars in colleges, technical schools explaining which works and when we should perform, and, on the whole, devoted to agricultural works. Experts from Tashkent and Nukus are coming to deliver lectures in agriculture, stock-breeding, cotton, etc. АLFs, Turtkul. Some farmers are not able to get a good crop because they don’t know when and how they should irrigate their lands, and do not know how to control the groundwater level. Farm enterprises state that there have been created, – officially or unofficially, – networks where farm enterprises could turn for services to different specialists if they need to develop a business-plan or a contract, to receive consultation in land treatment, or access to information АНТ/ Ekspert Fikri Page145 of221 on markets, etc. Farm enterprisesusually pay for such services and consultation, – for example, to accountants, bank and RMAWR employees Entrepreneur/merchant2, Ellikkala. They have already created an Information Center for entrepreneurs. They’ve developed their own programs. There are standard documents there. The employees of this Center are providing assistance to us. Representative of the Chamber of Commerce Information Center. We are providing assistance to entrepreneurs in finding solution to their problems. We are helping them with advice, telling them how to get a loan. We are assisting them from the moment of registration of their enterprises up to liquidation. Farm enterprises and HHs are willing to obtain the following information and knowledge: 1 Water supplies forecasts; Farmer, cotton, stock-breeder, Beruni. We don’t know why there was almost no water in our river. It’s only people ‘up there’ know that. Farmer, Kaltaminor c., Turtkul. Last year they had warned us in advance that there would be shortage of water, but this year they hadn’t. 2 New water saving and agricultural technologies; Farmer, Turtkul, Buston canal. Sattor-aka, - a scientist-agronomist, a specialist in agriculture, - is always reading literature looking for new information. However, both farmers and the population, - we all, - need to know about new technologies. There must be found ways to inform people on all these innovations on a daily basis. 3 Information on the Project, its aims and execution methods, the progress of works and the results, to hear and participate in discussions devoted to the Project, be able to express their own opinions; Farmer, gardener, stock-breeder, Turtkul. First of all, we need to learn the details of this Project. Below are the topics in which farm enterprises would like to get more knowledge. 1 Development of business-plans, including for investing own means into the diversification of crops and non-rural entrepreneurship; Farmer-merchant5, Ellikkala. Money should always work. If it’s been hidden out at some secret place in your house you’re not going to win. Once you get a profit you should invest it in something else. Entrepreneur/farmer2, Ellikkala. Some farm enterprises are getting a loan but then are getting involved into some monkey business or go bust. 2 Processing and marketing of sales of production in the foreign market; Farmer-F, Turtkul. On processing of produce, on the available possibilities. Farmer-lemon greenhouse, Beruni. We need ties with foreign entrepreneurs. 3 Purchases of machinery and equipment with loans and leasing, and their efficient use; АНТ/ Ekspert Fikri Page146 of221 Farmer, Kaltaminor c., Turtkul. We need information on new machinery that appears in the market. 4 Legal knowledge; RAC Chairman, Turtkul. Each day there are being issued new laws and resolutions. Farmers need to know the laws and all the news in the agricultural sector. They need support. Farmer, gardener, stock-breeder, Turtkul. There need to be organized training seminar. Farmers are not being informed on all these new laws. 5 Computer and Internet use skills, and skills of use of special software for entrepreneurs and farmers; Note of the author of the Report: a program ‘Berator’ has been developed in Tashkent in the Russian and Uzbek languages. This program has been simplified for a common use, and, depending on these or those indicators of farm enterprises’ activities, it applies these or those instructions and laws itself and generates balance sheets and other documents without the need to learn these instructions and laws. However, farm enterprises are not quite aware of this program. This program should probably be disseminated on CD discs and/or as printed manuals for users. It has been designed for enterprise managers and accountants of non-farming enterprises. 6 Skills of maintenance and improvement of soil quality and its productivity. Farmer, cotton/corn, Beruni. Besides, we, - gardeners, - need to exchange experience with each other, too. If, For example, there are efficient orchards somewhere which we would like to see and learn their methods, and use their technologies in our farms. There’s a plot of land with the area of 15 ha adjacent to my farm. They’ve allotted it for gardening. The land is very good there. However, they are growing cucurbits there. АНТ/ Ekspert Fikri Page147 of221 CHAPTER IV PROPOSED OPTIONS ON WATER RESOURCES MANAGEMENT IMPROVEMENT IN SOUTH KARAKALPAKSTAN 4.1 VARIANTS OF FEASIBILITY STUDY According to the feasibility study, various options of improvement of water resources management in South Karakalpakstan were considered and estimated. In each option, the description of civil (capital) works, requirements for operation and maintenance of executed works, and also the important issues related to the proposal is given, each option was summarized, at the end they were compared and the most optimum options which are options A-1 and A-2 according to the feasibility study were determined, description of these options is provided below. Option A-1: Buston canal (Q=105m3/s) Option A-1 includes construction of a new concrete-lined canal 70-km long which will take water from the tail-end section of the Right-bank canal, with major outlets, to supply water to the northern part of Ellikkala raion and the whole Beruni raion. Total discharge of the canal will be 105 m3/s and will be located between RBTC and Naiman-Beshtam PS (Buston Canal). According to A-1 option, the main canals Bogyap (now 45 m3/s) and Kelteminar (now 30 m3/s) become local distributive canals along Pakhtaarna and Buston canals, with design discharge of 5 and 7 m3/s respectively. These canals should be re-profiled and expanded in order to create hydraulically effective canals which will be capable to operate drainage outlets along their length, by gravity. In this situation, these canals flow by excavated canals, and almost all outlet canals are mechanized. АНТ/ Ekspert Fikri Page148 of221 Figure 4Variant A: Proposed Buston canal (i) The scope of construction works stipulated by this option includes the following: Eastern section of Buston canal: АНТ/ Ekspert Fikri Page149 of221 - Construction of a 35-km canal, 25 km of which run through the desert. - Consumption at the head works of the canal will be 105 m3/s. - Along this route, the existing canal was built in earth with the consumption of 55 m3/s, however, it requires significant re-profiling to supply new hydraulic systems with water. - The planned canal will be concrete-lined, with proper drainage in its base. Installation of three major waterworks is stipulated. Western section of Buston canal: - Construction of a 34-km canal running mostly through agricultural lands. This is a completely new construction. - Consumption at the head works of this section of the canal will be 55 m3/s. - It will comprise small waterworks - outlet works and two major works on the canals. - 17 highway bridges will be built, two pedestrian crossings and 9 inverted siphons, four of them on major collectors. - The end tail will be built on the river as a result of small works on re- profiling of the short intake channel of Naiman-Beshtam pumping station. Pakhta-Arna main system: - The area to the south of Buston canal will require major filling to change the section in accordance with new, significantly lower consumption. - A new tail end about 1.75 km long will be built at RBC from Sta.38 up to the river, via the fields, with consumption of 60 m3/s, – to maintain minimum consumption at RBC. Option A-2: Buston canal (Q=80m3/s) During the steering mission of World Bank in September, 2011, it was requested to define possible methods to reduce head consumption of Bustan canal. After discussion with interested parties the hybrid option which is updated A-1 Option (previous Option A) was considered. The main difference between sub-options of Option A is that: under this A-2 Option, tail ends of the main canals Bogyap and Kelteminar will be connected back with Buston canal, thus, allowing water flow to the western borders of Buston canal through Pakhtaarna system. Therefore design capacities of Bogyap and Kelteminar canals will be 20 m 3/s and 17 m3/s respectively. It will cause difference in size of replaced constructions. This option does not propose to level canals with concrete because of potential cost. And under both suboptions of Option A, bridges along Pakhtaarna, Bogyap and Kelteminar canals should be replaced to correspond to higher water level required for supply of neighboring fields. Both for A-1 option and A-2 option re-profiled sections in canals Bogyap and Kelteminar will be developed so that to correspond to the laid bed of existing canal. АНТ/ Ekspert Fikri Page150 of221 Benefits of A-2 variant are the following:  Scope of works on reshaping of Pakhtaarna, Bogyap and Kelteminar canals will be reduced as high speed of discharge in these canals in Option A-2 means reduction of refilling volumes. It will allow to reduce not only cost, but also potential social consequences of placement of pits for a source of filling material;  Consumption at head works of Buston canal should be reduced to 80 m3/s;  Operation of Pakhtaarna, Bogyap and Kelteminar canals becomes more flexible as they are capable to operate with higher flow speed for provision of commanding and accessibility without additional water intake;  There is lower risk of sedimentation due to stagnant waters at tail-end sections of Bogyap and Kelteminar canals as transit flow will be kept;  In the periods of low consumption there is a possibility to entirely close entry sections of Buston canal in order to provide their maintenance. Shortcomings of Variant A-2 are the following:  This option increases complication of operation of canals’ network. In particular, there is a risk of "transit flows» in Kelteminar and Bogyap meant for Buston canal, drained without the permission by farmers of these canals;  There is a risk of washing out of solid sediments from Kelteminar and Bogyap canals into Buston canal. It is supposed to choose A-2 Option as this option increases flexibility of operation and maintenance, and offers lower price. The risk of an unauthorized water intake can be mitigated by improvement of preparation of establishments on water resources management, and the risk of sedimentation can be reduced by providing higher design speed of flow in Buston canal, than the design speed of flow in earth canals. 3 Table 41 Design flow speed of canals in m /s: Name of canal Option A-1 Option A-2 Pakhtaarna 30.6 56 Bogyap 5 20 Kelteminar 7 17 Buston (with operating Yanbash canal) 105 80 Buston (without operating Yanbash canal) 130 105 Source: Project feasibility study Option A in particular A-2 Option, and not A-1 option is the most preferable out of all options proposed and carefully studied in feasibility study. There are still issues concerning resettlement along the canal route, and lands for pits as farmlands will be mainly affected and to much less extent gardens and dwellings. Main construction of Buston canal is big work, but water should not be supplied via canal until it is not complete. Considering that canal route is generally not connected to the route of existing canals, it will allow speeding up construction and reducing expenses; also it reduces risks of failures in irrigation. Existence of new, separate main canal will considerably facilitate management as there will be no direct tertiary outlets from the canal АНТ/ Ekspert Fikri Page151 of221 (as in case with the present existing canal) which will allow even more simple distribution of water between secondary canals. However the Buttermilk-arna, and a source of a filling material for this purpose will be much more difficult to reduce system. It is very important, that work was spent on this system if isn't present, possibly, there will be considerable periodic difficulties in maintenance service of these old main channels. Process of maintenance of a natural silting has been rejected, as it can't be carried out during duration of the project. Though sources and transportation of a material will demand very careful management and will lead to some infringement, it can be settled within the limits of the project. The purpose of these works on reduction not to leave any negative consequences for local population after the project termination. However it will be much more difficult to reduce Pakhtaarna system, and a source of filling material for this purpose. It is very important, that work will be carried out for this system if not, probably, there will be considerable periodic difficulties in maintenance of these old main canals. Process of maintenance of natural silting has been rejected, as it cannot be carried out during the project. Though sources and transportation of material will require very careful management and will lead to some deterioration, it can be settled out within the project framework. The purpose of these works on reduction is to leave no negative consequences for local population after project termination. 4.2 PROPOSALS OF PARTICIPANTS OF MEETINGS AND SEMINARS IN PROJECT RAIONS Technical proposals of stakeholders and beneficiaries in Beruni raion: During discussion the following proposals of meeting participants were presented:  It is necessary to connect Buston canal with Ishan-yab canal;  Ensure lack of water filtration from the canal and stability of water level in the canal for protection against the subsequent underflooding or increase of level of ground waters; The most important thing is no filtrations of water from the canal. After several ten years concrete may burst. In 1991I also participated in construction of one Buston canal, there was even a water-proof film under concrete, but already in some places concrete leaks water. If there will be strong frosts, concrete may crack.  For water level regulation in the canal to build along the canal route something like small buffer reservoirs which can be used for fisheries. In order to provide water intake when needed it is necessary to construct something like reservoirs in several places. If water constantly arrives to our minor canals in large volumes, it will harm us. We will not be able to stop it. As a result quality of the soil on our fields may deteriorate. АНТ/ Ekspert Fikri Page152 of221  Speed up the beginning and construction terms since farmers and the population wait for sustainable water supplies for a long time. Proposals on interaction of canal with irrigation and drainage system During discussion it was noted that simple construction of canal without improvement of structure and adaptation of irrigation and drainage system to the canal will be inefficient and even may cause damage to farmers and households. Facilities at irrigation system and irrigation system themselves are old, depreciated and canal cross-section is damaged, there are such ones we do not use at all. Works on cleaning of drainage system in our raion are not yet complete. Besides, there are separate places where it is difficult to improve drainage system. Proposals on infrastructure and environment Participants of a meeting proposed the following:  To build roads with solid pavement from two sides of the canal or to place pedestrian crossing over the canal and road bridges closer. When the project without concrete fixing was planned, the road was assumed at both sides. But after the decision on concreting of the canal it was decided to asphalt one of the sides. It is supposed to reconstruct and to construct anew only 30 bridges. Difficulties with passing of machinery, workers, population from one bank to another may occur. Small foot bridges are necessary. People often visit each other and go to weddings.  To install canal barriers near settlements, schools, etc. In order to avoid that small children fall to such big canal.  To retrieve or create the mechanism of responsibility for restoration of damaged roads and bridges which do not enter the project zone, but will be used during construction. In response to their proposals they heard from representatives of PIU that construction project is preliminary and will be discussed with farmers and population many times to accept their proposals or to prove refusals of them, but participants of meetings were waiting for guarantees, instead of promises as it happened in their practice. According to your wishes changes will be made to the project – where to build bridges where it is necessary to leave buildings or not to withdraw them, even if change of a route of the canal is required. АНТ/ Ekspert Fikri Page153 of221 You are discussing it now here and left. And then other experts, who will work here after you, will do as it is convenient and favorable to them. Because they should keep within the project budget. Technical proposals of beneficiaries and stakeholders in Turtkul raion: Proposals on interaction of canal with irrigation and drainage system Participants of meeting in Turtkul raion suggested to include the following issues and proposals to the project: To study methods of increase of irrigation and drainage system interaction efficiency with new canal, namely:  Adaptation of operating irrigation canals to capacities and features of new canal. Water is not supplied directly to farmers from the big canal. For the present big canals are being built and repaired but if inter-farm and on-farm canals of farms do not operate sufficiently, there will be no benefit from new canal. In canals which this canal will cross, there may be no water because of their bed shallowness and height. For example, in Kelteminar canal.  After increase of water supply from canal salinity of soil may appear if not to arrange collectors and drains. According to the previous design of Buston canal collectors had steel pipes. Buston canal is not put into operation yet, but these pipes have already decayed and require replacement or repair. Drainages are overgrown with cane. Farmers cannot find money to pay the workers for cleaning of drainages. There is no machinery and money. The authorities and leaders of communities divide sections of drainage between households. Each household should clean drainages gratis. Some of drainages work well, and some not, therefore somewhere level of subsoil waters is high and somewhere too low. We are too keen on deepening of drainages and nobody tells whether we clean and deepen them correctly.  To plan and level lands plots along irrigation and drainage system. Earth is rough and consequently farmers cannot receive water in the required volume. Those at the beginning of the canal receive 4 thousand cubic meters, and we –at the end, receive 2 thousand cubic meters. Proposals on canal management АНТ/ Ekspert Fikri Page154 of221 Participants of meetings are anxious with the issue of canal management – who and how will manage it. And proposed the following: It will be difficult to manage this big canal on which water supply of three raions depends. Single control system of canal for three raions is necessary. The present system is not suitable for canal management. Technical proposals of stakeholders and beneficiaries in Ellikkala raion: Participants discussed the following proposals:  In case of bed canal concreting strict independent control over purchased materials, preparation and execution of works is necessary. The most important is to pay serious attention to canal concreting in order to avoid crumbling of concrete from inside in 3-5 years. For this purpose it is necessary to strictly supervise construction. In response to this proposal representative of PIU explained in details the order of control which participants of meeting suggested to make public. Engineering organizations which have won the tender will supervise construction. They compare our quality standards to the international standards and if they don't coincide with each other, bring into accord with international standards. During the construction of canal concrete will be sampled and hand over for testing to independent laboratory. Engineers of this company will go along the canal and take samples. Before taking samples, check, how soil tampering under concrete is made. After soil preparation they will allow rubble laying then the special inspector will check thickness and quality of layer. And only after that there will be permission for concreting. After preparation of each batching samples will be taken and sealed (so that even on the road nobody could change composition) for laboratory. After quality confirmation it will permit concreting. After concreting the employee of laboratory himself will go along the route and will take samples from different places. If quality will not be confirmed by laboratory, this place will be broken and build up anew. If sample meets the requirements, laboratory puts mark on it.  For increase of economic efficiency of the canal and increase of possibility of repayment of the loan it is necessary to build flowing fisheries along the canal. In Vietnam, in China such big projects surely include creation of new farms. For example, gardening, forestry, and we could include creation of several fisheries in the project. It can be done, having allocated 0.5-1 ha of land along the canal. It will not cause damage to environment, but improve it, will not require many expenses and will provide people with work, production, will affect reduction of prices for products in the market  Representative of PIU assured participants of a meeting that works will be conducted not only at new canal, but also at adjacent canals for their adaptation to capacity and gravity water flow. АНТ/ Ekspert Fikri Page155 of221 Pakhtaarna, Kaltaminor, Bogyap canals will be reconstructed (shows on map), cross- section of auxiliary canals will be narrowed as after construction of this canal there will be no need in 60 cubic meters of water. 9 hydraulic facilities will be constructed.  Participants of the meeting have been anxious about possible siltation of the canal because of turbid water coming to Buston canal and difficulties in cleaning of canal bed from silt and earth. On the other hand, turbid water with fertile silt allows to harvest more yield. We have 2 kilometers of concrete canal and therefore I know that every year there is the same problem – the problem of canal cleaning. The excavator cannot grasp (clean silt), we involve people to clean manually, but these are big tortures. Clarified water results in productivity, and turbid (muddy) water is useful. Clarified water increases salinity of land. Therefore, probably, on the contrary, it is necessary to install facility in order to make water bubbling and foam water and silt.  Representative of PIU has informed that canal should self-clean by flow speed which will provide 2.5 times more canal incline, than the present one, i.e. instead of 5 cm per km, there will be approximately 12-13 cm. Proposals on infrastructure and environment Participants of the meeting suggested include in the project responsibility of construction organization for damage and obligation to restore roads, adjacent canals and collectors, as well as environment to which damage will be inevitably caused during construction works. During construction of former canals it was not considered that during works big heavy machines will pass our roads. And roads were not designed for such machines. Thus, these machines destroyed all our roads. Hence in order to make something good, bad was made as well. I want to require, that in places where Buston canal crosses our canals, drainages, collectors - their operation was retrieved. Chinese organization constructed a collector and as a result the road was destroyed, the bridge to the construction site was collapsed. Therefore, our reclamation experts, land surveyors, all experts who concern it should participate in implementation of the project. Otherwise there can be more harm, than benefit from Buston canal. According to the project cut down of 100 trees was approved, and in fact about 200 trees were cut down. Construction of the road envisaged compensation of cost of trees and reclamation of lands which was not actually executed. After works it is necessary to restore everything to initial state. To restore fertile trees, lands. If you call builder to your house, you ask them to clean everything after their work, not to leave construction waste, materials, etc. Here it should be exactly the same. АНТ/ Ekspert Fikri Page156 of221 Participants of meetings have suggested increase quantity and closeness of highways and especially pedestrian crossings over the canal and constructions, i.e. 30 bridges are obviously not enough for farms and population of three raions. At Kilchinok section where canal will pass, a lot of population lives. And we knew that after the first bridge the second will be only in about 6 km. People ask to construct the bridge over Bozyap canal. There are 2 bus routes from Fergana settlement to Ichankala and Turtkul – we need Road Bridge. Proposals on canal management Participants of the meeting discussed – who and how will manage Buston canal. Representative of PIU has informed that it is necessary to assign management of the canal to department of "Pakhtaarna" canal and has informed that in other raion there was a proposal to create separate uniform department of Buston canal for three raions to exclude arbitrariness of any raion in relation to other two raions. We do not have any claims or complaints to activity of "Pakhtaarna" canal department. Department was placed in Ellikkala because the canal end was in Ellikkala. Turtkul raion always did not supply water, they cut water to us, exceeded the limit. Participants of the meeting in Ellikkala have supported last proposal, and representative of PIU has suggested to leave this decision until the beginning and termination of construction. АНТ/ Ekspert Fikri Page157 of221 CHAPTER V CONCLUSIONS, RECOMMENDATIONS AND PROPOSALS OF SOCIAL ASSESSMENT ON PROJECT DESIGN 5.1 URGENCY AND NEED FOR PROJECT Results of Social assessment unequivocally confirm that Construction project of Buston canal is extremely needed and necessary. Undoubtedly, for project raions immediate improvement of irrigation and drainage system will accordingly result inimprovement ofameliorative condition of lands. Improvement of irrigation and drainage system is a priority task not only of economic, but also social development, directly connected with a problem of prevention and reduction of poverty. In case the Project is not realized, in the Project raion critical situation may occur when families will be put on an impoverishment verge owing to reduction of lands and loss of incomes. Inspite of this living standards and income level of residents of project area do not almost differ from other raions in the Republic of Karakalpakstan and region in a whole. The idea of the project is supported by all interested parties: the Government, experts, large and small agricultural producers having consequences of degradation of lands, the households which income of absolute majority directly or indirectly depends on situation in agricultural sector, and owners of housing, production premises and objects of social infrastructure. The priority task is in accumulation of this will of stakeholders and beneficiaries for solution of problem and creation of conditions for an exit of the population of the region out of the closed cycle of poverty when unsatisfactory condition of irrigation and drainage system generates low quality of lands and low income of agriculture respectively. There is quite big number of general risks which can negatively affect efficiency and success of investments into canal construction but which can be minimized. As all stakeholders noted, during organization of works in water sector the most important condition of success is observance of comprehensive system approach under which construction of section of the canal and rehabilitation of another part is equally important, and also their maintenance in appropriate condition. Also there should be a confidence that the government will continue to support infrastructure of irrigation after completion of project activities to ensure stability of achieved positive changes. Also there are many risks related with insufficient potential and possibilities of farmers and WUA to support irrigation and drainage system. These risks should be overcome through technical and financial support of WUA, and also through elimination of situation existing at present when there are objects which are not registered in balance of any organizations, and also there is a number of overlapping duties of such organizations as KHGME, PSD, WUA. The survey showed (FGD and in-depth interview) that farms as possible risks consider also:  Risks related to unawareness of details of the project and construction, and absence of influence of farm enterprise and DD on decision-making. АНТ/ Ekspert Fikri Page158 of221 Several farm enterprises. We hardly know anything about the Project and the construction. Nobody asked our opinion or advice. Farmer stock-breeder3, Beruni. This Project was probably developed by an expert. However, this survey should have been conducted prior to developing the Project rather than shortly before the start of its implementation. Farmer stock-breeder3, Beruni. When they started works in improvement of drainage they should have asked us what consequences there could be expected if watering of lands decreased.  Risks of management of the subsoil water, – when the excess of water in irrigation systems and infiltration either increases the level of subsoil water or lowers it too much. To lower this level, the Project should stipulate construction of water intakeworks regulating the level of subsoil water. Farmer, gardener, Turtkul. If they do not properly line the canal this will make things even worse. Filtration will increase. Farmers’ Association representative, Turtkul. We already have a lot of pools with drainage water, and now we’re going to have even more. This will be a catastrophe. Farmer, Kaltaminor, Turtkul. If water in irrigation system is at normal level, water in collectors and subsoil waters will be at normal level. Irrigator, Kaltaminor c., Turtkul. The groundwater level of 2 meters is normal for sowing works, but now the water dropped up to 3-4 meters, that is why Oijon-opa (the farmer) is upset. Farmer, Kaltaminor c., Turtkul. In 2011, there was shortage of water and there was no water in the canal for 50 days. This is why all the water disappeared into the collectors. Farmer-F, Turtkul. That is why they should build water intake works in different places. Irrigator, Kaltaminor c., Turtkul. In the past, the groundwater level was 1 meter, and they built drainages to divert ground water and improve lands. All FGD participants, Turtkul. In the past, we suffered from high groundwater, but now it’s vice versa (are laughing).  Risks of water supplies into the canal in low-flow years and the necessity to incur expenses for its cleaning from silt and sand. That is why, it’s necessary to reinforce the banks and earth under concrete lining with plant roots; these plants will also protect the canal from drifting sand. Farmer, gardener, cattle breeder. Buston canal is designed for 40 cubic meters of water, but 15 cubic meters per 20 thousand ha of lands would be enough. Canal has high capacity, and if there will be no water – what to do? Farmer, Kaltaminor, Turtkul. I worked for RMAWR between 1976 and 1986, when they just built the Yonboshkala canal which is now lined. They made it too deep in the earth АНТ/ Ekspert Fikri Page159 of221 and it started to be filled with sand within one year. Water started to flow over the banks of the canal. Within about ten years the canal was filled with sand completely and water could not flow in it any more. However, now water has already started to seep through the walls of the canal, again. Farmer, Kaltaminor c., Turtkul. In the spring, wind is blowing for about two months moving sand from one place to another for approximately 50-60 meters. Farmer, gardener, stock-breeder, Turtkul. The Buston canal is surrounded with sand from all its sides. Within 2 years it will be covered with sand. I planted trees along the canal to protect it from sand – silverberry and saksaul, but people cut them for firewood, and the canal was filled with sand, again. Lining alone, without a forest shelter belt, will be of no effect. And to preserve the trees they have to be guarded by the Ministry of Forestry, Goskompriroda or the RMAWR themselves.  Risks of lining the canal not with bulk concrete but with concrete slabs, which may result in rapid break-up of the bed of the canal and consequent underflooding of neighboring lands or water losses. Farmer, gardener, Turtkul. If they use bulk concrete and line a properly prepared bed of the canal, there won’t be any detrimental effect. Otherwise filtration will increase, and there will be huge water losses. Out of 50 cu.m of water, 20-30 are seeping into the subsoil water. Farmer, gardener, stock-breeder, Turtkul. Galaba canal (old name of Yonboshkala canal) wasn’t lined with bulk concrete but with concrete slabs which would break easily. Does this Project take into consideration such problems?  Risks of irrational use of water out of the canal under construction due to water losses in IFIS because of demolition or lack of concrete flumes. Farmer, cotton/corn, Beruni. They made concrete flumes in Ellikkala raion but they are already not functioning. Farmer, stock-breeder, Beruni. I heard, too, that in Turtkul raion they first made flumes. However, the system didn’t prove functioning for some reason. That is why they refurbished the system again. That is, they broke the concrete and dig out canals again.  Risks of seizure of lands and structures for the purposes of construction of canal. Farmer, gardener, Turtkul. Buston canal is designed to supply water to Ellikkala raion. If the canal runs through our raion, there will be problems for us. There are households located along the route of this canal, orchards and land plots. Risks of withdrawal of lands and structures for canal construction were also noted by participants of meetings-consultations in project raions: Participants of meetings in Beruni raion noted that the main risk of the project for farmers and population is withdrawal of their lands or structures. Participants of meetings are concerned about the following: АНТ/ Ekspert Fikri Page160 of221  They expect worse lands will be provided to them, than they had, since good lands are occupied long ago, and the lands remote from settlements are inconvenient from the point of view of access to transport or its absence;  Practice of procedures of settlement of disputes excludes insurance, legal proceedings since decisions are made by public authorities which can be not quite interested in the considering of interests of farmers and population. Representative of Project Implementation Unit. Damage will be compensated according to calculations of commission led by Khokim and managers of the Committee on the cadastre. Commission will approve the extent of damage, figures will be approved by the Cabinet of Ministers and after that compensations will be paid. Nevertheless, expected benefits of the project are more attractive to part of farmers and population, than benefits from keeping of land plots, but without implementation of the project: Farmer. Let 10 ha of my farm be allotted for canal construction, but remained 90 ha I will be able to water without problems. Withdrawals and resettlements will take place. But there will be few. But how many people will receive water in time and in sufficient quantity! According to participants of Turtkul raion risks of withdrawal of lands and structures in Turtkul raion are minimal, in comparison with neighboring raions. Representative of PIU. In Turtkul raion it will concern lands of only four families. Canal will pass through two fields. And in Ellikkala and Beruni raions 270 ha of lands will be withdrawn, and in your raion it is only 2-4 ha. As in other raions, participants of meeting in Ellikkala raion consider withdrawal of a part of lands and structures for the project as the main risk of the project. Nevertheless, they came to consensus that these risks and damage are justified even if compensations do not correspond to damages. Some farmers, inhabitants will suffer certain inconveniences, someone's land plots will be divided, someone’s house will be demolished, etc. But this is nothing, in comparison with what benefit the project will bring (if everything will be as described). In Turkey they build houses high into the sky, instead of broadwise. I saw that on a plot of 10х10 meters about 40 people live, and this is private house. And here 40 people, which are 7-8 families, occupy the whole street. Raion administration is informed in details about withdrawn land plots and openly reported about them at the meeting as well about the order of appraisal of damage and compensation. K. will get about 15-20 ha of your farm lands and 38 ha of O. lands. It is pity, there is a beautiful garden, about 3-5 ha, but khokimiyat will give another nearby land for garden. M. will lose 1 ha of lands, D. – 0.5-0.6 ha of mulberry trees and 13-15 ha of cultivation lands. Then, in Tozabog settlement – 3 inhabited, in Makhtumkuli settlement – 4 inhabited and non-residential premises, and personal plots will be allotted. All this will be solved under АНТ/ Ekspert Fikri Page161 of221 the law, with the help of land surveyor and cadastre service. We in due time, gave houses even to those illegally built houses subject to demolition. In this project there will be also experts, appraisers, etc., who will evaluate all losses by bonitet and all other parameters. Some of participants state that already prior to the beginning of the project farmers and the population started suffering damages for the following reason. I can show lands which are not used any longer, because fall under the project zone. Lands are not sowed, not cultivated, but they continue charge taxes for them. If they fall to project zone – it is necessary to withdraw lands officially and to stop charging taxes. 5.2 INSTITUTIONAL CHANGES AND PROJECT STATUS The majority of the above-stated risks are connected with existing system of distribution of water resources and services for sectors of water and rural services. Nevertheless, many of problems can be solved, especially if to take into consideration high level of interest in their decision, both from state bodies, and from the population. Besides, it is important to note that the state shows special attention to problems of the sector and undertakes important institutional changes which are urged to support efficiency of irrigarion and drainage management improvements and to give them the best opportunities for implementation of productive economic activity. Legislative base shows new approach of the government to solution of the problem of worsening condition of lands in the republic:  The first of documents is Decree of the President of the Republic of Uzbekistan «About measures for support of leasehold farms which are growing agricultural production for state needs on low-yielding lands» dd. November 5, 2007. This Decree obliged the Ministry of Finance, MAWR and Uzgeokadastr to introduce since 2008 the system of funds assignment from state budget for the farmers whose plots are located on low- yielding lands. Actually this Decree means a new stage in agricultural reform as in relation to the farmers having strongly differing basic conditions of agricultural production, the differentiated approach was applied for the first time. At keeping of uniform purchase price for cotton and grain for all farmers of the country the farmers working at salted, boggy and low-productive lands, receive certain preferences. From the point of view of project activities this Decree 1) means need of the fastest coordination of project activities with the ones of bodies in places engaged in identification of vulnerable farmers and 2) gives additional possibilities for ensuring stability of the Project due to provision of farmers with additional resources for support of irrigation infrastructure.  Another decision of the Government cardinally changes the situation in the sphere of state control of quality of lands. Those are two interrelated documents: Decree of the President of the Republic of Uzbekistan dd. October, 29th, 2007 N PD-3932 «About measures on radical improvement of system of ameliorative improvement of lands» and Resolution of the President of the Republic of Uzbekistan «About the organization of activity of fund for ameliorative improvement of irrigated lands in the Republic Uzbekistan under the Ministry of Finance» dd. October, 31st, 2007 N PR-718. These АНТ/ Ekspert Fikri Page162 of221 documents provide creation of special Fund accumulating and supervising use of all funds, allocated on ameliorative improvement of lands, including funds of state budget and donors, projects of grant and technical assistance. From the point of view of the Project publication of this document means the following consequences: 1) cardinal turn of the government towards the decision of the problems accumulated in the sphere of rural and water management with strong focus on irrigation infrastructure; 2) possible changes in Project status and Project control system, including its signing; 3) appearance of new stakeholder which status allows to introduce essential amendments to project activities and decisions; 4) occurrence of new source for possible co-financing of project activities; 5) occurrence of the new guarantor of stability of project activities.  Third solution of Government is aimed at cardinal improvement of situation in the sphere of providing system of ameliorative improvement of lands by special machinery and equipment. On May 7, 2008 Resolution of the Cabinet of Ministers of RUz created new type of enterprises – State unitary enterprises of Davlatsuvmakhsuspudrat system (Gosvodspetspodryad). Resolution is aimed at creation of enterprises, specialized only in works on improvement of ameliorative condition of lands. Considering importance of the above described decisions PIU should start already at this stage, comprehensive consultations with the Government and Project donors for determination of measures and actions for ensuring optimization of project activities and, finally, achievement of sustainable results in the system of improvement of irrigation and drainage system in Project area. 5.3 SUSTAINABILITY AND PROJECT BENEFITS Definite conclusion of social assessment is inability of agricultural producers to carry out construction and rehabilitation of canal at the expense of only own funds. For the present Government policy is quite adequate to current situation and provides support and service of inter-farm networks and gradual transition of on-farm network to financing from non-state sources (first of all, at the expense of farmers funds). Under current conditions farms accumulating already most part of irrigated lands, grow up production for state needs under the conditions defined from the top, and on the lands which have fallen into decay owing to insufficient financing and irrational use water and land resources, including inagequate conditions of irrigation and drainage system. Expecting essential investments to project activities from them would be wrongful. Important issue from Project sustainability point of view is mass involvement of households /dekhkan farms in management, maintenance and co-financing of irrigation and drainage systems. For the present dekhkans are completely excluded from these processes, they are big АНТ/ Ekspert Fikri Page163 of221 water consumers and agricultural producers, however their status in the system of control and financing of water and land is not defined, and services on water supply and provision of drainage waters cannot be guaranteed for 100 %. In this regard Project activities should consider 1) models of management of irrigation systems at settlements/dekhkan farms level, including demonstration models for dekhkan farms 2) involvement of dekhkans in work of WUA and formalization of dekhkan status in WUA. Owners of personal plots should be rightful water users and incur adequate cash and other expenses on maintenance of irrigation infrastructure. Considering that there are many dekhkan land plots, and their sizes are insignificant, association of their owners in groups of water users can be the optimum decision in such situation. Each such group can have the representative in WUA for protection of the interests. Project benefits were noted by participants of conducted surveys as well. Results of conducted in-depth interviews, FGD, meetings and work shops show that some of participants were aware of the parameters of the Project and the canal, and they told the following about the benefits of the Project and the canal:  Construction of the canal and the Project, in general, will allow to cut farm enterprises’ and HHs’ expenses for agricultural production and increase profits, thus improving living standards of the population: Farmer, gardener, Turtkul. If water is supplied in needed quantities, many of the farm enterprises’ and HHs’ problems will be solved. People will be saving water. This will mean that there will be enough bread, flour, straw, and fodder for our animals. There will be more meat, milk and potatoes. Entrepreneur4, Ellikkala. Animal husbandry will be developing. We will breed goats and sheep for wool and pelt for export. Very few people are engaged in animal husbandry these days because there are few pastures now, - due to shortage of water. There are few of those who are growing aftercrops for fodder. In the past, all our HHs were growing corn and alfalfa for their animals. Farmer-merchant6, Ellikkala. If we have plenty of water we will grow rice. Pilaf is one of the main dishes in our region, because pilaf is a good nutritious meal. Entrepreneur/farmer2, Ellikkala. Gardening will be developing, and bee-farming as well. Honey brings good income.  Better supply of water to the raions will allow improving the environment and the health state of the population who is now suffering from shortage and poor quality of water. HHs-F, Turtkul, village. The infant death rate is somewhat dropping, though is still high, - in some women fetuses are dying because of poor environment situation. HHs-F2, Turtkul, village. Many women are having ill babies these days, not all of them are surviving. Many children lack mother’s breastmilk. Women’s organization representative, Turtkul, village. Life expectancy has dropped. There are less and less elderly people year after year. We are already regarded as old people but I am only 58. The oldest people here these days are those who are 60-70 years old. There are very few of those who are over 70. АНТ/ Ekspert Fikri Page164 of221 HHs-F4, Beruni. Many people suffer from kidney problems. It’s because of salt. Many people are sick because of high blood pressure. Young men have started to die of drugs because there are no jobs or only very low-paid jobs.  Capacity of canal is high and will allow not only supplying water to the poorly irrigated lands but developing not cultivated lands as well Farmer, gardener, stock-breeder. The Buston canal is designed for 40 cu.m of water, however, even 15 cu.m for 20 thousand ha of lands will be enough.  Lining of the canal will allow delivering water to the tail-end of irrigation systems and avoiding excess watering and consequent soil salinization Farmer-merchant7, Ellikkala. Water does not reach Chatkam and other settlements. It’s the tail-end of the Bogap canal. It’s something like a dead-end. Farmer-merchant8, Ellikkala. Some lands are left unsown, which results in deterioration of the soil, weeds grow wild which are then very hard to get rid of. Salinity of lands increases. It’s not because collectors do not function properly but because there’s no water to wash lands.  Gravity irrigation from the Buston canal will allow reducing Turtkul farm enterprises’ and HHs’ expenses for pumping stations’ services and pumps in case of construction of facilities and works on dams. Farmer, Kaltaminor c., Turtkul. The canal (Buston) lies 5 km from here, and if we augment the dams of our zone water will flow itself. However, for that we will have to build an additional work, - we’ve got only 7 works for gravity flow so far. Farmer and WUA leader, Turtkul. The population won’t have to pay for pumps, spare parts, electricity, etc. for irrigation.  Bed of the canal runs around villages which will minimize the loss from demolition and resettlement. Farmer, Kaltaminor c., Turtkul. The good thing is that the canal will run not via the villages’ lands but directly to farmers’ lands which will eliminate the risks of withdrawal of lands and dwellings. Participants of meetings consultations in Beruni raion said that «Buston canal is a dream for local inhabitants». Reasons of such assessment are the following:  Canal will supply water mainly by gravity and therefore number of pumping stations maintenance of which lay heavy burden on budgets of farmers and DF is reduced. There were 250 electric pumps in the raion. Now remained 74. And after project termination the number of pumps will be reduced to a minimum. Water will go by gravity. АНТ/ Ekspert Fikri Page165 of221 Now we have high expenses on maintenance and operation of pumps. On repair, spare parts, fuel, electricity, salary of pump operators.  Population pays monthly during the period of irrigation for receiving water from pumps which farmers operate. Gravity irrigation will allow to reduce the amount of these payments or to exclude them. When the pump breaks, there is no possibility to timely irrigate the plots. And the population is compelled to raise money for repair. And if there will be gravity, all these expenses and problems will disappear.  Canal will help to compensate a lack of water even if water level will be low in Tyuyamuyun reservoir. There will be irrigation guarantee. If in Amudarya water flows decrease to 400-500 cubes/second, in this case you will receive no cube of water. And after canal construction at least we can receive 5-10 cubes / second of water through Buston canal.  Water from the canal will help to improve the state of environment and quality of soil.  Canal will help to minimize quantity and level of conflicts between farmers and DF of the neighboring raions and inside the raions. Now during the irrigation season while Ellikkala farms water their land plots - Beruni raion receive little water. When water is not enough conflicts because of water, fights between farmers and population happen. There will be less conflicts if water flows by gravity. Now, for example, if the pump broke, water is not enough to all, collection of payments from population begins and a lot of time is spent on its repair.  Water from canal will help to improve environment condition and quality of soil.  Increase of volumes and timeliness of supply of water will allow DF to increase justice in water distribution, and consequently productivity and welfare. In every makhalla there are mirabs (operators of water distribution). And together they develop irrigation schedule for, in average, 200-250 households. Prime cost of agricultural products will decrease.  City businessmen and urban population will receive such benefits from the project as reduction of prices of consumed and processed production which becomes more and which prime cost will decrease. In the village each household has additional tamarka (land plots) of 10-15 hundred square meters. They produce agricultural products there. They sell part of production in market. If АНТ/ Ekspert Fikri Page166 of221 there are no problems with water, their productivity will increase. Respectively, in the market price for this production will decrease. For city dwellers it is a benefit. Cattle livestock will increase. There will be more forage. In the city families have also 3-5 hundred square meters of land. During the last three-four years something is started to be sowed on this land too. As in villages we pay to farmers for water (pump). And if there will be water in canals, we can also water our lands without problems, and harvest two yields from them. Participants of meeting in Turtkul raion estimated a ratio of project benefits and damages in the following figures: Benefit from the canal will be 85-90 %; losses will be about 10-15 %. Losses are small plots of sowing lands; nothing else is expected. In Turtkul raion participants of a meeting expect the following benefits:  Water will be supplied by gravity to the farms of the raion which can avoid or minimize level of costs for pumps maintenance. In canals Bogyab and Keltiminar water will flow by gravity. And it means that need for pumps disappears. Pumps break and require repair. A lot of money is spent on maintenance and repair of pumps. There is no electricity for operation of pumps, it is necessary to buy diesel fuel and to use two types of pumps. One farmer has, let say, 70 ha of lands, and population near the farmer’s lands have 30 ha of personal plots. 10 hundred square meters of personal plot require more water, than one ha of farmer’s land. But it is difficult to collect money from the population for pump use. Poor do not want to pay, and farmers suffer difficulties too.  Volumes and timeliness of water supply as a result of water management improvement will grow.  Environment condition, ecological situation and quality of drinking water will improve.  Welfare of farmers and population, including city businessmen and urban population will improve.  There will be a new road - 20 km. Besides general for all raions benefits participants of Ellikkala raion mentioned such benefit as increase of employment of the population. Construction of previous canals provided the population of three raions with work for 10 years. Therefore participants of a meeting expect that implementation of the project will allow not only to increase efficiency of lands and income of farms, but also to occupy the population in construction of the canal and concomitant enterprises for about 5-6 years. АНТ/ Ekspert Fikri Page167 of221 5.4 IMPLEMENTATION OF PROJECT AND ITS COMPONENTS Prior to project works it is necessary to carry out complete inventory of water resources objects and lands. Assessment should be independent as local experts / cadastral data may distort data on the sizes of land plots and bonitet of lands. Otherwise Project will have difficulties with determination of priority of works, besides, the demonstration effect of productivity growth on the rehabilitated lands can appear underestimated. When planning the schedule of construction works it is necessary to coordinate it not only with heads of WUA and local administration, but also with farmers and dekhkans. All works on construction of the canal should be carried out only when there is no irrigation or washing. Thus it is necessary to consider that part of farmers and almost all dekhkans cultivate crops several times in a year. The most optimum option of works on realization of the planned construction and reconstruction of Buston canal and other canals of project raions provides possible resettlement of the population, and also withdrawal of their land plots. More detailed information about activities on resettlement and withdrawal of lands is presented in prepared Resettlement Action Plan and includes necessary information on payment of compensations to farmers and households. As a whole, the forthcoming works on allotment of lands and payment of compensations are one of the most difficult components of the Project which will require permanent attention from Bank and PIU, and also involvement and coordination of big number of stakeholders. Specific recommendations of SA on realization of works within the Resettlement Action Plan comprise (but are not limited) the following: 1. Allotment of land and resettlement requires a lot of coordination and time – from 8 to 12 months at least. Considering that preparation of documents on allotment of land and payment of compensations according to Uzbek legislation, should be made prior to the beginning of any construction works, PIU should undertake all possible efforts to start documentation preparation for allotment of land from the very first day of Project implementation, otherwise, the work schedule should be reconsidered. 2. Any possibilities which could prevent work directly in the fields of farmers and dekhkans, and also through houses and constructions of households, should be considered once again. It is possible that in certain cases, expenses on change of a way of the canal, etc. will appear lower, than expenses of money and time which should be incurred to the Project for damage compensation. 3. Financing of works on rehabilitation should be very stable and mean problems of delays of payments both in banking system, and at stages of consideration of contracts, payments, etc. various instances. In many cases delays of financing can turn back losses for dekhkans, farmers and contractors. Project losses in case of delays of financing can turn back as need to cover difference of inflationary growth of cost of materials, and damage caused by delay of construction on fields of farmers. 4. All project activities, especially the ones related to need of allotment of land and resettlement should be agreed with local experts, farmers, WUA and makhallas. It is necessary to develop the acceptable works schedule that will allow proving once again need and sufficiency of proposed works on canals and fields of farmers. 5. Continuing process of optimization of farms can also cause quite a number of problems both to the Project, and Uzgeodezkadastr's experts during preparation of АНТ/ Ekspert Fikri Page168 of221 allotment of land. Probably, PIU should discuss further plans with local authorities, at least concerning those land plots which are planned for canal construction. Most likely it is necessary already now to discuss time to establish «an inviolability point», i.e. to stipulate the period after which farms will not change owner/border, at least before completion of construction works. 6. Also PIU should specifically discuss in advance possibility of khokimiyats of Beruni and Turtkul raions to provide land lots to a small number of farmers-gardeners and households. Results of negotiations, if they appear successful, can be fixed in the form of written guarantees of Khokimiyat and joint memorandum. 7. Supervision of construction works should be carried out constantly, Contracts should surely provide articles obliging contractors to restore in a prime order the whole infrastructure if it is the case. Funds for rehabilitation of irrigation system (including even systems of aryks in the fields of farmers) and other infrastructure, should be provided in contracts. 8. Also requirements for observance of ecological and sanitary standards as well as activities on rehabilitation of soils after their damage by heavy machinery should be included in contracts. 9. Considering that time required for canal construction, and also a damage caused to farmers, can be reduced ten times under condition of use of specialized modern machinery, selection of Contractors for these activities should include availability of such equipment as the main criterion. Higher cost of works in this case can be compensated because construction of canal will be carried out without a big damage to crops, and payment of compensations to farmers in this case will be considerably lower. Similar recommendations can also be applicable to contractors at carrying out other works connected with resettlement and need to stop supply of irrigation water to the fields. 10. Preventive informing of farmers and dekhkans about works and possible delays is extremely important. 11. Planting of poplars in 10-meter reserve zones of canals are illegal, though an everyday occurrence. Compensation of such losses is not provided by the legislation. Moreover, penalties, administrative and even criminal liability are stipulated for land use on banks of the canal. After the carried-out consultations, and considering that poplars have no true "commercial" value SA recommends to give the chance to people to cut down their poplars or if it is young trees, to transplant them to another place. These works as well as informing of the population can be carried out through makhalla committees, probably in form of khashars. 12. According to OP of WB 4.12. all people whose property can be damaged during the project, irrespective of their status and, whether their plantings/crops are legal or illegal, have the right to receiving compensations and help from the project in case they confirm that 1) their income as a result of project activities (cutting down of trees) will decrease, and 2) they will provide facts that these trees are really their property. Concerning crops, fruit trees and mulberry trees in reserve zones of canals from which farmers receive income during silkworm cultivation (households are not engaged in cultivation of silkworm and for them mulberry trees have no commercial cost), according to OP 4.12. full compensation of the missed profit (income for 1 year and the missed profit for all productive years which have remained to the tree) should be provided by the project. Proposed mechanism of settlement of contradictions between OP 4.12. and Article 87 of the Land Code of RUz (Compensation of losses of agricultural and forestry production) was preliminary discussed during consultations of SA group with officials of АНТ/ Ekspert Fikri Page169 of221 various levels, however SA consultants have no powers to somehow documentary "fix" the proposed mechanism and to guarantee its actual performance, when the Project will begin the work. In this regard it is proposed to carry out multilateral official consultations with participation of representatives of the World Bank, PIU, the Ministry of Finance, khokimiyats of the region and raions of the Project zone, and also republican, regional and raion departments of Uzgeodezkadastr. The official document – the decision, confirming consent of state administration to compensate damage for illegal plantings out of credit (project) funds should be the result of negotiations. 13. To avoid questions connected with damage of properties/land plots of households, it is necessary to plan optimum routes of pass and placement of machinery. It is also necessary to provide maximum safety of population and children at construction works, and also ecological safety when washing drainage wells. Project should develop recommendations and help to calculate maintenance cost of constructed facilities. Besides, the policy concerning to whom and under what conditions transfer of the constructed facilities will take place should be agreed. An important point is that after restructuring of shirkats some objects of irrigation and drainage systems appeared ownerless. Prior to the beginning of works on their rehabilitation, it is necessary to define, what organization will maintain them in the future (local budget, PSD, WUA, farmer, makhalla in the settlement, etc.) WUA are yet not able to ensure interests of agricultural producers because are in great need in increases of resource and personnel potential and in institutional development. Project activities should stipulate: 1) development of models of increase of financial stability of WUA due to better organization of collecting membership dues not only from farmers, but also the population; 2) assistance to WUA in personnel professional development; 3) assistance to WUA in installation of control units of irrigation water consumption; 4) assistance in increase of resource provision of WUA, first of all with machinery (including within the existing state program on preferential leasing of modern machinery to WUA). For improvement of situation in the sphere of employment in the Project zone it is necessary to take the following measures: i) organization of temporary workplaces during the nonagricultural period (in form of public works) on reconstruction of agricultural infrastructure - irrigation and drainage networks, transport and other communications with attraction of funds of Republican Fund for employment and ii) promote development of cooperatives for rendering agro services with the purpose of stimulation of moving of excessive labor from agricultural sector to adjacent sectors. Such redistribution of workers will not only form more rational structure of employment, but also will allow to raise qualitative characteristics of labor. Important factor at realization of optimum option of construction and reconstruction of Buston canal and other canals in the territory of project raions is the stop of operation of three pump АНТ/ Ekspert Fikri Page170 of221 stations – Dustlik PS, Kilchinak PS and Nyman-Beshtam PS. Number of personnel involved at these stations is 594 pepople according to the personnel schedule presented in the Appendix. Stop of operation of of Dustlik, Kilchinak and Nyman-Beshtam pump stations (PS) will have unfavorable impact on the pump station employees, due to they will lose not only their regular work, but fixed income of their family as well. Most of these employees may have some difficulties of finding a new job because of lack of work places in the region.Therefore, stop of operation of the specified stations requires implementation of actions on organization of new workplaces (probably temporary) for employees of these stations. A number of mitigation measures will be introduced for affected pump station employees to mitigate over the impacts on these employees:  Development of a redundancy/compensation package: Redundancy or compensation payments should be provided to employees to cover any loss of earnings for the period immediately following the pump station closure. Such kind of payments should be thoroughly explained and discussed with the employees well before the stoppage of pump stations’ operation, to ensure that their expectations are properly managed;  Provision of administrative assistance in job search: It may be that finding a new job implies an administrative burden on the pump station employees. In this case, financial or logistical assistance should be given with any administration which needs to be undertaken; and  Provision of skills training: Skills training should be provided to the pump station employees to make them more competitive on the labour market.  There can be a chance to shift the pump station employees to the Pakhta-arna-nayman (PAN) due to increase of the structures’ number that should be maintained. As PAN and Pump stations’ Directorate (PSD) are conducted by the same Ministry of Agriculture and Water Resources (MAWR), then transfer of employees, particularly those living within Beruni District, would be possible. In the event that all the employees of the pump stations are in fact will be made redundant, it will only be possible to monitor the long-term impacts on them by being in touch with them on an individual basis. This could be arranged by requesting the individuals concerned to contact their district administrations on a quarterly basis for the first year to report their progress, and to carry on to do this every six month for the following three years. Obligatory requirement of the labor legislation of the Republic of Uzbekistan is notification of the worker of changes of the organization and working conditions, and also about the termination of activity of this enterprise. In this regard public services of employment, khokimiyats and other departmental bodies should carry out actions on offer of work to these workers on the same specialty, qualification or position. According to the article 102 of the Labour Code of the Republic of Uzbekistan: Notification about termination of labor contract by the employer: The employer is obliged to inform the worker in writing (signed by the employee) about the intention to terminate labor agreement in the following terms: АНТ/ Ekspert Fikri Page171 of221 - not less than two months in advance in case of termination of the labor agreement in view of the changes in technology, production and work organization, reduction of scope of works which have entailed change of number of employees (staff) or change of nature of works, or in view of enterprise liquidation (clause 1 of the second part of article 100), and also reaching by the employee of retirement age having the right for the state pension for age according to the legislation (clause 7 of the second part of article 100); Under the agreement between the employee and employer notification stipulated by clause 1 of the first part of the present article can be replaced with the monetary compensation corresponding to duration of term of notification. In case of termination of the labor agreement with employee in connection with change of the owner of this enterprise (clause 6 of the second part of article 100) the new owner is obliged to notify the employee in writing (signed by the employee) about the forthcoming termination of labor relations not less, than in two months or to pay him/her proportional compensation. During notification period, except for notification on termination of labor relations in connection with guilty actions, the right not to come to work not less than one day in a week with salary preservation during this time for seeking of another work is provided to the employee. Period of employee notification, except for the termination of labor relations in connection with enterprise liquidation, does not include periods of temporary disability, and also time of performance of state or public duties by him/her. The employer in due time, not less than in two months, provides the appropriate trade-union body or another body representing interests of employees, information on possible mass dismissal of employees and carries out consultations aimed at mitigation of the consequences of dismissal. The employer, also not later than two months in advance, is obliged to inform local body on employment about the forthcoming dismiss of each employee with the indication of his/her profession, specialty, qualification and salary amount. Employees dismissed in view of liquidation of enterprise, establishment, organization, reduction of number of employees or the staff reserve monthly average salary taking into account monthly severance pay for the period of job search, but no more than for two months. If employees within ten calendar days after dismissal were registered in public service of employment as the persons who are seeking for a job, they acquire the right to an average salary for the third month in former place of work according to the certificate issued by public service of employment. In any case employees dismissed for the specified reasons reserve continuous seniority within three months from the date of dismissal. If after three months period suitable job is not provided to the dismissed employee, he/she obtains the status of unemployed. In case of its refusal during the specified period from two offers of such job he/she will not obtain the status of unemployed and after thirty calendar days will be registered as the person who is seeking for a job on a universal basis. Payment of the severance pay and kept average earnings is performed in former place of work. In case the liquidated enterprises, establishments, organizations have no necessary funds payment of compensations dismissed employees is made out of funds of assignees. In case the liquidated enterprises, establishments, the organizations have no assignees, compensations АНТ/ Ekspert Fikri Page172 of221 are paid to dismissed employees out of funds of the fund of assistance to employment, compensated in an order established by the legislation. Influence of the project will be maximal provided within the Project framework the system of sale of agricultural products, and not only for farmers, but also for other agricultural producers is organized. Numerous researches show that a little appreciable growth of productivity sharply reduces the income of agricultural producers working out of the system of state order, owing to falling of prices in the local markets of agricultural products. Agricultural producers have no possibilities for storage of crops, its transportation to other regions of the country, processing and creation of own network of sales or access to the commodity and raw exchanges. Way-out from this situation is organization of production and marketing cooperatives on the basis of local communities. Such cooperatives will not only stabilize the income of agricultural producers, but also promote ensuring the qualified productive employment of the population of project zone. Important factor which can strengthen positive influence of the project is ensuring access of agricultural producers to credit resources. In this regard the most attractive and realistic way-out is development of system of non-bank micro financing in project zone, the legislative basis for which is already established in the republic. Important determinant of poverty is low level of human potential in the Project zone. Preparation and human resources development should become one of the first steps when developing policy of increase of income level and ensuring equal access to possibilities. All beneficiaries and main stakeholders of the project feel sharply a lack of knowledge, skills for work in new conditions, and also information, including the operative one. Shirkats which experts earlier carried out complex control of agro actions and irrigation are disbanded now. Farmers, dekhkans and experts of WUA in the majority have no special knowledge and agricultural education. Three types of information are sharply necessary and should be provided by Farmer Schools which will be created within the Project Component B: i) Information on the legislation connected with conducting of agricultural activity; ii) Information on possibilities of receiving the credits; iii) Information on machinery and technologies of conducting agricultural activity, including management of irrigational and drainage systems and rational water consumption. The most optimum and effective way of satisfaction of needs of beneficiaries in information, including information on the Project progress, is organization of branches of Farmer schools on the basis of all WUA of project zone. The project found approval and support at all levels, from land users to local authorities. However the population and experts should be sufficiently informed on the purposes and Project tasks, especially concerning technical part of the Project. Lack of information causes unjustified expectations from the Project. Thus, it is necessary to develop the detailed plan of measures for informing of stakeholders through WUA, makhalla committees and carrying out seminars in the raions of the Project zonebefore the implementation thetechnical part of the Project Various forms of participation and information dissemination proposed during SA with a view of ensuring of public control over realization of the subsequent phases of the Project, are given below: i) Regular information dissemination on progress of Project implementation and planned activities, including information on interim outcomes of the Project. Large-scale АНТ/ Ekspert Fikri Page173 of221 media campaign, and also publication of information materials in local languages is necessary; ii) Carrying out regular estimates of living standards of population and condition of farms for identification of positive and negative influence of activity of the Project on various groups of population and farmers. Such estimates should be based on system of the indicators reflecting various aspects of life of the population in dynamics. iii) Creation of special groups for ensuring control over realization of separate phases of the Project from the point of view of compliance to the purposes, tasks and temporary framework of the Project. These groups should include representatives of the government, competent experts from the state organizations and independent experts, representatives of farms, households, WUA and makhalla. In general research outcomes shows the following: 1. Conditions for growth of productivity and efficiency of farm enterprises. Though the most part of irrigated lands is allocated for cultivation of low-profitable cotton and wheat for state needs, farmers have freedom to handle deliveries and production of other crops, cattle, poultry, processing of production and carry out other non agricultural types of business which compensate lack of income from state order. Prospects of growth of the income of farm enterprises are based on their maximum aspiration to raise efficiency of lands by increase of efficiency and economy of expenses. For example, situational and single cooperation in deliveries and production sale, replacement of chemical fertilizers with manure, income from repeated crops from lands, providing its part for sub-lease to employees and so forth. 2. «Scissors of prices» and reduction of profit of farmers. Profitability of farm enterprise considerably decreases because of high growth of prices for deliveries in comparison with low growth of prices for production of farmers under the state order. 3. Increase of irrigated lands, extents of irrigation system and intervention of farmers in irrigation and drainage system which have been previously designed for large areas. Farmers develop new lands which raises the extent, complicates irrigation and drainage system structure on their lands. It results in IFIS and IFDS overload, growth of extent of irrigation system on farmers lands, growth of need in water, water losses in irrigation system, increase of level of ground waters and salinization which farmers are not able to manage because of lack of special machinery both at farmers and WUA. 4. Optimization of farm enterprise’ sizes. Process of ruin of small farms, return of lands to the state and acquisition of these lands by large farmers resulted in more effective (less per unit of area and production) use of resources, especially, machinery, fertilizers and labor. 5. Needs of farmers in skills and consulting services. In collective farms, state farms there was a specialized division of labor between agronomists, irrigators, reclamation experts, machine operators, economists, accountants and so forth. Part of farmers came from those people and their former skills became insufficiently full and АНТ/ Ekspert Fikri Page174 of221 complex. New farmers should become someone like "Encyclopaedists" or address consulting centers which are insufficiently developed as level of their services quality lags behind the level of farmers demand. Nevertheless, demand for consultations grows and as part of farmers are already ready to pay for the consultations, trainings and skills, required by them rather than waste time on mastering searches of knowledge and to incur losses in the absence of knowledge and skills. 6. Consequences for physical infrastructure. Collective farms and state farms operated and maintained objects of physical infrastructure. After agrarian reforms capacity of farm enterprise and WUA became insufficient for maintenance and management of IFIS and IFDS, roads, water supply, gas and electric networks. 7. Employment and gender balance in labor market. Displacement of a considerable part of man's labor out of borders of the village and the country resulted in surplus of female labor, considerably raised degree of their mobility and involvement in all types of rural works which was previously carried out by men. Sustainability of women employment is very low as well as payment for their work. Farmers prefer to employ men from among skilled workers for permanent job, but pay them low wage under the conditions of remaining labor redundancy. Lack of men in the structure of population led to falling of efficiency of lands of DF where women are unable to process the land and maintain their irrigation and drainage system. Where there is a labor redundancy, demand for manual skills of women for manual seasonal and day works grows. Earnings from the first manual collecting cotton are very considerable and attractive source of income of women, and farmers receive benefit of that cotton of manual collecting is better, has higher grade and is more profitable. Besides, farmers needn’t to invest money in combines which will work one month in a year, and cotton of manual collecting is more competitive in a foreign market. 8. Prospects of social development. Prospects of social development of communities have high potential. For increase of level of institutionalization, management and sustainable development it is necessary to create conditions and to adopt number of legislative and normative documents, and also to prepare the personnel for WUA, communities and farm enterprise and DF cooperation, including for representation of interests in the market of deliveries and production sale, in access to infrastructure services and so forth. Development obstacles Participants of survey mentioned the following main obstacles:  High risks in timeliness, sustainability and volumes of water supply;  Lack of flexible system of subsidies and system of prices for deliveries and production depending on pump and gravity irrigation, quality and bonitet of soils; Experts consider the above-mentioned obstacles surmountable under condition of improvement of water supply and introduction of water saving technologies, for investments to which it is АНТ/ Ekspert Fikri Page175 of221 necessary to reconsider conditions of credits, leasing or pricing of production for the state order. Meanwhile farm enterprises consider introduction of water saving technologies of irrigation risky and suitable only for greenhouses. Farmers and WUA urgently and sharply need increase of the rights and potential of WUA, providing them with machinery, training of WUA personnel on technologies of management and water distribution, and methods of financial stability. Otherwise they consider WUA as unnecessary organization which duplicates RMAWR. DFs are completely excluded from the influence on WUA and they know little about WUA and DFs rights in water using. Growth of capacities of WUA directly depends on the sizes of payments for water. Farm enterprise and WUA consider that the amount of payment should be based on differentiated system of payment depending on bonitet, hydromodulus, types of crops, pump or gravity water supply to irrigation systems. De facto, but not de jure water market is already being formed, and water users pay WUA according to the existing supply and demand, including with their production. Summarizing the aforesaid, it is possible to state that, as a whole, all water users are ready to transfer to market principles in the sphere of water supply and are ready to bear the corresponding expenses and efforts which can exceed existing ones, but for this purpose need the following:  To introduce obligatory membership and obligatory payments of contributions to WUA for all types of water users;  To involve farm enterprise and DF in fair and transparent distribution of land and waters;  To allow WUA to accept contributions in that form and those amounts which WUA and their members will decide;  To introduce timely and market calculations for state order production;  WUA should have enough income for procurement of machinery for irrigation system and drainage system maintenance which will cut down expenses of both WUA and farm enterprise for attraction of third party machinery and vehicles.  To retrieve or create enterprises for production of concrete flumes, irrigation system design with use of flumes in raions which will allow WUA to repair flume irrigation system and/or to replace soil irrigation system with the flume ones;  To create opportunities for obtaining of credits by WUA and farm enterprise in commercial banks;  To raise the salary of experts of WUA and sustainability of salary, to involve and prepare the qualified experts;  To carry out information campaigns for increase trust in WUA as in the institute which is capable to render adequate services to water users; «Scissors of prices». The quote from statements of even representatives of public institutions describes this obstacle. «If the prices for production rise by 20 % in three years, then the prices forCLM, fertilizer and all other things rise annually by 30 %». Quality and bonitet of soil АНТ/ Ekspert Fikri Page176 of221  Qualities of soil decreases or does not grow because of its hyper - operation, non- adequate crop rotation, lack of water on washing out of soils, on drainage of ground waters, on land improvement with application of chemical substances;  Bonitet of soil is overestimated by state organizations for overestimate of the quota of state order, and bonitet itself is reconsidered very seldom (less than in 3 years); Instability of cooperation between farm enterprises and WUA and low level of coordination  As types and volumes of production not for the state order are not coordinated by farm enterprises and WUA in sustainable and institutionalized cooperatives, overproduction or underproduction with high risks of income loss by farm enterprises or expenses on purchase of production of DF happen ocasionally. WUA could become a basis of cooperatives, but their capacity and possibility of self-governing of farm enterprises do not allow them to become a cooperation basis. 5.5 PROPOSALS ON INVOLVEMENT OF THE COMMUNITY IN PROJECT MANAGEMENT The main proposals on public involvement by results of the conducted meetings – consultations and seminars in project raions include need of careful informing of the population about activities under the project, including construction works, quality of materials, achieved results. The important requirement from participants of meetings is obligatory informing of the population on resettlement, withdrawal of land lots, for the purpose of damage minimization from project activity. Results of discussion during the meetings in Beruni raion showed that stakeholders and beneficiaries of raions for the first time received information on the project which was developed without consultations with them. Nevertheless, representatives of PIU assured participants of meetings that project is preliminary and in the future PIU will collect proposals for their consideration and application in the project. Lack or total absence of informing of the public about the project caused situation when on lands subject to withdrawal construction is continued and the population invests savings and incomes in their plans and projects. At the end of the canal in protection zone there are 15 households. Some houses are completely built, and some houses are still under construction. And people ask - what will be? Whether it is worth to continue building of houses? In Turtkul raion on the territory of the expected canal someone built up a huge building. During canal construction building was demolished, and damage was not fully compensated. During construction of another canal Istikbol two houses entered into zone of construction of the canal. Houses were completely built, but they could compensate them only amount of cement spent on foundation of the house. I cannot understand, why people cannot be informed about planned construction in advance. Participant of meetings in Beruni raion proposes the following: АНТ/ Ekspert Fikri Page177 of221 All chairmen of RAC and makhalla committees should be distributed drawings of the route which will pass through their settlements in order that everybody, each household, in these settlements could personally and in details familiarize with the route project. If someone has to move, to be informed 4-5 months in advance to avoid what has already happened - told one month in advance to move and do what you want. People could know - how to avoid damage or to minimize it. For this purpose during meetings with them it is necessary to explain all conditions of compensation of damage, and to explain the reasons of these conditions. As results of meetings and discussions in Turtkul raion show – stakeholders and beneficiaries are also obviously not informed about project details which causes concerns and the following proposals: Whether it is possible to receive, already now, the map or at least approximate zones in order that local authorities do not allocate the lands, plots in these zones, not knowing, to businessmen for shops, etc., for sites (house construction) etc. and avoid scandal lateron. Whether it is possible to learn – when resettlement or at least notification on resettlement or allotment beginning will start? Representative of PIU reported: «For the moment there is no such possibility. After all features of the route will be put on the map, you too can impose this map on your agricultural maps». In opinion of the participant of the meeting in Ellikkala raion lack of information about the canal complicates activity of businessmen, such as, in a case below. I am member of the commission on allocation of land plots. We receive applications from businessmen for allocation of lands to them for greenhouses, but we, without having any information on this zone of alienation, we can not make the decision on site allocation. As a result, businessman cannot begin work, the season passes, they have no income etc. If we allocate them, and he/she will start to build tomorrow the greenhouse or shop, and the day after tomorrow this land plot will be withdrawn, who will be guilty and who will suffer losses? Participants of the meeting in Ellikkala raion made the following proposals on public involvement in management of the project:  Report to the public about the purposes, route, features of the project, including keeping or removal of pumps in one or another place. Representative of PIU reported: «Some folders about the project where everything is described in detail are in regional kjokimiyat. Who interests, can familiarize. But it is only the project, there can be still changes, but all this will be discussed in addition». 5.6 GENERAL CONCLUSIONS OF THE PROJECT АНТ/ Ekspert Fikri Page178 of221 In general, achievement of the Project purposes in the target raions will, undoubtedly, improve the state of irrigation systems and the situation with irrigation, since drainages are already functioning much better and more efficiently. This, accordingly, creates conditions for developmentof farm enterprises, for increase in employment and reduction of poverty in HHs, and for more access to educational and health care services for HHs. Nevertheless, the following risks and challenges could negatively affect the efficiency and success of the Project.  Works in the Buston canal currently under construction could meet opposition of those farm enterprises and HHs whose lands, orchards and homes are located on the route of the canal or near it and are going to suffer either because of seizure of their lands or because of their underflooding;  The most serious challenge for the purposes of the Project is weakness of WUAs and insufficient potential of institutions representing farm enterprises’ interests in sales of their crops ordered by the government.  On the whole, the main purpose of the Project should become strengthening of WUAs’ potential, since they manage water – the key resource for farm enterprises. WUAs having received needed powers, resources and machinery, not only will be able to more efficiently manage water, but to become the basis for cooperation of farm enterprises in the production and sales of farm produce as well, – especially if WUAs are able to receive payment not only with cash but with farm enterprises’ produce, as well as receive the rights to sell this produce.  It’s only large and rich farm enterprises (which are working more efficiently and have collateral for loans) that currently have access to machinery and loans, which undermines the potential of small-size and medium-size farm enterprises and results in their bankruptcy. Accordingly, there should be considered ways of supporting smaller farm enterprises in their access to water and loans, and changing loan terms, even if their collateral will be their lands, which is currently prohibited by the law. Moreover, lands as loan collateral will allow to re-distribute lands not arbitrarily but within the frames of the land market.  After farm enterprises have interfered with irrigation and drainage systems which were originally designed for sovkhozes, there are cases in raions when irrigation and drainage systems are now located too close to each otheror interlace with each other, which results in their lower efficiency.  In spite of certain achievements and improved efficiency of the renovated IFIS and IFDS, works performed without WUAs’ and farm enterprises’ control lead to their improper fulfillment or even to simple imitation of their fulfilment.  Creation of local farm produce processing enterprises meets with such obstacles as low quality or lack of tap water, gas supplies and electricity, as well as too high interest rates and cost of collateral for loans for purchasing processing equipment.  Increase in crop yields and production not for the government not accompanied by measures aimed at minimization of risks of the ‘wild market’ (overproduction and underproduction), as well as measures in creation of infrastructure and institutions for planning, processing, sales and marketing, could result in bankruptcy of not only households but processing enterprises as well, and in a loss of interest in farm produce processing. АНТ/ Ekspert Fikri Page179 of221  Supporting farm enterprises in purchasing cotton combines will result in increase of unemployment among women, loss of income for women and teenagers.  Supporting WUAs in their activities on improvement of irrigation and drainage systems without considering of communities’ interests (RAC’ and HHs’) in their activities will not allow HHs to fully benefit from the Project.  Improvement of irrigation systems without support of enterprises with loans for production and building of lined or hanging irrigation flume network and hydraulic works will result in a higher groundwater level in irrigation systems, which will cause higher water losses in irrigation systems and will dilute the effect of drainage systems restoration.  Issuing loans to WUAs and farm enterprises without measures to support their cooperation (joint responsibility for loans and joint use of machinery) will not allow to strengthen the potential of their institutional development and transform them into cooperatives that should become their mouthpiece, therefore making them defenseless against monopolies and infringement of their rights in the market of supplies and sales. The main social result of Project implementation is increase of well-being of the people in Project area due to improvements of management of water resources. In spite of the fact that Project affected raions will be under risk of withdrawal of lands involved in growing agricultural and livestock products, Project implementation and improvement of irrigation and drainage system will allow creation of conditions for an exit of the population of the region out of the closed cycle of poverty when unsatisfactory condition of irrigation and drainage system generates low quality of lands and low income of agriculture. In whole improvement of management of irrigation and drainage system will allow improving the conditions of water resources of Project area and providing of conservation and efficient use of water recourses as well as will allow to develop the social and economic status of the Project area. The given Project implementation will allow farm producers to cultivate new and saline lands which currently are not suitable efficient farm production as well. Itisconfirmaedbethefollowing data of technical consultant (Feasibility study): Table 42Potectial increasing of agricultural irrigated area,ha Before project After project Potential (developed) area (ha) 99 190 99 190 Actively cropped (ha) 82 563 94 291 Cropping intensity (%) 108.3 121.9 Cropped area inc. secondary (ha) 91 504 114 900 Abandoned land 16 627* 4 899** * From this total area of 16 627 ha, around 11 728 ha will be re-opened to irrigated agriculture as it will be impossible to obtain yield from these lands after rehabilitation of the irrigation network and consequent improvements in water management **In order to regain this area which is abandoned due to combination of different factors like salinization, covering by sand dunes, complete loss of irrigation infrastructure and hence loss of fertility, it has not been recommended to make any investment under the project Potentialincreasingofirrigatedareawillincreasetheadditional agricultural labor requirements: АНТ/ Ekspert Fikri Page180 of221 Table43Potentialincreasingof agricultural labor requirements, million m-days Year Incremental agricultural labor (Million m-days) 6 2 9 3 15 4 20 4.5 24 5 32 6 Improvement of land (soil) quality will allow the producers reduce their costs of production that allow increasing profits and incomes of the producers as well as improvement of living standards of the population in project area. Taking into account the current problems of Project area in low quality of lands (salinity), lack of irrigating water and high level of ground waters the Project implementation will allow to solve the mentioned problems of the people in Project area. Therefore, the improvements required for farmers, i.e. improvements of land quality and access to water recourses, will be achieved efficiently as well. АНТ/ Ekspert Fikri Page181 of221 ANNEX ARESPONDENTS PROFILE Respondents were interviewed in the raions covered by the project, with total number of interviewed respondents – 950. Welfare of respondents in self-estimation: Respondents estimated the welfare in selections of the following statements. DF distribution by selections looks as follows: Index % respondents No money even for basic foodstuffs 2,84% Enough money for basic foodstuffs, but there is no money for clothes and communal 18,00% services Fully provide themselves with food, clothes and money for communal services, but 45,79% can not buy such goods, as TV, refrigerator, etc. Can buy TV or refrigerator, but cannot allow themselves purchase of car, 25,26% apartment/house or travel to another country, etc. Allow themselves purchase of car, apartment/house or travel to another country, etc. 4,00% no response 4,11% Source: Outcomes of conducted survey Changes in welfare of DF for the last five years (in self-estimation) look as follows: Index % respondents Improved 45,47% Worsened 8,21% Remained the same 45,16% Does not know 1,16% Source: Outcomes of conducted survey Status of respondents: Absolute majority of interviewed respondents – 100% heads of DF. Employment of respondents (employement of DF member, earning the highest income): Index % respondents Private company employee 39,79% State employee 6,63% Entrepreneur 42,42% Permanent worker 3,79% Day-labourer 0,21% Pensioner 0,74% Other 6,11% Source: Outcomes of conducted survey АНТ/ Ekspert Fikri Page182 of221 Education level: Index % respondents No eductaion 2,32% Incomplete secondary, secondary, lyceum 21,79% Secondary specialized (including college) 41,68% Incomplete higher 4,11% Higher 30,11% Source: Outcomes of conducted survey Marital status of respondents: Index % respondents Married in official marriage 91,68% Married in religious marriage «nikokh» 2,63% Divorsed 1,26% Married, but separated 0,42% Widow/widower 3,26% Not married 0,63% Source: Outcomes of conducted survey Age of respondents: Index % respondents Respondents at the age of 18-30 6,63% At the age of 31-40 24,21% At the age of 41-50 31,26% At the age of 51 and older 37,89% Source: Outcomes of conducted survey Gender of respondents Index % respondents male 97% female 3% Source: Outcomes of conducted survey АНТ/ Ekspert Fikri Page183 of221 ANNEX BQUESTIONNAIRE FOR HHS/FARMS QUESTIONNAIREFOR HHs/Farms Project ‘Drainage, Irrigation and Wetlands Improvement Phase I Project. Monitoring of social economic changes - 2011’ (TO BE FILLED OUT UPON COMPLETION OF INTERVIEW) No. of questionnaire: |____|____|____| PSU No.: |____|____| Town/settlement: WRITE DOWN Code________ Type area Write down Code_______ Full address of the HH: St. House # # Date the interview conducted: date |____|____| month |____|____| The interview started: hour |____|____| minutes |____|____| The interview ended: hour |____|____| minutes |____|____| Interviewer: last name ______________ signature ____________ № ________ Control visit: last name ______________ signature ___________ № ________ Coding: last name ______________ signature ____________ № ________ Data entry: last name ______________ signature ____________ № ________ INTRODUCTION. Hi, my name is _______. I work for a research organization in Tashkent. Here is my ID card and a passport. We’ve been tasked with gathering opinions of the population on irrigation and drainage issues to help authorities take efficient measures to improve irrigation and drainage system in South Karakalpakstan. The results of our work will be presented as percents of people’s opinions. That is why even if you wished so, we won’t be able to mention your name and address anywhere. Your household has been selected by a computer program, – like in a lottery, – out of addresses of your mahalla that is why I cannot replace your HH with another one. You have the right to refuse from this interview, however, I ask you to help me do my work. Our conversation will take no more than 40 minutes. RESPONDENT’S AGREEMENT: I, _________________________________________________, agree to participate in present research on voluntary base. I was acquainted with conditions of research. АНТ/ Ekspert Fikri Page184 of221 CONTENTS GENERAL INFORMATION ABOUT HOUSEHOLD/FARM .................................................185 PRODUCTION. REVENUE AND EXPENSE OF THE HOUSEHOLD/FARM ......................188 IRRIGATION AND DRAINAGE SYSTEM .............................................................................192 PAYMENTS COST AND METHODS ......................................................................................194 FEEDBACK BETWEEN SUPPLIERS AND CONSUMERS ...................................................197 INFRASTRUCTURE/ENVIRONMENT PROBLEMS ............................................................. 200 GENERAL INFORMATION ABOUT HOUSEHOLD/FARM 1. RESPONDENT’S GENDER. PUT DOWN WITHOUT ASKING. 1. Male 2. Female 2. How old are you? |___|___|___| years old 3. Who are you in your HH/Farm – Head of HH/Farm, his/her spouse, or HH/Farm member (INT. CHOOSE ONE ANSWER): Head of HH/Farm 1 Spouse of head of HH/Farm 2  FINISH INTERVIEW HH/Farm member (over 15 years old) 3  FINISH INTERVIEW 4. What is your education? School, lyceum 1 Specialized secondary (including college) 2 Higher 3 5. What is your marital status? Married (registered official marriage) 1 Married (marriage contracted by religious rite, ‘nikoh’) 2 Divorced 3 Married but living separately 4 Widow(er) 5 Never married 6 HARD TO ANSWER 98 АНТ/ Ekspert Fikri Page185 of221 6. Where does your HH/Farm work member who is earning the main income? Private company employee 1 Government official 2 Private entrepreneur 3 Permanently employed worker 4 Odd jobber 5 Military, law-enforcement officer 6 Retired 7 Other (specify) ____________________ No answer 9 7. How many members, including children, are currently living at this address and having common meals with you? А_______ members in total В. _______ children in 6 and less 97 no such children С.. _______ children between 7 and 17 97 no such children 8. Could you please look at this table and tell me, which of the statements best describes the financial state of your HH/Farm? (INT. SHOW CARD) We do not have enough income even for basic food items 1 We have enough income for basic food items, but not enough to buy new clothes or to pay for 2 municipal services We have enough income for basic food items, clothes and municipal services, but not enough 3 to buy a new TV or refrigerator, etc. We have enough income for TV or refrigerator, but cannot afford to buy a new car, a 4 house/apartment, or a trip to another country, etc. We have enough income for a car, a house/apartment, or a trip to another country, etc. 5 No answer 9 АНТ/ Ekspert Fikri Page186 of221 9. How much on average did your household/farm spend per month on the following items in 2011? (FOR AVERAGE ANNUAL MONTH) (INT. COMPLETE THE TABLE) Item Code Cost All types of food 1 ________ Soum 9 No answer Meat, chicken, fish, butter, milk, eggs 2 ________ Soum 9 No answer Clothing 3 ________ Soum 9 No answer Electricity 4 ________ Soum 9 No answer Cold water 5 ________ Soum 9 No answer Hot water 6 ________ Soum 9 No answer Sanitation/Sewerage/ Solid Waste Collection 7 ________ Soum 9 No answer Central heating 8 ________ Soum 9 No answer Fuel for heating and cooking (natural gas) 9 ________ Soum 9 No answer Telephone service (including mobile) 10 ________ Soum 9 No answer Housing (rent, taxes) 11 ________ Soum 9 No answer Transport fees 12 ________ Soum 9 No answer Education-related expenses 13 ________ Soum 9 No answer Medical services 14 ________ Soum 9 No answer Celebrations, recreation 15 ________ Soum 9 No answer Gasoline for private transport (litre) 16 ________ Soum 9 No answer Other (specify) ____________________ 17 10. Has the well-being of your HH/Farm improved, worsened or remained the same for the last five years? Improved 1 Worsened 2 Remained the same 3 Does not know 99 11. Specify the type of hearth/farm (according to registration documents)? If it is rented, on which period? (INT. SPESIFY NO MORE ONE ANSWER) Hearth/Farm code Period of rent Farm 1 /_/_/ years 99 no rent Peasant 2 /_/_/ years 99 no rent GO TO 14 Household with homestead land (tamarka) 3 /_/_/ years 99 no rent GO TO 14 Other (specify)________________________ 4 12. Specify the name of hearth________________________________________________ 13. Please, specify year and month of hearth establishment (INT. PUT DOWN) In /___/___/___/___/ year /___/___/ month АНТ/ Ekspert Fikri Page187 of221 14. Please, complete the following table (INT. COMPLETE EACH COLUMN SEPARATELY. IN QUESTION 14.1 CODE 1,2 IS TO BE COMPLETED ONLY FOR FARMERS AND PEASANTS, CODE 3 – FOR HOUSEHOLDS WITH HOMESTEAD LAND) 14.1 Land (ha) 14.2 Buildings 14.3 Technique Irrigated 1 House (living) 1 Human processing ( shovel, 1 mattock, rake, chopper, pitchfork, scythe, axe, etc.) Not irrigated 2 Kitchen 2 Mechanized methods: 2 Homestead land 3 Bathhouse 3 Tractor 3 Not use 97 Toilet 4 Plough-ripper 4 Place for animals 5 Combine 5 Storage 6 Deep ripper 6 Place for processing 7 Cultivator 7 Other (specify) ___________ Cisterns 8 Pumps 9 Other (specify) _____________ PRODUCTION. REVENUE AND EXPENSE OF THE HOUSEHOLD/FARM 15. Which agricultural product did your household/farm produce or cultivate in current year? (INT. COMPLETE THE TABLE) Harvest Total =100% Area Product from 1 ha volume Private (ha) Barter For sale (tonnes) (tonnes) consume Raw cotton 1 Wheat 2 Rice 3 Corn 4 Other types of cereals 5 Potato 6 Oil-yielding crops 7 Legumes 8 Vegetables 9 Watermelon and melon 10 Fruits 11 Grapes 12 Fodders 13 Other(specify) 14 _______________…… ……………………. Does not grow 99 agricultural product GO TO 17 АНТ/ Ekspert Fikri Page188 of221 16. Let’s talk about the volume of the harvest sales of household/farm in 2011 (INT. THE QUESTIONS ARE TO BE ASKED ONLY FOR FARMERS AND PEASANTS, WHO SELL THEIR PRODUCTS. IF THERE IS “GOVERNMENT” IN COLUMN - BUYERS, IT IS NECESSARY TO COMPLETE IN PART-PRICE “PROCUREMENT, LISTED PRICE”, IF THERE IS “PRIVATE WHOLESALE BUYER” OR “LOCAL MARKET”, COMPLETE “MARKET PRICE”) Buyer Price (Sum) Volume of selling 1-government; Product code product (tonnes) 2- private wholesale buyer; Procurement Listed Market 3-local market Raw cotton 1 Wheat 2 Rice 3 Corn 4 Other types of 5 cereals Potato 6 Oil-yielding crops 7 Legumes 8 Vegetables 9 Watermelon and 10 melon Fruits 11 Grapes 12 Fodders 13 Other 14 Does not sale/own consumption 17. Which livestock product did your household/farm produce in 2011? (INT. COMPLETE THE TABLE) Total Overcut (heads) per unit Animals code Born Bought Died Solв alive (heads For own needs For sale altogether) Cows/Bulls 1 Sheep 2 Ewes 3 Goats 4 Pigs 5 Horses 6 Birds 7 Other(specify) 8 _____________ Do not grow 99  GO TO 19 livestock product АНТ/ Ekspert Fikri Page189 of221 INTERVIEWER: IF ANSWER CODE OF RESPONDENT IS 99 ON QUESTIONS 15 AND 17, FINISH INTERVIEW 18. Specify final result of livestock product in 2011? Total (units Used for own Product code Barter Sold Price per unit altogether) needs Milk (litre) 1 Meat (kg) 2 Eggs (pcs) 3 Wool (kg) 4 Karakul sheep 5 skin (pcs) Other (specify) ____________ 19. Specify the number and age of employees (male, female), who work (permanent, temporary) in your household/farm (for 2011)? Specify the type of activities of employees, period of employment and wage. (INT. COMPLETE THE TABLE) From them the Period of Wage (on the Number of Age of Type of Gender number of employment average, per employees employees activities relatives (month) month) Permanent male (number) female Temporary male (number) female no such employers 97 20. Do the following specialists work in your household/farm in 2011? If yes, specify their wages. Profession code Wage Profession code Wage Agronomist 1 Agrochemist 6 Zootechnician 2 Agricultural afforestator 7 Soil scientist 3 Other (specify)_____________ 8 Veterinary attendant 4 No specialists 99 Agronomist on plant 5 protection АНТ/ Ekspert Fikri Page190 of221 21. Specify, what from the followings do you use (buy) for the production of your agricultural product? (INT. COMPLETE THE TABLE, THE COLUMN “TOTAL COST” IS COMPLETED BY INTERVIEWER ON THE BASE OF MATHEMATICAL CALCULATION: UNIT NUMBER x UNIT COST) Title Code Unit number Unit cost Total cost Seeds (kg): 1 Put down the type: 1.1 1 1.2 ю 1.3 1.4 Seedlings (pcs) 2 Fertilizer (kg) 3 Chemicals (kg) 4 Fuels and lubricants 5 (litre) (литр) Water (m3) 6 Fodder 7 Put down the type: 7.1 7.2 7.3 Medicaments 8 (vaccinations), veterinarian Agricultural technique 9 Taxes 10 Other (specify) 11 ___________________ 22. Which modernized methods do you use during growing and harvest in your household/farm? (INT. SEVERAL VARIANTS OF ANSWERS ARE POSSIBLE) Title Code Nurture of new precocious sorts of culture 2 Use of modern technique 3 Use of fertilizers 4 Use of chemicals 5 Use of laser processing of crops and seeds 6 Other (specify) ___________________________ ___________________ Do not use 97 No answer 99 АНТ/ Ekspert Fikri Page191 of221 23. Are there any investments of money in your household/farm for the last five years? (INT. SELECT THE VARIANT) Code Code Purchase of property 1 Improvement of irrigation system 7 New construction 2 Improvement of soil quality 8 Purchase of equipment 3 Purchase of pedigree animals 9 Purchase of transport facilities 4 Purchase of seed materials 10 Purchase of technique 5 Other (specify)___________________ 11 Complete overhaul of equipment and 6 No/there are no any investments 97 transport facilities 24. Are you or your household/farm a member of some business/professional associations? (INT. SELECT, PROBABLE, SEVERAL VARIANTS OF ANSWER) Chamber of Commerce and Industry 1 Peasants and Farms Association 2 Water Users Association Other professional/industrial associations 3 Other (specify)_________________ 4 Not to be a member 97 IRRIGATION AND DRAINAGE SYSTEM 25. Please, describe current situation in irrigation/drainage system of your household/farm. (INT. COMPLETE THE TABLE) 25.2 Sources of irrigation water 25.1 The place of (SPECIFY % OF WATER 25.3 Availability of irrigation system household/farm in irrigation CONSUMPTION. TOTAL 100%) (INT.ONE ANSWER) system(INT.ONE ANSWER) % Beginning 1 Irrigation canal 1 Continuous water supply 1 Middle 2 Drainage canal/water 2 Periodic delay 2 End 3 Collector/pumps 3 Long delay 3 Other Other (specify) Other (specify) _________ 4 4 (specify)_________ _________ 25.4 Efficiency of drainage system 25.5 Ground water level (INT.ONE ANSWER) (INT.ONE ANSWER) High 1 Stable level without impoundments/floods/salinization 1 Satisfied 2 Generally stable periodic impoundments/floods/salinization 2 Ground water level is very high during the long period, long Low 3 3 periods of impoundments/floods/salinization There is no drainage system 99 Other (specify)_________ 4 АНТ/ Ekspert Fikri Page192 of221 26. How many hours a day, on average, is the water in the irrigation canal, which is used by household/farm for irrigation in 2010-2011 in seasons…? READ THE SEASONS AND SELECT THE ANSWER ACCORDING TO THE ROW There is no water at More than 1-2 hours 3-5 hours 6-10 hours 11-15 hours all/less than 1 hour 15 hours … in autumn 2010 1 2 3 4 5 6 … in winter 2010 1 2 3 4 5 6 … in spring 2011 1 2 3 4 5 6 … in summer 2011 1 2 3 4 5 6 … in autumn 2011 1 2 3 4 5 6 27. How often does your household/farm irrigate own area? (INT. SPECIFY: IN SEASON OF HARVEST WATERING) Code One time a day 1 One time in three days 2 One time a week 3 One time in two weeks 4 Other (specify)____________________________ Does not irrigate at all 97 No answer 99 28. In case of lack of water for irrigation of the area, how much harvest does household/farm loss? (INT. SPECIFY THE PERCENT) Percent Code From 10% to 20% 1 From 20% to 50% 2 From 50% to 80% 3 To 100% 4 Other (specify)____________________________ Does not loss at all 97 No answer 99 29. How are you satisfied of your main source of irrigation water? (INT. ASK THE SOURCE FROM QUESTION 25.2) Code Very satisfied 1 Satisfied 2 Not satisfied 3 Not satisfied at all 4 No answer 99 АНТ/ Ekspert Fikri Page193 of221 30. For the last five years how has the situation of irrigation/drainage system improved or worsened? (NO MORE ONE ANSWER) Irrigation system Drainage system Considerably improved 1 1 A bit improved 2 2 No changes 3 3 A bit worsened 4 4 Considerably worsened 5 5 No answer/Hard to answer 98 98 31. In whole, which changes have happened in work of irrigation and drainage systems for the last five years…? (INT. NO MORE ONE ANSWER IN EACH LINE) 1. … Did water for irrigation become to supply more 1. More often 2. More seldom often or more seldom? 3. No changes 98 There was/is no water 99 Doesn’t know 2. … Did the volume of supplied irrigation water 1. Increased 2. Decreased increase or decrease? 3. There is no changes in water supply 98 There was/is no water 99 Doesn’t know 3. … -Did the water quality become better or worse? 1. Better 2. Worse 3. There is no change in quality 98 There was/is no water 99 Doesn’t know 4. …- Was cleaning of drainage canals conducted at the 1.Yes, was conducted 2. No, was not conducted proper time? 3. No changes 99 Doesn’t know 32. How the situation with irrigation water disturb household/farm? (NO MORE ONE ANSWER) Disturb so much 1 A bit disturb 2 Not disturb at all 3 PAYMENT AND METHODS 33. How does household/farm calculate the payment for irrigation water, if you pay for it? It depends on size of irrigated area 1 It depends on the volume of water consume 2 It depends on the volume of water supply 3 Other (specify) ________________ Doesn’t pay GO TO 38 Doesn’t know 99 АНТ/ Ekspert Fikri Page194 of221 34. How does your household/farm pay for irrigation water, operation and maintenance of irrigation canal? According to fixed tariff by cash 1 According to fixed tariff by transfer payment 2 According to fixed tariff by plastic card 3 According to fixed volume by natural products By natural product depending on the volume of the harvest 9 Other (specify) ________________  Doesn’t pay for irrigation water  Doesn’t know 99 No answer 9 35. On average, how much did you pay for irrigation water per month in 2011? /_/_/_/_/_/_/_/ Soum per month for whole your household/farm /_/_/_/ Tonnes of harvest (by natural products) /_/_/_/ % from harvest (by natural products) Doesn’t know 99 36. How often does household/farm usually pay for irrigation water? Code More often, then once a month 1 Approximately, once a month 2 Approximately, once a month 3 Approximately, once in half a year 4 Approximately, once a year 5 37. To whom does your household/farm pay for irrigation water, operation and maintenance of irrigation and drainage system? Code WUA 1 Hokimiyat 2 SSG(RCG)/shirkat 4 GO TO 39 Private companies 5 Other (specify) ________________ 38. Why does not your household/farm pay for irrigation water? No money 1 GO TO 41 No water 2 GO TO 39 Other (specify) ________________ 3 GO TO 41 No answer 4 GO TO 41 АНТ/ Ekspert Fikri Page195 of221 АНТ/ Ekspert Fikri Page196 of221 39. Is your household/farm willing to pay for improving the system of water supply for irrigation? Yes 1 No 2 Hard to answer 98 40. On how many percents maximum is your household/farm willing to pay more for improving the system of water supply for irrigation, than you pay now…? WRITE DOWN FEEDBACK BETWEEN SUPPLIERS AND CONSUMERS 41. Is your household/farm a member of WUA? Code Yes 1 No 2 No answer 9 42. From which sources does your household/farm gain information about agriculture? (INT. PUT DOWN ALL VARIANTS OF ANSWER) 43. Who reports to your household/farm information about irrigation water supply, drainage waters? (INT. NO MORE 3 ANSWERS) 44. To whom does your household/farm apply with the statements, complaints, requests in order to solve problems in work of irrigation and drainage system? (INT. DO NOT READ) Question №39 Question №40 Question №41 State authority (hokimiyat) 1 1 1 WUA 2 2 2 Farmers association 3 3 3 Mahalla committee 4 4 4 SSG(RCG)/shirkat 5 5 5 Media 6 6 6 Other (specify) ________________ Doesn’t gain at all/Doesn’t apply 97 97 97 GO TO 46 No answer 9 9 9 45. Were you satisfied in results of applying and their actions? Yes 1  GO TO 47 No 2 АНТ/ Ekspert Fikri Page197 of221 46. Why did not you apply or were not satisfied? WRITE DOWN 47. Which activity does WUA implement in your district? Code Monitoring water and soil productivity indicators on the area of farm, situated on the 1 territory of WUA Rendering of consulting services to your household/farm 2 Studying the problems and lacks of your household/farm in agricultural production 3 and water use Distribution of bulletins in understandable for farmers language before each important agricultural arrangement, such as before tillage, sowing, zoning of the 4 field on irrigated area, irrigation, fertilizing and other works Irrigation system management and water distribution between WUA members 5 Management, maintenance, repairing and improving of irrigation system 6 Other (specify) _______________________________________ No answer/ Don’t know 99  GO TO 52 48. Which consulting services does WUA render in your district? Code Information and legal support of farmers and increase of their knowledge 1 Information about land preparation to sowing cultures 2 Irrigation planning and selection of optimal technologiсal irrigation diagram 3 Planning of agricultural activities for gaining maximal profit from unit of area 4 Selection of cultures, which are more beneficial for definite zone and period of time 5 New methods implementation of irrigation water use management and improvement 6 of its productivity Training on water-saving methods of irrigation and use of new irrigation technology 7 Search of possibilities of decreasing agricultural production expenditures 8 Search of possibilities of potential productivity achievement (on the base of field 9 passport) Marketing of sale, supply and service questions 10 Other (specify)____________________________________________ No answer 9 49. Does your farm/HH participate in consultations, training and seminar of Water Users’ Association (WUA)? Code Yes 1 No 2 No answer 99 АНТ/ Ekspert Fikri Page198 of221 50. Does your farm/HH need consultations, training and seminar of Water Users’ Association (WUA)? Code Yes 1 No 2  GO TO 52 No answer 99  GO TO 52 51. Which consulting services does your household/farm need to gain for agricultural productivity increase? Code Information and legal support of farmers and increase of their knowledge 1 Information about land preparation to sowing cultures 2 Irrigation planning and selection of optimal technologiсal irrigation diagram 3 Planning of agricultural activities for gaining maximal profit from unit of area 4 Selection of cultures, which are more beneficial for definite zone and period of time 5 New methods implementation of irrigation water use management and improvement 6 of its productivity Training on water-saving methods of irrigation and use of new irrigation technology 7 Search of possibilities of decreasing agricultural production expenditures 8 Search of possibilities of potential productivity achievement (on the base of field 9 passport) Marketing of sale, supply and service questions 10 Снижение или предотвращение загрязнения, заболачивания и засоления земель 11 Decreaseorpreventionofpollution, waterloggingandsalinizationofsoil Other (specify) ________________________________________________ No answer 9 АНТ/ Ekspert Fikri Page199 of221 INFRASTRUCTURE/ENVIRONMENT PROBLEMS 52. . Please tell us what are your farm/household’s three most important agricultural production/growth problems? (INT. DO NOT READ THE ANSWERS. ONE ANSWER IN EACH COLUMN OF THE TABLE) 1st in 2nd in 3rd in Problem importance importance importance Low quality of soil (salinity) 1 1 1 High level of underground waters 2 2 2 Lack of irrigation water 3 3 3 Inadequate irrigation water supply 4 4 4 Inadequatemaintenance of irrigation and drainage channels, 5 5 5 especially in inter economic level Lack of farm machinery 6 6 6 High prices on agrochemicals (fertilizers, pesticides etc.) 7 7 7 High prices on agricultural/farm resources 8 8 8 High prices on agricultural lease Lack of private transport facility for products transportation 9 9 9 Lack of funds /financing for agricultural/farm resources purchase 10 10 10 Difficulties in obtaining a credit for farm development 11 11 11 Government control of number of crops 12 12 12 Government control of production prices 13 13 13 Inadequate irrigation canal 14 14 14 Inadequate drainage canal 15 15 15 Inadequate electricity supply 16 16 16 OTHER (please, specify) No answer/ Hard to answer 99 99 99 No problems 9 9 9 53. Please tell us what are your farm/household’s three most important livestock farming problems? (INT. DO NOT READ THE ANSWERS. ONE ANSWER IN EACH COLUMN OF THE TABLE) Problem 1st in 2nd in 3rd in importance importance importance Low quality of pastoral area (salinity) 1 1 1 Lack of fodder 2 2 2 Low quality of livestock vaccination 3 3 3 Hive level of morbidity rate/sickness rate 4 4 4 Livestock death rate 5 5 5 Lack of drinking water 6 6 6 OTHER (please, specify) ____________________ 7 7 7 No answer/ Hard to answer 98 98 98 No problems 99 99 99 АНТ/ Ekspert Fikri Page200 of221 54. Which problems must be solved to improve /increase the production efficiency of your farm/HH? (INT. READ THE ANSWERS. SEVERAL ANSWERS ARУ POSSIBLE. THE QUESTIONS ARE TO BE ASKED ONLY FOR FARMERS AND PEASANTS) Increase the size of farm area 1 Allow farmers to decide what crops they want to grow themselves 2 Improve the soil quality (productivity ) 3 Improve the availability of water resources 4 Improve the irrigation system 5 Improve the availability of mineral fertilizers 6 Improve the availability of fuels and lubricants 7 Improve the right protection of land ownership and land use 8 Make easier the administrative procedure for organization of economic activity 9 Make easier the purchase of equipment 10 Reduce the tax burden 11 Make easier/available and reduce the percentage rate for credits 12 Official allowance for reseeding 13 Decrease in state control of production prices 14 Training for improving the farm productivity 15 OTHER (please, specify) ____________________ No problems 99 55. In your opinion, what diseases in adults and children occurred in your farm/HH in 2011? Gastro-intestinal diseases 1 Blood disease/anemia 2 Iodine lack 3 Urogenital diseases – gravel, etc 4 Diseases of the locomotor system (bones, joints) 5 Respiratory diseases 6 Cardio-vascular diseases 7 OTHER (please, specify) ____________________ Did not have diseases 97 No answer 9 АНТ/ Ekspert Fikri Page201 of221 56. Did anyone of your family suffer from the following diseases in 2010? Gastro-intestinal diseases 1 Blood disease/anemia 2 Iodine lack 3 Urogenital diseases – gravel, etc 4 Diseases of the locomotor system (bones, joints) 5 Respiratory diseases 6 Cardio-vascular diseases 7 OTHER (please, specify) ____________________ Did not have diseases 97 No answer 9 THANK YOU! АНТ/ Ekspert Fikri Page202 of221 ANNEX CCONTENT-PLAN OF «ROUND TABLE» INSTRUCTIONS AND QUESTIONNAIRE Questions are set to HH about situation in HH, to farmers/businessmen about their situation. Accompany all questions with number of questions «Why?» - then received information will be more qualitative and full even if you seem not uderstanding. Separate "opinion" from the real facts and cases. Specify it. In the analysis of the relations between the organizations and persons draw evident schemes of the relations. In questions of payment, volume of production, income, expenses – draw together with the respondent graphics and diagrams. In all cases ask the interlocutor to tell specific stories, examples, cases, facts with names of dates, names, places, etc. Fix them and specify - without these stories and examples the content of interview is useless and your work is senseless. INTRODUCTORY WORD Explain to participants that their names and names of farms will not be specified in results of round tables as you talk to hundred people and results are presented in form of % and in form of summary conclusions. Explain – why you need dictophone, i.e., not to distort or forget the content of conversation. If the respondent is afraid to discuss "sensitive" issues in front of the dictophone – for the period of these questions in a pointed manner switch off the dictophone and suggest to continue conversation in an informal format. If it is impossible to receive exact figures – ask to tell approximate ones, but make a mark that those are estimated figures. CHANGES OF THE LAST 5 YEARS Let’s speak about changes of the last 5 years 1. How approximately in % since 2008 decreased or increased along the (NAME OF CANAL) +____% growth REASONS OF «-« ____ reduction: GROWTH/REDUCTION Population – rural – urban Children, youth, adult, elderly Man power – men and women Unemployed looking for job Incomes of families - population Quantity of HH producing agricultural produce Number of farmers producing agricultural produce Quality, volumes, timeliness of gas, drinking water, electricity supply to HH Number of HH processing agricultural production Number of other enterprises – JV, private small, handicraftsmen, individual businessmen АНТ/ Ekspert Fikri Page203 of221 RAW PRODUCTION – BEFORE PROCESSING Let's talk only about production before its processing about what we will speak later. CHANGES IN NATURAL VOLUMES (NOT COST) OF PRODUCTION 2. How, approximately, in % since 2008 VOLUMES of production decreased or increased …. +____% growth NAME OF RAW PRODUCTION REASONS OF GROWTH/REDUCTION «-« __reduction: Meat Milk Fruits Grapes Tomatos Melons, Water-melons Fish Wool Honey, beewax, larval food, bee- bread  WHY THEY PRODUCE EXACTLY THIS PRODUCTION?  WHAT KIND OF PRODUCTION COULD THEY PRODUCE AND WHAT PREVENTS? 3. How have productivity from ha/hundred square meters, from bee family, from the head changed since 2008. Take 2005 as 100 %. 4. Mutual aid in production of NON processed production (farmers, HH) – examples  THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITIES) - WHO AND HOW HELP IN PRODUCTION AND COOPERATION? EXPENSES AND PRICES FOR SUPPLIES/PURCHASES FOR PRODUCTION BEFORE PROCESSING 5. How, approximately, in % since 2008 expenses on decreased or increased BY NAMES OF RESOURCES AND IN FIGURES +___% growth REASONS OF RESOURCES FOR RAW PRODUCTION «-«__reduction: GROWTH/REDUCTION RESOURCES Water for irrigation For drainages Credits Fertilizers for farmers Chemical protection and bioprotection of plants, cattle, fish Selection of plants, selection of sorts Labor - quality Equipment, machinery, vehicles, tractor NON AGRICULTURE Fodder by types of diet Elite seeds, young animals for cattle-farmers, baby fishes for fish breeders Selection of cattle, fish, bees Veterinary, veterinary services, zootechnic services (insemination)  IRRIGATION – to PROBE WATER SAVINGS and TECHNOLOGY EXPERIENCE  ROLE of WUA – VOLUMES, TIMELINESS, PARTICIPATION IN MANAGEMENT  HOW SHOULD WUA WORK and WHAT IS NEEDED FOR THIS – to probe WUA of households (separate from WUA of farmers)  WHO MAINTAINES DRAINAGES of FARMS AND HOW – to probe HH role? EXPERIENCE АНТ/ Ekspert Fikri Page204 of221  TRAINING, NEED FOR KNOWLEDGE  CERTIFICATIONS OF QUALITY (ISO) – ANALYSES, STANDARDS AND SO FORTH.  INVESTMENTS IN INNOVATIONS – labor replacement ANIMAL HUSBANDRY AND FISH BREEDING – EXPERIENCE 6. Mutual aid in purchases and supplies for non-processed production  THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITY) - WHO AND HOW HELPS? SALES AND PRICES FOR PRODUCTION BEFORE PROCESSING 7. How, approximately, in % since 2008 prices and sales volumes decreased or increased?  CHANGES IN PRICES – REASONS  CHANGES IN INCOME – REASONS  CHANGES IN PROFIT – REASONS +____% growth REASONS OF SALE of RAW PRODUCTION «-« ___reduction: GROWTH/REDUCTION Meat Milk Fruits Grapes Tomatos Melons, Water-melons Fish Wool Honey, beewax, larval food, bee-bread EXPERIENCE  SALE IN DOMESTIC MARKET  SALE IN FOREIGN MARKET  STORAGE  TRANSPORTATION – ROAD, RAILWAY 8. Mutual aid in sales of NON processed production (farmers, HH) – examples THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITIES) АНТ/ Ekspert Fikri Page205 of221 PROCESSING AND SALE CHANGES IN VOLUMES OF PROCESSING OF RAW MATERIALS AND REASONS 9. How, approximately, in % since 2008 volumes of PROCESSED production for sale decreased or increased …. BY NAMES AND IN FIGURES – TONS, CENTNERS, KG +____% growth REASONS OF TYPES OF PROCESSED PRODUCTION «-« ___reduction: GROWTH/REDUCTION Meat products – sausages, canned food, smoked products and so forth. Dairy products – kefir, cheese, cottage cheese, ayran, katyk, sour cream, butter and so forth. Fruit – juice, canned food, dried fruits Grapes - juice, canned food, dried fruits Melons, water-melons – juice, canned food, dry/dried Tomatoes - juice, canned food, dried fruits Fish - canned food, smoked products and so forth. Yarn, carpets, oriental carpets, felt, felt boots, sweaters, socks Honey, beewax, larval food, bee-bread – in packings or in food or cosmetic additives  WHY THEY PROCESS OR DO NOT PROCESS ONE OR ANOTHER PRODUCTION  WHICH ONE COULD PROCESS AND WHAT IS NEEDED 10. Mutual aid in sales of PROCESSED production (farmers, HH) – examples THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITIES) THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITY) - WHO AND HOW HELPS? EXPENSES AND PRICES FOR RESOURCES DURING PROCESSING 11. How, approximately, in % since 2008 expense on processing decreased or increased BY NAMES AND IN FIGURES +___% growth RESOURCES CONSEQUENCES «-«___reduction: Electricity GAS WATER Buildings Equipment EXPERIENCE  MODERNIZATIONS, INNOVATIONS IN EQUIPMENT, MACHINERY, PRODUCTION – REPLACEMENT OF WORKERS  AVAILABILITY, QUALITIES OF RAW MATERIALS  ANALYSES, PRODUCTION QUALITY STANDARDS (QUALITY CERTIFICATES, INCLUDING INTERNATIONAL - ISO  DESIGN OF PACKING  IN LABOUR (TRAINING)  SES / GOKOMPRIRODA 12. Mutual aid in purchases for production PROCESSING – farmers, HH – examples  ROLE OF LOCAL ORGANIZATIONS АНТ/ Ekspert Fikri Page206 of221 SALES AND PRICE - PROCESSED PRODUCTION 13. How, approximately, in % since 2008 sales volumes and prices of production of PROCESSING decreased or increased ….  CHANGES IN PRICES - REASONS  CHANGES IN INCOME –REASONS – PRICES, DEMAND, ETC.  CHANGES IN PROFIT - REASONS BY NAMES AND IN FIGURES +____% growth REASONS OF SALE of PROCESSED PRODUCTION «-« ___reduction: GROWTH/REDUCTION Meat products – sausages, canned food, smoked products and so forth. Dairy products – kefir, cheese, cottage cheese, ayran, katyk, sour cream, butter and so forth. Fruit – juice, canned food, dried fruits Grapes - juice, canned food, dried fruits Melons, water-melons – juice, canned food, dry/dried Tomatoes - juice, canned food, dried fruits Fish - canned food, smoked products and so forth. Yarn, carpets, oriental carpets, felt, felt boots, sweaters, socks Honey, beewax, larval food, bee-bread – in packings or in food or cosmetic additives EXPERIENCE  SALE IN DOMESTIC MARKET  SALE IN FOREIGN MARKET  STORAGE  TRANSPORTATION – ROAD, RAILWAY 14. Mutual aid in sales of PROCESSED production (farmers, HH) – examples THE ROLE OF AGRO COMPANIES THE ROLE OF LOCAL ORGANIZATIONS (ASSOCIATIONS, UNIONS, AUTHORITIES) АНТ/ Ekspert Fikri Page207 of221 ANNEX DGUIDELINES FOR MEETINGS AND QUESTIONS INSTRUCTIONS 1. ONE DAY BEFORE MEETING-DISCUSSIONS OR AT THE BEGINNING OF THE MEETING TO INTRODUCE YOURSELF AND REPRESENTATIVES (WHO NEED IT) 2. AFTER OPENING SPEECHES AND PRESENTATIONS TO OFFER PARTICIPANTS: 3. PREPARE QUESTIONS ON CANAL ROUTE; 4. PREPARE COMMENTS FOR THE ROUTE AND CANAL CONSTRUCTION. 1. INTRODUCTION We work on collecting of opinions of experts and the population concerning construction of Buston canal. The purpose of our meeting – to receive your opinions, questions, offers on canal construction. 2. DISCUSSION OF OUTCOMES OF SOCIAL ASSESSMENT 2.1. IRRIGATION AND SOILS OF LEASHOLD FARMS (ONLY) Conclusions of social assessment: 1. Risks of timeliness of water supplies 2. Risks of lack of volumes of water 3. «Not enough water – means inefficient management of water supply and prices for it» (Example is Israel without water at all). Question: 4. What prevents efficient supply of water to farmers? TO PROBE – WHAT PREVENTS RMAWR, WUA, FARMERS 5. What possibilities for effective management of water are TO PROBE EFFICIENCY  In irrigation network – inter-farm and on-farm  In laws – content and execution  At the organizations – RMAWR, WUA, farmers, etc.)  finance and payments – efficiency of use in WUA and at farmers  machinery – sufficiency and types in WUA and at farmers  workers and their qualification in WUA and at farmers 6. What is necessary to change in points above? 7. What is possible to change? 8. Who should change? 2.2. IRRIGATION OF HOUSEHOLDS LAND PLOTS (ONLY) Conclusions of social assessment: 1. Risks of timeliness of water supplies 2. Risks of lack of volumes of water 3. «Not enough water – means inefficient management of water supply and prices for it» (Example is Israel without water at all). Question: 4. What prevents efficient supply of water to HH land plots? TO PROBE – WHAT PREVENTS RMAWR, WUA, FARMERS 5. What possibilities for effective management of water are TO PROBE EFFICIENCY  In HH irrigation network – in auls/kishlaks  organizations – efficiency of their work (WUA, makhalla committee, etc.)  finance and payments in management of water – efficiency of use in HH?  machinery – availability and types  workers in HH – men and women for management of irrigation АНТ/ Ekspert Fikri Page208 of221 6. What is necessary to change in points above? 7. What is possible to change? 8. Who should change? 2.3. DRAINAGE 1. What prevents to operate level of ground waters effectively? TO PROBE – WHAT PREVENTS "HYDROMELIORATION" EXPEDITIONS, WUA, FARMERS, HOUSEHOLDS Recommendations 2. What are the possibilities for effective management of level of ground waters  In drainage constructions and networks – inter-farm and on-farm  In laws – the contents and execution  At organizations hydromelioration, RMAWR, WUA, farmers, etc.  finance and payments – efficiency of use in WUA and at farmers  machinery – sufficiency and types in WUA and at farmers  workers and their qualification in WUA and at farmers 3. What is necessary to change in points above? 4. What is possible to change? 5. Who should change? TO PROBE "HYDROMELIORATION" EXPEDITIONS, WUA, FARMERS, HOUSEHOLDS 2.4. DRINKING WATER 1. Drinking water of dangerously poor quality?  In water supply system, in wells, holes, at businessmen? 2. Why poor quality? ROLE OF PRODUCERS OF WATER, RAC, MAKHALLAS, FARMERS, SES HOUSEHOLDS, ESPECIALLY, VULNERABLE DISCUSSION OF CONSTRUCTION OF BUSTON CANAL 1. PIU EXPERT SHOWS THE ROUTE OF THE CANAL AND TELLS: 1.1. ABOUT THE PURPOSES OF CANAL CONSTRUCTION 1.2. ABOUT THE CANAL ROUTE 1.3. ABOUT CONSTRUCTION MATERIALS IN DIFFERENT PLACES OF ROUTES 1.4. ABOUT WATER CONSTRUCTIONS IN DIFFERENT PLACES OF ROUTES 1.5. ABOUT CONSTRUCTION TERMS 1.6. WHO WILL BUILD 1.5. ABOUT EXPECTED BENEFITS OF CONSTRUCTION FOR FARMERS AND THE POPULATION 1.6. ABOUT EXPECTED INCONVENIENCES FOR FARMERS AND THE POPULATION QUESTIONS FOR DISCUSSIONS 1. QUESTIONS ABOUT FARMERS 1. What 3 BEST consequences are expected for farmers only? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT good with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE FARMERS 2. What 3 worst consequences are expected for farmers? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE FARMERS 1. What should be done in order to avoid inconveniences at all? АНТ/ Ekspert Fikri Page209 of221 2. Who should do it? 3. What is needed for this purpose? 4. If it is impossible to prevent – what should be done to minimize the bad? 5. Who should do it? 6. What is needed for this purpose? 2. QUESTIONS ABOUT HH 1. What 3 BEST consequences are expected for HH? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT good with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE HH – ESPECIALLY VULNERABLE (LOW- INCOME) 2. What 3 worst consequences are expected for HH only? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE HH (LOW INCOME) ON ROUTE MAP 3. What should be done in order to avoid inconveniences at all? 4. Who should do it? 5. What is needed for this purpose? 6. If it is impossible to prevent – what should be done to minimize the bad? 7. Who should do it? 8. What is needed for this purpose? 3. QUESTIONS ABOUT NON-RURAL ENTERPRENEURS 1. What 3 BEST consequences are expected for non-rural enterpreneurs? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT good with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE FARMERS 2. What 3 worst consequences are expected for farmers? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE HH ON ROUTE MAP 3. What should be done in order to avoid inconveniences at all? 4. Who should do it? 5. What is needed for this purpose? 6. If it is impossible to prevent – what should be done to minimize the bad? 7. Who should do it? 8. What is needed for this purpose? 4. QUESTIONS ABOUT NON-RURAL HOUSEHOLDS 1. What 3 BEST consequences are expected for HH? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT good with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE HH – ESPECIALLY VULNERABLE (LOW- INCOME) 2. What 3 worst consequences are expected for HH only? RATING? FROM the MOST IMPORTANT TO LESS IMPORTANT with a question «Why are they the most important?» TO PROBE THE LOCATION OF THESE HH (LOW INCOME) ON ROUTE MAP 3. What should be done in order to avoid inconveniences at all? 4. Who should do it? 5. What is needed for this purpose? 6. If it is impossible to prevent – what should be done to minimize the bad? 7. Who should do it? 8. What is needed for this purpose? АНТ/ Ekspert Fikri Page210 of221 OUTCOMES AND CONCLUSIONS Preliminary groups of questions and discussions of participants by subjects: 4.1. About canal route? 1 2 3 … 4.2. About materials to be used and where and why? 1 2 3 … 4.3. Who will build and when? 1 2 3 … 4.4. Who will supervise the construction? 1 2 3 … 4.5. What negative consequences are expected from underflooding of lands? Who will be financially responsible for underflooding? How will be compensated? 1 2 3 … 4.6. What negative consequences are expected in alienation of lands and structures? Who will be financially responsible? How will be compensated? 1 2 3 … 4.7. How questions and proposals of farmers, businessmen, the population in a) design and b) construction will be considered? 1 2 3 … 4.8. Other – to group – as above 1 2 3 АНТ/ Ekspert Fikri Page211 of221 CONCLUSION PIU EXPERT ANSWERS AND MAKES CONCLUSIONS ON THE ROUTE MAP ABOUT MEASURES: ON STRENGTHENING OF EFFICIENCY OF WATER SUPPLY A) TO FARMERS, TO HH, C) TO URBAN HH; ON MINIMIZATION OF NEGATIVE CONSEQUENCES  A) THREATS OF UNDERFLOODING OF FARMER LANDS AND HH LAND PLOTS  B) ON MINIMIZATION OF THREATS OF ALIENATION OF STRUCTURES AND LANDS – TYPES, COST, TERMS OF COMPENSATION FOR ALIENATIONS OF STRUCTURES AND LANDS. АНТ/ Ekspert Fikri Page212 of221 ANNEX ENUMBER OF PERSONNEL INVOLVED AT PUMP STATIONS – DUSTLIK PS, KILCHINAK PS AND NYMAN-BESHTAM PS POSITION NUMBER Managing staff Head 1 Senior Deputy of head 1 Deputy of head 1 Master mechanic 1 Chief power engineering specialist 1 Total: 5 Personnel and legal department Personnel manager 1 Lawyer 1 Total: 2 Engineering and maintenance department Head of the department 1 Main specialist 1 Total: 2 Accouting department Chief accountant 1 Deputy if chief accountant 1 Cashier 1 Total: 3 Service staff Cleaner 2 Driver of automobile 1 Security officer 1 Total: 4 Technical staff Cashier 1 Secretary 1 Total: 2 Technicians-and-engineers Beruni zone-16 Head of zone 2 Maintenance mechanic of zone 2 Master 16 Operator of PS 48 Operator of PS 48 Total: 116 Beruni zone - 7,5 - 5 Master 5 Operator of PS 20 Operator of PS 20 Motor mechanic (machinist) 20 Total: 65 Nyman-Beshtam PS 145-22,5 m/sec А=24 km Head of zone 1 АНТ/ Ekspert Fikri Page213 of221 Electrician engineer 1 Operator of PS 6 Operator of PS 6 Total: 14 Zone of Beruni collector 1 - 6-110 Head of zone 1 Maintenance mechanic of zone 1 Electrician engineer 1 Operator of PS 8 Operator of PS 8 Operator of PS 8 Total: 27 Kilchinak zone 6х320 - 1 Head of zone 1 Maintenance mechanic of zone 1 Operator of PS 6 Operator of PS 6 Total: 14 Kilchinak zone-5/87А #1 - 1 Head of zone 1 Operator of PS 7 Operator of PS 7 Total: 15 Kilchinak zone-5/87А #2 - 1 Head of zone 1 Operator of PS 3 Operator of PS 6 Operator of PS 6 Total: 16 Zone of Aksakalach canal-500/10 Head of zone 1 Electrician engineer 4 Operator of PS 4 Operator of PS 3 Electrician 4 Total: 16 Ellikkala zone-1,1 - 4 Head of zone 1 Maintenance mechanic of zone 1 Master 4 Operator of PS 12 Operator of PS 12 Operator of PS 5 Operator of PS 4 Total: 39 Ellikkala zone ПНС-7,5 5 Master 5 Operator of PS 20 Operator of PS 20 Motor mechanic (machinist) 20 Total: 65 Zone of Kyzyl Kum PS 1 -8/70 А=24 m/sec 20% Head of zone 1 АНТ/ Ekspert Fikri Page214 of221 Maintenance mechanic of zone 1 Electrician engineer 1 Operator of PS 4 Operator of PS 4 Operator of PS 4 Operator of PS 4 Operator of PS 4 Total: 23 Transport and service of water Head of zone 1 Maintenance mechanic of zone 1 Master 3 Total: 5 Motor transportand mechanical service Mainspecialiston fire safety andmeasures on operation safety 1 Machinist of single-bucket excavator 1 Tractor driverТ-28/4 6х1 class 20% 6 Tractor driverТ-28/4 3х2 class 10% 3 Tractor driver Т-40 1 class 20% 3 Machinist ofautomotive-type crane,3 class 1 Machinist of auto truck, 2 class 10% 1 Driver of automobile 3 class 1 Driver of automobile 1 class 25% 1 Machinist of auto truck, 1 class 25% 1 Machinist of auto truck, 1 class 25% 1 Machinist of auto truck, 1 class 25% 1 Machinist of auto truck, 1 class 25% 2 Machinist ofautomotive-type crane 1 class 10% 1 Driver of automobile 1 class 25% 1 Machinist of auto truck, 1 class 25% 1 Total: 26 Mechanical workshop Garage manager 1 Engineer operator 1 Fireroom operator 3 Turner 1 Assembling fitter 1 Carpenter 1 Welder on radio-frequency current 2 Battery attendant 1 Logistics manager 1 Blacksmith on press and sledge-hammer 1 Tinker 1 Security officer 3 Electric and gas welder 1 Warehouse manager 1 Motor mechanic (machinist) 2 Total: 21 Supply department of materials, installed equipment and facilities Head of department 1 Key specialist 2 АНТ/ Ekspert Fikri Page215 of221 Technician 2 Total: 5 Maintenanceof substation and electrical communication Head of department 1 Mechanician engineer 1 Electrician 2 Electrician 2 Total: 6 Communication, automation and telemechanics service Engineer operator 1 Electrician 1 Electrician 1 Total: 3 Communications department Telephone operator (Beruni) 4 Telephone operator (Turtkul) 4 Telephone operator (Ellikkala) 4 Total: 12 Maintenance Electricianof Nyman-Beshtam 4 Electricianof Beruni collector 4 Electricianof Kyzyl Kum 4 Total: 12 Turtkul zone Head of zone 1 Mechanician engineer 1 JuniorMechanician 7 Operator of PS 21 Operator of PS 21 Total: 51 PS of Kumbaskan canalС-1 Electrician engineer 1 Operator of PS 16 Operator of PS 8 Total: 25 TOTAL: 594 АНТ/ Ekspert Fikri Page216 of221 ANNEX F PHOTO OF FGD, PUBLIC MEETINGS - CONSULTATIONS AND WORKSHOPS IN PROJECT AREA АНТ/ Ekspert Fikri Page217 of221 АНТ/ Ekspert Fikri Page218 of221 АНТ/ Ekspert Fikri Page219 of221 АНТ/ Ekspert Fikri Page220 of221 АНТ/ Ekspert Fikri Page221 of221 АНТ/ Ekspert Fikri Page222 of221 АНТ/ Ekspert Fikri Page223 of221 АНТ/ Ekspert Fikri Page224 of221