Announcement of IDA Assists Irrigation Project in Nepal on October 12, 1978

.FOR IMMEDIATE~ RELEASE ... t, - / ·•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NOa 79/20 OCTOBER i2, 1978 IDA ASSISTS IRRIGhTION PROJECT IN NEPAL The International Development Association (IDA), an affiliate of the World Bank, tc,day announced the approval of a credit of $14 million to help finance an irrigation project in Nepal. The $17 million project is designed to upgrade and increase the capacity of the existing Nepal Eastern Canal (NEC) irrigation system and extend the development of its command area which was begun with the assistance of an earlier IDA credit of $6 million. The project includes the improvement of NEC•s remaining length (52 kilometers); protection of the Canal against flood damage; further development of its irrigation and distribution system; pilot schemes for privately owned co111T1unity tubewells, waterlogging control, low-cost all-weather road; expansion of • agricultural extension and training schemes; and the provision of technical services including consultants. At full development, the project is expected to help increase the production of foodgrains and other crops by about 40,000 tons a year. About 2,000 additional full-time agricultural jobs will be created, mostly to the benefit of the landless laborers and smallholders with less than one hectare. Average per capita income of the farmers in the project area is expected to increase from $75 to $120 a year. The IDA credit to Nepal is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. - 0 - NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 ,(5-76) T ECHNI CAL D A T A • PROJECT: .Narayani Zone Irrigation Stage II COUNTRY: Ne.pa 1 TOTAL COST: $17 mi 11 ion IDA FINANCING: $14 million, standard IOA terms OTHER FINANCING: Government of Nepal; Agricu1ture Development Bank of Nepal; and participating farmers IMPLEMENTING ORGANIZATION: Narayani Zone Irrigation Board Shreepur, Birganj Nepal PROJECT DESCRIPTION: The project includes the improvement of 52 kilometers of Nepal Eastern Canal (NEC); protection of NEC against flood damage; drainage network and canal service roads in 12,700 hectares (ha.), and improvement of those constructed in 16,000 ha. in Stage I; pilot schemes for privately owned cofTflluni~y tubewells, waterlogging control, low-cost all-weather roads; and provision of technical. services including consultants. PROCU.REMENT: Civil works contracts will be awarded on the basis of locally advertised competitive bidding because they are small in size and are scattered geographically. Equipment and vehicles will be procured through international competitive bidding. A preference of 15% or applicable duty, whichever is less, will be granted to local manufacturers. CONSULTANTS: About 90 man-months of consultants' services will be provided. ECONOMIC RATE OF RETURN: 22% ESTIMATED ·coMPLETION DATE: 1983 - 0 - •