THE MASTER PLAN
 
The survey has shown that, by regulating the flow of the Mahaweli Ganga, its tributaries and the Maduru Oya, it would be possible to supply some 5,600,000 acre feet of water for the dual purpose o power generation and irrigation (see Section 2 above). An outline programme extending to 1996, called the Master Plan, has been prepared for the construction and development work required to make use of these resources.
 
            It purpose that 15 reservoirs should be constructed, 11 of them with power station. A twelfth power station is plan on a trans basin canal. The installed capacity of the station planned is 508 megawatts with a total out put of firm power of 2,037 k w h per year. The regulation of river flows with the half of these reservoirs should result in the additional benefit of food control over some 200 square miles.
 
            It is proposed to irrigate 900,000 acre of land, by means of 14 irrigation systems. More than half of this land lies in the Mahaweli and Maduru
Oya Valleys
, and the reminder in the north-central part of the country.
 
            It is estimated that the period of construction required to complete all the works including in the Master Plan should be about 30 years. In view of the dimensions of this long range programme it is essential that the rate of development is commensurate with a realistic assessment of the availability of the necessary resources for construction of the works and early maximization of agriculture out put. Further account has to be taken of the expected growth rate of irrigation and power demands.  Finally there is an overriding need for flexibility within the whole plan. The Master Plan is accordingly split up in to three phases, each phase , each phase consisting of a number of project. Each project in the first phase is evaluated on the basis of the following criteria. :-
 
(i)         it should capable of development as a separate unit without financial  commitment to other projects within the phase or in the subsequent phase;       
 
(ii)        It should not prejudice subsequent development.
 
(iii)       Its size and nature should be consistent with the ability of the government to develop the reclaimed land; accordingly priority should be given for areas where settlement, infrastructure, and management do not present great problems;
 
(iv)       It should meet the anticipated expansion in demand for power.
 
(v)                It should be economically variable
 
PROJECTS OF THE FIRST PHASE OF DEVELOPMENT (1969-80)
 
The projects of the first phase of development are as follows :-
 
Project 1 :       Polgolla Diversion (1969-73)
 
            The head structure of polgolla with a hydro-electric station of 35.8 megawatts installed capacity is to convey water from the Mahaweli Ganga to the Sudu Ganga (a tributary of the Amban Ganga) through a tunnel. From the upper reaches of the Amban Ganga part of the flow is to be diverted along the polgolla, Kala Oya (PK) Canal to the Kala Oya basin, to irrigate all of the developed and 70 percent of the new lands in system H. The last portion of the PK Canal is to be in a tunnel. At the end of which a Hydro-electric station of 3.7 megawatts is be installed. The reminder of the water is to be conveyed to the existing Elahera
Canal
to irrigate the entire area in systems D-1 and G.  
 
            The total irrigated area would be 186 thousand acres of which 84 thousand acres would be newly irrigated, and the remaining 102 thousand acres come under improved irrigation. Assume two crops a year. Nearly 70 percent of the total crop acres should be under paddy, and the remained under such crops as ground nut, cotton, Vegetables, maze, chilies, and various pulses. The total installed capacity at the hydro-electric power station would be 40 megawatts' an the annual energy production of 200 million kWh. The total cost of Project I is estimated to reach Rs 576 million and the total benefit at Rs. 130 million of which Rs. 118 million is provided by agriculture and Rs. 12 million  power.
 
Project No 2: Victoria
Minipe Diversion (1973-77)     
 
            The head structure on the Mahaweli Ganga (Victoria Project) with a hydro-electric station of 120 megawatts of installed capacity, is to feed through the new right-bank (R.B.) canal and the existing Minipe canal (both of which originate at the existing diversion structure at Minipe) a total irrigated area of 88,000 acres is system C and E of which 14,000 acres are presently irrigated lands and 74,000 acres in system C only are new lands.  In this area it is envisaged that a higher proportion of land should be under crops other than paddy. Particularly groundnuts. On the assumption of two crops per year it is in fact intended that paddy should occupy less than one third of the total crop acres.
 
Firm energy production would be approximately 470 million kWh per year. The commissioning Victoria hydro-electric station would meet the electric power demand expected by 1976 in addition, The “free” storage of water in the Victoria reservoir would compensate for the decline in power generation at he Polgolla station during the dry season and would also allow the irrigation of 116thousand acres of new land in the second phase of the scheme (When Maduru Oya and Taldena unit are commissioned). The total cost of Project 2 is estimated at Rs. 676 million and the total benefit at Rs. 118 million of which Rs. 92 million represent the value of agricultural benefits and Rs. 26 million represent power benefit s.
 
Project No.3: Moragahakanda Multi Purpose Unit (1977-80)
 
            The regulated discharge of the Moragahakanda head structure on the Amban Ganga with a hydro-electrics station of 40 megawatts of installed capacity, Is to provide the complete water supply to a total of 54,000 acres in systems A, D, H (30%) and I/H  (28,000 improved and 26,000 newly irrigated). As in the case of the irrigated area in project 1, a high proportion of the area should be under paddy cultivation, and this crop is intended to occupy some 80 percent of the total crop acres. in the remaining area groundnuts and cotton are intended to predominate although small areas would be planted to chillies, Vegetables and onions. 
 
            Firm energy production would be 150 million k W h per year. The total cost of project 3 is estimated at Rs. 298 million. And it shows the highest unit cost per acre of the three projects. However, a part of the benefits from the project would spill in to the second phase. Thus, it should be considered as the transitional step between the first and the second phase of the scheme.  The total benefit is estimated to be Rs. 34 million is provide by agriculture and Rs. 8 million by power.
 
Summary of the First Phase
            It is proposed to irrigate a total of 328,000 acres in the first phase development. Of these, 184,000 acres would come under new irrigation and 140,000 acres of the existing irrigation systems would be improved. Paddy would be the major crop ground during the first phase of development and it is proposed that crop should be grown on some 70 percent of the total crop acres. The predominance of land best to paddy production enables experience to be gained elective use of improved water supplies, without undue reliance being placed on other crops and farming systems, for which additional is required. On the remaining crop acres of the first phase, ground nuts, vegetables, and cotton are expected to predominated, with a smaller area of chilies, onions, maize, various pulses and sugar. The hydro-electric stations proposed for construction would have a total installed capacity of about 200 megawatts and would produce about 820 million k W h of firm energy per year. The total cost of the first phase projects is estimated at Rs 1,550 million of which Rs. 537 would be required I foreign exchange and Rs. 1,013 in local currency. It is estimated that the total benefit from the first phase would be Rs. 290 million of which Rs. 244 million is provided by agriculture and Rs. 46 million by power.
 
SUBSEQUENT PHASE OF DEVELOPMENT
The development proposed for the first phase involves less reliance on major changes in cropping system and farming standards than in required in the subsequent phases. Detailed planning of the subsequent phases should be phase on the experience gained during implementation of the first phase particularly the rate of adaptation by settler to the more intensive farming systems which are required, and the organisational and management needs.  
 
            In the second phase it is propose to complete the development of irrigation in the Mahaweli and Maduruoya basins, having met the water requirements of the lands of systems A and B.  “Free” storage available at Victoria and Moragahakanda, and at the newly constructed small-sized hydropower units of Maduruoya and Taldena, is to be utilized for this.
 
            The total irrigated area would be 230,000 acres (209,000 acres of new irrigation and 21,000 acres of improvement to existing irrigation system). A small hydro-electric station at Taldena with an installed capacity of 15 megawatts would generate 48 million k w h of firm energy per year. The total cost of the second phase is estimated at Rs. 920 million.
 
            The third phase of development provides for irrigation of land in the north-central part of the country and completion of the hydro-power development of the Mahaweli and its tributaries.
            The total irrigated area would be 342,000 acres (81,000 acres of improvement to existing systems and 261,000 acres of new irrigation)
 
            The proposed hydro-electric station would have a total installed capacity of 293 megawatts and would produce 1,169 million k w h of firm energy per year.
 
            The cost of the third phase is estimated at 3,113 million. The cost per acre of irrigation (Rs.8,830) is higher than the respective unit cost for the other two phases and for the whole scheme; however, the planned intensive use of the irrigated lands in the north-central part should provide a sufficiently high rate of return (12 percent).
 
            During these subsequent phases of development it is envisaged that more land suited to diversified cropping would be develop under irrigation, particularly in the north-central part of the country under phase III.
 
            Total benefits for phase II and III are estimated to be approximately Rs. 812 million, of which Rs. 744 million is provided by agriculture and Rs. 68 million added by power generation.
 
ORGANIZATION AND MANAGEMENT
 
            In view of the magnitude of the scheme, it is essential that there should be co-ordinate inter-ministerial responsibility, and a separate and flexible organization to carry out the agreed policies. Within the executive organization there needs to be the maximum co-ordination between irrigation engineering, agricultural development and land settlement at all levels.
 
            The existing institutional arrangements for agricultural development provide and impressive coverage of supporting service to the farmer, the effectiveness of the services however would be greatly increased with better coo ordination and organization. A trend towards inter-ministerial co-ordination is evidence by the establishment of such committees as the food production sub-committee of the cabinet and the inter-ministerial committee for special project under the rehabilitation programme. The establishment of and organization to carry inter-ministerial co-ordination a stage further, so that implementation of policy direction of a cabinet sub-committee is in a legally established Authority, is highly desirable such and Authority, headed by an Executive Board, would be responsible for the supervision of planning and implementation, and ensuring the necessary coordination of ministerial and departmental action in these processes. It required the necessary supporting organization at headquarters, project area, and held levels.
 
ZISE OF LAND HOLDINGS
 
Under past and present settlement polices land holdings have varied between 3 and 8 acres these size being fixed on and empirical basis. The  proposals for the project envisage that the majority of holdings will be 5 acres, some between 12 to 15 acres and a few in excess of 200 acres. However more information is required to define more accurately the optimum size of holding for the various areas, particularly under intensive diversified cropping, where the ability of the family to meet the labour requirements is crucial. It is also necessary that a continuing evaluation of land use and net output be made in order to adjust holding size to meet the social, political and economic needs of the country.
 
OVERALL COSTS AND BENEFITS
 
The cost and benefits for each project in the first phase, for each of the subsequent phases and for the overall Scheme have been given in sections 6 and 7. The overall cost including provision for irrigation, drainage flood protection, land development and settlement and power production is estimated at Us. 5,583 million. with a foreign exchange component of about 38 percent. Additional activities resulting directly from the Scheme, such as power transmission, marketing and processing of agricultural products and revenue earning Government activities are estimated to add a further Rs. 1,120 2tt million giving a grand total of some Rs. 6,700 million.
 
It is estimated that at full development the annual total benefits from agricultural production (at world market prices) will be Rs.988 million The benefits from power generation are estimated to be Us 114 million.
 
Further economic detail in terms of both costs and benefits, are given in Table II the Costs and benefits for all three phases are estimated in terms of prevailing market prices. It will be noted from this Table that the internal rate of return for the whole Scheme is estimated at 15 percent The capital cost benefit radio for  the Scheme is estimated at 5.1
 
I.  after deduction of current for operation and maintenance of irrigation works, Extension and other service.
RECOMMENDATIONS
 
1.   Establishment of Mahaweli Ganga Authority
 
In view of the magnitude of the overall Scheme, and the essential need for co-ordinated inter-ministerial responsibility, together with a separate flexible Organization to carry out the agreed policies right from the start, it is recommended that immediate consideration should be given to the establishment of the Mahaweli Ganga Authority. The formalities of legally establishing such an Authority should not however be allowed to delay the preparation of the hurl designs for Project I of the first phase, and an ad Hoc  committee should be established in the interim period to ensure prompt action
 
2.       Implementation of Works
 
Implementation of works in Phase I should start at once. The studies for works in Phases II and III were carried out in less detail than those for Phase I and further topographical, geological soil and hydrological surveys are required for these subsequent phases. Further there is considerable scope for improvement of the detailed planning of these subsequent phases on the basis of the practical ‘experience gained during the implementation of the first phase.
 
3.   Implementation of Phase I
 
Engineering works for supply of water
 
Immediate action should be taken to prepare the final designs of the structures required in Project i as outlined in Chapter VIII of this volume. Early action should be taken to initiate prepara­tion of the final designs of the structures of Project 2, and subsequently of Project 3. as that construction can follow on after completion of the preceding project.
 
Settlement of farmers
It is essential to maximize agricultural output as soon as possible. By 1973 the engineering works of Project I will have been completed and an assured supply of water will be available for irri­gation. Development of the newly irrigated land is based on the settlement of farmers transferred from aver-populated regions of the country. In order to ensure that the water can be used as soon as it becomes available, steps should be taken to select settlers for the new ~ands, and complete the enlarge­ment of existing holdings. This should be done early enough to allow the new farmers to construct houses and clear the land by the time the engineering works are completed in 1973. Recommend­ations are given concerning the selection of settlers, the clearing and preparation of land, land tenure (including annual rent and ultimate purchase), water charges and village planning and development.
 
Similar steps should be taken to ensure settlement prior to 1977 for Project 2 and 1980 for Project 3. Experience gained should be evaluated at each stage and used in the succeeding stage.
 
Extension and training services for development of the proposed cropping system
 
Paddy cultivation methods are well known to farmers, the labour requirements of the crop are low, arid present policy accords priority to paddy in the price structure and in supporting services. Therefore, to achieve the proposed cropping pattern, immediate action should be taken to strengthen and prepare the extension service in the area of Project I, and subsequently in those of Projects 2 and 3. The crop production targets for time three projects of the first phase are given in Chapter VI. In-service training of extension workers both in subject matter and iii extension techniques should he intensified and close liaison between research anti extension staff should he maintained. It is ___ paddy cultivation will continue to dominate farmers interests for some time, and that there are gaps lThlka4nowledge of other crops. Experience will also have to be gained in animal husbandry, and in farm management requirements for optimum development of intensive and diversi­fied en cropping systems. However, current information, supplemented by additional data obtained during the period of engineering construction, will be sufficient for a strengthened, well briefed and trained extension service to commence the crop production programme.
 
in the training of extension stall of the projects of the first phase, greater attention should be given to the specialization of certain workers to youth training, to agricultural information, and to work among women.
 
It is also recommendation that a practical Agricultural
School
should be established to provide training to young farmers and their families. This should be established on an existing government farms or experimental substation in area H of Project I, where special problems exits.
 
Credit and marketing
 
As, at present, priority is accorded to paddy in the price structure, price incentives should be established to induce farmers to grow a progressively higher proportion of other crops. In the long tern, however, the desired production changes should be effected more through the subsidization of key inputs than through price incentives It) the producer.
 
Special consideration should be given to credit requirements, both for working capital and, especially in the ease of new settlers, for investment capital. In order to encourage diversification, loans should be made available for crops other than paddy.
 
It is recommended that an appropriate amendment should be made to existing legislation to permit co-operative societies within the three project areas of the first phase, under the control of the Authority, to deal on the free market, so as to ensure that the best price is obtained for the societies’ members.
 
in the plans of each project area, allowance should be made for additional storage and processing requirements, transport facilities, and for participation by the private sector.
 
4          Recommendation for Further Investigations
 
I or implementation of the first phase in accordance with the time schedule for each project, early action is required on the recommendation listed in Section 3. However, the engineering designs for the first phase have still to be finalized, and for this, further field investigations are required. Also, iii order to obtain lull benefit from the agricultural potential of the projects in the first phase, and prepare the way for the more intensive diversified cropping systems in the second and third phases, further investigation  are required. these should be carried out concurrently during the period of the first phase the investigation required are summarized below.
 
Engineering design work
 
The final designs of units of the first phase of development should be carried out on the basis of the feasibility study. marking use of the services of foreign contractors. The latter may be entrusted with the design of the head structures of Polgolla
, Victoria
and Moragahakanda. The designs for canal and irrigation systems can be carried out with the help of local specialists.
 
It must be emphasized that, if it becomes necessary to introduce any changes in the main parameters of the head structures, such as the normal water surface elevation of the reservoirs, regulated discharge and the conveyance   capacities of diversion traces, these should be correlated with the general scheme of water distribution.
 
Field studies
As the field investigation necessary for the final designs, namely topographical surveys, geological soils and hydrological studies are the most laborious part of’ the work, they should be started in all three projects of the first phase, so that future designs are not delayed. It is advised that the hydrological studies for the second phase should be started now.
 
The field investigations tin the feasibility study on the second phase should be used to further finalize the Master Plan, as was done on completion of the feasibility study for the first phase of development
Pilot Plots
 
Research in irrigated agriculture should begin early. The first step in this direction could be in the form of pilot plots to be organized for each project.  
 
Marketing and credit
It would be advisable to carry out. as soon  as possible a study of marketing conditions and possibilities for Ceylon
farmer to enable the preparation the appropriate recommendations. These questions are of grate importance for the future agricultural development of the country and then timely accomplishment may favor the realization of the first phase projects.   
 
Farm management and labour requirements
 
Studies should be made of the farm management requirements necessary to irrigate the propose crops in to and intensive farming system including livestock and of the economics of agricultural production. Special attention should be given to the Practical ability of the family to meet the labour requirements on the five acre holdings which are proposed.
 
Mechanization
 
Studied should be made of the most suitable practical methods of mechanizing farming operations. The studies should consider in detail the combined use of draught animals and mechanization as it is likely that animals may be needed for some considerable time, to overcome the shortage of tractors, and for various operation other than it ploughing.  Studies should also be made of the organisational requirements to ensure timely and efficient use of mechanical equipment
 
Survey of existing systems where diversified cropping is  practiced
 
As Part of the farm agricultural economic studies a survey should be carried out immediately on existing colonization schemes and else where diversification is practiced, to measure land use and not out put of farmers on  differing  sizes and patterns farm units and under differing conditions. In addition to defining more accurately the optimum size of the family unit for each area and highlighting the farms management problems of intensive, diversified farming system. Such a survey would act as a basis for an extension programme, and should be carried out by field extension staff under specialist guidance.
 
Throughout the life of the project there should be a continuing evaluation of land use and not output and developed areas in on orders that new holding size from can be adjusted from tome to meet the social, political and economic needs of the country. Such a survey and subsequent evaluation should provided valuable information of the credit needs of farmers.  
 
Irrigation requirements
 
Studied should be made of various techniques of irrigation particularly   on the up land soils under diversified cropping in to ensure optimum water Use. Particular attention should be given to the drainage system required for crops other than paddy.
 
5    Need for Technical Assistant
 
As mentioned in the first part of this chapter, the supporting services to farmers will have to be considerably expended and strength head on implementation of the scheme. To assist in this expansion, and particularly in the performance of the investigations recommended in the previous section it is recommended that the Government seeks technical assistance from out side the country.