Project to improve irrigation resource management (IRM) in Morocco's Tadla irrigation perimeter. The project, to be implemented by an institutional contractor (IC) in cooperation with the Tadla Regional Agricultural Development Office (ORMVAT), will: (1) improve system- and farm-level IRM; (2) promote environmentally sustainable IRM; and (3) increase private sector activity in the region. A small research component is included. System-level IRM improvement will include four efforts. The first three are preparatory: (1) diagnostic study of the existing physical irrigation system; (2) analysis of water flow into the system; and (3) improved assessment of water demand via development of a Geographic Information System and installation of automated meteorological stations in Tadla's three climatic zones. Fourth, to improve IRM itself, the IC will install a hydraulic monitoring system and a computerized hydraulic model for the primary elements of the two Tadla sub perimeters; establish mobile units to monitor water distribution at the primary, secondary, and tertiary levels; and, use data gathered by these means to develop a computerized water distribution management system. These activities will reduce water losses and increase the system's timely responsiveness to farmers' needs. To improve farm-level IRM, the IC will conduct an intensive study of 200-300 sample farms over at least 2 full cropping cycles. Results, along with data from other project activities, will be used in on-farm pilot demonstrations of improved technologies, e.g., conjunctive use of surface and ground water; trials of high-value crops; and improved pest and soil management. The information generated will be disseminated via extension agents, regional workshops, and radio broadcasts -- on a new station which will be established with project support. Four activities will address environmental problems stemming from inadequate IRM (e.g., waterlogging, salinization, and water and soil degradation). The IC will establish three monitoring systems -- for groundwater drainage, soil and water quality, and agrochemical practices and residues -- and will develop a groundwater model. Data from these activities will be integrated with the monitoring systems, models, and databases under other project components and incorporated into the project's demonstration and extension efforts. The IC will also conduct environmental audits of agro-processing plants, with emphasis on developing recommendations for water use/pollution reductions. To promote private sector participation in the Tadla economy -- private sector being defined to include farmers, co-ops, professional groups, private agribusinesses, and public agribusinesses slated for privatization -- the IC will conduct a comprehensive, gender-sensitive assessment of regional agribusiness interests and linkages, followed by an institutional strengthening program in which training, TA, and in some cases, equipment will be provided to selected input and service suppliers. The IC will encourage private participation in the project's IRM, demonstration, and environmental monitoring activities, and will facilitate joint U.S.-Moroccan ventures. The IC will also develop improved mechanisms for private-public sector dialogue and information exchanges and will sponsor U.S. study tours in order to foster a twinning relationship with a U.S. agricultural community. This component will further the mandated change in ORMVAT's role from a directive to a facilitative mode of farmer support. Finally, the project will support a small existing on-farm R&D program of the International Irrigation Management Institute (IMMI). The project will be implemented in coordination with two new major World Bank projects. Amendment of 3/25/94 reduces funding from $18.75 million to $10.625 million due to decreased DA and ESF funding available for Morocco, and, consequently, (1) shortens the IC's in-country presence from 5.75 to 4.5 years; (2) eliminates the private sector component, though assistance will be provided to the sector by other projects (primarily, Morocco Agribusiness Promotion, Training for Development, and New Enterprise Development); and (3) cancels the planned activity with IMMI due to its difficulties in obtaining other donor funding and establishing itself in the project area. Finally, the project will increase its focus on gender and environmental issues. (PD-ABI-324).