Announcement of IDA Approves Sixteen Million Dollars Credit for Irrigation Project in Nepal on June 30, 1980

FOR IMMEDIATE RELEASE . ' . .NorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELr:ASE NO. 80/112 June 30, 1980 IDA APPROVES $16 MILLION CREDIT FOR IRRIGATION PROJECT IN NEPAL The International Development Association (IDA) has approved $16 mill ion in credit to help improve and extend the irrigation and drainage system in Nepal. IDA is the World Bank's affiliate for concessionary lending. The $19.5 mi 11 ion Mahakal i Irrigation Project (Stage l) wi 11 provide farmers with a more reliable supply of water thus reducing dependence on mon- soon rains and enabling the adoption of more modern methods of agriculture. The project calls for improvements to existing irrigation and drain- age system in 3,400 hectares of agricultural land and extension of the same system to another 3,200 hectares. In addition, buildings for technical activities and staff quarters • as well as a network of all weather access and canal service roads will be constructed . Provisions have also been made for technical and agricultural extension serv,i.ces for all aspects of the project. Fellowships for Nepali students to study civil ~nd mechanical engineering and agriculture will help alleviate the shortage ot local technical personnel. The project also calls for the strengthening of the agricultural development activities in the Bhairawa-Lumbini Groundwater Project now being carried out. The IDA loan is for 50 years, including 10 years of grace. It carries no interest but bears a service charge of 3/4 of 1% per annum to cover administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T EC HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: Mahaka 1 i Irrigation Project (Stage 1) Nepal $ 19. 5 mi 11 ion • IDA FINANCING: $ 16. 0 mi 11 ion, standard I DA terms OTHER FINANCING: Government of Nepal, $3.3 million; and farmers $0.2 mi 11 ion IMPLEMENTING ORGANIZATION: Mahakali Irrigation Development Board c/o Department of Irrigation, Hydrology and Meteorology Panipokhari, Kathmandu, Nepal. PROJECT DESCRIPTION: It includes: (a) improvements to existing irrigation and drainage system in 3,400 hectares and extension of the same system to another 3,200 hectares; (b) construction of a network of al 1 weather access and canal service roads; (c) construction of buildings for technical activities and staff quarters; (c) provision of technical and agricultural extension • services for al 1 aspects of the project; (d) fellowships for Nepali students to study civil and mechanical engineering and agriculture; and (e) strengthening of agricul- tural development activities in the on-going Bhairawa-Lumbini Groundwater Project over a three-year period. PROCUREMENT: Materials, equipment, vehicles, and spare parts will be purchased on the basis of international competitive bidding. CONSULTANTS: About 110 man-months will be required for engineering services over a five-year period, including bid evalua- tion and construction q~al ity control. Techntcal assistance will also be tequired'for agricultural activities and operation of a pilot farm. , ECONOMIC RATE OF RETURN: EST I MATED COMP LET I ON DATE: 14% 1985 - 0 - •