Announcement of IDA to Support Irrigation Engineering Project in Nepal on January 8, 1981

.o . . ··.; FOR IMMEDIATE RE~EASE . \ '¥ . World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477~1234 IDA NEWS RELEASE NO. 81/36 January 8, 1981 IDA TO SUPPORT IRRIGATION ENGINEERING PROJECT IN NEPAL The lnternational Development Association (IDA) ,the soft- loan affiliate of the World Bank, has approved a credit of SOR 2.8 million ($3.5 mill ion) for assistance in oreoarinq detailed designs and tender documents and ln evaluation of tenders for the proposed Babai Irrigation Project in Far West Region of Nepal. The project also includes preparation of detailed designs for the construction of a 30-kilometer stretch of the East-West Highway. The engineering project wil 1 be carried out by the Department of Irri- gation, Hydrcl09y ~~n Meteorology, Panipokhari Kathmandu, Nepal. The proposed Babai Irrigation Project will provide irriga- tion, drainage, and road infrastructure for 13,500 hectares of land. • The project will increase agricultural production and farm incomes in the area, and accelerate rural development. The main irrigation project works wi 11 be the construction of a diversion weir on the Babai River upstream of Bargadaha with main canals and subsidiary canals for irrigation. The IDA credit is for 50 years, including a 10-year grace period. It carries no interest but bears a service charge of 3/4 of 1% a year to cover administrative costs. NOTE: !DA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit • •