Announcement of IDA Assists Modernization of Irrigation System in Sri Lanka on December 2, 1976

•world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202} 393-6360 IDA NEWS RELEASE NO. 77/15 DECEMBER 2, 1976 !DA ASSISTS MODERNIZATION OF IRRIGATION SYSTEM IN SRI LANKA ----- -------------------·-·---·---·- --·-··--- A credit of $5 mill ion from the International Development Asso- ciation (IDA), an affiliate of the World Bank, will assist Sri Lanka in financing the modernization of its traditional tank irrigation and drainage scheme. The United Kingdom is contributing $6 million as grant to help finance the project. The $30 million project will provide for the mocernization of five tank irrigation schemes -- small reservoirs with earth-filled dams, • typically with a storage capacity of a few thousand acre-feet -- in the north-central dry zone, serving some 32,000 acres. By rehabilitating and improving the existing dams and conveyance systems, and with improved water management and agricultural supporting services, the project aims at increasing farm production in the command areas. The project provides the basis for future modernization of tank irrigation schemes in Sri Lanka. The project wi11 bring significant benefits to Sri Lanka's econo- my. At full development, the project will help increase agricultural production -- rice, cereals and pulses -- by more than 22,000 tons. This will contribute to an estimated annual savings of $4 million in foreign exchange. The project wi 11 help to increase employment opportunities in the rural areas and to raise farm incomes. The Food and Agriculture Organization of the United Nations (FAO) joined the IDA in identifying and preparing the project under the BANK/FAQ Cooperative Program. The IDA credit to Sri Lanka is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% . • NOTE: Money figures are expressed in U.S. dollar equivalents. FOAM NO. 11 :;,n (5-76) T ECH N I CA L DATA PROJECT: COUNTRY: TOTAL COST: Tank Irrigation t1odern i zat ion Sri Lanka • $30 million IDA FINANCING: $5 mill ion credit, standard IDA terms OTHER FINANCING: The United Kingdom, $6 million as grant Government of Sri Lanka Participating commercial banks IMPLEMENTING ORGANIZATION: Department of Irrigation, Ministry of Irrigation, Power and Highway, Government of Sri Lanka, Colombo, Sri Lanka. PROJECT DESCRIPTION: It provides for the modernization of five existing tank irrigation and drainage schemes located in Sri Lanka's north-central dry zone. It includes civil works; equfpment and vehicles; agricultural supporting services; and technical assistance·. • PROCUREMENT: International competitive bidding (ICB) under IDA guide- 1 ines for equipment and vehicles financed by IDA; tied procurement under U.K. guidelines for equipment and vehicles financed by U.K.; force account or unit-cost contracts with local laborers under usual Government procedures for civil works; normal trade channels for small off-the-shelf items costing less than $10,000 each and aggregating less than a total of $100,000. TECHNICAL ASSISTANCE: One water management specialist for at least two years to assist in the project layout and design, development of operating schedules for the tanks and rotation schedules for the water supply system, and training of local staff; and funds for an independent local organization to conduct benchmark and follow-up surveys and to analyze the results. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 23% 1981 • - 0 -