Thailand - Me Klong Irrigation Project

K~ - 39 'l ~E URN T~ RESTRlICTED RF-P%",d>RTS DESK Uoport No. TO=446a ONE WEEW This report was prepared for use within the Bank and its afflhiatod organizations. They do not accept responsibility for its accuracy or completeness. The report moy not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ME KLONG IRRIGATION PROJECT THAILAND November 16, 1964 Department of Technical Operations  CURRENCY EQUIVALENTS 20. 84 bahts (1[) = I dolz.r (USI,TS 320. 84 million US $ 1 million AREA EQUIVALENTS 1 Hectare (ha) = 2. 47 acres 1 Hectare = 6. 25 rai  T H A I L A N D IE J"LOflG IRRIGATION PROJECT TABLE OF CU1TTENITS PAGE NO. SUMMARY i-ii I IETRODUCTION 1 II BACKGROUID 1 III THE PROJECT AREA 2 Location 2 Area 2 Climate 3 Topography and Surface Drainage 3 Soils 3 Present System of Cultivation 4 Land Tenure 5 Marketing 5 Transportation 5 Agricultural Production 5 IV t'JATER SUPPLY AND REQUIRE-7iENTS 6 V THE PROJECT 7 General 7 Proposed Works 7 Status of Engineering 9 Construction Equipment 10 Construction Cost Estimates 10 Operation and Piaintenance Cost Estimates 11 Financing 11 VI ORGrANIZATION Nd'D ,1ANAGEJENT 12 Construction 12 Land Classification 12 Operation and M1aintenance 12 Technical Assistance 13 Uater Charges 14 VII BENEFITS AND JUSTIFICATION 14 VIII CONCLUSION7S A4D RECOMvENDATIONS 15 ANNEXES: 1. Crop Yields, Gross and Net Returns Present and Future 2. Water Supply and iRequirements 3. Construction Schedule 4. Estimate of Construction Equipment Required 5. Cost Estimate 6. Rice Taxes and Export Price of Rice Map 1. Mie Klong Irrigation Project Stage I  T H A I L A N D Mle Klong Irrigation Project Summary i. The Government of Thailand has requested a Bank loan to as:sist in financing the development of an irrigation project on the I'e Klong River in Western Thailand. The poroject proposed for Bank financing is S Stage I comprising about 175,000 ha out of the proposed ultimate development of up to 390,000 ha. ii. The project would supply a regulated water supply for rice production during the rainy season and for a limited area of multiple crop- ping of vegetables, fruits, sugar cane and oil seeds during the dry season. Other project benefits would involve partial flood control, improved surface drainage and navigation. With the regulated water supply, additional surface drainage and improved cultural techniques, yields would be substantially increased. iii. The estimated expenditure necessary to complete the project (Stage I), including costs of construction, pLurchase of equipment and consulting services, would be X 1207.0 million (us$ 57.9 million) of which US$ 22.0 million would be in foreign exchange. The amount of the proposed Bank loan would be US$ 22 million or about 38 percent of the total estimated cost. The Bank loan would be used for purchase of equipment, imported materials and consulting services. iv. Construction and operation of the project would be the respon- sibility o, the Royal Irrigation Department (RID) of the iNinistry of National Development. Consultants acceptable to the Bank would be employed by the Thailand Government to assist and to advise on design and construc- tion procedures. The RID would be responsible for the operation and maintenance of the project. There is currently underway a review of all the RID's operation and maintenance activities under the terms of the Bank's twfo recent loans for the Petchburi and Third Chao Phya Projects. V. A semi-detailed land classification is reouired for all lands in Stage I as well as lands in the balance of the proposed development. To accomplish this task in sufficient time to lhave the necessary data available, RID would employ land classification consultants or other quali- fied experts satisfactory to the Bank to expedite the completion of the land classification of the Me Klong Project. Land Classification and Drainage Units would be maintained in the RID for supervision and admin- istration of all such work on RID projects. A foreign technician satis- factory to the Bank has recently been employed by the RID to advise on all phases of the land classification and drainage program on the RID projects and to assist in training Thai personnel.  - ii - vi, Technical services to farmers would be reorganized and intensi- fied. The iviinistry of Agriculture would place a minimum of 20 extension off-cers on the project not later than one year before water becomes available to instruct farmers in irrigation practices and new cultural methods and to establish demonstration areas. Marketing and transportation facilities are adequate for the additional production expected to result from Stage I of the project. vii. A measure of the economic benefits of the project is an increase in the annual net value of production of % 135.3 million. Rice premium and export taxes on all rice produced would amount to about % 90.0 million, thus the annual incremental net value would be about X 225 million. At this level the average annual net return on Stage I investments would be about 15 percent. If total costs of construction were charged against Stage I the average annual net return would still be above 13 percent. viii. The project is sound and is suitable for a Bank loan of US$ 22 million. The Borrower would be the Kingdom of Thailand and an appropriate term would be 20 years, -ncluding a grace period of six years.  T H A I L A N D I,TE KLOiNG ThRIGATIO:I PROJICT I. I;TRODUCTION 1. *The Government of Thailand has submitted a request for a Bank loan to assist in financing the development of an irrigation project on the Me laong River in w'estern Thailand for the irrigation of up to 390,000 ha. 2. Ai appraisal mission visited Thailand in January and February, 1964 for the purpose of selecting and appraising for possible iinancing the first stage in the development of the proposed project. This report is based on material and project reports prepared and supplied by the Iloyal Irrigation Department (RID) of Thailand and on the findings of tne mission. II. BACKGROUND 3. The He lcIong IRiver is formed by the junction of its two main tributaries the Kwae iNoi and the Kwae Yai near tle town of Kanchanaburi. These tributaries rise in the mountains along the Burma border ana flow in a southeasterly direction through narrow valleys for a distance of about 315 and 380 kiloreters respectively. A nunmer of damn sites for project waterstorage have been investigated on both rivers and construc- tion of storage reservoirs are contemaplated for future developm.ent of the project. 4. The potentials of the ri'e Kiong River were recognized as early as 1905 when a streain gage w;as installed near Ban Pong, and records have been maintained continuously since that time. A number of consulting engineers and consulting firms have, from t.ime to time, investigated the storage and hydroelectric possibilities of the two main tributaries. Various sites have been selected ordy later to be abandoned because of cavernous limestone conditions. However, there are other storage sites that appear favorable and investigations on these are going forward. 5. Present plans for the development of the 1-iHe Uaong Rtiver basin have been formulated by the Royal irrigation Department and published in a report entitled, "Feasibility Report on the Greater 1:e Klong Kulti- Purpose Project", dated September 1962. This report proposes that the development of the Me laong River be undertaken in three stages: (a) the construction of a diversion dam and navigation lock cn the Me Klong River at Tha Muang together with main canals and distribution systems on both sides of the river to furnish irrigation water, mainly  -2- during the monsoon season, to about 390,OCO ha; (b) at the end of the fourth year of construction oni Stage I, work would be started on Stage II, the construction of a reservoir on the Kwae Noi. The reservoir would serve for flood control and as storage for dry season cropping and possibly in the future for some hydro-polwer development; Cc) the construction of a reservoir on the Kwae Yai for additional flood control, dry season cropping and future power developmenit. 6. After studying the feasibility report and reviewing additional data available in Thailand and making a field inspection of the project the mission concluded that a staged development (see map) slightly revised from that pronosed by the RID appeared rnore desirable for the followirng reasons: (a) although the project appears technically sound the lack of basic data, particuul-arly land classification and drainage data, dictates that construction of canals and distribution systems be aporoached more slowly than proposed by RID; in particular, Stage I should be limited to develo-pment of irrigation facilities for 175,000 ha; (b) because of the lack of land classification and engi,neerirg data, it is premature to decide future stages at this time; and (c) the length of the construction period of the f4rnt st< :e wuld be l`ve years as Con,ar-o uith stenIe.rs Ivit L: ,ol rO.;eaed. This is a chang_ ;"lich -..ould be desirable from a financial standpoint. III. THE PrOii0JECT AeREA Location 7. The lile KlonIg River Plai:i comprises the southwestern part of the great Central .ilain of Thailand. The i4e Klong portion of the plain is arn extensive area reaclhing from Kanchanaburi, on the west where the river emerges from the hills, south to the Gulf and also northeast from K'anchana- buri to U-Thong thence south along the Nakorr Chl.aisri River to the Gulf of Thailanld, covering about 435,000 hectares , of which up to 390,000 ha may be irrigable depending upon soil conditions and the ciesign of the proposed irrigation system (see map). Area 8. The total area now cultivated o01 the plain under present con- ditions' is albout 282,000 lha. Althouglh reliable inforivtion about present cropping piatterns ant' ;.-ields of vario;s crops, is noli availabie it h;bLs been estimated bVr RID that of the 2f2,2 O0 ha no-: .under cultivation, rlore than 70 percent is under rice production with the balance devoted to other crops,  - 3 - The land now being farmed depenids on rainfall and annual inunuation fromrr the river during the rainy season. Cnly about 61,000 ha have any form of irrigation system, Climate 9. The iie Klong Plain as well as the whole of Thailand has a tropical clinate controlled by two distinct air masses, one moving in from the north, the other from the south. The air mass from the rnorth starts in October or November and continues until hpril, is cool and brings little or no moisture. The southern monsoon begins in iHay and lasts until October. This air mass is warm and carries large quantities of moisture. 10. Rainfall within the project area is ouite variable, averaging for various parts of the area from 900 to over 1200 mm. per year and from 3050 to 50% variation from year to year. Short but damnaging droughts often occur in June and July. Very little rainfall occurs during the months of December, January and February. 11. Annual fluctuations of temperature in the project area range from 37.50 C (99.50 F) in April to 170 C (62.60 F) in December and January. The lo-westi daily temperature recorded is 5.50 C (41.5