Nepal - Second Bhairawa - Lumbini Groundwater Project

Document of The World Bank FOR OMCIAL USE ONLY MICROFICHE COPY Report No. 10477 Report No. 10477-NEP Type: (PCR) SARMIENTO,/ X31680 / T9032/ OEDDI PROJECT COMPLETION REPORT NEPAL BHAIRAWA LUMBINI GROUNDWATER II PROJECT (CREDIT 1316-NEP) APRIL 2, 1992 Agriculture Operations Division Country Department I South Asia Regional Office rhis document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit: Nepalese Rupee (NRs) 1 Nepalese Rupee at project completion - US$0.033 US$1 at Appraisal = NRs 13.20 Project Start NRs 15.50 Project Completion = NRs 3C.15 WEIGHTS AND MEASURES EQUIVALENTS 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) 1 kilo volt (kV) = 1000 volts (v) ABBREVIATIONS AND ACRONYMS DCA - Development Credit Agreement DTW - deep tubewell ERR - Economic Rate of Returm FCGO - Financial Comptroller General's Office GRDB - Groundwater Resources Development Board HMGN - His Majesty's Government of Nepal IDA - International Development Association MOF - Ministry of Finance MOWR - Ministry of Water Resources NRs - Nepalese Rupees NZIDB - Narayani Zone Irrigati(n Development Board O&M - operation and maintenance PCR - Project Completion Report SA - Special Account SAR - Staff Appraisal Report WUG - Water Users' Group FISCAL YEAR July 16 - July 15  THE WORLD BANK FOR OMCIAL USE ONLY Washington. D.C. 20433 U.S.A. Office of Directot cetal Opn atims Evakation April 2, 1992 MEMORANDUM TO THE EXECU.TIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Nepal - Bhairawa Lumbini Groundwater II Project (Credit 1316-NEP) Attached, for information, is a copy of a report entitled "Project Completion Report on Nepal - Bhairawa Lumbini Groundwater Project (Credit 1316- NEP)" prepared by the South Asia Regional Office with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT COMPLETION REPORT FOR OMCIuL USE ONLY NEPAL BHAIRAWA LUMBINI GROUNDWATER II PROJECT (Cr. 1316-NEP) TABLE OF CONTENTS Page No. PREFACE .......... .. . . . . . . .*.*. .*. .*. . 1 EVALUATION SUMMARY ........ . . . . . . .*........ . iii PART I - PROJECT REVIEW FROM IDA'S PERSPECTIVE Project Identity . . .. . . . . . . . . . . . . . . 1 Background .. .. .. ........... . 1 Project Objectives and Description . . . . . . . . . . . . . . . 2 Project Design and Organization . . . . . .... . 3 Project Implementation ........... . . . . . .... . 3 Project Results.. ........... . 6 Project Sustainability . . . .. ........ . 7 IDA Performance and Lessons . . .. . . .... . 7 Borrower's Performance.. . . ....... 8 Project Relationship . . . . . . . . . . . . . . . . . . . . . . 8 Consulting Services ............. . . . . . .... . 8 Project Documentation and Data . . ........... . 9 PART II - PROJECT REVIEW FROM BORROWER'S PERSPECTIVE IDA's Perfoimance . . . . . . . . . . . . . . . . . . . . . . . 11 Borrower's Own Performance ... . . . . . . . ... . .. . . 11 Lessons Learned . . . . . . . . . . . . . . . .. . . 12 PART III - STATISTICAL INFORMATION Table 1: Related IDA Credits .. ....... . . . . . . . . . 13 Table 2: Project Timetable. . . 14 Table 3: Cumulative Estimated and Actual Disbursement . 15 Table 4: Physical Achievements . . . ..... ... . .... . 16 Table 5: Project Costs and Financing . . . . . . . . . . . . . 17 Table 6: Extension and Training Activities . . . . . . . . 19 Table 7s Studies . . .. . . . . . . . . . . . . . . . 20 Table 8t Cropping Patterns in the Stage I Areas . . . . . . . 21 Table 9: Incremental Crop Yields in Stage I Area ... . . . . 21 Table 10: Project Results . . . . . . . . . . . . 22 Table ll Cost Recovery Performance . . . . . . . . . . . . . . 24 Table 12: Mission Data .... ....25 Table 13: Compliance with Credit Covenants . . . . . . . . . . 26 Table 14s Staff Input . . . . . .. . . . . . . . . . . 27 MAP: IBRD 16432R This document has a restricted distribution and may be used by recipients only in th. performance. of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT COMPLETION REPORT NEPAL BHAIRAWA LUMBINI GRO'JNDWATER II PROJECT (Cr. 1316-NEP) PREFACE This is a project completion report (PCR) for the Bhairawa Lumbini Groundwater Project, Stage Ii, for which a Credit of SDR 15.1 million (US$16.0 million equivalent) was extended to His Majesty's Government of Nepal (HMGN) in March 1983. The Credit was closed on October 31, 1990 after two extensions of the closing date. The Credit was fully disbursed by March 13, 1991. Several implementation constraints encountered under this project are being addressed in the follow-on project, Bhairawa Lumbini Groundwater Irrigation III Project (Credit 2144-NEP). Information sources used for the preparation of this PCR include: the Staff Appraisal Report (Report No. 4038-NEP), the Development Credit Agreement, supervision reports, quarterly prog.ess reports as submitted by the Borrower, correspondence between IDA and the Borrower and internal memoranda. Parts I and III of this PCR were sent to the Borrower for review and comments. IDA received the Borrower's comments in late-1990 and incorporated them in the PCR. The Borrower contributed Part II of the report. No specific field trip was made to collect information for the PCR. The PCR was prepared by staff of the Agricultural Division, Asia Technical Department.  - iil - PROJECT COMPLETION REPORT NEPAL BHAIRAWA LUMBINI GROUNDWATER II PROJECT (Cr. 1316-NEP) EVALUATION SUMMARY i. Objectives. The Bhairawa I.umbini Groundwater Project (Stage II) was to: (i) ensure that the existing tubewell systems developed under Stage I (Bhairawa Lumbini Groundwater Project - Cr. 654-NEP) would be properly operated and maintained in accordance with sound engineering standards; (ii) introduce improved tubewell irrigation systems on a pilot basis in the Stage II area; (iii) promote the participation of farmers in the project; 'iv) ensure the provision of adequate inp.ts and extension services to farmers; and (v) strengthen the instit:'tions responsible for the planning, design, construction, operation and maintenanc' (O&M) of tubewell irrigation systems. ii. Implementation. The project made k good start and proceeded smoothly without major issue in the early stage ot :- lementation. The project accomplihhed most of the physical construct.on works specified in the Staff Appraisal Report (SAR). All 64 tubewell irrigation systems developed under Stage I are operating satisfactorily and supplying irrigation water reliably. The operation of 16 tubewell irrigation systems developed with new technology has been delayed due to failure by the contractot to install electrical systems to the wells. However, it has been proved that the two new tubewell systems tested for their operation with artisan flow were highly successful. Farmer participation in the project was remarkable following the success of reliable irrigation water supply under the project. It was evident that farmers constructed field channels and drains by themselves, and supervised the local contractor during construction of the main delivery systems. A continuous devaluation of the Nepalese Rupees (NRs) against the US dollar (from NRa 13.2 at appraisal to NRs 20.0 by mid-1986) resulted in a considerable balance of unutilized funds. The project was revised to add the construction of 22 new deep tubewell (DTW) systems using the balance of funds in the Credit. However, delays were caused by: (a) HMGN's inefficient management of the project's Special Account (SA), imposing internal restrictions on availability of funds; (b) a trade and transit impasse with India, restricting crucial supplies (fuels and spare parts) needed for construction; and (c) insufficient annual budget allocation by HMGN, restricting timely procurement of goods and services. To allow for completion of the construction works, the Credit closing date was extended twice for a total of two years to October 31, 1990. The works carried out were of high standard. Of the 22 DTWs added, 17 have been drilled and tested. The remaining works will be carried out under the Stage III project (Cr. 2144-NEP).  - iv - 4ii. Results. No new DTW systems under Stage II were fully operational at the Credit closing due to delay in installing electrical systems. However, the power was expected to be connected to all tubewells by the end of February 1991 (see para. 8). There are strong indications that the Stage II area will achieve higher benefits than the Stage I area because new DTW systems: (a) are designed and constructed for timeliness and reliability of irrigation water supply with new technology; and (b) have simpler O&M than Stage I irrigation systems. In the Stage I project area, average cropping intensities increased by 662, and yields of paddy and wheat increased by 111Z and 145?, respectively, between 1982 (at the time of appraisal) and 1990. Yields of other cereal and oil crops all exceeded appraisal projections. With a reliable water supply, the project farmers started growing high-val: off season vegetables and potatoes. Programs designed to train farmers