Document of The World Bank NEPAL IMPLEMENTATION VOLUME (ANNEXURE TO PROJECT APPRAISAL DOCUMENT) Rural Development Sector Unit South Asia Region NEPAL IRRIGATION SECTOR PROJECT October 20, 1997 Report No. 17104-NEP M&E O&M CURRENCY EOlllVALENTS US$1 Nepalese Rupees (Nrs) 56.0 (at 1996-97) BORROWER'S FISCAL YEAR July 16-July 15 WEIGHTS AND MEASURES The metric system is used throughout the report ABBREVIATIONS AND ACRONYMS Vice-President: Country Director: Sector Managers: Task Team Leader: Asian Development Bank Agricultural Development Bank of Nepal Agricultural Research and Extension Project Country Assistance Strategy Community Based Organization District Appraisal Committee District Development Committee Director General Department of Hydrology and Meteorology District Irrigation Office Department of Agriculture Department of Irrigation Environmental Impact Assessment Economic Rate of Return Farmer-Managed Irrigation Scheme His Majesty's Government of Nepal High-Yielding Variety Institutional Development Support Irrigation Line of Credit Irrigation Policy Mobile Irrigation _Team Monitoring and Evaluation Ministry of Agriculture Ministry ofWater Resources Non-Governmental Organization Nepal Irrigation Sector Project National Planning Commission National Steering Committee National Water Development Council National Water Planning Unit Operation and Maintenance Project Accounts Unit Project Central Coordination Committee Project Coordination Office Participatory Environmental Protection in Hill Irrigation Scheme Project Implementation Committee Project Implementation Unit Participatory Joint Management Regional Appraisal and Approval Committee Regional Irrigation Directorate System Improvement and Farmer Turnover Sunsari Morang Irrigation Project Tertiary Irrigation Unit Terms of Reference Village Development Committee Water and Energy Commission Secretariat Water Users' Association Water Users' Groups Mieko Nishmizu Hans M. Rothenbuhler Michael Baxter and Ridwan Ali Ohn Myint NEPAL IRRIGATION SECTOR PROJECT IMPLEMENTATION VOLUME PART 1 - BORROWER'S PROJECT IMPLEMENTATION PLAN NEPAL IRRIGATION SECTOR PROJECT BORROWER'S PROJECT IMPLEMENTATION PLAN (PIP) VOLUME 1 - MAIN TEXT TABLE OF CONTENTS Acronyms Summary of Project Scope and Objectives Detailed Project Description 2.1 Water Resources Strategy Formulation 2.2 Irrigation Sector Infrastructure Improvement & Dev. Component 2.2.1 Rehabilitation and Development of FMISs 2.2.2 System Improvement and Turnover to Farmers of Public Irrigation Systems 2.2.3 Supporting Infrastructure 2.3 Institutional Strengthening Component 2.3.1 Department of Irrigation 2.3.2 Private Sector Strengthening 2.3.3 Department of Hydrology and Meteorology 2.3.4 Department of Agriculture Key Assumptions Economic and Financial Analysis 4.1 Base Costs 4.1.1 Water Resources Strategy Formulation 4.1.2 Irrigation Sector Infrastructure Improvement & Development 4.1.3 Institutional Strengthening 4.2 Project Benefits 4.3 Economic Analysis based on Model Sub-Projects 4.3.1 • Development Period and Economic Life Assumptions 4.3.2 Financial and Economic Prices 4.3.3 Economic Analysis 4.3.4 Sensitivity Analysis 4.4 Financial Analysis 4.4.1 Farmer's Cost Sharing Project Risks 5.1 Main Risks 5.2 Specific Risks Detailed Financing Plan 6.1 NISP Project Financing 6.2 Retroactive Financing PAGE NO.
Organizations Responsible for the Project Arrangement Between the Borrower and the Implementing Agencies Overall Project Management and Coordination Arrangement Responsibilities of Implementing Agencies 4.1 Water Resources Strategy Formulation Component 4.2 Irrigation Infrastructure and Supporting Infrastructure Development Component 4.3 Institutional Strengthening 4.3.1 Department of Irrigation 4.3.2 Private Sector Strengthening 4.3.3 Department of Hydrology and Meteorology 4.3.4 Department of Agriculture Bank Role During Project Implementation Administrative Arrangements 6.1 Water Resources Strategy Formulation 6.2 Irrigation Sector Infrastructure Improvement and Development 6.2.1 Sunsari Morang-Ill Project 6.3 Institutional Strengthening C. IMPLEMENTATION PLAN 1. 2. Time-Bound Implementation Plans and Disbursement Schedules 1.1 Water Resources Strategy Formulation 1.2 Irrigation Sector Infrastructure Improvement and Development 1.3 Sunsari Morang-Ill Project 1.4 Institutional Strengthening 1.4.1 Department of Irrigation Technical Assistance Training 1.4.2 1.4.3 1.4.4 Ground Water Monitoring On-Farm Water Management MIS Support Private Sector Strengthening Department of Hydrology and Meteorology Department of Agriculture Procurement Actions 2.1 Civil works; FMIS Rehabilitation and Development 2.2 Supporting Infrastructure 2.3 Civil Works: Sunsari Morang-Ill Project 2.4 Civil Works Hydrology 2.5 Equipment Vehicles and Materials 2.6 Consultancy Services 2.7 Training ii
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2.8 Contract Review 3. Specific Actions to Achieve Project Impact Objectives 3.1 Environmental Plans 3.2 Social Action Plans. 4. ProjectAccounting and Financial Management 4.1 Accounts and Audits D. MONITORING AND EVALUATION Water Resources Strategy Formulation 1. 2. Irrigation Sector Infrastructure Improvement and Development 2.1 Rehabilitation and Development of FMISs 2.2 Supporting Infrastructure 2.3 Sunsari Morang-Ill Project 3. 4. Department of Hydrology and Meteorology Department of Agriculture TABLES 1 NISP Base Cost Estimate Summary 2 Annual Fund Requirements (Base Cost) Summary FIGURES/MAPS 1 NISP Project Area Map in Nepal 2 NISP Project Area in Western Regions 3 SMIP-111 Project Area 4 NISP Implementation Organogram iii
VOLUME 2 -ATTACHMENTS & ANNEXES ATTACHMENTS 1 Water Resources Strategy Formulation Study Annex A Consolidated Phase-I Study Report Annex B TOR of Phase-II Study 2 List of Carryover Sub-Projects from ILC to NISP 3 Cost Estimate of 12 Model Sub-Projects and Cost Estimate of 9 Appraised Sub-Projects 4 NISP Implementation Organization Charts/Organograms for NISP, DOI, SMIP-111, DHM and DOA 5 Specific TOR (Roles and Responsibilities) of Key Implementing Officials under PIU, IMD (HRDTB, RTDB, SMB) 6 TOR of TA Consultancy Service to DOI for NISP (Main Components) Implementation Annex A TOR for District/Community Based NGOs Annex B Guidelines for Partcipatory Social Assessment Study •Annex C TOR for Irrigation Subsidy Study Annex D TOR for Irrigation Sector O&M and Water Charge Recovery Study 7 TOR of Consultancy Service for S.MIP-111 Implementation 8 Detailed TOR of Consultancy Service to OHM Institutional Strengthening to Implement Hydrological Study and Basin Planning 9 Overall NISP Implementation Schedules 10 Base-cost Disbursement Schedules 11 Concise Version of Procedural Guidelines (PG), together with Sub-Project Cycle Steps and Flowchart 12 SMIP-III Project, Land Aquisition Plan & Resettlement Action Plan 13 Procurement Action Plan for SMIP-111 and for DHM Institutional Strengthening Annex A SMIP-111 Project Annex B DHM 14 Procurement Action Plan - Consultancy Services Annex A Consultancy Services to DOI Annex B Consultancy Services to SMIP-11I Project Annex C Consultancy Services to DHM 15 Financial Management Plan 16 Indicators for M&E iv NEPAL IRRIGATION SECTOR PROJECT BORROWER'S PROJECT IMPLEMENTATION PLAN A. THE PROJECT 1. SUMMARY OF PROJECT SCOPE AND OBJECTIVES Water is one of the few natural resources within Nepal that provide scope for development. At present there is a lack of policies and coordination between stakeholders on its effective use. Irrigation, .being one.such use of water, provides the potential for increasing production within the agricultural sector. The latest 20 year Agricultural Perspective Plan (APP), agreed and approved by HMGN, has as its principle strategy given first priority to accelerating the agricultural growth through concentrated investment in irrigation. In the hills and mountains surface irrigation is emphasized to utilize all the potentialities of streams and rivers to double the year round irrigation whereas new ground water schemes in the terai are considered vital for the first half of the plan period. As per the APP one of the management goals of the irrigation efforts is to expand farmer ownership and operation. According to the plan, nearly all the schemes presently under agency management will become farmer managed by the end of the _period. Since 1951, the Department of Irrigation (DOI) has been the sole agency of the Kingdom of Nepal mandated to develop irrigation systems in public sector. However since last decade only efforts had been made to involve the beneficiary farmers in the O&M of the agency operated and· managed systems. Also some efforts were made in developing schemes under farmers management on participatory principles. The Government's new Irrigation Policy 1992 (revised 1997), through a demand driven approach, sets out to improve irrigation development by (I) expanding the role of the private sector, (ii) carrying out institutional reforms, (iii) emphasizing the need for improvement of agricultural support services in •irrigated areas, (iv) decentalizing Department of Irrigation's (DOI) operations and responsibilities, (v) developing an effective monitoring and evaluation system, and (vi) defining and strengthening the roles and responsibilities of Water Users Associations (WUA) in irrigation Sub-Projects to establish sustainable agricultural practices. The overall objectives of the Nepal Irrigation Sector Project (NISP) are therefore to improve the productivity and sustainability of Nepal's water resouces development and to increase the . agricultural _ production and income of the farming community. These objectives will contribute . towards the Government goals of raising socio-economic status of small farmers, reducing poverty, and generating employment opportunities in the rural areas. The project area covers the three western regions, consisting of forty districts, and the Sunsai Morang Irrigation Project-in the Eastern Region. Emphasis will be on the rehabilitation of Farmer Managed Irrigation Systems (FMIS) as well as the system improvement and turnover of selected public irrigation systems to WUAs including the major joint management system at Sunsari Morang. The NISP development objectives can be summarized as : assisting the Government of Nepal in the on-going task of developing a comprehensive Water Resources_ Strategy including the formulation of a national water policy for promoting efficient water planning and sustainable use of the country's water resources
within the framework of the above, improving and expanding viable private and public irrigation schemes on about 59,600 ha of land. This will take place through beneficiary participation in planning, design, construction, and operation and maintenance of schemes for improving water application efficiency, equity, and systems' sustainability leading to increase agricultural productivity strengthening the capacity of public and private sector institutions in planning and implementing the sustainable water resources strategy described above 2. DETAILED PROJECT COMPONENTS DESCRIPTION The project will initially support the formulation and implementation of a Nepal Water Resources Strategy. Based on an agreed national program to improve the productivity and sustainability of the country's water resources, it will finance a first time slice of a long-term sector investment. In particular, it will support the irrigation sector including implementation of a large-scale on-going program started under the !LCPilot Project. It will also support the HMGN's new development focus on strengthening the country's institutional and technical capability in water planning and management, and orienting public agencies towards relinquishing gradually part of their O&M responsibilities to user organizations in irrigated agriculture. The proposed project to be implemented over a five year period will comprise the following components: 2.1 Comprehensive Water Resources Strategy Formulation and Integrated Water Policy Development The balanced development of Nepal's water resources requires a multidisciplinary, multisectoral integrated approach. And, because the country's water resources are shared by several groups within each river basin, implication of each action affecting water quantity and quality must be taken into.account. In the past, the perceived water development needs of various sectors of the economy have been addressed separately by different governmental agencies. Realizing the need for a holistic approach to the development of its water resources, the HMGN has recently undertaken to formulate an overall strategy. The effort is being led by a National Steering Committee representing all the relevant ministries. The task is being conducted in two stages: Phase I is to consider the national goals and the principles guiding policy; to assess the country's water resources and potentialities; to define the opportunities, and constraints affecting their development; and to identify the major issues requiring attention and action. Phase I is already finalized. Phase II is to address the development issues identified under Phase I, prioritize the practical options and recommend a comprehensive strategy for implementing the optimal development of Nepal's water resources. The Phase II strategy formulation and provision of technical asistance will be funded by NISP. The strategy will review all existing policies, acts, and regulations on hydropower, irrigation, urban and rural water supply, industrial waste water etc. to ensure their compatibility and consistency with the proposed strategy. It will also provide guidance to HMGN on development assistance requirements consistent with the strategy. Phase II will include inter alia: i) the formulation of a Consolidated Water Policy, ii) the preparation of a National Water Resources Development Plan, and (iii) a Water Related Environmental Management Plan for the short, medium, and long terms.
Complimentary to the strategy formulation studies will also be undertaken into O & M cost recovery and subsidy capacity of the beneficiaries. This will include: studies into the optimum level of O & M requirements for different public irrigation sytems prior to and after handing over parts of the system to the beneficiaries, the funding requirementto achieve this optimum level and the appropriate level of water charges to be collected and its effective implementation a subsidy study review to assess HMGN's finanacial status and the capacity of the beneficiaries to pay, in relation to an agreed plan to consider reducing the subsidy in irrigation sector over time to 50% level A consolidated report on Phase-I study is given in Attachment 1, Annex A whereas the TOR for Phase-II study is given in Annex B. Under the component institutional support will be provided to NPC & MOWR in establishing of a National Water Planning Unit (NWPU) and in procuring support office equipment, technology, transport and other facilities such as the development of computerized MIS and GIS systems for the unit. 2.2 Irrigation Sector Infrastructure Improvement and Development Component To date 299 small and medium surface irrigation schemes covering about 33,844 ha and 217 medium and deep tube wells in 18 clusters covering about 4,210 ha have been completed successfully under the ILC Pilot Project (under MK-II & BL-Ill Credits). This 299 Sub-Projects includes full turnover of 25 Sub-Projects (3,119 ha) to legalized WUAs. Based on the successful pilot experience, the NISP will continue financing viable private and public irrigation schemes as a first stand alone project under the sector investment. Following the Irrigation Policy, schemes will be considered eligible for funding under NISP when written demands and financial commitments for investment (cost sharing) are made by beneficiary farmers. Viability will however be assessed by specific technical, economic, social, and environmental merits and criteria.· All rehabilitation works to be fin·anced are those beyond the beneficiary farmers' technical and financial capacity to implement on their own. A legal Water Users Association (WUA) will be formed at each FMIS to implement the works. The WUA will be involved in design, construction and takeover operation and maintenance upon completion of the irrigation schemes including supporting infrastructures if any. This component will consist of the following types of schemes. 2.2.1 Rehabilitation, and Development of Farmer Managed Irrigation Schemes (FMISs) This component will cover three Western regions of Nepal and will comprise of: 31,500 ha of surface water systems, estimated as 11,500 ha in the hills and 20,000 ha in ~he Terai, involving both major and minor rehabilitation 500 ha of both shallow and deep groundwater tubewell rehabilitation 7,500 ha of new shallow and deep groundwater tubewell construction Out of the above areas, some 21,619 ha of surface water and 851 ha of groundwater systems will be carried over to NISP for completion from the ILC programme. Details of the carry over Sub- Projects are given in Attachment 2.
Currently in MWR, an Irrigation Development Project, under a grant assistance of EU is going to be launched in 4 districts (Kalikot, Dailekh, Surkhet and Banke) to cover about 1831 ha irrigation area. Because of the very limited scope of this project in these districts, under NISP viable Sub-Projects may also be selected for implementation in a manner not to overlap with the EU programme while assuring that both the programmes operate under the same principles. It is the understanding of EU that these programmes can be carried out in a spirit of cooperation as DOI will be the executing agency of both the programmes for the benifit and social justice of rural population. Anyway this aspect of including these 4 districts under NISP will be subject to concurrence of IDA after the NISP is materialized. In particular this component will finance: (i) rehabilitation or modernization of temporary headworks and intakes structures, main and secondary canals, and conveyance systems of viable FMIS fed by surface water. The headworks and related structures are often built by farmers in such a rudimentary manner that these structures are vulnerable to the destructive torrents experienced in rivers of Nepal. • , (ii) rehabilitation· and development of new clustered tube-well schemes fed by ground water (shallow/deep tubewells). • (iii) related activities such as feasibility and investigation studies of FMISs. (iv) provision of vehicles and transport equipments such as fourwheel drive, motorcycles, bicycles and horses for RIDs, DIOs and Central DOI for the implementation of the main and supporting irrigation infrastructure. In all 39 four wheel drive vehicles, 86 motorcycle, 80 bicycle and 20 horses are anticipated to be procured and maintained under the project for the implementation of irrigation infrastructure and supporting infrastructure. (v) incremental staff costs for implementing NISP and associated O & M costs. 2.2.2 System improvement and turnover to farmers of public irrigation systems This component will comprise of: 5,000 ha. of fully or partially turned over small and medium sized public irrigation systems within the three Western Regions of Nepal and rehabilitation and turnover (PJM) of the third phase of 15,100 ha under the Sunsari-Morang Irrigation System. The Irrigation Policy mandates that, after reaching agreement with beneficiatires, larger public schemes (over 2000 ha in the Terai and over 500 ha in the Hills) will be jointly managed by WUAs and DOI (Participatory Joint Management- PJM) and smaller public irrigations schemes to be totally turned-over (TO) to the beneficiaries. Rehabilitating and improving those public irrigation schemes with technical deficiencies, and turnover of full or part of the schemes to the beneficiaries to improve the system management, relieve public resources on O&M liability and induce a sense of ownership. The beneficiaries will participate in the design and construction oftertary canal units within PJM schemes, which in most cases are missing in the original systems. Details of the three components are as follows: (i) Totally turnover schemes will comprise of: in hills surface schemes 500 ha in terai surface schemes 1500 ha Groundwater DTW - 500 ha (ii) The partial turnover of sections of a public irrigation system to develop a Participatory Joint Management (PJM) system will cover Surface Irrigation Schemes of some 2500 ha in both hills & the terai.
According to the HMGN Irrigation Policy (1997) all the larger public irrigation schemes have to be turned into joint management with farmer users group. Under ILC pilot project PJM was started in a limited scale. Presently the DOI is implementing PJM on an extensive scale called Irrigation Management Transfer Project (IMTP) under assistance from AsDB. But this project will include only some of the schemes. So under NISP a provision is made to flourish and implement PJM in schemes or part of major schemes. (iii) Sunsari-Morang Irrigation Ill Project The Sunsari Morang Irrigation Project (SMIP) is located in the eastern region of Nepal and diverts water from the river Koshi. IDA provided assistance to HMG/N to carry out rehabilitation and command areas development (CAD) of the system in stage I (9750 ha) and stage II (16,700 ha) works. This component will comprise the rehabilitation and improvement of 15,100 ha of the Sunsari Morang Phase Ill Project as continuation of the IDA-funded Sunsari Morang Irrigation II Project (completed in March 1995). The major constraints for agiricultural development in the SMIP Ill area are (a) pre-dominant rainfed agriculture, (b) lack of proper irrigation and drainage system, (c) uneven water distribution and (d) inactive WUGs. Presently, about half of the SMIP Ill area is under some sort of irrigation as most of the SMIP Ill areas is covered with the present SMIP canal system. However, lack of proper tertiary irrigation network and much siltation in the canal hampers efficient water distribution to the area, causing the remaining half area being under rainfed agriculture. In absence of irrigation water, the farmers cannot utilize the recommended levels of farm inputs and practices under the risky rainfed condition. Overall the cropping intensity in the area are therefore only 138% consisting of 155% for irrigated area and 125% for rainfed area. Such conditions make crop yields low. 73% of total farm households, which belong to marginal farmers holding less than 1.0 ha, are at extremely subsistent level. More over, even in the peak labor demand season for paddy land preparation and transplanting, only about 42% of available labor force is employed in the present farming practices. In order to achieve the objectives of agriculture intensification, the project will involve the rehabilitation and improvement of the third phase Sunsari Morang System compromising of the following scope of works. improvement and rehabilitation of the main canal of the Sunsari Morang Irrigation System beyond the completed Sunsari Morang II area rehabilitation and modernization of secondary canals and related structures, drains and inspection road networks covering the command area of 15,100 ha. development of command area distribution networks by constructing sub- secondary, tertiary and water course canal systems constructions of tertiary and collector drains construction of 5.5km of the Kasi River Eastern flood embankment major repair of Budhi Aquaduct technical and institutional capacity building to staff and beneficiary WUAs in project implementation and O&M of the system
other miscellaneous works and infrastructure necessary for proper O&M of the developed system and equipments consultancy services and studies water management program land acquisition Provision of Economic Rehabilitaion Material for PAF incremental O&M cost and administrative cost 2.2.3 Supporting Infrastructure This component will comprise the construction of: farm roads. for Terai FMISs and groundwater Sub-Projects and trail improvements for hill FMISs where requested and proved viable at the feasibility study stage. An estimate of some 45 Km is made environmental protection works to stabalize hillslopes, canal alignments, improve drainage etc. associated with FMIS and TO Sub-Projects. Initial Environmental Examinations (IEE) will be incorporated into each Sub-Project feasibility report to identify the mitigation measures required, and identify if a more comprehensive environmental impact assessment is required construction of river protection works where FMIS & TO project river intake sites are threatened or command area are under attack through river erosion. rural drinking water supply schemes where requested and proved viable at the feasibility study stage, for in particular hill FMIS and TO Sub-Projects where the participatory principle is applicable. An estimate of some 15,000 people within NISP areas are to be benefitted localized micro-hydropower where the topography and site conditions are appropriate within hill FMIS Sub-Projects, and the participatory principles, demand and viability are proven at the feasibility study stage. An estimate of 300 kw will be newly generated within NISP areas. construction or extension of Regional and District office buildings about 12 nos. provision of workshops associated spares and tools as well as provision for the operation and maintenance of dredgers at Sunsari Morang Project headworks. • 2.3 Institutional Strengthening Component This component will finance institutional strengthening and development to ensure achievement of the objectives of !he project are met. It will finance for consultancy services for the project implementation, training, investigation studies for investments, buildings, equipment and vehicles, and limited incremental O&M and staff support to the following implementing agencies of the project. 2.3.1 Department of Irrigation The Department of Irrigation (DOI) will have primary responsibility for implementing the project's irrigation sector infrastructure and supporting infrastructure development. To support this component the project will finance institutional strengthening of DOI by the provision of: foreign and local consultants to assist in the design and supervision of the NISP main component implementation and to monitor quality control. A total of 60 and 333 manmonths respectively for foreign and local expertise is estimated to be required over the full five year period of the project. Through this main consultancy contract sub-consultancies will be procured for the private sector strengthening, O&M and subsidy studies and on-farm water management components. A seperate team of consultants will be required for the SMIP-11I project.
funds for trainings & workshops for NISP staff at the Central, Regional, District and Sub- Project levels, with the supply of associated equipment, machinery and vehicles to make it effective groundwater inventory and monitoring works in 8 Districts involving investment costs for shallow TW (100 Nos) and deep TW (14 Nos) investigation boreholes, rehabilitation of existing shallow investigation tubewells (50 Nos) and deep investigation tubewells (20 Nos), associated geohydrological survey equipment, training of well observers and recurrent.costs for staffand machinery O & M on-farm water management activities on a pilot basis within completed FMISs (to cover about 6000 ha of the developed area) in selected districts of NISP, to expand crop intensification. Included will be separate foreign and local consultancy services, training of concerned staff, provision of vehicles, general staff support and recurrent staff and operation costs. This subcomponent will use the experiences from ongoing pilot FAO assisted SPIN program. The MIS unit under DOI Central & Regional Offices will be augmented and strengthened so as to make them effectively function. To do this, the working staffs will be provided training in home and abroad so as tQ familiarize them with modern MIS technology. Also some additional equipments such as high speed computers,- digitizers, printers, plotters, photocopy machine, stereoscopes, scanners etc. will be purchased. The software related to MIS such as GIS software, Remote Sensing software, Advance Database Software, Networking facility, E-mail facility etc. will be provided to make the Unit better equipped and capable. 2.3.2 Private Sector Strengthening (WUAs, NGOs & CBOs) Under this subcomponent provision is made to finance training of WUAs, NGOs, and CBOs in such topics as NISP principles and procedures, systems O&M, participatory environmental protection in hill irrigation (PEPHI), irrigated water management, farmer organization establishment, financial managemen( credit accessing, and marketing. Training will be based on a program designed by the project consultants in collaboration with DOl's Human Resources Development Training Branch (HRDTB), DOA's Regional Training Center, ADBN, FAO/CP special program and on-going German Development Service Program for PEPHI.The NGOs/CBOs after being trained will be engaged in the task of WUAs strengthening activities and liasion among different agencies and stake-holders. 2.3.3 Department of Hydrology and Meteorology The Department of Hydrology and Meteorology (OHM) is the country's sole agency for-hydro- meteorological data collection, collation, and management. Currently, OHM is operating with sub- optimal facilities and number of observation sites. The project will finance institutional strengthening in data collection, collation and dissemination functions, support the strengthening of DHM's data collection networks formed under basinwise boundary, and basin-wise resources inventory planning in four river basins and in about 77 sub-basins (within three of the four major country river basins) covered under the project. Foreign and local consultants will be required to assist in carrying out the above studies. A total of 21 and 1,606 manmonths respectively for foreign and local expertise is estimated to be required. •The basic objectives of the subcomponent are to collect, compile, process, analyse, interpret and obtain reliable hydrological and meteorological data for irrigation development in the Western, Mid- Western and Far-Western regions of Nepal. The hydrological and meteorological data thus obtained shall be primarily on river stages, river discharges, river sediment load, precipitation, atmospheric and soil temperatures, sunshine duration, evaporation, wind speed and direction etc. Training of
observers, preparation of mannuals and study tours will be included, together with the development of a customised data base system. 2.3.4 Department of Agriculture The project will provide limited support to the Department of Agriculture's intensified efforts to strengthening of District DOA's capacity for preparation and appraisal of NISP schemes and extend specific agricultural training services to NISP irrigated areas which are not immediately covered by the proposed Agricultural Extension, Research, and Training Project (AERP). This is due to AERP has been already appraised which will cover a wide range of agricultural related activities on a national scale. TheJproject will include the provision of improved planting materials, field trials, demonstrations, training, and purchase of4 WD vehicles (8 Nos), motorcycles (26 Nos), bicycles (10 Nos) and photocopier, computer, fax,and E-mail (one each). (To support this component, the project has made provision for the following activities): support NISP schemes in conduct of Baseline Surveys and PBME studies . farmers (users) training on Water Utilization and Management .JT/JTAs training on Water Management and Utilization cropping intensity demonstrations water users district level workshops and inter-district visits seed production program in irrigated areas JT/JTAs tours to India extension officers of DADOs tour to SMRC countries to ob$erve intensification of cropping intensities in irrigated areas • strengthening of ASC/ASSCs by equipping with necessary tools and materials provision of storage facilities, etc. 3. KEY ASSUMPTIONS The key assumptions can be summarized as follows: (i) DOI, DOA and OHM are committed to implement the irrigated agriculture development plan in a co-ordinated manner to attain the potential growth of agriculture by promoting efficient irrigation systems and improve agriculture practice. (ii) A working MOU has been signed between DOI and DOA to establish a framework for collaborative activities. The two departments as co-implementor of NISP will work together from the initial stage of Sub-Projects screening until the irrigated agriculture extension activities including M&E is taken over by the DOA. (iii) Arrangements are made to take up only surface irrigation rehabilitation and new Groundwater schemes. All the schemes to be included under NISP will be based upon genuine demand by the organized users group who will be willing to contribute a share in the cost of the construction/improvement and resume responsibility of O&M of the schemes. The following conditions will also have to be insured for taking up the future Sub-Projects: FMIS rehabilitation Sub-Projects will be eligible if they are not performing to their full potential and improvement is beyond the capacity of the users group. there exists potentiality of enhancing agri. production on a sustainable basis. insurance df WUA's commitment is obtained by starting the Govternment part of works only after the WUA have completed atleast 15% of their part of works.
(iv) Arrangements are made to receive a demand for a Sub-Project through DIO/ASC/DADO who will ensure that production & productivity can be increased from the assistance through rehabilitation or modernization. (v) Client will arrange that in the annual budget program only studied and approved Sub- Projects are included based on the NISP principles and criteria of selection. (vi) As the project fully depends on the strength of skilled manpower of DIO/RIDs/DIOs and that of RAD/DADO, redeployment of such staff, who have the capability to implement NISP based on its true principles & processes, may be necessary to take over the responsibilities at the different levels. After redeployment all staff are to be in position for the full term of the NISP programme. (vii) To minimize poor absorption capacity of the client in the past, critical preparatory activities such as logistic supports and procurement of consulting services should be completed within the early quarters of first year of NISP. Similarly, information dissemination to all stakeholders including politicians, organizational setup to implement the project, etc. should also be implemented in the first year of NISP. (viii) Late disbursements and reimbursements have been major problems in the past. To address these issues it is suggested that institutional mechanism is sought including placement of trained, coversant accountants & audit mechanism for the full period of the project. 4. ECONOMIC AND FINANCIAL ANALYSIS OF THE PROJECT The project base costs have been prepared in detail under the three major project component headings. Details are presented in Cost Summary Table-1. A summary of these base cost estimates are: COMPONENT Water Resouces Strategy Infrastructure Development Institutional Strengthening Nrs million 44.0 4,055.837 923.249 TOTAL 5,023.086 Further details of each component are given below. 4.1 Base Costs 4.1.1 Water Resources Strategy Formulation Some Nrs 44 million is to be provided to finance phase II of the water resources strategy component. The fund will be utilized to finance the technical assistance and support facilities and in preparation of a· national water resources policy, establish a central water resources planning unit in the Government and revise sub-sector policies and regulations to ensure their compatibility and consistency with the agreed strategy. 4.1.2 Irrigation Infrastructure Development Base Cost Estimate Costs of Model Sub-Projects For _FMIS, TO and PJM:
The cost estimates for different types of Sub-Projects have been prepared and applied to the potential NISP Sub-Projects on a cost per ha basis. The costs include civil works and other ancillary works for surface Sub-Projects in Terai and Hills under major and minor rehabilitation, groundwater in Terai under STW and D1W, as well as TO and PJM of surface schemes. The costs of irrigation system for the selected model Sub-Projects are identified and estimated for different types of Sub-Projects on the basis of actual requirements. The typical cost estimates of irrigation system are prepared from the costs of model Sub-Projects to enable them to apply to the potential Sub-Projects. The cost estimates of the twelve model Sub-Projects studied at feasibility stage are summarized in Attachment No 3(A). The attachment 3(8) summarises cost of nine Sub- Projects appraised. Project Costs: Based on the model Sub-Project costs, the cost estimates of the various components of the irrigation infrastructure development are derived. The per hectare costs of irrigation system rehabilitation works are applied to alternative Sub-Project areas, for assessing the best combination of types of Sub-Projects. The cost estimates of the project are prepared for a total area of 59,600 ha (including SMIP-11I). These costs include for rehabilitating irrigation systems, rural farm roads, river training, environmental protection, micro-hydropower, drinking water supply facilities. The cost of improvements to Sunsari Morang Ill project is prepared separately. The costs for planning, feasibility study, detailed design and supervision of irrigation system rehabilitation and other project related civil works are estimated at 3% of the total civil work cost. A prqvision is made for recurrent support costs for DOI and DOA during implementation period of 5 years at NRs. 320/ha/year, based on the past expenditures. The incremental O&M costs are taken at NRs. 950 per hectare per year for the surface Sub-Projects, NRs. 2,451/ha/year for S1W and NRs. 1,739/ha/year for D1W, based on the results of the model Sub-Project studies. The project base costs (including SMIP-111), for the irrigation infrastructure development component, are estimated at NRs 5,023.086 million. The cost estimates are based on 1996 constant values with an exchange rate of US$1.00 = NRs. 56.0. 4.1.3 Institutional Strengthening This component comprises the costs for financing the institutional support to DOI, DHM, DOA and associated private sector organizations. Nrs 506.85 million is estimated for DOI to cover the costs are for providing consultancy services, training, vehicles, groundwater monitoring, on farm water management, and support to the MIS. This component also includes an estimate of Nrs 39.6 million to be provided for strengthening Private Sector NGOs and Water User Associations and for the training of beneficiaries in NISP principles and procedures, Sub-Project O & M, farmer organization, financial management, credit •assessing and marketing. Nrs 274.8 million is estimated for DHM to. cover the costs for improving the hydromet stations network and institutional strengthening of the data collection and reporting, through provision of consultancy services, training, vehicles and equipment O&M and increme.ntal staff cost.
Nrs 102.06 million is estimated for DOA for strengthening their capacity to support the NISP programme, through provision of improved planting materials, extension services, provision of vehicles and training of farmers and field staff on Water Utilization and Management, cropping intensity demonstrations, support to DIOs in subproject preparation and project benefit M&E. 4.2 Project Benefits The formulation of a National Water Resources Strategy and the resulting National Water Resources Policy will assist Nepal in laying foundation for sustainable management of water resources through integrated multi-sectoral river-basin/sub-basin planning. This will provide a needed guidance when the country starts to take up potential river basin development works and also to bilateral and multilateral donors in directing the development assistance in a more coordinated fashion consistent with the national long and medium term development objectives. In addition, the country will have a permanent national planning secretariat at the highest National Water Development Council (chaired by the Prime Minister ) to do water resources planning, budgeting and management. The existing water related subsector policies could be improved to have consistency with the comprehensive water policy. The infrastructure development is expected to generate substantial employment opportunities during and after implementation. During construction, the Project will generate substantial employment for skilled and unskilled labor, since labor costs account for 20-25 percent of the construction costs of Sub-Projects. The Project,will also result in an increased requirement for farm labor as a result of increased cropping intensity and change in cropping pattern. However, because the farm labor is currently underemployed, most of this incremental labor required can be met by family labor, and opportunities for hired labor are limited. Only the large farms in the Terai will face labor constraints and will need hired labor generating additional employment. Indirect and nonquantifiable benefits of the Project will include improvements in the management of irrigation as a result of the strengthening of DOI and organized WUAs. In particular, strengthening the capabilities of WUAs can be expected to lead to a better O&M and more equitable distribution of water and broader social justice within FMISs, with potential beneficial impacts on income distribution that cannot be fully taken into account in the farm income analysis. These benefits are more likely to accrue to farmers at the tail ends of the irrigation system, who are otherwise poorly located for the present water distribution pattern and management practices. In the longer term, well-established, viable WUAs may be able to provide additional benefits to farmers within the community by taking advantage of other economic activities (e.g., in the production and marketing of cash crops). Promotion of ground water irrigation in the form of clustered tubewell will resolve the issue of underutilization of individual tubewell due to fragmentation of land holdings. The groundwater exploration study will enhance knowledge on the regional groundwater potential for planning and regulatory measures. Completion of tertiary irrigation networks in major public irrigation systems like SMIP-I11 will improve the irrigation assurance, improve equitable distribution and application efficiency, and increase the irrigated area by at least 30%-40%. Handing over of irrigation systems partly or fully to farmers will improve O&M, system sustainability and save government financial resources by at least 30% on O&M. The NISP, being a demand driven project, the true blending of type of schemes that are to be implemented under the project is hard to know in advance (how many schemes from hill and terai and how many will be FMIs: TO etc.). Based on the feasibility level studies of 12 model schemes of FMIS, Groundwater Systems and TO schemes in the Terai and hill, it is expected that, with proper extension activities, the FMIS component of project will increase paddy production of 51,000 tons,
wheat 35,000 tons, maize 2,800 tons, oil seed 4,800 tons, lentil 8.400 tons, potatoes and vegetables 61, 800 tons respectively. Cropping intensities could be increased from the current situation of about 154% average to over 195% average with the project. In the case of Sunsari Morang Irrigation Ill schemes, it is expected that the copping intensity will increase from 155% to 185% with more assurance in the distribution and application of water. With the project, the total incremental production is estimated as: paddy 30,000 tons, wheat 25,000 tons, oil seeds 350 ton, lentil/pulses 980 tons, vegetables 6,070 tons and Jute 230 tons. Within the NISP project areas the average annual farm income per household ie expected to increase from NRs. 5,684 to NRs. 10,405 for marginal farmers, and from NRs. 92,511 to NRs. 169,347 for large farmers. This shows an increase of farm income by 83% at full development. 4.3 Economic Analysis Based on Model Sub~Projects The NISP principle is based on the selection of FMIS Sub-Projects through demand driven approach under the •agreed criteria and principles of participatory irrigation development. So the true composition and type of schemes that will be included for implementation under the project is unknown in advance. The economic analysis of each selected Sub-Project will be done at the time of feasibility studies. However detailed economic analysis of the 12 model schemes of different types in different ecological belts at the feasibility study stage of the NISP has been carried out which is the basis for taking weighted average for the full project coverage. 4.3.1 Development Period and Economic Life Assumptions It is assumed that the project implementation period lasts five years. The economic activities of the project will be carried out during twenty years with suitable operation and maintenance. Therefore overall evaluation period of twenty-five years consists of the implementation period of five years and economic life of the project of twenty years. Full project benefits will be expected to be built up during five years with 30% of the full benefits in the first year, 50% in the second year, 70% in the third year, 90% in the fourth year and then full production in the fifth year after the implementation period, respectively. Impacts related to operation and maintenance costs will be originated at the completion of the project. 4.3.2 Financial and Economic Prices (i) Agricultural Output Prices: Farm-gate prices for produced commodities are used as the prices marketed in the project area. Generally, prices of agricultural products in the market relatively fluctuates more than other commodities. Agricultural outpur prices also vary with locations, due to difference in transportation costs and lack of marketing information. The prices of farm outputs in Hills are higher than those in the Terai. (ii) Agricultural Input Prices: Farm-gate prices for purchased input items are used as the prices marketed in the project area. Agricultural input prices differ from region to region, because of transportation costs and lack of marketing information. Unsuitability of information and transportation caused uneven distribution of agricultural inputs that are not enough to meet farmers' needs of the regions. The agricultural inputs are distributed through many steps and private merchants
who deal with commodities and manupulate the prices. These aspects usally affect farm household net income, Fertilizers are distributed by district center with controlled prices including Government subsidies, whereas seeds are provided by AIC. The prices of fertilizers and seeds differ region to region. The prices of fertilizer in Hills are hgiher than those in the Terai. Similarly, human wage rates in Hills are lower compared to those in Terai, ranging between NRs. 40 to 45 in Hills and Nrs. 40 to 50 in Terai. It shows very limited job opportunity in on-farm as well as non-farm activities in the hilly region. (iii) Standard Conversion Factor and Discount Rate: For the purpose of adjusting the effects of trade distortion and foreign exchange premium, the local costs for non-traded goods and services including wage have been converted by using a standard conversion factor (SCF) of 0.90 with referring to recent studies on similar projects in Nepal. The opportunity cost of capital (OCC) is taken as 10 percent. The OCC rate will be used to determine the present worth of a future value of the project by this discount rate, as recommended by the World Bank. (iv) Shadow Wage Rate: The shadow wage rate (SWR), which is the shadow price for labor, is estimated at 0.675. Based on the recent study of the Bhairawa Lumbini Groundwater Project and the Sunsari Morang Irrigation Project, a conversion factor of 0.75 for unskilled labor and the SCF of 0.90 are used to derive SWR. The rate thus derived are applied to convert financial wages/prices to economic costs. (v) Economic Commodity Prices: Local costs for non-traded goods and prices for services originated from markets in the project area have been converted by applying a standard conversion factor of 0.90, and for the rural wage, SWR is applied. Border parity prices of the major traded agricultural commodities and inputs have been prepared for the project evaluation. The border parity prices are based on 1995 constant prices, which were projected to the year 2005 in constant 1995 terms by using G-5 MUV index in the World Bank Commodity Markets. The prices were then adjusted with sea freight, local handling, storage, transportation and distribution costs. The border parity prices are given in the feasibility study report. 4.3.3 Economic Analysis Economic analysis is based on the physical output and inputs budgets and economic crop budgets per hectare base. In economic analysis, the capital costs have been adjusted to economic terms by using conversion rates. As narrated above full project benefit is expected to be generated within five years after completion of the project. The results of economic analysis of twelve model schemes are shown below.
Types of Scheme EIRR in(%) Terai Hills Surface Major Rehabilitation 20% 14.5% Surface Minor Rehabilitation .19% 14.4% Groundwater Cluster Shallow Tubewell 18% Groundwater Cluster Deep Tubewell 16% Turnover (TO) 36% 21% PJM 28% Because of different composition & blending of Sub-Projects as per the demands during implementation, the average weighted EIRR for the FMISs will be around 17-18% for the planned size of the project. Therefore, the NISP project is economically viable. 4.3.4 Sensivity Analysis Sensivity analysis has been carried out on the sample Sub-Projects to find the affect of adverse conditions on the viability of Sub-Projects. The analysis indicate that the Sub-Projects are not very sensitive to cost increases. They remain viable under adverse conditions that is when costs increase and benefits are delayed or benefits decrease. The sensivity indicator for 30% cost overrun is 0.69 and for 30% reduction in benefit indicator is 0.92. EIRR with relation to decrease in benefits may be due to lag in agriculture productivity. It is more sensitive to the benefits than that of cost overrun of investment and O&M. The switching values for cost increase and benefit decrease are also calculated. The results are shown below. Sensivity Indicators Changes EIRR (%) Sensivity Switching value Indicators %change Base case (20 years) 16.4 1. Cost overrun of 20% 14.0 0.73 66.5 2. Cost overrun of 30% 13.0 0.69 3. Benefit decrease of 20% 13.5 0.88 41.1 4. Benefit decrease of 30% 11.8 0.92 5. Delay of 1year 16.2 6. Delay of2 years 15.7 4.4 Financial Analysis For the irrigation infrastructure development component a financial evaluation in the form of farm model analysis has been carried out to indicate the potential increases in farm incomes. The results indicate that farm families will realize a big increase in income when the irrigation systems are fully in place. The increase in income is due to a combination of yield increase and an increase·in cropping intensity. The farm model shows that, except for large farms in rehabilitation schemes, all marginal & small farm households in the Hills have farm incomes below the poverty line of NRs. 1,317-4,070 per household. With the Project, their farm income is expected to increase substantially by NRs. 3,297- 10,192. The resultant increase in farm income is expected to raise the per capita income of large and medium farms in new Groundwater schemes above the poverty level. However income of marginal
and small farms will remain below poverty level. These families will have to continue to supplement their income from off-farm sources, but they will be better off than before. Farm incomes in the Terai are higher than in the Hills, largely because of larger farm sizes in the former. All large and medium farms of Terai currently have farm incomes above the poverty line varying from NRs. 21,000-51,000 for new Sub-Projects and NRs. 58,000-138,000 per household for rehab Sub-Proejcts, while all marginal farms have incomes below the poverty line. The farm model analysis indicates that currently about 82 percent of the households are small/marginal and living below the poverty level, in line with the findings of the socio-economic survey. All households will enjoy a substantial increased in income as a result of the Project. The average annual farm income per household will increase from NRs. 5,684 to NRs. 10,405 for marginal farmers, and from NRs. 92,511 to NRs. 169,347 for large farmers. It shows an increase of farm income by 83%. 4.4.1 Farmer's Cost Sharing Under the Irrigation Policy of 1992 (revised 1997) beneficiary farmers are required to contribute a minimum of 5-20% of construction/development cost depending on the classified Sub-Project types and their ecological locations. Farmers contribution based on 12 Model Sub-Projects is shown in the table below. Minimum Share of Farmers (WUAs) Contribution Description Min. share of Contribution As per estimate of model farmers Per ha (average) schemes sharing per h/h Contribution NRs. (%} marginal average large 1. FMIS Rehab: Surface Terai 15 5625 2531 10518 48712 Surface Hills 12 7200 792 3744 11952 Surface High Hirnal 7 2. New Schemes Groundwater. DlW 10 7000 5600 11200 56800 SlW 20 8000 4000 16000 56800 3. Turnover GW & Surface (TO): 5 4.PJM: 4.1 New Construction - Terai: water course(< 1o ha) 100 Tertiary (1 O- 30 ha) 25 - Hills 5 4.2 Rehabilitation - Terai 12 - Hills 10 Based on the estimated average cost of each type of Sub-Project in Hills & Terai for the average land holding of per household, contribution on the part of the farmers works out to Rs. 3744 and Rs. 10518 per ha respectively. The contribution per farms will vary_ from NRs. 792 to 48,712 from marginal farms to large farms. This will constitute 16-60 percent of increased annual farm income and this contribution is to be made only once for the physical construction or rehab. This is not a great burden to the farmers as those farm households that have difficulty in making cash contributions, particularly marginal & small ones, can make their contributions in the form of labour. On the whole the farmers should be able to contribute more than the minimum requirement, since
the contribution can be in kind and most farms have surplus labour at certain period of a year in most localities. The farmers will also contribute towards O&M of the Sub-Project as it is owned by them (communal ownership). The O&M cost mainly requires labour in repairing the headworks and water conveyance structures and cleaning the distribution canals. The farmers are not expected to face any difficulty in making contributions for O&M as this is going to be mainly in form of labour and that also after improvement of their system it will need reduced maintenance labours. The above cost sharing during construction/improvement and afterwards contribution for O&M are reasonable. The WUA will be responsible for mobilizing users share of cost both for development and O&M in case of FMISs and TO systems. PJM Sub-Projects will be managed jointly by the farmers (WUA) and the agency (DOI). User farmers will be paying irrigation service fee as fixed by the Government so as to cover the O&M cost of the Sub-Project. On account of the turned over level of sub-systems to be operated and managed by the farmers (WUA), a part of the service fee so collected (raised) will be returned to the WUAs for the operation & maintenance of the system under their control. As per IP-1992 (revised (1997) these will be as follows: IfWUA has taken over tertiaries level If WUA has taken over block level branch & distributaries IfWUA has taken over upto main canal If WUA have taken full system excluding headworks 5. PROJECT RISKS 5.1 Main Risks 25% 50% 75% 90% Undoubtedly, certain risks (both internal and external) are there in the successful implementation of the Project. Among such risks the critical ones are; There may be differences in priority for the resource allocation; between the NISP principles & procedures and the Government's policy. Since the project is to integrate the functions of three different institutions (DOI, DOA, OHM) each having its own organizational and management pattern, the problem of co-ordination and anticipated co-operation at different stages of project implementation may come up. If the project is made to count on the participation of district & village level political institutions (DDCNDC) in the process of approval of Sub-Projects which may hamper selection of genuine and potential Sub-Projects. The implementing units at the district might encounter a lot of interference & influence in selecting really needy • and potentially productive-Sub-Projects. The benefits of the project have been expected on the assumption that other factors & inputs are availed in the project sites(areas) on time & in required quantity. Although the project's plan, design and implementation has tried to avert this risk by emphasizing the establishment of sustainable WUAs, this at times may not be attained. 5.2 Specific Risks The principle Project risk is the failure to make a genuine and correct selection of the Sub-Projects. In particular, there is a risk that the costs of the selected Sub-Projects may be underestimated, and
their potential benefits may be overestimated. Failure to address this risk, will result in the waste of scarce capital and other resources, which could have been invested in more needy and appropriate Sub-Projects. To address this risk, the Project will provide intensive training for the agro-economists and engineers from DIO/DADO and RID/RAD offices to enhance their capabilities to undertake rigorous screening to assure quality at the entrance and to make sound economic analysis of the proposed Sub-Projects and to improve their awareness of the importance of the assessment of Sub- Project benefits and cost estimates on realistic, assessment of field data. During Project implementation, a number of risks may adversely affect Project outcomes. More significant of these risks are: Some Sub-Projects might be implemented even where farmers are not ready and willing to contribute to and participate sufficiently in the improvement and construction activities or to take full responsibility of O&M. On this account the Project will carry mass orientation of the principles of NISP and conditions of the support before take-off of the implementation. During implementation it will also organize regular meetings between DIO/DADO staff and WUAs, who have entered into written agreements outlining the Sub-Project scope and roles and responsibilities of DIO and WUA to ensure that WUAs and farmers are fully aware of their responsibilities and contributions to be made for the anticipated achievements to be accrued. Top-down decision making by DIOs, without consultation with the farmers (WUA) will lead farmers to become antagonized towards the Sub-Project. In this context, AOs with the help of NGOs/CBOs will encourage and improve communications between DIOs and WUAs to ensure that the farmers have a role in decision making and agree to the Sub-Project components and their responsibility for O&M after physical improvements or construction. Farmers might not make changes in cultivation practices that are assumed to occur with the more secure and equitable supply· of water, with the result that the projected yields under the Project will not be achieved. To minimize this risk, the Project has brought DOA into the planning process from the initial stage of Sub-Project selection. Also the involvement of CBO/NGO will strengthen the linkage between WUA and DOA to ensure that DOA will provide their needs for extension activities. Assistance will thus be made available to the farmers to improve their agricultural practices and to obtain the necessary farm inputs (improved seeds and fertilizers) on a timely basis. • There are also risks of a social nature that could adversely affect Project implementation if not adequately addressed. These risks include the following: Delays in establishing, developing and· strengthening WUAs will lead to delays in implementation. The Project will place strong emphasis on a strengthened and improved role for the AOs, including the involvement of CBOs/NGOs where appropriate. This will speed up and improve the establishment and strengthening of the WUAs. Powerful, large land holders in the headreach areas of Sub-Project might divert water on their sweet will. The development of a democratically elected WUA committee with clearly defined rules and regulations will help in preventing abuse by powerful local persons. The strengthening of the WUA and expansion of its responsibilities under the Project will also be of help in fostering broader social jusice. Individual users with prior rights deriving from existing, Pre-Sub-Project uses of the water source might receive less, under the Project with the excuse of "greater good for the greater number." The Project will give recognition to existing water rights, and detailed discussions with the communities through WUAs will serve to clarify these rights. Any changes will have to be agreed to before Sub-Project implementation for greater social order and justice.
In a highly stratified society, high-caste and locally influential persons might try to influence irrigation officials in the choice of Sub-Projects or such matters as the new alignment of canals. The development, under the Project's clear selection criteria and a selection process will help prevent political & other influences. The development of a strong WUA and frequent dialogue between DIOs/DADOs and WUAs will prevent undue interference by some unwanted persons in the Sub-Projects activities. 6. DETAILED FINANCING PLAN 6.1 NISP Project Financing The Project will be implemented over five years. The total base cost of the Project including SMIP-11I component is provisionally estimated at Nrs 5,023.1 million (including HMG/N duties and taxes). Based on the percentage splits derived in the World Bank Project Concept Document between the various financing components a summary of the financing arrangement of the base-cost is given below: Percentage Percentage (including duties & taxes)(excluding duties & taxes) IDACredit HMGN Beneficiary farmers (co-financing) Total 77.3 80.60 13.1 9.34 9.6 10.06 100 100 The contribution by beneficiary farmers group in the form of cash and labour for irrigation infrastructure development is based on minimum contribution to be shared as per the IP-1992 (revised 1997). Accordingly the farmers will have to bear 5 to 20 percent of the cost of the capital investment depending on the type of Sub-Project and locality. HMGN has proposed in the request to IDA for the project, a TA grant of about US$ 8.6 million for institutional strengthening (consultancy and training) of DOI and consultancy and training for OHM activities. • The credit for the project will be channeled by HMGN through DOI, DOA, OHM and MOWR who are responsible to implement their respective components. HMGN will provide resources and the matching fund to manage the projects' components in accordance with the agreed, implementation plan and disbursement schedules and financial management plan. The project's infrastructure development component will be implemented under agreement with each organized and legalized WUAs. The subsidy part of works by the Government agency (DOI) will start only after the WUA has . completed at least 15% of their part of contribution in advance in a.ccordance to the 1.P. (revised 1997). 6.2 Retroactive Financing Under ILC Pilot Project DOI has been implementing rehabilitation of FMISs and construction of tubewells on the request from farmers. There are 70 surface schemes & 43 groundwater tubewells remaining incompleted as planned & designed at their approval stage. After the closure of ILC on 15th July 1997, these Sub-Projects have to be carried over to NISP to be completed mostly in the first year and also in second and third years of NISP commencement. To complete these schemes •. an amount of Nrs.394.25 million will be required to be financed from NISP proceeds. After the
closure of ILC & before NISP becomes effective, there seems to be a gap of at leas~ six months and during this period to keep the momentum of continuing completion of the carried over Sub-Projects . and to cover Sub-Projects preparation, training of staff, strengthening of WUAs, detailed designs of pipeline Sub-Projects, agricultural extension activities in the completed ILC Sub-Projects and othe preparatory works, retroactive financing will be required from the IDA from 16 July 1997, under new NISP process and guidelines, in an amount as agreed at the appraisal of the project. Furthermore the retroactive financing is essential to keep the services and utilization of DOI/DADO staffs trained under ILC which will facilitate implementation of the Project. B. IMPLEMENTATION.ARRANGEMENTS 1. ORGANIZATIONS RESPONSIBLE FOR THE PROJECT The Project will be implemented primarily by the Department of Irrigation (DOI). Department of Agriculture (DOA) and the Department of Hydrology & Meteorology (OHM) of HMGN whereas Water Resources Strategy Formulation and Integrated Water Resources Policy Development (WRS) component will be formulated under the overall guidance of NPC and the National Steering Committee (NSC). • The Irrigation Sector Infrastructure Improvement and Development component and some of the sub- components under Institutional Strengthening and Development will closely involve the beneficiaries (men & women farmers) organizations for the implementation along with the assistance from CBOs/NGOs. The district level planning unit of political wing of the society, the DDCNDC will also be kept in confidence on the activities undertaken in the districts. The district level offices of DOI & DOA will be made accountable and responsible to project needs and ·implementation. Under DADO the subject matter specialist (SMS) and JT/JTAs of ASCs/ASSCs working at village level will be the key players in irrigated agriculture extension activities·of the project whereas the irrigation engineers, OSs & AOs under D10 will be the main actors of project preparation, design and construction of rehabilitation of Sub-Projects except in case of large subprojects or subproject with complicated structures for which local consultants may be deployed. The administrative and supervisory control will be done by the organizational and managerial set-ups of the implementing agencies through their regional offices (RIDs, RADs). 2. ARRANGEMENT BElWEEN THE BORROWER AND THE IMPLEMENTING AGENCIES HMGN through the Ministry of Finance (MOF) will be the borrower of the Credit Assistance proceeds earmarked for this project. It will direct and facilitate the key implementing agencies - MOWR, MOA, DOI, OHM, DOA, ADBN, NPC to carry out the relevant specific jobs related to the execution of project objectives and scope of works. Responsibilities of Implementing Agencies and other entities along with Participation Arrangements are narrated briefly in the following paragraphs. The Ministry of Water Resources (MOWR or MWR) will have overall responsibility for guiding and directing the implementation of components under DOI and SMIP-111. The component of Hydrological networks under basinwise boundry and subbasin wise resource inventory planning will be implemented by OHM under Ministry of Science and Technology (MST), whereas Irrigated
Agriculture Development activities through DOA under Ministry of Agriculture (MOA). The Water Resources Strategy Formulation and Integrated Water Policy Development (WRSF) component will be implemented by MOWR/WECS or by a separate national water planning unit (NWPU) under the guidance of the National Steering Commlttee (NSC) of the National Planning Commission. The project fund will be handled either by the Ministry ofWater Resources or the NWPU. In the latter case, DG, DOI, will be included as a member of NSC. The phase I study of WRSF has been completed by NSC/WECS whose report along with the recommendations of the public workshop held on April 18, 1997 is already provided to IDA. The phase II study is to be completed within first 3 years of NISP. The SMIP-111 project. •be implemented by the existing SMIP setup as a Central Level Project under the SMIDB and und, ,:,e overall guidance of DOI. The RD/DOI of Eastern Region will be kept in close consultation w .: will be respo:isible for monitoring and will facilitate coordination with other regional offices mainly RAD. The re;.:: of SMIP Board as envisaged for this phase for implementing Participatory Joint Management (PJM) will be limited to the extent of taking expeditious decisions relc:1ted to procurement of ICB, LCB etc & other projects management matters. The main NISP irrigation infrastructure development components to be executed by DOI will be implemented under the overall consultation of the relevant divisions of the DOI through the RIDs, . DIOs, GWFOs and/or through other project offices where appropriate. • For implementing. NISP, a central Project Coordination Office (PCO) will be set up in DOI u.nder direct supervision of a Project Co.ordinator (PC). Full time or part time coordinators of different major components will be responsible to assist the PC regarding all matters related to the coordination of the Project Components. The PC will be responsible to compile the progress and accounts of all the activities under DOI execution and will function as secretariate of Centrel Level Project Implementation Committee (PIC). The Hydrological studies including Water Resources data & monitoring (Basin/sub-basin studies) will be executed by .the OHM in close consultation with the PDMED. It will function as co-implementing agency. The Agricultural extension services and related trainings and other supports needed for the Sub-Projects in the Project Area such as in Sub-Project preparation, Base-line data collection, BME etc will be provided by the DOA through their existing RADs & DADOs under close Co-ordination with the RIDs, DIOs/GWFOs. The DOA will function as co-implementing agency for DOA institutional strengthening subcomponent including Agricultural extension and related activities. 3. OVERALL PROJECT MANAGEMENT AND CO-ORDINATION ARRANGEMENT Since proposed components and sub-components under NISP involve various Departments under different Ministries, policy decisions will be taken by an apex committee at ministry level and the project implementation will be carried out under three tiered management structure of departments in general and NISP organogram in particular. The NISP organisation chart is shown as Attachment 4. The functions of different committees and implementing units for different components are given below. (i) Project Central Co-ordination Committee (PCCC) To liaison between project executing agencies and relevant Government agencies, a Project Central Coordination Committee (PCCC) will be set up under the chairmanship of the Secretary of MWR including representatives from NPC, MOA, MOF, MOPE, MOST, FCGO, DGs of DOI, OHM, DOA and if needed representatives from private sector agencies can be
(ii) invited in the meeting. The PCCC will coordinate inter-miniserial and inter-departmental project activities relating to policy, budget and major procurement issues. The DG/DOI will function as member secretary of PCCC. Project Implementation Committee (PIC) For implementing the project components and subcomponents, a Proje_ct Implementation Committee (PIC) will be set- up under the Chairmanship of DG of DOI with members consisting of the DDGs of the concerned divisions of the implementing departments. DGMs or Representatives from ADBN & AIC may also be invited. This committee will be responsible for assuring inter-departmental regional offices coordination on matters related to budget preparation, disbursement compilation, progress reporting, and other project .management related matters. lh addition, it shall recomend the sub-projects - surface or groundwater - costing more than NRs. 10 million to obtain approval for implementation from DG/DOI. The committee may invite other relevant officials also. The PC will function as the member-secretary of the PIC. Project Co.-ordination Office (PCO) To assist the PIC, DOI at th.e centre will establish a Project Co-ordination Office (PCO) headed by a full time senior first class officer called Project Coordinator (PC) and manned with necessary representative staff from implementing departments and a team of technical assistance (the Consultants). The PC will be a person qualified and experienced capable to co-ordinate a vast number of activities in the three regions. This office will be focal and contact point for all purposes inter-alia the Bank, other donors and associated visiting missions. This office will be responsible for compiling all the accounts of expenditures, withdrawals, progress report, audit reports of all the subcomponents implemented by DOI. Consolidated withdrawal will be made for the components executed by the Project Managers (PMs) of PlUs. This office will function in close consultation with relevant divisions of the DOI and will maintain regular linkages with them and maintain co-ordination with other implementing agencies. Since DOI will be responsible to furnish to IDA consolidated report on the Special Account to be utilized by all implementing agencies, it will be operated by the PC and the account officer ofPCO. A team of expatriate and national consultants will assist the Project Co-ordinator in the implementation of the project's components in accordance to the Project •Appraisal Document (PAD). The PC will take up timely decisions related to all the matters and procurement of goods and services as per procurement guidelines of the World Bank. This PCO will function as secretriate of the PIC for its meetings and transmission of its decisions. The SMIP-11I as Co-Project will maintain -its accounts separately and will be responsible for timely progress reports, audit reports and withdrawals etc on its own. The PM of SMIP-lll will function as PCO of this Co-project. Similarly DHM and DOA will maintain accounts of disbursements of their respective components and compile timely progress and financial reports of their own.
(iii) (iv) Project Implementation Units (PIUs) and Regional Appraisal and Approval Committee (RAAC) In each of the three Western regions, the existing RAC created for the ILC will be reformed into a Project Implementation Unit (PIU) under the co-ordinationship of the Regional Irrigation Director (RID) who is also designated as Project Manager of NISP and it will be fully established. Other members will include Regional Agriculture Director (RAD), the Director of National Planning Commission (Regional Office), the Regional Controller of ADBN and representative of regional or Basin office of DHM. This PIU will also function as RAAC. RAAC may invite other relevant officials of regional/zonal level offices in the town of the RID. This is deemed essential in order to establish good linkages and to avail their supports at the required stages of the Sub-Projects development. The PIU could be responsible for submission of NISP's annual implementation program to PIC and to the concerned DDCs. District Appraisal Committee (DAC) In the Irrigation Policy (IP) - 1992 (revised 1997) there is a provision to form a DAC for the implementation of Irrigation Sector Program in the districts. This has to be strengthened and activated as district supporting units to PIUs. A procedural guidelines for implementing the NSIP is prepared by ILC TA Team and approved by HMGN/MWR which has to be followed and practiced. For NISP, in each potential districts, the DAC will function under the co-ordinatorship of the DIE. Members will include representatives from DADO, ADBN, AIC and GWFO in districts where tubewells program will be launched. DAC may invite other district level agencies official as per the need of the Sub-Projects. The purpose for setting up the DAC is to support the PIU and establish linkages with the line agencies right from the initial stage of Sub-Projects entry and to avail their involvement and co-ordination for the success and sustainability of the Sub-Projects. After identification (prefeasibility) studies, the DIO/GWFO will rank the Sub-Projects/clusters of tubewells scheme and submit to the DAC meeting for discussion and prioritization for feasibility or detailed designs. After the Sub-Projects feasibility study/detailed design carried out by DIO/GWFO and DADO, DAC will pre-appraise and recommend to the RAAC for necessary approval in the order of priority for implementation. The decision of DAC will be .informed to DDC and will entertain their suggestion (if any) provided the NISP principles and procedures are followed. 4. RESPONSIBILITIES OF IMPLEMENTING AGENCIES 4.1 Water Resources Strategy Formulation Component In view of the importance of this policy and water resources development issues identified under the Phase I study, a commitment to implement the Phase II has been provided to the World Bank by HMGN before the appraisal of NISP. WRSF Phase II will be carried out by a National Water Planning Unit (NWPU) established within WECS under the overall guidance of National Steering Committee (NSC/NPC) having
representatives from all water related relevant ministries. The NWPU will engage a consulting team to carry out the WRSF Phase II study resulting in (i) an integrated comprehensive Water Resources Strategy, (ii) establishment and strengthening of a central level Water Resources Planning Unit (NWPU), ano (iii) modification in the subsector policies (as necessary) to make them in confirmity to the formulated WRS. 4.2 Irrigation Infrastructure and Supporting Infrastructure Development Component This component will be implemented by PlUs (including RAAC) headed by the PM. The PM will work under the overall guidance of PIC. The main responsibility of the RAAC will be to appraise Sub-Projects that have been forwarded by the DIOs/GWFOs after DAC recommendati0n and on subsequent scrutinization by the Mobile Irrigation Team (MIT). The RAAC members should .in particular scrutinize those aspects relevant to them and only after being satisfied appraise or approve the Sub-Projects. Each member will write their own comments and consent separately about the Sub-Projects. The RAAC members will in particular: appraise and approve Sub-Projects of a minor rehabilitation type costing upto a certain limit as defined in the Project Appraisal Document (PAD). appraise and recommend to DG/D0I for approval of all those Sub-Projects of major rehab type or deep tubewell clusters and those costing above the limit mentioned above. The individual Terms of Reference of members of the RAAC responsible for implementing respective components of NISP are given in the procedural guidelines as well as in Attachment 5. Regional Irrigation Directorate (RID) and Project Manager (PM) The RID is designated as Project Manager for the implementation of NISP Sub-Projects within the region except those components to be implemented by DOA, OHM such as Agriculture extension, Hydrological studies. He will also continue to act as administrator and director of all other irrigation related activities of DOI within the region. In accordance with the authority of a PM of NISP, he will carry out the responsibilities of project manager as detailed in the procedural guidelines. To assist the PM in the implementation of NISP activities, the existing MIT will be reinforced and made operational. A regional TA Team will assist him in all technical and procedural matters of NISP subprojects implementation. For the implementation of Groundwater Schemes and TO & PJM activities the general guidance and technical support will be provided by the related divisions (DDGs) of the central DOI and their branches. Mobile Irrigation Team (MIT) In the NISP it is• contemplated that the MIT will be manned with the following officials and made fully operative: • Senior Divisional Engineer (Team Leader) Irrigation Engineers (experienced) Agro-Economist/Economist Sociologist/Training Co-ordinator Agronomist (from RAD/DADO on deputation) Environmentalist
2 or3
1 (or TA supported)
1 (or TA supported) GW Hydrogeologist (for GW Sub-Projects) Engineering Geologist • NGOs according to availability & need
In general the MIT will be the focal point for technical assistance and guidance to the Sub-Project Managers of the DIOs, PIUs or GWFOs for all the activities directly related to the implementation of the NISP program. The team will receive needed supports from the regional level TA team members and in case of need from the central level TA team specialist. More specifically the job description of the team as a whole is given below. Function of MIT: (a) preparing socio-economic and technical briefs including th.e cost estimates on the pre- appraised Sub-Project (from DAC) for the RAAC deliberations, (b) The MIT members must verify the Sub-Project/Groundwater Cluster conditions by visiting the site before preparing the briefs, (c) Providing technical guidance to DIOs, individual subproject office, GWFOs for Sub-Project preparation and to the DAC in their selection and prioritization of Sub-Projects, (d) Checking detailed/tender designs drawings and cost estimates before submitting them to PM/DG (DOI) for approval, (e) Extending assistance to WUAs in their organizational strengthening related matters and resource mobilization etc. as required by WUAs. Appropriate NGO may be engaged for this purpose. (f) Make routine visits to the DIO's Sub-Projects for monitoring of quality assurances on ongoing activities. (g) Ensure that PSA and IEE/EIA has been carried out for each selected subprojects before approval. (h) Work as trainer to the DIOs on matters of experience sharing/appropriate technology, adoption of the ·process and procedures of the NISP in course of trickle down process of training programme. (i) Impart on the job training to engineers, overseers and AOs of the DIOs, and GWFOs relating to appropriate technology and skill-building and for the PBME of the completed Sub- Projects. U) Where difficult problems are encountered during the project cycle such as Sub-Project selection at entry, it will seek the assistance of the TA Team. (k) Take the endorsement of the TA Team in case of major rehab, Deep tubewell cluster, minor rehab with complicated structure type Sub-Projects or Sub-Projects costing over NRs.5.0 million, before final approval or before RAAC appraisal as per provision in the PAD. The specific TOR (Roles and Responsibilities) of each member of RAAC, MIT and that of other key officials is given in Attachment 5. District Irrigation Office/Groundwater Field Office (D1O/GWFO) and Sub-Project Manager A Sub-Project Manager will be co-implementor for irrigation development related activities of the NISP within his jurisdiction along with DADO who will be respon'sible to assist DIO in subproject preparation and carry out the agricultural extention subcomponent of the Project. Depending on the number of Sub-Projects and volume of works, the Chief of the D1O will be designated as Sub-Project Manager of NISP works within the district. He should have adequate staff
resources to undertake Sub-Project identification, project designs, construction and post- construction monitoring in collaboration with the DADO staff. Similarly GWFO incharge will be designated as Sub-PM for GW related activities within districts under the jurisdiction. A Sub-Project Manager of NISP will perform the duties and bear the responsibilities in accordance to the delegated authority detailed in the Procedural Guidelines. • Regional Agricultural Directorate (RAD) The Regional Agriculture Director will be a member of PIU & RMC in order to ensure closer linkages for all the activities under NISP under all the sub-sectors of Agriculture. He will guide & supervise the works & jobs entrusted to DADOs in collaboration to DIOs. Since DOA is the co-implementor of NISP for the DOA's Institutional strengthening subcomponent, the RAD will be responsible for planning annual program and its implemtantion in the NISP districts. A Regional Monitoring and Evaluation Team (RM&E) under the RADO will monitor and evaluate performance & impact of completed Sub-Projects. District Agriculture Development Office (DADO) The DADO of the NISP districts will be co-implementor of the program related to Irrigated Agriculture extension in the respective districts side by side of Chief of the D1O. (a) As the responsibility of providing Agri. extension services in the Sub-Projects area lies to the DOA through RAD and DADO, close co-ordination will be maintained between DADO and D1O from Sub-Project planning stage to the completion of the Sub-Projects and beyond. (b) The DADO or a representative will be a member of the DAC and will be involved in the selection and prioritization of Sub-Project according to the Procedural Guidelines of NISP. (c) Particularly DADO will be responsible for implementing; • agricultural extension services component of the NISP training WUAs in management of support services establishment of linkages with other input providing agencies monitoring ofthe project economic benefits in the Sub-Project area. (d) Provide support during the Sub-Project screening, selection, identification and feasibility study stage in particular provide assistance for collection of data and in undertaking the economic analysis of the Sub-Projects and undertaking the baseline studies in coordination with DIO. (e) Ensure participation of D1O/GWFO in implementing the irrigated agriculture activities in the district. (f) Ensure ASCs/SSCs under the DADO, support the WUAs to use their infrastructure for trainings/meetings etc. related to the Sub-Projects activities. Water Users Associations (WUAs) Since the farmer water users are going to ultimately own and operate the irrigation system, they should be motivated to take lead in all related activities~ So the Sub-Project's WUA should participate at all phases of the project cycle with D1O/DADO staff, except at appraisal and approval stage, from the time they have forwarded their request application to DIO/ASC/DAD·o. In particular they have to:
(a) (b) (c) (d) (e) (f) (g) (h) (i) 0) (k) Assist the AO/OS/ER in identification study, feasibility studies and provide all relevant data. Update request forms if needed. Remain associated with DIO at detailed design stage so as to confirm to their local needs and manageability of the facilities being designed for construction or improvements. Also conform the delineated part of works against their contribution (participation) before work breakdown agreement is drawn. Call general meeting of all the user farmers to discuss the terms and conditions of Govt's support to tfteir request and their duties and obligations and discuss draft MOA (Memorandum of Agreement format) and their charter for registration with the DWRC. Mobilize resources to fulfill their obligations and contribution to the cost of construction (cash and labour). Complete their part of construction works as per agreed time schedule and as per work breakdown agreement. Join completion walk-through inspection with DIO and other line agencies. Sign the completion of responsibilities c~rtificate on satisfaction of both parties. .On completion of construction of improvements, take full O&M responsibility and control. Ensure timely repair/maintenance. Establish linkages with agriculture extension service, to achieve production goal. Encourage women farmers in the WUA committee and involve them in the trainings for irrigated agriculture extension, environmental protection O&M of the scheme and other trainings related to their income generation etc. Seek assistance if needed for the restoration and preservation of environment within the project area from the related Government agencies and NGOs. - WUA will agree with the dtailed designs (such as number, type of structures, length of lining etc.) and enter into an MOA with the DIO. This MOA will form the basis of signing of certificate of completion of subprojects designed works. 4.3 Institutional Strengthening 4.3.1 Department of Irrigation (i) Technical Assistance: Under the project it is envisaged to engage two international consulting teams in association with national consultants to assist in the implementation of the project components, identified as Packages I and II: Package I; a TA Team to assist DOI in implementing irrigation sector infrastructure and supporting infrastructure development along with institutional strengthening of DOI. The team will also be responsible for procurement and supervision of national consultants for carrying out O&M and Subsidy Studies, assistance to the on-farm water management component and assessing capacity and selection of District based NGOs. TORs for the TA Teams incorporating the suggestions on technical, environmental, institutional and social aspects are given in Attachment 6 including the TOR for NGOs engagement, O&M and subsidy·studies. Package II; a TA Team for assisting the implementation of SMIP-111 project, TOR of which are given in Attachment 7. The position of the consultants team within the prposed project's organisation are shown in the organograms of the two compoment/subcomponent (NISP and SMIP-11I):
NISP infrastructure development and DOI strengthening components. will be implemented by the PIC having PCO as its secretariate. In the regions the implementation will be the rsponisbiliteis of the PlUs. The TA Team at the centre will be attached to the PCO and the TA Team Leader will be directly reporting to the PC. At the regional level a TA Team comprising of an irrigation engineer and a Sociologist cum Agriculturist will assist the PIU in the implementation of the subprojects including training activities. To support the team, other specialists will be deployed from the central TA Team according to the needs of the region (PIU). The TA Team for the SMIP-111 project will be attached to the Project Management Office at Biratnagar and will assist the Project Manager in the design, construction and management of the project to achieve the scope of works and objectives of adoptation of PJM in the project area. (ii) Training: Institutional Strengthening aspects of NISP will include inter-alia, the capacity building of DOI, DOA and other related staffs of implementing units as well as capacity building of the NGOs/CBOs and WUAs for promoting beneficiary participation and productive irrigated agriculture on a sustainable basis. To implement the training activities a structured program has been formulated from Centre to Sub-Projects levels. At the centre the IMD's, HRDTB will be assisted by TA Team Sociologist cum Training Management Specialist in order to be able to plan and conduct central level training and in the preparation of training materials for the support of regional, • district and sub-project level trainings. At regional level, the RIDs organizational setup will establish a 'Regional Training Unit' headed by a II-class officer called training chief. A core group of professionals out of regular posts from RID or from the new recruitment of sanctioned posts will be formed with the training port-folio for c;:atering the training needs. of NISP for the region. The training will be conducted through joint cooperation of DOI & DOA. The frontline technical (JT/JTAs, OSs, AOs, NG0/CBOs) including engineers and SMSs training will be the responsibility of the Regional Training Unit. They will be also trained by HRDTB and the TA Team as trainer, for imparting needed training to the WUAs in association with the NGOs. The district level training will be carried out under the overall responsibility of the DIO (Chief). Wherever in the organogram of District Irrigation Office, Irrigation management Section exists, this section will be activated to undertake training responsibility of the·district, and the manpower will be arranged accordingly. At other districts also manpower for the training will .be arranged including NGOs for training ofWUAs. Budgetary provision for the training activities will be made in the annual programs of the centre (HRDTB), region (RID) and districts (D1O) for all their respective annual training needs and the budget will be released directly to them as per HMGN procedures and financial management plan described in Section C, chapter 4. An organizational arrangement for implementing the DOI institutional strengthening program is given in Attachment 4 (B). The training program of NISP will be implemented as per the following procedure and arrangements.
* Central Level: The training program of DOI falls under the overall jurisdiction of the Irrigation Management Division. This Division will approve the NISP training plan and forwards to the concerned Division(s) of the DOI, monitor, supervise, give direction and evaluate the activities carried out by its HRDTB, and also the Regional Directorate and District Irrigation Offices/ Irrigation Projects which will be carrying out the NISP training activities within their jurisdictions. To carry out the NISP training program, the HRDTB will perform the following tasks: assess irrigation related training requirements of the districts, regions and center design the annual training programs based on the needs assessed. develop training curriculum related to the project's objectives and scope of works develop guideline, update forms and formats for the implementation of training programs, assist the expatriate TA Team in selection of NGOs to be engaged for the WUA strengthening activities implement the central level training programs and workshops for DOI staff including NGOs (if deployed) monitor, supervise and evaluate different trainings conducted at regions and districts prepare training and extension materials, arrange for their production, distribution and dissemination. The training programs will be conducted through the mobilization of internal staff, employment of training institute or expert private agencies or NGOs or expert resource personnels. * Regional Level: The Regional Irrigation Directorate Training Unit (RTU) will execute, monitor, supervise and manage all the NISP training activities within the region under the general guidance of the HRDTB. TheRTUwill: assess training needs within the region prepare plan program and budget for the training activities and implement them at the regional level or within the region monitor, supervise and evaluate and follow up of training activities conducted by the DIOs/SPIU/GWFOs under its jurisdiction coordinate the training programs with the concerned agencies at the regional level assess NGOs avaialbility and train the selected ones as trainer for carry out WUAs trainings * District Level The District Irrigation Office will designate one of its officials as incharge of training activities. He will execute and monitor, sueprvise and manage the NISP training activities within the district under the general guidance of the respective Regional Irrigation Directorate's RTU.
The DIOs/SPIUs/GWFOs will: assess the training needs within its jurisdiction prepare plan, program and budget for training activities and implement the same according to the budget provided with the assistance of NGOs if engaged. coordinate the training activities with DADO within the district (iii) Groundwater Monitoring: Groundwater schemes and groundwater monitoring under NISP districts will be implemented by the existing four GWFOs in the three western regions under overall guidance of the GWD of the DOI. DDG/GWD is a member of the central PIC. At the regional and district level, the RAAC and DAC is common for both surface and groundwater irrigation developments. A relevant official from GWD will be permanently assigned to be associated with the PCO/PIC. The Institutional Strengthening Organogram of DOI is given in Attachment 4 (B). The geohydrological survey and well observation equipments will be procured by_the central PCO under advise of GWD. Well observer, computer software trainings and study tours of staff will be conducted by the HRDTB & RTUs according to the training needs assessment. (iv) On-Farm Water Management: On-farm water management (OFWM) activities in about 6000 ha of rehabilitated, improved, developed FMISs will be carried out under the overall guidance of IMD/DOI through its RTDB. It will expand the model of FAO/SPIN pilot programme presently ongoing in 4 districts of Nepal on a very limited scale. FAO will be requested to support OFWM Programme in ILC/NISP completed subprojects under consultancy services financed either under the credit or as FAO grant to HMGN. At field level, the activities will be implemented by PIU/DIO/DADO as usual on line of FAQ/SPIN programme. A team of national consultants (individual) in the field of onfarm irrigation rnanagement, agriculture extension and training will be seperately procured under the main DOI consultancy, Package I. IMD will assign the Chief of RTDB as coordinator of OFWM subcomponent to permanently represent in the PCO/PIC and coordinate the related activities with PIU/DIOs and with the consultancy team deployed for OFWM. Similarly a senior Agronomist will be required to be assigned by DOA to work with the IMD-OFWM coordinator. . (v) MIS Support: The MIS unit established during the ILC and IDS pilot project operates under the Planning, Design, Monitoring and Evaluation Division (PD&MED) headed by a DDG. Further this unit falls under the subdivision of the Monitoring and Evaluation Section of the division. This unit will be made functional and work closely with the PCO. Training of the MIS staff will be conducted under the Training Programme of the HRDTB and the RIDs.
4.3.2 Private Sector Strengthening Apprqpriate and capable NGOs will be procured by the expatriate consultants and on approval of PIC engaged in WUA strengthening and other related activities. They will work under overall guidance of TA Consulant and have direct link with MIT/RTU. 4.3.3 Department of Hydrology and Meteorolgy The OHM under Ministry of Science and Technology (MOST) will implement this sub-component. The DOG (hydrology) will function as Coordinator cum Project Manager. He will be assisted by the concerned Basin Offices and other professionals of OHM. The organizational chart is given in Attachment 4 (C). A team of International and National Consultants will be deployed to assist OHM in carrying out the activities to achieve the objectives of.the sub-components. The TOR for these Consultants, Identified as Package Ill are presented in Attachment 8. The activities proposed in four river basins, within NISP three Western regions, namely; Narayani, West-Rapti, Karnali and Mahakali river basins will comprise of the following: Basinwise water availabiiity assessment in hills and mountains in the three western development regions. Establishment/ rehabilitation and regular operation of stream gauging, sediment, precipitation and meteorological stations. Regular observation of respective data from the rehabilitated and newly established stations. Collection, processing, analysis and dissemination of the observed data. Development of a customized database system and establishment of it in the OHM. Development and establishment of a Monitoring and Evaluation system. Manpowerdevelopment and institutional strengthening. 4.3.4 Department of Agriculture Primarily this component will be executed by DOA Under DOA Regional Director of Agriculture, District Agriculture Development Office (DADO) and Agriculture Service Centre (ASC) will be actively involved in the project implementation. The Subject Matter Specialist (SMS) of the Districts and JT/JTAs working at grass root level will play key role in project implementation. The administration · and supervision will be carried out as per present managerial setup of DOA by Regional Director of Agriculture and DADO. At the central level on behalf of DOA Agriculture Extension Division (AED) under DOG (Planning) will coordinate the program. For coordinating the activities C:lf DADOs under this AED, a NISP-PIU will be setup under a II-class officer who will also be the representative in PCO/PIC. • The organizational arrangements for DOA are shown in Attachment 4(0). 5. BANK ROLE DURING PROJECT IMPLEMENTATION The Bank, through its ongoing and proposed credit assistance programs, substantially supports Nepal's developmental objectives and strategies such as in the past Basic Need Fulfillment program, five year plans and currently approved Nepal Agricultural Perspective Plan (APP) which are in line with Bank's own Water Resources Management Policy and CAS for 1996-98. These policies clearly spells to take up programs for equitable, efficient and sustainable development of water resources, and poverty alleviation program for country's overall economic development. In this aspect
agriculture sector presents the highest potential for growth and poverty alleviation in countries like Nepal. The proposed NISP package will contribute, in general, to the potential growth of agriculture by developing efficient irrigation practices in the existing systems as well as in new development of tubewell schemes. If this program becomes a success in terms of creating desired impacts on farm households of the rural areas to increase agricultural production and thereby generating multiplier effect on other sectors of Nepalese economy, similar assistances will be hopefully continued by donors in future. As and when required, the Bank will assist HMGN in the following: Seeking other bilateral donors to meet the cost of Technical Assistance & Training components needed for the project. • Procurement of goods, equipments, vehicles etc. (from international companies) in accordance with the Bank's procurement guidelines.· Fielding the expatriate technical specialists to the project when required for special studies & mid-term reviews. Timely reimbursement of credit funds. Establishing of a special Accounts. Training implementing agencies personnel on Bank's procedures of Bidding, Procurement and Account keeping. 6. ADMINISTRATIVE ARRANGEMENTS 6.1 Water Resources Strategy Formulation The comprehensive Water Resources strategy formulation has been initiated by National Steering Committee (NSC) in which all concerned ministries are represented. The phase I of the formulation has been accomplished under close cooperation of MOWR/WECS. For completing the phase II tasks, a National Water Planning Unit (NWPU) will be established under NSC/NPC or WECS/MOWR who will carry out the task engaging a team of international and national consultants. 6.2 Irrigation Sector Infrastructure Improvement and Development The Project Implementation will need proper management and not administration. The deployment and redeployment of staff & personnel will follow the normal •administrative & financial rules & regulations of HMGN. However the conditions & covenants of DCA between the Bank and the Borrower (HMGN) has to be abided by the Implementing Departments and the Ministries. The roles & responsibilities of implementing agencies & entities have been already mentioned in earlier chapter. One point that needs consideration is that the Accounts keeping staffs are deployed by the FCGO who follow their own rules and regulations whereas the DCA spells to follow the Bank's procurement and disbursement guidelines. Knowledge & skill in loan disbursement and account keeping needs to be imparted to the designated staffs who should be in place for the full term of the project. Thus they have to learn to be responsible to the implementing units & officials and punctuality in timely accounts keeping to effect timely reimburs.ement. Similarly engineers who will be trained for implementing the Sub-Projects on NISP principles & procedures need to be in position for their full term as per administrative rules. Frequent transfer have hampered progress in the past. Some specific administrative matters related to the implementation of the project are as follows that needs to be duly attended are as follows:
The Project Coordinator of the PCO to be filled by a senior I class official and not to be frequently changed. PMs be deputed in RIDs for full term as per the administrative _rules. MIT be fully staffed and to have required experience and logistic support to be made available. Some districts which have little or negligible potentiality for increasing agricultural production need not be fully staffed rather these can be supervised from adjoining D10 engineers. PMs should be authorized to depute staffs from one to the other districts according to the volume of work load in a district (D10/GWFO) within his region. MIS units in RIDs should be manned and made operative. Sociologists post in RID should be positioned with· permanent cadre. The position is important for carrying out training activities and WUAs strengthening program. The PCCC should be mandated to take up expedition decisions related to the financial and administrative matters of the Project. Authority should also be vested to take. up decisions related to different procurements. 6.2.1 Sunsari Morang-Ill Project The project activities will be implemented and managed by the existing SMIP setup in Biratnagar headed by a Project Manager (PM) under the overall supervision of DOI management. Expeditions decisions related to policy, procurements and management will be taken by the SMIP Board chaired by the Secretary of MOWR who will also be the Chairman of the PCCC having many common members in both the Board and PCCC. The SMIP-11I will maintain its seperate ac.count and will have its own financial management plan. The PM will be responsible for timely progress reprot audit and accounts report and withdrawals etc. The PM will designate an official to be permanently associated with the PCO of PIC in the DOI. The organogram for SMIP-11I project implementation is given in Attachment 4. The existing SMIP staff would form the core project management team. In the management the following points will be given special considerations. The PM designated will be experienced technical personnel of DOI and not frequently transferred. The project (SMIP-111) will be fully staffed with competant SDEs, Engineers & OSs. FCGO will be requested to depute conversant accounts keeping officials conversant with World Bank assisted projects account keeping procedures. A new Institutional Development Division will be setup during the first year of the project. 6.3 Institutional Strengthening . The Institutional Strengthening Component of the project cosists of activities related to the capability building of the three Departments; DOI, DOA & OHM and the Private Sector Strengthening. The activities will be implemented through the existing organizational set up of the departments as shown in their organograms (Attachment 4). Under the private sector strengthening subcomponent, the selection and engagement of NGOs will be undertaken by the expatriate Consultant (NISP) under guidance of PIC/PCO and in association with IMD/HRDTB. Similarly the responsibility of carrying out O&M and Subsidy studies will be entrusted to the NISP main expatriate consultant by engaging national experts (consultants). Similar arrangement is proposed for OFWM, through national consultancy procurement. This is thought desirable in order to
avoid duplication and to achieve coordinated TA support to DOI at central level. The foreign experts required for OFWM technical assistance is to be arranged through FAO. C. IMPLEMENTATION PLAN 1. TIME BOUND IMPLEMENTATION PLANS AND DISBURSEMENT SCHEDULES The proposed NISP is planned to be implemented during five years period. In the first year, construction of the carried over incompleted Sub-Projects from ILC will be continued along with preparatory works of selection, identification & studies of fresh Sub-Projects in accordance to the guidelines for NISP implementation. The appointment of the Consultants as well as procurement of equipments and vehicles and other logistic supports required for the effective implementation of the project will be completed during the first year of the project as per the procedures specified by the World Bank procurement guidelines. The equipments & vehicles will also be procured in the very first year as per immediate requirements. Based on an overall implementation schedule presented in Attachment 9, an annual Project 1 year 2nd year 3rd year 4th year 5th year Total Period• 1998 1999 2000 2001 2002 NRsxmillion 555.2 1178.3 1580.8 1245.7 463.1 5023.1 1.1 Water Resources Strategy Formulation A provision of NRs. 44 millions (Base cost) is made for completing the WRSF phase II study. Under this component technical assistance and supporting facilities (including planning tools such as GIS, river basin economic modelling) for phase II will be procured. The WRSF will be completed during the 3rd year of NISP. • There is also provision made to: (i) prepare a national water resources policy; (ii) establish a national planning unit; (iii) revise sub-sector policies and related acts and regulations (ie. hydropower, irrigation, urban and rural water supply, industrial waste water etc.). The O&M and subsidy studies of the irrigation sector will be carried out by DOI tleploying seperate consulting team(s) for which provision has been made under DOI institutional strengthening component. Presently detailed TOR for WRSF phase-II study is being prepared by a national consulting team engaged by NSC from July 1, 1997 which is expected to be completed before August 15, 1997 along with time-bound action plan for carrying out the study. The same has been submitted to IDA through MOF. Implementation schedule and annual disbursement forecast is given in Attachment 9 and 10. 1.2 Irrigation Sector Infrastructure Improvement and Development The NISP components are planned to be implemented during five years of project period. Implementation of FMIS Sub-Projects rehabilitation should normally be completed in two consecutive years after all the preparatory works including WUA's organization part is attended in the earlier year.
In budget programming, construction work will not be normally scheduled in the. first year except where the WUA is already organized and has fulfilled their commitment and the D1O has prepared and got approved the tender/detailed designs of the Sub-Project. The annual implementation plan of the activities under this component is given in Attachment 9. Also annual disbursement forecast is given in Attachment 10. Each Sub-Project under NISP will be implemented in the following stages. Quality has to be assured at all the stages. The process should strictly follow the Irrigation Policy (revised 1997) in general and in accordance with the implementation Procedural Guidelines for Surface Water and Groundwater Irrigation Schemes prepared by ILC TA Team and approved by MOWR for adoption in NISP in particular, a concise version of which is attached in Attachment 11. (i) • Pre-construction stage: The following steps will be followed: Information dissemination to farmers about NISP principles & procedures etc. Application for eligibility to DIO through DADO/ASC/SSC. Screening and selection by DAC for pre-feasibility of Sub-Projects after upfront cash deposit by WUAs. After pre-feasibility selection & prioritization by DAC for feasibility study or detailed designs depending whether the Sub-Project is major or minor rehab type. Feasibility study/detailed design by DIO/DADO with as·sistance from. MIT and Consultants (if needed). Pre-appraisal by DAC and prioritization for implementation. Sub-Project scrutiny & verification by MIT (and Project Consultant as needed). Submission by DIO/GWFO for RAAC approval. After approval by RAAC or DG/DOI and on receipt of second installment of deposit to make total 0.5% from WUA, preparation of.detailed design & drawings (in case of major rehab) and LCB tender document (based on model tender document) for approval by PM (RID). For minor rehab Sub-Project (costing less than Rs. 1.0 million), where WUA is willing to undertake construction works, agreement for implementation will be drawn up. For Sub-Projects not approved for implementation, farmer's deposit will be refunded. Formation and registration ofWUAs underWRR -1993 with DWRC. Similar pre-construction procedures will apply in case of Turnover (TO) and PJM Sub-Projects where application, cash deposits etc. are not mandatory rather IP 1997 have to be flourished and applied to bring AMISs at parity to FMISs. (Based on past experiences of implementing similar program, pre-construction stage activities takes about 6 to 12 months.) (ii) Construction Stage: During the stage the steps followed are: Commitment for providing by user farmers of cash and/or labor contribution equivalent to a min. of 5-20% of total Sub-Project cost as specified in the IP 1997 depending upon the type of scheme. Signature of Agreement (MOA) between DIO/GWFO and WUA and also work breakdown agreement drawn. The signature on MOA is to be done infront of mass of the beneficiaries gathering.
Formation of WUA construction supervision committee and training on quality control etc. Tendering by D1O/GWFO and award of contract while maintaining transparency with WUA. Contract Agreement signature with the contractor. DIO part of works by contractor will start only after 15% of WUA part (as per WB agreement) is done or equivalent cash deposited and the rest is to be carried out in parallel. In case of cost overrun in excess of provision for physical contingency additional WUA's contribution is assessed and agreed upon before continuing the construction. Construction of Surface Irrigation Schemes (FMISs) and GW schemes should not take more than two and two and a half years respectively as shown in the typical implementation schedules (detailed Procedural Guidelines). (iii) Commissioning and Turnover: After completion of the scheme, concerned agency representatives along with WUA make a "Walk through" inspection of the completed scheme to see defects (if any) and operational problems for taking corrective/remedial measures. After Which, WUA will confirm completion of the works as agreed in the MOA & WBA. In case of FMISs rehab/improvement WUA resumes full responsibility of O&M whereas in case of TO & PJM of the part of the system that is formally turned over to WUA. DIO/GVVFO/SPIU will prepare a completion report and the system's operation manual. The contractor's security will be released after the warranty .,. (maintenance) period according to the contract agreement is over. (iv) Operation & Maintenance: Except in case of scheme developed for Participatory Joint Management (PJM) WUA takes over ownership, full management and O&M of the irrigation system (FMIS & TO). NGOs/CBOs working in the area will assist in establishing linkage with the line agencies to facilitate WUAs access to agriculture support and extension services. These NGOs/CBOs have been assisting WUAs in strengthening the organization of WUA from the very beginning. They will also assist WUA in availing credit facilities from the nearby agriculture banks. Central & Regional MIS of DOI enter in records the completed scheme in its data base. The M&E section of RID in collaboration with RPBME team under RAD will carry on the impact evaluation of the completed schemes after the development period is over. Implementation Guidelines Following are the NISP Implementation Guidelines: NISP implementation will in general be in accordance with the procedures outlined in the HMGN's new Irrigation Policy (revised 1997) and strictly as per the "Procedural Guidelines for Surface Water and Ground Water Irrigation Systems" prepared by the ILC TA Team and approved by HMGN/MOWR Sub-Project cycle steps for the development of Farmer Managed Systems for Surface and Groundwater Irrigation systems are given in Attachment 11.
Coordination between the DOA, DOI, and OHM at the central, regional and district levels will be maintained throughout the project cycle. The membership of the team charged with assisting in project identification, design, and appraisal will be expanded to include representatives from the various implementing departments, i.e. Agriculture, Irrigation, ADBN, District Planning Units and Environment Department. All major rehabilitation schemes and minor irrigation schemes involving complex structures and geology, and deep tubewell schemes will be subject to technical review and endorsement by the project consultants prior to approval. Implementation of schemes will only commence on receipt of cash contribution and commitment from beneficiary farmers in accordance with the following schedule: * at Application stage: upfront cash deposit of NRs. 50/ha for all surface schemes and an upfront cash deposit of NRs. 200/ha for all GW schemes. The deposit will be returned in case the subproject is not approved. * Before construction/ at LCB tendering: Cash balance to make the total deposit equivalent to 0.5% of the total estimated cost of the scheme. * at Construction: Additional contribution in cash or in labor in accordance with the new HMGN's Irrigation Policy or in accordance to the work • breakdown agreement. The 0.5% cash deposited in the joint account of WUA & DIO, will be returned to the WUA upon successful completion of the scheme for their use as seed money for future O&M. A certificate of deposit must be attested to by the concerned Regional Irrigation Director and the annual audit should certify to the fulfillment of this clause. In the case of cost overruns of more than 10% beyond the agreed original estimate prior to commencement of construction, the construction will be discontinued until the farmers have contributed (in kind/cash/labor) on a pro-rata basis their share of the cost overrun. The LCB contract should provide a termination clause to this effect. A certified register of completed schemes (ILG and NISP) seen and signed by the concerned Regional Irrigation Directors and approved by the DG/DOI will be prepared annually for checking and audit. Completed schemes will not be eligible for funding under the project during the NISP implementation period, barring catastrophic acts of nature. The Mobile Irrigation Team (MIT) at the regional offices will be reinforced by the deputation of an environmentalist and the concerned District Agriculture Officer. In each potential districts of NISP, a District Appraisal Committee will be formed under the coordination of the District Irrigation Engineer. This will establish linkages with the line agencies from the initial stage of Sub-Project identification, ensuring line agencies' involvement. The DAG selection of Sub-Projects will be on the basis of their review of identification reports, feasibility studies and detailed designs, and after their appraisal, will make a recommendation to Regional Appraisal and Approval Committee (RAAC) prioritizing their implementation. A PIU will be setup under the coordination of the Regional Irrigation Director and will include the Regional Agriculture Director, ADBN's representative and the Regional Director of the National Planning Commission in the particular region. The PIU will also function as RAAC. Other line agencies may be invited as needed in the RAAC meeting. 1.3 Sunsari Morang Ill Project The implementation plan and annual disbursements forcast for this sub-component is given in Attachments 9 and 10.
For this project the implementation plan is made in such a way so as to deploy the consulting services TA Team from 1 Jan. 1998. The civil works procurement packaging is made for one ICB contract. In the beginning the selected 1,350 ha pilot area will be undertaken for implementation of the project activities. The revised land acquisition plan (LAP) is given in Attachment 12. The resettlement action plan (RAP) was forwarded to IDA at the Negotiations. 1.'4 • Institutional Strengthening 1.4.1 Department of Irrigation Technical Assistance: The TORs of NISP and SMIP-11I consultancy services and its manning schedules are given in Attachments 6 and 7 respectively. ' The implementation schedule and disbursement schedule is given in Attachment 9 and 10. Training: Implementation schedule and disbursement schedule is given in Attachment9 and 1O, Ground Water Monitoring The following activities will be carried but on a regular basis by the GWFOs in the eight of the western region. districts well inventory; technical information on already constructed and operational wells will be collected and analysed well monitoring; regular monthly monitoring of static water level fluctuations will be observed to assess recharge variations and underground water flow directions etc. rehab of investigation wells; choked or problematic investigation wells will be rehabilitated to monitor accurate static water levels investigation wells drilling; the proposed investigation STWs & DTWs will be constructed in proposed or ongoing TW clusters for assessment of different hydrogeological parameters • procurement of equipment and materials; required for geohydrological survey and well observations such as Global Positions Training and study tours for well observers The implementation schedule and disbursement schedule for this subcomponent is given in Attachment 9 and 10. A total of NRs. 34.0 million (base cost) provision is made in the cost estimate of the project. On-Farm Water Management Total cost estimate for carrying out on-farm water management activities in 6000 ha is NRs. 91.1 millions which includes the consultant services of 12 and 84 man-months respectively for international and national experts.
The OFWM activities in a selected scheme include a series of well scheduled training sessions carried out over a period of two years where suppering agency field staff work in close cooperation with farmers in actual carrying out the water distribution, rotation, application alongwith agriculture extension activities for ensuring sustainability of O&M of the irrigation system and improved agriculture practices. The WUA is strengthened and made effective in all respects within 2 years, period so that they are able to carryover the O&M of the system and the on-farm water management practices when the support is withdrawan. In each Sub-Project the OFWM support is flourished for two years. In the first year 1Odistricts are planned to be included with 10 selected Sub-Projects and in the second year 10 additional Sub-Projects will be selected while continuing activities on the 10 Sub-Projects taken in previous year. The list of implementation plan of selecting Sub-Projects for OFWM activities are given below. It is to be noted that by the end of fifth year 40 Sub-Projects will be completed. No of New Districts selected 10 10 Totai Districts involved 10 10 20 10 No of New Pilot Schemes selected 10 10 10 10 0 No of2nd year Pilot Schemes 0 10 10 10 10 Details of implementation schedule and disbursement schedule of this component is given in Attachment 9 and 10. MIS Support
Details of implementation schedule and annual disbursement schedule is given in Attachments 9 and 10. 1.4.2 Private Sector Strengthening Details of implementation schedule and annual disbursement schedule is given in Attachments 9 and 10. 1.4.3 Department of Hydrology and Meteorology The activities proposed will be implemented in two phase. The first phase will be of 3 years duration in which rehabilitation and establishments of network of stations will be carried out. Also procurement of equipments and observation and collection of hydrometric and rainfall data will be continued. The 2nd phase will cover the continuation of data collection including processing, interpretation and its dissemination. The detailed implementation plan is given in Attachment 9. Total provision for all the activities in NRs. 274.8 millions (Base Cost) including consultancyservices and studies (NRs. 133.8 million) as shown in disbursement schedule in Attachment 10. More ·details of implementation plan is given in Attachment 9, Annexes.
1.4.4 Department of Agriculture The DOA agricultural extenstion strengthening and support to NISP Sub-Projects preparation and appraisal is given in disbursement schedule in Attachment 10. A total of NRs.102.5 is provided for the activities. 2. PROCUREMENT ACTIONS Procurement of works, goods and services required for different components are to be managed in general as follows: Description Works (construction) Good (equip., vehicles etc) Trainings Studies Technical Assistance Method National Competitive Bidding/lCB as the case may be according to threshholds value Local International Bidding HRDTB, RID/RAD, NGO/CBO National Agencies/National Consultancy Expatriate Consulting Firm and National Agencies As a matter of fact, all the procurement will follow the IDA procurement guidelines. The thr'eshholds for procurement methods and prior review as prescribed by IDA will be followed. IDA standard bidding documents (SBD) for ICB and NCB as agreeed by HMGN will be used. 2.1 Civil Works: FMIS Rehabilitation and Development ' The works related to the improvement/rehab of FMISs and construction of Groundwater schemes are of civil works in .nature. The number and type of Sub-Projects are still not fixed as this will depend upon the demand of the actual irrigators. It is anticipated that there will be almost 390 Sub-Projects in the three regions. The works will be very small in nature, scattered in several districts of the three regions and scheduled at various times of the five years. Therefore these works have to be executed through LCB procedures and wherever possible by the beneficiary groups(community participation) or local shopping procedures. The works will consist mainly diversion structures, water conveyance structures, canal excavation, canal linings, retaining walls and many other type of rehabilitation works required for irrigation systems, Tubewell drilling, pumphouse, pumping installations. There may be some works in remote locations, calling a situation to get the works done through piece meal basis or by awarding contract on basis of three quotations. All Consultants required for studies, training and other services will be selected and employed by the implementing agencies according to IDA guidelines. 2.2 .Supporting Infrastructure . The works will consist mainly farm roads, environmental protection measures, river erosion protection works in the command area, drinking water, micro hydropower generation installations etc. which will be taken only on demand of beneficiaries and on agreed cost sharing arrangements. The works will be implemented by PIUs/DIOs/GWFOs according to the agreement with WUAs. They will be executed through LCB or local shopping procedures.
2.3 Civil Works Sunsari Morang-Ill Project The civil works under irrigation and drainage development is packaged to be executed under one ICB whereas the rest of tertiary canals development and building works by LCB procedures. The one ICB civil works procurement package is being processed. The prequalification based on agreed documents is underway and it has been agreed with the IDA to follow the following time table. * Shortlisting of prequalified-bidders * Floating of ICB civil works tender * Bid opening by July 31, 997 latest by August 15, 1997 not later than Oct. 31, 1997 The procurement action plan of SMIP-I11 project for civil works is given in Attachment 13, Annex-A. 2.4 Civil Works Hydrology The civil works under OHM strengthening activities include construction of hydrometric stations, stream ganging stations, precipitation stations etc. which is planned to accomplished through LCB or local shopping. Small works will be carried out through force account measures. Procurement package and plan is given in Attachment 13, Annex B. 2.5 Goods (Equipment, Vehicles and Materials) The goods under the project to be procured include vehicles, equipments, machinery and office equipments and accessories as well tools and spare parts. These will be procured through ICB/LIB or NCB or local shopping procedures as permitted.in the threshholds value. 2.6 Consultancy Services Consultant services will be required to provide inputs to assist DOI, SMIP-11I project & DHM in implementing the projects scope of works. This will include both long term and short term expatriate and local consultants. The Technical assistance procurement action plan is given in Attachment 14 for these three major Packages, namely, DOI-NISP Implementation, Sunsari Morang-Ill implementation and DHM TA Supports. 2.7 Training The trainng sub-component under institutional strengthening of DOI is planned to be implemented using partly TA Consultancy team, departmental resource persons (HRDTB, RTU) and national expertise and NGOs. All sort of procurement methods such as ICB, NCB, Local shopping and Force Account will be required to carry out the activities during project period of five years. 2.8 Contract Review All contracts for- consultancies, training and studies, plus works estimated to cost at least US$ 200,000 or more and goods procurement estimated to cost US$ 100,000 or more will be subject to standard IDA pre-action review. For Sub-Project preparation, hydrological studies, other studies, standard contracts
for use with prequalified consultant firms will be based on agreed terms of reference and contract documents and will be pre-approved by IDA. Standards and Procedures specified in the Bank's "Guidelines for Procurement" will be followed. HMGN has developed standard ICB and LCB bidding documents for works and goods. These documents have been agreed with IDA. These will be used for procurement as well as for executing works. Standard IDA procurement preference will be given to domestic contractors and manufacturers when ICB procedures are to be used. 3. SPECIFIC ACTIONS TO ACHIEVE PROJECT IMPACTOBJECTIVES 3.1 Environmental Plans As NISP is limited to rehabilitation and improvement of existing irrigation systems and construction of tubewell schemes based on demand driven principles, the works are not expected to affect much on the existing environment and ecology. However major rehabilitation particularly in hill areas, which has fragile econlogy are suseptible to adverse impacts due to enlargement of canal sections and construction of new structures. Therefore to avoid this, the FMIS Sub-Projects, particularly in hills will be required to carry out an IEE and if required an EIA according to the national environmental guidelines and submitted with the feasibility report. The PCCC and PIUs will have a representative from MOPE to oversee that the national policy is followed during in _the NISP implementation. 3.2 Social Action Plans Specific actions can be summarised as follows: (a) The women farmers should be represented in WUA executive committee by at least 20%. This will be promoted in NISP through encouraging Women in.Development (WID} program similar to SMIP. (b) The management of a democratically elected WUA out of the whole user farmers, will provide an opportunity to all, irrespective of caste, creed, ethnic group, large landholder to fair and equitable distribution of available water, promoting implementation of greater social order, right and justice. (c) To complement the social development plan and objectives as mentioned above in (a) and (b), the NISP Sub-Projects feasibility study reports will be supplemented with a further Social Impact Assessment (SIA) study before construction is taken up. This is required to take remedial measures during implementation if found necessary by the SIA study. 4. - PROJECT ACCOUNTING AND FINANCIAL MANAGEMENT 4.1 Accounts and Audits To facilitate disbursements.IDA will establish in the Nepal Rastra Bank a Special Account of US$ 2.00 million after the effective date of loan Agreement and the fund will be used for project expenditures. The expenditures less than US$ 20,000 equivalent, both foreign and local, under all categories for the project implementation, will be financed through this account. All other expenditures above US$ 20,000, either may be submitted directly to !DA for payment or may be paid from Special Account. All expenditures from the Special Account will be promptly reported to IDA.
The Auditor General of Nepal is responsible for auditing all accounts. All accounts will be maintained according to the sound accounting principles and that the scope of the audit is sufficient to evaluate the economy, efficiency and effectiveness of public expenditures. For NISP implementation, DOI, OHM and DOA will maintain separate records and accounts for all project expenditures, by individual project component and subcomponent, and in accordance with appropriate accounting principles. DOI will furnish to IDA the consolidated report on the Special Account, audited by an independent auditor appointed by Auditor General of Nepal and acceptable to IDA in accordance with sound auditing principles. DOI will forward to IDA such accounts, together with the auditor's reports, within 9 months after the end of each fiscal year. The report will also include separate opinion from the auditor as to whether the disbursements made on the basis of statements of expenditure were for goods and services received and incurred for the purpose & scopes of the project. DOI will also furnish to IDA such other information concerning audits and accounts as IDA shall from time to time reasonably. request, including unaudited project accounts and financial statements for each fiscal year, duly certified by an independent auditor as to their accuracy and authenticity within six months after the end of each fiscal year. . A detailed Financial Management Plan (FMP) is given in the Attachment 15. D. MONITORING AND EVALUATION 1. WATER RESOURCES STRATEGY FORMULATION To improve water resources planning and environmental management a clear perception on water resources utilization and development is desired at the end of the Second phase of the WRSF development. To monitor the activities being carried out by NPC/NSC/NWPU, the indicators will be whether the National Water Resources Development Council is revived whether a Separate National Water Planning Unit (NWPU) is established whether at the end of two years a national water resources strategy and policy is formulated and approved and adopted by the Government. whether the sub-sectoral water related policies and water resources act is reformulated if not found to be in confirmity with the NWRS&P. 2. IRRIGATION SECTOR INFRASTRUCTURE IMPROVEMENT AND DEVELOPMENT AND INSTITUTIONAL STRENGTHENING 2.1 Rehabilitation and Development of FMISs Given the definite objective of developing efficient irrigation systems on participatory approach by DOI and irrigated agricultural extension tasks by DOA both involving actively the beneficiary farmers as their partners and in order to continuously upgrade technical skills and management capabilities of their staff, a scientific system of Monitoring and Evaluation (M&E) needs to be established under the project. Such a system must incorporate all the key processes, input and output indicators, and impact evaluation parameters for monitoring progress towards project development objectives. The following paragraphs briefly·describe the structuring of these processes and indicators.
The project will attempt to design an M&E system that will enhance the M&E tools currently adopted by the implementing agencies and the institutional arrangements meant for this purpose presently operating under these agencies. The ultimate aim of the M&E system installed under NISP should be to increase the opportunity of maintaining continuity of the M&E process that will be sustainable in the Nepalese context. For monito~ing at program level, efforts will be made to increase th.e effectiveness of the role of DADOs which will. monitor the activities of ASCs/ASSCs related fo their functions in the Sub-Projects feasibility studies at preconstruction stage and extension activities at post construction stage. Similarly the project will also emphasize building capacity of the DIOs to supervise and guide WUAs on O&M of their improved system and water management at farm level. To further support program level monitoring, the roles of Regional Agriculture Directorates (RAD), and that of Regional Irrigation Directorates (RIDs) will be clearly defined. Under the chairmanship of RAD a regional PBME committee will be setup to continually monitor the impact evaluation of completed NISP/ILC Sub-Projects. Required budget should be provided in the concerned DADOs along with the budget for extension activities for the completed Sub-Projects for which provision has been made in the project cost (DOA - Institutional Strengthening). The M&E section under RIDs will be mandated to monitor the progress of ongoing activities under the DIOs/GWFOs and will assist them in the performance evaluation of completed physical facilities at O&M stage. The DIOs will provide technical guidance to WUAs in the O&M of their completed systems. In Central level monitoring the PIC under the chairmanship of DG/D0I the DDGs/DGMs of different implementing units & agencies will be involved. The roles of these agencies in this regard will be made complementary to each other. The M&E divisions of DOI & DOA will keep track of the progress made by the project. The PIC may direct any division of either department (DOI & DOA) to carry out special studies to measure the impact of the project. The three departments (D10, DOA & OHM) within their overall monitoring framework and on the basis of indicators identified for the assessment of project progress will supervise and monitor their respective activities. They will also take init!atives to carry out needed evaluation studies. The PCO will have central role to play as far as M&E functions are concerned. It will drive all the involved agencies to timely and properly monitor the project activities as planned and safeguard the project interest using the indicators identified for the project impact monitoring. This office will have key responsibility of preparing periodical and annual reports of programs and expenditures. It will be fully involved in the mid-term review of the project. The most commonly tools to be used for M&E at different levels will be as follows: Semi annual/annual reports by DOI, DOA & OHM Audited annual financial reports Review Meeting reports ' Observation & supervision tour reports Evaluation studies reports. The key indicators for both input and output monitoring appli~able to Irrigation Sector Infrastructure • Improvement and Development component and Institutional Strengthening and Development Component for DOI, DOA, OHM & WUAs etc. are structured as summarized in Attachment 16..
2.2 Supporting Infrastructure Farm roads in the .command area, environmental/ river erosion protection works will be implemented .on demand and cost sharing principles. Viable micro-hydropower and drinking water supply from the hill canals and ground water tubewells will also be implemented by the PIUs/DIOs. Monitoring tool and indicators will be developed and used in line with the irrigation infrastructure M&E. • 2.3 Sunsari Morang-Ill Project (i) For Project Benefit Monitoring & Evaluation (PBME) surveys are proposed before and after the canals and net work improvement and development in order to establish existing field situation ·on agriculture, socio-economic and socio-institutional . aspects of . WUGs/WCC/WCCC. While conducting intensive survey, a brief impact assessment will be needed for the systems already constructed and improved during previous years. The areas to be covered during survey are inter-alia; a) Agriculture - Crop yield (cutting also), fertilizer use, cropping intensity and pattern b) Socio Economic - Income/ Expenditure c) WUG Organizations - performance, problems, constraints (ii) For the construction stage monitoring, the following key indicators will be used; a) Expenditure in each item of the contract b) Length of canals and drains constructed c) Length of tertiary and field channels constructed d) Numbers of structures constructed (iii) For canal system operation, the following key indicators will be used; a) Duration of water supply b) Amount of water supply (iv) . Institutional strengthening and capability building of staff and WUAs; a) Number of WUGs, WUA, WUACC established b) Number trainings on different subjects conducted c) Number water management trainings conducted. 3. DEPARTMENT OF HYDROLOGY AND METEOROLOGY Tools and indicators for monitoring and evaluation of the activities planned under DHM's Institutional Strengthening concerning hydrological studies is being developed by OHM. The same will be provided to the Basin-Managers to monitor the inputs and outputs indicators. The indicators include inter-alia the following: (i) Strengthen hydrological data collection-number of full fledged stream in 77 sub-basins gauging stations, rain-gauge stations and climatological stations upgraded/improved or stablished annually. (ii) Upgrade data collection, dissemination-Number of staffs trained in data system and train staff collections, collation and dissemination.
(iii) Training of staff in basin/sub-basinwised -Number of staff trained water resources potential assessment Number of pilot basin model and planning established. Besides the above monitoring tools, the following process of M&E will also be adopted for assessing the performance of the component. quarterly progress reports to be included in the main NISP report annual progress reports to be included in the main NISP report review meetings with the IDA supervision missions midterm review evaluation studies Project Completion Report (PCR) and ICR 4. DEPARTMENT OF AGRICULTURE DOA will develop monitoring and evaluation tools. This monitoring and evaluation tqol will be made available to Regional Director of Agriculture (RDA) and District Agriculture Development Office (DADO). RDA and DADO will use these tools for monitoring and evaluation of the district and ASC/ASSC program. The field level supervision basically will be carried out from DADO and ASC/ASSC. The regular supervision, monitoring and evaluation will also be done by central level personnel. The existing regional level - Agriculture Program Implementation Committee will ensure the coordination of inter agencies involved in the program. The following monitoring and evaluation tools will be commonly used at different level: Semi annual/ annual report Annual report of DOA Reyiew meeting Regional review meeting ad DOA Field observation to the project sites • • Evaluation studies
1. SUMMARY OF NISP BASE-COST ESTIMATE Infrastructure Development ( DOI ) (a) (b) (c) Irrigation Infrastructure Supporting Infrastructure Sunsari Morang Irrigation Ill Project Total of Infrastructure Development 2. Institutional Development Department of Irrigation Private Sector Strengthening Department of Hydrology & Meterology Department of Agriculture Total of Institutional Development Water Resources Strategy Total of NISP Base Cost TABLE 1 Total Amount in 1.000 Nrs. 1. INFRASTRUCTURE DEVELOPMENT (DOI) (a) IRRIGATION INFRASTRUCTURE A. INVESTMENT COST Civil Works Surface Irrigation Works (31,500 ha) Ground water Irrigation Works (8,000 ha) Turnover to Beneficiaries (2,500 ha) Participatory Joint Management Sub Total of (A) B. • Consultancy Services Feasibility studies, Invest, Design of FMISS Sub Total of (B) C. Vehicles &Transport equipments A. B. C. Four Wheel drive (39) Motorcycles (86) Bicycles (80) Horses (20) Sub Total of (C) Sub Total of Investment Cost RECURRENT COST 0 & M of Irrigation works & Buildings Incremental staff to implement NISP Vehicles & Transport equipment O & M Sub Total of Recurrent cost Total of Irrigation Infrastructure (a) Total Amount in 1,000 NRs
(b) SUPPORTING INFRASTRUCTURE INVESTMENT COST A. Civil Works 1. Farm road/Trail Farm road; surface water 27,625 Farm road; Ground Water 6,890 Farm road; Turn over to Beneficiaries 975 Farm road; Participatory Joint Management 750 Sub Total of Farm road 36,240 2. Environmental and Command Area Protection Hills, surface schemes 24,525 Terai, Surface schemes 20,250 Ground water schemes 14 730 Sub Total of Envi. & River Prote'ct 59,505 3. Rural Water Supply 7,500 4. Micro Hydropower 15,000 5. Building Regional and Districts 31,200 6. Workshop/ equip, tools & spares & dredger operation 50,000 Total of civil works 199,445 (c) SUNSARI MORANG IRRIGATION Ill PROJECT INVESTMENT COST A. (i) Land Acquisition 63,945 (ii) Economic rehab materials to PAF 25,953 B. Civil Works Preparatory works 58,580 Restoration of CMC 154,340 ID - Systems 1,314,884 Buildings 5,000 On - Farm water Management 21,740 Koshi Flood embankment 80,000 Sub Total of Civil Works (B) 1,724,442 C. Vehicles & Spares 17,660 D. Technical Assistance Engineering & Institutional 162,000 PBME Survey 4,500 Sub Total of (D) 166,500 E. Training (Institutional Development & Water Management) Total of Investment Cost RECURRENT COST General Administration Total Sunsari Morang (c) 2. INSTITUTIONAL STRENGTHENING A DEPARTMENT OF IRRIGATION ( i ) Technical Assistance INVESTMENT COST ( ii ) a) b) c) d) e) Consultants services: international Consultants service: National Equipment and Materials Vehicle & Transport equipments O&M and subsidy studies Sub total of invest cost ( i ) RECURRENT COST ( a ) General staff support & overheads and consumables Sub total of Tech. Assistance (i) Training ( DOI ) INVESTMENT COST ( 1 ) Training ( 2) Machinery, equipment & Vehicles Sub total of Training ( ii ) ( iii ) Ground Water Monitoring INVESTMENT COST a) b) c) Civil works Ground Water Equipment and Materials Training Sub total of Investment Cost - RECURRENT COST Sub total of G/W Monitoring ( iii ) 172;746.3
33,971 5.448 39,419 ( iv) On - farm Water Management ( OFWM ) INVESTMENT COST a) Consultant services 15,960 b) Staff and Farmers training 14,490 c) On-farm works and supplies 34,800 d) Transport and other equipments 6,250 Sub total of Investment Cost 71,500 RECURRENT COST a) Transport & office facilities Maintenance 6,400 b) General Staff support 11,400 c) T. A Staff support 1,800 Sub total of recurrent cost 19,600 Sub total of on-farm water mangement (iv) 91,100 ( V) MIS Support INVESTMENT COST a) Office equipment & Materials 2,702 b) Training 5,000 RECURRENT COST a) Incremental overheads (software, logistics) 2 340 Sub total of MIS Support ( v ) 10,042 Sub total of DOI strengthening (A) 506,846.3 B PRIVATE SECTOR STRENGTHENING RECURRENT COST a) Incremental Salaries and overheads 25,977.60 Service for farmer organizers 6,468.10 NGOs / CBOs overheads 6,894.00 Stationary 435.50 Sub total of Priv. Sector strengthening (B) • 39,583.20 C. DEPARTMENT OF HYDRLOGY & METEOROLOGY INVESTMENT COST a) Equipment, Vehicles & Materials 38,166 b) Civil works for Hydromet. stations 78,240 c) Constancy Services & Studies 133,830 •d) Oversea training & Study tours 8,160 Sub total of Invest Cost 258,396 RECURRENT COST a) Incremental Staff 9,585 b) Equipment & tools O&M 6,781 Sub total of Recurrent cost 16,366 Total of Hydro & Meteorology (C) 274,762 D. DEPARTMENT OF AGRICULTURE INVESTMENT COST / a) Trainings and Demonstration and BME 71,390 b) Planting & material & equipments 11,780 c;) Vehicles & equipments 12,587.50 Sub total of Investment Cost 95,757.50 RECURRENT COST a) Vehicle O&M 4,720 b) Incremental staff & overheads 1,580 Sub total of Recurrent Cost 6,300 Sub total of Dep. of Agriculture (D) - 102,057.50 3. WATER RESOURCES STRATEGY FORMULATION (WRSF) A. STUDIES G/S Pilot 5,000 Water Resources Strategy 39,000 Sub total of Water Resources Study 44,000 TABLE 2 , ANNUAL FUND REQUIREMENTS (BASE COST) SUMMARY Cost in NRs'000 Component I Sub Component Total Cost Year 1 2 3 4 5 1. INFRASTRUCTURE DEVELOPMENT(DO1) (a) Irrigation Infrastructure 1,911,520.0 169,610.7 452,179.6 593,695.3 479,036.2 216,998.2 (b) Supporting Infrastructure 199,445.0 12,852.0 51,831.0 61,754.0 45,563.0 27,445.0 (c) Sunsari Morang Irrigation Ill project 1,944,872.0 191,049.7 438,491.2 694,066.2 535,124.9 86,140.0 Sub total Infrastructure Developement 4,055,837.0 373,512.4 942,501.8 1,349,515.5 1,059,724.1 330,583.2 2. INSTITUTIONAL STRENGTHENING A. DEPARTMENT OF IRRIGATION (i) Technical Assistance 181,160.3 43,518.3 44,640.2 42,472.7 27,453.8 23,075.3 (ii) Training (DOI) 185,125.0 31,255.0 40,230.0 38,780.0 36,680.0 38,180.0 (iii) Ground Water Monitoring 39,419.0 4,461.0 8,203.0 11,666.0 9,505.5 5,583.5 (iv) On-Farm Water Management 91,100.0 21,230.0 18,380.0 20,000.0 16,600.0 14,890.0 (v} MIS Support 10,042.0 3,272.0 3,256.0 2,022.0 1,268.0 224.0 Sub total DOI 506,846.3 103,736.3 114,709.2 114,940.7 91,507.3 81,952.8 B. PRIVATE SECTOR STRENTHENING 39,583.2 4,075.0 8,150.0 12,206.0 10,225.6 4,926.6 C. DEPARTMENT OF HYDROLOGY & METEOROLOGY 274,762.0 43,276.0 77,359.0 70,831.0 54,193.0 29,103.0 D. DEPARTMENT OF AGRICULTURE 102,057.5 14,865.5 25,320.0 22,308.0 23,058.0 16,506.0 Sub total Institutional Strengthening 923,249.0 165,952.8 225,538.2 220,285.7 178,983.9 132,488.4 3. WATER RESOURCES STRETEGY FORMULATION 44,000.0 15,750.0 10,250.0 11,000.0 7,000.0 TOTAL NISP BASE COST 5,023,086.0 555,215.2 1,178,290.0 •1,580,801.2 1,245,708.0 463,071.6 FILE: SUM-BASE.XLS
LEGEND (JounJ01' R,q,c.nol Oevtlopm1nt O,s lrtC I :_oundory NISP1 •~1ocl Arco Jl.ffe, NEPAL .../ I I I "" "·., ... ,. •, , -.'"' JHAPA · ( ..._,r, .• ·v PAOJ(C 1' '""'..' wo•••• •••&0•t10k - 111 SECTOR PROJECT EPAL IRRIGATION , N PROJECT AREkS NISP IOUNDAAlfl INT[FiSlTIOU4L REGION•L OISTFilC~ H!A00UAR7ER£ Fi~GICN!:.. CISTF.1:: ,;,:;LOS ALL wt:.Tlit" SE LSC'-:.t. F<IV!:R • • NISP SUB PROJECT AREAS )US<IJ .~ ~ Oi1lric:11 wm, Sub- ProJ,c:t1 011U1t11 olu C:J'l1r1d t>, fC-IOP l NEPAL IRRIGATION SECTOR PROJECT PROJECT AREA IN THREE WESTERN REGIONS .) I ., ~ X STAGE - III BIRATNAGAR +HARINAGARA AREAS ...._____ . .____ _,,,,. SCALE kmO 5 IOKm ~~5--~~~b~~---~d;;;;J LEGEND; INTERNATIONAL BOUNDARY - · - · - SUNSARI MORANG IRRIGATION-Ill PROJECT 'P DHM (DGl Basin Office Sub· Basin INISP IMPLEMENTATION ORGANIZATION CHART I HPC National Steering Cornnittee Halional Waler Planning Unil PCO (CPCO) ._____. DOI, DOA, OHM, Coordinators Cenlre TA Team (Consu Ilanl l Regions TA Team (Consul lanl) MOWR. MOF, HPC, MOA, MOPE, MOST All DDGs/D01, DDG/DOA SMIP-111 (PM) PAC ATTACHMENr 4 (A) DOA DG DOG Plann . RAD • Since the Chairman of SMIPB is lh< Secretary of f,IOV.H, the boJ1 d c.,n , • function having most members of PCCC t-lote: Acronyms are attached. ANNEXA • ANNEXB ATTACHMENT 1 WATER RESOURCES STRATEGY FORMULATION STUDIES CONSOLIDATED PHASE-I STUDY REPORT TOR OF PHASE-II STUDY ATTACHMENT 1 Annex A NEPAL - WATER RESOURCES STRATEGY FORMULATION INTERIMPHASE CONSOLIDATED PHASE - I STUDY REPORT ATTACHMENT 1 Annex A TABLE OF CONTENTS Page No. Executive ,Summary i-x I. Introduction 1.1 Introduction 1 1.2 The Need for an Integrated Approach 1 1.3 Strategy Formulation Initiative 1 1.4 Terms of Reference for Phase I Study 2 1.5 Area of Study 2 1.6 Study Management 2 1.7 Technical Assistance 3 1.8 Phase I Study Reporting 3 II. Country Profile 2.1 Basin Member 4 2.2 Human Resources 4 2.3 Land Resources 4 2.4 Water Resources 4 2.5 Geology 6 2.6 General Economy 7 Ill. National Goal and Water Resources Policies 3.1 National Goal 8 3.2 National Wealth- the Water 8 3.3 Water Resources and subsectoral Policy 8 Drinking Water and Sanitation 9 Irrigation 9 Hydroelectric Power 9 Other Related Areas 9 3.3 Water Legislation 10 IV. Current Conditions 4.1 Introduction 11 4.2 Technical Aspect (i) Water Supply and Sanitation 11 (ii) Irrigation 13 (iii) Hydroelectric Power 15 4.3 Environmental and Health Aspects 17 4.4 Economic and Financing Aspects 18 4.5 Legal and International Aspects 20 4.6 Institutional, Human Resources and Social Aspects 22 V. Issues and Problems 5.1 Technical Aspects 24 5.2 Environmental and Health Aspects 24 5.3 Economics and Financing Aspects 25 5.4 Legal and International Aspects 25 5.5 Institutional, Human Resources and Social Aspects 25 5.6 Information Acquisition 25 5.7 Additional Issues 26 VI. Projections 6.1 Hydrology 27 6.2 River Management 27 6.3 Water Supply and Sanitation 27 6.4 Irrigation 28 6.5 Hydroelectric Power 29 VII. Concluding Statement 31 Appendix -1 32 Appendix - II 33 EXECUTIVE SUMMARY Introduction Kingdom of Nepal's most valued national wealth is her Water Resources. Optimum benefits can only be realized if it is developed through a integrated multi-sectoral approach. In the past, the perceived water development needs of various sectors of econa,my have been addressed separately by different governmental agencies. Although much has been achieved by those efforts, an urgent and inescapable need has been felt for a more comprehensive approach to ensure sustainability and to avoid conflicts among users of the water. Strategy Formulation Initiative Realizing the need for a holistic approach to the development of its water resources, His Majesty's Government of Nepal has recently undertaken to formulate an overall strategy. The task has been assigned to a National Steering Committee representing all the relevant ministries. The task is. proposed to be conducted in two phases: • Phase I, based on the national goals and policies, will involve an assessment of potentialities, current conditions of development (uses), identification of opportunities and constraints, and identification of issues requiring attention and actions. Phase II will aim at the identification of practical options to address the prioritized issues, preparation of a comprehensive national water resources policy, if necessary, modify the sub-sector policies (viz. water supply, irrigation, hydroelectric power), review regulatory instruments to ensure their compatibility and consistency· with the strategy and establish (or strengthen) a central water resources agency within the Government. The Strategy will also lead to produce a set of medium to long term (3 - 30 years) action plans to achieve sectoral as well as national development goals. For the performance of the Phase I study, the National Steering Committee formed a National Experts Team represented by the experts of various disciplines. These experts undertook the studies covering various aspects viz. (i) technical dealing with hydrology, hydrogeology, river management, water supply, irrigation and hydroelectric power; (ii) environment and health; (iii) economic and finance; (iv) legal and international and (v) institutional, human resources and social. The present report is based on these studies of national experts and deliberations of the national workshop. Water Resources Surface Water Resources The Nepalese river system, consisting of a dense network of more than 6000 rivers, has a total drainage areas of 194,471 square ·kilometers. Some 19% drainage lies in Tibet of China and 5% in India. Rivers get waters from rainfall. Annual average rainfall received in the country is 1814 mm and more than 75% rainfall occurs during monsoon season (June to September). Major river basins, with their origin in Himalayas (including in Tibet Region), account for around 80% run-off. Medium river basins carry around 8% runoff. Southern (Siwalik) rivers are seasonal with little flow during non-monsoon periods. Nepal rivers carry annually a run-off of 7112 cubic meters per second. Out of which some 17% flows in from China and 7% drains in the frontier river Mahakali from India. It is equivalent to a total runoff of 224 billion cubic meters. Full benefits can only be realized by changing (regulating) their flow regimes. Numerous valley configurations in lower reaches are favourable for creation of large reservoirs by constructing storage dams.
The snow and glaciers in Nepal Himalayas, spread over a large areas of 15,000 sq. km. form natural reservoir and account for the higher perennial flows during dry season in major river systems. The Nepalese rivers contribute 41% to the total run-off and 71% to the Jean flow of the Ganges, the common river system for Bangladesh, India and Nepal. Groundwater Resources The Terai is rich with groundwater which could be exploited at a low investment. The dynamic availability from this natural reservoir has been assessed at 8.8 billion cubic meters. The annual recharge is estimated to vary between 124 to 685 mm.. Per Capita availability and Water Stress level Total potential of water resources is 233 billion cubic meters. It works out to a per capita availability of 11000 cubic meters compared to 7400 cubic meters - the global average supply of renewable fresh water. bn the temporal basis, the availability during monsoon season is 8800 cubic meters and for the rest of seasons, the availability is 2700 cubic meters compared to the threshold level of 1700 cubic meters for water stress. By year 2027, thirty years from now, the availability of water will decline to 4400 cubic meters during monsoon period and 1400 cubic meters, well below the threshold level of water stress, during rest of the year. These availability are based on the assumption that the country will be able to regulate all the waters which will call for a massive investment in terms human resources, technology and money. On the spatial basis, perhaps many areas of the country would be already under water stress conditions, however for the people of the Terai, the groundwater would provide be a respite. Water Resources Development - a role to reckon More than 80 percent of the currently established hydroelectric potential is banked in. the storage (dam) schemes. These schemes also have large reservoirs for storing over 70 billion cubic meters waters, equivalent to 40 percent of the run-off generated during the monsoon. Such huge containment of the flood inducing waters, on one hand, not only provide security and protection from the losses of lives and substantial damages to the property , on the other hand it also capability to enhance by more than two and half fold the lean flow of the Ganges and thus substantially improving the socio-economic well beings in the co-existing downstream countries. Currently, as experts claim, Nepal have been making use of around three percent of her wa_ters_. One fifth of the available water, if regulated, is estimated to be sufficient to provide waters to all irrigable agriculture land, especially in the Terai. Similarly, half of the hydroelectric potential from the schemes identified till to-date would fulfill the energy need of upto middle of the 21st century. Thus, the high potential for generation of electrical energy and the appreciable flow regulation that can be acquired from the development of Nepal's water resources indicates its important role in the regional context. • National Development Goal The general goals of water resources development are: (i) to satisfy the domestic needs for sufficient and safe water including for sanitation for improving the health and well-being of the people; (ii} to provide irrigation waters to enhance and stabilize agricultural production for the purpose of ensuring the food security of the nation; (iii) to generate hydropower to satisfy the energy requirements of agriculture and industry, and to export electricity; '
(iv) to allow by means of navigation the connection to the seaport; and (v) to protect and preserve Nepal's unique environment and to sustain the biodiversity of its natural habitats. Current Conditions The implementation of projects in th_e water resources sector of Nepal is in some ways more difficult and expensive than in many other countries. Most of the equipment and construction materials for projects need to be imported. Within the country itself, the rudimentary physical infrastructure also imposes additional difficulties. Despite these known constraints, Nepal in water resources development have made achievement. Water Supplies Currently 60% of the rural population (11.3 million) have access to piped drinking water supply facility, though the fraction receiving water directly to their homes is much lower. For majority of the population in remote areas, water is still need to be carried from some distance. This is a particularly arduous and time-consuming task, usually performed by women. Participation of the beneficiaries in the water supply is low and slow. Recently, His Majesty's Government has made it mandatory for the establishment of Water Users Committee (WUC) and its involvement in project implementation and operation and maintenance. People also need to be made aware about their participation and be provided with skills. In case urban areas, population benefited has continuously declined in the proportion to 71 % in ._, ·:. FY 1996 from 83% in 1980. All the urban areas are likely to be under water stress conditions due to ..: , increasing migration of population and growing economic activities. Particularly in Kathmandu Valley, the water supply has become critically scarce. Augmentation of water supply has not taken place since beginning of the 1990s. Current per capita consumption of 1400 cubic meters is well below the water stress level of 1700 cubic meters. Severe scarcity is predicted in near future. Kathmandu's water supply is being managed with the conjunctive use of surface and groundwater sources. Groundwater use is extensive and its extraction has been more than three times the safe extraction capacity (of 15 million litres) which led to literally mining of groundwater. Such unsustainable extraction of groundwater is causing concern for land subsidence similar to those evident in many Asian cities (e.g. Bangkok). Non-revenue water (NRW) or losses is found to be as high 47% while for Kathmandu Valley it is put at 41 %. The NRW is comprised of widespread leakages in the water supply system, unsatisfactory metering and recording and widespread pilferages. Currently the emphasis is or need to be on increasing the accessibility to water supply. The result is, thus, less attention to water quality. In urban areas, even the chlorinated water gets polluted due to the ingress of polluted water through leaks in the distribution system. The water quality in the upland region is ensured by the flowing waters of the springs and streams while in the Terai areas it is from the tubewells. No information is yet available about the water uses by the industries. In Kathmandu Valley, the carpet industries alone have been using around 10 percent of the groundwater extraction. Studies have claimed that upto 75% of the water used by the industries reappeared as wastewater which ultimately returned, untreated, to the near-by storm drains, rivers or open fields. Fewer than 20 percent of the people have adequate sanitation facilities (i. e., access to latrines). In rural areas the defecation on roadsides, river banks, in side forest and agricultural fields is common: In 1ll urban centers, the use of individual septic tanks is the only alternative in the absence of the sewerage systems. Within the Kathmandu Valley, the sanitary conditions are environment health hazardous. The drains are open storm water drains where solid wastes are dumped and septic tank effluents discharged directly. The sewerage systems and sewage treatment plants are often non-functional and grossly inadequate. The ultimate outfall of all the drains are the city's once mast sacred rivers - the Bagmati and Bishnumati, which are now highly polluted and become converted as open drains. The Kathmandu Valley, which houses number of world heritage popular with tourist, has now been labeled to be the most environmentally polluted and health hazardous city. Irrigation Development Total cultivable area of the country is around 2.18 million hectares, of which some 1.766 million ha could be brought under irrigation. At present 846,000 ha of command areas are in the Terai and 214,000 ha in the Hills are provided with the infrastructures for irrigation. Out of this 854,000 ha is under surface (run-of-river) irrigation systems and 206,000 ha are irrigated by use of groundwater. That leaves nearly 700,000 ha yet to be developed. Of the areas under surface irrigation systems, however, some 65 percent of the developed command areas could receive irrigation during monsoon and only 35% areas have year round irrigation. Inadequate tertiary and quaternary canals coupled with unsatisfactory maintenance are the causes for current low utilization of the irrigation infrastructures. Thus the 35 percent area that could be brought under irrigation with relative ease. These irrigation systems are run-of-rive configurations, hence waters are mostly available during the monsoon season and least available when needed during the dry season. Effort to provide year round irrigation to 65% of the areas with the conjunctive use of groundwater in short- term and by implementing storage schemes in longer-term requires immediate consideration in plan formulation The ideal water storage projects,. particularly in medium rivers would be such that could also provide electric power and flood control conjunctively. Of the area under groundwater irrigation, 75 percent is under shallow tube-well schemes and some 25 percent areas under deep tube-wells systems. The utilization of the wells are generally low between 20 to 35 percent of the capacity. Although a shallow tubewell could irrigate about 6.5 ha, currently most of the wells serve about 2.5 ha. High operating costs particularly with respect to deep tubewells are also reported. Current high electricity tariff and the frequent non-supply have substantially increased the operating costs. These pumps are normally operated during off-peak hours. The low (fragmented) land holdings by the farmers also contribute to the poor utilization. Farmers' communities are managing surface irrigation systems for 590,000 hectares and utilizing groundwater through operation of shallow tubewells for 173,000 ha. Over 22,000 surface systems, owned by the farmers, have traditional types of infrastructures built with indigenous (low cost) technology using local materials such as timber, brushwood and. boulders. Rest 31 and 16 percent areas are under administered surface and well(deep) irrigation systems. To increase the involvement of farmers not only in management and operation and maintenance of irrigation systems but also in the project implementation, Irrigation Policy has been promulgated by HIS MAJESTY'S GOVERNMENT. Current water tariff is designed to recover the operation and maintenance costs. Poor water charge collection is the result of ad hoc water allocation and irregularity and non-measurement of the delivery to the farmers. Farmers have been complaining for non-delivery of waters in compliance with the international agreements. IV Hydropower The techno-economic hydroelectric potential of the country is 25,000 MW with annual energy production of 120,000 gwhr. Out which, some 80% of which would be available from the storage schemes. Study of the medium size basins, which are strategically important from Nepal's interest than the major river basins, for meeting the national needs of electricity and year round irrigation, has not yet done. A number of small hydroelectric schemes, of 250 to 8,000 ~ sizes, have also been identified and their total capacity is 66 MW. To facilitate the local private entrepreneurs an inventory of 210 micropower schemes, of 2 to 70 Kw sizes, has also been prepared for 21 remote districts. Their combined capacity is 4,000 ~- To date, Nepal has developed just 254 megawatts (MW) of its vast hydropower potential. Although in the closing current Eighth Plan (1992-97) only one 12 MW Jhimruck Hydroelectric Plant was commissioned, six hydro projects with total 280 MW are under various stages of construction. Among them, the 144 MW Kali Gandaki Project (2001) is largest scheme under public sector and the 36 MW Bhotekoshi Project (2001) under private sector investments. The recent System Planning Study and Investment Program (April,· 1996)•ranked these proposed generation projects. Since all the hydro plants/projects are run-of-river configuration, the capacity (KW) availability of these plants would be decreased when the system demand is maximum in winter/spring seasons however substantial amount of Y:' surplus would available at the time of lowest system demand. There is a need to use these analytic for finding a least cost sequence (r:nix) of hydrogeneration projects appropriate in meeting the system needs and characteristics rather than for ranking the chosen projects. • • Contribution of electricity in the national energy consumption is still less than 1%. Per Capita electricity consumption-was 40 kwhr in 1996 compared to 34 kwhr 1992. The annual growth was down to .,,,.;. 4.7 % between 1992-96 compared to 11.2 % during 1981-91. It reflects the current state of stagnation in electric supply expansion in the country. Around 12.5 % of the population has access to electricity. While majority of the population in urban areas have electric services, only 4.5% of the rural population are likely to be getting electricity. In remote areas, with 55% of the population, the number of such people is dismayingly small. In FY 1996, 470 000 household were the registered customers. Their specific consumption has declined, annually by 4%, to 708 kwhr in 1996 from 858 kwhr in 1991. The tariff, during the same period, has increased yearly at 21% to US 8.5 from 3.30 cents per kwhr which very well compares to US 4.6 cents for India, 6.5 cents for UK and US and 12-13 cents for Germany and Japan. The Interconnected Nepal Power System, serving all the urban and the Terai areas, has a capacity of 294 MW, out of which 247 MW (peaking capability being 220 MW) is hydrogeneration. Supply deficit is prevalent since 1992 and is being met by import (upto 50 MW) from the India and buy back arrangement with the. industrial consumers. Most of the industries and commercial enterprises (hotels) have been operating their captive plants. Utilization of all hydro plants is currently high around 80%, however, the revenue sales have remained unchanged at 72% since almosta decade. It works out to a non-revenue component (losses) of 28% and if a self-imposed consumption of 1% is deducted, the national system losses would be around 27%. In Kathmandu Valley, which accounts for 45% of the national consumption, some 35% of the similar losses is unaccounted. It shows that the on-going, since a decade, investment on loss reduction has not been effective. • V Rural electrification has lagged behind. Most of the earlier efforts in extending electricity to rural areas were limited to the peripheries of the urban centers and generating stations. Current electrification programmes are being implemented with the assistance from bilateral and multilateral external agencies. The Asian Development Bank funding has been dubbed the rural electrification with the electrifying the tubewell irrigation pumps, however, the desired coordination among the concerned agencies and beneficiaries was lacking. Besides, for the benefit of rural people, His Majesty's Government has so far transferred the loans to Nepal Electricity Authority at 1% interest and without any risk on foreign exchange. lnspite of availability of such no-cost financing, the pace of electrification is sluggish. Private participation in hydropower generation is showing promise. The legal framework and administrative procedures are in place although viewed as inadequate. Currently two local and foreign joint ventures are implementing two hydroelectric schemes with total capacity of 96 MW at an investment of US$ 220 million. The specific cost (US$ 2.7 million per MW) of the hydroprojects promoted by the private foreign developers is seen to be as high as those implemented by public sector. Care is needed, thus, to ensure that the further expansion of private enterprise in the subsector, while adhering to commercial principles, should also enhance the public welfare and bring in the higher efficiency, a popular criticism on public sector. Inda-Nepal Co-operation on Electric Power Exchange, currently agreed for 50 MW, is continuing since early 1972. Low level and non-synchronous operations of the transboundary interconnectio_ns have been the major constraints for not achieving the higher level of transactions,. Both the Governments have recently. agreed to increase the quantum of exchange(upto 150 MW) and to establish necessary interconnection. Subsequently a new interconnection identified in the western part (Nepalgunj) has not yet implemented which otherwise would have facilitated withdrawal of increased supply from India to meet the current deficits. Environment and Health Inadequate and poor quality of water supply and sanitation facilities, ·especially in urban areas, are tt)e main cause of detoriation of the environment health of city and her dwellers. A visual tour of the Kathmandu is sufficient to conclude that the (holy) rivers and streams are highly polluted with city sewerage and industrial wastes. City drainage system is choked with wastes which exacberate the spread of stinking pollution, still worst during rainy days, due to the overflowing on the streets. Groundwaters tested at the well point sources of some deep wells (up to 225m in depth) in the Terai have shown signs of fecal contamination. The lack·of service of piped water and drainage facilities are cause of poor health, drudgery and economic loss. Water-borne diseases are rampant and the percentage of patients with water borne diseases had accounted for 35 percent of annual referrals to ~istrict hospitals. Providing uncontaminated potable water is rather an serious issue while realizing the national goal - increasing the coverage of water supply. Nepal's hydropower potential is mostly contained in the storage schemes and its exploitation will have, thus, a pronounced environment and .socio-economic impacts at local and regional level and sometimes extending beyond the national boundary. On the gain side, the storage of high monsoon waters would, on one hand, greatly mitigate (prevent) the flood damages to life and property in downstream reaches extending beyond the national boundary and on the other hand would also substantially increase the availability of waters during dry season and thus enhancing the civil and economic life. of the people in downstream riparian. On the negative side, however, the consequences include submergence of scarce land in remote areas, inundation and extinction of forest ecosystems and diminution of bio-diversity. In addition, it would also cause the displacement of river valley population and threaten their social and cultural heritage. The inherent natural causes of high rates of run-off, erosion and sediment transport, exacberated by human management or mismanagement of the land causing deforestation and soil degradation in the watershed areas, have been eroding Nepal's rich but fragile environment. The success and failure of water resources development depends upon the conditions of their watersheds - the sources for waters. The Master Plan for the Forestry (1988) has already identified the deteriorating conditions of watershed based on vi the ecological zones of the country. The investments required for their conservation of the watershed need tp be mandatory and adequately incorporated in all water resources schemes. Sincere and holistic approach to environment impact assessment (EIA) would ensure the sustainabilty of the development rather than treating EIA as a rhetorical exercise to justify the chosen project. The recently enacted Environment Conservation Act-1996 should be complemented with the national and sectoral impact assessment guidelines and processing mechanism for effective vigilant monitoring· and policing. Similarly guidelines for assessment of social impact to be rendered by the water resources schemes and the associated physical infrastructures is also yet to be formulated. Inadequate assessment and mitigation measures have often resulted in abandoning the projects. Economic and Financial Aspects The water resources sector, during 1980s and 1990-95, has accounted for 27% of the total public sector expenditure. Corresponding subsectoral expenditures for water supply and sanitation, irrigation and electricity were 12%, 34% and 54% compared to 22%, 41% and 37% respectively. The declining expenditure in electric subsector also reflects the prevalence of supply deficiency due to non-expansion of generating facilities. The foreign assistance in the water sector has also marginally declined to 64 percent in 1990-95 compared to 68 percent in 1980-90 of the total expenditure. There has been a sharp· increase of assistance in water supply and irrigation sectors but declined in ·electricity sector. In case of grant aid component, it has almost remained at 24% for water sector since 1980s, however a decl_ine has occurred in electricity subsector and an increasing trend in other two subsectors. In other words, the electricity sector, now onward, would have to rely for loan flows as the external support agencies are showing more concerns for the social sectors. Starting from the Ninth National Plan (1997-2002), Nepal will need to allocate, every year, an investment of over US$ 400 million for the development of water sector with hydropower alone claiming for over 53% share during the next fifteen years. Given the imperative tasks to achieve the desired role of water in the development of the Nepalese economy, the projected level of investment need to be maintained or even increased while ensuring their maximum effectiveness. This is possible because the on-going hydroelectric generation prqgramme will account annually for US$ 200 million in the Ninth Plan. In past, the utilization of the external assistance had been low and could hardly exceed 50 percent. To enhance, thus, the utilization of .the projected investment, in particular of the foreign assistance, the capacity of the sectoral executing agencies would have to be concurrently strengthened. Nepal's need for foreign assistance is growing especially for the development of water sector. It has already peaked 80% for electricity sector and an increasing trend for irrigation and water supply sub- sectors is already evident In recent years, the bilateral and multilateral ESAs are shifting their assistance from traditional (physical infrastructural) areas to social services and poverty alleviation programme. Consequently the private sector are also rapidly entering in financing of the physical infrastructures such as energy, communication and roads spurred by the government's liberalized economic policies. Nepal has, thus, already started making effort in creating an enabling environment for alluring the private investments. Private sector investment is indeed seen to be increasing especially in hydropower, in recent years, thanks to the timely Hydropower Development Policy and the Electricity Act 1992. Financing with soft-loan credits in combination with bilateral grants or let alone bilateral grants with preponderance of foreign technology have bearing on already higher capital costs of the projects. This is especially the case with hydropower sub-sector. Thus, a major issue is whether the country should continue to net soft lending from the multilateral institutions and bilateral assistance or promote the private sector with commercial lending with an expectation for the lower costs due to high management efficiency. However the higher specific costs, comparable with those under public sector investment, of the on-going hydropower projects implemented by the foreign private sectors defies the expectations. Nevertheless, the . country should continue and if possible expand its liberal economic policy and open economic climate while introducing appropriate mechanism to regulate the private investments. vu From the private sector view point, the irrigation and water supply sub-sectors, at present, is not likely to be of much interest. Currently over 70% of the command areas (1.06 million ha) are under farmers' managed irrigation systems. Similarly the water supply services are required for economically weak rural population and their participation is indispensable. Both sectors are, thus, not likely to be commercially viable. These two sub-sectors will hence continue to remain under the public sector domain. For the same argument, the supply of electricity to the rural areas to supplement the domestic and industrial energy need, the public sector will have to continue to shoulder the responsibility but should aim for beneficiary participation as exist in irrigation and water supply sectors. The Government has been providing subsidies in various forms to the individuals and communities in rural areas for meeting their needs for water supply, irrigation and electrical energy. There is need to assess the continuity and effectiveness of these subsidies vis-a-vis the high specific costs of schemes from .the beneficiaries interest and the Government. Legal and International Aspects Both Riparian and Licence concepts of water rights are in vogue in the country. The Prior Appropriation and Riparian Water Right has their origins in Mulki Ain whereas the Right through Licensing, which creates the authority or concession from the Government, comes from both Water Resources Act and Electricity Act depending upon the intent of licence. Similarly the specific enactment viz. Forest Act, National Park and Wild Life Conservation Act, Soil and Watershed Conservation Act etc. also restrict certain activities on rivers, streams or other watercourses. Currently the drinking water use does not have the subordinate legislation. The irrigation comes under the jurisdictions of both Mulki Ain and Water Resources Act. Similarly a subordinate regulation, replacing the prevailing irrigation Regulation 2045 framed under the now repealed Canal, Electricity and related Water Resources Act 2024, has not yet formulated to avoid conflicts and adverse consequences and to harmonize with the Water Resources Act 2049. The increasing exploitation of hydropower, governed exclusively by the Electricity Act 2049, is likely to have a pronounced impact, if not conflicts, with other various uses falling under the purview in Water Resources Act 2049. An urgency, thus, has been felt to establish a correspondence and harmony between these two Acts so that multi-sectoral benefits from this unitary resources are not minimised. Similar review is also needed with respect to other Acts. Pu.blic institutions established, within the background of current ambiguous or inconsistent general legal framework, for the sectoral development of water resources are also inadequately armed with precisely defined and transparent mandates and mechanism for establishing workable inter-agency co-ordination among them. For alluring, motivating and facilitating the private sector in the development of water resources,· in particular the hydroelectricity, the ·regulatory instruments, in vogue, are being claimed to be inadequate. Leveraging instruments concerning legal, financial and administrative aspects are need fo made specific and transparent. While formulating such instruments, there is a need to incorporate suitable provisions which make mandatory the local partnership (consultancy, construction contracting, equity partnership etc.) with domestic private sector. The international dimension of water resources in the country has not yet been unequivocally settled. There is a significant lack of harmonized activities for the utilisation of shared water resources for mutual benefits.. • 1 International Aspects Nepal territory accounts for 14% of the basin area and her waters make up 41 % of the total run-off and 71 % of the lean (dry) flows in the Ganges - the common river system for Bangladesh, India and Nepal. viii Currently the country, as experts claim, has been utilizing around three percent of her waters with remaining flowing through lower riparian countries. Huge amount of waters and the unique geography has provided opportunity to develop many techno-economically attractive water resources schemes for electricity in ample quantity and capable of regulating upto 40% of the hazard-prone monsoon flows. There is also a need to establish by Nepal her right over the incremental flows during the dry seasons resulting from the investments on the storage schemes. The country, while meeting her needs in particular of the hydroelectric power, could share, taking the advantages of the diversities and complementarities, with the regional members. However·associated with these huge potential benefits including those arising out of the change in the flow regimes by the potential storage schemes, the environmental and social consequences to the country need to be considered with full perspective. The potential regulation of waters flowing from the Nepal also provides a very promising prospect for development of navigation facilities to Indian seaport (Calcutta) in Ganges. The recent Treaty on the Integrated· Development of the Mahakali River (Pancheshwar Project in particular) between India and Nepal and the Ganges Water Sharing Accord between Bangladesh and India has created an conducive atmosphere for bilateral and regional co-operation. The on-going effort for a ·Quadrangle Economic Co-operation, as proposed by Nepal or the South Asia Development Triangle as initiated by World Bank has good promise. At a recent summit meeting of the Head of the Governments have agreed to bring the proposed economic co-operation within the framework (charter) of the Southeast Asia Association for Regional Co-operation (SMRC). Institutional Aspect The agencies armed with independent incoherent sectoral legal instruments actually administering Nepal's water resources appear to be rather fragmented and uncoordinated. Moreover current vertical modus operandi i.e. a top-to-bottom chain of command is seen to impede direct horizontal coordination or cooperation among par~llel or complementary departments and Ministries. Besides, there are also district level agencies who~function as the implementors of policy and stay at some negotiated point of the community-managed services. These agencies tend to view the involvement of beneficiary and community as the power sharer or competitors. The National Water Development Council, chaired by the Prime Minister, is in overall charge of Nepal's water resources development policy and has not been functioning as desired. Its work could be facilitated if it were supported by a permanent secretariat in the National Planning Commission or the Water Energy Commission, to serve the Council in national-level water resources planning and budgeting. At present, the Ministry of Water Resources has been assigned with the secretariat function. Given the Government's new and flexible policy to encourage autonomous grass-roots initiatives and communal organizations, as well as non-government organizations (NGOs) and private enterprise involvement, some of the existing structures may have to be modified. In the context of examining the entire set of policies regarding water resources development, it would be necessary to assess what changes could made and required in the public sector administration and management of its water resources so as to achieve the national goals effectively. Nepal is a multi-ethnic and multi-caste society with a wide range of local traditions and cultures among population which the water resources planners need to reckon these realities while launching any water related programs. Women folks, who are most concerned with the water supply, sanitation and hygiene of the family and society, are not encouraged to· participate in water related programs besides other development activities. • lX Issues The first overarching issue is the need for integrated planning based on a clearly conceived and articulated long-term vision of the realities, both internal and external, associated with water resources. Optimum benefits can only be realized with multisector approach indispensable for the balanced development of the country's only water wealth. Water is a unitary source, the development of which should be based on the integrated and equitable development of each river basin as the fundamental planning entity. The second issue is to ensure the compatibility and consistency of national institutions, economic, financial, and private sector policies with one comprehensive water resources policy incorporating those formulated by the concerned line ministries. Apart from these broad major issues, the subsector specific issues to be considered in planning the integrated development of water resources in the Kingdom of Nepal are dealt in the accompanying chapters. X · I. INTRODUCTION 1.1 Introduction ATTACHMENT 1 Annex A The Kingdom of Nepal is endowed with ample water resources. It is the key resources which, if developed with a multi-sectoral approach, could support the development of the country's agrarian economy and hence improve the living standard of the Nepalese people comparable to its regional neighbours. 1.2 The Need for an Integrated Approach Clearly, the balanced development of the country's water resources requires a multidisciplinary and multi-sectoral approach. Parties involved in the task of planning and implementing the development of water resources include government institutions, funding agencies, academic and professional groups, social and environmental action groups, and - of course - the other stakeholders that is to say, the entire population but especially farmers engaged in irrigation and manufacturers engaged in various industries. Moreover, because Nepal's water resources are shared by several groups within each river basin, as well as by riparian nations, the intra- and international implications of each action affecting water quantity and quality must also be taken into account. In the past, the perceived water development needs (such as the supply of potable water, irrigation facility and electrical energy) of various sectors of the Nepal's economy have been addressed separately and in a piecemeal manner by different government institutions, with or without the assistance of external support agencies. Although much has been achieved by those efforts, there is now an urgent and inescapable •need for a more comprehensive approach. To date, however, no national water resources development program encompassing all sectors of the economy has been formulated, let alone implemented, Effective and sustainable development of water resources can best be achieved only in the context of a comprehensive strategy, which takes into account all related and interactive factors affecting the country's overall progress. The formulation of a national water resources policy and associated·strategy. to implement it will enable Nepal to lay the foundation for sustainable management of its water resources through integrated multi-sectoral river-basin planning. This would also provide the needed guidance to bilateral and multilateral donors in directing development assistance to Nepal and bilateral and regional co-operation in the utilization of the water resources in a more coordinated fashion consistent with the country's national long- and medium-term goals. 1.3 Strategy Formulation Initiative Recognizing the urgency of the exploitation of resource as the lead infrastructure to support the •overall socio-economic development, His Majesty's Government has commenced the study for the formulation of a comprehensive strategy for water resources management. The study is proposed to be undertaken in two stages. • 1 of 35 The Phase I, based on the national goals and policies, will involve an assessment of potentialities, current conditions of development (uses), identification of opportunities and constraints, and identification of issues requiring attention and actions. The Phase II will aim at the identification of practical options to address the prioritized issues, preparation of a comprehensive national water resources policy, if necessary, modify the sub-sector (viz. water supply - rural and urban, irrigation, hydroelectric power) policies; formulate regulatory instruments to ensure their compatibility and consistency with the strategy and establish (or strengthen) a central water resources agency within the Government. The Strategy will also lead to production of a set of medium to long term (3 - 30 years) action programmes to achieve sectoral as well as national development goals. 1.4 Terms ofReference for Phase I Study They are following: (i) Review of development objective and policy; (ii) Assessment of availability of water resources in term~ of both quantity and quality covering .surface water and groundwater sources; (iii) Assessment of water resources development and use including an evaluation of existing infrastructure; (iv) Identification, evaluation and ranking of the main issues faced in the water resources sector, including, but not limited to, issues of policy, planning, technology, insUtutional structure, the environment, funding and international relations; and (v) Projections of future water supply and demand, and the presentation of alternative scenarios for the future water balance. 1.5 Area of Study The study covered the following areas of concern. (i) Technical Aspect covering hydrology and hydro-geology, river management, water supply and sanitation, irrigation and hydropower; (ii) Environmental and Health Aspect; (iii) Economic and Financial Aspect (iv) Legal and International Aspect; and—v) Institutional, Human Resources development and Social Aspect 1.6 Study Management National Steering Committee . His Majesty's Government has established a National Steering Committee with the representation of the following key stakeholding Ministries. 1. National Planning Commission 2. Ministry of Housing and Physical Planning 3. Ministry of Water Resources 4. Ministry of Agriculture 5. Ministry of Industry 2 of35 6. Ministry of Forest 7. Ministry of Population and Environment 8. Ministry of Finance The Committee is chaired by the Member (Physical Infrastructure and Water Resources) of National Planning Commission. The Secretary _of Ministry of Water Resources is the member-secretary. National Expert Team The Steering Committee, in collaboration with the World Bank, formed a National Expert Team (NET) by engaging various individual national experts to perform the Phase I Study. Annex 1 lists the members of the NET. Consultative Groups The NSC also constituted five Consultative Groups to guide the NET members. Annex 2 lists the members of the Consultative Group and NET. Expatriate Advisors Occasional services of the expatriates were also provided by the World Bank during the study. 1.7 Technical Assistance The World Bank/lDA has provided technical assistance for undertaking the Study. 1.8 Phase I Study Reporting The Phase I began since 1996 April. The study by the individual national experts commenced since July and most of their study reports were available in early 1997. A consolidated draft report containing the synopsis and issues was prepared by an expatriate consultant based on the reportings of the National Experts. A national workshop was also convened in April 17-18, 1997 to inform about the Phase I Study to the various stakeholders representatives from the public life, local and international NGOs, government agencies, public sector undertakings, and international -bilateral and multilateral community and also to seek their comments and suggestions. The current draft is the revised version of the first draft produced incorporating the deliberations of the various stakeholders in the national workshop and also the various comments, observations and suggestions of the World Bank (staff/consultants), Chairmen of the Consultative Groups and the national •experts. 3 of 35 II. COUNTRY PROFILE 2.1 Basin Member Nepal along with India and Bangladesh are the basin members of their common river - the Ganges and environment (ecosystem). Nepal forms the headpond and Bangladesh the lowermost exit point before Ganges discharging into the Bay of Bengal. Part of the watershed basin of the Ganges also lies in the territory of the Autonomous Region of Tibet of the People's Republic of China and drains through Nepal. 2.2 Human Resources The population has grown, at 2.08 % per annum, to 21.1 million in 1996 compared to 18.49 million in 1991 June. Out of which about 47% of the population reside in the Terai and other 45% and 8% in Hills and Mountains respectively. - According to 1991 census, total households was 3.33 million with national family size of 5.6 persons. The labour force, for year 1996, is estimated to be 10.7 million for the age group 15-59 years compared to 13.3 million for 10-59 years age. Female population is 10.5 million which accounts 51 % of the labour force. The female literacy is 12% compared to 32% at the national level. At present, 91% of the people live in 3995 village development councils (VDCs) with population varying between 3600 to 4000. Remaining 9% people are in the 36 urban centers. The annual growth of urban population is around 5.7%. The Kathmandu Valley, with three municipalities, accounts for 40% of the urban population. 2.3 Land Resources The land mass is 14.72 million hectares and about 2.64 million ha, 18% of land, is under cultivation. The irrigable land is 1.766 million ha out of which 1.337 million ha (76%) is in the Terai arid the remaining 0.429 million ha is in the river valleys, tars and leveled terraces in Hills and Mountains. The national average family holding is 0.96 ha. In the Terai, the holding is 1.26 ha and in Hills and Mountains it is 0.77 and 0.68 ha. 2.4 Water Resources Climate Rainfall varies between 1000 to 4000 mm with an annual average of 1814 mm: More than 75% rainfall occurs during four months of monsoon season between months of June to September. River System Nepal has a dense network of more than 6000 rivers. These Nepalese river system is divided into seventeen river basins with a total drainage areas of 194,471 square kilometers. The drainage lying outside the country are 19% or 37,440 sq. km. in China and 5% or 9,850 sq. km. in India. .4 of35 Karnali, Sapta Gandaki and Sapta Koshi are the three major river basins with their origin in Himalayas (including in Tibet Region) and account for around 80% of the run-off. The Babai, West Rapti, Bagmati, Kamala and Kankai are the medium river basins accounting for 8% of the run-off. The Southern rivers, with origins in the Siwalik Hill Range, are Bering, Balan, Khutti, Pathraiya, Lal Bakaiya, Ratu, Sirsia, Manusmara and Banganga. These rivers are seasonal with little flow during non-monsoon periods. Mahakali and Mechi rivers form the eastern and western frontiers with India. Surface Water Resources Nepalese rivers carry annually a run-off of 7112 cubic meters per second. Of which drainage in China contribute 1210 cubic meters per second i.e. 17% and the drainage of the frontier Mahakali river in India add 501 cubic meters per second i.e. 7% of the run-off. It is equivalent to a total runoff of 224 billion cubic meters. The flow during the monsoon accounts for upto 78%. •The full benefits, thus, can only be realized by altering their flow regimes i.e. creating storage facilities. The valley configurations in lower reaches are favourable for construction of storage dams schemes with large reservoirs viz. Karnali (Chisapani), Gandaki (Kali Gandaki and Burhi Gandaki) and Sapta Koshi (Barahkhestra). The snow and glaciers in Himalayas, occupying 15,000 sq. km., are also the natural reservoir with huge amount of water. They contribute for the perennial and, in particular, the sustained higher flows during dry season. Quantitative measure of this resources is not yet available. The Nepalese rivers contribute 41% to the total run-off and 71% to the lean flow of the Ganges, the major sub-basin in the Ganga-Brahmaputra-Meghana (GBM) drainage system (basin). Groundwater Resources The Terai is rich ·with groundwater which could be exploited at a low investment. The annual recharge is estimated to range from 124 to 685 mm. Various studies have estimated the availability between 12 to 5.8 billion cubic meters, however, based on the measures of seasonal fluctuations Qfwater . tables in the shallow tubewells, the dynamic availability of from this natural reservoir has been assessed to be 8.8 billion cubic meters. In Kathmandu Valley, the annual groundwater recharge is estimated to be around 4.75 to 14.6 million cubic meters. The current withdrawal of upto 18 million cubic meters, much higher than the rechargeable capacity, is alarming. Per Capita availability and Water Stress level Total potential of water resources is 233 billion cubic meters. It works out to a per capita availability of 11000 cubic meters which very well compares with the global average supply of renewable fresh water of about 7400 cubic meters. On the temporal basis, the availability during monsoon season is 8800 cubic meters however for the rest of the non-monsoon seasons, the availability is 2700 cubic meters which compares well with the threshold level of 1700 cubic meters for water stress. However, thirty years from now in year 2027, the availability of water will decline to 4400 cubic meters during high flows and 1400 cubic meters, well below the water stress level, during rest of the year. These availability are based on the assumption that the country will be able to regulate the waters which will call for a massive investment in terms human resources, technology and money. On the spatial basis, many areas of the country would be found under water stress conditions which however in case of the Terai, it will contribute upto half of the water stress quantity. 5 of 35 2.5 Geology Nepal occupies one third of the highest and youngest mountains of the Himalayan Mountain System. The geological and geomorphic processes are here still active. Owing to rugged topography, fragile geological conditions, high seismic active, soft and thin soil cover and high intensity rainfall in short wet period, these mountains are vulnerable to land slides, erosion, sediment transport and deposition and other mass wasting phenomena. The country is also known to lie in a seismic active zone, which is due to active tectonic northward movement of the Indian Plate against the Eurasian Plate and is the main force for the birth of Himalayas. The continuing motion, at 5 cm per annum, induces widespread deformation and faulting and thrusting of the rock giving rise to height of Himalayas. Such movement has been causing deformation along the (i) Main Central Thrust (MCT), also known as Mahabharat Thrust, in the southern part separating the lesser Himalayas from higher Himalayas, (ii) Main Boundary Thrust (MBT) separating the lesser Himalayas from sub-Himalayas of Churia Range and (iii) Main Frontal Thrust (MFT) system south of Churia Range. Three types of active faults have been identified. They are: (i) normal faults appearing in the southern slope of the Siwalik hills showing a downthrow to the south; (ii) active thrust faults along the MBT and MFT; and (iii) the faults to the north of MBT including the MBT and MCT. All of the identified active faults have recorded the repeatedly occurring tectonic movements and the associated seismic events. There is a high probability that they will be active in future to produce earthquakes. A number of historical great earthquakes of 1255 AD, 1408 AD and 1681 AD are recorded and the damage caused by them are well documented. The most recent earthquakes with magnitude greater than 6.5 in Richter scale are Great Bihar-Nepal earthquake of 1934 January, Bajhang earthquake of 1980 July. and Udayapur earthquake of 1988 August. Many of the identified large scale hydroelectric power and irrigation projects are located close to or at the sites of active faults, mainly the Main Boundary Thrust (MBT) and the southern extension of the Main Central Thrust. • The National Seismological Centre, through two regional centres at Kathmandu and Surkhet (Birendranagar), is constantly monitoring, since 1985, the earthquake events of magnitudes of upto 2 Richter scale. There is no station of accelerometers to record the acceleration occurring from the earthquakes which are also required for the design of water resources and other structures. The Ganges and Bramhaputra rivers are among the largest sediment carriers in the world. They together, with 104 million sq.km. of watershed areas, contribute 12 percent of the sediment flux in the oceans while contributing less than 3% of the water flux. They carry annually 1.6 and 0.8 billion tonnes of suspended sediments. The Higher Himalayas and the Churia ranges are known to contribute most of the sediment load in the Nepalese rivers. The on-going deforestation in Churia Hills, where rocks are of loosely consolidated sediments derived from the erosion in the Himalayan rocks, has aggravated the problem. The problem of sediment load in Nepalese (Himalayan) rivers is mainly the result of geological process and thus poses a challenge to be faced in the planning and implementation of water resources infrastructures (facilities). A recent study found that a sediment deposition of about 10 million cubic meters, 85% of the designed dead storage level in reservoir of the Kulekhani Hydroelectric Station has already occurred in a short period of 15 years. The study also concluded that most of the sediment was brought in during the widespread landslides·and flood which occurred March-December 1993. It is feared that the purpose (utility) of the country's only peaking station would soon be lost resulting in the serious peaking capacity. Similarly high sediments are flowing into the main irrigation canals of Koshi, Gandak and Mahakali irrigation systems during monsoon which have affected their irrigating capabilities and also thus accounting for higher operation and maintenance costs. 6 of35 2.6 General Economy The national production (GDP) of the country is valued at US$ 4.5 (or Rs. 250) billion for the FY 1996, which is higher by 13.81 percent compared to previous year's estimate. It is equivalent to US$ 215 per capita. The_ overall price change is estimated to be 7.36 percent. The contribution of agriculture (including fisheries and forest) in GDP is 40 percent and of non- agriculture sector viz. industries, commerce, services and others accounted for 60 percent. In FY 1985, the corresponding contributions were 51 and 49 percent respectively. The overall change in GDP in real terms is estimated to be 6.14% during FY 1996. The corresponding changes were 5.41 % and 6.66% for the agriculture and non-agriculture sectors. At FY 1985 constant prices, the overall GDP growth is seen to be around 5% for the period 1985-96 with the agriculture and non-agriculture sectors showing a growth of 3% and 6.77% respectively. The agriculture sector provides employment to over 80% of the population. The agriculture growth is seen to be little higher than the population growth. Annual food grain production per capita has also been in decline from 296 kg in 1975 to 266 kg in 1995. Around half of the population are estimated to be below the subsistence living conditions. 7 of35 Ill. NATIONAL GOAL AND WATER RESOURCES POLICIES Development Planning in Nepal started, with the First Five Year National Plan (1956-61) since 1956. Till to date seven more national Plans have been implemented including the current Eighth Five Year Plan which. is nearing completion by July 1997. 3.1 National Goal These are: (i) Sustainable higher growth in the national production i.e. gross domestic product (GDP) which will.. meet -the essential needs of the majority of -the economically weaker populace and increase opportunity of employment; (ii) Poverty Alleviation and fulfillment of the basic needs, and, (iii) Regional balance and national integration. 3.2 National Wealth - the Water The nation's total renewable water wealth is 233 billion cubic meters. Various studies have established that more than 80% of the currently known hydroelectric potential is banked in the reservoir schemes. These schemes also have combined capability of storing over 70 billion cubic meters equivalent to 40% of the run-off generated during the four months of monsoon. Such huge containment of the flood inducing waters, on one hand, not only provide security and protection from the losses of lives and substantial damages to the property. And, on the other hand, they also increase by more than two and half fold the lean.flow of the Ganges which thus result in substantially enhancing the availability of waters for human consumption, agriculture production, industry and other water dependent activities in all the downstream co-existing countries. One fifth of the available water, if regulated, is estimated to be sufficient to provide waters to all irrigable agriculture land, especially in the Terai . Similarly, half of the hydroelectric potential from the schemes identified till to-date would fulfill the energy need of upto middle of the 21st century. Thus, the high potential for generation ofelectrical energy and the appreciable flow regulation that can be acquired from the development of Nepal's water resources indicate its important role in the regional context. •• 3.3 Water Resources and subsectoral Policy The objective and strategy for the development of water resources have been formulated on the above context which are presented below. Policy on Water Resources The policy, enunciated first time in the Fifth Plan (1975-80), relates to development of water resources for the: (i) Extension of irrigation facilities; and (ii} Meeting the electric energy requirement of the agriculture and industry. The sub-sectoral policies are given below. 8 of 35 Drinking Water and Sanitation 1. To provide drinking water facility to 72% of the population in consonance with th~ target of providing such facility to the entire population by year 2002 AD; 2. To provide basic knowledge of sanitation and sanitary facilities to maximum number of people along with cleaning and conservation of environment. HMG/N has, in 1994, also issued the " National Sanitation Policy". It defines sanitation •as "all activities which improve and sustain hygiene in order to raise the quality of life and health of an individual". The policy requires "improvement in the sanitation and control of any activity which endangers healthy and productive life of the people and conservation of the environment." Irrigation 1. To increase agriculture production using appropriate technologies suited to varying geo- physical and climatic conditions and causing minimum negative impact on the environment; 2. To increase agriculture production and productivity by improving the management of the existing irrigation systems to bring about increased reliability in irrigation; and 3. To provide irrigation facility by implementing technically, cost effective and environmentally sustainable projects with farmers' participation. • HMG/Nepal _has brought out the Irrigation Policy 2049 which has laid greater emphasis on the involvement of the people and the government taking the complementary role in the development of irrigation facilities. The policy makes mandatory the turning over (TO) of the ownership of small irrigation systems and for the joint management with Water Users Association (WUAs) of the medium and larger schemes. Hydroelectric Power 1. To meet the energy requirement for agriculture, industrial and domestic uses; 2. To implement hydroelectric schemes to earn revenue; and 3. To establish regional balance in generation and distribution. His Majesty's Government has promulgated Hydroelectric Development Policy 2049 and Electricity Act, 2049, with a· view to attract the private sector, both national and foreign, in the development of hydropower. The most important aspect of the Act is that it brings both the public and private sector undertaking at equal term and partnership. • Other Related Areas River Control and Management Various aspects of the river management are spread under different sectors viz. irrigation for river training works, hydrology and meteorology for flood forecasting and forest for watershed management. Under the irrigation sector, objective of the river control works is to check the damage to land .and settlements and the erosion of cultivable land resulting from eroding river banks and floods by involving local people's participation in a systematic manner. Under agriculture, forestry and land reform, the objective is to control natural calamities such as erosion, floods and landslides, bring about improvement in the water recharge and the hydrological balance, and soil and watershed management programmes through mobilizing the local resources and participation of people. 9 of35 3.4 Water Legislation The first Act of the country that addressed the issue of water resources management is the National Code Act, 'Muluki Ain', 2026. It has recognized the water rights priority for irrigation The Canal, Electricity and Related Water Resources Act 2024, was another important legal instrument to give absolute recognition to the State's ownership and control of all natural water resources. It is replaced and repealed by the Water Resources Act 2049. _The Water Resources Act, 2049 is the most recent legislation for regulating the exploitation and management of the nation's water wealth, whether surface water, groundwater or in whatsoever form. The legislation has established the priority in following order for the use or exploitation of water resources. 1. Drinking water and domestic uses 3. Agricultural uses 5. Cottage industry, industrial enterprises and mining uses 7. Recreational uses 2. Irrigation 4. Hydroelectricity 6. Navigation 8. Other Uses The Electricity Act, 2049 regulates the public arid private sector's participation in the exploitation of the (hydro)electric sector. • 10 of 35 IV. CURRENT CONDITIONS 4.1 Introduction This chapter, covering following aspects of the water resources, has been prepared based on the of the studies of the members of the national experts team and expatriate consultant. Deliberations in the national workshop and various comments, observations and suggestions on the reporting have been alos incorporated. (i) Technical Aspect covering hydrology and hydro-geology, river management, water supply and sanitation, irrigation and hydropower; (ii) Environmental and Health Aspect; (iii) Economic and Financial Aspect; (iv) Legal and International Aspect ; and (v) Institutional, Human Resources development and Social Aspect· 4.2 Technical Aspect (i) Water Supply and Sanitation All district headquarters have access to piped water supply system. Around 61 % of the population (12.92 million) have access to water supply facility. In the Hills and Mountains, streams and springs are the sources of water supply whereas in the Terai shallow and deep tubewells are extensively used. Currently 60% of the rural population (11.3 million) have access to piped drinking water supply facility, though the fraction receiving water directly to their homes is much lower. In particularly, for majority of the population in remote areas, where water is not provided, it is carried from some distance. This is a particularly arduous and. time-consuming task, usually performed by women. The quality of the water supplied or collected is unsatisfactory in many places. In rural areas, most of the water supply and sanitation works are implemented by the Government. Involvement or participation of the local people in the water supply and sanitation works is lacking or slow. Recently, HMG/N has made it mandatory the establishment of Water Users Committee (WUC) and its involvement in project implementation and operation and maintenance. Operation and maintenance of the completed water supply systems are being gradually handed over to the beneficiaries (WUCs). Transparent mechanism to involve and transfer the water supply system is inadequate. For providing financial assistance, currently the water supply systems have been put into three categories. First category systems, serving less than 5000 population or having distribution pipelines less than 7 km, receive technical assistance but no financial contribution. Second category systems, serving district h~adquarters, having more than 7 km distribution pipelines and serving more than 5000 population with gravity flow schemes receive full operation/maintenance cosf in first year and 50% in the third year. Third category systems using pumping systems receive similar assistance including cost of energy for pumping. In urban areas, since the beginning of the Sixth Plan (1980-85), the total population benefited has continuously declined, in the proportion, from 83% in FY 1980 to 71 % in FY 1996. All the urban areas are under water stress conditions due to increasing migration of population. and economic activities. The supply, i.n general, is intermittent. Of the 36 municipalities, the water supply and sanitation of the thirteen municipal areas including the Kathmandu and Lalitpur is under the management of the public sector undertaking- the Nepal Water Supply and Sewerage Corporation (NWSSC). For other municipalities (smaller towns), the responsibility is with the government viz. Department of Water Supply and Sewerage (DWSS). 11 of 35 For the Kathmandu Valley, the water supply, both for drinking and commercial purposes, has become critically scarce. Augmentation of water supply has not taken place since beginning of the 1990s. The per capita consumption of 1400 cubic meters is well below the water stress level of 1700 cubic meters. Severe scarcity is predicted in the near future. Water supply, in Kathmandu Valley, is being managed with the conjunctive use of surface and groundwater sources. Estimated consumption, in 1995, was 130 million liters per day (MLD). There are deficits of upto 20 and 70 MLD during wet and dry seasons. In the dry season, the supply from surface sources (streams and rivers) reduces to 60% while use of groundwater sharply increases to 40%. Extraction of groundwater (50 MLD) has been more than three times the recommended extraction capacity (15 million litres). Due to increase in built-up areas, groundwater recharge is reduced due to rerouting of the natural drainage. This has, thus, led to literally mining of groundwater. Such unsustainable extraction of groundwater is causing concern for land subsidence similar to those evident in many Asian cities (e.g. Bangkok). Non-revenue water (NRW) or losses is found to be as high 47% while for Kathmandu Valley it is put at 41 %. The NRW is comprised of leakages in the water supply system, unsatisfactory metering and recording and widespread pilferages. Most of the system cannot meet the design capacity because of inadequate maintenance. This, in turn, has resulted in clogged wells, leaking pipes, valves, tanks and pumps being unserviceable requiring, sometimes, total rehabilitation. Currently the emphasis is placed on increasing the accessibility to water supply. Attention is, thus, not paid to water quality. The water quality in the upland region is ensured by the flowing waters of the springs and streams while in the Terai areas it is by the tubewells. In urban areas, the chlorinated water gets polluted due to the ingress of polluted water through leaks in the distribution system. In case of water uses by the industries, no information is yet available. In Kathmandu Valley, the carpet industries have been using around 10 percent of the groundwater extraction. Fewer than 20 percent of the people have adequate sanitation facilities (i. e. , access to latrines). In rural areas the defecation on roadsides, river banks, in side forest and agricultural fields is common. In urban centres, the use of individual sceptic tanks is the only alternative in the absence of the sewerage systems. Within the Kathmandu Valley, the sanitary conditions are hazardous. The existing sewerage systems and sewage treatment plants are often non-functional and grossly inadequate. A visual tour of the Valley is sufficient to conclude that rivers, drains and streams are highly polluted with sewage and industrial wastes. Moreover, the drains in the urban areas are open storm water drains where solid wastes are dumped and septic tank effluents discharged. The ultimate outfall of all the drains are rivers or rivulets which are highly polluted. Most of the city's open sewerage drains are also choked which causes overflowing of the solid and liquid wastes on the city streets especially during rains. Some recent studies have observed that about 55% to 75% of the water consumed by the industries reappeared as wastewater which ultimately returned, untreated, to the near-by rivers. In Kathmandu Valley, 76% of the industrial wastewater is generated by the carpet industries. The volumes of daily solid waste generation in Kathmandu Valley is over 300 tons, mostly composed of organic solid waste (about 66%). A recent study. reported that there were 42,000 cubic meters of solid waste along the banks of the (holy) rivers, the Bagmati (Teku) and Bishnumati, causing environmental health problems. The Kathmandu, which houses number of world heritages popular with tourist, has now been labeled to be the most environmentally polluted and health hazardous city. Another most recent alarming issue is the dumping of hazardous and infectious wastes of hospitals and nursing homes. The incinerators which the public hospitals are occasionally used. Even the raw liquid wastes are directly discharged to (open) drains. 12 of 35 One of the main problem is to find the dumping location for wastes because of the strong protests from the communities. Most of the plastics and reusable materials like bottles, metals etc. are daily picked up by scavengers who are helping, at no cost, the municipality by reducing the waste volume. Nevertheless, the Government has levied a tax on the reusable materials ! A study (1991) had identified 175 out of about 40Q0 registered industries through out the country that are pollution prone. Another study (1994) has concluded that about 50% of industries are in the Kathmandu Valley. These polluting industries are cement, leather and tanning, soap and chemicals, sugar and khandsari, brewery and distillery, marble and magnesite quarrying etc. Consideration for shifting some of the industries out of the Kathmandu Valley seems to be urgent. (ii) _ Irrigation Of the estimated total 1,766,000 hectares that could be brought under irrigation, some 1,060,000 hectares are already developed for irrigation (i.e., provided with the irrigation infrastructure). Of the latter figure, about 80 percent or 854,000 ha are under the surface irrigation systems and the balance 20 percent or 206,000 ha is irrigated using the groundwater. Considering the availability in ample quantity of groundwater and lower cost for development, the utilization so far is less than 10 percent. Farmers' communities are managing irrigation systems for around 72 percent or 763,000 hectares of the existing irrigated land. Of which 590,000 ha are under 22,000 surface irrigation systems in the Terai. Most of these systems have traditional types of infrastructures built with indigenous (low cost) . technology using local materials such as timber, brushwood and boulders. In Hills and Mountains, the entire 214,000 ha is being managed by the farmers. Besides, these farmers are also irrigating 173,000 he! by utilizing groundwater through operation shallow tubewells. Rest 28 and 16 percent of the heactarages are under government administered surface and groundwater (deep tubwell) irrigation systems. In the Terai, there are still over 700,000 ha land yet to be brought under irrigation. In case of areas in Hills and Mountains, it is estimated that only one third of the remaining 214,000 ha could be brought under irrigation and the rest will have to remain dependent upon the rain-waters. In the Terai, the investment cost per ha is Rs. 150,000 for developing surface irrigation system, Rs 120,000 for deep tubewells (including expense for electrification and roads) and Rs 20,000 for shallow tubewells. In hill districts, the investment required is still high. These investment costs are relatively very high when compared to. those in neighbouring country, the India. Immediate effort should be aimed at the introduction of irrigation systems using extensively the grounwaters in the Terai. Surface Irrigation System All surface irrigation systems are run-of-river configuration. Water availability is substantially reduced during winter which results in reduced irrigation services in the command areas. In the Terai about 40% of the area are under year round irrigation while in Hills it is around 50%. Inadequate tertiary and quaternary canals coupled with unsatisfactory maintenance are the causes for current low utilization of the existing irrigation infrastructures. In totality around 35% of the total command areas could receive year round irrigation and the remaining 65% during monsoon only. That leaves some 35 percent of the developed area could be brought under irrigation with relative ease. Effort to provide year round irrigation, in short-term, to 65% of the areas with the conjunctive use of groundwater .and in longer-term, by implementing storage schemes requires immediate consideration. Current water tariff is based on the cost recovery of the operation and maintenance. Poor collection of tariffs is the result of ad hoc water allocation and irregularity and non-measurement of the delivery of waters to the farmers. Moreover, it also results in frequent disputes between assessors and farmers over the payment of water charges. Besides there also exists a significant proportion of so-called "unaccounted fdr water'' (UFW) which results from (i) physical losses due to seepage from (unlined) canals and (ii) failure to record wastage or illicit use of water (i.e., poor supervision). 13 of 35 Groundwater Irrigation At present, of the area under groundwater irrigation, 75 percent is under shallow tube-well schemes managed by farmers and some 25 percent areas are being served by deep tube-wells systems managed by the government agency. Experiences with some groundwater projects viz., the Bhairahawa-Lumbini, Narayani and Irrigation Line of Credit Project (ILCP) show that the area irrigated is 95% during the monsoon and 40% in winter seasons. No such information is available for irrigation from shallow tubewells managed by the farmers. Various studies on the operation of the shallow and deep tubewell pumps showed mixed results nevertheless the utilization are generally low varying between 20 to 35 percent of the designated capacity. Although a shallow tubewell could irrigate about 6.5 ha, currently most of the wells serve about 2.5 ha. Fragmented (small) land holdings by the farmers have also contributed to the poor utilization. High operating costs particularly with respect to deep tubewells are also reported. High electricity tariff and frequent non-supply have substantially increased the operating costs of the pumps which are normally operated during off-peak hours. His Majesty's Government provides a subsidy of 40% on the cost of shallow tubewells and pumps in case of individual and 75% for group ownership. Other Considerations Overall irrigation efficiency is also as low as 30-40 percent even in well managed systems. Cropping intensity and yield are also low. According to the FAQ records, the yields of the major crops- the paddy rice and wheat increased marginally from 1940 kgs and 1230 kgs per hectares in 1963 to 2277 kgs and 1340 kgs per ha in 1993 respectively. Interesting to note that the wheat yield in Nepal is only 57 percent of that obtained in India. Guaranteeing year round irrigation through the properly designed and managed irrigation systems can double, as experts claim, the present yields. With the insurance of • irrigation, the other inputs (including optimal fertilization, soil management, pest control and improved varieties) would then only become effective for realization of higher productivity. All such inputs, however, must also be affordable and of proven benefit if they are to be adopted by farmers. Modern on-farm water management still lags in Nepal. The notion still prevails that irrigation development consists entirely of engineering works to supply water to the land. Little attention is given to optimizing the mode, amount and schedule of water application to specific crops considering soil and climate conditions. By ·transferring the tasks of operation, maintenance, and rehabilitation of irrigation systems to organized users' associations, government agencies shou.Id seek to change their role from implementors to facilitators. Thus, the implementation of Irrigation Policy - 1992, which aims at organizing the beneficiaries into Water Users' Associations and based on the principle of equitable sharing of the tasks and costs of operating and maintaining the system, is required to be accelerated. In addition, before handing over to the farmers' association, the physical infrastructures of the administered irrigation systems should be improved for deficiencies. Moreover, in case of irrigation system under deep tubewells, the Government will also need to arrange for the appropriate tubewell operating schedules and determine appropriate electricity tariff its own public sector undertaking. There is also a need for providing to the farmers the training and incentives, both social and economic, to assume the responsibility of operation, maintenance and rehabilitation of (small and medium scale) irrigation systems. Similarly, the farmers should also be encouraged and involved in the joint management of the larger schemes. In recent years, the conflicts among the irrigation beneficiaries (users) for waters and between irrigation and electricity and water supply for use of water courses are frequently reported. The settlement of most conflicts, in the lack of effective regulatory mechanism, are currently based on ad hoc understandings. 14 of 35 Water availability some irrigation systems are also affected by non-compliance of international agreements viz. Koshi and Gandak. • (iii)__ Hydroelectric Power According to current knowledge the techno-economic hydroelectric potential of the country is 25,000 MW with annual energy production of 120,000 gwhr. Most, 85%, of the potential would only be available from the reservoir schemes. And, these reservoir schemes have also capability of regulating over 30 billion cubic meters i.e. 14% of the total annual run off. Assessment of the medium size basins, which are strategically important for Nepal in meeting the needs of (peaking) electricity and year round irrigation, has not.yet been done. Thirty three small hydroelectric schemes, each of 250 to 8,000 K>M sizes, have already been identified. Their total capacity is 66 MW. Similarly, for alluring local private entrepreneurs in 21 districts of the remote areas, an inventory of 210 micro schemes, each of 2 to 70 K>Af sizes, has also been prepared, Sum capacity of these schemes is around 4,000 K>M. Four decades of planning exercises could only add 250 MW, and mostly during· 1980s. Trishuli- Devighat (36 MW), Kulekhani (92 MW), and Marsyangdi (69 MW) are the major hydroelectric stations. Although in the current Eighth Plan only one 12 MW Jhimruck Hydroelectric Plant was commissioned, six hydro projects with total 280 MW are under various stages of construction. Among them, the 144 MW Kali Gandaki Project is largest scheme under public sector and the 36 MW Bhotekoshi under private sector investments. Per capita energy consumed in 1995 is around 324 koe. Contribution of electricity in the national energy consumption is still less than 1%. Per Capita electricity consumption was 40 kwhr in 1996 compared to 34 kwhr 1992. The annual growth was down to 4.7 % between 1992-96 compared to 11.2 % during 1981-91. It reflects the current state of stagnation in electric supply expansion in the country. As of July 1996, around 12.5 % of the population has access to electricity. While majority of the population in urban areas have electric services, about 4.5% of the rural population are likely to be getting electricity. In remote areas, with 55% of the population, the number of people with electric services is dismayingly small. In FY 1996, only 470 000 household were the registered customers. Their specific consumption has declined, annually by 4%, to 708 kwhr in 1996 from 858 kwhr in 1991. However, the tariff, during the same period, has been raised annually by 21% from US 3.30 to 8.5 cents per kwhr compared to 4.6 cents for India, 6.5 cents for UK and USA and 12-13 cents for Germany and Japan. The Interconnected Nepal Power System, serving all the urban and the Terai rural areas, has a generating capacity of 294 MW out of which 247 MW is hydrogeneration. Supply deficit became evident since 1992. The 1995 peak load of 275 MW, including 6 MW of interrupted load, was met, thanks to good monsoon, by capacity generation from the hydroelectric stations, expensive diesel plants and import from the India. In addition, the industrial consumers also supplied. 5 MW during peak. The industries and commercial enterprises (hotels) •have been operating their captive plants. Currently, the utilization factor of all hydro plants is high around 80%. However, the revenue utilization of total supply have remained constant at 72% since a decade. It works out to a non-revenue component (losses) of 28% and if a self-imposed consumption of 1% is deducted, the national system losses would be around 27%. In Kathmandu Valley, which accounts for 45% of total national consumption, the losses are found to be over 35%. It showed that the on-going programme since a decade on loss reduction has not been effective. At present, about 35 small hydroelectric plants, of capacity ranging from 20 to 2000 K>Af, are in operation in the remote regions. Their total capacity is about 12 MW with energy generation of 0.5 gwhr for FY 1995, less than 1% of the total public supply. A few of them are nearing capacity use. Currently two small schemes of 200 KW (US $ 1.64 million) and 500 KW (US$ 1.4 million) in the remote districts of Dolpa and Kalikot are underconstruction. In addition, 340 nos. of add-on and stand-alone micropower 15 of 35 plants, mostly with capacity of less than 10 KW are also being operated by individual entrepreneurs. The sum capacity of these plants is 1 800 KW. About 8,000 of the families are estimated to be benefiting. These micropower plants, with capacity upto 100 KW, receive subsidy of 50-75% from the government. Rural electrification has lagged behind. Most of the earlier efforts, since early 1980s, in extending electricity to rural areas were limited to the peripheries of the urban centers. Electrification has been extended to over 1000 villages under bilateral (India, Japan, Finland and Norway) and multilateral (Asian Deveiopment Bank) assistance. The electrification under AsDB/Seventh Project has been clubbed together with the electrification of around 5,500 shallow tubewell pumps for irrigation, however, the desired coordination among the concerned agencies and beneficiaries was lacking to utilize the investment. Also for the benefit of rural people, His. Majesty's' Government has transferred the AsDB loans to Nepal Electricity Authority at 1% interest and without any foreign exchange risk. lnspite of such financial incentive, the public sector undertaking has yet to realize or assume its obligation to provide electricity in the interest of majority of the population of the country. Currently, almost all the existing and under-construction hydro plants/projects are run-of-river configuration. The capacity (KW) availability of these plants is sharply reduced in winter when the demand is highest and on the other hand substantial amount of surplus of both capacity and energy is available during monsoon when the demand is at its lowest. NEA's own system expansion study has indicated that the capacity available from the on-going projects would all be evacuated by •2002, within a year of commissioning of the Kali Gandaki. Beyond the year 2000, the annual capacity addition will be more than 60 MW. Apart from increasing the country's generating capacity, there is a need to upgrade the national transmission grid currently with 132 KV as its highest operating voltage. The center-eastern portion of the grid is loaded to its capacity while the western portions are under-utilized. The Nepal Electricity Authority (NEA), since 1987, has started studies to aid implementation of a "least cost" generation expansion program. The recent System Planning Study and Investment Program (April, 1996) ranked the on-going generation projects. There is need to use such analytical study effectively for selection of appropriate generation mix to meet the system load rather than justifying the (chosen) project(s). A further study is being performed to identify and evaluate the feasibility of medium- scale hydroelectric projects suitable for private and public sector development. The approach taken in the study is innovative in integrating social and environmental considerations, beside the technical and economic aspects in planning power sector expansion. The participation of private sector in hydropower generation is showing promise. The legal framework and administrative procedures are well in place. Nepal Electricity Authority has also leased out to local private operators the management of some small hydropower plants in remote areas. Currently two independent producers viz. one with both foreign and local public sector developers and the second with both local and foreign private joint ventures are likely to add 100 MW at an investment of US$ 220 million by year 2001. The specific cost of the hydroprojects being implemented by the private foreign developers is also seen to be high at US$ 2.70 million per MW as of those schemes implemented by public sector. Care should, thus, need to be taken to ensure that the further expansion of private enterprise in the electricity subsector, while adhering to commercial principles,. should also enhance the public welfare and bring in .the higher efficiency, a criticism on public sector. Inda-Nepal Co-operation on Electric Power Exchange is continuing since early 1972. Currently all the transactions are limited to supplying electricity to frontier areas. Majority of interconnections are at 33 KV except two at 132 KV levels. Low level of transboundary interconnections and their non-synchronous operation are the major constraints for enhancing the transactions. That is why the current transactions· has not yet achieved the agr~ed level of 50 MW. Both the Governments of India and Nepal have recently agreed to increase the quantum of exchange and also identify transmission line interconnection for this purpose. A new 132 KV interconnection chosen in the western part·(Nepalgunj) has not yet established. The frontier States of India could also derive large benefit from the comparatively advantageous hydroelectricity which Nepal can amply produce and exchange. Both countries have also made agreement to conduct detailed studies for implementation of Chisapani (Karnali) Multipurpose Project, Pancheshwar 16 of 35 (Mahakali) Multipurpose Project and Sapta Kasi Multipurpose Project. Nepal has already completed the feasibility study of Chisapani (Karnali) with World Bank credit and India's participation. Another Pancheshwar Project (6480 MW) on the frontier Mahakali River is now being taken up under the recent Treaty on the Integrated Development of the Mahakali River (February 1996). Nepal has yet to get, since July 1992, her annual share of 20 million gwhr, recently increased to 70 million gwhr under the Treaty, from the Tanakpur Plant (120 MW) in the downstream of Pancheshwar Project. Following the recent Electric Power Trade Agreement (June 1997), the Indian market has been made accessible to the private sector, in particular seen to be alluring the Indian developers, and opening a new avenue for the exploitation of the Nepal's hydroelectric potential. • 4.3 Environmental and Health Aspects Inadequate and poor quality of water supply and sanitation facilities, especially in urban areas, are the main cause of detoriation of the environment health of the city and her dwellers. A visual tour of the Kathmandu Valley is sufficient to conclude that the (holy) rivers and streams are highly polluted with sewerage and industrial wastes. City drainage system is choked with wastes which exacberate the spread of stinking pollution, still worst during rainy days, due to the overflowing on the streets. Defecation on roadsides, drains, river banks and vegetable fields is common. Various studies have indicated that the chemical quality of most of the water is within WHO guidelines. Nevertheless, the bacteriological contamination is found to be high. Groundwaters tested at the well point sources of some deep wells (up to 225m in depth) in some important metros in the Terai have shown signs of fecal contamination ranging from 2 to 440 E-coli colonies per 100 ml of water. An in-depth study and monitoring of the deep aquifers is urgent. Many people of the Kathmandu Valley filter and/or boil water for drinking and a household on average expend upto 30% of the water tariff monthly. This is an indication of willingness to pay more for a health safe water supply. In remote areas, the lack of service of piped water is the main cause of poor health, drudgery and economic loss. Providing uncontaminated potable water is rather a serious issue while realizing the national goal - increasing the coverage of water supply. . Reports of water borne diseases is regular features every year. Water-borne. diseases are rampant and the percentage of patients with water borne diseases had accounted for 35 percent of annual referrals to district hospitals. Most seriously affected are children, whose health and education are thereby impaired. Ensuring the equitable availability of water, misuse or overuse of chemical fertilisers and pesticides and provision of adequate drainage to check the salinity are some issues related to the environment considerations associated with the irrigation. Nepal's hydropower potential is mostly contained in the storage schemes and their exploitation will have a pronounced impacts both on the environment and socio-economic life of the people. On the positive side, the storage of waters would not only substantially dampen the flood intensity and thus prevent damages to life and property in downstream reaches extending beyond the national boundary while also substantially increasing the availability of waters during dry season and thus enhancing the civil and economic life of the people in downstream riparian. On the negative side, however, the consequences include submergence of scarce land in remote areas, inundation and extinction of forest ecosystems and diminution of bio-diversity. Besides, it would cause the displacement of river valley population and threaten their social and cultural heritage. Large storage schemes (e.g. Chisapani and Pancheshwar Projects) might, as some scientists have claimed, induce seismic disturbances.· • The inherent natural causes of high rates of run-off, erosion and sediment transport,· exacberated by human. management or mismanagement of the land causing deforestation and soil degradation in the watershed areas, have been eroding Nepal's rich but fragile environment. The consequences affect not only 17 of 35. water resources for human use but also native ecosystems and their biological diversity at times extending beyond the national boundary. The watersheds are the primary water bodies formed by the rivers and lakes. The success and failure of water resources development depend upon the conditions of their watersheds - the sources for waters. The Master Plan for the Forestry (1988) has already identified the deteriorating conditions of watershed based on the ecological zones of the country. The investments required for their conservation measurers in watershed have to be made mandatory and adequately incorporated in all water resources schemes. Among the many aspects of river-basin development, one that demands special consideration is the potential impact on Nepal's wetlands. Located in flood plains and low-lying basins, wetlands are characterized by a typically rich biotic community of plants and animals, including migratory birds. As such, wetlands are particularly vulnerable to deprivation. of water that might result from upstream diversions and from the contamination of water supplies with chemical residues as well as animal and human wastes. The Government has delineated several areas to be preserved as national parks, where native flora and fauna .are protected against human encroachment. Such areas must be of sufficient size to be self-sustaining biologically and where possible they should be enlarged. Few pristine habitats remain in Nepal. Those that do remain must be preserved and sections that are disturbed should be restored. Natural ecosystems have intrinsic value. They also offer values to society as sources of spiritual inspiration and· even as attractions to the growing and remunerative pursuit of ecotourism. Thus the natural environment can be a tangible as well as abstract asset, especially in Nepal with its absolutely unique natural endowment. Sincere and holistic approach to environment impact assessment—EIA) would ensure the sustainabilty of the development rather than treating EIA as a rhetorical exercise to justify the selection. The recently enacted Environment Conservation Act-1996 should be complemented with the sectoral impact assessment guidelines and processing mechanism for effective vigilant monitoring and policing. Currently there does not exist equally important social impact assessment (SIA) guidelines to evaluate people's concerns on their life and society rendered by the development of water resources schemes and the associated physical infrastructures. There exists some provisions laid down in the Electricity Regulation and has been made a prerequisite for obtaining the licence for development electricity projects. Inadequate assessment and mitigation measures have often resulted in abandoning the projects (e.g. Arun 3 HEP). Participation of the people, non-governmental organisations and private sector should be encouraged. The role of the media and media related persons in creating the awareness among the people also need to be recognised and supported by the Government. There is also urgemcy for the institutional capacity building of the lead agency and promotion of research and development activities. Nepal is a signatory of the many environment relc;1ted international conventions and treaties. In view· of the increasing global concerns about the environment and social impacts associated with the development of natural resources, international financial supports are now increasingly available for environmental action. To enlist such support, Nepal should participate in international initiatives and strive to apply international norms, treaties and rules regarding the protection of ecosystems and biodiversity, and the prevention of pollution. Just as no development could ignore environmental considerations, no environmental action can in practice be considered in isolation from economic considerations. Thus, for example, soil conservation . and watershed protection can greatly benefit downstream hydropower and irrigation projects. The two sets of considerations, however, may not operate on the same time scale. Economists and engineers typically set their time horizon at a few years or, at most, decades. Environmentalists often look beyond, toward future generations. The two points of view must be reconciled through dialogue and cooperation. 18 of 35 4.4 Economic and Financing Aspects Water resources is capital intensive sector and thus the development, particularly for realizing the principal hydroelectric be.nefit, will draw large investments in terms of human, technology and finance. Nepal is still in the early stage of economic development, hence the country is also faced with challenges to make investment for creating other physical infrastructures (e.g. roads) and social services (e.g. water supply and irrigation) which the country can hardly generate from current known capital resources. Consequently the country will have to continue increasingly relying on external support agencies (ESAs). In water resources sector, the public sector investment amounted to US$ 577 million during 1990- 95 compared to US$ 965 million during 1980-90 which works out to an appropriation of 27% of total public sector investment for both time frames. Corresponding subsectoral expenditures for water supply and sanitation, irrigation and electricity were 12%, 34% and 54% compared to 22%, 41% and 37% respectively. It is seen that both the water supply and irrigation sectors has increased qevelopment expenditures but a sharp drop in electric sector. The low expenditure in electric subsector is an evidence of current·stagnancy in the expansion resulting in supply deficits in the country. Similarly the disbursement of the assistance from the ESAs' in the water sector had been around US$ 371 million during 1990-95 compared to US$ 659 million during 1980-90 which are 34 and 39% percent respectively of the corresponding total external assistance. They also account for 64 and 68% of the total expenditures. Of the total disbursement, the shares of water supply and sanitation, irrigation and electricity were 16%, 38% and 46% in 1990-95 compared to 7%, 29% and 64% respectively. Although the •grant aid to the water sector has remained at 24% since 1980s, there has been decline from 27% to 17% in electricity and 17% to 11% in irrigation sub-sectors however in case of water supply and sanitation sub- •sector a sharp jump from 7% to 59% is seen. Starting from the first year FY1998 of the Ninth National Plan, the development of water sector will need, as estimated by the experts, a investment of US$ 5 billion during first fifteen years of 1997-2012 and further US$ 14 billion during next fifteen years of 2012-27. Out wh.ich the hydropower sector alone will account for 53% and 70% respectively. On the annual basis, the water sector will need an investment of US$ 400 million with hydropower alone .claiming for 53% amounting to about US$ 220 million during the : next three National Plans. Given the imperative tasks to achieve the desired development of the Nepalese and the economy, the projected level of investment need to maintained or even increased while ensuring their maximum effectiveness. In past the utilization of the external assistance was varying and ha_s reached a figure of around 50%. To enhance the utilization of the increased assistance appropriate measures for capacity building of the sectoral executing agencies would have to be concurrently taken up.. Nepal's reliance for foreign assistance is growing especially for the development of water sector. It is already high at 80% for electricity sector and an increasing trend for irrigation and water supply sub- sectors is already evident and inevitable. In recent years, the bilateral and multilateral ESAs are shifting their assistance from traditional areas (physical infrastructural) to social services and poverty alleviation programme. On the other hand the private sector are also rapidly entering in the development of the physical infrastructures such as energy, communication and roads spurred by the government's liberalized economic policies. Nepal will have, thus, to put considerable effort in creating an enabling environment for alluring the private investments. Private sector investment is indeed seen to be increasing especially in hydropower, in recent years, thanks to the timely Hydropower Development Policy and the Electricity Act 1992. Furthermore the recent Electric Power Trade Agreement (June 1997) between India and Nepal further attracted multinationals and Indian entrepreneurs in the development of hydropower. However, the task of enlisting sizable private investments in the water resources sector, particularly from abroad, can be enhanced further by -an even more welcoming investment climate (including inducements as tax exemptions, assured repatriations of earnings and simplified administrative procedures) and transparent regulatory institutions (project approval, electricity tariff setting and water use rights). And to bring greater confidence to both domestic and foreign private developers, their perceptions to the financing, • construction, operation and political risks have also need to be minimized. Joint ventures between public 19 of 35, and private enterprises could be one way of risk sharing. As stated elsewhere, as Nepal's most of the hydroelectric potential is contained in reservoir schemes, the other multiple benefits from this comparatively advantageous source also need to be duly considered. Nepal would also need to be concern and remain alert for preserving her enhanced water rights (during dry seasons) arising out of the investment on such (reservoir) hydroelectric schemes Financing with soft-loan credits in combination with bilateral grants or let alone bilateral grants including preponderance of foreign technology have bearing on already higher capital costs of·the projects. This is especially the case with hydropower sub-sector. A major issue, thus, is whether the country should continue to net soft lending from the multilateral institutions and bilateral assistance or promote the private sector with an expectation for the reduced costs with commercial !endings including the development fee added on it. Currently, some hydropower projects being implemented by the foreign private sectors have also shown higher costs comparable to those under public sector. Nevertheless, the country would have to continue with and if possible expand its liberal economic policy and open economic climate while introducing appropriate mechanism to regulate the private investments. From the private sector view point, the irrigation and water supply sub-sectors, at present, is not •. likely to be of much interest. Currently over 75% of the irrigated command areas are under farmers' managed irrigation systems and would further expand. Similarly the water supply services are required for over 90% of the population in rural areas and beneficiaries participation is imperative for implementing water supply schemes 1:md for their operation and maintenance. These two sub-sectors will thus continue to remain under the public sector domain with a focused effort for increasing the involvement of beneficiaries. Similarly, the supply of electricity to the rural areas to supplement the domestic and industrial energy need, the public sector will continue to shoulder the responsibility with an effort to beneficiaries involvement as in case of irrigation systems. The Government has been providing _subsidies in various forms to the individuals and communities for meeting their needs for water supply, irrigation and electrical energy. Currently the water supply, with the exception of some (eleven) municipal areas of Kathmandu Valley and the Terai, is still and continue to be expanded under public sector investment. In case of irrigation, subsidies are available for . shallow tubewell installation, construction· small scale surface irrigation and the operation and maintenance. Similarly the installation of micropower of upto 100 l—jAf in remote areas gets subsidy on capital equipment mostly supplied by the local manufacturers. There is need to assess the need and effectiveness of the subsidy vis-a-viz the high costs of schemes for the interest of both the beneficiaries and the Government. 4.5 Legal and International Aspects (i) Legal The National Code Act, Mulki Ain, is the first legislation to address the issues of the water resources management. Then came the pioneering legal instrument, the Canal, Electricity and Related Water Resources Act 2024 (1967) which gave the absolute recognition to the State's ownership and to-control.of all natural water resources. Later in year 1992, Water Resources Act and Electricity Act were enacted replacing and repealing the above Act of 2024. The Water Resources Act 2049 provides for overall management of water resources whereas the Electricity Act 2049 provides management of electricity with the involvement of government including public sector undertakings and private sector. Both Riparian and Licence concepts of water rights are in vogue .in the country. The Prior Appropriation and Riparian Water Right has their origins in Mulki Ain whereas the Right through Licensing, which creates the authority or concession from the Government, comes from both Water Resources Act and Electricity Act depending upon the intent of licence. The former Act has no jurisdiction over the matters related to the development of .hydroelectric potential although it is the most important aspect of water resources which is likely to have conflicts of interest with its other beneficial uses defined by order priorities in Water Resources Act. Similarly the specific enactment viz. Forest Act, National Park and Wild Life Conservation Act, Soil and Watershed Conservation Act etc. also restrict certain activities on rivers, streams or other watercourses. 20 of 35 Currently the drinking water use, first in order of priorities as assigned by Water Resources Act, does not have the subordinate legislation as it addresses only general uses. In case irrigation, second in order of priorities, comes under the jurisdictions of the Mulki Ain as well as the Water Resources Act. The prevailing Irrigation Regulation 2045 framed under the now repealed Canal, Electricity and related Water Resources Act 2024 is in vogue. A ·subordinate regulation to avoid adverse consequences and to harmonise with the Water Resources Act 2049 has not yet formulated. In case of development of hydroelectricity, third in order of priority uses, the Water Resources Act has been delinked and is exclusively brought under. Electricity Act 2049. Since the exploitation of hydropower, the principal benefit of water resources for the country, will have a pronounced impact, if not conflicts, with respect to' other uses defined in Water Resources Act 2049, there is, thus, a need to establish a correspondence and harmony between these Acts so that multi-sectoral benefits from this unitary resources are not minimised. Public institutions established, within the background of current ambiguous or inconsistent general legal framework, for the sectoral development of water resources are also inadequately armed with precisely defined and transparent mandates and mechanism for establishing effective and workable inter-agency co- ordination among them. There is no clear instrument with any enactment, that gives the authority and relationship with the laws on local bodies. Because of the lack of clarity, enabling legislation are not framed in time and therefore, implementation of the legal provisions generally tend to be ineffective. Most of the important segments of water resources have been facing the legal vacuum. Currently the regulatory instruments for managing the social dimension of water resources development covering resettlement of displaced people, land acquisition, pollution control, protection of flood plain and river banks are either not explicit or need to be improved to reflect the requirements of the affected people and local conditions. With the recognition and increasing role of the private sector as the indispensable co-partner of the development, the Government is faced with the task of alluring, motivating and facilitating these partners. Various regulatory instruments are in vogue and being formulated. They are being considered inadequate. Leveraging instruments concerning (i) legal aspects covering concessions (BOT, BOO, BOOT etc.), privatisation arrangement, protection of capital and basic right cognisance of the private sector; (ii) economic aspect covering tax regime, return on investment, loan and' loan guarantee, foreign exchange repatriation, risk minimising arrangement and insurance etc. and (iii) administrative aspect covering one window clearance system, technical assistance and external support are need to made specific and transparent. While formulating such instruments, there is a need to incorporate provisions which encourage domestic private sector such as mandatory requirement to have local partnership (consultancy, construction contracting, equity partnership etc.). The international dimension of water resources in the country has not yet been unequivocally settled. The real targets have not yet been worked out in a strategic action plan. There is a significant lack of harmonised activities for the utilization of shared water resources for mutual benefits.. (ii) International Aspects Nepalese rivers form the most important head pond of the Ganges, the common river system for Bangladesh, India and Nepal. Nepal territory accounts for 14% in terms of basin area and her waters contribute almost 41 % to the total run-off and 71 % of the lean (dry) flows in the Ganges. Currently the country has been able to utilize around three percent of her waters and· the remaining flows into lower riparian countries. Current level of information has already identified number of techno-economic water resources schemes with a total capacity of 25,000 MW and associated large reservoirs capable of regulating over 30 billion cubic meters, 16% of the hazard-prone monsoon flows. These potential benefits indicate the important economic and social dimension in the regional perspective which needs to be considered. There is also a need to establish by Nepal her right over the incremental flows during the dry seasons resulting from the investments on the storage schemes. The country in near future could utilize only a fraction of the potential however the diversities and complementarities, in particular for the utilization of the hydroelectric power, also 21 of 35 provides ample opportunity to share at the bilateral and regional levels. However associated with these huge potential benefits the environmental and social consequences to the country need to be considered with full •perspective. The potential regulation of waters flowing from the Nepal also provides a very promising prospect for development of navigation facilities to Indian seaport (Calcutta) in Ganges. The co-operation for electric power exchange has been beneficial however the desired expansion for larger transactions are constrained by the weak trans-boundary interconnections. There is an urgent need for serious follow-up to implement the identified programme. The Chisapani Multipurpose Project (Karnali) and the Pancheshwar Project (Mahakali) has already been studied with substantial investment and their identified large irrigation and electric benefits are awaiting realization. The recently concluded Electric Power Trade Agreement between India and Nepal has opened up a new window of opportunity for widening the electric economic co-operation through the increased pace of hydropower development in the country. It has also created an atmosphere for the involvement of private sector besides the government agencies of either countries. The Agreement has resulted in the increased interests of the developers not only from multinationals but also from the India. The Treaty on the Integrated Development of the Mahakali River with focus on the Pancheshwar Project (power generation upto 6480 MW and irrigation to over 2.5 million ha.) between India and Nepal and similar Ganga Water Sharing Accord between Bangladesh and India has created an conducive atmosphere for bilateral and regional co-operation. The on-going efforts for a Quadrangle Economic Co-operation, as proposed by Nepal and recently endorsed by the summit meeting of the Heads of the Governments of the Southeast Asia Association for Regional Co-operation (SMRC). The World Bank has also initiated and has been working towards the similar proposal for a regional co-operation as the South .Asia Development Triangle among Bangladesh, Bhutan, India and Nepal. 4.6 Institutional, Human Resources and Social Aspects The agencies armed with independent incoherent sectoral legal instruments actually administering Nepal's water resources appear to be rather fragmented and uncoordinated. They include the Ministries of Water Resources, Housing and Physical Planning, Forests and Soil Conservation, Population and Environment, Local Development and General Administration. Some of these Ministries have operational Departments or some public utilities doing the department functions. These departments or public utilities are yet far from coming out of the culture of construction agencies. Besides, there are also district level agencies who function as the implementors of policy and stay at some negotiated point of the community-managed services. They tend to view the involvement of beneficiary and community as the power sharer or competitors. The National Water Development Council, chaired by the Prime Minister, is in overall charge of policy formulation, implementation and inter-ministerial co-ordination and creating a national consensus on the development of this unitary resources. Besides, the Water and Energy Commission, chaired by the Minister for Water resources, is also there to advise HMG on the water related policies and plans. The role and complementary ( or duplicity) of these agencies need to be redefined or united in the background of need for a apex institution to oversee the multidisciplinary approach to the balance development of the resources, However, the function of the Council could be facilitated in national-level water resources policy and planning if it were supported by a permanent, secretariat of the Water Energy Commission or in· the National Planning Commission to serve the Council. Currently the Ministry of Water Resources has been assigned with this task. The overtones of the Civil Service Act and Regulations smack of negativism. There is no attempt to tie the performance need for the employer and the career promise for the employee. Professional personnel in water resources sector seen to be unnecessarily grouped into small compartments often into dead-end- joints. Low salary and attendant spiral vices are plaguing the efficiency, full time devotion and productivity of 22 of 35 the personnel. The dominance of professionals of the external support agencies tend to undermine the capability of the local professionals and demote to secondary roles. Nepal is a multi-ethnic and multi-caste society with a wide range of local traditions and cultures among population spread over sharp geographical climate and regional diversities. Water resources planners . need to reckon these realities while launching any water related programs. Women folks, who are most concerned with the water supply, sanitation and hygiene of the family and society, are not encouraged to participate in water related programs besides other development activities. Although the female force constitutes half of the country's •human resources, gender discrimination is worst and widespread compared to those in other neighbouring countries. Given the Government's new and flexible policy to encourage autonomous grass-roots initiatives and communal organisations, as well as non-governmental organisations and private enterprise involvement, some of the existing structures may have to be modified. The operational departments or their counterpart public sector utilities simply have difficulty to accept the role of or reluctance to go in quest for partnership with beneficiaries, stakeholders, private sector and non-governmental agencies. In the context of examining the entire set of policies regarding water resources development, it would al~o be necessary to assess what • institutional changes in the administration and management could be made and required to achieve the desired national goals most effectively. Of paramount importance is the acquisition of reliable, detailed information on all aspects of the country's water resources, from source to sink. It is often said, yet bears repeating, that "knowledge is power. " Without the requisite information, no water works can be designed accurately without undue risk of failure. When engineers try to avoid such risk, they may be forced to over-design (i.e. apply exceedingly high factors of safety), thus adding to costs of construction and operation (which are high in any case). Although the costs of data acquisition are significant, they are greatly exceeded by the costs of "blind" . development projects leading to waste and the risk of failure. 23 of 35 V. ISSUES AND PROBLEMS Following are the issues and problems finalized, based on those identified by the national experts during the Phase I study, in the national workshop. 5.1 Technical Aspects Hydropower 1. Improving efficiency of utilization. 2. Accelerating rural electrification. 3. Improving system planning. 4. Reducing cost of development. Irrigation 1. Maintenance, Operation and Service delivery. 2. Cost recovery of irrigation services. 3. Increased utilization efficiency of surface and groundwater irrigation system. 4. Improving the planning, design & construction of irrigation projects & Land consolidation 5. Reducing cost of development irrigation projects. 6. Non-compliance of the provisions stipulated iri international agreements . Water Supply and Sanitation 1. Timebound action program be address Kathmandu Valley water supply and sanitation problems.. 2. Improving planning, design and construction of water supply and sanitation projects. 3. Water quality standards and regulations. 4. Cost recovery in water supply and sanitation services. 5. Greater community participation in all phases of water supply and sanitation projects. 6. Regulating programme and funding of INGOs. 7. Encouraging private investment 8. Sanitation program to be implemented as an integral part of water supply program 9. Increase awareness importance of recycling conservation and re-use of water 5.2 Environmental and Health Aspects 1. Inadequate data base, standard and norms 2. Inadequate harmony between water resources and environment conservation policies and programme. 3. Need for national and sub-sectoral impactment and processing guidelines in compliance with the environment legislation 4. Compliance with and violation of international treaty and conventions 5 Inadequate enforcement of environmental consideration in project design and implementation. 24 of35 6. Lack of environmental audit in relation to spatial and temporary dimension of water resources at local and central level. 7. Involvement of people on public health and sanitation. 5.3 Economics & Financing Aspects 1. Widening resource gap and increasing budget deficit. 2. Linkages of the accelerated hydroelectric power export with the national economy 3. Increasing dependency on foreign funds visa viz. their low absorptive capacity including lower use, not even 50%, in capital formation 4. Encouraging private sector. investment and financing. - private sector participation and restructuring of the power sector. 5. Development of local capability. 6. Consideration of non-power benefits with the development of storage power projects by private investors. 5.4 Legal and International Aspects 1. Water rights and ownership issues are not specific since there is a lack clearly defined basis for guarantee rights to local and district level political units (VDCs and DDCs) and at bi-lateral 2. and multi-lateral levels. • Inadequate (or non-existence) of subordinate or enabling regulation to implement the legislation including lack of harmony among related legislation. 3. No sub-ordinate regulation for use and protection of groundwater 4. Fragmentation and overlapping of functions among different institutions create maximum dilution of responsibility and unnecessary shifting of responsibility. 5. Utilization of tributaries while negotiating for harnessing of major rivers in collaboration with neighboring.countries. 6. Promotion of bilateral and regional co-operation in the development of inland watershed. 5.5 Institutional, Human Resources and Social Aspects 1. Inadequate authority and accountability to address multiparadigm framework in Central Level Agencies. 2. Lack of mechanism and procedural transparency in people participation. 3. Inadequate co-ordination and among government organizations, local authority and NGO/INGOs agencies. 4. Lack of conceptual and procedural clarity to promote gender roles and responsibilities 5. Lack of motivation and career satisfaction among employees and of implementation strategy to develop and utilize national human capabilities. 6. Duplication in actuaries and lack of coordination among training institutions 25 of 35 5.6 Information Acquisition Hydrology 1. Inadequate Hydrological and Meteorological Station Network. 2. Proper Management of Data. 3. Strengthening of Institutional Capability and promoting research and development. 4. Forecasting and Warning System. 5. Water Quality (Environmental & Health) River Management 1. Greater emphasis on watershed management, in poor watershed area (Siwalik range). 2. Promoting community participation in rivers training and watershed management programmes. 3. Preparation of a master plan for river training 4. Regulating measure to restrict settlements and other economic activities in flood prone areas. 5. Resolving inundation problems affecting border areas due to various types of intervention in the river across the border. 5.7 Additional Issues These are the issues and problems of common nature which were also raised in the studies as well as by the participants during the workshop 1. Consideration. of criteria for balanced distribution of water resource development programs among Nepal's various regions and population groups. 2. Emphasis on multiple-use projects for hydropower, irrigation, and water supply. 3. Better justification of initial costs and operating expenses by maximizing benefits. 4. Compensation of villagers destined to be displaced by large river development projects. Resettlement schemes must respect and preserve the social, communal integrity and cultural heritage of the people affected. 5. Identification of critical locations and assessment of feasibility and costs of implementation. 6. Improvement of quality control over construction projects. 26 of 35 VI. PROJECTIONS Three scenarios covering a duration of 30 years starting from year 1997, the low representing the current level of development, the medium scenario for planning purposes and the high scenario as an optimistic approach, were analyzed by the experts in the subsectoral studies. The medium as planning scenario is presented here. 6.1 Hydrology The networks of the hydrological and meteorological are proposed to attain the norms of World Meteorological Organization. The investment required is 450 million US$. 6.2 River Management For soil conservation and watershed management works, the proposed 20 year programme and investment of the Master Plan for Forestry Sector (1989) has been adopted and extrapolated for the period upto FY 2027. Both structural and non-structural measures for the river training works covering a stretch of 2,300 km for the southern rivers, 320 km for medium rivers and 220 km for major rivers have been estimated. Further study of inland water transport and navigation works have also proposed. An investment of US$ 1.2 billion has been projected. 6.3 Water Supply and Sanitation National Target His Majesty's Government has set the target of extending drinking water supply to all population by year 2002. Rur.~I Water Supply Schemes are currently put under two categories. The Category A for serving a population of upto 500 are small gravity flow and Tubewell Handpump schemes and Category B for population over 500 are large gravity flow and deep tubewell pumping and piped schemes. Investment estimate has been based on the regionwise per capita cost (PCC) as currently adopted in some ESA financed projects. An allowances of 10 percent and 5 percent of the costs have also been added for improvement of water quality and sanitation facilities. Period 1997-2002 2002-07 Investment 240 71 2007-12
2012-17
2017-22
2022-27 Total 45 510 A water requirements of 1500, 1700 and 2100 million litres a day have been projected for the year 2002, 2012 and 2027 respectively. Urban Water Supply Urban population is assumed to be composed of 30 percent in upper, 45 percent in middle and 25% in lower income groups. 27 of 35 It is estimated that consumption were 155, 97 ·and 45 litres per capita per day in 1996 for upper, middle and low income groups respectively. The consumption is expected to increase at 6% every five year interval reaching to 200 and 130 lpcd in year 2016 and thereafter remaining constant for upper and middle groups and constant for low income group. An additional 10 percent allowances have been provided for meeting industrial and commercial demands. About 70% of the water consumed have been assumed as the wastewater. The non revenue water is expected to ·decline to 32 percent in 2002, 24 percent in 2012 and 20% in 2027. Similarly a per capita per day solid waste generation of 0.25 kg for urban areas like lllam, Banepa, Gaur, Taulihawa and Birendranagar and 0.45 kg for Biratnagar, Birgunj, Kathmandu Valley and Mahendranagar have been also adopted for waste treatment facilities. By end of Ninth Plan (2002), there will be an additional water demand of 21 Oincluding 11 0 million litres a day from new municipalities. By 2012 and 2027, it will further increase by two to five times (790 to 1770 MLD) and 480 and 1060 MLD from the new municipalities. Similarly by end of Ninth Plan, solidwastes generation a day will be 420 tons including 170 tons from new municipalities and will reach to 4200 tons by 2027. The investment projections are US$ 116, 432 and 1,954 million for the period 1997-2002, 2002- 2012 and 2012-27 respectively. 6.4 Irrigation Currently irrigation infrastructures have been developed for a command areas of 1,060,000 ha. Out of which some 854,000 ha is under surface (run-of-river) irrigation systems and 206,000 ha is irrigated using groundwaters. In the Terai, out of 640,000 ha of command areas under surface irrigation, some 65 percent receive irrigation during the monsoon and about 35 percent get year round irrigation. Inadequate canals upto the farmland, improper water distribution and low river flow are the main causes for full utilization of the existing irrigation systems. Similarly, the utilization of the tubewells is low between 20 to 35% of the designated capacity. Most of the wells serve only 2.3 ha against its capacity to irrigate 6.5 ha. Currently some 206,000 ha of the land is under well irrigation systems. Following approach, with full view to the Agriculture Perspective Plan, proposed to be implemented with the commencement of Ninth Plan, has been proposed. 1. For existing irrigation systems - i) enhance the availability of the irrigation water and extend, improve and rehabilitate the existing surface irrigation systems; and ii) ensure the year round irrigation by conjunctive use of groundwater. 2. For the remaining (new) irrigable land - i) extend year round irrigation in the Terai by the development of both surface and groundwater; and ii) implement technically and economically surface and modern technological irrigation (e.g. sprinkler) systems for hills and mountains. 28 of 35 In the long term, surface irrigation schemes of the Terai is proposed to be gradually brought under irrigation with the development of the storage schemes which will not only ensure sustainable year round irrigation but also facilitate multiple cropping. Farmers are currently managing around 70% of the irrigated command areas. To achieve the desired impact and success of the irrigation development, farmers should be increasingly involved in accordance to the Irrigation Policy in vogue. Investment Need For estimation, the per hectarage costs are assumed as Rs. 180-250,000 for new surface irrigation, Rs.40-70,000 for extension/rehabilitation and Rs. 40-75,000 for shallow/deep tubewells. A total of US$ 2 billion is estimated. Water Balance Scenario The water balance study indicated that adequate water is available in all the major rivers i.e. Mahakali (under the recent Treaty), Karnali, Gandaki and Koshi. The medium size rivers have also potential for development of suitable storage schemes which will not only provide year round irrigation facilities but also electric power for fulfilling the peaking capacity • needs of the Integrated Nepal Power System (INPS). As the development of multipurpose projects will take time, in the short term, the groundwater would be developed for conjunctive use. However in case of the southern rivers, having seasonal flows, originating from the Siwalik, groundwater irrigation systems will be necessary for conjunctive use with the surface irrigation systems. Food Scenario By ensuring the year round irrigation systems in the Terai and improving the monsoon irrigation in Hills and Mountains areas, a higher yields of 7 and 4.5 tons per ha could be achieved. However, it is also imperative to ensure the availability to the farmers the availability of improved seeds, fertilizers, credit facilities, marketing facilities and-other infrastructure supports e.g. rural roads and reliable electricity. A foodgrain production of 11.75 million tons would be achieved by FY 2027 compared to 6.15 million tons in FY 1996. It is likely to meet the foodgrain requirements of a population of 37.83 million at 300 kg per capita required to provide daily need of 2250 calorie of energy. Moreover, it should be noted that the available agriculture land in river valleys, tars and leveled terraces in the Hills and Mountains will not be able to produce self-sufficient food grains for entire population of 53% according to 1991 census. 6.5 Hydroelectric power Meeting National Demand Energy supply and consumption (demand) grew annually at 14.8 and 14.5 percent during 1981-91 compared to 6.9 percent for both during 1991-96. The later figures indicate the existing state of stagnancy of supply. The expert has proposed, for planning purpose, the supply expansion would follow the 1991-96 trend of 7 perc~nt until year FY 2000 and thereafter 10.6 percent. According to such assumption, the energy and peak demand would be 2021 gwhr and 450 MW by the terminal year 2002 of Ninth Plan, 5536 gwhr and 1200 MW by year 2007 and 25000 gwhr and 4900 MW by year 2027. By year 2001, the installed hydroelectric capacity in interconnected nepal power system (INPS) would be 527 MW. Out of which the run-of-river plants would account for 435 MW with their load carrying 29 of 35 capability being 250 MW when operated as base load plants. The Kulekhani (92 MW) will be only plant available for operation during the peak demand. Assuming the system demand with a base load component of 40% and peak of 60% over the base, the net capacities (MW) additions would have to be 110 MW for peak by year 2002, 50 and 250 MW for meeting base and peak demands by year 2007 and 730 and 1100 MW by year 2027. A provision of about 20% for the contingency operation would also be needed. • An investment of US $2.9 billion for the first fifteen year (1997-2012) including 1 billion for Ninth· Plan (1997-2002) and further US$ 9.7 billion for the next fifteen year (2012-27) would be needed. It works out to an annual expenditure of around US$ 300 million out of which the on-going hydroelectric: schemes account for US$ 200 million. The projection is based on the specific costs of US $ 2.2 and 1.5 million per MW for the run-of-river and storage schemes respectively and additional 50 percent for transmission and distribution/rural electrification works. Among the currently identified schemes, for base load operation, Arun 3 (402 MW), Upper Arun (350 MW), Upper Karnali (240 MW), Sapta Gandaki (225 MW) and Lower Arun (350 MW) are considered to be suitable schemes. Similarly for peaking operation, storage schemes such as Kankai (60 MW), Bagmati (140 MW), West Set (750. MW), Burhi Gandaki (600 MW) and Kali Gandaki (660 MW) are suitable schemes. Among the above schemes, the schemes on Arun River (Valley), fed by glaciers and snows, would provide substantial amount of firm energy, thus, making them the best schemes for base load operation. However, since the run-of-river schemes alone are not likely to fulfill the base load need, the import of the thermoelectric plants from the neighbouring Indian Power systems, under the existing power exchange co-operation would need to be perused. National Energy Scene At the ehd of the planning horizon (2027), the per capita electricity consumption .is likely to be 490 kwhr compared to 1995 figures of 299 and 324 kwhr for India and Pakistan. About 80 of the population will have access to electricity. Similarly considering the present trend growths for biomass and imported fuel, the contribution of the electricity in the national energy will improve to 9% compared to current 1%. Export Potential The Northern and Eastern Regions are be the large potential markets at the door. The projected demands of these two regions are 48,500 and 21,300 MW for the year 2007. The power systems here are predominantly thermal with capacity as high as 70-85% and have been also facing a continual capacity .deficits of upto 20-30%. Karnali-Chisapani, Mahakali-Pancheshwar, Koshi and Burhi Gandaki are some large storage schemes and have been under consideration of both the Governments of India and Nepal since 1970s. The Chisapani and Pancheshwar schemes have been studied by the Nepal, with World Bank financing, for a capacity installation of 10,800 MW and 6,480 MW respectively, against their initial capacity of 1800 MW and 1000 MW. Recently the Governments of India and Nepal has made a Treaty for the Integrated Development of the Mahakali River and proposed to implement, in a time bound manner, the Pancheshwar Project. The joint investment for the proposed projects will be in order of US$ 20 billion wherein the PancheshWar Project alone will need around US$ 6 billion. 30 of 35 VII. CONCLUDING STATEMENT The development of Nepal's water resources, as a core physical infrastructure for the country's overall development, is a huge and complex undertaking that calls for the best efforts of the nation and its institutions. To progress, the effort must be guided by a coherent strategy, being a consistent set of goals, principals ancl pursued by means of flexible and self-correcting activities. The main goals are to improve the lives of Nepal's present and future generations by alleviating. poverty, guaranteeing equity and security. • The principles are to respect and affirm the culture, will, and creativity of the people; and to preserve the country's unique environment. The means to be applied include judicious government action to encourage and orchestrate (but not dominate or stifle) research, training, planning, innovation, adoption and adaptation of appropriate technology, construction, economic growth, as well as enlistment of international cooperation and private enterprise, all to be directed in concert toward the same goals and guided by the same principles. 31 of 35 Appendix-I WATER RESOURCES STRATEGY FORMULATION PROGRAMME NATIONAL EXPERT TEAM Team Leader/Water Resources Planner Hydrology Expert Hydro-geology Expert River Management Expert Water Supply and Sanitation Experts Rural Urban Irrigation Expert Hydropower Expert Environment & Health Expert Economic, Finance and Private Sector Economic, Finance & Private Sector Expert Resource Economist Water Resources Economist Legal & International Expert Mr. Bhubanesh KumarPradhan Mr. Nirjara Nanda Vaidya Dr. Dibya Ratna Kansakar Mr. Shiv Kumar Sharma Mr. Shiva Nath Sharma Dr. Kiran Bhattarai Mr. Nanda Kishore Agrawal Mr. Hari Om Shrestha Mr. Poorna Bhadra Adiga Mr. Vijaya Shankar Shrestha Dr. Durga Lal Shrestha Mr. Umapati Yadav Mr. Rajendra Kishore Kshatri Institutional, Human Resources and Social Aspects Institutional Expert . Mr. Achyut Bahadur Rajbhandari Human Resources Expert Sociologist and Anthropologist Mr. Mangal Krishna Shrestha Dr. Rishi Keshav Raj Regmi Appendix - II WATER RESOURCES STRATEGY FORMULATION PROGRAMME CONSULTATIVE GROUPS: A. TECHNICAL ASPECTS Group Leader Member Member Member Member Member Member Member Member Member Member Mr. Shankar Krishna Malla Chairman, Electricity Tariff Fixation Commission Water and Energy Commission Secretariat, HMG Mr. Kiran Shankar Yogacharya Director General, Department of Hydrology & Meteorology Mr. Som Nath Poudel Deputy Director General, Department of Irrigation Mr. Atma Krishna Shrestha Chairman, Butwal Power Company Dr. Rajendra Dhoj Joshi Dean, Institute of Engineering, T.U. Dr. Aka!Bahadur Singh Professor, Institute of Engineering, T.U. Dr. Kamal Rijal, Energy Specialist, ICIMOD Representative, Asian Development Bank, Donor Representative, The World Bank, Donor Representative, UNDP, Donor B. ENVIRONMENT AND HEALTH ASPECTS Group Leader Member Member Member Member Member Member Member Member Member Member Dr. Mohan Man Sainju Ministry of Forest and Soil Conservation/Department Soil Conservation, HMG Ministry of Health, HMG Ministry of Industry, HMG Ministry of Population and Environment, HMG Dr. Vidya Bir Singh Kansakar, TU Dr. Jagdish Pokharel, INDIVIDUAL International Centre for Integrated Mountain Development (ICIMOD), (!NGO) The World Conservation Union/ IUCN, INGO Nepal Forum of Environmental Journalists C. ECONOMIC AND FINANCIAL ASPECTS •Group Leader Member Mernber Member Member Member Member Member Member Member Dr. Badri Prasad Shrestha Ministry of Finance, Foreign Aid Division, HMG Department of Irrigation, HMG Nepal Electricity Authority, HMG (Autonomous) Nepal Water Supply Corporation, HMG (Autonomous) Butwal Power Company, NGO Federation of Nepal Chamber of Commerce and Industry (Prabhakar Rana, Hulas Golchha), NGO Mr. Banwari Lal Mittal Ex-President, Nepal Chamber of Commerce Representative, Asian Development Bank (AsDB), Donor Representative, The World Bank, Donor D. LEGAL AND INTERNATIONAL ASPECTS Group Leader Member Member Member Member Member Member Member Member Member Mr. Bharat Bahadur Pradhan National Planning Commission, Water Resources Division, HMG Ministry of Law arid Justice, HMG Ministry of Foreign Affairs, HMG Mr. Himalaya Shumshere J.B.R., Nepal International Centre Dr. Amber Raj Pant, TU Institute of Integrated Development Studies, NGO Nepal Bar Association, NGO Society of Constitution and Parliamentary Exercise, NGO Representative, The World Bank, Donor E. INSTITUTIONAL, HUMAN RESOURCES AND SOCIAL ASPECTS Group Leader Member Member . Member Member Member Member Member· Member Member Member Dr. Prachanda Pradhan Member-Secretary, NPC, HMG Secretary, MOWR, HMG Dr. Tulsi Narayan Shrestha, TU Water & Energy Commission Secretariat (WECS), HMG Nepal Administrative Staff College, HMG Nepal Agricultural Research Council, HMG Water Users Associations, 16 and 36 Maujas, Rupandehi Water Users Associations Rani-Jamara-Kularia, Bardiya Canadian International Development Agency (CIDA),· Donor Representative, International Labour Organization (ILO), Donor/UN ATTACHMENT 1 ANNEXB NEPAL-WATER RESOURCES STRATEGY FORMULATION TERMS OF REFERENCE FOR PHASE-II STUDY • TABLE OF CONTENTS 1. Introduction ........................................................................................:....................................:..... 1 1.1 Strategy Formulation Initiative................................................................................................ 2 1.2 Purpose of TOR 3 2. Background................................................................................................................................. 3 2.1 Water Resources .......................................................................,........................................... 3 2.2 Water Resources Issues and Problems................................................................................. 4 2.2.1 Technical Aspects ........................................................................:............................ 4 2.2.2 Environmental and Health Aspects ........................................................................... 5 2.2.3 Economics & Financing Aspects ............................................................................... 5 2.2.4 Legal and International Aspects ................................................................................ 5 2.2.5 Institutional, Human Resources and Social Aspects................................................. 6 2.2.6 Information Acquisition .............................................................................................. 6 2.2.7 Additional Issues ....................................................................................................... 7 3. Scope of the Phase-II Study ......................................................................................................... 7 3.1 Objective of the Phase-II Study.............................................................................................. 7 3.2 Principles and Objectives of the Water Resources Strategy.................................................. 7 3.3 Scope of Works - Water Resources Strategy Formulation: Phase-II ..................................... 9 3.3.1 Review of Phase-I Study and Outcome of National Workshop................................. 9 3.3.2 Formulation of Water Resources Strategy ................................................................ 9 3.3.3 Initiation for Integrated River Basin Planning .......................................................... 12 3.3.4 Development of a Terms of Reference for National Water Plan ............................. 12 4. Study Approach .......................................................................................................................... 13 4.1 General ................................................................................................................................. 13 4.2 Key Aspects of the Approach ............................................................................................... 13 4.3 Task and Manpower Schedules.........................................................................................,. 15 4.4 Study Budget.................................................................................................................:...... 17 4.5 Study Outputs....................................................................................................................... 18 4.6 Study Organization............................................................_.••··························:·········:··:........ 19 Appendix 1 Description and Terms of Reference of the Services 21 1. Introduction. Nepal - Water Resources Strategy Formulation (Phase-II Study) Scope of Work & Terms of Reference ATTACHMENT 1 ANNEX B Water resources are regarded as the key strategic natural resource having the potential to be the catalyst for all round development and economic growth of the country. Phase I of the Water Resources Strategy Formulation Study highlighted that progress in water supply and sanitation and in access to electricity has declined in recent years. The Study indicated that political and institutional factors might have contributed to the relatively slow development of water resources: political in the sense that the modalities in terms of sharing benefits with lower riparian countries until recently was not conducive to large-scale water project development, and institutional in the sense that the government and private sector were not well enough organized to mobilize the large-scale financial and human resources needed for water development works. The vision of the future is that efficient and judicious harnessing of the water resources can push the economy to a "high growth path" on a sustained basis. Realizing the need for a holistic approach to the management of its water resources, the Government has recently initiated the preparation of a comprehensive water resources strategy. National water resources strategy is based on the concept of comprehensive and integrated water management. The integrated water management is contemplated in at least three ways: 1. Systematic consideration of the various dimensions of water. The key aspect is acceptance that water comprises an ecological and hydrological system. ... 2. While water is a system, it is also a component which interacts with other systems. The integration is focused on interactions between w~ter, land, and the environment recognizing that changes in one may have consequences on the other (eg. floodplain management, erosion control, etc.). 3. Interrelationship between water and social/economic development. The key aspect of this level of integration is to ensure that water is managed and used so that development is sustained over the long term. At this level of integration, interest turns to the role of water in producing .hydroelectricity, and other benefits. National water sector strategies are set of medium to long term action programs that relate to both the management and harnessing (development) of the water resources and cover five broad areas of concern - (i) institutions, (ii) policy, planning and long term management - in the context of national, regional, basin and project planning, (iii) real-time management, operation and maintenance, (iv) economic and financial policy and (v) environmental and social aspects of water resources development. The water sector strategy differs from Master Plans in that the latter are project-oriented investment plans whereas strategy is an action program that paves the ground for planning and implementation of the investment plans. The strategy will lead to a consolidated water policy and guide the preparation of National Water Plan. Since strategy is dynamic, periodic reviews and refinements to the strategy will be necessary to ensure it is responsive to emerging changes in external and internal environment. 1 of 26 1.1 Strategy Formulation Initiative His Majesty's Government initiated the processes for formulating an overall water resources strategy in two phases: Phase-I - water resources assessment and Phase-II - formulating strategic options. For the formulation of the strategy, the Government established a National Steering Committee with the representation of key stakeholding Ministries. The chairman of the Steering Committee is the Energy and Physical Infrastructure Member of the National Planning Commission, while the Secretary of the Ministry of Water Resources has the position of member-:secretary. The Phase-I study examined the existing national goals and policies. It broadly assessed the country's potential water resources and current conditions of development (uses). It also identified opportunities and constraints affecting water resources development, and the major issues and problems to be dealt with. The Phase-I study activities, under the general guidance of the National Steering Committee, commenced in April 1996 with technical assistance from the World Bank/lDA. The Steering Committee, in collaboration with the World Bank, established a National Expert Team (NET) comprising experts of several disciplines. The Nepalese professionals (national experts) undertook all tasks with occasional support from international experts. The study ended in June 15, 1997. The NET produced reports covering the following aspects of water resources. i) Technical Aspects covering hydrology, hydro-geology, river management, water supply and sanitation (rural and urban), irrigation and hydropower; ii) Environment and health; iii) Economic, financial and private sector participation; iv) Institutional, human resources and social; and v) Legal and international. Regular seminars and workshops were convened to gather the views of the above groups and ensure that the outputs were transparent, consultative and.collaborative. The national expert team prepared a consolidation report (draft) containing a synopsis of their findings under the five categories and identified issues and problems affecting water resources development and management country-wide. A public workshop was held on April 17-18, 1997 to place the results of the Phase-I study before the various stakeholders in the water resources sector (i.e., representatives from the public life, local and international NGOs, government agencies, public • sector undertakings, and international -bilateral and multilateral communities). It also sought their comments and suggestions on how to improve the conclusions and ranking of issues. A final report •that incorporated the pertinent concerns and suggestions raised during the workshop (workshop proceedings), was completed and will form the basis of the Phase-II Study. The Phase-II study is to develop practical options to address the prioritized issues, evaluate these options, put up recommendations to the Steering Committee which will then select options to constitute the national water strategy. Addressing of issues and formulation of strategies would evolve around the concept of basin planning based on a holistic and integrated approach. Additionally, as part of the Phase II activity national capacity building for integrated water resources planning would also be undertaken. 2 of26 1.2 Purpose of TOR The first phase (Phase-I) of th~ Water Resources Strategy Formulation (WRSF) program ended in June 1997. The Phase II of the WRSF is intended to finalize the formulation of a national strategic framework for the development and management of Nepal's water resources. Issues and problems identified during the first phase form the basis for the Phase II Study. The purpose of this Terms of Reference (TOR) is to describe the objectives of the strategy and scope of the activities for the WRSF Phase II. The Phase-II study is to be executed by the Water and Energy Commission Secretariat (WECS) of the Ministry of Water Resources under the Technical Assistance (TA) of the World Bank (IDA) funded National Irrigation Sector Project (NISP) and with the assistance from the Canadian International Development Agency (CIDA) through WECS Institutional Development Project (WIDP). The Phase II study will be conducted under the policy guidance and supervision of a National Steering committee, which will also provide a forum to discuss study related issues, review proposals and will eventually present the proposals to the Government for selecting options that would constitute the strategy. 2. Background 2.1 Water Resources Nepal has a monsoon-type climate. Its rainfall varies between 1,000 to 4,000 mm with an annual average of 1,814 mm. More than 75% rainfall occurs during four months of the monsoon period (June to September).
Nepalese river system cover a total drainage area of 194,471 km~ out of which about 37,440 km lies in the Tibetan autonomous region of china and about 9,850 km is in India. Karnali, Sapta Gandaki and Sapta Koshi are the major river basins with their origin in the Himalayas (including in Tibet Region) and account for around 80% run-off. The Babai, West Rapti, Bagmati, Kamala and Kankai are medium river basins accounting for about 7%. The Southern rivers, with origins in the Siwalik Hill Range, are Bering, Bakra, Balan, Lal Bakaiya, Ratu, Sirsia, Manusmara, Tinau, Mahana and Banganga. These rivers are seasonal with little flow during non-monsoon periods. The Mahakali and Mechi rivers form the eastern and western frontiers with India. ~epal's den.se drainage network of more than 6,000 rivers hgve a mean annual flow (MAF) of 7,112 m /s. The drainage basin areas in China contribute 1,~10 m /s, i.e. 17%, while the drainage area in India of the frontier Mahakali river, contributes 501 m /s or 7% of the MAF. The equivalent total runoff volume is approxim~tely 224 billion cubic meters (BCM) and the mean specific flow is about 1.5 million cubic meters per km . The Nepalese rivers contribute over 41 % of the total annual run-off of the entire Ganges basin. It also provides about 71 % of the dry season flow of this river system. The combined river flows during the monsoon accounts for up to 78% of their MAF. The snow and glaciers in Himalayas, occupying around 15,000 km
, are also a natural reservoir for a huge amount of water. They contribute to the perennial flow in the Himalayan rivers •especially the high snow-melt flows sustained during the dry season. The contributing volume of this component of the country's water resources has not been fully assessed to date. The Terai abounds in groundwater reserves from natural aquifers which could be exploited with relatively low levels of investment. The annual recharge estimates range from 124 to 685 mm. The corresponding volume of water available from groundwater abstractions is estimated to be 3 of26 between 5.8 billion cubic metres (BCM) and 12 BCM; however, based on the measurements of the seasonal fluctuations of the water table in shallow tubewells, the groundwater reserve of the shallow aquifer only is assessed to be about 8.8 BCM annually. In the Kathmandu Valley, the annual groundwater recharge estimate is between 4.75 million cubic meters (MCM) and 14.6 MCM. The current withdrawal from the valley aquifers is approximately 18 MCM. This is an alarming situation since abstractions greatly exceed the recharge estimate and the exploitation is not sustainable. • 2.2 Water Resources Issues and Problems Despite the abundance of Nepal's water resources in absolute terms, the climatic processes associated with precipitation and run-off during summer or winter are variable and uncertain. Also, the geophysical stresses and strain from constant tectonic activity of the highest chain of mountains in the world add to the uncertainties. These factors create special challenges in the planning and management of the Himalayan rivers and their water yields. The planning approach has been concentrated at sub-sector· level and investment decisions made on a project-by-project basis. This fragmented manner of planning by the different government organizations have not been all that responsive to the complex and interrelated issues that are at the core. of water resources management. The following are the issues and problems identified during the Phase-I Study. 2.2.1 -Technical Aspects Hydropower 1. Improving efficiency of utilization. 2. Accelerating rural electrification. 3. Improving system planning. 4. Reducing cost of development. 5. Optimal energy mix (large-medium-small) Hydropower irrigation 1. Maintenance, Operation and Service delivery. 2. Cost recovery of irrigation services. 3. Increased utilization efficiency of surface and groundwater irrigation system. 4. Improving the planning, design and construction of irrigation projects and Land consolidation 5. Reducing cost of development irrigation projects~ 6. Non-compliance of the provisions stipulated in international agreements. 7. Groundwater/arsenic situation study ·- Water Supply and Sanitation 1. A time bound action program required to address the Kathmandu Valley water supply and sanitation problems. 2. Improving planning, design and construction of water supply and sanitation projects. 3. Water quality standards and regulations. 4. Cost recovery in water supply and sanitation services. 4 of26 5. Greater community participation in all phases of water supply and sanitation projects. 6. Regulating program and funding of international NGOs. 7. Encouraging private investment 8. Sanitation program to be implemented as an integral part of water supply program 9. Increase awareness importance of the conservation and re-use of water 2.2.2 Environmental and Health Aspects. 1. Inadequate data base, standard and norms 2. Inadequate harmony between water resources and environment conservation policies and·program. 3. Need for national and sub-sectoral enactment and processing guidelines in compliance with the environment legislation 4. Compliance with and violation of international treaty and conventions 5. Inadequate enforcement of environmental consideration in project design and implementation. • 6. Lack of environmental audit in relation to spatial and temporary dimension of water . resources at local and central level. 7. Involvement of people on public health and sanitation. 2.2.3 Economics & Financing Aspects. 1. Widening resource gap and increasing budget deficit. 2. Linkages of the accelerated hydroelectric power export with the national economy 3. Increasing dependency on foreign funds visa viz. their low absorptive capacity including lower use, not even 50%, in capital formation. 4. Encouraging private sector. - investment and financing. - private sector participation and restructuring ot the power sector. 5. Development of local capability. 6. Consideration of non-power benefits with the development of storage power projects by private investors. 2.2.4 Legal and International Aspects. 1. Water rights and ownership issues are not specific since there is a lack clearly defined basis for guarantee rights to local and district level political units, i.e., Village Development Committees/District.Development Committees (VDCs and DDCs) and at bilateral and multi- lateral levels. 2. Inadequate (or non-existence) of subordinate or enabling regulation to implement the legislation including lack of harmony among related legislation. 3. No sub-ordinate regulation for use and protection of groundwater 5 of26 4. Fragmentation and overlapping of functions among different institutions create maximum dilution of responsibility and unnecessary shifting of responsibility. 5. Utilization of tributaries while negotiating for harnessing of major rivers in collaboration with neighboring countries. 6. Promotion of bilateral and regional co-operation in the development of inland watershed. 2.2.5 Institutional, Human Resources and Social Aspects 1. Inadequate authority and accountability to address multi-paradigm framework in Central Level Agencies. 2. Lack of mechanism and procedural transparency in people participation. 3. Inadequate co-ordination and among government organizations, local authority and NGO/INGOs agencies. 4. Lack of conceptual and procedural clarity to promote gender roles and responsibilities 5. Lack of motivation and career satisfaction among employees and of implementation strategy to develop and utilize national human capabilities. 6. Duplication in activities and lack of coordination among training institutions. 2.2.6 Information Acquisition. Hydrology 1. Inadequate Hydrological and Meteorological Station Network. 2. Proper Management of Data. 3. Strengthening of Institutional Capability and promoting research and development in areas such as sediment yield, mass wasting, soil erosion. 4. Forecasting and Warning System. 5. Water Quality (Environmental & Health) 6. Snow, glacier and GLOF River Management. 1. Greater emphasis on watershed management, in poor watershed area (Siwaliks range): 2. Promoting community participation in rivers training and watershed management programs. 3. Preparation of a master plan for river management 4. Regulating measure to restrict settlements and other economic activities in flood prone areas. 5. Resolving inundation problems affecting border area~ due to various types of intervention in the river across the border. 6 of26 2.2.7 Additional Issues. These are issues and problems of a common nature which were raised by the participants during the workshop 1. Consideration of criteria for balanced distribution of water resource development programs among Nepal's various regions and population groups. 2. Emphasis on multiple-use projects for hydropower, irrigation, and waler supply. 3. Betterjustification of initial costs and operating expenses by maximizing benefits. 4. Compensation of villagers destined to be displaced by large river development projects. Resettlement schemes must respect and preserve the social, communal integrity and cultural heritage of the people affected. 5. Identification of critical locations and assessment of feasibility and costs of •implementation. 6. Improvement of quality control over construction projects. 3. Scope of the Phase-II Study • 3.1 • Objective of the Phase-II Study The specific objectives of Phase II Study are the following: 1. .To arrive at a set of action programs that will constitute the strategy for water resources development and management. The process will involve addressing the issues related to the water resources sector within the framework of (i) institutions, (ii) planning and long-term management of water sector, (iii) real time management and operation and management, (iv) economic and financial policy and (v) social and environmental aspects of water resources management. The purpose of strategy is to propose actions to implement water resources policies. However, if the Phase II Study demonstrates that the various sub-sector policies (hydropower, irrigation, water supply, etc.) dealing with the management of water resources are not compatible with each other then suggestion will be made for policy changes. 2. Technology transfer to national professionals on Integrated Basin Planning by providing appropriate training. 3. To prepare a Terms of Reference for preparing a comprehensive National Water Plan. 4: To strengthen the WECS to become the apex body and guide for water sector policy and strategy studies in the future. 3.2 Principles and Objectives of the Water Resources Strategy . The principles and objectives of the national water resources strategy are discussed in the Phase-I study reports. A synthesis of these principles and objectives are as follows: Water Resources Strategy Principles The formulated strategy for water resources under Phase-II should focus on the national development goals concerning food security and poverty alleviation, safe water and sanitation, 7 of26 exports, socio-environment protection and conservation, arid the roles and partnerships between public, external support agencies, the private sector and the civil society; The strategy should take into account that electricity is essential for improving the quaiity of life and that export of electric power is one of Nepal's major potential for economic growth. The development of strategic options should be based on the issues and problems identified by the National Experts during the Phase-I study and finalized and ranked by the Phase-I National Workshop and any others that may emerge during the review; • The strategy must build on the institutional and human resource bases existing both in the public and private sectors and develop the potential for providing the essential services in the water ~~ ' It must be realistic and practical, emphasizing judicious management of resources for higher economic returns, and support human and social upliftment on a sustainable basis; The strategy should focus on developing medium to long-term (5 to 30 years) action programs and can be responsive to issues at basin (local), national and international levels.and in different time frames; It should be fully integrated with the country's overall development planning and sectoral development and complement Government's macro-economic and fiscal policies; The strategy must take into account the new governance being embarked upon especially those aspects affecting the roles and partnerships between the public sector, external support agencies, private sector and the civil society; • The strategy must be dynamic and evolutionary to cope with new emerging issues and problems as the country and its people progress on the development path; and The evaluation of options prior their recommendation, should be done on technical, sociological, environmental, legal and economic grounds according to criteria established by Government decision makers. Strategy Objectives The main objective of formulating a national water resources strategy is to provide measures to develop and manage this resource in a manner that achieves the Government's development goals and policies. The strategy will provide broad directions for future investment programs and guide the preparation of a national consolidated water policy and water plan. The other significant objectives are: To improve health and well-being of the people with the supply of safe and sufficient water for drinking and other household uses including sanitation and industrial and other uses; To boost agriculture production through year-round and regulated supply of irrigation water as stipulated in the Agriculture Perspective Plan; To establish navigational facilities to seaport for expansion of trade, industry and other economic activities; To obtain maximum economic benefits through judicious use of both surface and groundwater in a manner that least affects the environment adversely; 8 of26 To optimize the economic benefits by multipurpose use of water for hydropower generation and at the same time foster sustainable development of the water resources; To promote equity, social justice and balanced regional development with special efforts made to extend the benefits of water use by primarily extending irrigation facilities to poverty stricken areas; To improve government policy, the legal and regulatory framework, and institutional capacity in •support of water resources development for sustainable social and economic upliftment of the people at all levels; To develop the national capability to effectively plan, develop and manage the country's water resources and enhan_ce scientific and technological pursuits that support its planning and management; To mainstream women and other disadvantaged groups in the water resources development process; To promote much greater involvement of the private sector (internally and externally) in water resources infrastructure development and management particularly in the hydropower sub-sector; To establish the role and functions and improve the planning capacity of the designated central water agency responsible for integrated planning activities in the water sector. 3.3 Scope of Works - Water Resources Strategy Formulation: Phase II 3.3.1 Review of Phase-I Study and Outcome of National Workshop The Phase-I study encompassed an overview of the national water sector and Government objectives and policies in the related sub-sectors. It identified a .wide range of issues and problems that need to be dealt with in order for Government to achieve its development objectives. Several issues identified can be generally reclassified as sub-sector issues and are short-term in nature. Not all of these have been consolidated and ranked into major issues that must be subsequently addressed. Also, some data gaps exist in the assessment. Quantitative comparison of water supply and demand for the present and future conditions has to be completed for all other water uses. River basin units as the basis for national water planning is to be internalized and water supply and demand are to be made· basin related. Water for ecological preservation also needs to be considered and quantified. Phase II study will commence with a detailed review of the Phase I report and a judicious selection of issues for further in-depth study. Data gaps if any will be filled during phase-II prior to developing options that address the issues and problems. 3.3.2 Formulation of Water Resources Strategy Issues identified during Phase I Study and also those identified in the course of Review (during Phase II as mentioned above) will form the points of reference. The 20-year development perspective of the country as outlined in the Ninth Plan Approach Paper will also be taken into account. For each issue considered, there will usually be several environmental, financial, institutional or human resources options apart from technical or physical options. In other words, the options will address all relevant questions like what is required to be done and the manner in which it is intended to be done. Evaluation of options will be carried out on technical, economic, environmental and sociological considerations to facilitate the finding of the most viable and feasible option. The options 9 of 26 • will also explore various means of matching supply and demand and of satisfying environmental and social concerns. On the basis of evaluation, a package of options will be provided to facilitate the decision makers to choose the best option which will constitute a strategy. To ensure political acceptability, it is essential that extensive discussions are held with a wide range of stakeholders including private sector organizations and those likely to be affected by potential projects of water resources development. Further, the Study has to proceed with the concept that the entire process of strategy formulation is collaborative, consultative and transparent. The scope of works for the strategy formulation will include but not necessarily be limited to establishment of strategic framework based on priority issues as pointed out in Phase I workshop in the following group. The grouping may be re-classified to ensure a holistic approach. Group 1: Group 2: Group 3: Technical Aspects Hydropower Irrigation Water Supply and Sanitation Other uses such as navigation, fisheries, recreation, environmental and ecological purposes Water resources assessment- qualitative and quantitative Management/Geographical Information System (MIS/GIS) Financing and macro-economic aspects • •Domestic saving and investment needs •Public and private sector resource mobilization •Macro-economy - water sector linkages •Forward/backward linkages •Cost recovery •Inducement to private sector participation Legal and International Issues •Optimal resource use •Private sector participation vis-a-vis control over judicious use of natural resources •Water rights - internal and transboundary •International cooperation •Regulating groundwater extraction Group 4: Institutional and Human Resource Development Institutional arrangements 10 of 26 Inter and Intra - sectoral linkages Institutional arrangement for coordinating and implementing water resources programs Administrative procedures related to private sector investments Capacity building Group 5: Social and Environment Environmental measures related to development/ conservation of water resources. Water resources development and poverty linkages. In addressing each of the issues and evaluating their options, the following guidelines will have to be followed: 1. Review of sectoral goals to ascertain their adequacy and appropriateness in achieving the national objectives as defined in the 20-year development perspective outlined in the Ninth Plan Approach Paper. • 2. Assessment of sectoral goals in contributing towards making water resources development "an engine of economic growth". 3. Examination and analysis of forward and backward linkages of water resources development in their specific uses for integration of sectoral goals, policies and priorities into the overall development. • 4. ·Assessment of contribution of water resources in their specific use to economy in terms of overall GDP growth or sectoral GDP growth. 5. Identification of stakeholders and mechanisms for their effective participation at appropriate levels of policy formulation, decision making, implementation and feedback systems. 6. Suggestion for rationalization of regulatory instruments and institutions, if needed, to ensure implementation of national and sectoral objectives and policies in a consistent and effective manner. 7. Incorporation of new sectoral components such as the export of hydropower. 8. Assessment. of changes or improvement required to implement the suggested options - technical, legal, administrative, financial, institutional, environmental with reference to the specific policies adopted by the government. 9. Adopt a river basin approach to water resources planning and· management while examining issues and assessing options. 10. Clarify the institutional and legal measures required for implementation of the strategy and indicate the capacity building that the proposed institutions will need to carry out their new tasks. 11 of 26 3.3.3 Initiation for Integrated River Basin Planning Basin plans form the basis for allocating land and water resources and for verifying the compatibility of long-term water resources programs and projects with the hydrologic system of the basin. Thus, the management of water resources must evoive around the concept of basin planning based on a holistic and integrated approach to the availability of surface and ground water supplies, resource exploitation and augmentation (sustenance) of supply, catchment condition, water demand and allocation, value of water and water projects, pricing of water services and cost recovery, water- use efficiency and conservation and sanitation and environment health. It will integrate institutional, legal policy and technical measures to provide a coherent basin plan which will meet the demands of population and socioeconomic growth in the basin. Basin plans conform to the national water plan but are more detailed and each river basin plan states present and projected resources availability, water uses by category (consumptive or non-consumptive, diverted or in-stream), and class (domestic, industrial, agricultural, environmental). The phase-II study will prepare a detailed TOR for river basin planning program to be conducted in future. The resource for the basin planning expected be made available through other components of the proposed NISP. As part of the Phase-II study, the experts will provide training and technology transfer to national staff involved in the study. The river basin experts will also address organizational, institutional and legal aspects associated with the establishment of an independent river basin organization. This should also include examining the option of leaving the present institutional arrangement intact, . but introducing coordination arrangements for both the preparation of river basin plans and possibly to constructing and managing all projects within a river basin. 3.3.4 Development of a Terms of Reference for National Water Plan As an integral part of the Phase II Study and as strategies evolve, a Terms of Reference will be developed for preparing a comprehensive National Water Plan. The Study will address the salient features of this Plan. These include water management and development issues; the social and environmental issues particularly the impact of water resources on poverty; the institutional issues including those for peoples participation; public accountability, operation and maintenance and fiscal sustainability. As an example, a national water plan would have the following important features: - It should be broad-based (not detailed) and accurately forecast demographic, economic and social changes and relate these to projections of water resources development for use by the various communities (including trans-basin users) and water quality; it should contain a comprehensive list of water projects and their economic viability and priorities; it should include all existing integrated river basin plans and those which are in the process of preparation; it should record conditions of current resources and commitments against them and examine the supply of water in international rivers and groundwater basins and the demand from irrigation, domestic and municipal needs, hydropower needs, ecosystem needs and other important areas; its planning horizon should be about 30 years. The national water plan should be a rolling plan that is dynamic and evolutionary to cope with emerging water sector development issues and problems. The National Water Plan should focus and reflect the development needs of the country. 12 of 26 4. Study Approach 4.1 General Water resources planning is both an art and science. The development of strategy for water resources is an activity requiring passion and noisy debate. It requires the thrust and parry of political argument. It requires give and take and lots of compromise.Error! Bookmark not defined. 4.2 Key Aspects of the Approach Five essential parts of the study approach are: 1. Stakeholders Participation Integrated water resources management only works if there is consensus with respect to the goals, priorities and constraints. Stakeholder participation would involve those who are affected by and who have an interest in water resources and in the formulation of the water strategy. Their involvement would produce a well-informed water development and management strategy that has a good chance of being implemented. Stakeholders' participation has to be structured and incorporated throughout the processes of strategy formulation and planning and not as an add-on. Local government (VDCs, DDCs) can play a key role in ensuring citizen participation in their own development and in allowing for trade-offs between water development and education, or roads, or sanitation. The steps involved in this type of participation are as follows: 1. Structured Participation at National and Local level 2. Identification of Stakeholders 3. Designing mechanisms for Stakeholder Participation 2. Geographic Information Systems (GIS) Geographic information systems are particularly useful in categorizing and storing data and producing over-lay maps of selected criteria related to water resources planning on a river basin and country-wide basis. Socio-economic, environmental, groundwater and forestry (watershed condition) information in the respective river basins, could also be portrayed in this manner and support decision making very effectively. Where it is feasible, a GIS would be used as part of the water resources information system for river basins. Decisions to generally improve the water resources information system in Nepal would be made after the water strategy is in place. 3. Basin Planning and Management Context Past water sector development has been approached on a project-by-project basis, where the development goals were often unclear and project affected communities, seldom given an opportunity to present their concerns or views. Water resources projects are increasingly complex and integrated river basin planning and management is an absolute necessity as set out in the scope of work. The basin planning and management approach will provide better perceptions of the national and international implications arising out of the planned uses of water. It should be remembered that the integration of each of the basins into the nation as a whole cannot be achieved solely by river basin planning. There is a need for some form of overarching inter-regional strategy based on economic, environmental and social considerations, thus requiring a national strategic framework for the development and management of Nepal's water resources. 13 of 26 4. International Context A crucial factor of water resources strategy formulation for Nepal is the international dimension of its water resources and their existing water use agreements. The accelerated hydropower development will require that these are integrated with bilateral considerations and regional (cross-border) power markets. Also, strategic action programs in water regulation should adequately address the question of substantial benefits to downstream riparians in terms of low-flow augmentation (increased irrigation supplies, water transport), flood control and river management and their associated socio-environmental benefits in the region. Since the economic development of Nepal's economy is at the core of its water resources development plan, these international dimensions are of paramount importance. They must receive due attention in strategy formulation. Experience has demonstrated that it is difficult for Nepal to derive desired benefits directly from its comparatively huge hydropower resources with only one large potential customer of the electrical energy. However, the situation has improved significantly following the recent successful conclusion of the Mahakali Treaty and the Electric Power Trade Agreement. The •long-awaited Ganga Accord between India and Bangladesh has been concluded and there is the on-going consultation/proposal for creation of greater South Asia sub-regional (termed the development triangle or quadrangle) economic co- operation between these countries. In addressing the institutional and capacity building issues, options should focus on a transfer of skills and information through an extensive exposure to international experiences in other similar situations where there have been successful water negotiations and power trades, particularly, the techniques of analysis of private and public financing, pricing, and valuation of the resources. Therefore, the strategy should reflect a flexible approach to the changing conditions emerging in the region. 5. Methods of Evaluating Options - Use ofDecision Support System (DSS) Models The approach taken will be the simultaneous development of the overarching strategies for the entire water sector in the national and international context. The study team will be required to assemble a substantial amount of information on the water sector, develop a range of planning models and analytical tools to examine options and recommend strategies and programs to be - adopted by government and endorsed by donors. There are a variety of statistical techniques and models that can help analyze options. This is a process of evaluating the available· and necessary inputs (financial, natural, material, human) in pursuing a strategy, and assessment of the response that will arise from each option. The analysis should consider all aspects of implementing an option including not only the allocation of financial, physical, and human resources but also cultural, ideological, and legal constraints. Evaluating options should begin with the establishment of criteria to measure the extent to which objectives have been achieved. Because of the complexities involved in the management of water resources, advances in methodologies and tools for national water resources strategy formulation ar!:l increasingly relying on the development of user-friendly decision support systems. The analytical tools will have at their core an information system to organize information about water availability, demands, management options and other relevant issues in a transparent manner. These information bases can then be used for various options (models) appropriate for Nepalese conditions (e.g., to examine optimal use of the water resources by river .basin; macro-economic linkages and interactions of water resources planning). These models should be transparent, be easy to use in interacting with various stakeholders and be flexible enough to consider a variety of scenarios and options for national and regional water strategies. 14 of26 Decision Support Systems (DSS) are analytical tools which may be applicable when integrating water into the national plan by proposing solutions which assist the decision maker in evaluating the various options available to them. In some of these DSS models, there are linkages between models constructed to optimize river basin planning and another for macro economic analysis. DSS are considered more applicable to water resources management in well developed river basins encountering allocation problems between competing users. In view of the poor databases available for the country's river basins, the un-utilized nature of the resources and the relatively great deal of time needed to collect such amounts of data and develop basin-level models, the viability of using DSS will have to be examined further. The experiences of the World Bank in other member countries using such decision support systems for supporting national policy formulation will be examined and the applicability to Nepal's situation, determined. While it is desirable to include the use of DSS in Phase-II it may be necessary to identify this as a sub-project undertaken as a capacity building component under the Phase-II study. 4.3 Task and Manpower Schedules. The estimated consulting services effort would amount to about 225 person-months for the local professionals and 35 person-months of expatriate inputs. The consulting servic.es for the Phase- II study would extend over a period of 24 months. It is expected that upon completion on this phase, a separate project to develop a comprehensive National Water Plan will commence as a sequel to this study. The main inputs from the national team members will extend over the entire 24 month duration· of the services while the main expatriate input would end around the nineteenth month of the study after the workshop to review the evaluation of options with the various groups of stakeholders. The report on the integrated river basin plan for the selected priority basin would also be completed by the end of the nineteenth month. At the end of month 24, the process for adoption of the national water strategy by Government would be completed together with the strategy document. The task schedule for the Phase-II study is given in Table 1 together with the key milestones for reports. The Phase-I review will extend over five months and will be implemented concurrently with additional data collection. The task schedule should only be adopted as a guide with regard to the duration of tasks. These may need to be adjusted to meet the key milestone dates. 15 of26
Table 1: TASK SCHEDULE WATER RESOURCES STRATEGY FORMULATION - PHASE-II STUDY Task Description 1 Inception/Mobilization 2 Phase.I Review 3 Revised Prioritization of Issues 4 Data Collection & Verification _Li I I I ~f-r··+···l· I . 5 Development of Strategic Options 6 Evaluation Criteria & Models 7 Evaluation of Options & Testing 8 StakeholderWor1<shop (Review of Evaluation) • 9 Preparation of Recommendations 1O Review of Recommendations (NSC) 11 Review of Existing Environmental Strategy 12 Choice of Options (Government) 13 Finalization of Water Resources Strategy Doc. 14 Integrated River Basin Plan (1•8asin) 15 TOR - National Water Plan 16 National Water Policy Formulation 17 National Water Plan 18 Regional Wor1<shops/Presentations 19 National Steering Committee Review. etc. - Continuous Activity • . . . lntennittent Activity .,., Inception Report ,r Phase-I Review Report r Summary Report ofOptions Evaluation Results T' Worl<shop Proceedings .r Strategic Options Recommendations & Consultants Reports 'f" Synthesis of StrategyReport (Draft) TITI-1--.'-'---'--'--',J---! II ! j· I I : ,. ': I: HIl I, I -;:······•I I , ' I I I l.:f I i ! i i • • trt- t::ffl !.. ::Lt J:b:: .l. .,.' Water Resources Strategy Report .,., Example Basin Plan Document (Draft) 'i" Example Basin Plan Document (Final) T 9 Terms ofReference - National Water Plan T'' Draft National Water Policy Document • T'' NSC Start-up Meeting 16 of 26 I .T... ! I -~ ----;_ --- 4.4 Study Budget The total cost for the Phase II Study is estimated to be about US $ 1,236,000. This includes the costs for consulting services of national and international experts. The detailed breakdown of cost estimates is given in Table 2. It is envisaged that the costs for International Experts, out of pocket expenses incurred by the International Experts and out of pocket expenses of WECS counterpart staff together amounting to a total of US $ 636,500 will be financed by CIDA through WECS Institutional Development Project (WIDP). The costs associated with the services of National Professionals/counterpart staff, out of pocket expenses of national professionals and other costs amounting to a total of US $ 599,500 is to be financed by IDA through NISP.
Table 2: Manpower and Budget Particulars Unit No. Rate Total USD USO A: National Professionals/Counterpart Staff Team Leader/Mgmt. Spec. MM 24 2000 48000 Economist (Macro-economics) MM 20 1500 30000 River Basin Planner MM 8 1500 12000 \Social Scientist (sociologist, anthropologist) MM 8 1500 12000 Gender specialist MM 4 1500 6000 Environmental management specialist MM 8 1500 12000 Hydropower Expert MM 8 1500 12000 Energy Economist MM 6 1500 9000 Irrigation Expert MM 8 1500 12000 Hydro-geologist MM 5 -1500 7500 Geo-chemist MM 2 1500. .3000 Agriculture Economist MM 6 1500 9000 Water Supply and Sanitation Expert MM 8 1500 12000 'Resource Economist MM 6 1500 9000 Institution Expert MM 8 .1500 12000 HRD Expert MM 6 1500 9000 Water Law Expert MM 8 1500 12000 GIS/MIS Expert MM 8 1500 12000 Macro-Economic Modeller MM 8 1500 12000 Expert on International Financing MM 4 1500 6000 Short-Term Experts MM 40 1500 60000 Unallocated Time MM 20 1500 30000 I Sub-Total: 223 346500 B: International Experts (IN THE) IE Team Leader/Water Resources Planner MM 12 12000 144000 Resource Economist MM 2 12000 24000 11 nstitutional Specialist MM 2 12000 24000 Gender Specialist MM 4 12000 48000 llrr./Domestic/lndustrial Water Specialist MM 3 12000 36000 iRiver Basin Planner & Mgmt. Spec. MM 4 12000 48000 jEnvironmental Mgmt. Specialist MM 6 12000 72000 JGIS Specialist MM 2 12000 24000 Hydro-geologist MM 3 12000 36000 Geo-chemist MM 3 12000 36000 Groundwater Specialist MM 2 12000 24000 !Unallocated Time MM 4 12000 48000 Sub-Total: 47 564,000 17 of26 C: Out of Pocket expenses International Experts Per Diem - 47 MM@ 30 Days@ 120 US$/day Air Ticket - 12 persons@ 4400 USO/day Sub-total Field Per Diem for National Experts/Counterpart Staff 'i National Professionals.: 1000 days @ 30 USO/day Counterpart Staff: 200 days @ 30 USO/day Sub-total Sub-Total (C) D: Other Costs Vehicle (1) Vehicle Operation/Driver @ 500 USO/month Logistic Support including office supplies Computer/printer/softwar~ Workshop/seminars over 24 month In-country travel icluding local air travel Admin Support @ 500/month Unallocated/contingencies Sub-total Grand Total: A+B+C+D Note: Administration and logistic support costs associated with International Experts and WECS counterpart staff are to be borne under WIDP. 4.5 Study Outputs The deliverables of the Phase-II study consist of reports (technical and non-technical), guidelines relating to special study techniques, methodologies, or mathematical models used in strategy formulation activities and are part of the technology transfer, stakeholders' workshop proceedings, strategy/policy documents, terms of references, and basin plans. In addition, there will be documentation to support the GIS efforts and activities and ensure that there can be continuity in this class of information system. The milestone dates for the main reports are shown on Table 1 and are as follows: 1. Inception report with a revised work plan ............................................................ end of month 2 2. Phase-I review report with revised prioritization of issues ................................... end of month 5 3. Report on options evaluations ..........................................................................:end of month 18 4. Stakeholder workshop proceedings on evaluation of options............................ end of month 19 5. Recommendation of strategic options ............................................................... end of month 21 •6. Synthesis of Strategy Report .............................................................................end of month 24 7. Water Resources Strategy Report...............:······························:································· Quarterly 18 of 26 4.6 Study Organization National Steering Committee The Government established a National Steering Committee (NSC) with the representation from the following key stakeholding Ministries for Phase I of the Study: (i) Ministry of Water Resources ( responsible for irrigation and hydropower), (ii) Ministry of Housing and Physical Planning (responsible for water supply and sewerage), (iii) Miriistry of Forest and Soil Conservation, (iv) Ministry of Agriculture, (v) Ministry of Industry, (vi) Ministry of Population and Environment, and (vi) National Planning Commission Secretariat For the Phase II Study, the existing Steering Committee will be restructured to accommodate WECS and other relevant institutions. The committee will provide proper policy guidance to the national and expatriate teams and ensure that the work program for the Phase-II study stays on track. The NSC will provide a forum to discuss the Phase-II study related issues; it will review proposals of the emerging water strategy based on recommendations developed by the expert team and present these to Government for selecting options to constitute the strategy. The day to day operation of the study will be left to the national team leader acting in concert with the expatriate team leader. Water and Energy Commission Secretariat The Phase-II study will be implemented by the Water and Energy Commission Secretariat (WECS) of the Ministry of Water Resources (MOWR) under the guidance of a national steering committee. Water Resources Strategy Formulation Unit will be instituted within WECS and will consist of a core group of national experts aided by a group of expatriate experts. The national team , leader will be the overall director of the combined teams. • National Experts The core group of national experts will be composed of (i) a team leader who is a management specialist experienced in the planning and coordination of water resources development, (ii) an economist (macro-economics), (iii) a river basin planner, (iv) a hydropower expert, (v) an irrigation expert, (vi) a water supply and sanitation expert and (vii) an institutional expert. These experts would be drawn from a variety of institutions including the Government, NGOs, public and private agencies, academic institutions and professional associations. Since the goal is to adopt an multidisciplinary approach to water resources planning and management, short term experts would be needed in economics (agricultural and energy), financing (international and project), hydrology, engineering (civil, irrigation, environmental, water resources and energy systems), hydro-geology, regional planning, environmental science, information systems and geographic information systems, legal (resource law, international law), agronomy, rural sociology, political science, etc. 19 of 26 International Experts The international experts team will comprise (i} water resources planner and management, (ii) a resource economist, (iii) institutional expert, (iv) gender specialist, (v) water use - irrigation, domestic, industrial .water- specialist, (vi) a river basin planner/modeller, (vii) an environmental management specialist, (viii) a geographical information system specialist, (ix) a hydro-geologist, (x) gee-chemist and (xi) a groundwater specialist. The expatriate team leader will be responsible for guiding and coordinating the tasks .of the national and international short-term consultants; he will assist in· the integration of the economic, social, legal, institutional and environmental concerns with technical and scientific concerns in the formulation of the water resources strategy. The expatriate team leader should be an experienced water resources planner and development engineer in the areas of strategy formulation, water management and multi-use water allocation. He must be able to interact with bureaucrats as well as multidisciplinary teams involved in strategy formulation and basin planning. The Resource economist will work closely with the national economist in developing the economic criteria to be applied to option evaluation, the calculation of costs and benefits for water resources infrastructures and in the economic analysis of alternative courses of actions. The environmental management specialist will be required to work closely with the national organizations/agencies responsible for environmental management. He will review the concerns related to water flows, land and water quality, aquifer monitoring, and pollution control and the issues identified during Phase-I. He will review the environmental management arrangement arrangements and the environmental impact assessments (EIAs) i.Jsed for sector-specific water resources activities. He will evaluate environmental management tasks such as data collection monitoring, coordination and oversight; he will review the institutions legislation, and policies that are in place for protecting and preserving the environment. The groundwater specialist should have a background in groundwater modelling for shallow and deep aquifers and in groundwater utilization schemes. He will be responsible for reviewing the issues relating to groundwater supply and demand and also groundwater quality degradation. He will · assess the groundwater evaluation capabilities of local organizations including the quantitative and qualitative aspects' especially with the Kathmandu Valley. 20 of26 Appendix 1 Description and Terms of References of the Services The national team leader will work in concert with the expatriate team leader to set work schedules for implementation of the study. He/she will coordinate the work of the national and expatriate teams. Changes to the composition of the national team will be decided between the national team leader, the expatriate team leader and the chairman of the NSC. Besides working closely with other team members, he must participate in the transfer of technology to WECS staff as part of the overall technical assistance package. He should be experienced in the planning and coordination of overall water resources strategy and related issues including technical as well as socio-economic and environmental aspects.. The river basin planner will examine the concept of river basin planning using a holistic and integrated approach to water supplies availability (surface and groundwater), water demand and allocation for all sectors and attempt to recast the inventory assessments (in Phase-I) using a river basin basis and estimate water uses by category and class. He will review existing basin plans where these exist and prepare water balances, and examine the compatibility of water resources program and projects with the hydrologic system. The basin planner will work closely with the expatriate river basin planner and management specialist to set up at WECS the procedures for conducting basin plans. This will be done by undertaking a basin plan of one of the basins. He will interact with other professionals involved in the sociological and economical aspects of basin planning. The GIS specialist will review the various databases in the relevant government ministries engaged in aspects of river basin planning and the types of GIS work undertaken to date in Nepal. he will assess the hardware and software in WECS with the view of employing these to prepare or arrange for the preparation of GIS of water resources data to be used in basin planning and strategy formulation. He will recommend any upgrading of existing facilities and provide extensive training in the effective use of GIS. The national GIS specialist will work closely with the expatriate GIS specialist in the areas of GIS training and in the generation of data for basin planning. The specific TOR for individual experts are as follows: Terms of reference for Hydropower Expert r 1. Ways to enhance the efficiency of power generation and its distribution, improvement in load factor, reduction of system losses, etc. 2. Principles and criteria for setting fair electricity tariffs, ensuring cost recovery, reasonable profitability, affordability, effective metering of usage for different purposes, differential tariffs to encourage productive use and to discourage waste of energy. • 3. Joint ventures between the state agency and private investors, use.rs' groups, multinational companies. 4. Prospects and potentialities of hydropower export, specific steps required to promote hydropower export and impact on national economy from hydropower export. 5. Rural Electrification as basic input to rural development 6. Reducing cost of hydropower development, improvement in planning, design, construction, quality control, etc. 21 of26 7. Integrated development of water resources of each major river basin as the fundamental planning entity.· Terms of reference for Irrigation Expert 1. Systems for the conjunctive use of surface and groundwater resources 2. Possibilities for reducing the costs and risks of multiple use storage projects and maximizing their net benefits. 3. Improving water utilization efficiency, conjunctive use of surface and groundwater and other needed inputs for greater efficiency, demand management by positive incentives to economize water use and indincentives to discourage waste, improvement of on-farm conveyance and methods of irrigation through better operation and maintenance and service delivery. 4. Criteria for determining priorities of investment 5. Cost recovery of irrigation services 6. Reducing cost of irrigation projects, improvement in planning, design, construction and quality control. 7. Developing irrigation research and extension, generating and disseminating sound, practical knowledge of ways to improve crop production and water-use efficiency under irrigation. 8. Integration of irrigation water requirement and supply capability from river basin perspective and assessment of the need for inter-basin transfe~s. 9. Assess multiplicity of use of water and integrated development of water resources. Terms of reference for Water and Sanitation Expert 1. Improvement in planning, design, construction and quality control of water supply and sanitation projects • 2. Setting quality as well as quantity standards forthe supply ofwater for domestic use. 3. Prevention of water borne diseases and effective treatment of potable water. 4. Detecting sources and stopping contamination of water supplies. 5. Increasing efficiency in water utilization through reduction of water losses in storage and conveyance 6. Ways to encourage privatization of urban water supplies and community or users' group participation in all phases of water supply and sanitation. 7. Possible relocation of industrial plants most likely to contaminate water supplies to areas less likely to be affected. 8. Cost recovery of water supply and sanitation services. 9. Regulatory measures for efficientmanagement and use of ground water. 10. Awareness of recycling, conservation and re-use of water. 11. Integration of water supply and sanitation requirement in integrated water resources planning. 22 of26 Terms for Reference for MIS/GIS Expert 1. Need for a central information center equipped with and staffed to collect and concentrate all relevant data of the country's water resources. 2. Establishing agro-meteorological stations to measure potential evapo-transpiration in all important agricultural districts. • 3. Setting up a regular system of sediment sampling and analysis in major streams associated with present and prospective works. 4. Setting up a flood forecasting and warning systemto cover potential risk areas. 5. Organizing a regulatory and monitoring system for effective use and allocation of the country's major groundwater aquifers. 6. Conducting a basin-wise survey and inventory of the rivers of Nepal with respect to their potentialities for development and their requirement for river training works. 7. GIS/MIS framework for integrated river basin planning. 8. Promoting community participation in river training and watershed management programs. Terms for Reference for Environment Expert 1. The status of environmental database, standards and norms. 2. Assessment of environmental impact of government policy and program on water resource development. 3. Effective implementation of environmental guidelines, including the enforcement of IEA, EIA norms and standards. 4. ·Environmental audit regarding spatial and temporal dimension of water resources at local and national level. 5. Integrating environment into economic planning of water resources project. 6. Strengthening of Ministry of population and Environment. 7. Surveying watersheds of major rivers to observe changes in landuse patterns and man-induced environmental degradation. 8. Avoidance of excessive use of pesticide and potentially toxic agro-chemicals. 9. Safe sewage and solid waste disposal to prevent pollution of surface waters and groundwater. 10. Treatment of liquid waste for possible reuse in irrigation and recycling of solid waste. 11. Need for regulating measures for better management of flood prone areas. 12. Resolving inundation problems affecting border areas due to various types of intervention in the river across the border. 23 of 26 Terms for Reference for Financing and Macro-Economic Analyst 1. Given (a) the gap between domestic saving and investment (b) gap between the government revenue and expenditure and © competing claims of other sectors on available resources of the government, in the one hand and increasing costs of wwater resources development projects, on the other hand, how can the nation meet the estimated investment needs of water resources development in their multiple uses with projected targets as presented in the Phase I Study. 2. Given the track record of the past and the socio-political realities of the country, to what extent and through what feasible measures is it possible to bridge the above mentioned gaps and generate additional resources including probable earnings from hydropower for public investment in water resources development as visualized in Phase I Study. 3: In the light of the recent experiences, to what extent and through what sepcific and feasible measures can the nation generate additional resources for financing projected investment from domestic private sector. • 4. On the basis of recent experiences, to what extent and through what specific and feasible measures can the nation attract external resources in the forms of commercial and concessional loans, grant, foreign direct investment to meet .the investment needs of water resources development. 5. On the basis of analysis and assessment of all t~e four issues stated above, what is likely to be the overall resources position over the period of the next 20 years, taking into account the 20 years development perspective as outlined in the Ninth Plan Approach Paper of the NPC including its underlying objectives and GDP growth and other physical targets. 6. On the basis of the emerging overall resources position from the analysis as required under (v) above, is it possible to meet the estimated investment needs. If not possible, how and to what extent the sectoral targets need to be reviewed.and revised for balancing demand and supply of resources. 7. The development intervention in water resources sector like in any other sectors of the economy generates forward effects to other sectors and backward effects from other sectors due to the existence of sectoral linkages in the economy. For this a suitable integrated macro and input/output model should be developed taking into account the above six resource related issues. 8. Considering the major river basin as a fundamental planning unit, river basin optimization model should be constructed for maximization of aggregate net benefits to all users. If possible, such river basin model should be integrated with or at least related to macro-economic models. Other Economic and Financial issues 1. The need to reduce the high cost of development projects, determining optimal scale of projects, adopting realistic design and cost criteria, encouraging the participation of stakeholders, NGOs and private enterprising. 2. Possibilities of reducing the excessive dependence on foreign funding sources, granting incentives to private investors, encouraging joint ventures, participation of local beneficiaries, increased reliance on locally available expertise and materials. 3. Ways to ensure cost recovery of initial investment and coverage of subsequent costs of operation and maintenance, setting realistic and fair tariff, ensuing coverage of O&M costs, etc. 4. Ways to reconcile the interests of private investors with the national and community interests. . 24 of 26 5. Consideration of the possibility of issuing bonds to be offered to the public at attractive rate of return to help finance vital water resources development projects. Terms of Reference for Legal and International Issues 1. Enactment, enforcement and consistency of laws and Regulations concerning internal water rights - water rights and ownership issues are not clear lack of adequate subordinate or enabling regulation to implement legislation effectively, fragmentation and overlapping of enforcing agencies, question . of duration, conditions and transferability of water rights, mechanism for adjudication and resolution of rivalries and conflicts over water rights etc. 2. Land acquisition, compensation, resettlement and reliabilitation programme to respond to the needs and dignity of the affected community and holding of public hearing. 3. Regulations concerning the drilling of wells and pumping of groundwater and disposal of liquid and solid waste. 4. Precaution required. while entering into water treaties under Nepal Treaty Act 1990 and Constitution of Nepal, 1990. 5. Status of tributaries while negotiating the projects o n major rivers with neighbouring countries. 6. Question of advantages and disadvantages of piecemeal agreement relating to only one specific use of water without reference to its other uses (e.g. hydropower generation without reference to irrigation and flood control benefits downstream). 7. Determination of parameters for ensuring long-term national interest while negotiating water resources projects. 8. Examination of the potential advantages and disadvantages to Nepal of entering into a joint regional framework. 9. Questions related to exchange of data and prior consultations before undertaking any development works o n shared water resources. Terms of Reference for Institutions and Human Resources Development 1. Consideration of what changes might be made in the structure of Nepal's water sector institution to promote the national goals most effectively. 2. Assignment of clear responsibilities and linkages among the several agencies, departments, and professional categories involving in water resources development and management. 3. Need for an independent central water resources planning unit acting as a "Think Tank", providing necessary inputs to policy decisions and monitoring implementation of water resources strategy. 4. Simplified administrative procedures for expediting dealings of private investors with state agencies. .25 of26 5. Competitive bidding, negotiation, competitive negotiation process for selection of private developers. 6. Monitoring performance of private contractors and developers to ensure adherence to contractual terms. 7. Consideration of needs based engineering education in the country. 8. Consideration of establishing a national centre for water resources research. 9. Questions related to motivation and career satisfaction of employees. 26 of26
Table 1: TASK SCHEDULE WATER RESOURCES STRATEGY FORMULATION - PHASE-II STUDY Project Months Task Description 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 31 32 33 34 35 36 Inception/Mobilization 2 Phase-I Review 3 Revised Prioritization of Issues 4 Data Collection & Verification ,J i- - - l---+-------·--·----·-----·-----------1-- I--+--+_-_---j- __ - -+-f-_-++---+----l - - - - - - - - • -f---+-t---ll---+-+---1--+--l----+---l-l--l----+--l-1---+--+---+----l----l---\-l-+--+--1----1----1-- - - - 5 Development of Strategic Options 6 Evaluation Criteria & Models - - - - - - - - - - - 1 - - , - - - - - - - - - ---~r----·--1-- 7 Evaluation of Options & Testing --·-- - - - - - - - - - - - - - - - · - - - - - - - - - - - _____,, __ - - -f--+--+--1--- - -- - -- -- 1-'--1----1---J-l---t-+---+--l--+--+--+-f--+--+----+--+--+---I----- - --- ,~ 8 Stakeholder Workshop (Review of Evaluation) 9 Preparation of Recommendations . 10 Review of Recommendations (NSC) - - - - - - -- --- -. -- --------1---l-l~I------•-~- -·----;~-- ---·-------t---1---,-+--_,_____,___,_____ 1 - - '-'-- -1-1---+--+--1--- ----- - - --- -- -- - - -- · · - - ---- · - - - - - - 1 - - --1-- --- ------- - - - -·------ -------- --·---..- - - - ~ - - - - - - - - --•1--t-+--1- - · · - - - -- -- - - - ·· · - -- • - L - - L - •••• f--+---l----+---1-- ···- i---- --- • - -- - - - __ _,_--+---+---4----1--<I--I 11 Review of Existing Environmental Strategy -+--- - - . - - - ---·········1--1--+--~---l-i.- _____l - _ --l---ll--+--+-+--o--t--+-·!--1------ ---- --- ·- - -- ·-- - - - 1 - - - 12 Choice of Options (Government) ,~I ---1---1---l--1- -· --- - - -- --- ·- - - - --- ·----1-1--; --1-------------- ---· -11---1--1---1---1-7---- - - t - - --1--1-1.---1---- - 13 Finalization of Water Resources Strategy Doc. _ _ ______ _,__,__ 14.. l~t~gr;t~-Ri~-;;~ ""iii~-s--in-P-la_n_(_1--B-a-s-in_)_______ ---_----,---+-·-+,_-,t-_=-_:t=-_= ___:t __=-=t=::::t=--·-=·-1=-1- - ·~~ - - - -'~~w~-=-~ --~ - -- - - --t---+------+----- ~-----_._-•-_.__,-_---_-I--_,~~~=-= 15 TOR - National Water Plan ! - - + - - - - - - - - - - - - - - - - - - - - - --- ----- ····-. · - - 1 - - - - · - - -1------- - __,_I-,____ - - -·-. - - - --- - t - t - - - - - · •• -- - - - - - - - - - ---l--+--+-- -1-1---1---1- 16 National Water Policy Formulation . ____________ -~- ___J___,_____,___J'--' --+---1'=----i+_- __ -+----<'~
: _e-:_ _.:-_.:-,..:....:..:__:_ :...:_,_:_ _:.._ .:....: .:....::. ~-=--c__'."_ 17 National Water Plan -----1---l--1----1-- .----· --- - ~ - . - --1- -- -·· --~--1-i....:.._ -·•-1-f-- -- - - - - - .. ,_:__:___ ,....:___: :__: :_:'_l_:__-:_ __:_.:i...:___: .:....:_ :_:____:_ :._ 18 Regional Workshops/Presentations -1-----------·-·--··-- -· · · - · - - - - - • - ' JI 19 National Steering Committee Review, etc. - Continuous Activity . . . . Intermittent Activity ..,, Inception Report ..,2 Phase-I Review Report ..,3 Summary Report of Options Evaluation Results T4 Workshop Proceedings ..,5 Strategic Options Recommendations & Consultants Reports T6 Synthesis of Strategy Report (Draft) -· ----~ --- - -- -f---1---1--1--1-- · - • 1 - - - - - - - 1 - l - ____ , _ _,____,__,_ T7 Water Resources Strategy Report Ta Example Basin Plan Document (Draft) ,tA Example Basin Plan Document (Final) T9 Terms of Reference - National Water Plan "f'0 Draft National Water Policy Document T1 NSC Start-up Meeting 15 of 24 -----.. - - -------- - .. -------· ATTACHMENT 2 LIST OF CARRYOVER SUB-PROJECTS FROM ILC TO NISP BL Ill CREDIT - 2144 NEP WESTERN REGION A. REHABILITATION SURFACE SUB PROJECTS IRRIGATION LINE OF CREDIT PILOT PROJECT CARRY OVER SUB PROJECTS TO NISP (HILLS) Name of Subproject Command Project Status by July'97 Initial Cost Revised Expenditure as of July 1997 Area Approved Under % Estimate Cost NRs. ('000) Ha. Construct. Campi. NRs ('000) NRs ('000) FIA DOI Total KASKI Chhelang 40 Oct'92 Yes 62 905 1,745 179 1,852 2,031 Silibang 120 Dec '93 Yes 65 4,525 4,309 232 2,322 2,554 TANAHU Kalikatar 100 Mar'96 Yes BO 11,200 17,600 350 2,300 2,650 PALPA Rahabas 80 Mar'94 Yes 86 3,587 512 2,430 2,942 Bardale 100 Dec'93 Yes 86 4,499 5,614 1,030 3,579 4,609 Darpuk BO Mar '94 Yes 87 3,590 4,711 427 2,794 3,221 SYANGJA Chhangchhangdi 250 Apr '93 Yes 5 7,369 - 300 300 Kuntika 60 Nov '93 Yes 92 1,791 3,582 333 2,774 3,107 Pakan Phan! 125 Nov'93 Yes 95 3,152 311 2,012 2,323 Sataun 60 Feb'94 Yes 93 2,126 111 1,692 1,803 LAMJUNG Mungre 30 Mar '94 Yes 60 1,419 111 657 768 Mahabir BO Dec '94 Yes 70 2,959 40 2,223 2,263 TOTAL (HILLS) 1125 12 12 47122 3636 24935 28571 A. REHABILITATION SURFACE SUB PROJECTS RUPANDEHI Ghaghra 2000 Dec '92 Yes 79 8,084 12,200 1,213 7,952 9,165 Khadwa-Motipur 1200 Dec'95 Yes B 10,086 - 3,030 3,030 KAPILVASTU Bhutaha 2500 Mar '93 Yes 80 2,346 4,574 6 2,952 2,958 TOTAL (TERAI) 5700 3 3 20516 1219 13934 15153 I TOTAL 11 6825 15 15 67638 I 1 4855 1 38869 1 43124 1 file: ca-wes.xls ATTACHMENT 2 Sheet 1 of 6 Required budget Programme of complilion by for NISP Nrs('O00) 1997/98 1998/99 1999/2000 34515 1 ao215 1 4400 1 BL Ill CREDIT- 2144 NEP MID-WESTERN REGION A. REHABILITATION SURFACE SUB PROJECTS CARRY OVER SUB PROJECTS TO NISP (HILLS) Name of Subproject Command Sub project Status by July'97 Initial Cost Revised Expenditure as of: July 1997 Area Approved Under % Estimate Cost NRs ('000) Ha. Constr. Campi. NRs ('000) NRs ('000) FIA DOI Total SURKHET Sahare 150 4442 Kuire Kathagari 30 1337 Chhinchu 135 9270 Mehalkuna 300 Mar'95 Yes 77 14,229 18,962 435 9,703 10,138 Mesina Patare 45 Jun. '95 Yes 73 1,836 2,344 - 1,348 1,348 DAILEKH Gitachaur IP 475 28,471 DANG Dangali Cheap Kula 868 Mar'96 Yes 10 27,998 - 639 1,448 2,087 JAJARKOT Nalgad 80 Dec'95 Yes 95 2903 3367 435 2134 2,569 Sirpagaon 45 Dec '95 Yes 46 2,645 - 100 922 1,022 SALYAN Bhumka julaa 110 1993 Yes 49 3,186 7200 759 4,219 4,978 Bhanjkanda 80 1993 Yes 53 2,395 7800 12 4,633 4,645 Damdwali 160 Dec '95 Yes 69 4,073 4622 405 2,817 3,222 Himchaur 52 Dec'94 Yes 87 1,560 50 1,472 1,522 PYUTHAN Lugri Madi 400 May '96. Yes 19 41,632 - 78 7,766 7,844 RUKUM Machhami 302 Mar'94 Yes 90 9047 9443- 712 7098 7,810 Alhbish Danda 150 Mar'95 Yes 72 7,544 253 4,039 4,292 Fuguru Jyla 40 Dec '95 Yes 28 2,092 165 469 634 San Chur 100 Mar '96 Yes 10 5,566 147 546 693 File; ca-mwes.xls Sheet2 of 6 Required budget Programme of completion by for NISP Nrs('000) 1997/98 1998/99 1999/2000 4442 1500 1500 1442 1337 500 837 \ BL Ill CREDIT - 2144 NEP MID-WESTERN REGION A. REHABILITATION SURFACE SUB PROJECTS IRRIGATION LINE OF CREDIT PILOT PROJECT CARRY OVER SUB PROJECTS TO NISP (HILLS) Name of Subproject Command Sub project Status by July'97 Initial Cost Revised Expenditure as of: July 1997 Area Approved Under % Estimate Cost NRs ('000) Ha. Constr. Completed NRs ('000) NRs ('000) FIA DOI Total ROLPA Gajulfagam 86 95/96 Yes 58 3,185 • 4042 - 1,731 1,731 Lodhchaur 30 95/96 Yes 47 2,311 5535 - 1,009 1,009 OT 45 Mar '96 Yes 86 1,456 2256 - 1,075 1,075 MUGU Kachche 18 Mar '96 Yes 67 1,263 - 848 848 Kawa 40 Mar '95 Yes 35 2,734 - 969 969 HUMLA Kharpunath 140 1995 Yes 36 8,046 - 125 3,790 3,915 Kalagad 225 Dec'95 Yes 8 11,988 - 6 750 756 KALIKOT Kalapani 82 Jan'96 Yes 40 5,058 302 1,713 2,015 TOTAL (HILLS) 3873 22 22 206,267 4,623 60,499 65,122 A. REHABILITATION SURFACE SUB PROJECTS (TERA/) BARDIYA Dhodhari Tartal 3825 Feb '94 Yes 86 32,015 43200 3,643 23,629 27,272 Kuthura Lagania 400 Mar'95 Yes 74 6,900 9,126 600 5,654 6,254 BANKE Raj Kulo 1460 Dec. '95 Yes 14 27,057 28,827 - 3,985 3,985 Jhigari Bangesal 80 Jun'96 Yes 75 3,281 3,568 - 2,144 2,144 TOTAL (TERA!) 5765 4 4 69,253 4,243 35,412 39,655 TOTAL 9638 26 26 275,520 8,866 95,911 104,777 File; ca-mwes.xls ATTACHMENT 2 Sheet 3 of 6 Required budget Programme of completion by for NISP Nrs('000) 1997/98 1998/99 1999/2000 BL Ill CREDIT - 2144 NEP FAR WESTERN REGION A. REHABILITATION SURFACE SUB PROJECTS IRRIGATION LINE OF CREDIT PILOT PROJECT CARRY OVER SUB PROJECTS TO NISP (HILLS) Name of Subproject Command Sub Project Status by July '97 Initial Cost Revised Expenditure as of: JULY 1997* Area Approved Under % Estimate Cost NRs ('000) Ha. Construe. Comp!. NRs ('000) NRs ('000) FIA DOI Total DADELDHURA Galphagad 300 Nov'93 Yes 79 8,998 18,066 1,000 11,390 f2,390 . Sakayal 80 Nov'93 Yes 43 2,395 5,524 450 3,663 4,113 Sirse 300 Jan'96 Yes 5 22,611 29,500 145 2,218 2,363 Pantura 200 Jan'96 Yes 5 13,726 19,500 62 1,803 1,865 Dadaban 140 Jan'96 Yes 5 10,659 13,300 60 1,791 1,851 DOTI Ghodelash 50 Jan'96 Yes 41 4,861 219 2,900 3,119 Gandigad 150 Jan'96 Yes 12 7,822 - 4,879 4,879 BAITADI Nuwakot 120 Jan'96 Yes 26 5,955 18,588 555 3,714 4,269 BAJHANG Agragon 50 Jan'96 Yes 40 3,155 5,726 375 2,325 2,700 Jhapa Kafelseri 100 Jan'96 Yes· 16 9,636 9,136 375 5,525 5,900 DARCHULA Sipti 200 Jan'96 Yes 10 17,296 519 4,436 4,955 Lali 389 Jan'96 Yes 1 11,354 1,000 Jude 206 Jan'96 Yes 7 5,972 6,900 99 3,005 3,104 BAJURA Kolti 80 Jan '96 Yes· 25 3,983 183 3,085 3,268 Korda 100 Mar '96 Yes 27 4,999 190 3,546 3,736 TOTAL (HILLS) 2456 15 15 133422 4232 55280 58512 FILE: CA-FWES.XLS ATTACHMENT 2 Sheet 4 of 6 Required budget Programme of completion by for NISP Nrs('000) 1997/98 1998/99 1999/2000 BL Ill CREDIT - 2144 NEP FAR WESTERN REGION A. REHABILITATION SURFACE SUB PROJECTS IRRIGATION LINE OF CREDIT PILOT PROJECT CARRY OVER SUB PROJECTS TO NISP—TERA/) Name of Subproject Command Sub Project Status by July '97 Initial Cost Revised Expenditure as of: JULY 1997* Area Approved Under % Estimate Cost NRs ('000) Ha. Construe. Campi. NRs ('000) NRs ('000) FIA DOI Total KAILALI Pratapapur 650 Jah'96 Yes 12 13,000 375 5,275 5,650 KANCHANPUR Kalapani 400 1993 Yes 92 7,858 9,868 1,435 7,393 8,828 Malairya Nala 600 Mar '95 Yes 72 10,260 1,236 6,257 7,493 Jarahi Nala 150 Jan'96 Yes 43 3,565 4,448 270 2,049 2,319 Hathi Thala 100 Jan'96 Yes 40 2,966 6,000 150 1,944 2,094 TOTAL (TERAI) 1900 5 5 27389 3466 22918 26384 TOTAL 4356 20 20 160,811 7,698 78,198 .84,896 B. TURNOVER SURFACE SUB PROJECTS (HILLS)· DOTI Latamandu 120 Apr' 95 Yes 56 1,457 2,504 79 1,574 1,653- Kadamandu 140 Apr' 95 Yes 63 3,538 4,807 173 3,142 3,315 Bandangrasen 155 1995 Yes 58 981 1,893 72 1,366 1;438 Dipayal East 55 1995 Yes 34 363 1,082 54 314 368 BAITADI Dileswari 330 Nov'93 Yes 93 9,486 13,797 1,826 10,954 12,780 TOTAL 800 5 5 15825 2204 17350 19554 TOTAL SURFACE 5156 25 25 176,636 9,902 95,548 104,450 File: ca-fwes.xls • Final expenditure figure may vary Required budget for NISP Nrs('000)
1,492
1,017 4398 138,529 ATTACHMENT 2 Sheet 5 of 6 Programme of completion by 1997/98 1998/99 1999/2000
400 617 1200 3198 38,645 68,742 22,755 S.N. Region/District Cluster WESTERN 1 Nawalparasi Jahda- Jamunia 2 Kapilvastu Patna Patraiya Motipur- Pipra Sub Total MIDWESTERN 3 Dang Goberdiya Tarigaon Sonpur Lalmatiya 4 Banke Sitapur-Rathapur 5 Bardia Shantipur-Jamuni Sub Total FAR WESTERN 6 Kailali Rajpur 7 Kanchaupr Jhallari Subtotal Grand Total File: ca,y-GW.xls IRRIGATION LINE OF CREDIT CARRY OVER SUBPROJECTS TO NISP (GROUND WATER SCHEMES) Tubewell Type Ha , Incomplete Components units Pump House Dist.Syst Electri. Sheet 6 of 6 NRs' 000 Amount Remarks Reqd in NISP COST ESTIMATE OF 12 MODEL SUB-PROJECTS AND COST ESTIMATE OF 9 APPRAISED SUB-PROJECTS Cost Estimates of Model Sub-Projects 1 2 3 4 5 Surface FMIS Description • Kalikatar Siyari Rajkulo Chhinchu Kateni Hills Terai Terai Hills Terai Maj. Reh. Min. Reh. Maj. Reh. Min. Reh. Maj. Reh. (ha) 105 822 1,460 135 250 1. Civil works a. Irrigation System 7,805 9,633 52,755 8,829. 7,963 b. Farm Roads 156 193 1,055 177 158 c. River Training 234 289 1,583 265 237 d. Environmental Protection 345 242 1,009 317 230 e. Micro-Hydropower 477 - - 614 - f. Drinking Water supply 239 - - 307 - Sub-Total 9,256 10,357 56,402 10,509 8,588 h. Planning, F/S & Design 290 342 1,860 330 281 Total (civil works) 9,546 10,699 58,262 10,839 8,869 2. Technology Research 12 91 162 15 28 3. GIS Pilot 35 274 487 45 83 4. Hydrological Study 479 1,390 6,660 616 1,140 5. Vehicles and Equipment 182 530 2,467 234 433 6. Water User Organization 95 289 1,321 122 226 7. Private Sector/NGO Strengthening 6 19 78 7 13 I 8. Agricultural Extension 139 414 1,939 179 332 9. Training & Study Tour 555 1,547 5,323 714 1,322 10. Technical Assistance 380 1,108 5,207 478 892 11. M&E/ MIS 10 39 133 12 23 TOTAL INVESTMENT COST 11,439 16,400 82,039 13,261 13,361 12. Recurrent costs 301 2,351 4,176 387 715 a. Staffing cost 101 789 1,402 130 240 b. O&M cost 200 1,562 2,774 257 475 BASE COST 11,740 18,751 86,215 13,648 14,076 1 of 2 6 7 8 Groundwater FMIS Seltada Udain D. Jhallari Hills Terai Terai Maj. Reh. S/DTW DTW Turn-Over Sange Pat. Gwar Kho Hills Terai (A) (NRs '000) 11 12 PJM Rampur Narayani Phant Terai Hills Cost Estimates of Appraised Model Sub-Projects 1 2 3 4 5 6 Surface FMIS Groundwater FMIS Description Rajkulo Siyari Kalikatar Chhinchu Udain D. Jhallari Terai Terai Hill Hills Terai Terai Maj. Reh. Min. Reh. Maj. Reh. Min. Reh. DTW STW (ha) 1460 882 105 135 45 10 Civil works 1. Irrigation System 51, 155 11,660 9,340 8,780 1,570 210 2. Hydrological Study 300 180 20 30 10 2 3. Vehicles and Equipment 8,470 5,140 370 793 365 40 4. Water User Organization 1,035 625 70 95. 35 8 5. Private Sector/NGO Strengthening 265 160 20 25 5 1 6. Agricultural Extension 3,560 2,150 255 330 110 25 7. Local Training 6,140 3,710 440 570 190 40 8. Technical Assistance 5,370 3,245 385 495 160 40 9. M&E/ MIS 130 80 1 1 4 1 10. Recurrent costs 4,500 2,730 195 421 200 60 BASE COST 80,925 29,680 11,096 11,540 2,649 427. NRs./ha 55 34 106 85 59 43 7 8 ATTACHMENT 3 (8) (NRs. '000)
Turn-Over PJM Sange Pat. Gwar Kho Rampur Hills Terai Phant Hills NISP IMPLEMENTATION ORGANIZATION CHARTS/ORGANOGRAMS FOR NISP, DOI, SMIP-111, DHM AND DOA DHM (DG) Basin Office Sub- Basin INISP IMPLEMENTATION ORGANIZATION CHART I ATTACHMENT 4 (A) NPC National Steering Corrml ttee National Water Planning Unit PCO (CPCO) ,, • : 1 • ,.__..,.._.DOI, DOA, OHM, Coordinators Centre TA Team •(Consu Ilanl) Regions TA Team (Consultant) OIOs WUA Ex.Cammi l MOWR, MOF, NPC, MCA, MOPE, MOST All DDGs/DDI, DDG/DOA SMIP-111 (PM) DOA, tlPC, ADBN, OHM DOA DG DOG Plann. RAD DADO SSC Gen.Assemt------------'~-------------' * Since the Chairman of SMIPB is the Secretary of MOWR, the board can function having most members of PCCC. Nole: Acronyms are attached. MIT , - - - - - - - RI ITraining I I 1lncharge I l ................ J Fi le: c:\i lc\organgrm ORGANOGRAM Institutional Strengthening (DOI) ATTACHMENT 4 (B) PCO (CPCO) ,------------------------ Central OfWM 1J&M STUDY SUBSIDY STUDY TA Team Consultants Regional TA Team NGO 010, GWFO, PJM, OFWM, NGO
IMO PDMED GWO .- ··-· ·-- I OS, .JT,AO/NGO.WUA IOISTRICI ! GWFO IOFWM IEAM I 1 ............. J Finance & Admin. Gen.Adm.Sec Personnal Adm. Section Gen. Procurement Section ORGANOGRAM OF SUNSARI MORANG IRRIGATION PROJECT-Ill IMPLEMENTATION - Planning Survey & Design Dvision Account Sec. Revenue Section Sunsari Morang Irrigation ~roject-111 . PROJECT MANAGER i. Water Mgmt/Inst. Dev. Division, Biratnagar WM Section Monitoring & Evaluation Inst. Development Section· lnaruwa Section Jhumka Section Duhabi Section Land Acquisition Section Water Charge Coll. Section O&M Division, Biratnagar Bahuni Sub-division Banigama Sub-division Duhabi Sub-division Jumka Sub-division lnaruwa Sub-division Mechanical Section TA Team (Consultant) Headworks Division, Chatara Chatara Sub-division Chakarghatti Sub-div. ATTACHMENT 4 (C) Const. Division, Biratnagar Biratnagar Sub-div. Harinagara Sub-div. ORGANOGRAM INSTITUTIONAL STRENGTHENING - DHM (Hydrological Studies) ATTACHMENT 4 (D) DG OHM l PIC ..................................................................... ~-D_G_ID_O_I~ TA Team (Consultants) Mahakali, Kamali and West Rapti Basin ~--~--~ Coordinator cum Project Manager Hydrological Studies ( DOG, Hydrology Division) Narayani Basin Computer Section Hydrologist (2 nos.) Meteorologist (I no) Hydrologist (I no) Meteorologist (I no) Technicians Field Assistants Gauge Readers Technicians Feild Assistants Observers Technicians Field Assistants Gauge Readers Technicians Field Assistants Observers Account Section (Project Accountant) Hydrologist ( I No) PCO (DOI) Senior Divisional Hydrologist ( I no) Sedimentologist/ Chemist—lno) DOA (DG) ORGANOGRAM INSTITUTIONAL STRENGTHENING DOA (Agricultural Extension) DOG DDG Adminstration Planning RAD DADO ASC/ ASSC - ,, ,, •Ten Technical Agriculture - - ,, Divisions Extension -; ,, -- "' Division NISP-PIU (DOA) NISP -PCO (001) --- -- --------- - ---~ - - -- ------------------------- Farmers Groups (WUG) ATTACHMENT 4 (El PIC DG/DOI RID
Sub-Project Site ATTACHMENT 5 SPECIFIC TOR (ROLES AND RESPONSIBILITIES) OR KEY IMPLEMENTING OFFICIALS UNDER PIU, IMD (HRDTB, RTDB, SMB) ATTACHMENT 5 SPECIFIC TOR (Roles and Responsibilities) OF KEY: IMPLEMENTING OFFICIALS • UNDER PIU, IMO (HRDTB, RTDB, SMB) TERMS OF REFERENCE FOR RAAC MEMBERS The individual Terms of Reference of each members of the RAAC is given below which is to serve as a guide in performing their roles and responsibilities within the committee meetings. 1. 2. 3. 4. Role of Project Manager (Regional Irrigation Director) i. Before sending the Sub-Project reports, he should ensure that all the members of the MIT have scrutinized their part of the reports as per their TOR and all technical and written comments fully answered by the D1O staff. Besides MIT's checking, the PM himself must be fully satisfied· with all the aspects of the report as per the procedures and criteria of the program set-out in the PAD. ii. If need arises he should arrange a visit to the Sub-Project site(s) along with other members of the RAAC. iii. As lead member and Co-ordinator of the RAAC, he is responsible for deciding the convenient date for the meeting after consultation with other members of RAAC. iv. the Sub-Project reports should be sent to the other members at least 15 days in advance of the meeting which has to be returned to the MIT after the RAAC deliberations. Role of Regional Agriculture Director i. He should ensure that the agricultural data for preconstruction and post-construction phases are realistic and that they are achievable or have been achieved in already completed Sub-Projects within the Region. ii. He may form his own prioritization criteria of Sub-Projects based on information derived from the concerned DADOs and should discuss this in the RAAC meeting.. Role of ADBN/Superintendent (or Controller) i. To ensure whether the Sub-Projects under appraisal have received earlier assistance through ADBN and if they are being repeated in NISP program within period as specified in the IP (revised 1997). ii. To assist in the provision of loans to the farmers of Sub-Projects in order to meet their matching contributions for the construction or for major repairs. iii. To evaluate capacity of WUA to repay loan taken out or to be taken. iv. To evaluate economic analysis of the sub project as per their outlook. Role of Regional National Planning Director or Office lncharge i. To ensure co-ordination of agencies at regional level associated with the irrigation sector program. ii. To ensure that Sub-Projects selected support the national goal and objectives as set out by the NPC in general and objectives of the NISP in particular. 1 of? MIT TEAM LEADER The MIT will be headed by a Senior Divisional Engineer (SOE) of the regional directorate. There may be more than one MIT leader depending uppn volume of works and number of districts within the region under NISP. His duties and functions are as follows: i. He will liaison between the implementing DIOs/SPIUs/GWFOs with the Project Manager and will assist him (PM) to assure full technical control over DIOs/SPIUs/GWFOs staffs involved directly in the implementation of NISP program. ii. He will also assist the PM in providing guidance and leadership on the implementation of participatory approach to irrigation development and system management improvement program in the region such as TO and PJM. iii. He will receive policy guidelines from the central DOI through the PM and effect its disseminations to the concerned DIOs/SPIUs/GWFOs who in turn would disseminate it effectively to their staff and to grass-root of the NISP program in the potential areas. iv. He will scrutinize the feasibility reports or detail designs of the sub-projects and process for RAAC appraisal and/or approval. v. Before recommending to RAAC he will visit the site along with other members of MIT and verify the technical and economic Sub-:-Projects proposed components. vi. He will make regular visits of DIOs/SPIUs/GWFOs (at least twice in a year) for general supervision and monitoring of ongoing activities of NISP within the district(s). vii. He will also assist in carrying out the annual trainings at the RID/RTU for the D.10 senior staffs and see thatthey trickle it down to their other frontline staff and WUAs. viii. Also assist the regional TA Team in the selection of appropriate NGOs to be engaged for the institutional strengthening activities of WUAs. IRRIGATION ENGINEERS OF MIT There will be between two to three Irrigation Engineers in a MIT depending upon the volume of works within the region. The Engineers should have at least 4-5 years of service experience and should have exposure and working experience of development of medium and minor irrigation schemes on participatory approach and sector program. In general, he will carry out the following functions and duties. i. He will assists MIT team leader in discharging his technical duties such as in investigations, design Sub- Projects preparation and cost estimate updating ·and in construction and implementation of sub-projects by the Sub-PMs. ii. The Sub-Project reports presented for RAAC appraisal will be fully reviewed and scrutinized (technical part) by him on behalf of the team leader. iii. As the team leader can not afford time to go to each sub-projects or attend the DIOs on their call to address technical issues or make regular visits to supervise the ongoing activities, and in such instances the engineer will represent the team leader. However, written direction or suggestion should be forwarded to the Sub - PMs under the signature of the team leader since many Sub - PMs might be senior to the Irrigation Engineer. iv. He will receive instructions and guidance from the Team Leader related to any other matters related to the NISP program. v. The PM may also ask him to do some other jobs but through or under intimation to the Team Leader. vi. He will make routine visits of ongoing sub-projects twice in a year with the Team Leader or without him for removal of any bottlenecks or for regular monitoring of ongoing activities. 2 of7 AGRO-ECONOMIST The Agro-Economist would perform the following tasks. i. Assist and review economic and financial analysis of sub-projects prepared by Sub - PMs (DIOs/GWFOs) Refine, if found necessary before submitting to RAAC for appraisal and or approval. ii. Assist DIO in conducting agro-economic surveys for feasibility studies. and monitoring and evaluation purposes (PBME). Assist in the data processing of agro-economic surveys within the Sub-Project of the region. iii. Assist RIDs & RADs in establishing a monitoring and evaluation system of benefit and impact assessment. iv. Update crop-budgets and prices used in the economic and financial analysis as required by DIOs. v. Ensure adoption of appropriate risk and sensitivity analyses in the feasibility study report carried out by the DIOs. Refine the economic evaluation of feasibility study reports prepared by DIOs, if found necessary before submitting to the RMC. vi. Assist in establishing agro-economic databases in the DIOs and RIDs. vii. Assist in carrying out the agriculture related trainings at the RID/RTU or at district level. Assist DIO in assessing the need for development of agricultural marketing outputs within the ILC areas. SOCIOLOGIST/TRAINING COORDINATOR The Sociologist will be responsible for promoting farmer organizations, and in the mobilization of their resources for the purposes of developing sustainable irrigated agriculture within sub-project areas. His specific duties will beto: i. Assist the DIO AO/NGO in organizing farmers to mobilize local resources for investment in the NISP • Sub-Project Development. ii. Assist field staff in encouraging farmer participation at each stage of sub-project implementation process. iii. Undertake orientation training to AOs and FOs (if there will be no NGO) on the philosophy, concept, objectives, sub-project implementation procedures, and monitoring and evaluation techniques. iv. Frequently visit the sub-project sites with DIO/GWFO staff and facilitate interaction with the farmers on their problems, .concerns and promote solutions. He will also assist in solving the problems encountered by AOs and FOs. v. Assist in improving the co-ordination and linkages between DOI staff and line agencies at the sub-project, District and Regional Levels. vi. Encourage the promotion of women beneficiary participation in the sub-project implementation and management through WUNexisting CBO within the locality. vii. Supervise socio-economic baseline surveys undertaken at feasibility stage by the DIOs, monitor the accuracy of data collected and evaluate the conclusions reached.. viii. Guide the NGO if engaged for the D1O Sub-Projects in the conduct Participatory Social Assessment Study of the selected Sub-Project before construction stage in accordance to the guidelines for PSA. ix. Assist in carrying out of the PBME at post-construction stage. ENVIRONMENTALIST Since most of the sub-projects under NISP are going to be of rehabilitation types, their implementation are not expected to cause adverse environmental impacts. However, major rehabilitation/large Canal schemes in the •hills are susceptible to cause adverse affects as a whole which will have to be mitigated. With the growing concern about environment, environmental mitigative me~sures are to be an integral activities of NISP sub-projects where found essential. Therefore, the environmentalist, geo-technical engineer stationed in each RID will have the following role to perform. 3 of? i. To advise and train D10 overseers in carrying out the Initial Environmental Examination (IEE) at the time of identification stage by filling up the form developed for IEE (refer detailed Procedural Guidelines). ii. Scrutinize the feasibility report/detailed design report of a sub-project coming to MIT for RAAC deliberation and check if the National Environmental Impact Assessment (EIA) guidelines is followed in • case an EIA was found to be carried out by the result of IEE. iii. To see if the sub-project proposed would not cause direct or indirect threats to ecologically sensitive areas and appropriate environmental measures have been incorporated in the project designs and cost estimates. iv. Assist the DIOs in the preparation of detailed designs and cost estimates of sub-projects targeted on introduction of appropriate and environmentally friendly technology and the division of work responsibilities between WUAs and the DOI for all stages of sub-project development related to environmental preservation. v. Guide the NGO (if engaged) to assist WUAs in introducing improved environmental practices including the selection and acquisition of suitable planting materials/species. vi. Carry out training for DOI staff on the need for and use of environmental protection works including the use of both structural and vegetative measures.· vii. Assist the NISP regional, district and project staffs in the use of Nepal SPWP Manual No. 1: A Participatory Approach to Environmental Protection Measures for Hill Irrigation Schemes in Nepal (prepared by ILO for HMGN). viii. In carrying out the above mentioned duties make site visits of sub-projects area as needed along with MIT members. HYDROGEOLOGIST A Senior Hydrogeologist will be called upon from the Central D01-GW Division for the deliberation of MIT in case of groundwater schemes being scrutinized. In particular his role will be: i. To scrutinize and endorse the feasibility report of the GW-schemes before appraisal by the RAAC. • ii. Scrutinize the detailed design of hydrogeological and pump installation component of the scheme before approval by RAAC or DOI as the case may be. iii. Make field visits under the GWFOs where drilling works are ongoing and advise on any hydro- geological problem encountered. iv. Make field visits and advise in the rehabilitation of the problematic tubewells not giving the tested and design discharge. PROJECT MANAGER (PM) The RID is designated as Project Manager for the implementation of Irrigation Sector Infrastructure and Supporting Infrastructure sub-component of NISP Sub-Projects within the region. Some of the sub-components such as Agriculture, Hydrological studies will be implemented by the DOA & OHM by their setups. He will however, continue to act as administrator and director of all other irrigation related activities of DOI within the region. In accordance with the authority of a PM of NISP, he will carry out the responsibilities of the post as follows: i. delegate implementation responsibility of Sub-Projects costing upto NRs 10.0 million to DIOs as per the existing financial rules and regulation of HMGN ? ii. exercise full staffing and administrative control over Sub-PMs/D10 Chiefs iii. ensure inputs and co-ordination from DOA and other agencies at regional level. iv. approve TOR for Sub-Projects preparation, and for detailed design by Local Consultants if the situations is warranted. v. prequalify Local Consultants for works of NISP (feasibility study and or detailed study) that cannot be managed by RID/DIEs. vi. organize and support training programs conducted at regional level (RTU) by different agencies, such as TA Team, HRDTB or NGO deployed for this purpose. 4 of7 vii. on recommendation of the MIT he will ·call a RAAC meeting for appraisal and approval of Sub-Projects. If needed he will arrange visit of Sub-Project sites with RAAC members before appraisal and also at the commissioning stage. viii. on recommendation of MIT approve Sub-projects' Project report/detail/tender drawings and designs as per delegated authority from DOI in accordance with the provisions of the PAD. ix. visit sites along with supervision missions from World Bank and DOI (central). x. compile all accounts of expenditures and arrange to receive SOE from all Sub-Project Managers in time for processing of withdrawal and prepare financial reports. xi. Submit withdrawal application for timely reimbursement by the World Bank. xii. Arrange for audit of account and compile reply of any objections. SUB-PROJECT MANAGER (Chief/GWFO) A Sub-Project Manager will be co-implementor for irrigation development related activities of the NISP within his jurisdiction along with DADO who will be responsible for implementing the agricultural component of the Project. Depending on the number of Sub-Projects and volume of works, the Chief of the DIO will be designated as Sub-Project Manager of NISP works within the district. He should have adequate staff resources to undertake Sub Project identification, project designs, construction and post-construction monitoring. Similarly GWFO incharge will be designated as Sub PM for GW related activities. Among other duties of DIO/GWFO a Sub-Project Manager of NISP will perform the following duties: i. will make arrangement for co-ordination and inputs for NISP activities from DADO and other li_ne agencies at district level. . . ii. Arrange to conduct WUAs trainings in co-ordination with DADO, Sociologist, AOs and NGO/CBO as the case may be iii. disseminate NISP program objectives to grass-root users, including condition of Govt. support and responsibility and obligation of farmers to receive the NISP supports. iv. Receive demand application, table screen and decide for identification study with the help of District Agriculture Office. His AO/OS would assist farmers in updating request forms at the identification study of the Sub-Project. v. Screen, discuss and select Sub Project for feasibility/detail study in the District Appraisal Committee (DAC). vi. Convene DAC meeting and prioritize Sub-Projects for further studies and processing. vii. Get advice/suggestions from MIT on project preparation, feasibility studies or detailed designs of Sub-Projects. viii Present Sub-Project reports to MIT/PM for review, comments, suggestions, etc. before appraisal by RAAC and modify if needed as per MIT suggestions. ix. Prepare working design and drawings for presentation to MIT/PM for their approval before actual commencement of construction works. Estimates of approved drawings designs can only be approved by Sub-Project manager as per delegated authority. x. Implement the Sub-Project(s) as per the prevailing HMGN's rules and regulations and following strictly the Procedural Guidelines prepared for NISP. xi. Submit SOEs trimester basin to the RID for making withdrawal application. xii. The DIO will make a translated version (Nepali) of BOQ (including brief description of specifications) to the WUAs at the time of agreement. xiii. Arrange to impart trainings to WUAs on rehabilitation and construction activities, post-constructional activities and assist WUAs in establishing linkages with agricultural extension agencies through M&E process. JOB DESCRIPTION OF ASSOCIATION ORGANIZER (AO) There is one post of AO in each D1O. However they are not filled up with permanent cadre. The post is very responsible and warrant a versatile person but the qualification do not commensurate the job. 5 of7 The post of an (AO) is mainly concerned with mobilizing users during different phases of sub-project cycle and to assist users in forming a viable and sustainable Water Users Associations (WUAs) which can undertake the full responsibility of system management on a self-sustaining basis after the physical completion of the sub-projects. His major duties include: i. Disseminating information to users relating to policies, procedures and terms and conditions of government's assistance on irrigation development. ii. Assist potential beneficiaries in genuinely filling-up the request form. iii. Organize users meetings and assist them in selecting or electing their representatives and leaders. iv. Collect socio-economic information of the sub-project sites and report to DIO Engineer or Sub-PM. v. Work as a liaison between users site FO (or NGO CBO) and DIE. vi. Assist users in forming WUA, for example, in using the model constitution, rules and regulations, registering it with District Water Resources Committee (CDO+LDO). vii. Assist_ users group or WUAs in entering into a formal agreement with the DIO on the terms and conditions of assistance. viii Assist WUA in mobilizing/resources, keeping records and supervising construction. ix. Assist WUA in carrying out the Monitoring program in filling the formats provided to the Key Households at Baseline survey. x. Assist in providi11g training and other supports to WUAs (in collaboration with other DIO staff or concerned agencies) for efficient system operation and maintenance. xi. Assist in providing training to WUA and lead farmers (in collaboration with DOA/ASC and other support providing agencies) to establish linkages for post-constructional irrigated agricultural activities (production program). JOB DESCRIPTION OF CHIEF OF HRDTB (TRAINING) i. To conduct trainings to improve the standard of irrigation practices. ii. To explore the possibility of new, appropriate and more effective training methodologies to support irrigation development and management. iii. To prepare short term (annual, semi annual), medium term and long term programs for human resource development and training. iv. To manage or mobilize resources and facilities (financial and technical) to implement these programs (as per above) and to make arrangements to use them through one unified channel. v. To perform administrative and technical functions of the Human Resource Development and Training Branch. vi. To co-ordir:?-te and supervise the annual, semi-annual and other planned activities of the branch so that they·coulc • , ,3ffectively conducted. vii. To co-ore±:· "c with various DOI divisions and branches in preparing a comprehensive human resource developn< . t program and in arranging for the implementation of this program. viii. •To prepara or cause to be prepare progress report of the branch and present it to the concerned authority in time. ix. To prepare details of manpower and training requirements in the DOI and in the projects/systems, regional and district level offices under it. x. To conduct or cause others to conduct trainings and HRD related activities as per the requirements (identified in 11 above). • xi. To prepare audiovisual aids, periodicals and newsletter relating to irrigation developme?nt and management. xii. To prepare annual program and budget of the branch and present it to DOI for approval. JOB DESCRIPTION OFCHIEF OF RESEARCH AND TECHNOLOGY DEVELOPMENT BRANCH (RTDB) i. To develop policies relating to irrigation management. ii. To plan, monitor and evaluation research programs for improving irrigation development management standards, iii. To conduct research relating to irrigation management. 6 of? iv. To develop or assist others to develop programs for privatization and sustainable management of irrigation systems. v. To assist the Farmer Managed Irrigation Systems (FMIS) supported by the Surface Irrigation Division of the Department through various research and technology development programs (bench mark study, benefit monitoring, irrigation system and on-farm water management etc) vi. To identify and conduct or ask others to conduct various types of applied, fundamental and diagnostic research for sustainable development of technology and 'appraisal of the prevailing irrigation practices. vii. To compile the results of PBME studies of completed projects conducted by others and publish the results for dissemination to all concerned. viii. To provide publications and publicity materials to the Human Resource Development and Training Branch (HRDTB) and thereby assist HRDTB in developing itself as the Extension Unit of the Department. ix. To prepare inventory of agencies involved in irrigation development and management research both inside and outside the country and to establish close link with these agencies so that this branch could evolve as a dynamic research and technology development unit within the sector. x. To prepare inventory to present research programs built-in the donor-assisted irrigation projects, to make an assessment. of the resources allocated for these programs and to make arrangements to spend these. resources through one unified channel. xi. To provide timely information and progress report to the concerned division relating to the activities of the Branch. xii. To undertake or ask others to undertake other activities as directed by the Irrigation Management Division. xiii. To prepare Annual program and Budget of the Branch and present it in time to the concerned division for approval. • JOB DESCRIPTION OF CHIEF OF SYSTEM MANAGEMENT BRANCH (SMB) i. To develop guidelines, forms and formats for preparing Action Plan (AP) and Memorandum of Agreement (MOA) for the implementation ofjoint management and turn over programs. ii. Provide guidance to operate, maintain and manage completed (O&M Status) irrigation systems through respective irrigation offices (DIOs), projects (IPs). iii. To advise/assist Water Users' Associations (WUAs) to improve the performance of Farmers Managed Irrigation Systems (FMISs) iv. To assist and facilitate DIOs/lPs for turnover and also for joint management of Agency Managed Irrigation Systems (AMISs) to/with organized WUAs of respective systems. v. To develop programs for the sustainable irrigation management. vi. To prepare guidelines for the institutional development of beneficiary farmers of the irrigation systems and recommend training and research activities for a sustainable, strong and capable WUA. vii. . To assist DIOs/lPs to timely prepare the annual programs and budgets of irrigation systems of operation and maintenance status, and collect and submit for the approval to include in annual budget program. viii. To regularly monitor and evaluate the performance of O&M systems. ix. To collect progress reports from DIOs/lPs and compile them and submit to the concerned branch of the department. x. To check designs and estimates of system management activities and submit for approval. xi. To supervise the works done by the subordinates and evaluate their performance. xii. To implement system management activities of different irrigation management projects under Irrigation Management Division/DOI. 7 of7 NISP (MAIN COMPONENTS) IMPLEMENTATION TOR FOR DISTRICT/COMMUNITY BASED NGOs GUIDELINES FOR PARTICIPATORY SOCIAL ASSESSMENT STUDY TOR FOR IRRIGATION SUBSIDY STUDY TOR FOR IRRIGATION SECTOR O&M AND WATER CHARGE RECOVERY STUDY ATTACHMENT 6 TERMS OF REFERENCE FOR CONSULTING SERVICES FOR NEPAL IRRIGATION SECTOR PROJECT (NISP) PACKAGE 1- TA CONSULTING SERVICES TO THE DEPARTMENT OF IRRIGATION FOR NISP (MAIN COMPONENT) IMPLEMENTATION A. OBJECTIVE OF THE SERVICES The overall objective of the consulting services is to ensure quality assurance and control at all stages of NISP implementation by monitoring the planning, design and construction activities ofSub- Projects, providing services to undertake specialist studies and the strengthening of the post- constructional activities of the Department of Irrigation for achieving sustainable agricultural development. • In particular the consulting services will provide technical assistance to the Department of Irrigation for: i) improving quality of Sub-Project selection, preparation, design, construction supervision and monitoring and evaluation in accordance with the NISP procedural guideline documents ii) integration of agriculture activities into the development process of the irrigation sector program iii) implementing programs for the sustainable development of Water User Associations through recruitment of suitable NGOs and assisting in the private sector strengthening iv) strengthening the institutional capacity of NISP implementing units to pursue adoption of the formulated Sub-Project cycle procedures for NISP implementation on a sustainable basis, through conducting of trainings to all concerned staff, NGOs, WUAs and other stake holders v) supporting and developing on-farm water management improvement programmes on completed Sub-Project sites vi) undertaking specialist studies into irrigation subsidies and cost structures for improved O&M of irrigation systems B. CONSULTANT'S SCOPE OF SERVICES A team of international and national consultants is to be engaged by the Department of Irrigation (DOI) for a period of five years, and will provide a core team to assist in the NISP implementation. A total of some 60 months of expatriate consultant services and 333 persons months of national expertise services with associated support services will be required for this team. It is expected that 1 of 8 an additional 12 months allocated for an expatriate in-farm water management specialist will be provided through FAO. Prequalified firms or consortium of firms in the field of irrigation engineering, groundwater, environment, sociology, agricultural extension, economics, monitoring and evaluation and training will be asked to submit proposals. To ensure that the objectives of the consultant services will be achieved, DOI and DOA will provide counterpart staff as required to the consultant deployed under the Project. The consultant will, likewise, coordinate with the consultants recruited under the other two project packages; namely Package II for Sunsari Morang Ill Project and Package Ill for the Department of Hydrology and Meteorology component. After appointment, under terms and conditions to be agreed with DOI, the Consultant, will be responsible for procuring and supervising additional sub-consultancy services covering the following components; District based NGO services; On-farm water management services; O&M and Subsidy study teams; and procurement of consultant's vehicles, and survey and office equipment. The period of service is expected to start from early 1998. The proposed breakdown of the consultants' services is given in Table 1. C. TERMS OF REFERENCE FOR CONSULTANCY'COMPONENTS The overall terms of reference of the consulting services will consist of, inter-alia, tasks divided between the different components as follows; NISP IMPLEMENTATION COMPONENT 1) To be involved in the Sub-Project / Groundwater Cluster study, design, approval and implementation processes, in accordance with the procedural guideline steps and with particular reference to technically complex projects. 2) Assist and advise Regional, District Irrigation and Groundwater Field Office (GWFO) Staff on all engineering aspects of project implementation to improve the quality control of identification and feasibility studies, design, cost estimation, construction supervision, operation and maintenance, and monitoring and evaluation. 33) Provide inputs as required and agreed with DOI in the institutional reform process, policy and legislative actions etc. on the basis of field experiences, information and pursuance of NISP processes. 4) Periodically review, improve on and update the surface and groundwater procedural guidelines in the light of on-going NISP experiences. 5) In collaboration with Regional Irrigation Directorate staff select three model Sub-Projects in each region (one hill, one terai, one groundwater) and assist the respective District Irrigation, GWFO and Agricultural staff to prepare model identification, feasibility and completion reports in accordance with the NISP procedural guidelines. The feasibility reports to include appropriate model environmental assessment reports. 2 of 8 6) Prepare for three model selected Sub-Projects (one hill, one terai, one groundwater) appropriate • operation and maintenance manuals covering, Water User Association management, organization and planning, together with farmer system operation, maintenance and monitoring and evaluation details. 7) Adopt environmental protection measures required in various FMIS. For this purpose implement on-going participatory environmental protection works in hill irrigation (PEPHI). In conserving the resources, pay particular attention to the needs of the women in the irrigated agricultural area (outcome from the Social Assessment Study report). 8) Devise mechanism to effectively involve the potential water users belonging to diverse ethnic groups, different land holdings, tenancy, and gender status in the FMISs. Integrate identified social/gender development .needs and concerns in the establishment and strengthening of WUAs and irrigated agricultural management system. 9) Support a pilot effort in integrating water development works (irrigation, water supply and hydropower) and establish participatory principles and processes where the scheme is technically and economically viable for an integrated development. 10) To supplement the present Design Manuals of Irrigation System in Nepal prepare a friendly- user manual providing guidelines and detailed information on unsteady flow conditions in canals, the selection of methods of water allocation, and the selection of friendly user control structures and their sensitivity to variations in supply and demand. 11) Prepare appropriate technical manuals to support skill· development training for Regional and District Level Engineers . and Technicians, covering subjects such as use of environmental friendly technology, construction in fragile hill zones, groundwater pump / engine operation and maintenance, construction quality control, water management, and economic evaluation. 12) With the support from OHM staff, initiate training programs to support the adoption by Regional and District Irrigation Offices' of a basin / sub-basin development approach to water resources management. 13) Assist the Department of Irrigation in conducting training seminars and workshops involving Irrigation and Agriculture staff, other Government officials and key farmers, to improve DOl's capabilities in participating in and supporting participatory irrigation development. Orient and train trainees in the application of the participatory strategy, and in understanding the basic principles of the irrigation sector program implementation. 14) In collaboration with HRDTB/IMD train the selected NGOs so as to improve their capability to work as a facilitator between WUAs and DIOs/GWFOs and to take up the WUA strengthening activities. 15) Develop and assist Department of Irrigation staff and selected NGOs to implement specific training programs to introduce improved training methodologies through non-formal training and communication skills and improve their capabilities to communicate with and train Water User Associations and other farmer groups for their effective involvement in the planning, construction, operation and maintenance of Sub-Projects / Groundwater Clusters. 3 of8 16) Assist and advice Regional and District Agricultural Staff on all agricultural aspects of Sub- Project identification, feasibility study and monitoring and evaluation, as it pertains to implementing the NISP procedural guidelines. 17) Assist in the co-ordination between Irrigation and Agricultural Department staff at all levels, during budget planning, Sub-Project study and implementation, so that the benefits from Nl,SP intervention can be fully realized by the farmer beneficiaries. 18) Review and refine indicators, in co-ordination with the Regional Monitoring and Evaluation Teams, for monitoring and .evaluating the impact / performance of NISP Sub-Projects / Groundwater clusters. Assist in integrating the approach between Department of Irrigation and Agriculture staff for undertaking periodic and regular monitoring exercises. 19) Assist in strengthening the capacity of the Central and Regional offices of the Department of Irrigation to set up and fully operate a functional Management Information System covering all disciplines within the Department. 20) Assist, as required, NISP implementing units in the preparation of periodic progress reports on NISP implementation activities. PRIVATE SECTOR STRENGTHENING COMPONENT . 21) Select and recruit capable NGOs, in accordance with the Terms of Reference for their engagement given in Annex A 22) Guide the recruited NGOs in assisting District Irrigation and Agricultural staff to involve women beneficiaries in all aspects of WUA activities and in particular training related to productive agriculture practices and environmental protection measures. 23) Supervise the tasks assigned to the selected NGOs in accordance with their terms of reference and obtain regular progress reports from them to be included in the TA Team quarterly reports. 24) Assist MIT/DIO in the conducting of Baseline Surveys and Guide NGOs in the conducting of the Social Assessment Study of selected Sub-Projects before the construction phase begins as set out in Annex B. • • ON-FARM WATER MANAGEMENT SUB-COMPONENT 25) In collaboration with District Irrigation and Agricultural Offices and the WUAs select completed Sub-Projects where improvement to on-farm water management practices is required to further enhance the performance of irrigated agriculture 26) Assist the DIO and DOA staff to develop their institutional capability to effectively support farmer beneficiaries in the development and improvement of tt,eir on-farm irrigation systems and introduction of improved agricultural practices 27) Develop and assist 010 and DOA staff to prepare and implement specific training programs for WUAs to improve their on-farm water management practices and capabilities 28) Monitor the progress of on-farm water management activities at each Sub-Project site and prepare progress reports to be included in the main consultant's quarterly reports 4 of8 (A separate team of national experts will be procured as per the TOR for this subcomponent, under the overall responsibility of this Expatriate Consultancy. A detailed TOR for this consultancy input will be prepared by the expatriate consultant in consultation with IMD/RTDB before the procurement). SUBSIDY STUDY COMPONENT The Consultant will guide the national experts deployed for carrying out this study. The tasks for carrying out the study in general are as follows: 29) Review the present policy and level of irrigation/agricultural subsidy, including the existing agricultural and irrigation development plans and policies, subsidy policies and revenue collection, fiscal and macro economic policies and indicators, economic trends, and government's new policy direction and initiatives. Prepare a report on the outcome of the review 30) Evaluate the production and equity impact of current subsidy arrangements, assess the budgetary implication and sustainability of the irrigation subsidy policy and examine the need for change of policy in the light of Governments micro-economic condition 31) Analyze the prospects of various policy proposals in light of the cost to the farmers and state, quality of service provision, agricultural productivity and food self sufficiency, and determine farmers' current and potential capacity to pay. Present the conclusions of the analysis at a workshop and prepare a status report of finding and suggestions 32) Recommend appropriate levels of subsidy and their phase-out plan, sequencing changes in specific subsidy policy in a manner that would mitigate the likely resistance to change, and suggest the needed modifications in the existing policy, institutional and legal provision related to irrigation subsidy and present the results of the study in a final report • 33) During the study strengthen the institutional capacity of DO1/MOWR for subsidy planning, particularly in the area of monitoring and evaluation of the effects of a subsidy policy and in working out necessary modifications in the policy. Prepare progress reports to be included in the main Consultant's quarterly report (A detailed TOR for carrying out this study is given in Annex C) O&M STUDY COMPONENT 34) Evaluate current O&M policies, practices and procedures on agency managed irrigation schemes, including past studies and proposals, and determine the processes, criteria and regulatory measures used in carrying out O&M on a sample of such schemes. Assess O&M expenditures, existing water charges and problems affecting water charge recovery and identify constraints affecting the undertaking of effective O&M practices and make recommendations to alleviate these problems. Prepare a report on the existing O&M practices and proposed recommendations 35) Assess the impact of current O&M practices on agricultural production, beneficiary income and system physical infrastructure, and through a participatory approach on at least four 5 of8 sample schemes derive cost of improved O&M practices and level of inputs that are realistically achievable, financially viable and ensure system sustainability. Present the findings at a workshop and prepare a status report of finding and suggestions 36) Assist DOI to formulate mechanisms for establishing appropriate water charge rates, the need for applying differential rates between agency managed schemes, justifying periodic rate revisions, achieving effective recovery of rate charges, and regulatory arrangements to enforce recovery, and prepare a guideline note 37) Prepare an implementation plan for establishing in accordance with the guideline note, revised water charges and improved O&M practices, as required, in selected agency managed schemes, and assist the Irrigation Management Division of DOI to establish and monitor these in pilot areas of these selected schemes 38) Prepare regular progress reports to be included in the main consultant's quarterly reports and a final report on the conclusions of the study (A detailed TOR for carrying out this study is given in Annex D) GENERAL REPORTING - 39) Prepare and submit an inception report within 6 weeks of the beginning of the consulting services, and to include a time bound integrated work plan showing expected activities and outputs for the Consultant's Team. The work plan to be monitored and updated in the annual reports. 40) Prepare and submit to the NISP Chief Project Co-ordinating Officer (CPCO) quarterly and annual progress reports of the technical assistance team's activities, in formats to be agreed with DOI. The reports should be in English and should be submitted in twelve (12) copies (one each to concerned RIDs/RADs, one to Groundwater Division, four to PCO and one to the World Bank). 41) Prepare and submit a Terminal Report on all of the Consultant team's activities. 42) Assist in the preparation of a Project Completion Report of NISP before the termination of services. 6 of8 D. CONSULTANT'S SCHEDULE The assignment of the Consultants shall have a strong project implementation oriented focus. About seventy percent of the Consultants core team time shall be field-based with their time equitably distributed among the three NISP regions (Western, Mid-Western and Far-Western) according to the volume of work. A time bound schedule of the Consultant's inputs is shown in Figure 1. E. CONSULTANT'S OTHER RESPONSIBILITY The consultant services include the subsidiary tasks to be performed under the overall guidance and its coordinating the details of which is given in Table 1. 7 of 8 ATTACHMENT 6 TABLE 1 CONSULTING SERVICES FOR NEPAL IRRIGATION SECTOR PROJECT PACKAGE NO. I. SUPPORT TO THE DEPARTMENT OF IRRIGATION FOR NISP IMPLEMENTATION INTERNATIONAL·CONSULTANTS Person-month Team Leader/Senior Irrigation Engineer 40 Resource Economist/Unallocated Specialist 20 TOTAL 60 On-Farm Water Management Specialist (12) (FAO Sole source procurement) NATIONAL CONSULTANTS Centre-based : Deputy Team Leader/Institutional Development Specialist 48 Sociologist/Training Management Specialist 32 Agricultural Economist/M&E Specialist 15 Regional based: 3 Nos. Irrigation Design/Construction Engineers 90 3 Nos. Sociologist/Agriculturist 96 1 No. Groundwater Electro-Mechanical Engineer 10 1 No. Environmental/Geotechnical Engineer 19 1 No. MIS Specialist 13 Um::;;acated Specialists 10 TA Support Staff Vehicle and Equipment Procurement Four Wheel Drive Vehicles Survey and Office Equipment Sub-Consultancy District Based NGOs O&M and Subsidy Study Team On-Farm Water Management Incremental Support Staff (DOI) 3 Regional Staff Support Field Enumerators for Study Teams TOTAL 333 Provisional Sum 5.4 million 7 No Provisional Sum Nrs 24 million Provisional Sum Nrs 40 million Provisional Sum Nrs 26 million Provisional Sum Nrs 91 million Provisional Sum Nrs 8 million Provisional Sum Nrs 0.5 million 8 of8 S. No. Consultant Inputs INTERNATIONAL 1. Sr. Irrigation EngineerfTeam Leader 2. Resource Economisl/Unallocaled 4 On-farm Water Management Spec. (FAQ Procurement) 5 Irrigation Training Specialist (FAQ Procurement) NATIONAL 1 Inst. Dev. SpecialisUDy. Team Leader 2. Irrigation Construction Engineers('3) 3. Sociologist/Agriculturist ("3) 4. Training Management Specialist 5. Agriculture Economist (M&E Specialist) 6. Environmenl/Geotech Engineer 7. Groundwater Electro-Mechanical Engineer 8 MIS Specialist 8 Unallocated 9 Supporting Staff for TA Team SUB-CONSULTANCY 1 District Based NGOs 2 O&M and Subsidy Study 3 On-Farm Water Management TECHNICAL ASSISTANCE STAFFING SCHEDULE PACKAGE I - SUPPORT TO DOI FOR NISP IMPLEMENTATION ATTACHMENT 6
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zzmzm2:tmemmzrrtzrr&mmzffl@Xm&mM2222m2rrszs22mzms2s2zMz222mcr Assumes Technical Assistance Team will be recruited by January 1998 AT6-fig1 Role: ATTACHMENT 6 Annex A TERMS OF REFERENCE (TOR) FOR DISTRICT/COMMUNITY BASED NGOsENGAGEMENTIN NISP SUB-PROJECTS IMPLEMENTATION In the implementation of NISP Sub-Projects whether Rehab of existing· FMIS or Turnover (TO) and Participatory Joint Management (PJM) of agency managed system, mobilization of NGOs can help in the formation of grassroots organization and work as facilitator among all stakeholders. Based on experience of implementation of other demand driven participatory irrigation project in Nepal specially in that of Dhaulagiri Irrigation Development Project (DIOP) in four districts of Western Region, the NGOs are proposed to be engaged to carryout inter-alia in the following functions and tasks : Be responsible to disseminate the information to the potential farmers groups on NISP program, terms and conditions of availing the support, responsibilities and participation (including contribution) requirements by users group: In capacity building of the users group through working as trainers, facilitator to establish linkages with other support providing agencies including credit facilities and marketing etc. In the formulation and legalization of WUAs organization. Be responsible to conduct Participatory Social Assessment study of identified and selected Sub- Project at or after feasibility study stage bu.t before actual construction is taken up. Works as facilitator in resource mobilization by WUAs to participate (contribution) in the development phase as well as for the O&M phase. • The NGOs will work under the overall guidance of the TA Consultant at the RIDs and would coordinate their activities closely with the MIT responsible for all other activities of the feasibility study/design and construction of Sub-Projects/schemes and the RTU who is charged with carrying out the required training within the regions and districts. Procurement Process of NGOs: The responsibility of assessing the capability of NGOs to assist in the implementation of NISP would lie to the expatriate TA Consultants. They would be procured directly by the TA Consultant on terms and conditions acceptable to DOI/PC. The contract agreement between NGO and the TA Consultant would also have to be approved by DOI/PC. The NGOs would be immediately responsible to the TA Consultant and have close linkage with the MIT/RID and RTU on matters related to training and other matters concerning their functions and tasks. The TA consultant, HRDTB staff of IMO and RTU would conduct the trainers training of recruited NGOs on all related topics concerning their functions and tasks to be performed by them. The works of the NGOs would be in general looked after by the TA Sociologist cum.training management specialist at centre and by the sociologist cum training coordinator at the region. This sociologist of the TA Team would also function as 1 of 3 sociologist for the MIT in case there is no one at the RID in order to impart know how of his discipline other members of RID/DIO. Criteria and Qualification for the selection of NGOs: the NGOs should be either Community Based NGO or intermediary NGO or local NGO. the NGO should have been registered with HMGN relevant office as a non-profit organization with a motive for the upliftment of rural community. should be experienced in working with farmer groups in formation of VVUGs for sustainable productive irrigated agriculture in rural farming locations. should have experience in coordination with farmer groups on irrigation development and management related activities, rural development activities on participatory approaches. should have exposure and experience in organizing training, workshops to strengthen the local users capability to develop irrigated agriculture and other economic income generating activities. the NGO should have physically fit energetic group organizers (GO), both male and female ready to work into and stay with the rural/remote places for days together. the person who has to be incharge of the NGO services in the districts (DIOs) Sub-Projects should have preferably university degree in Sociology, human resource management or other relevant discipline. TOR FOR NGO ENGAGEMENT (Sub-Contract) OBJECTNES The objectives of the services to be provided by the NGO is to assist the RID/MIT and DIOs in the establishment and/or formalization of functional community based organization at the local community level that is the Water Users Associations (WUAs) and potential income generating groups out of the WUA members who are directly linked to the irrigation Sub-Projects supported by NISP. Since NISP is to assist mostly rehabilitation of existing surface FMISs and TO of presently AMISs there will be already some form of water users group in existence. NGOs services would be required where weaknesse$ are felt or where fresh organizations are to be formed. SCOPE OF WORKS The recruited NGO will be required to carry out the following general tasks: a) Guide potential farmers to request HMGN for NISP assistance in the construction/rehabilitation of their FMIS, as well as their full participation in selection, planning and design activities if request found eligible for NISP support. 2 of3 b) Guide and train irrigated farmers in the formation and management of WUA including the democratic election of Water Users' Association Executive Committees and drafting of association bylaws and constitutions based on model documents institutionalization/ Management of Trainings. c) Guide and train WUAs in the mobilization of local resources (labour, cash, materials and skills) for Sub-Project construction, ie.e both the WUAs contribution and the paid work through community- .based working groups, as well as the negotiation of an agreement with the DIOs for areas of responsibility during Sub-Project construction; Resource Mobilizatiol"1 and Work plans/construction skill development. d) Guide and train WUAs in the sustainable operation and maintenance (including water management) of the completed irrigation schemes. Operation & Maintenance Training/Water Management Training/Establishment of a maintenance fund. e) Guide and train key farmers from the WUAs in the improvement of cultural practices required for the self-sufficiency of basic foodstuffs through irrigated agricultural production. Improving productive and profitable Cultural Practices Training. f) Assist the communities comprising the WUAs to identify opportunities for increased sustainable employment through self-supporting irrigation-related enterprises (especially for the landless, poor and womeri) through, e.g. savings and loans groups, etc. Identification of income generation • activities and on-farm improvements/Formation of such groups. g) Assist the Income Generating Groups to draw up proposals and feasibility studies for small enterprise development, e.g. forest nurseries, mini hydro-electric plants, food processing units, etc. and help identify sources, for financial and technical support for implementation. Advise on carrying on Income Generation activities and on-farm improvements. h) Regular monitoring and evaluation of all activities outlined above, including frequent interchange of ideas and workplans with the NISP/MIT and the DIOs. • i) Carrying out the PSA study of the selected subproject according to the PSA Guidelines. Reporting The recruited NGO will have to report to the TA Consultant team leader at the RID and have direct linkage with the MIT Sociologist or TA Sociologist cum Training Coordinator. More detailed tasks outputs and activities and job description of the NGO required staff will be prepared by the Expatriate TA Consultant at the time of the procurement/recruitment. 3 of 3 ATTACHMENT 6 Annexe GUIDELINES FOR PARTICIPATORY SOCIAL ASSESSMENT STUDY 1. OBJECTIVES: Participatory Social Assessment (PSA), together with Environmental Impact Assessment (EIA), will be carried out during the pre-construction stage for each scheme/Sub-Project: FMIS, Turnover and Joint Management schemes. The objectives of PSA are: (i) to obtain an overview of the socio- economic conditions among farmers in a scheme area/village(s), existing irrigation management practices, cooperation/conflict among farmers, and potential for farmer contribution and WUA formation; (ii) to establish a dialogue with farmers; (iii) to disseminate information on project strategy [and government irrigation policy] within the framework of which farmers will participate [and contribute] in project implementation, and the subsequent turnover or joint management of the scheme; and (iv) to establish socio-institutional baseline data and indicators based on which the impact of the project can later be evaluated [along with agricultural, water management, and environmental data and indicators]. • 2. SCOPE: PSA will be conducted as part of the feasibility study/design for each scheme. Together with the EIA, it will be an important step in the project implementation sequence ["Procedural Guidelines for Surface Water and Ground Water Irrigation Systems" in the Borrower's Project Implementation Plan"] paving the way for farmer participation and farmer organization. The PSA will focus on four components: (i) socio-economic survey of land tenure and access to irrigation; (ii) irrigation management; (iii) social and stakeholder analysis; and (iv) institutional analysis. 3. ORGANIZATION AND GUIDANCE: It is envisaged that NGOs will be contracted, trained and supervised by the project's TA Consultant and to carry out PSA [and follow-up activities in support of farmer organization] according to "TOR for the involvement of NGOs for PSA and Farmer Organizers in FMIS, Turnover, and Joint Management Schemes" as described in the Borrower's Project Implementation Plan. The TOR for involvement of NGOs specifies: (i) the role, responsibilities, and specific activities of NGOs in PSA; (ii) the coordination mechanisms between NGOs and the District Irrigation Office, between NGO workers and Association Organizers (AO). The NGOs will be guided by the TA Consultant's Training and Institutional Specialist [centrally located] and the TA Sociologist [regionally located]. NGOs will coordinate their activities closely with the Mobile Irrigation Team (MIT) responsible for all other components of the feasibility study/design for each Sub-Project/scheme. 4. METHODOLOGY: The methodology of PSA relies on GO workers spending considerable time with villagers/farmers which in many cases would mean that NGO workers would live for a week in a village, particularly if the village is located in a remote area. The PSA will be carried out according to the guidelines presented below. The result will be quantitative and qualitative information that will be analyzed in discussions between the NGO, DIO, the MIT Team, and the TA Consultant. The guidelines are not a blueprint. They will be further developed/modified as experience is gathered and new ideas come up while implementing NISP using results of PSA. 1 of 2 PSA GUIDELINES 1. SOCIO-ECONOMIC SURVEY * * * Land tenure arrangements [landlords, absentee landlords, tenants, size of landholding). Access to and control over irrigation by tenure arrangement. Enumerate farmers without irrigation, landless, non-farming occupations, and services. 2. IRRIGATION MANAGEMENT * * * Cooperation among farmers in irrigation Functioning and performance of groups or leadership responsible for irrigation management. Initiatives taken by the village/irrigation group/leadership to mobilize funds or labor for repair and maintenance of existing irrigation infrastructure; new investments in development/expansion of irrigation system. 3. SOCIAL AND STAKEHOLDER ANALYSIS * * * * Village caste structure [with mapping of all castes in the village). Relationship between caste/class and land tenure/access to irrigation. Control over irrigation by individual farmers, caste group. or other power structure. Conflicts [and conflict resolution mechanisms] over access to irrigation between individual farmers, caste groups, or other stakeholders. 4. INSTITUTIONAL ANALYSIS * * * * * * Existence, functioning and performance of village level institutions that cut across caste groups, class differences [landlords - tenants m - laborers] in general and/or in relation to irrigation management. Caste-based organizations - formal or informal. Relationships/ contacts between village level groups/leaders and local government/ irrigation department/ political group. Leadership structure and other village level organizations [formal or informal youth, women, other group]. Potential for involving existing village based [irrigation or other] groups, institutions, or leadership in building a WUA as per project strategy and objectives. Willingness/ ability of farmers to participate in the project, contribute with labor/materials/cash, organize themselves in a 'legalized'/registered WUA, and collect their own water fees for scheme O&M after rehabilitation/ handover [ask/discuss this with different categories of farmers, leaders, and in group discussions]. 2 of2 Background TERMS OF REFERENCE FOR IRRIGATION SUBSIDY STUDY ATTACHMENTS Annex C In Nepal, the government is seized with the subsidy problems, particularly the issue of fiscal sustainability of investment in irrigation subsector. It is increasingly recognized that the economy can not continue to subsidize a sector as large as agriculture which accounts for some 42 percent of Gross Domestic Products and provides livelihood to around 90 percent of population (by taxing the rest of the economy). Irrigation alone accounts for some 12 percent of government development budget. Accordingly, the Department of Irrigation (DOI) is experimenting with new financing arrangements. The irrigation subsidy rates were also revised downwards in 1997 (see Table -1 for IP -1997 subsidy rates). This level of subsidies in private and public irrigation schemes is high and such subsidies on long term basis for the Government to finance is unsustainable. However, because of the country's geographic and economic diversity a generalized subsidy may not be applicable. •• :: Recently a decision has now been taken to reduce subsidy in community shallow tubewells (STWs) from .• 80 percent to 60 percent and in individual STWs from 40 percent to 30 percent. While the government is taking initiatives to reduce irrigation subsidies, it is equally concerned about the equity implications of such :;;_ reduction. That majority·of farmers are resource-poor and small who produce largely for subsistence and do not generate cash surplus, and that tail-end farmers generally receive marginal benefits from irrigation have made farmers' "ability to pay" consideration an important factor in the formulation of irrigation subsidy policy. Regional equity consideration, or more importantly, the food security concern has also led the government to promote hill irrigation despite the fact that the value of water is normally low in the hills and mountains due to market and other constraints, and that the unit cost of development is relatively high. Horizontal equity concern similarly requires· that farmers be treated equally across different forms of irrigation (say, surface and groundwater). However, these social gains have counterpart costs. Mindful of cost, the government intends to strike a proper balance between the efficiency and equity considerations against the budgetary·constraints. Subsidy being a sensitive issue, the government wants to effect policy change only after understanding the full implication of such change. This is more so in case of irrigation subsidy which is an input subsidy. In the face of comparatively low aggregate measure of support (AMS) in Nepalese agriculture, input subsidy reduction proposal should be evaluated in terms of its effects on structure of incentives, sectoral competitiveness and agriculture intensification process. The government, therefore, intends to reform the subsidy policy and come out with a time-bound plan to phase out subsidies through a review of a spectrum of associated issues. • II The Consulting Services A. General Description of the Services This consulting services are required to assist the government to carry out a comprehensive study on irrigation subsidy. The study will develop an "acceptable" subsidy phase-out scheme with medium term perspective that would contribute to the objectives of growth, competitiveness, income distribution and I of4 cost recovery without impairing the country's fiscal stability. It will support the government's initiative to secure the sustainability of irrigation investment in medium to long term. The specific areas to be addressed by consultants would include: i) Assessment of the Sustainability of Irrigation Investment/Capital Subsidy; ii) Formulation of an Appropriate Subsidy Policy and Phase-out Plan for Irrigation Development; iii) Evaluation of the Prospect and Performance of Privatization of Agency Managed Irrigation; iv) Examination of the Equity Considerations Relevant to Irrigation Subsidy Policy; and v) Strengthening of the Institutional Capability in the Ministry of Water Resources • (MOWR)/DOI for Subsidy Planning and Modifications. 8. Detailed Terms of Reference for Consulting Team This study has country-wide scope and covers all forms of public investment in irrigation. This includes both capital and recurrent (O&M) cost subsidies. However, the issues of O & M and service charges in agency-managed irrigation projects will not be directly dealt with by this study as there is a separate study for these topics. This study, however, should maintain close liaison with the said O & M and Service Charges study, and utilize their relevant findings and conclusions as input to the overall subsidy planning. Similarly, though this study covers all types of irrigation, including surface, pumped and groundwater irrigation, its inquiry in case of STWs will be limited to determining and suggesting a time-bound schedule for phasing-out subsidy as the government has already decided to withdraw subsidy from STWs (both individual and group STWs). The selection of irrigation schemes for review and survey will be made jointly with the Steering Committee/DOI, and in the selection, due attention should be given to the mode of irrigation, size of service area; geographic and agro-ecological location, and socio-economic setting. Other thing remaining same, preference will be given in selection to ILC • (Chapaot, Rainastar}, IMPT, Bhirawa-Lumbini Groundwater (BL) Narayani, Marchawa Lift and Sunsari-Morang (SM) irrigation projects. The general scope of work is to: i) Review the present policy and level of irrigation/agriculture subsidy. Aspects to be reviewed include the existing agriculture and irrigation development plans and policies, subsidy policies and revenue collection, fiscal and macro economic policies and indicators, economic trends, including government's new policy direction and initiatives. It will also include relevant experiences, best practices and lessons learned on irrigation financing privatization of irrigation systems from other developing countries. ii) Evaluate the production and equity impact of current subsidy arrangements. This is to establish an indicative relationship(s) of irrigation subsidy with water use/irrigation demand, fertilizers and other inputs uses, agricultural production and system performance, and farmers' returns/income. Both positive and negative as well as direct and indirect effects are to be analyzed. Implicit and explicit subsidies as well as the actual value received by farmers should be considered. iii) Assess the budgetary implication and sustainability of the irrigation subsidy policy. This exercise basically examines crowding-out effects, reallocation of development and recurrent budgets, and impact on sectoral/aggregate GDP growth. These issues should be evaluated in a macro-economic framework with various scenarios, including business-as-usual. 2 of4 iv) Examine the need for change or continuation of the existing irrigation subsidy policy. This should be the "collective" conclusion based on the results of the activities (i) and (ii), and that will set the stage for the subsequent design of the subsidy action plan. v) Analyze the prospects of various policy proposals in light of the cost to the farmers, cost to the state, quality of service provision, agriculture productivity and food self sufficiency. The analysis is to be •carried out for different types of irrigation development, including minor/major surface rehabilitation schemes and groundwater schemes. Wherever relevant, sensitivity analysis should be conducted under different plausible assumptions so as to test the robustness of the policy formulations. vi) Determine farmers' current and potential "capacity to pay" in light of the multiple burdens that the farmers face (e.g. hike in prices of diesel and contributions to be made in other participatory programs in the community)). Wherever relevant and possible, the analysis should be conducted in a desegregated manner by decal income groups, by disadvantaged hill and Terai farmers, by head- reach and tail-end farmers and for the existing operating condition as well as for the situation expected in the foreseeable future. In addition, the study should examine the feasibility of a targeting mechanism for equity-related subsidies, and develop a methodology to modify economic efficiency- based subsidfrules with equity considerations. vii) Recommend appropriate levels of subsidy and their phase-out plan, sequencing changes in specific subsidy policy in a manner that would mitigate the likely resistance to change. The subsidy levels and reduction sequence should be extensively discussed with all stakeholders including policy makers, academics/irrigation professionals, NGOs, donors, water users groups and women farmers. viii) Suggest the needed modifications in the existing policy, institutional and legal provisions related to irrigation subsidy. They together form an integral part of a workable time-bound action plan which is the final output of this study. ix) Strengthen the institutional capacity of D01/MOWR for subsidy planning, particularly in the area of monitoring and evaluation of the effects of a subsidy policy and in working out necessary modifications in the policy. In addition to on-the-job training of the key staff (counterpart staff) of the planning division of DOI/MOWR in the principles and processes of subsidy planning and design, the consultants should identify the human resources development and training · needs for the counterpart staff, and should develop a guideline to enable the staff to revise the structure of incentives and subsidies with minimum of outside advisory services. Ill Time Frame The study will be implemented in three phases of 20 months total duration stretched over 22 months. The proposed duration takes into account the country-wide scope and participatory nature of the study. The first phase of 6 months will be devoted to preparatory work, creation of unified data base, and policy modeling, etc. The Second Ph.ase of 7 months will undertake various analyses, case studies, focused group discus~ions, etc. with a view to bring out the most critical and pertinent issues and concerns of beneficiaries and stakeholders related to irrigation subsidy. The focus during this phase will be on micro and institutional issues and constraints, beneficiaries capacity to pay, and effects and acceptability of policy solutions. The Third and Final Phase of another 7 months will be the action plan phase. IV . Expertise Proposed 3 of4 Tentatively, the study will require 54 man-months of services of national consultants. .The team of domestic consultants should comprise an economist, a financial analyst, an institutional expert/irrigation, a macro economist, a computer system specialist and three field socio-economists. The economist (Team Leader) should be familiar with the government financial and budgetary system as well as with irrigation development, and should provide continuous input for 18 months. The financial analyst and institutional expert/irrigation, who will be the other core members of the team, should have hands on experience in the irrigation sector, each serving intermittently for the 12 months duration of the TA. The macro economists and computer system specialist each should provide specialized services for a short duration of 3 months each. The consultants, should have an extensive knowledge of irrigation financing in the developing countries, should provide required services for a total 50 manmonths over the 20 months implementation period of the study. The consultant should bring in international experiences and successful practices, and maintain quality control of the study outputs. For this purpose there is a provision made in the cost of the study visit program of developing countries, by the steering committee relevant members and DOI staff, where financing of irrigation sector is implemented by the private sector with minimal burden to the Government exchequers. The systems of capital cost recovery and O&M cost fully borne by the users would be immense value to guide the studies for this sensitive policy issues. The team leader would chunk out a program for the visit to appropriate countries. • V Implementation Arrangements DOI will be the Executing Agency for the study and the staff of the planning and Irrigation Management divisions within DOI will serve as counterparts to the consultants. A Steering Committee will be formed to guide and supervise the study. Given the policy orientation of the study, a National Planning Commission (NPC) member in charge of water resources will chair the Committee comprising representatives from the Ministry of Finance (MOF}, MOWR, DOI, Ministry of Agriculture (MOA) and Agriculture Development Bank (ADBN). The planning division of DOI will acts as a secretariat for the Committee. To the extent practicable, the Committee wiH be served by the same persons who are the members of the other two studies-Water Resources Strategy Formulation (WRSF) Phase II Study and O & M and Water Charges Recovery Study. Tripartite Review Meetings among the government representatives, donors and consultants will review and discuss the key reports and outputs of the study, and decide on the further actions to be carried out by the consultants. The Meetings will be held as and when required basis. 4 of4 ATTACHMENT 6 Annex D TERMS OF REFERENCE FOR CONSULTING SERVICES FOR IRRIGATION OPERATION AND MAINTENANCE (O&M) COST AND WATER CHARGE RECOVERY STUDY 1. BACKGROUND The majority of the public irrigation schemes under the control of the Department of Irrigation (DOI), generally referred to as Agency Managed Irrigation Schemes (AMIS), suffer from poor performance in terms of dependable and equitable water supplies, water management and collection of irrigation service fees. The total command area under AMIS amount to approximately 270,000 ha of which 10,000 are in the Hills. Poor Operation and Maintenance (O&M), inadequate O&M budget, and lack of expertise and interest in O&M among DOI staff, are some of the reasons for the accelerated deterioration of irrigation infrastructure. An integrated and comprehensive plan for O&M and codes which define the objectives and standards of O&M practices on public irrigation schemes do not exist. Insufficient, or lack of farmers participation in O&M and interaction with irrigation personnel has exacerbated the operational problems. Because of these factors and the state of the schemes, agricultural output and incomes in .the greater part of the irrigated commands remain far below , attainable levels and past irrigation infrastructural investments are yet to be fully realized. However, farmer managed irrigation schemes (FMIS), which constitute about two thirds of the country's irrigated area, are generally better managed and maintained although they often lack permanent -· intakes and appropriate water control structures. Thus, the 1992 Water Resources Act and the changes in the. irrigation sector policy have emphasized the transfer of public sector irrigation schemes, smaller than 2,000 ha in the Terai and 500 ha in the Hills, to farmers. Normally, larger schemes are not completely turned over to farmers and .remain under participatory joint management (PJM). Changes in the country's O&M procedures have been largely in response to Government's policies on irrigation over the years. Several projects are currently being implemented by DOI which aim to refine and institutionalize the processes and strategies for transferring O&M and/or ownership of public irrigation schemes to farmers and at organizing formal Water Users' Associations (WUA) for water management and to take over O&M responsibilities. These include the Irrigation Management Transfer Project (Asian Development Bank financial assistance) and the Irrigation Line of Credit (ILC) and Institutional Development Support (IDS) pilot programs assisted by the World Bank. An established institution for. O&M and monitoring and evaluation exists in DOI under the Irrigation Management Division_ (IMO) with branches in system management, human resource development and training and research and technology development. Units for on-farm water management; institutional development; irrigation infrastructure rehabilitation; and monitoring, evaluation and feedback are located under the System Management Branch (SMB) (see organization chart of DOI in Figure 1). Generally, water charges have not progressively stepped up over the last 10 years even to keep abreast with inflation. The present rate of water charge for surface water schemes is NRs. 60/ha/crop, established in the late 1980s. However, in some board administered irrigation schemes (e.g., Mahakali and Sunsari Morang) previous water cess was revised in the early 1990s to NRs. 200/ha/year. Recently, these have been further revised to NRs. 400/ha/year. Also in the Bhairahawa - Lumbini Groundwater Irrigation Scheme (Deep Tube Well) the water cess was recently fixed by their operation board at NRs. 400/ha/year and some service areas have been handed over to 1 of 10 WUAs. DOI plans to turnover the entire scheme to farmers who would then be responsible for financing whatever it costs to operate and maintain the scheme's irrigation infrastructures.. The recovery of irrigation charges is extremely low and is largely attributable to the deterioration in water services provided and lax enforcement of the collection rules. The present water charges are not sufficient to cover improved O&M. Irrigation charges and O&M financing procedures are inter- twinned with irrigation subsidy which is reportedly between 19% and 75% of costs. No decision on a time-bound plan to phase out subsidies has been made by the Government. Government is committed to ensuring that future investments in irrigation systems improvement are accompanied by a completely revamped management of O&M and full funding of the scheme's future maintenance needs. The mechanisms used for setting and revising irrigation charges, the operation of the collection agency, and the end use of the funds will have to be fair and transparent to the WUA. Complementary institutional and fiscal reforms would be required to address these aspects and implement new programs in this sector. 2. OBJECTIVES The proposed technical assistance component under the Nepal Irrigation Sector Project (NISP) is designed to assist .the Government of Nepal and the DOI to implement policy and institutional changes that would improve its O&M of AMIS and their cost recovery. For economic and financial sustainability of the O&M programs, it is essential that beneficiaries pay for them and further maintenance expenditure for the improved schemes is met by the beneficiaries by way of cost recovery. The general objective of the proposed operation and maintenance requirements study is to support the Government's new development focus on orienting public agencies towards relinquishing in part or all of their O&M responsibilities to beneficiary organizations in the irrigation sector. The primary objective of the study will be to ascertain improved O&M requirements, practices and cost structures for AMIS under a joint management arrangement by DOI and WUA, to ensure that the schemes' infrastructural services remain functioning and usable on a long-term basis. 3. SCOPE OF CONSULTING SERVICES The country-wide study will only cover O&M practices on AMIS (surface and groundwater) in Nepal. The selection of a sample of schemes to be reviewed and analyzed will be made jointly with DOI and due attention given to the size of service areas, geographic and agro-ecological location, socio- economic setting, and classification and mode of irrigation. A specific focus would be given to the Sunsari Morang Irrigation Project area which is earmarked for the system improvement and farmer turnover (SIFT) component of the project. The consulting services to be provided for the study will be divided into two phases. Study tasks under phase-I will focus on the review and evaluation of the existing O&M policies, standards and practices, water charges and cost collection mechanisms and recovery rates. The Phase-II tasks and activities will focus on the provision of assistance with the management and supervision of the new O&M practices on pilot areas within sample schemes. The pilot area operations and maintenance will build on the participatory planning activities undertaken in Phase-I to formulate the new O&M practices and costs. It is tentatively planned to run trials in pilot areas on at least four AMIS. The potential irrigation schemes, subject to approval of IMO, are (i) Sunsari Morang Irrigation - Ill; (ii) Narayani Irrigation Project; (iii) Marchawar Lift Irrigation Scheme, (iv) 2 of 10 Chapakot Irrigation Scheme (v) Rampurphant Irrigation Scheme, (vi) Narayani Lift Irrigation (vii) Chandra Canal System, and (viii) Kankai Irrigation Scheme. The study outputs should be acceptable to both agency and beneficiaries, and their aims will be to: (i) further strengthen the institutional base and technical capabilities of DOI, particularly the O&M offices to plan, implement, manage, supervise, monitor and evaluate improved O&M programs on jointly managed AMIS; (ii) extend the development of integrated irrigation scheduling for reliable, equitable and efficient distribution of available water resources using a participatory approach in the selected schemes; (iii) determine the improved O&M requirements and preventative maintenance procedures which can be realistically achieved on schemes for joint or single management arrangements ensuring beneficiaries participation in the process; (iv) determine the staff requirements, infrastructural support, financial cost requirements and upgrading of existing management information systems to support the planned optimum level of services; (v) recommend appropriate levels of water charges or irrigation service fees to sustain the new O&M requirements and programs; (vi) recommend a collection mechanism for the water charges and the revised institutional arrangements and regulatory measures for ensuring recovery of charges; (vii) prepare an implementation plan for the revised water charges and O&M practices and assist the Irrigation Management Division (IMO) of DOI with its supervision and management on pilot areas in the selected schemes; · (viii) transfer technology and skills to cover aspects of schemes diagnostics, the development of . improved O&M works and water related systems, water scheduling and monitoring, techniques, and information systems to DOI and WUA staff; (ix) diagnosis the hydraulic performances of the pilot selected schemes for improved O&M practices. (x) assess whether or not the irrigation and drainage infrastructures provided in the selected schemes are adequate to meet the requirements of a sustainable and efficiently managed irrigation scheme; and (xi) assess whether or not the problems in O&M of the selected schemes are due to improper planning, faulty design and poor quality works and recommend suitable and appropriate measures to mitigate such problems 4. TERMS OF REFERENCE Under the general guidance of Irrigation Management Division (IMO) the following main tasks are to be undertaken by the consultants. This study will be carried out concurrently with the subsidy study. So the studies will complement each other and will be carried in a manner not to duplicate the field works. Phase-I: 3 of 10 Task(A) Task(B) Task(C) C.1 C.2 C.3 C.4 Task(D) Comprehensive review of O&M practices and level of services on sample AMIS Analyze various O&M procedures and programs tried or are being practiced on various projects and FMIS to summarize the past experiences, lessons learnt and positive trends that have emerged; Review the current O&M policies and practices, related studies and proposals, land tenure system, and the level of services consistent with Agriculture Perspective Plan (APP) on a selected sample of AMIS; Determine the process, criteria, and adequacy of regulatory measures used in performing O&M and the prevailing the institutional setup and staffing for implementation; Identify factors that govern the multiple levels of O&M on scheme (operational, infrastructural, financial, social, institutional); crop production constraints, and ways to overcome these; Identify the O&M processes, criteria and practices associated with the current level of O&M services and the quality assurance measures adopted for ensuring appropriate works quality; Identify operational shortfalls and how these are affected by the scheme irrigation infrastructure and non-structural aspects; Evaluate maintenance requirements shortfalls •under: routine maintenance; preventative maintenance; deferred maintenance works; and emergency works; and Rank key factors which contribute to the identified O&M problems and poor level of services. Carry out detail hydraulic functions of the selected systems including diagnostic analysis of the various structures built. Comparing various · applications of distribution system, recommend appropriate mode of water management. practice suitable to the local environment considering local users' interest and their traditional practice. Assessment of O&M expenditures, existing water charges on AMIS and their recovery. Analysis precious O&M expenditures of selected systems and establish an appropriate rate for O&M budgeting. Differentiate between general O&M and deferred maintenance costs. Evaluate the costs incurred for O&M with breakdown into infrastructural works costs, establishment cost, etc., and the loss of revenue from O&M charges; Assess the irrigation service fee rate differentials between schemes taking into account the type of irrigation system, scheme location, degree of O&M services provided, cropping seasons, and the water source; Analyze methods of setting water charges antj rates revision mechanism; and Identify various factors that affect water charge collection efficiency; the recovery of O&M charges and their complementary collection, deposit and regulatory arrangements including the institutional arrangements. Determination of O&M impacts on agricultural production, scheme beneficiaries' 4 of 10 Task (E) Task (F) incomes and the physical infrastructures and also, determination of the impacts of existing scheme physical infrastructures on the O&M services • Identify the indicators to be used for assessing the O&M services impacts (divided under operations and maintenance); Conduct participatory appraisals to identify any negative impacts that the scheme's physical infrastructures have on the present level of O&M services; Conduct rapid scheme diagnostics on the main scheme elements to verify infrastructural constraints and irrigation pattern (e.g., loss of conveyance capacity in main or secondary canal due to deferred maintenance, poor regulation arrangement resulting in loss of command, existing irrigation scheduling and the actual water quantities received on a temporal basis, water supply and demand regimes, etc.); Examine crop budgets and farm incomes on a historical basis (not more that four cropping seasons or two years) and relate these to the irrigation water deliveries, lack of maintenance of key infrastructures that affect water deliveries, etc.); and Evaluate the agricultural production corresponding to the level of O&M services and identify the key constraining factors causing the negative impacts. Working with DOI and scheme beneficiaries (or WUAs) to identify and develop improved O&M practices and level of O&M inputs and determination of their financial costs Identify, jointly with O&M office and scheme beneficiaries including the women, the improvements needed in the current O&M services and practices; Recommend improved O&M requirements, practices and services for AMIS under joint management for both DOI and Water Users Associations (WUAs) using a participatory approach to arrive at a consensus on new O&M requirements that are demand - driven, technically and financially feasible, realistically achieved and sustainable; Verify that the level of services proposed has, as• its primary objective, the provision of dependable and equitable irrigation deliveries to the service areas; Devise necessary criteria for ascertaining realistic O&M charges, financial costs, methods for financing them including the breakdown of O&M costs and their apportionment between DOI and WUAs and corresponding water charges; Determine appropriate bases on which water charge pricing mechanisms, resulting from new O&M costs associated with the recommended improved level of O&M services, could be formulated and periodically revised; Review O&M transfer procedure to be used and .rules and procedures that would be adopted together with their impacts on the new O&M services and water rates; and Identify the organiz§!tional arrangements and institutional improvements required to carry out the new O&M services and advise on the breakdown of responsibilities between WUAs and DOI. Preparation of guidelines (excluding O&M manuals) and miscellaneous technical reports 5 of 10 F.1 Prepare comprehensive reports on the review and evaluation and guidelines as required; and F.2 . Develop a comprehensive action plan for conducting field trials at pilot sites. Task (G) Discuss.ion of the O&M recommendations using a participatory workshop approach to obtain consensus on the new norms G.1 Prepare a report on the recommended improved O&M practices, codes, etc. and costs which will form the base document for review of the recommendations; and G.2 Review the recommended O&M practices and costs using a participatory workshop approach. Phase II: Task (H) Assist DOI to incorporate the new O&M practices and collection of charges into its system by undertaking field operations in pilot areas on AMIS; H.1 Agree on pilot sites where field operations are to be undertaken; H.2 Collect detailed information related to system operation, maintenance, infrastructure, source hydrology, drainage, river training works, climate, level of services, water charge collection rates, etc. on field trial sites; .H.3 Prepare detailed schedule of field works associated with running field trials of improved O&M practices and collection of water charges in consultation with O&M office and the WUA; H.4 Identify, together with the WUA, acceptable quality standards for agreed O&M works and their quality assurance measures; H.5 Run field trials on recommended improved O&M plans in the pilot areas on four representative AMIS in close coordination with the local O&M office and the WUAs; H.6 Incorporate recommended water charge setting and collection mechanisms as an integral part of improved O&M practices; H.7 Identify machinery and equipment which are economically justified and required for O&M works; H.8 Assess the appropriateness and effectiveness of improved O&M plans and realization of water charges in pilot areas; and H.9 Incorporate the valuable lessons learnt through field trials in the recommended O&M practices and water pricing and collection mechanisms. Task (I) Assist DOI to formulate mechanisms for: (a) effective O&M rate collection and deposits; (b) periodic revisions of O&M charges; and (c) regulatory arrangements to enforce rate recovery. 1.1 Examine the flexibility of recouping O&M costs by charging the WUAs for irrigation water deliveries on a volume basis (instead of on an area basis) following which, the WUAs can reseH to individual association members. Existing canal infrastructure suitable for metering flows will be evaluated and a 6 of 10 time bound plan for implementing volume charges on some schemes, prepared; 1.2 Examine incentive measures that can be given to WUAs and farmers and incorporated into the O&M fee structure, to encourage prompt payments; 1.3 Assess the regulatory measures required to promote a higher O&M fee recovery under the above mechanisms; 1.4 Suggest on time-bound schedule wbich specifies at what intervals the O&M charges should be revised taking into account the changing economic and financial indicators of Nepal and recommend the forum under which this should be undertaken and the representation required to ensure that the process is transparent and fair; and 1.5 Identify the organization which will receive deposits for O&M charges and the mechanism for converting these deposits into payment for services provided by DOI. Task (J) Transfer of technology to O&M staff J.1 Identify the human resources development and training needs and institutional strengthening measures required in both DOI and WUAs, to implement the recommended new O&M practices, and collection and cost recovery mechanisms; and J.2 Suggest a long term plan for technological transfer to O&M staff in the techniques ot dependable, equitable and efficient distribution of irrigation supplies; scheme diagnostics including their methodology and use of results for identifying O&M constraints and planning O&M improvements; and tracking the O&M operations and revenues. Task (K) Working with DOI and scheme beneficiaries to extend and ·upgrade .the DOI management information system for tracking O&M and for monitoring and evaluation of services on scheme productivity; K.1 Assess existing Management Information System (MIS) in DOI and requirements of the district organizations' participating in joint management of AMIS; K.2 Suggest how existing software and hardware, meant for standardizing reporting and monitoring activities, O&M planning and budgeting, cost accounting, program tracking etc. on various field stations can be linked to what exists at the central organization of DOI in a sustainable and affordable manner in relation to its maintenance requirements; K.3 Review how operational are the prevailing communication systems in various AMIS for transmission and ,receipt of hydro~meteorological and other data for irrigation operations; and K.4 Assess the rehabilitation needs of dedicated communication systems or:i large public irrigation schemes. 5. IMPLEMENTATION 5.1 Time Frame The consulting services, divided into two phases, total approximately 20 months. Phase-I is expected to last about 8 months whereas the second phase will take one whole year covering one complete cropping calendar. Detailed time-bound schedule is given in Figure 2. Field operations will need to run for at least three years (six cropping seasons) to obtain the optimum results. The 7 of 10 consultants' inputs and field operations would be limited to two cropping seasons. The minimum start-up time prior to the commencement of the irrigation operations would be approximately two months in order to setup the pilot areas O&M offices, mobilize staff and equipment and obtain agreements with WUAs. Although the activities of this task are proposed in the study schedule, the relative timing and final level of effort to be committed to the field operations will be firmed up at the end of Phase-I. The O&M programs need to be reviewed in the context of the full budget cycle including inspection • and identification of the works 0oint inspection), planning, estimating, scheduling, budgeting, and monitoring. 5.2 Manpower Requirement The study team composition proposed and manpower requirement is given ·in Table 1 along with estimated staff duration. Main manpower inputs during phase-I will compose of National team leader for a total period of 18 months supported intermittently by national specialist in engineering economic and social aspects. Phase-II program shall be focused mainly on the field applications and monitoring ultimately concluding the study with their findings of the application of improved O&M practices. 5.3 Implementation Arrangement The study will require close participation of AMIS/PJM scbemes beneficiaries in performing reviews, evaluations and definition of the new O&M requirements. A keen understanding and appreciation of the social environment and the farmers' motivations and priorities will be required at all times. The role of the consultants on the team will be one of management support as well as technical-advisory. The timing of the advisory management input should coincide with a cropping season (preferably the rabbi crop). In carrying out the study, the consultant will be expected to interact and coordinate with government agencies, inclusive of Department of Agriculture, NGOs and ongoing projects working in the field of irrigation management transfer (IMTP) activities. Maximum use would be made of their findings to date and relationships established with farmer organizations. Similarly, findings of previous O&M studies and their documentation where these are applicable, should also be duly taken into account. As this study will be carried out concurrently with the irrigation subsidy study it will be carried out in paralled, not independently rather complement the findings to each other. IMD and PD & MED of DOI shall play key role in guiding the conduct and supervision of the study. The consultant shall closely interact with the IMTP TA Team, and their findings and conclusions in the process of Management Transfer activities should be duly incorporated in the study. The consultant shall be directly responsive to IMD and this Division shall assist and co-ordinate along with Project Coordination Office (PCO) of NISP, Regional Directorates, District Irrigation Offices in carrying out the study. IMD shall involve the PJM system offices in carrying out the field operations in the Phase-II program to test the improved O&M practices and collection of water charges. DOI counterparts for field operation will be deputed by the IMD and concerned Regional Directors as appropriate. Tripartite Review Meetings among the government representatives, donors and consultants will review and discuss the key reports and outputs of the study, and decide on further actions to be carried out by the consultants. The Meetings will be held as and when required. 8 of 10 6. REPORTS The reporting requirements for the study are as follows: 1. Inception report, with a revised work plan ............................................................ End of Month 2 2. Progress reports ..............................................................................................................Quarterly 3. A report on the current O&M practices and the revised O&M needs and costs ......................................................................................................................End of Month 7 4. Final report on improved O&M practices.......................................................................... Month 9 5. Completion report including the results of the field operations in pilot areas...................................................................................................'.......... End of Month 20 6. Miscellaneous reports and guidelines pertaining to key tasks.............................. End of Month 8 9 of 10
Table 1 Study of O&M Practices Consultants Team Composition I. National Consultant: Irrigation Management Specialist/ Team Leader Irrigation Engineer (O&M) Financial Analyst Macro Economist Monitoring & Evaluation Specialist . Training Advisor Workshop Facilitator Sociologist Unallocated Sub-Total Total 10 of 10
Nepal Irrigation Sector Project Implementation Schedule for Irrigation O&M Cost and Water Charge Recovery Study Activity Description Project Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Phase -1 Inception (mobilization, office setup, staffing, etc.) Inception Report & review ' ~ Review of O&M practices - Analysis of data Impact assessment of O&M practices Dev. of improved O&M practices Construction methods & machinery, O&M Dev. of costs and support for new O&M w;.,,. Analysis of diff. O&M rates, recovery mechanism, etc. Preparation of guidelines Report on improved O&M & revised costs Participatory workshop review a;ni,- DOI review - Finalization of improved O&M practices ' - Phase - II Field trials of new O&M practices - Pilot areas - Setup of offices, staff mob. in pilot areas - Field operations Completion Reports I • Quarterly Reports ,, FILE: O&M-FIG2.XLS ·intermittent activity - Continuous activity 16 17 18 + ATTACHMENTS Annex D
Figure 2 19 20 ATTACHMENT 7 TOR OF CONSULTANCY SERVICE FOR SMIP-111 IMPLEMENTATION ATTACHMENT 7 TERMS OF REFERENCE FOR CONSULTING SERVICES (ICB) FOR NEPAL IRRIGATION SECTOR PROJECT PACKAGE 11- TA .CONSULTING SERVICES TO SUNSARI MORANG •IRRIGATION-Ill PROJECT IMPLEMENTATION 1. OBJECTIVES The main objectives of the Consulting Services are to assist the Department of Irrigation (DOI), Ministry of Water Resources, for the successful and smooth implementation of the SMIP-11I (Phase- 1) project, and thereby to achieve the original project objective and target. The main scopes of the Consultant Services are to carry out the detailed design, and to assist the SMIP office for Tender Negotiation detail design, planning, construction supervision, institutional development, and water management. 2. THE PROJECT (SMIP-111) 2.1 Background of SMIP The Sunsari Morang Irrigation Project (SMIP) is located in the eastern region of Nepal and diverts water from the country's biggest river, the Koshi. In 1954. His Majesty's Government of Nepal (HMG/N) reached an agreement with the Government of India (GOI) under which GOI undertook to finance and construct the Chatra Canal Project (CCP) in Nepal, which was later renamed the Sunsari Morang Irrigation Project (SMIP). CCP aimed to irrigate 68,000 ha (net) of land using water diverted from the left bank of the Koshi river by an inundation intake regulator. The construction of the system started in 1964, and it was handed over to HMG/N in 1975 after trial operations. The features of the canal network handed over in 1975 are (i) 53 km of main canals, (ii) 203 km of branch canal, and (iii) 234 km of minor canals. The irrigation system handed over covered turnouts each serving an area of over 200 ha and tertiary canal systems below this level was not constructed. The System therefore could not properly function as expected. This problem was compounded by siltation problems, which became progressively worse over the years as the Koshi river shifted westward. As a result. CMC as originally built, did not fulfill its objectives and HMG/N requested IDA's assistance to overcome the shortcomings of CCP. The IDA involvement in CCP has been divided into stages: Stage-I works were approved in 1978 for US$ 30 million to rehabilitate and carry out the command area development (CAD) of 9,750 ha without the uppermost command area of 10,000 ha. under the Sukhsaina Distributory. The reasons for leaving out the uppermost 10,000.ha. under the Sukha~ina Distributory were the location of a thickly forested area in the upper reaches and a sandy soil area in the lower reaches of the command area. The Stage-I works were completed in 1987, however, the steps taken under Stage-I to deal with the siltation problem were not effective. In 1987, IDA processed a second stage works, Stage-II works were, for the amount of US $ 40 million for 16,700 ha. of additional rehabilitation and command area development plus construction of 1 of 8 facilities to eliminate the siltation problem. The Stage-II works were completed in July 1994. However, the siltation problem, exacerbated by the continued westward migration of the Koshi river, proved extremely difficult to solve, and in 1991, HMG/N agreed with the international Panel of Experts (POE) Proposals, which included some modifications to the Stage-II development concept. Such as: (a) moving the intake structure 1,300m upstream, (b) constructing a largest capacity desilting basin, (c) utilizing Dredgers for removing silt from the basin, and (d) constructing a micro- hydropower unit in the head reach of the main canal to provide power for the dredger operations. A supplementary IDA credit of US $ 28 million was approved in February 1993 under Sunsari Morang Headworks Project (SMHP), which provides the above additional works for the new intake and adequate desilting facilities was completed in 1996. The completed desilting facilities under the Stage-II and SMHP have proved to be successful. There is no limitation in the availability of water, the soils are good, and the farmers are competent. The water management problems have been greatly reduced by the adoption of a simply structured irrigation layout under the Stage-II. In 1995, HMG/N carried out the Feasibility Study, and Detailed Design for the sample area (1350 ha) under the financial assistance of IBRD. In the Feasibility Study, it is proposed to implement a stage- wise development of SMIP-11I with the participation of water users in every cycle of the project from project design through implementation and Joint Participatory Management (JPM) in the system's operation and maintenance (0 & M) after completion of the command area development. In . . accordance with the recommendation of the Feasibility Study, HMG/N has decided to implement SMIP-11I with a net irrigation area of 15,100 ha and restoration of the Chatra Main Canal. 2.2 Outline of SMIP-111 Works The component of SMIP-11I includes the following civil works (i) restoration of Chatra main canal, (ii) improvement of irrigation and drainage network in the Stage-Ill area (15, 100 ha) which were separated out into major works down to tertiary level and optional works for the watercourses and collector drains, and (iii) buildings. The construction works including water courses as an optional work (15,100 ha) will be carried out under ICB contract. The details of the civil works required for SMIP-111 are as follows : (1) Restoration of Chatra main canal system (a) Description Earthwork New drainage excavation parallel to CMC . Left canal bank heightening (0.3 to 0.5 m) about Repairing of inspection road (right bank) Gravel metalling on canal bank inspection road (b) Structures 2.4 km 5 km 18 km 19.4 km Work Q'ty Flume wall heightening of cross drainage structures (0.1 to 0.5 m) 12 nos. Steel gate heightening at cross regulator 1 no. • Improvement of cross regulators (CR), new gates, crest lowering and associated works 3 nos. Addition of reinforced concrete barrel (1.8 m x 2.4 m x 110 m) on Juri Siphon 1 no. 2 of 8 New reinforced concrete baffle type chute drop New gate installation (3 nos. x 1.4 m x 1.4 m) for Escape Demolish superpassage Demolish crest at CD Gabion mattress in d/s of cross drainage (CD) and 1 no. 1 no. bridge (BR) 45 nos. Concrete lining at u/s & d/s of CD and aqueduct AQ (t=150 mm) 36 nos. Concrete lining in escape 2 nos. Junction structure at CMC parallel drain 3 nos. Drainage box culvert at CMC parallel drain Drainage drops and cut-offs Other minor repair works on the structures (c) Construction ofKoshi Easter embankment 5.5 km• (d) Rehabilitation of Budhi Aqueduct cum S.L.R Bridge at 105 R.D. of CMC. 1 no. 2 nos. 3 nos The quantities of works in the Bill of Quantity in the Civil Contract Documents were estimated based on actual work quantities in Stage-II construction. However, detailed design for the sample area (13,50 ha) located at the head reach of Biratnagar secondary canal and Hathimuda sub-secondary canal were carried out such that the construction could be carried out during the first year of Stage-Ill (Phase-1) implementation. The detailed survey and design for other areas (13,750 ha) shall be carried out only one year prior to construction under this consulting service. The design Concept in SMIP-11 shall be followed in SMIP-111. Unless otherwise, the work quantities for respective items would be differed from the tender documents. It is so essential for comprehensive co-ordination among all the works such as survey, design, construction, organization of WUGs, walk-through along watercourses by WUGs, box cutting by WUGs, Water management, institutional development etc. 3. SCOPE OF CONSULTING SERVICES The scope of the Consulting Services for both task and assistance concept covers the following items: 3.1 Task Concept 3.1.1 Review of SMIP-11 design Principles. 3.1.2 Review of irrigation and drainage layout. 3.1.3 Review of detailed design in the sample area (1,350 ha), 3.1.4 Fixing water courses alignment after walk through with water users group (WUGs) 3.1.5 Canal route survey, detailed design of irrigation and drainage canal system for the other areas (13750 ha), 3.1.6 a) Detailed design for canal and road system, b) Review and finalize the survey, design and quantity estimate of the Koshi Eastern Embankment (5.5 km), c) Review the design of Budhi Aqueduct cum single lane road bridge, 3 of 8 Training of the government staff in design, construction supervision, institutional development, and water management, Bi-monthly report, Annual report, completion report, and O & M Manual, Quality Control of the works procured under ICB and Checking and certifying of as built drawings Assistant Concept Overall Project Management, Preparatory works, Institutional development including organization of water users Associations (WUGs WUCs, WUCCs, etc.) Construction supervision, Water management, Advice on Operation and Maintenance of SMIP, and Assist and advice on agricultural strengthening support. TERMS OF REFERENCE The terms of reference for both the expatriate and local consultant services shall include but not limited to the following 4.1 Task Concept 4.1.1 Review of SMIP-11 design Principles to review and modify the SMIP-11 design principles based on the lessons learnt during the 0 & M of SMIP-11 area. 4.1.2 Review and Modification of Irrigation and Drainage Layouts to review and modify the irrigation and drainage canal layout based on the walk- through practices with farmers and members of WUGs and actual topographic survey results. to review and modify irrigation and drainage flow diagrams, if necessary, and to review the road network and its related structures. 4.1.3 Review and Modification of Detailed Design for the Sample Area (1350 ha) to check and review all the existing design and drawings, to confirm the alignment of water courses with members of WUGs, taking into account the topographic survey results, and to check construction materials, especially for the filling materials. 4.1.4 Fixing water course alignment to carry out joint walk-through to fix the water courses with members of WUGs. 4.1.5 Canal Route Survey and Detailed Inventory Survey for other-Area (13,750 ha) to perform the check survey of the benchmark network established at the Feasibility Study stage. to carry out irrigation canal route survey along secondary, sub-secondary,tertiary and water course. 4 of8 to under-take drainage canal route survey along secondary, sub-secondary, tertiary and collector drains, and to perform detailed inventory survey of the existing canal structures for renovation design. 4.1.6(a) Detail Design for Canal and Road System to carry out hydraulic calculation for canal and its reiated structures, to prepare design drawings for longitudinal profile of canal system and cross sections, to prepare design drawings for related structures for irrigation, drainage and road system. 4.1.6(b) Koshi Eastern Embankment Works to review the alignment of the embankment to check the design and calculation of the embankment and spurs. to estimate work quantities 4.1.6(c) Rehabilitation of Budhi Aqueduct cum S.L.R. Bridge, to carry out the foundation assessment of Budhi Aqueduct cum SLR Bridge, to review the design of Structure for rehabilitation, to estimate work quantities, and to check and modify the construction drawings to be submitted by the contractor. 4.1.6 Training of the Government Staff 4.1.7 Reports to train the SMIP staff in design and construction supervision through the on-the-job training, to train the SMIP staff in institutional development including organization of WUGs, WUCs, etc., to train the SMIP staff in farmers participation program for box-cutting of water courses, to train the SMIP staff in water_ management including operation and maintenance. The Consultant shall prepare 1Ocopies of the following reports: Bi-monthly reports, Annual reports, O&M reports, PBME reports, Completion report, Speci~I study reports as required 4.1.8 Quality control to conduct laboratory test of the materials to be used by the contractor to carry out quality control tests as per the contract • to ensure that the works are beiog done as per the contract specifications to certify by contractors payment claims regarding quality control 4.1.9 As built drawings to check the as built drawings submitted by the contractor. to certify the as built drawings to work out the detailed quantity as per the built drawings 4.2 Assistant Concept 5 of8 4.2.1 Overall Project Management to assist in the preparation of implementation schedules & annual budget program, to assist in monitoring of the work progress, to assist in preparation of annual report to be submitted to IDA for every fiscal year. 4.2.2 Preparatory Works to assist in preparing the detailed implementation schedule for design works, construction works, and institutional development activities. 4.2.3 Institutional Development including Organization of Water Users Associations · to assist in organizing water users associations (WUCs, WUCCs, etc.) to assist and advised /execution of joint farmers participatory program in pre- construction, construction and O&M stage, to assist the SMIP staff for joint farmer participatory program for a part of water courses construction such as box-cutting, sod facing etc., to assist and advise the project in conducting a social assessment study of the area each year, for which designs have been completed. The study should identify the land acquisition requirements and economic rehabilitation measures required as per the Land Acquisition Plan. to assist the SMIP to devise mechanism to effectively involve the potential water users belonging to diverse ethnic groups, different land holdings, tenancy, and gender status in the SMIP-111 development area and integrate identified social/gender development needs and concerns in the establishment and. strengthening of WUAs and irrigated agricultural management system. to assist and advise in the preparation and implementation of self-financing Irrigation and Drainage District (SIDD)' concept in the project to assist the SMIP staff in water management training for members of WUGs, including the operation and maintenance of the canal system, to assist the SMIP office for turn-over of the irrigation system to WUCs or WUCCs, to assist the SMIP staff in training the members of WUGs for operation & maintenance of the system to be under taken by WUGs. 4.2.4 Construction Supervision To assist the SMIP office for construction supervision of the civil works under taken by the ICB as well as NCB contracts including the following : to review contractor's work schedule, taking into account the whole implementation schedule such as the survey and design schedule as well as WUG's organization schedule, etc., to supervise and control the progress, cost, and safety of the construction works, to check and approve the setting out and level established by· the contractor, to check and approve the contractor's plan, schedule and construction drawings to be prepared and submitted by the contractor, to modify the design, technical specification, construction drawings, related calculation and estimate from time to time as required, to check and approve the construction materials and equipment proposed by the contractor, to check and certify the contractor's claim for progress payment, to settle the contractors claim in accordance with the contract, to maintain proper records necessary for preparation of the completion report, 6 of8 to perform the final inspection of all works executed by the contractor, to advice the SMIP staff to issue the certificate of partial completion and/or completion of the works, and to assist and advice the SMIP staff in compiling of the As-built drawings to be submitted by the contractor. 4.2.5 Water Management to assist and advise the SMIP office in operation and maintenance for irrigation and drainage system in the Stage-Ill area and the main canal system of SMIP to be undertaken by SMIP, to assist and advise the SMIP office in irrigation water scheduling for each crop, using OMIS package: Currently in use with the project • to assist. and advice in farmer's training undertaken by SMIP for water management including operation and maintenance of canal system to done by WUGs, to assist the SMIP office in the farmers participatory program, especially in box-cutting to be done by members of WUGs, in NCB contract including supervision of watercourses construction under the NCB contract, to advise and assist the SMIP office in collection of water charge from the members of WUGs, and to advise and assist the SMIP office in turn-over of the irrigation system to WUCs or WUCCs. 4.2.6 •Advice on Operation & Maintenance of SMIP to assist and advise the SMIP office in operation and maintenance of Headwork components, including dredgers. to advice the SMIP office in operation of the main canal system and completed irrigation system. under this services, to assist and advice in maintenance of the main· canal system and completed irrigation system under this services, to assist in preparation of annual operation and maintenance schedule and its budget requirements, to advice the SMIP office in operation and maintenance to be done by existing WUGs in the completed_ area under this services. 4.2.7 Assist and Advice on Agricultural Strengthening Support to co-ordinate among the agencies concerned for the agricultural development and strengthening support, to advice SMIP in conducting the agricultural training for members of respective WUGs in collaboration with other agencies concerned. 5. IMPLEMENTATION SCHEDULE The tentative project Implementation schedule of the project is shown in Fig-1. The DOI intends to complete all the project works within 5 years from January 1998, including the survey and design works, construction works, institutional development, and water management as stipulated in TOR The survey and design works for the area of 13,750 ha and restoration portion of CMC shall be made one year prior to construction except the sample area of 1,350 ha. In general the design concept of SMIP-11 shall be followed in SMIP-111. Unless otherwise, the work quantities for respective 7 of8 documents. It is so essential for comprehensive co-ordination among all the works such as survey, design, construction, organization of WUGs, walk through along watercourses by WUGs, box-cutting by WUGs, water management, institutional development, etc. -6. REPORTS The consultant shall prepare and submit 10 copies of the following reports to SMIP during the Services as shown in the Implementation Schedule: (1) Bi-monthly Reports, (2) Annual Reports, (3) . O&M Report, (4) Project Benefits, Monitoring and Evaluation (PBME)Reports, (5) Completion Report, and (6) Special study reports as required 7. CONSULTANT SERVICES. A team of expatiate consultants with local associates will be engaged by the Department of Irrigation for a period of 5 years. A total of about 80 person-months of input of expatriate experts and 634 person-months input of Local experts for the engineering services is required. The 634 person- months input of Local experts, includes 193 person months of HMGN staff. In the area of Institutional Development/Water Management, a total of about 2 person-months of expatriate experts and 865 person-months of Local experts is required of which 390 person-months consist of HMGN staff. A tentative manning schedule of the consultancy services as given in Table 1 (Attached). 8 of8 QTY. MATERIAL PRICE AMOUNT TUCKERS AIR CONDITIONING & HEATING 12-E Meem Avenue Gaithersburg, Maryland 20877 (301) 670-0034 (800) 209-7878 DATE ":?'-~--1:>6 NAM,;.< ~v'i/1,,4 18824 I e.:/~°i:a. ADDRESS ✓ ~a~ u~~;,i:.1-A 'r?.. CITY PHONE ~..,:,4.- 1/J~IZ.. ~ - qc,~ ~ ~~.51?.., I "Y~'i? JOB LOCATION ) <Jrr ~ JOB PHONE I ORDER TAKEN BY STARTING DATE 6--r~1'75" Dez:::;::_...,, ~--f'-L. ,:_,J_J k...c:~ ~"",-# St~r6.- • , ~ ✓ ~ /Lk:..J"~ E-4~ ,:,~• ./'-4.c /.-~ ck-,,,__~,,., (-:..._. __, - ., .k,,,, J -···· /. ~?!'i:,~ .,.~~ ff e·-_, _.-4:?,,_.,,- ~..r-= ~ .1:::::::":--.1 :,,.......,.....-..N"!"'".-~ • ✓• - - - ._., ~ffe-L- ,~~ oJ-, {jhe_? J_l:/1;).,s'2 -1/u, ak_tvlr./4 ~--,(,2,b.....- ~ , 'r-.e:--1,,..,,.,.,,,_,__.e..~ t--1 ~ ~~,d-...f~~!J~ V 4H~~ . TOTAL a:o -Ii-.-~ -f..'~... MATERIAL TOTAL
:.;z) LABOR ' i TAX I SIGNATURE DATE COMPLETED C]'bank~u PAY THIS AMOUNT c:) 7?~
NEPAL IRRIGATION SECTOR PROJECT SUNSARI MORANG IRRIGATION Ill PROJECT TECHNICAL ASSISTANCE - MANNING SCHEDULE DESCRIPTION UNIT YEAR 1 2 3 International Consultants: Chief Engineer Mm 9 9 9 Design Engineer Mm 5 5 5 Construction Engineer Mm 6 6 6 Unallocated Mm 2 1 1 Subtotal International 22 21 21 National Consultants: Design Engineer - A (Co- Team Leader) Mm 12 12 12 Design Engineer - B *3 Mm 36 36 36 Design Engineer - C *2 (Counterparts) Mm 24 24 24 Survey Engineer Mm 12 12 12 Overseer - A *2 Mm 24 24 17 Overseer - B *2 (Counterparts) Mm 14 24 14 Surveyorrs *5 Mm 30 35 35 Construction Engineer - A Mm 12 12 12 Construction.Engineer - B (counterpart) Mm 9 9 9 Overseer -A Mm 9 9 9 Overseer - B (Counterpart) Mm 6 9 9 Subtotal National 188 206 189 Support Staffs and Logistics Mm 73 74 75 TOTAL 283 301 285 file: sch-sm1p.xls ATTACHMENT 7 TABLE-1 TOTAL 4 5 Mm 9 36
6 24 1 5 16 0 80 12 48
OHM INSTITUTIONAL STRENGTHENING TO IMPLEMENT HYDROLOGICAL STUDY AND BASIN PLANNING ATTACHMENT 8 TERMS OF REFERENCE FOR CONSULTING SERVICES FOR NISP INSTITUTIONAL STRENGTHENING COMPONENT OF DHM IMPLEMENTATION PACKAGE Ill -TA CONSULTING SERVICES TO DEPARTMENT OF HYDROLOGY & METEOROLOGY TO IMPLEMENT HYDROLOGICAL STUDIES INCLUDING BASIN PLANNING INTRODUCTION The World Bank has provided a loan grant to His Majesty's Government of Nepal HMGN to implement the hydrological and meteorological activities in the west~rn regions of Nepal. The Department of Hydrology and Meteorology (DHM) would like to receive consulting services to implement part of the activities assigned to them. The services expected from the Consulting services may be broadly classified into three groups: •1. Hydrometric and sediment observation works 2. Basinwise water availability assessment (basin planning) 3. Processing, analysis and interpretation of data Scope of works and terms of _reference for each job is described below. A team of national and international consultants shall assist DHM to execute the assigned tasks. The overall objective of the services is to build and strengthen the institutional capacity of the DHM to handle massive hydrological and meteorological data inflow, provide high quality data for water resources development needs of the western regions of the country, assess available quantity of water primarily for irrigation purposes. The required services include the processing, analysis and interpretation of the data through computerized software. The period of consulting service is expected to start in the yearly 1998 until 2002. The detaiis of works are described in the proceeding pages. 1. TERMS OF REFERENCE FOR HYDROMETRIC AND SEDIMENT OBSERVATION ACTIVITIES Objective of the services The Department of Hydrology and Meteorology (DHM) requires consulting services in carrying out Hydrometric and sediment observation and analysis works ·in the Western regions of Nepal under Nepal Irrigation Sector Project. The overall objective of the consulting work is to. provide reliable water level, discharge and sediment load data from the 92 river gauging stations. In particular the consulting services will provide: Discharge and sediment load measurements at all gauging stations at different times of the year and at different stages using internationally accepted methods; Establishment of stage-discharge relationship at all gauging stations; Establishment of discharge-sediment load relationship at all gauging stations; Carrying out indirect discharge measurements (such as slope-area method) to assess the floods of higher magnitude; Determination of Manning's n for all stations and for different stages; Data compilation, computerization, data validation, computation and checking; Preparation of data summary and yearly report; 1 of 7 Provide in house training to the OHM technicians in the field. Scope of services.and terms of reference A team of national consultant is to be engaged for a period of five years starting from early 1998. The number of gauging stations to be covered will be: • Year High flow Medium flow Low flow Total (i) Regular discharge measurements The minimum number of discharge measurements would be at least one number at each station at each flow stage (high, medium, low). In the early years it is necessary to have more measurements to establish the stage-discharge relationship. If the relationship is found stable, then afterwards only the minimum number of measurements would be enough to confirm the stability of the relationship. If the relationship is not found to be stable then accordingly the frequency of discharge measurements is to be increased. The discharge measurements are to be carried out by duly calibrated standard equipment and approved by OHM. The method used should also be internationally accepted and approved by OHM. (ii) Computation of discharge by indirect methods The Consultants shall carry out slope-area measurements every year at each gauging site to ascertain the peak flow and to calibrate the stage-discharge relationship. If possible discharge can be determined by: Measurement of flow through culverts; Measurement of flow through width contractions; Measurement of flow over dams and highway embankments; (iii) Sediment load observation and analysis Suspended sediment and bed load is to be sampled regularly according to the OHM approved method at all gauging stations. Laboratory facilities will be available at the nearest OHM Basin Office. Sampled analysis would be transported to the OHM office and analysis shall be carried out to determine the sediment concentration and particle sizes. (iv) Primary data processing Computation of stages In accordance to the availability of instruments at each gauging station the observed river stages shall be entered into the computer and examined for its quality. The paper charts shall be digitized and computed accordingly. The following river stages shall be computed: Mean, maximum and minimum daily gauge- heights; Instantaneous yearly maximum and minimum gauge-heights; 2 of7 Maximum and minimum gauge-heights during instantaneous maximum and minimum flows; Flow computation All stage and discharge data need to be entered into the computer in a OHM approved database; In an appropriate format all the discharge measurement data are to be computed with the help of a suitable computer program; Stage-discharge relationship shall be developed. OHM approved standard methods shall be used for extrapolation and interpolation purposes ; The following type of discharge measurements shall be computed: Mean, maximum and minimum daily discharges; Instantaneous yearly maximum and minimum discharges; Yearly hydrograph showing mean daily discharges, flood hydrograph showing hourly discharges and low flow hydrographs shall be prepared in a large scale. Sediment load Computation In accordance to the laboratory results, total sediment load shall be worked out for all gauging stations and will be reported in the following manner: Daily, monthly and yearly sediment load in tons passing through each gauging station; Particle sizes. • (iv) Determination of Manning's n Manning's n will be determined for each gauging stations at different stages and a manual with photographs showing different conditions shall be prepared. (iv) Preparation of year-book Year-Books shall be prepared in a suitable format to report the computed data. (iv) Training Provide in- house training to OHM technicians in discharge measurements and sediment sampling and analysis Consultant's schedule The Consultant shall work according to the attached schedule. Miscellaneous Limited numbers of Price type Current meters and sediment samplers shall be provided by the OHM. Lab facilities for sediment analysis shall also be provided. All other equipment, transportation, logistics, stationeries and other needful shall be provided by the Consultants. Reporting The Consultants shall report all the activities regularly (at least once in two weeks) to the Project-Manager. Progress reports shall be submitted in a monthly basis to the OHM. Detailed reports shall be prepared and submitted to the OHM each year. Final report covering each and every aspects of the consulting job shall be prepared and submitted before the end of_the Consulting services. 3 of7 2. TERMS OF REFERENCE FOR BASINWISE WATER AVAILABILITY ASSESSMENT STUDIES IN 77 BASINS OF THE WESTERN REGIONS OF NEPAL Objectives of the Consultancy services The Department of Hydrology and Meteorology (DHM) under Nepal Irrigation Sector Project requires consulting services in carrying out "Basinwise Water Availability Assessment in 77 Basins of the Western Regions of Nepal". The overall objective of the consulting services is to provide adequate knowledge about the seasonal availability of surface water in the 77 basins, primarily for irrigation development and secondarily for hydropower generation, urban and rural water supply and for other multipurpose uses. In particular the consulting service will provide: Collection of all available hydrological, meteorological; agrometeorological, geohydrological, geomorphological and other relevant data; Assessment of the overall water availability for consumptive and non-consumptive utilization by basinwise and sub basinwise making use of the collected, processed and measured drological data. The water availability should be expressed in terms of: - # monthly flows of an average year # mean monthly flows in dry season # monthly dry season flows of 80% probability # instantaneous maximum and minimum discharges Carry out rainfall-runoff analysis; Estimation of runoff from ungauged areas. Use of information on aquifer properties and groundwater storage as far as possible; Preparation of 5 sets of 1: 250,000 scale topographic maps showing all basins and subbasins of the area under study; _ Preparation of 1: 25,000 scale map of each basin/subbasin showing all information related to hydrology, meteorology and water resources in general; A comprehensive study of the water-balance of each basin/sub basin; Scope of-work and terms of reference A Team of international and national consultants shall be engaged for a period of approximately three years to complete the services. The 77 basins and sub basins selected for the assessment of water availability are annexed. Basically the services required will be: • Preparation of 1 : 250,000 scale map showing the area of all basins and sub basins covered under this study; • Preparation of 1 : 25,000 scale map separately for each basin and sub basin showing all information about hydrology, meteorology, water resources and other relevant matters; • Collection of -all available hydrological, meteorological, agrometeorological,, geohydrological, geomorphological and pertinent data required for the study; • Examination and validation of the available collected data; • Determination of the basin characteristics of each basin and sub basins; • Study of each basin and sub basin on land use, land system and available irrigable land in the study area; • Study of operating and planned irrigation systems in the study area; • If necessary carrying out additional discharge measurements in case of doubtful or too short records or no records for rainfall-runoff analysis; • Determination of PMP for the study area; • Determination of PMF for each individual basin and sub basin; 4 of7 • Carrying out of flood frequency analysis, drought analysis and preparation of flow duration curve; • Examination of presently available methods to estimate the runoff of a given catchment and development of an appropriate methodology to estimate runoff for the ungauged catchment of the study area; • Full scale inventory of all irrigation schemes and of their water use in the study area and assessment of water requirements for irrigation in the study area; • Estimation of crop water requirements for each basin/sub basin; • Estimation of evapotranspiration data for all basins and sub basins; • Review of earlier developed methods for the regionalization of hydrological parameters and characteristics; • Entry of all available and relevant, but not yet computerized hydrological and. meteorological data of the study area and carrying out of primary data processing; • Assessment of the overall water availability for consumptive and non-consumptive utilization by basinwise and sub basinwise making use of the collected, processed and measured hydrological data. The water availability should be expressed in terms of: - monthly flows of an average year - mean monthly flows in dry season - monthly dry season flows of 80% probability - instantaneous maximum and minimum discharges • Water balance study of all basins and sub basins of the study area; • Validation, completion and analysis · of evaporation data and all monthly point rainfall series in the region; • Computation of monthly aerial rainfall series in the study area; • Establishment of dimensionless flow recession curves and possible regionalization of such curves; • Assessment of the extent of damages done by the rivers and development of a model river training works for the region; • Schedule of work The Consultant shall work according to the attached schedule. Reporting The Consultants shall report all the activities regularly (at least once in two weeks) to the Project-Manager. Progress reports shall be submitted in a monthly basis to the OHM. Detailed reports shall be prepared and submitted to the OHM each year. Final report covering each and every aspects of the consulting job shall be prepared and submitted before the end of the Consulting services. 5 of? ) 3. TERMS OF REFERENCE FOR PROCESSING, ANALYSIS AND INTERPRETATION OF HYDRO-METEOROLOGICAL DATA IN THREE WESTERN REGIONS OF NEPAL Objective of the services The Department of Hydrology and Meteorology (DHM) requires consulting services to process, analyze and interpret hydrological and meteorological data in the western regions of Nepal under Nepal Irrigation Sector Project. The overall objective of the consulting work is to provide processed, analyzed and best interpreted reliable hydrological and meteorological data· primarily for the purpose of irrigation development in the region. Scope of work and terms of reference In the DHM, a powerful database is required to handle the hydrological data flow and adequate software to process, analyze and interpret the already collected and the future data generation. The basic services to be provided by the consultants shall be: • Investigation and development of a suitable customized database to handle the hydrological, sediment and meteorological data inflow in the DHM; • Introduction of GIS in the DHM; • Preparation and handling of the hydrological, sediment and meteorological data in accordance to GIS concept; • Development of suitable computer program to process the discharge measurement data and indirect discharge measurement data, such as slope-area measurement, measurement of flow through culverts, measurements of flow through width contractions, measurement of flow over dams and highway embankments. • Development of computer programme for: - rainfall-runoff analysis; - flood routing; - frequency distribution for extreme·hydrologic events and selection of appropriate distribution for each case - flow duration curves; - determination of PMP and PMF; - flow forecasting models; - development of sediment load estimation model for the region • Entry, processing and analysis of already collected but not yet computerized hydrological data in the DHM.· • Interpretation of the available data of the region: for irrigation purpose for the development of hydro-power ; for environment protection purposes; for river training; for drinking water supply purposes; for flood forecasting purposes; for reservoir sedimentation • Provide in-house training to DHM technicians in data handling, processing and use of computer software designed for the project purpose. OHM professional staff will be given in-house training on data interpretation, use of computer software and hydrological programming. 6 of7 MANPOWER The following manpower is envisaged to complete the above mentioned tasks and activities under the three broadly classified groups. INTERNATIONAL EXPERTS Position Person-months International Consultant on hydrological data programming, management (Team Leader) 12 International Expert on hydrology 6 Other short-term international Experts 3 NATIONAL EXPERTS Senior Hydrologist Hydrologist Sedimentologist Irrigation Engineer Agronomist Hydrometric and Sediment Technicians Sui:mort Staff Computer operator Drafts person
1080 1606
7 of7 ATTACHMENT 8 TECHNICAL ASSISTANCE MANNING SCHEDULE Package Ill - T.A. to OHM for implementing Hydrological studies including basin planning. TABLE 1 Designation Unit Yearwise Man month Requirement Total 1 2 3 4 5 International 1 Consultant on Hydrological Programming and Data Managment Mm 0 4 4 3 1 12 2 Expert on Hydrology Mm 0 1.5 2 2 0.5 6 Short Term Consultants: 3 Sedimentologist Mm 0 1 0 0 0 1 4 Meteorologist Mm 0 0 0.5 0 0 0.5 5 Unallocated as Required Mm 0 0 0.5 0.5 0.5 1.5 Sub total Mm 0 6.5 7 5.5 2 21 National 1 Senior Hydrologist Mm 0 5 10 10 5 30 2 Hydrologist Mm 0 60 120 120 60 360 3 Sedimentologist Mm 0 10 20 20 10 60 4 Irrigation Engineer Mm 0 0 20 25 15 60 5 Agronomist Mm 0 0 7 8 1 16 • 6 Technicians Mm 0 200 350 350 180 1080 Sub total Mm 275 527 533 271 1606 Support Staffs 1 Drafts Persons Mm 0 0 48 48 24 120 2 Computer Operator Mm 0 5 20 20 15 60 Sub total Mm 0 5 68 68 39 180 File: OHM-SCH.XLS ATTACHMENT 9 OVERALL NISP IMPLEMENTATION SCHEDULES NEPAL IRRIGATION SECTOR PROJECT PROJECT IMPLEMENTATION SCHEDULE COMPONENT 1. INFRASTRUCTURE DEVELOPMENT (DOI) PARTICULARS UNIT TARGET QUANTITY 1 2 (a) IRRIGATION INFRASTRUCTURE (A) Civil Works 1 Irrigation works (i) Surface water Hills - Major Rehab Ha 4,000 320 960 Hills - Minor Rehab Ha 7,500 600 1,800 Terai - Major Rehab Ha 8,000 640 1,920 Terai - Minor Rehab Ha 12,000 960 2,880 Sub total Surface water 31,500 (ii) Groundwater Deep Tubewells - New Ha 4,550 360 1,080 Shallow Tubewells - New Ha 2,950 240 720 Deep Tubewells - Rehab Ha 250 20 60 Shallow tubewell - Rehab Ha 250 20 60 Sub total Groundwater 8,000 (iii) Turnover to Beneficiaries Surface Water - Hills Ha 500 40 120 Surface Water - Terai Ha 1,500 120 360 • Groundwater ( Deep Tubewells ) Ha 500 40 120 Sub total turnover to Beneficiaries 2,500 (iv) Participatory Joint Management Ha 2,500 200 600 Sub total Irrigation Works 44,500 (8) Consultancy Services 1 Feas, Studies & Investigation of FMIS Amount 25,665 11/ ✓ ,J,~m,'~,.,,..p;;,1§.'J'A~%[~f,%(),'.fr.{$,;k'K"/,.,.., ~-Yff %,, file : table-1 s.xls AmounULump Sum in NRs'000 , ,'.:,m,, m !Wii¾:V\ ,f''%P x ,r,(®N:,~_!$,iffe!MP¥,'i»"'¢-:n;;r;,¾'.ffi2 ATTACHMENT 9 Sheet 1 of 13 TABLE 1
1,320
t!~l:W'o/% COMPONENT 1. INFRASTRUCTURE DEVELOPMENT (DOI) PARTICULARS UNIT TARGET QUANTITY 1 (C) Vehicles and Transport Equipment 1 Four Wheel Drive District Irrigation Offices 1 each No. 25 6 Groundwater Field Offices 1 each No. 5 1 Regional Irrigation Directorates. 2 each No. 6 2 Headquarters No. 3 1 Sub total Four Wheel Drive 39 2 Motorcycles District Irrigation Office 2 each No. 72 14 Groundwater Field Office 2 each No. 10 2 Headquarters No. 4 2 Sub total Motorcycle 86 3 Bicycles No. 80 20 4 Horses for Hill Districts No. 20 5 RECURRENT COSTS A. O&M of Irrigation Works and Bldgs./a Lump Sum 50,000 " B. lncrem. Staff cost for lmplem. NISP/b Lump Sum 46,000 ff- ,,,,&%5.,%,, C. Vehicles Operation and Maintenance DIO Vehicles Oj&M No. 86 6 GFO Vehicles O&M No. 14 1 RID Vehicles O&M No. 24 2 D1O Motorcycles O&M No. 150 10 GFO Motorcycles O&M No. 28 2 Horses Maintenance No. 70 5 file : table-1s.xls AmounULump Sum in NRs'000 ,'.;r,~1"4",Affi,'?"'M 0,W&i >'/4% Wfef:,,;,;,,W,,':?"4¾ %if-dUif1/-',, 1/" ¼!% ,;f'//,1/f,,¾ ,ff ,;;74 ATTACHMENT 9 Sheet 2 of 13 TABLE 1(contd)
-
- - - ?!,,)a, @¼'% ,;,;-;,,, j' ,,,,',/',: ,,.,;;,, ~V.' 7»% *-,~iv¼ 0hl'X% ,:x, \X%" /'%'$,:;¼½0%.$, !AA ~4 Wffe;z;&.%'1 ij/f'AWA'.W,fff;:'% "M v? COMPONENT:- 1. INFRASTRUCTURE DEVELOPMENT (DOI) PARTICULARS UNIT TARGET QUANTITY 1 (b) SUPPORTING INFRASTRUCT_URE ( DOI ) (A) Civil Works 1 Farm Roads (i) Surface water Hills - Major Rehab Ha 4,000 320 Hills - Minor Rehab Ha 7,500 600 Terai - Major Rehab Ha 8,000 640 Terai - Minor Rehab Ha 12,000 960 Sub total Surface water 31,500 2,520 (ii) Groundwater Deep Tubewells - New Ha 4,550 360 Shallow Tubewells - New Ha 2,950 230 Deep Tubewells - Rehab Ha 250 20 Shallow TW - Rehab Ha • 250 20 Sub total Groundwater 8,000 630 (iii) Turnover to Beneficiaries Hill s - Turnover Ha 500 40 Terai - Turnover Ha 1,500 120 Deep TW - Turnover Ha 500 40 Sub total turnover to Beneficiaries 2,500 200 (iv) Participatory Joint Management Ha 2,500 200 Sub total Farm Roads ( 1 ) 44,500 3,550 2 Environmental and River Protection a. Hills Surface water, Major Rehab Ha 5,000 400 Surface water, Minor Rehab Ha 6,500 520 Turnover, Surface Schemes Ha 500 40 Participatory Joint Management Ha 2,500 200 Sub total Hills 14,500 1,160 b. Terai Surface water Major Rehab Ha 8,000 640 Surface water Minor Rehab Ha 11,040 2,880 Turnover Surface Scheme Ha 1,500 120 Sub total Terai 20,540 3,640 c. Groundwater New Deep Tubewells Ha 1,500 120 New Shallow Tubewells Ha 6,000 480 Rehab Deep Tubewells Ha 250 20 Rehab Shalla Tubewells Ha 250 20 Turnover to Benet. - Deep Tubewells Ha 500 40 Sub total Ground Waters 8,500 680 2 Rural Water Supply Amount 7,500.0 - 3 Micro - Hydropower Amount 15,000.0 - 4 jjUJlamgs—Keg1onal & D1stncts } NOS. 12 2 file: Table-2s.xls Amount in NRs'000 1,900 2,520 •
1,975
11,100 1,250 1,625
3,625 2,000 1,320
3,695
1,500
Sheet 3 of 13 TABLE 2
1,320 3,465
4,890
1,595
-
1,045
1,500 1,500 - COMPONENT 1. INFRASTRUCTURE DEVELOPMENT (DOI) PARTICULARS UNIT (c) Sunsari Morang Irrigation Ill Project (A) (i) Land Acquisition Ha. (II) Econmic Rehabilitation Material for PAF PAFs (B) Civil Works Preparatory Works Lump Sum Restoration of CMG Lump Sum ID Systems - Secondary Canal Lump Sum ID Systems - Sub Secondary Canal Lump Sum ID Systems - Tertiary Canal Lump Sum ID Systems - Watercourses Public Lump Sum ID Systems - Watercourses Farmers Lump Sum ID Systems - Secondary Drains Lump Sum ID Systems - Sub Secondary Drains Lump Sum ID Systems - Tertiary Drains Lump Sum ID Systems - Collector Drains Lump Sum Buildings Lump Sum On Farm Water Management. Lump Sum Koshi Flood Embankment Km (C) Vehicles and Spares Vehicles & Motorcycles No. Bicycles no. Spares lump sum (D) Technical Assistance Engineering & Institutional Lump Sum PBME Survey Lump Sum (E) Training Inst. Dev & Water Mgmt. Training Lump Sum file: table-3s.xls TARGET QUANTITY
11,760.00 162,000.00 4,500.00 12,170.00
0.50
1.50 9.0 Lump sum in NRs'000 YEAR 3 4 112 _ 103 Sheel4 of 13 TABLE 3
"''"'® ;,,,,vc:;."W",Hss '";"J,'¾"<.V,'1:-~ .no,,.s<.<:,~s;;~s;;; ;s; ,'!is~. ,ifti..,o '&,'§\:;,,i--&.>;,s,,.""""" , \-1.~"'\'«k.<:>.: " -, 1.50 2 14.0 6.0 • COMPONENT 2. INSTITUTIONAL STRENGTHENING PARTICULARS A DEPARTMENT OF IRRIGATION (i) Technical Assistance (a) Consultants Services - International Senior Irrigation Engineer /Team Leader Resource Economist/ Unallocated Sub Total Consultants Services - International (b) Consultants Services - National NEPAL IRRIGATION SECTOR PROJECT PROJECT IMPLEMENTATION SCHEDULE UNIT TARGET QUANTITY 1 Mm 40 8 Mm 20 4 Mm 60 12 irrigation Development Specialist/ Deputy Team Leader Mm 48 8 Irrigation Design/ Construction Engineer •3 Mm 90 18 Agriculturist •3 Mm 96 20 Training Management SpecialisUSociologist Mm 32 7 Agri. EconomisU M&E Specialist Mm 15 3 EnvironmenU Geotech Engineer Mm 19 4 MIS Specialist Mm 13 4 Groundwater electro. mech. Engineer Mm 10 2 Unallocated Mm 10 2 Lump sum in NRs' 000. Sheet 5 of 13 TABLE4
Supporting Staff for TA Team Provisional Sum 5,400.00 fw$f@t,~i%~%5&}:f(i$jg/$~~:iJid?4~:ffeltTu,;:~P,Yf&fM'4YJ&tt.iW:1tJwA:~"t@t:i%1'YW't'£:#'~~a%f~J#4f!*M'~«#~ Sub Total Consultants Services - National Mm 333 6B 70 6B 6B 59 (c) Subsidy and O & M Studies Provisional Sum 26,000.00 [%//f,bftk , i&§fW»Atm-~ ~w~ (d) Equipment and Materials 1. Survey Equipment Set 20 4 8 6 2 - 2. Office Equipment for TA Suppot Set 4 1 1 1 1 - 3. Office Equipment Set 30 6 12 8 4 - 4. TA Office Space Lump Sum 4,501 ef.'0'i<~tY<Al4Jt,.5Jp,<,,;p;,;J;;',t,%,,i);i{+V;~»//:; .m " ,k$JJ,.i,&:;g;;ff - (e) Vehicles & Transport Equipment 1. Four Whell Drives No. 7 7 - - - - 2. Vehicle O & M No. 35 7 7 7 7 7 file table-4s.xls COMPONENT:- 2. INSTITUTIONAL STRENGTHENING PARTICULARS UNIT ( ii Training ( DOI ) (a) Training Subproject Level Lump Sum ASC Level NISP Workshops Lump Sum District and Regional Level Lump Sum Project Level Lump Sum Centre Level Lump Sum Foreign Trg. & Study Tours for DOI Staff Lump Sum (b) Machinery, Equipment and Vehicles Audio Visual Equipment Lump Sum Furniture and Consumables Lump Sum Vehicles Nos. Motorcycles Nos. Office Equipment Set file. lable-5s.xls
i5J,£1il,J9"3",a,,//!IW,·~.&,$,W-- 3 2 3 2 2 2 Lump sum in NRs' 000 YEAR 3 4 ATTACHMENT 9 Sheet 6 of 13 TABLE 5
COMPONENT:- 2. INSTITUTIONAL STRENGTHENING PARTICULARS ( iii Ground Water Monitoring (a) Civil Works Groundwater Exploration Well Inventory Well Monitoring Rehb. Exist. Invest. Shallow TWs Rehb. Exist. Invest. Deep TWs Invest. Shallow TWs in cluster area Invest. Deep TWs in cluster area (b) Equipment and Materials Geohydro, survey/well observ, Equip. Report prep. and Dissem. (c) Training Well observer, Computer, software RECURRENT COSTS (a) Incremental Staff Cost (b) Mechinery O & M and Overheads file: table-6s.xls UNIT Districts Districts No. No. No. No. Lump Sum Lump Sum Lump Sum Lump Sum Lump Sum TARGET QUANTITY 8.
Lump sum in NRs'000 Sheet 7 of 13 TABLE 6
i(,f/47$:,52%#¥.A;'Y~i("Jlf&@p,#fr,,.,ft,!ffffe#/$%%ff'd1}Yf~,f'p"4'AfX~l,t-~~£,;!$j,%jt%;J,%.;ft'.ffWA":s\(MfJ¾?,W~f1;J,&:t&·~ fY/::fJtX }i'W///-,MJ,A~!dtf~~·w,,m,4Wf'~P///-,,:z8.7J///if; ' ~ M ~ , p:r-4ffe%:''ffe COMPONENT:- 2. INSTITUTIONAL STRENGTHENING PARTICULARS UNIT TARGET QUANTITY 1 ( iv ) On - Farm Water Management ( DOI ) (a Consultant Services International Consultants Manmonth 12 3 National Consultants Manmonth 84 24 (b Staff and Farmer Training Regional and Districts Workshops Courses 60 12 . Staff Training Courses 30 6 Farmer Trainings Courses 486 60 (c On - Farm Works and Supplies ha. 6,000 1,200 (d Transport and other Equipment Four Whell Drive No. 1 1 Motorcycles No. 20 10 Specialized Equipments No. 20 10 RECURRENT COSTS (a Incremental Operation Cost 1 Transport and Office Facilities Maintenance Lump Sum 6,400 1,280 2 General Staff Support Overseers ( DOI ) Manmonth 600 120 Junior Technicians ( DOI ) Manmonth 600 120 Field Assistants, Masons Manmonth 1,800 360 3 TA Staff Support Water Management Specialist(s) Manmonth 60 12 Secretary Manmonth 60 12 Driver Manmonth 60 12 FILE: TABLE-7S.XLS Lump sum in NRs'000 Sheet 8 of 13 TABLE 7
COMPONENT:- 2. INSTITUTIONAL STRENGTHENING PARTICULARS ( v ) MIS Support (a) Office equipments materials (b) Training RECURRENT COSTS (a) Incremental Overheads 1 Software 2 Logistic file: table-8s.xls UNIT Lump Sum Lump Sum Lump Sum Lump Sum
1 2 Lump sum in NRs'000 YEAR 3 4 ATTACHMENT 9 Sheet 9 of 13 TABLE 8
NEPAL IRRIGATION SECTOR PROJECT PROJECT IMPLEMENTATION SCHEDULE COMPONENT:- 2. INSTITUTIONAL STRENGTHENING PARTICULARS UNIT TARGET QUANTITY 1 2 B. PRIVATE SECTOR STRENGTHENING. RECURRENT COSTS (a) Incremental Salaries and Overheads Service Fees for Farm Organizers No. 451 45 NGO/Local Youth Clubs etc Overheads No. 339 34 Per Diem No. 383 45 Stationery No. 451 45
ATTACHMENT 9 Sheet 10 of 13 TABLE 9
-
COMPONENT:- 2. INSTITUTIONAL STRENGTHENING C DEPARTMENT OF HYDROLOGY & METEOROLOGY (a) Equip., Vehicles and Materials (b) Civil Works for Hydromet Stations (c) Consultancy Services and Studies Assess. of Water Resources Potential (d) Overseas Training and Study Tours RECURRENT COSTS (a) Incremental Staff (b) Equipment & Works O&M/a FILE: TABLE10S.XLS Lump Sum 38,166.00 Lump Sum 78,240.00 Lump Sum 133,830.00 Lump Sum 8,160.00 Lump Sum 9,585.00 Lump Sum 6,781.00 Lump sum in NRs'000 YEAR 3 4 ATTACHMENT 9 Sheet 11 of 13 TABLE 10
wi4i@fii;,;,,,i;b¼fd#¼&ffi%A%4¢¥4'1ffl COMPONENT:- 2. INSTITUTIONAL STRENGTHENING Lump Sum TARGET QUANTITY 8,900.00
Lump Sum in NRs' 000 YEAR 2 3 4 ATTACHMENT 9 Sheet 12 of 13 TABLE 11
JT/JTA Trg. -Water Util. & Mgmt. ~,,W.JP_MY$_..• .,_,~,1,._,,~.,-/l,9,._,~ Lump Sum 2,850.00 Cropping Intensity Demonstration 1 1.-•l'r==-=.,@liiif.,_..b',,, •=#ff,_;w,af.,"",MJffe-•A'"'"'i,,t Lump Sum 31,680.00 Water Users' Workshops wr-i';i•id~•l'iilf 1 #aYlift¥il/••'fa%{/0a!'a••~1 -•~i'i•~,wi'i"'!"ll6r-1,,m:1 Lump Sum 1,660.00 Water Users' Inter-District Visits ~)1ft'J,i'WI/ ~~••d~ffl,..,~f . . «'lr—d,- Bif,9"'1d6r-- Lump Sum 15,000.00 JT/JTA observation Tour to India r~-,,.,.Ji,.,~.-1rf1•ff?'.?~ Lump Sum 5,400.00 Agric. Officers' Study Tours to SAARC Countries 1 •4P-aJlfff£11rir•r-ra;J;Jr_,7rlliifi'il'iilfl""zi'W••:&~ ••Jtr-««a, Lump Sum 5,000.00 Support to DOI in PBME & Baseline Survey ra,~1~,-~w~••11,m:1~ Lump Sum 900.00 (b) Planting Materials and Equipments Seed Production Program in Irrigated Areas Extension Equipments Seed Storage Facilities (c) Vehicles and Equipment Four Wheel Drive Bicycles Motorcycles for Terai DAO & RATCs Photocopier, Computer, Fax RECURRENT COSTS (a) Vehicles O&M (b) Incremental Staff and Overhead file. table11s.xls Lump Sum Lump Sum No No No No No Lump Sum Lump Sum 5,400.00 2,330.00
4,720.00 1,580.00 ff$,4p 1//. ?,w///4%! ,,,_,,z:&%1,-,m:J$1-a•1~•~-'PYI" ,· COMPONENT:- 3. WATER RESOURCES STRATEGY FORMULATION PARTICULARS UNIT TARGET QUANTITY 1 2 (a) Studies GIS Pilot and Basin Plan Model Lump Sum 5,000.0 Water Resources Strategy Lump Sum 39,000.0 file: table12s.xls Lump sum in NRs'000 YEAR 3 4 ATTACHMENT 9 Sheet 13 of 13 TABLE 12
- - S.N. Description 1 Site selection for hydrometric stations (254 stations) 2 Assessment of Irrigation potential including establishement of200 staff- gauge stations in FMIS INSTITUTIONAL STRENGTHENING - DHM (Hydrological Studies) IMPLEMENTATION SCHEDULE First Phase 1st Year 2nd Year 3rd Year 3 Rehabilitation of stream gauging 1--1-~......-i stations 4 Establishment ofstream gauging stations 5 Establishment of 160 precipitation stations (including site selection) 6 Rehabilitation of 6 agro- • meteorological stations 7 Purchase ofsediment samplers & laboratory equipment 8 Establishment of Crest stage Second Phase 4th Year gauges 1--1-~......-i • • 9 Purchase of current meters ATTACHMENT 9 Annex A 5th yeat 10· Purchase of computers and _ 1--,1--+--....,--1·----11--1---,1--,1,--..---i--~--1----1,,----i.----1----11, accessories 11 Maintenance Work ............... ········································································· ················································ ················································ ................................................................................................ ················································
Data management 12. l Collection and processing 12.2 Dissemination ········································································· ................................................................................................................................................................................................................................................ Training a) Observer b) Junior Technician c) Senior Technician ..,__.., - d) Study Tours INSTITUTIONAL STRENGTHENING - DHM (Hydrological Studies & Basin Planning) IMPLEMENTATION PLAN ATTACHMENT 9 Annex- The project will be implemented in 2 phases. The 1st phase will be of 3 years duration. This period will cover the rehabilitation and establishment of stations, procurement of equipment and observation and collection of hydrometric and rainfall data. The 2nd phase will cover the continuation of data collection including processing, analyzing, interpretation and dissemination of data. The implementation plan is presented below: S.N
Description Civil Works 1.1 Site selection for 254 hydrometric stations 1.2 Rehabilitation of38 stream gauging stations 1.3 Establishment of 54 stream gauging stations 1.4 Establishment of 160 precipitation stations (including site selection) 1.5 Establishment of 30 recording raingauge (including site selection) 1.6 Rehabilitation of 6 agro- First Phase Second Phase 1st Year (1998) 2nd Year (1999) 3rd Year (2000) 4th Year (2001) 5th year (2002) JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ -· meteorological stations . 1.7 Establishment of92 crest stage gauges 1.8 Eestablishement of 200 staff- gauge stations in FMIS S.N First Phase Second Phase Description 1st Year (1998) 2nd Year (1999) 3rd Year (2000) 4th Year (2001) 5th year (2002) JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ JAS OND JFM AMJ 2 Equipment, vehicles and materials 2.1 Purchase ofhydrological and meteorological equipment & laboratoy quipment. 2.2 Purchase ofcomputers and accessories -- ·······················--················································· •••••••••••• ............ •••••••••••• ............ ............ ............ •••••••••••• ............ ............ ............ ............ ............ 000000,oouo ............ •••••••oo••• •••••••••••• ............ •••••••••••• ............ ........... 2.3 Purchase of surveying equipment •••••••••••• ............ •••••••••••• ............ ............ •••••••••••• ............ •••••••••••• ............ ............ ............ ............ ............ •••••••••••• ............ •••••••••••· ............ ............ ............ .....u.... 2.4 Purchase ofvehicles 3 Consultancy Services 3.1 Primary data processing 3.2 Establishment ofdatabase, specific data analysis, processing and interpretation 3.3 Flow measurement 3.4 Slope Area measurement 3.5 Basinwise assessment of water availability 4 Operation and maintenance Work 5 Training a) Observer --- --- --- b) Junior Technician 1- ► -· c) Senior Technician --- -- d) Study Tours 1 - -· ATTACHMEI\IT 10 BASE-COST DISBURSEMENT SCHEDULES NEPAL IRRIGATION SECTOR PROJECT PROJECT COMPONENTS ANNUAL DISBURSEMENT ESTIMATE COMPONENT UNIT TARGET TOTAL AMOUNTS COST SHARING QUANTITY Unit Rate Total Farmers DOI 1 INFRASTRUCTURE DEVELOPMENT ( DOI ) (a) IRRIGATION INFRASTRUCTURE INVESTMENT COST (A) Clvll Works 1 Irrigation works (i) Surface water Hills - Major Rehab Ha. 4,000 70.0 280,000.0 33,600.0 246,400.0 Hills - Minor Rehab Ha. 7,500 30.0 225,000.0 27,000.0 198,000.0 Terai - Major Rehab Ha. 8,000 45.0 360,000.0 57,600.0 302,400.0 Terai - Minor Rehab Ha. 12,000 25.0 300,000.0 48,000.0 252,000.0 Sub total Surface water 31,500 1,165,000.0 166,200.0 998,800.0 (ii) Groundwater Deep Tubewells - New Ha. 4,550 70.0 318,500.0 31,850.0 286,650.0 Shallow Tubewells - New Ha. 2,950 50.0 147,500.0 29,500.0 118,000.0 Deep Tubewells - Rehab Ha. 250 30.0 7,500.0 1,250.0 6,250.0 Shallow tubewell - Rehab Ha. 250 10.0 2,500.0 375.0 2,125.0 Sub total Groundwater. 8,000 476,000.0 62,975.0 413,025.0 (iii) Turnover to Beneficiaries Surface Water - Hills Ha. 500 30.0 15,000.0 750.0 14,250.0 Surface Water - Terai Ha. 1,500 10.0 15,000.0 750.0 14,250.0 Groundwater ( Deep Tubewells ) Ha. 500 30.0 15,000.0 750.0 14,250.0 Sub total turnover to Beneficiaries 45,000.0 2,250.0 42,750.0 (iv) Participatory Joint Management Ha. 2,500 10.0 25,000.0 1,750.0 23,250.0 Sub total Irrigation Works 1,711,000 233,175 1,477,825 Sub total Civil Works 1,711,000 233,175 1,477,825 (B) Consultancy Services 1 Feas, Studies & Investigation of FMIS Amount 25,665.0 - 25,665.0 Sub total Consultancy Services 25,665.0 0.0 25,665.0 Cost in NRs'00O Sheet 1 of 13 TABLE 1
COMPONENT UNIT TARGET TOTAL AMOUNTS COST SHARING QUANTITY Unit Rate Total Farmers DOI (C) Vehicles and Transport Equipment 1 Four Wheel Drive District Irrigation Offices 1 each No. 25 1,250.0 31,250.0 31,250.0 Groundwater Field Offices 1 each No. 5 1,250.0 6,250.0 6,250.0 Regional Irrigation Directorates. 2 each No. 6 1,250.0 7,500.0 7,500.0 Headquarters No. 3 1,250.0 3,750.0 3,750.0 Sub total Four Wheel Drive 39 48,750.0 0.0 48,750.0 2 Motorcycles District Irrigation Office 2 each No. 72 75.0 5,400.0 5,400.0 Groundwater Field Office 2 each No. 10 75.0 750.0 750.0 Headquarters No. 4 75.0 300.0 300.0 Sub total Motorcycle 86 6,450.0 0.0 6,450.0 3 Bicycles No. 8!) 3.5 280.0 280.0 4 Horses for Hill Districts No. 20 45.0 900.0 900.0 Sub total Vehicles and Transport Equipment 56,380.0 56,380.0 Sub total Investment Cost 1,793,045.0 233,175.0 1,559,870.0 RECURRENT COSTS A. O&M of Irrigation Works and Bldgs./a Lump Sum 50,000.0 50,000.0 B. lncrem. Staff cost for lmplem. NISP/b Lump Sum 46,000.0 46,000.0 C. Vehicles Operation and Maintenance D1O Vehicles Ol&M No. 86 150.0 12,900.0 12,900.0 GFO Vehicles O&M No. 14 150.0 2,100.0 2,100.0 RID Vehicles O&M No. 24 150.0 3,600.0 3,600.0 DIO Motorcycles O&M No. 150 20.0 3,000.0 3,000.0 GFO Motorcycles O&M No. 28 20.0 560.0 560.0 Horses Maintenance No. 70 4.5 315.0 • 315.0 Sub total of Recurrent costs 118,475.0 0.0 118,475.0 Subtotal of Irrigation Infrastructure 1,911,520.0 233,175.0 1,678,345.0 . j Sheet 2 of 13 Cost in NRs'000 TABLE 1 (Contd.) 11,2J;0.0 10,000.0 1,250.0 QUANTIT Unit Rate Total—b) SUPPORTING INFRASTRUCTURE—DOI ) (A) Civil Works 1 Farm Roads (i) Surface water Hills - Major Rehab Ha. 4,000.0 2.00 8,000.0 Hills - Minor Rehab Ha. 7,500.0 0.75 5,625.0 Terai - Major Rehab Ha. 8,000.0 1.00 8,000.0 Terai - Minor Rehab Ha. 12,000.0 0.50 6,000.0 Sub total Surface water 27,62b.O (ii) Groundwater Deep Tubewells - New Ha. 4,550.0 1.40 6,370.0 Shallow Tubewells -· New Ha. 2,950.0 0.10 295.0 Deep Tubewells - Rehab Ha. 250.0 0.60 150.0 Shallow TW - Rehab Ha. 250.0 0.30 75.0 Sub total Groundwater 6,1111u.o (iii) Turnover to Beneficiaries Hill s - Turnover Ha. 500.0 0.75 375.0 Terai - Turnover Ha. 1,500.0 0.20 300.0 Deep TW - Turnover Ha. 500.0 0.60 300.0 Sub total turnover to Beneficiaries 11I0.0—iv) Participatory Joint Management Ha. 2,500.0 0.30 750.0 Sub total Farm Roads ( 1 ) .,o,.r:qu.o 2 Environmental and River Protection a. Hills Surface water, Major Rehab Ha. 4,000.0 3.15 12,600.0 Surface water, Minor Rehab Ha. 7,500.0 1.35 10,125.0 Turnover, Surface Schemes Ha. 500.0 1.35 675.0 Participatory Joint Management Ha. 2,500.0 0.45 1,125.0 Sub total Hills (a) 14,bUU.U ~Cl2CI.O b. Terai Surface water Major Rehab Ha. 8,000.0 1.35 10,800.0 Surface water Minor Rehab Ha. 12,000.0 0.75 9,000.0 Turnover Surface Scheme Ha. 500.0 0.90 450.0 Sub total Teral 20,:iuu.o 20,2:iu.o c. GroundWater New Deep Tubewells Ha. 4,550.0 2.10 9,555.0 New Shallow Tubewells Ha. 2,950.0 1.50 4,425.0 Rehab DeepTubewells Ha. 250.0 0.90 225.0 Rehab Shalla Tubewells Ha. 250.0 0.30 75.0 Turnover to Benef. - Deep Tubewells Ha. 500.0 0.90 450.0 Sub total Ground Waters 8,11uu.o 1<1;1;,u,U Sub Total Envlornmental and River protect1o·n 43,:iuu.o 59,:,u:,,O 3 Rural Water Supply Lump Sum 7,500.0 4 Micro - Hydropower Lump Sum 15,000.0 5 Buildings ( Regional & Districts ) Nos. 12 2,600.00 31,200.0 Sub Total Clvil Works 149,445,0 (B) Workshop stabllshment, Equip, Tools, Spares and Dredger operation Lump Sum 50,000.0 Total of Supporting Infrastructure 199,445.0 File: table-2c.xls COST SHARING Farmers· DOI 1 2 4,000.0 4,000.0 640.0 1,920.0 2,812.5 2,812.5 450.0 1,350.0 4,000.0 4,000.0 640.0 1,920.0 3,000.0 3,000.0 480.0 1,440.0 13,812.5 13,1112.CI 2,21u.u 6,o.,u.u 3,185.0 3,185.0 504.0 1,512.0 147.5 147.5 24.0 72.0 75.0 75.0 12.0 36.0 37.5 37.5 6.0 18.0 3,44b.0 3,<t<t;:,.U ;:J<tO.U 1,o,>o.o 187.5 187.5 30.0 90.0 150.0 150.0 24.0 72.0 150.0 150.0 24.0 72.0 4117.CI 487.:, ,o.u , .....u . 375.0 375.0 60.0 180.0 18,-1.r:u.O 18, '-'U.U .r:,o.,...u o,uo,.U 6,300.0 6,300.0 1,008.0 3,024.0 5,062.5 5,062.5 810.0 2,430.0 337.5 337.5 54.0 162.0 562.5 562.5 90.0 270.0 '[2;262:S 12,;;:o;;:.5 11110;;:.u 5,oou.U 5,400.0 5,400.0 864.0 2,592.0 4,500.0 4,500.0 720.0 . 2,160.0 225.0 225.0 36.0 108.0 10,125.0 ,u, '"'"·u 110,u.u 4,oou.u 4,777.5 4,777.5 756.0 2,268.0 2,212.5 2,212.5 360.0 1,080.0 112.5 112.5 18.0 54.0 37.5 37,5 6.0 18.0 225.0 •225.0 36.0 108.0 7,;u;11;u 71,>1>:,.U 1,111>.0 3,:,;;:o.O 29,752,5 2111 I0,.b 41 I;:,o,U 14,214.U Cost in NRs' 000 ATTACHMENT 10 Sheet 3 of 13 810'IU.0 6,IIUt>.2 3,u,11I.8 ., '"'·u , ...,.11 1U7.2 240.0 187.5 82.5 1110I0.U 11,u.>o.o 4,uo1.2 6,<tou.U 5,ut>;;:.5 2,227.5 3,045.0 2,520.0 966.0 1,440.0 • 1,125.0 420.0 72.0 56.2 24.8 24.0 18.8 8.2 144.0 112.5 49.5 4,f2b.0 3,0.,,,5 1,<too.5 Hl,u:,,>.O 15,u.:t>.2 6,3113.8 QUANTITY Unit Rate Total (c) Sunsari"Morang Irrigation Ill Project INVESTMENT COSTS (A) (i) Land Acquisition Ha. 315.0 203.00 63,945.0 (ii) Economic Rehabilitation Material for PAF No. 123.0 211.00 25,953.0 Sub total - (A) 89,898.0 (B) Civil Works Preparatory Works Percent 100.0 585.80 58,580.0 Restoration of CMC Km. 53.0 2,912.07 154,340.0 ID Systems - Secondary Canal Km. 50.0 3,874.80 193,740.0 ID Systems - Sub Secondary Canal Km. 34.0 4,691.32 159,505.0 ID Systems - Tertiary Canal Km. 166.0 2,592.17 430,300.0 ID Systems - Watercourses Public Km. 634.0 414.35 262,698.0 ID Systems - Watercourses Farmers Km. 634.0 139.99 88,751.0 ID Systems - Secondary Drains Km. 109.0 580.73 63,300.0 ID Systems - Sub Secondary Drains Km. 4.0 7,600.00 30,400.0 ID Systems - Tertiary Drains Km. 112.0 444.64 49,800.0 ID Systems - Collector Drains Km. 344.0 105.79 36,390.0 Buildings Sq. M. 1,000.0 5.00 5,000.0 On Farm Water Management. Lump Sum 21,740.0 Koshi Flood Embankment Km 5.5 14,545.45 80,000.0 Sub Total Civil Works ( B ) 1,634,544.0 (C) Vehicles and Spares Vehicles & Motorcycles No. 29.0 193.10 5,600.0 Bicycles No. 100 3.00 300.0 •Spares Lump Sum 11,760.0 Sub Total Vehicles & Spares ( C ) 17,660.0 (D) Technical Assistance Engineering & Institutional Lump Sum 162,000.0 PBME Survey Lump Sum 4,500.0 Sub Total 'Technical Assistance (D) 166,500.0 (E) Training Inst. Dev & Water Mgmt. Training Lurnp Sum 12,170.0 Total Investment Costs 1,920,772.0 RECURRENT COSTS (A) General Administration Lump Sum 24,100.0 Total Sunsari Morang Irrigation Ill Project 1,944,872.0 file: lable-3c.xls Cost in NRs'OOO Sheet 4 of 13 QUANTITY Unit Rate Total 2 INSTITUTIONAL STRENGTHENING A DEPARTMENT OF IRRIGATION (i) Technical Assistance INVESTMENT COSTS (a) Consultants Services - International Senior Irrigation Engineer rream Leader Mm 40 1,150 46,000.00 Resource Economist/ Unallocated Mm 20 1,120 22,400.00 Sub Total Consultants Services - International 68,400.00 (b) Consultants Services - National Institutional Development Specialist/ Deputy Team Leader Mm 48 125 6,000.00 Irrigation Design/ Construction Engineer •3 Mm 90 112 10,080.00 Agriculturist •3 Mm 96 93.75 9,000.00 SociologisVTraining Management Specialist Mm 32 112 3,584.00 Agri. EconomisV M&E Specialist Mm 15 93.75 1,406.25 EnvironmenV Geotech Engineer Mm 19 93.75 1,781.25 MIS Specialist Mm 13 93.75 1,218.80 Groundwater electro. mech. Engineer Mm 10 93.75 937.50 Unallocated Mm 10 93.75 937.50 Supporting Staff for TA Team Provisional Sum - - 5,400.00 Sub Total Consultants Services - National 40,345.30 (c) Subsidy and O & M Studies Provisional Sum 26,000.00 (d) Equipment and Materials 1. Survey Equipment Set 20 140 2,800.00 2. Office Equipment for TA Support Set 4 800 3,200.00 3. Office Equipment set 30 450 13,500.00 4. TA Office Space 4,501.00 Sub Total Equipment and Materials 24,001.00 (e) Vehicles & Transport Equipment 1. Four Wheel Drives No. 7 1,250 8,750.00 2. Vehicle O & M No. 35 150 5,250.00 Sub Total Vehicles and Transport Equipment 14,000.00 Total Investment Costs 172,746.30 RECURRENT COSTS (a) Incremental Salaries and Overheads Monitoring and Evaluation Manpower MIS Lump Sum 3,914.00 Consumable Lump Sum 4,500.00 Sub total Recurrent Costs 8,414.00 Total of Technical Assistance 181,160.30 Cost in NRs' 000 ATTACHMENT 10 Sheet 5 of 13 QUANTITY Unit Rate Total 1 ( ii) Training ( DOI ) INVESTMENT COSTS (a) Training Subproject Level Lump Sum 66,150.00 7,350.00 ASC Level NISP Workshops Lump Sum 6,300.00 2,100.00 District and Regional Level Lump Sum 70,875.00 14,175.00 Project Level Lump Sum 4,800.00 600.00 Centre Level Lump Sum 6,775.00 1,355.00 Foreign Trg. & Study Tours for DOI Staff Lump Sum 16,800.00 800.00 Sub Total Training 171,700.00 26,380.00 (b) Machinery, Equipment and Vehicles Audio Visual Equipment Lump Sum 1,600.00 - Furniture and Consumables Lump Sum 3,400.00 - Office Equipment Set 4 450.0 1,800.00 900.00 Vehicles Nos. 5 1,250.0 6,250.00 3,750.00 Motorcycles Nos. 5 75.0 375.00 225.00 Sub Total Machinery, Equipment & Vehicles 13,425.00 4,875.00 Total of Training (DOI) 185,125.00 31,255.00 Cost in NRs' 000 Sheet 6 of13 QUANTITY Unit Rate Total iii Ground Water Monitoring INVESTMENT COSTS (a Civil Works Groundwater Exploration Well Inventory Districts 8 400.00 3,200.00 Well Monitoring Districts 8 150.00 1,200.00 Rehb. Exist. Invest. Shallow TWs No. 50 30.00 1,500.00 Rehb. Exist. Invest. Deep TWs No. 20 200.00 4,000.00 Invest. Shallow TWs in cluster area No. 100 100.00 10,000.00 Invest. Deep TWs in cluster area No. 14 250.00 3,500.00 Sub Total Civil Works Groundwater Exploration 23,400.00 (b Equipment and Materials Geohydro, survey/well observ, Equip. Lump Sum 8,671.00 Report prep. and Dissem. 1,200.00 Sub Total Equipment & materials 9,871.00 (c) Training Well observer, Computer, software Lump Sum 700.00 Total Investment Costs 33,971.00 RECURRENT COSTS (a Incremental Staff Cost Lump Sum 4,448.00 (b Mechinery O & M and Overheads Lump Sum 1,000.00 Total Recurrent Costs 5,448.00 Total Groundwater Monitoring 39,419.00 file: table-6c.xls Cost in NRs' 000 Sheet 7 of 13 l COMPONENT UNIT TARGET TOTAL AMOUNTS QUANTITY Unit Rate Total ( Iv ) On - Farm Water Management ( DOI ) INVESTMENT COSTS (a) Consultant Services International Consultants Man month 12 700 8,400 National Consultants • Man month 84 90 • 7,560 Sub total Consultants Services 96 15,960 (b) Staff and Farmer Training Regional and Districts Workshop Courses 60 40 2,400 Staff Training Courses 30 160 4,800 Farmer Training Courses 486 15 7,290 Sub total Staff and Farmer Training 576 14,490 (c) On - Farm Works and Supplies Ha. 6,000 6 34,800 (d) Transport and other Equipment Four Wheel Drive No. 1 1,250 1;250 Motorcycles No. 20 200 4,000 Specialized Equipment No. 20 50 1,000 Sub total Transport and other Equipment 41 6,250 Total Investment Costs 71,500 RECURRENT COSTS (a) Incremental Operation Cost 1 Transport and Office Facilities Maintenance Lump Sum 6,400 2 General Staff Support Overseer ( DOI ) Man month 600 5 3,000 Junior Technician ( DOI ) Man month 600 5 3,000 Field Assistants, Masons Man month 1,800 3 5,400 3 TA Staff Support Water Management Specialist Man month 60 20 1,200 Secretary Man month 60 5 300 Driver Man month 60 5 300 Sub total of Incremental Operation Cost 19,600 Total of Farm Water Management 91,100 file; Table-7c.xls Cost in NRs' 000 1,280 1;280 1,280 Sheet 8 of 13 QUANTITY Unit Rate Total ( V) MIS Support INVESTMENT COSTS (a) Office equipments materials Lumpsum 2,702 (b) Training Lumpsum 5,000 Sub total Investment Costs 7,702 RECURRENT COSTS (a) Incremental Overheads 1 Software Lump Sum 1,556 2 Logistic Lump Sum 784 Sub total of Recurrent Costs 2,340 Total of MIS Support 10,042 file: table-Be.xis Cost in NRs' 000 Sheet 9 of 13 (a) Incremental Salaries and Overheads Service Fees for Farm Organizers NGO/Local Youth Clubs etc Overheads Per Diem Stationery Total of Private Sector Strengthening FILE: TABLE-SC.XLS NEPAL IRRIGATION SECTOR PROJECT INSTITUTIONAL STRENGTHENING PROJECT COMPONENTS ANNUAL DISBURSEMENT ESTIMATE UNIT TARGET TOTAL AMOUNTS QUANTITY Unit Rate Total 1 No. 451 57.60 25,977.60 2,592.00 No. 339 19.08 6,468.10 648.70 Man Days 383 18.00 6,894.00 810.00 No. 451 0.54 243.50 24.30 1,624 39,583.20 4,075.00 Cost in NRs' 000 Sheet 10 of 13 QUANTITY Unit Rate Total ( V) MIS Support INVESTMENT COSTS (a) Office equipments materials Lumpsum 2,702 (b) Training Lumpsum 5,000 Sub total Investment Costs 7,702 RECURRENT COSTS (a) Incremental Overheads 1 Software Lump Sum 1,556 2 Logistic Lump sum 784 Sub total of Recurrent Costs 2,340 Total of MIS Support 10,042 file: table-Be.xis Cost in NRs' 000 Sheet 9 of 13 C DEPARTMENT OF HYDROLOGY &MATEOROLOGY INVESTMENT COSTS • (a) Equip., Vehicles and Materials (b) Civil Works for Mydromet Stations (c) Consultancy Services and Studies Assess. of Water Resources Potential (d) Overseas Training and Study Tours Sub total Investment Costs RECURRENT COSTS (a) Incremental Staff (b) Equipment & Works O&M/a Sub total Investment Costs Total of Hydrology &Meteorology file: table10c.xls NEPAL IRRIGATION SECTOR PROJECT INSTITUTIONAL STRENGTHENING Department of Hydrology and Meteorology UNIT TARGET TOTAL AMOUNTS QUANTITY Unit Rate Total Lump Sum 38,166.00 Lump Sum 78,240.00 Lump Sum 133,830.00 Lump Sum 8,160.00 258,396.00 Lump Sum 9,585.00 Lump Sum 6,781.00 16,366.00 274,762.00 Cost in NRs'000 Sheet 11 of 13 (a) Training Farmers Trg. - Water Util. & Mgmt JT/JTA Trg. -Water Util. & Mgmt. Cropping Intensity Demonst Water Users' Workshops Water Users' Inter-District Visits JT/JTA observation Tour to India Agric. Officers' Study Tours to SAARC Countries Support to DOI in Project Benefit Monitoring & Evaluation Sub total Training (b) Planting Materials and Equipments Seed Prod. Program in Irrigation Areas Extension Equipments . Seed Storage Facilities Sub total Planting Materials and Equipment (c) Vehicles and Equipment Four Wheel Drive Bicycles Motorcycles for Terai (DAO- 16 nos. & RATCs • 1Onos) Photocopier,Computer, Fax Sub total Vehicles and Equipment Total Investment Costs RECURRENT COSTS (a) Vehicles O&M (b) Incremental Staff and Overhead Sub total Recurrent Costs Total of DOA file: table11c.xls NEPAL IRRIGATION SECTOR PROJECT INSTITUTIONAL STRENGTHENING Department of Agriculture UNIT TARGET TOTAL AMOUNTS QUANTITY Unit Rate Total Lump Sum 8,900.00 Lump Sum 2,850.00 Lump Sum 31,680.00 Lump Sum 1,660.00 Lump Sum 15,000.00 Lump Sum 5,400.00 Lump Sum 5,000.00 900.00 71,390.00 Lump Sum 5,400.00 Lump Sum 2,330.00 No. 27.00 150 4,050.00 11,780.00 No. 8 1,250 10,000.00 No. 10 3.75 37.50 No. 26 75.00 1,950.00 No. 3 200 600.00 12,587.50 95,757.50 Lump Sum 4,720.00 Lump Sum 1,580.00 6,300.00 102,057.50 Cost in NRs' 000 Sheet 12 of 13 (a) Studies GISPilot Water Resources Strategy Total of Water Resources Strategy Formulation file: table12c.xls NEPAL IRRIGATION SECTOR PROJECT Water Resources Strategy Formulation ( MOWR ) UNIT TARGET TOTAL AMOUNTS QUANTITY Unit Rate Total Lump Sum 5,000.00 Lump Sum 39,000.00 44,000.00 Cost in NRs' 000
ATTACHMENT 10 Sheet 13 of 13 TABLE12
1,000.00 . 6,000.00 7,000.00 ATTACHMENT 11 CONCISE VERSION OF PROCEDURAL GUIDELINES (PG}, TOGETHER WITH SUB-PROJECT CYCLE STEPS AND FLOWCHART ATTACHMENT 11 NEPAL IRRIGATION SECTOR PROJECT SUB-PROJECT IMPLEMENTATION PROCEDURAL GUIDELINES (Concise Version) GENERAL The Nepal Irrigation Sector Project (NISP) is the first stand alone irrigation sector project. It covers all the lessons learnt from the implementation of the ILC Pilot Project in the three Western Regions of Nepal and incorporates tested and proven process and procedures for implementing an irrigation sector investment program for sustainable operation and maintenance by user groups. The Sub-Project covering main Irrigation Infrastructure Development with or without Supporting Infrastructures would be selected and implemented according to the Principles and Criteria established for NISP. These are to ensure that the Sub-Projects development would enhance agriculture production and productivity; that the support demanded by the users group is beyond their internal capacity, and that the support extended would not create any dependency for future O&M. Implementation quality is to be assured through adoption of all the steps as set out in the detailed Procedural Guideline. Documents, a concise version of which is presented below. Step 1 Step2 Step3 Step4 Information Dissemination: The District Irrigation and Agriculture Offices (DIO, DADO) and their sub-centres (ASC) would be responsible for disseminating information on NISP type of Sub-Projects, principles and procedures for their selection and implementation, to all beneficiaries in those areas having the potential for enhancing irrigated agricultural practices utilizing surface or underground water resources. The Regional Irrigation Directorate (RID) with assistance from the local office of the Department of Hydrology and Meteorology (OHM) would keep and update the sub-basin water resource inventories. At the Central level policy ma~ers, politicians, and the media would be briefed about the program through workshops and meetings. • Application: Farmers Group or existing water users organization in need of assistance to improve or extend their irrigation system or supporting infrastructure would form an Ad-Hoc WUA committee and then -collectively complete an application form. The application to be signed by all beneficiaries before submission through the nearest ASC/SSC to the DIO/GWFO, along with an upfront cash deposit of NRs 50 per ha for surface irrigation or NRs 200 per ha for groundwater Sub-Projects. Initial Screening and Selection Criteria: DIO technicians with the assistance of DADO staff would screen the application, to verify it met the selection criteria for NISP support. The screened list of Sub-Projects would be discussed in DAC and a selection made for proceeding to identification study. The selected list would be communicated to the DOC. Identification Survey: DIO and DADO/ASC staff would form a site visit team to verify the information given on the application form. The WUA a_d hoc committee would liaise with the visiting team and assist in updating the application form if necessary. The visiting team would then prepare an identification study report based on the identification questionnaire filled in when in the field. In case of inviable or illegible Sub-Projects, the upfront cash deposit would be returned at this stage. 1 of 8 Steps Step6 Step7 Steps Classification as Major of Minor Rehabilitation: Based on field data collected to date, the Sub-Project would be classified by the DIO into major or minor rehabilitation, using fixed criteria for hill and terai areas. This would dictate the nature of further studies. Sub-Project Prioritization: The DIO would prioritized each Sub-Project _according to the main components influencing the potential development. This prioritization together with the identification report including major and minor classification would be discussed in the' District Appraisal Committee (DAC) to finalize the prioritization of Sub-Projects for feasibility study. Feasibility Study (Major Rehabilitation): After approval by the RID of the regional feasibility study program according to budgetary provisions, the DIO would undertake the . feasibility study with the support of DADO staff. If the Sub-Project is large or potentially challenging a local consultant could be deployed. The Mobile Irrigation Team (MIT) and RADO staff would extend technical support to the study team as required. The WUA or beneficiary group would be closely involved in the field work and discuss the scope of works and preliminary cost estimates. To ensure uniformity in the feasibility study and its report presentation, the approach detailed in the procedural guidelines would be strictly followed. The report would. include screening of alternatives as well as describing the optimum solution, realistic construction cost and benefit estimation for performing an economic analysis and an environmental assessment of the Sub-Project. IEE/EIA would be carried out according to the guidelines on Environmental Considerations in the detailed PG. Feasibility Study with Detailed Design (Minor Rehabilitation): A similar procedure as for major rehabilitation would be followed, but the feasibility study would include detailed design of the proposed infrastructure works, including appropriate site investigations, drawings and quantity take-off, to enable an accurate co?t estimate to be derived. The WUA would be involved and the cost estimate discussed with the WUA for their approval on cost sharing arrangements. Appraisal and Detailed Design (Major Rehabilitation): The feasibility report would be scrutinized by MIT members, and to include a site verification if felt necessary, before being technically reviewed and endorsed by the Technical Assistance (TA) Team. If found technically feasible and economically viable the Sub-Project would be recommended to DAC and RAAC in turn for their appraisal. If the cost estimate in the feasibility report is more than NRs 10.0 million then the feasibility report would be submitted to the Project Coordination Office for technical review and would get recommendation of PIC, before submission to the DG/DOI for approval to proceed for detailed engineering designs and estimates. After RAAC appraisal or DG/DOI approval of the feasibility study, detailed engineering designs of the proposed infrastructure works would be undertaken by the DIO or local consultant with assistance from the WUA, including their approval on cost sharing arrangements. The detailed design would include site investigations, drawing preparation and quantity take-off, to enable an accurate cost estimate to be derived. The MIT would check the designs before a final technical review and endorsement from the TA Team. Appraisal (Minor Rehabilitation): The feasibility study report along with detailed. designs and cost estimate would be site verified by the MIT and then sent with a recommendation to DAC for their appraisal and onward transmission to the RAAC or RID. 2 of8 Step9 Approval and Tender Document Preparation: If the Sub-Project cost estimate is less than NRs 1.0 M, then RID would approve. If the cost estimate is between NRs 1.0 to 5.0 M, then RAAC would appraise and approve the Sub-Project only after a site verification, if felt necessary, by the MIT. If the cost estimate is between NRs 5.0 and 10.0 M, then RAAC would approve the Sub-Project only after a compulsory site verification and endorsement by the MIT. If the cost estimate is more than NRs 10.0 M, then the RID or DG/DOI would approve according to the authority vested in the financial rules. Also for Sub-Projects costing more than NRs 10.0 M, if after detailed designs the detailed cost estimate was found to exceed the original approved feasibility study cost estimate, then the Sub-Project detailed designs and estimates would be re-submitted to the DG/DOI for approval. The approval information would be communicated to RAD, DADO and DIO who in turn would inform the concerned WUA and the DDC. DIO would then finalize cost sharing arrangements with the WUA and prepare tender documents based on model LCB documents for those works to be undertaken by contract. Step 10Resource Mobilization and Implementation Plan: The DIO would discuss with the WUA the program for Sub-Project rehabilitation and include in their District implementation plan of approved Sub-Projects. These to be submitted to RID who would include in their annual work (budget) program, to be then forwarded to Central DOI for approval by the National Planning Commission. The WUA would be required to participate with DIO in implementation planning. The plan would specify inter-alia individual responsibilities of WUA, DIO, DADO and RID staff during Sub-Project implementation period. At this stage the WUA would be required to deposit balance of upfront cash to make up 0.5% of the investment cost, otherwise no further works would be undertaken by DOI. Step 11 Formalize Farmer Organization and Participation: The WUA constitution and its by-laws would be formalized by the general assembly of users and the WUA registered with the District Water Resources Committee under Water Resqurces Regulation (1993). Technical support and training of the WUA at this time would be provided by the MIT, D1O & DADO staff and NGOs if required. A Memorandum of Agreement (MOA) between D1O & WUA detailing the cost sharing arrangement and work breakdown agreement of all the construction works would be finalized and signed in front of the General Assembly of users group. After this and before construction Baseline Survey would be carried out by DIO and DADO combined staffs. Also Social Assessment would be conducted by the help of NGO or AO under the guidance of the MIT sociologist according to the guidelines of Social Assessment. Step 12Construction: Tenders would be floated for the DIO parts, and contract(s) awarded as per HMGN financial rules keeping transparency with the WUA. A construction committee would be formed by the WUA to supervise and monitor the quality of works being carried out both by DIO contract as well as by WUA according to the work-breakdown agreement. After confirmation that WUA have completed 15% of their work contribution according to the MOA, then DIO would proceed with the Sub-Project implementation such condition will be specifically mentioned in the contract agreement with the contractor. Training would be conducted by DIO/RID staff or NGO (if engaged) for construction committee members on quality control and supervision of works. WUA would be enc9uraged to take part in the final measurement of contract works. WUA part of works would also be recorded and evaluated by DIO. If during construction, variation in the scope of works demands- a cost overrun of r:nore than 10% from the original estimate, then the . 3 of8 works would be suspended until the WUA contributes in cash or labour, on a pro-rata basis, their share of the cost over-run. MET would check on construction progress and quality of works. Step 13Commissioning: After physical completion of works according to the MOA, 010 technicians along with WUA members would conduct a walk through of the system during test runs of the system, to identify any defect and operational problems. During the contract maintenance period, the contractor would rectify the defects (if any) that would fall under his liability. 010 would prepare a completion report and organize the signing with the WUA of the certificate of work completion in accordance to the MOA. A copy of the report, signed by the WUA, would be forwarded to RID/DOI for recording in their management information system. Step 14Operation and Maintenance: After completion, the WUA would receive back the 0.5% upfront cash deposit from 010 as potential seed money for future O&M of the system. Thereafter the WUA would assume full responsibility for O&M of the system. With the assistance of DADO/ASC/NGO, the WUA and farmers would strengthen their linkages with other support agencies. O1O/RID staff or NGO would carry out O&M and water management trainings to WUA members as needed. An NGO would provide to the WUA continuing advice to ensure future sustainable agriculture· practices. RID would make provision for budgetary support to completed Sub-Projects in case of natural unforseen disasters. Step 15 Monitoring: 010 would assist the Regional Benefit Monitoring and Evaluation Team (RBMET) under RADO in conducting the PBME of Sub-Projects and monitor the O&M and water management status of the completed Sub-Projects. The WUA would be required to supply factual data and information to the RBMET during household and group surveys. Central PIC would be responsible for the overall impact assessment of the rehabilitated improved Sub-Projects on a sector basis. GROUNDWATER SUB-PROJECTS For the implementation of groundwater irrigation Sub-Projects all the steps would be similar to the above except that particular attention would be given to the following steps. The Sub-Projects implementation will be the responsibility of the GWFO. However for contacting DAC and RAAC, GWFO would act through DIO and RID. Step 1 Step7 Hydrogeological Study: Prior to the information dissemination step, potential areas for groundwater development would be identified based on existing and ongoing groundwater resources investigation studies and monitoring activities being conducted under the Ground Water Resources and Development Project (GWRDP) of DOI. Feasibility Study: To support ttie recommendations for groundwater development, the GWRDP Central Office are to make provision for undertaking geophysical studies of potential sites through slim hole boring to confirm the groundwater potentiality. Step 12 Construction: WUA contribution to the construction cost to be either in cash or through in kind (labour) and cash combined for the construction of the whole. works as agreed in MOA. 4 of8 PG CYCLE STEP
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His Majesty's Government of Nepal NEPAL IRRIGATION SECTOR PROJECT SUB-PROJECT CYCLE STEPS FOR THE DEVELOPMENT OF FARMER MANAGED SYSTEMS SURFACE IRRIGATION SYSTEMS 14/07/97 IMPLEMENTATION RS DISTRICT IRRIGATION AND REGIONAL IRRIGATION OFFICE CENTRAL DOI STAGE AGRICULTURE OFFICES (PIU) (PIC) INFORMATION Obtain Information and Application DISSE!:!rnATE INFORMAIIO~ About Program Keep Inventory of Existing Sub- Co-ordinate Information DISSEMINATlON Forms from Either DIO/DADO/ASC/SSC/DDC and Procedures to the voes of Potential Projects and Update Data on Water Dissemination to Media Area(s) and Other Concerned Agencies Resources Availability in Sub-basins Including Pol icy Makers and with the Help of OHM Regional Office Politicians APPLICATION Hold Group Discussions. Form Ad-hoc WUA Receive Application Forms with Upfront Committee. Prepare WUA Program and Cost Deposit and Screen to Verify They Complete APPLICATION FORM & Submit Meet SELECI!O~ CRIIER!A FOR Through ASC/SSC to DIO with Upfront IDENTIFICATION STUDY Cash Deposit DIO with DADO Assistance Select Sub- Projects for Identification. Inform DAC/DDC of the Selected List !DENT!FICATION Liaise and Discuss Proposals with DIO and DADO/ASC Staff Visit Site. Identification Team Collect Data. and eBEPARE IDENIIEICAT!O~ REPORT and CLASSIFY AS !:!AJOR QR !:!INQR REHABILITATION DIE discuss in the District Appraisal Committee CDAC) Identification Reports. and PRIDRITI ZE FOR FURTHER STUDY FEASIBILITY STUDY For Prioritized Sub-Projects. DIE RID Approves Program for Feasibility OR FEASIBILITY Prepares Program for Feasi bi1i ty Studies Studies STUDY l✓ITH (including Detailed Designs for minor DETAILED DESIGN rehab only) (For MINOR Rehabi Iitation Discuss with Feasibility Study Team the DID & DADO Staff (or Local Consultant) MIT & RADO Staff Provide Technical Only) Sub-Project \fork Proposals Along 1iith Undertake FEASIBILITY STUDY. If Minor Assistance. Sharing Information on Identification Rehabilitation also Prepare the DETAIIED of Sites and Cost Estimates DESIGNS &Cost Estimates at this Stage APPRAI SAL AND DAC Appraise Feasi bi 1i ty Reports and MIT Team Undertakes Site For Maj. Rehab TA Team DETAILED DESIGN Recommend to RAAC. If cost estimate >NRS Verification. and APPRAISE SUB- Undertake Technica I Revie11 & (Only For MAJOR 10. OM then Submit to DG/DOI for Approval PROJECT FEASIBILITY REPORT. Endorse Feasibility Study Rehabilitation) Assist Survey Team and MIT Checks Detailed Designs. Drawings TA Team Undertake Technica I Confirm Proposed ~/ork Sites For Major Rehab iii tat ion Undertake and Cost Estimates Revie11 and Endorsement of 0£.[MLED SURVEYS DES.IGNS AND PREPARE. Detailed Designs DRAWINGS. APPROVAL AND DID Informs 1/UA about Approval of Sub- After RAAC/DG Approval of Sub-Project If Cost Estimate <NRs l.OM Submit for If Cost >NRs 10. OM Based on TENDER DOCUMENT Project RAD. DID and DADO are Informed. Also DID RID APPROVAL. If >NRs 1. OM but <NRs Recommendation of Project PREPARATION Informs DDC 10.0M Submit for BMC APPRQVAL with a Imp1ementati on Committee Seek Compulsory Site Verification by MIT DG/DOI APPROVAL if Cost Estimate >NRs 5.0M PG CYCLE IMPLEMENTATION FARMERS DISTRICT IRRIGATION AND REGIONAL IRRIGATION OFFICE CENTRAL DOI STEP STAGE AGRICULTURE OFFICES (PIU) (PIC) Final Cost Estimate Discussed and TENDER DOCUMENTS and Detailed Cost Agreed Upon. Including Cost Sharing Estimates Finalized with WUA 10 RESOURCE Participate in Preparation of Plan & Prepare IMPLEMENTATION PLAN. Approve Implementation Plan and Approve and A11at Annual MOBILIZATION Program for Sub-Project Implementation Include in Annual Work Programme Budget Resources Submit Balance of Upfront Cash to Joint Prepare Budgetary Requirements by WUA/DID Account to Make Deposit O.5% of March of Each Year Total Cost Estimate 11 FORMALIZE FARMER EINALIZE WUA CQNSTITUTION and Ad-hoc DID/AO and DADO/ASC Staff Including NGO. MIT Sociologist Assists in WUA ORGANIZATION AND WUA Committee Formalization with if Required. Assist in All Trainings & Advises on Resource PARTICIPATION Support from DID. and Ratify by General Organizational Matters of Farmers Mobilization Assembly. REGISTER THE WUA. Sign MEMORANDUM OF AGREEMENT in Front of General Assembly. Agree with WUA on Work Breakdown Agreement and Undertake Baseline Survey for PBME 12 CONSTRUCTION Mobilize Cash and/or Provide Labour Tender and Award Contracts. Construction Contribution in Accordance with of DOI Part to Only Start After 15% of Irrigation Policy and as Stated in MOA WUA Contribution to the Works Completed WUA Construction Supervision C0!1'11littee DID Staff & WUA Committee SUPERVISE MIT/MET Assistance and Monitoring of Formed CONSTRUCTION & Manage Payments to Progress and Quality Control Contractors. 13 COMMISSIONING \lalkthrough & Identify Defects & During Contract Maintenance Peri ad Operational Problems with DOI and Ensure Contractor Rectifies Defects. DADO/ASC Staff Plan any Additional Works with WUA and Supervise their Completion ~/UA Confirms System Physical Prepare COMP! FTION REPORT and Organize Receive Copy of Completion Report and Rehabilitation Works Complete. and Signing with WUA of the CERTIEICATE FOR Certificate Certifies Completion Report. WORK COMPLETION Enter into MIS Records 14 OPERATION AND WUA Receives Back its 0.5% Cash Deposit MAINTENANCE as Seed Money for Future O&M Farmers/WUA Take on Responsibility For Advise Farmers on their Future Arrange Budget for Unforeseen If Necessary, Re-Formulate A11 Future Operation and Maintenance BESPONSIBIL!TIES FOR O & M and Supervise Disasters/Eventualities Policy for Future Support to O&M and Water Management Training Rehabilitated & Turnover FM!Ss Farmers Strengthen Their Linkages with f/ith DADO/ASC/NGO Assistance Confirm Support Services and Line Agencies with Linkages with Support Services Assistance from NGO. 15 MONITORING Assist Impact Monitoring Team by Assist Regional Benefit Monitoring Team Through a Regional Monitoring REVIEW NISP PROJECT IMPACT Supplying Factual Information and Data Under RADO to Mani tor PBME & Impact of Committee with RAD as Chairman and Modify Policy. Processes During Group and House-Hold Surveys. Sub-Project Works. Monitor O & M and MONITOR OVERALL PBME & Sub-Project as Required Water Management Status . Impact NOTE: Cycle Steps Highlighted (eg.FEASIBILITY STUDY) are Expanded on in a set of Accompanying Procedural Guidelines (PG) l PG CYCLE i STEP
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NEPAL IRRIGATION SECTOR PROJECT SUB-PROJECT CYCLE STEPS FOR THE DEVELOPMENT OF FARMER MANAGED SYSTEMS GROUNDWATER IRRIGATION SYSTEMS/ CLUSTERS 14/07/97 IMPLEMENTATION FARMERS DISTRICT AGRICULTURE AND REGIONAL IRRIGATION/ AGRICULTURE/ CENTRAL DOI STAGE GFO FIELD OFFICES GWRDP CENTRAL OFFICES (PIC) HYDROGEOUJGICAL IDENTIFY CLUSTER AREAS with Good Groundwater MIT Provide Assistance STUDY Potentiality INFORMATION Obtain Information and Application DISSEMINATE INFORMATION About Program and Keep Inventory of Existing Clusters and Co-ordinate Information DISSEMINATION Forms from Either GFO/DADO/ASC/SSC/DDC Procedures to the voes in the GW Potential Update Data on Groundwater Resources Dissemination to Media, Policy Area(s) and Other Concerned Agencies Availability Makers & Politicians APPLICATION Hold Group Discussions. Form Ad-hoc Receive Appl i cation Farms with Upfront Cost 1,UA Committee, Prepare WUA Program and Deposit and Screen to Verify They Meet Complete APPi !CATION FORM &Submit SELECTION CRITERIA FOR l[)ENTIFICAIION STUDY Through ASC/SSC to GFO with Upfront Cash Deposit GFO with DADO Assistance Select Cluster for Identification. Inform OAC/DDC of the Selected List IDENTIFICATION Liaise and Discuss Proposals with GFO and DADD/ASC Staff Visit Site, Collect MIT Provides Assistance if Required Identification Team Data, and PREPARE IDENTIFICATION REPORT PIC of GFO discuss in the District Appraisal Co1M1ittee CDAC) Identification Reports, and PRIORITIZE FOR EURrnER STUDY FEASIBILITY STUDY For Prioritized Clusters, PIC of GFO Prepares RID Approves Program for Feasibility Program for Feasibility Studies Studies SITE INVESTIGATION by Slim Hole Boring if Undertake GEOPHYSICAL STUDIES of Required Potential Sites and CONFIRM GROUNDWATER POTENT!AL ITV Discuss 1·1ith Feasibility Study Team GFO &DADO Staff (or Local Consultant) MIT & RADO Staff Provide Technical the Cluster Work Proposals Along with Undertake FEASIBILITY STUDY Assistance. Sharing of Information on Site Locations and Cost Estimates APPRAISAL AND DAC Appraise Feasibility Reports and Recommend MIT/GWRDP Team Undertakes Site TA Team Undertake Technical DETAILED DESIGN to RAAC.If cost estimate >NRS 10.0M then Verification, and APPRAISE FEASIBILITY Review and Endorse Feasibility Submit to DG/DOI for Approval STUDY REPORT. Study Assist Survey Team and MIT Checks Detailed Designs, Orawi ngs & TA Team Undertake Technical Confirm Proposed Work Sites Additional Surveys Undertaken and DETAILED Cost Estimates Before Submitting for Review and Endorsement of DESIGNS Prepared Technical Approval by GW Chief Detailed Designs APPROVAL AND GFO Informs WUA about Approval of After RAAC/OG Approval of Cluster RAD, GFO and If Cost Estimate <NRs 1.0M Submit for If Cost >NRs 10. OM Based on TENDER DOCUMENT Cluster Development DADO are Informed. Also GFO Informs DOC RID APPROVAL. If >NRs 1. OM but <NRs Recommendation of Project PREPARATION 10.0M Submit for RAAC APPROVAL with a Implementation Committee. Seek PG CYCLE IMPLEMENTATION FARMERS DISffiICT AGRICULTURE AND REGIONAL IRRIGATION/ AGRICULTURE/ CENmAL DOI STEP STAGE GFO FIELD OFFICES GWRDP CENTRAL OFFICES (PICJ TENDER DOCUMENTS and Detailed Cost Estimates Compulsory Site Verification by MIT if QGlDOI APPROVAL Final Cost Estimate Discussed and Finalized with WUA for Drilling and Surface Cost Estimate >NRs 5.0M Agreed Upon. Including Cost Sharing Works 10 RESOURCE Participate in Preparation of Plan & Prepare IMPLEMENTATION PLAN. Approve Implementation Plan and Include MOBILIZATION Program for Cluster Implementation in Annual Work Programme Submit Balance of Upfront Cash to Prepare Budgetary Requirements by March Approve and A11ot Annual Budget Joint WUA/GFO Account to Make Deposit of Each Year Resources 0.5% of Total Cost Estimate 11 FORMALIZE FARMER EINALI ZE WUA CQNSTITUTIQN and Ad-hoc GFO and DADO/ASC Staff Including NGO. if MIT Sociologist Assists in WUA Trainings ORGANIZATION AND WUA Committee Formalization with Required. Assist in All Organizational Matters & Advises on Resource Mobilization PARTICIPATION Support from GWP. and Ratify by of Farmers General Assembly. REGISTER THE WUA. Sign MEMORANDUM OF AGREEMENT in Front of General Assembly. Agree with WUA on Work Breakdown Agreement and Undertake Baseline Survey for PBME 12 coNsmucnON Mobilize Cash and/or Provide Labour Organize Dri 11 i ng Works. Either Force Account Contribution in Accordance with or by Contractors. CONSTRUCTION of DOI Part to Irrigation Policy and as Stated in MDA Only Start After 15% of WUA Contribution to the Works is Completed WUA Construction Supervision Committee Formed GFO Staff Supervise Dri 11 ing. Installation of MIT/MET Assistance and Monitoring of Pump & Power Supply. & Testing of Well Progress and Quality Control Supervise a11 Tubewe11 & Civil Works. Evaluate Civil Works and Pump/Engine Tender and Award Civil f/ork Contracts. GFO Suppliers Prior to Payment Staff Supervise a11 Works and Payments to Contractors and Suppliers 13 COMMISSIONING Walkthrough & Identify Defects & During Contract Maintenance Period Ensure Operational Problems with GFO and Contractor Rectifies Defects. Pl an any DADO/ASC Staff Addi ti onal Works with WUA and Supervise their Completion fJUA Confirms all Facilities Provided Prepare COMPLETION REPORT and Organize Signing Receive Copy of Completion Report and and Working Properly and Certifies with WUA of the CERTIFICATE FOR k/ORK Certificate Completion Report. CQMPLETIDN Enter into MIS Records 14 OPERATION AND WUA Receives Back its O. 5% Cash MAINTENANCE Deposit as Seed Money for Future O&M Farmers/WUA Take on Responsibility For Advise Farmers on their Future Arrange Budget for Unforeseen If Necessary. Re-Formulate Policy All Future Operation and Maintenance RESPQNSIBILITIES FOR O & M and Supervise O&M Disasters/Eventualities for Future Support to Newly and Water Management Training Constituted FMISs Farmers Strengthen Their Linkages with Private Workshops. Support Services With DADO/ASC/NGO Assistance Confirm Linkages and Line Agencies with Assistance from with Support Services NGO. .- -~..... , ......,..,.. ... \J,.. .,,, ........ ,-+ Tm.n."V"+- l.4nni+n,...-il"'I.,-. To-:i,.. h .. J\,-,--ir+- (?,..,...: ....,.,,, I?..........,.._+.:+ l,J,..,.....;+l"U"'.:O'V'I T,... .._... 11....,.,1 ...... Th...-.,..,._...._i... ... n....,...;,.._....,, "!..._....:+,.. .....: ...,.. r,r'\Jn(l'li+-f-('.l.n OC'VTC'l.J MH"D OOnU::f'T TUOA.f'T :,nrl - --- - ·-- --···- ~ --- I STEP STAGE GFO FIELD OFFICES GWRDP CENlRAL OFFICES (PIC) ! Supplying Factual Information and Data RADO to Mani tor PBME & Impact of Cluster with RAD as Chairman MONITOR OVERALL Modify Policy, Processes as During Group and House-Hold Surveys. Works. Monitor O&M and Water Management EllliE & Cluster Impact Required I Status. ~OTE: Cycle Steps Highlighted (eg.FEASIBILITY STUDY) are Expanded on in a set ATTACHMENT 12 - SUNSARI MORANG IRRIGATION Ill PROJECT - LAND ACQUISITION PLAN - RESETTLEMENT ACTION PLAN SUNSARI MORANG IRRIGATION Ill SUB-PROJECT * The Sunsari Morang Irrigation System is the largest public irrigation system in the eastern region of Nepal. The sub-project diverts water from the Kasi River and commands a net irrigable area of about 68,000 ha. The Nrs. 200 million worth of construction of the Sunsari Morang Irrigation System was started in 1964 by the Government of India. (GOI) in accordance with the Kasi Sub-project Agreement of 1954 between the GOI and the HMGN*. After trial operations starting in 1970, the Sub-project works were handed over to the HMGN in 1975. The original distribution system terminated at turnouts serving areas of over 200 ha (minor canals) and typically over 100 farmers. The lack of minor distribution networks below these turnouts of 200 ha meant the system was inefficient and could not irrigate the whole command area. Water distribution Was unreliable and inequitable. From inception, the Sub-project faced a massive siltation problem because.the Kasi River carries a heavy load of sediment during the flood season. Hence, significant amounts of sediment settled in the newly opened canal systems and reduced their water carrying capacities to almost half in an irrigation season. The rate of siltation outpaced cleaning of watercourses by farmers. As a result of these deficiencies, the Sub-project did not fulfill its objectives and in 1975, HMGN requested IDA assistance to overcome these shortcomings. IDA involvement in the Sub-project has been divided into stages : Stage I, known as SMIP-I, was approved in 1978 and provided US$30 million to rehabilitate and complete minor irrigation networks (known as command area development - CAD) on 9,750 ha and the sub-project was completed satisfactorily in 1987. Later in 1987, IDA processed a second stage (SMIP II) in the amount of US$40 million for CAD on a further 16,700 ha, which was completed satisfactorily in 1995. Both of these credits provided infrastructure to eliminate the siltation problem. However, the steps taken were not sufficient and effective. In early 1991, while SMIP II was under implementation, HMGN obtained advice .of an international Panel of Experts (POE) to deal with the siltation problem. The POE recommended that the sub-project be modified by : (a) moving the intake structure 1,300 m upstream of the existing intake site, (b) constructing a larger capacity desilting basin, (c) utilizing dredgers to remove silt from the desilting basin, and (d) constructing a micro- hydro unit in the headreach of the main canal to provide power for the dredger operations. A new IDA credit, Sunsari Morang Headworks Sub-project (SMHP - Cr. 2430) in the amount of US$28 million, to provide these additional works was approved in early 1993. The SMHP is on track for completion in December 1997. The larger desilting basin constructed in 1992 under the SMIP-11 has proven successful and been operation well with dredgers taking out silts from the basin. At the same time the water management problems have been significantly reduced by introducing a simple structured irrigation design for SMIP-11 and partly in the SMIP-1. The resulting layout has proved to be acceptable to farmers. The implementation of SMIP-I & SMIP-II is consistent with the This bilateral .agreement dated April 25, 1954, as amended on December 19, 1966, states that "HMGN shall have every right to withdraw for irrigation and for other purposes in Nepal water from the Kosi River and from the Sun-Kosi River or within the Kasi basin from any other tributaries of the Kosi River as may be required from time to time. The Union shall have the right to regulate all the balance in the Kosi River at the barrage site thus available from time to time and to generate power in the Eastern Canal". 1 of 5 HMGN's Irrigation Policy of facilitating water users/ participation in all stages of the Sub- project implementation. Legal WUGs have been formed in every developed tertiary irrigation unit (mostly about 28-50 ha in size) in the SMIP-I and II areas. To date, the whole tertiary system of SMIP-11 has been turned over to the respective WUGs who has been successfully carried out O&M on their own. Higher order Water User Associations at the secondary canal level have been formed and a Water User Central Coordination Committee to represent beneficiary farmers at the Sub-project management level has been established. 5. The 1954 Kasi agreement does not limit water from the Kasi river for development works in Nepal. The soils of the Sunsari Morang Sub-project are good and the farmers are competent. Since the present technical solutions and the newly introduced Participatory Joint Management (PJM) operation have proven successful, completion of the system can proceed on the technically feasible portions of the remaining 41,500 ha of the system, which are still as originally designed and constructed. Hence, the proposed sub-project would extend IDA support for CAD in the Sunsari Morang Irrigation Sub-project to a further feasible slice of the remaining command area. The technical feasibility study for the determination of a viable size of SMIP-I11 for another phase in the form of PJM has been completed since December 1995. The study includes a final design of first year pilot area and ICB tender document for the whole phase of 15,100 ha. Sub-project Objectives 6. The sub-project would aim to (a) raise agricultural production and incomes through investment in rehabilitation and modernization of further 15,100 ha of the Sunsari Morang Irrigation System, • (b) further strengthen and firmly establish Participatory Joint Management of the large public irrigation system, (c) improve construction, operation and maintenance activities with beneficiary participation in every phase to increase . productivity and sustainability of the irrigation system, (d) reduce public expenditures for O&M of the irrigation .system, (e) strengthen the capacity of the Department of Irrigation (DOI) for implementing the HMGN's irrigation policy for PJM in large public irrigation systems. Sub-project Description 7. The proposed sub-project would finance (a) rehabilitation and improvement of a portion of the main canal and its appurtenant structures beyond that covered by Stage I & II and up to the tail end of the system, (b) rehabilitation and modernization of secondary canals and related structures, drains and inspection road networks covering a net command area of 15,100 ha of the Sub-project, (c) development of command area distribution networks through construction of sub-secondary or minor canal system, (d) construction of 5.4 km of Kosi east embankment to protect the irrigable areas, (e) technical and institutional building assistance to beneficiary WUGs for construction of water courses and field channel systems, (f) other miscellaneous works and infrastructure necessary for proper operation and maintenance of the developed system, (g) technical support; through consulting services, during implementation, for monitoring and evaluation, and for strengthening DOI and WUGs by providing in-house and on-the-job training. Sub-project Size and Implementation Schedule 8. The technically and economically viable proportion of the remaining 41,500 ha of the system suitable to be covered by a Sub-project was determined by a feasibility study. The feasibility study examined issues of implementations capacity to determine the size of the Sub-project that can be effectively implemented within a 5-year construction period. However, based on past experiences, a Sub-project covering an area of 15,000 - 17,000 ha is anticipated due to capacity limitation, with the remainder of the suitable area 2 of 5 9. 10. ** deferred to SMIP IV and onward. The feasibility study included a review and assessment of the present irrigation systeni's performance under the facilities and CAD provided by the SMIP I, the SMIP II and the SMHP and was undertaken by a consulting team financed by a PHRD grant**. The study also tested the economic viability of the proposed sub- project, taking account of sunk costs, and of the larger SMIP program including the SMIP- I, the SMIP-11 plus the SMHP. The output of the study also included a feasibility design, cost estimates, ICB bidding documents for a viable SMIP Ill sub-project and a sample detailed engineering design for a sliQe of the first year pilot civil works on 1350 ha to test the joint contractor-farmers construction. The study was completed in the late November 1995. O&M Cost Recovery · The current water rate of Nrs. 200 per ha was established about 8 years ago on a national basis and has not been adjusted subsequently. It is estimated that Nrs. 530 would now be required to cover full O&M. With the WUGs taking over O&M of the tertiary distribution system in the rehabilitated portion of SMIP, about Nrs. 400 per ha could be required for the remaining expenses for adequate O&M. The area based type of water rates are assessed uniformly to all beneficiaries, without taking account of the fact that many farmers are receiving little or no water due to system deficiencies and lack of prior maintenance. The present rate of collection nationwide is understandably low (about 5%). The water rates collected go to the Treasury, with no effect on actual O&M expenditures. HMGN under the NISP is requested to design an improved system to be applied to the rehabilitated portion of the SMIP Sub-project area under which (I) the water charges would be increased to cover full O&M of the main and secondary distribution systems, (ii) the rates collected by the WUGs, less a suitable allowance for overhead, would be kept in a separate account in the sub-project area and would be used to finance O&M for the SMIP, and (iii) any WUG in the rehabilitated area that does not collect adequate water charges (minimum percent to be defined) would be cut off from receipt of irrigation water pending satisfactory resolution of the arrears issue. While it is premature to predict how much of the desirable reforms of the O&M policies and practices can be achieved under this sub-project, it is an intention to try to obtain significant reforms in this area. A detailed O&M study for the whole country would be carried out under NISP. Sub-project Financing The recently revised HMGN's Irrigation Policy introduced a 25% beneficiary contribution to capital costs of rehabilitation of the tertiary system. Therefore, SMIP Ill would only be implemented in areas where WUAs have agreed and collected at least 70% 'of the required beneficiary co-sharing of costs. The current cost sharing 25% by beneficiary farmers could perhaps be increased under future sub-projects (particularly after the potential benefits of the SMHP Sub-project in reducing siltation and the effectiveness of the improved Joint Participatory O&M systems have been demonstrated). However, for the time being one should concentrate cost recovery efforts on the more crucial issues of O&M. The financing plan for the sub-project assumes that IDA would provide 80% of the total sub-project costs, with HMGN and the beneficiary farmers contributing 10% each. HMGN has asked IDA to execute the preparation of Sunsari Morang Irrigation 111 Sub-project for which purpose a grant of 108,200,000 Japanese yen (about US$0.97 million equivalent) was· approved in December 1993. A consulting firm, Nippon Koei Co. Ltd., was hired in July 1994 for a detailed feasibility study which is planned to complete in November 1995. • ·3 of5 Sub-project Implementation 11. The sub-project would be implemented over a five-year period including one year for preparatory works to allow WUG formation and arrangements to be made for beneficiaries' participation in construction of water· course systems. The Sub-project would be implemented by the existing Sunsari Morang Irrigation Development Board with support from the Department of Irrigation, Ministry of Water Resources, HMGN, with a joint participation of WUAs. The proposed sub-project is consistent with IDA's country assistance strategywhich emphasizes the role of the private sector farmers in agricultural development. Turn-over of tertiary systems to the farmers to relieve the Government of the O&M responsibility is impossible until and unless water course systems are introduced, the dilapidated distribution networks are rehabilitated, and beneficiary WUAs are formed and legally institutionalized for O&M. The proposed Sub-project also supports HMGN's irrigation development strategy, which gives priority· to improving the performance of existing systems and improving water management in public irrigation schemes through greater reliance on WUGs - the central objective of the HMGN's Irrigation Policy 2049. The WUGs would become the contact farmer group for extension services in irrigated areas and would be supported under an improved extension system currently being developed with support from the Agricultural Research and Extension Project (FY1998). 12. IDA has been involved with HMGN for many years as a leading donor in developing the modalities for efficient operation and maintenance of the country's public irrigation sector. Although the PJM program is still evolving, some of the schemes being tested under the on-going Irrigation Line of Credit (ILC) program as well as the current performance of PJM in the Stage II area of SMIP show positive results. The proposed sub-project would carry these innovative developments further with improvements designed to orient DOI and WUGs towards sharing . joint responsibilities, not only in O&M but also during implementation. IDA has played a leadership role in the sector, has introduced CAD into the system, and has been instrumental in helping HMGN design and implement its new irrigation policy. Riparian Issues and Actions 13. The extension of CAD to the Stage Ill area would not be affected by any developments in China, as the Kosi River rises in the high Himalayas where consumptive use is not possible and diversion unlikely. The proposed sub-project is of a rehabilitation nature and is in accordance with the Kosi project Agreement .of 1954, as amended in 1975, between GOI and HMGN and would implement the original .intent of the Agreement by making it possible to irrigate efficiently the area which was constructed by GOI. There would be no change of impact on Bangladesh as the dry season flow is already diverted by India at the Kosi barrage. For these reasons, the sub-project which involves only the alteration to an on-going scheme, would not cause appreciated harm to the other riparian countries, not would the sub-project be so harmed by feasible use of the Kosi River water by such countries. 14. Under the SMIP, there will be two types of sub-projected affected families (PAFs) on about 380 ha of the land to be used for canal intensification. For all cases where PAFs are also sub-project beneficiaries, the current arrangement whereby farmers voluntarily contribute portions of their land is satisfactory. In the case of non-beneficiary PAFs, irrespective of whether the system is public or FMIS, HMGN's current land acquisition action plan is being reviewed by the Bank to ensure its consistency with the Bank's policy. According to the field survey during FS it was observed that there will not be any displaced or affected household in the SMIP-111 area since all are in the irrigable area. Anyhow a detailed Land Acquisition Plan (LAP) has been prepared and .reviewed by the Bank. Based on the pilot area survey it was estimated that about 45 farm families could 4 of 5 have loss of land more than 25% of their holding. It was agreed that the project management will submit to the Bank a satisfactory Resettlement Action Plan (RAP) for these SPAF in each year before the actual land acquisition and carry out the physical acquisition satisfactorily as per agreed RAP (see Resettlement Action Plan in Annex C). Environmental Aspects 15. The sub-project has been given a B rating for environmental purposes. The feasibility study has been charged with bringing the CAD design in line with the Bank's current environmental standards and ensuring conformity with the requirements of HMG.N's environmental impact assessment guidelines. Compliance with this requirement will be · ensured through a monitoring system to be established during implementation of the sub- •project. Benefits 16. Irrigated area, production, farm incomes and employment are expected to rise in the Stage Ill area, where about one third of the area command currently gets no irrigation due to system deterioration and inequitable distribution of water. Assuming that a viable size of SMIP Ill would be about 15,000 ha, the incremental foodgrain and oilseed production would be about 30,000 ton/year and 1600 ton/year respectively. Over 8,000 farm families would be benefited by the sub-project, while the construction would generate about 6,000 jobs per day during the five to six year construction and about 25-30 mandays/ha increase at full development under farming. Operation and. maintenance of the system are both expected to improve due to WUG responsibility and decreased government liability for O&M. A major institutional benefit would be a shift in DOl's orientation away from construction towards policy setting, planning and monitoring. The ERR of the sub-project is found to be about 14.0%. 5 of5 LAND ACQUISITION PLAN FOR SMIP-111 SUB-PROJECT Nepal Irrigation Sector Project 1 of 10 ATTACHMENT 12 ANNEXB CONTENTS Page No Section 1 : INTRODUCTION ) Sunsari Morang Irrigation-Ill Project Definition Land Acquisition Plan Extent and Scope of Land Acquisition Plan within the Project A B C D E Land Acquisition and Economic Rehabilitation Principles & Objectives SECTION 2 : INSTITUTIONAL AND LEGAL FRAMEWORK A B Institutional Framework Legal Framework SECTION 3: ENTITLEMENT POLICY Eligibity Criteria A B C D Economic Rehabilitation Entitlements Peoples' Participation Baseline Information SECTION 4: IMPLEMENTATION ARRANGEMENT A Schedule B . Complaints and Grievances C Supervision and Monitoring Section 5 : COST AND BUDGET ANNEXES 1. Entitlement Matrix 2. Social Assessment of SMIP-11I area 3. Resettlement Impact on Pilot Area (1350 ha) 4. Estimated Cost for Land Composition and Economic Rehabilitation 2 of 10
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Compensation, Fixation and Rehabilitation Management Committee Department of Irrigation LAA MOWR PAF PAP R&R SMIP SPAF WUA . His Majesty' Government of Nepal Land acquisition Land Acquisition Act 2034 (1997) Ministry·of Water Resources Project Affected Family Project Affected Person Resettlement and Rehabilitation. Sunsari Morang Irrigation Project Seriously project Affected Family Water Users Association. LIST OF RELEVANT LEGAL ENACTMENTS LAA Land Acquisition Act 2034 (1997) IP. Irrigation Policy, 1992 (Revision 1997) 3 of 10 NEPAL IRRIGATION SECTOR PROJECT LAND ACQUISITION PLAN SECTION I - INTRODUCTION A. SUNSARI MORANG IRRIGATION STAGE Ill ATTACHMENT 12 ANNEXB 1: Sunsari Morang Irrigation Stage Ill (SMIP Ill), henceforth referred to as the Project, as a sub- • component of the Nepal Irrigation· Sector Project (NISP) aims to rehabilitate _and construct command area development works in about 15,100 ha. This is a major joint management . scheme, the major components of which are: (a) Improvement and rehabilitation of the main canal of the Sunsari Morang Irrigation system beyond the completed Sunsari Morang II area; (b) Rehabilitation and modernization of Secondary Canals and related structures, drains and inspection road networks; (c) Development of distribution networks through construction of sub-secondary, tertiary and water course canal system; (d) Construction of5.5 km of Koshi River Eastern Flood Embankment; (e) Technical and institutional capacity building of staff and Water Users Associations (WUAs) in project implementation and operationand maintenance (O&M) of project works; and (f) Other miscellaneous works and infrastructure necessary for proper O&M of the developed system. 2. The project will contribute to alleviation of rural poverty by directly increasing the productivity and incomes of about 15,000 families, through reliable irrigation made possible by the project. Substantial rural employment will be created through construction civil works. In addition, in the long run, the incremental irrigated area will generate an estimated 1.7 million person days work per annum at full development. Annual construction labor employment will be about 1.1 million person days on average during the construction period.· 3. The physical works are limited to activities under the irrigation component which consist of improvement of existing secondary canal, construction of sub-secondary, tertiary, water course canal system and tertiary drains. 4. This Land Acquisition Plan (LAP) has been developed to address the land acquisition issues and related economic rehabilitation measures for project affected persons emerging from the irrigation system improvement component of the project. • 1 of 10 B. DEFINITIONS 5. The terms used in this document are defined as follows: (a) (b) (c) (d) (e) (f) Compensation means payment in cash or in kind of the replacement value of the acquired property. Compensation. Fixation and Rehabilitation Management (CFRM) Committee means the committee established under the Land Acquisition Act (LAA) of 1977 to determine replacement value and compensation rates for property being acquired under the Act. Grievance Redress Committee means the committee established by HMGN and/or the project to hear the complaints and grievances of PAFs or PAPs regarding land acquisition issues. as well as acquisition of houses and other assets. and loss of livelihood caused by the project. Land Acguisition means the process whereby a person is compelled by a public agency to alienate all or part of the land he/she owns or possesses. to the ownership and possession of that agency for public purpose in return for consid~ration. PAF means project affected family. and consists of the members of a household. including elderly dependents and minor children (under 18 years of age) residing under one roof and operating as a single economic unit. who are adversely affected by the project or any of its components. Major children. over 18 years of age shall be separately entitled to rehabilitation benefits even if they live with their parents but will not be eligible for separate housing or compensation for properties held by other members of their shared household. PAP means project affected person, and includes any person or persons who, on account of the execution of the project. or any its components or sub-projects or parts thereof, would have their: (i) rights, title or interest in any house. land (including residential, agricultural and grazing land) or any other fixed or moveable asset acquired or possessed. in full or in part, permanently or temporarily; or (ii) business. occupation, work. place of residence or habitat adversely affected; or (iii) standard of living adversely affected. (g) Replacement value means the value determined to be fair compensation for agricultural land based on its productive potential and the real value on the open market. the replacement cost of houses and structures •(current fair market price· of building materials and of labor, without depreciation) and the current market value of residential land. crops trees and other commodities. (h) Resettlement means all the measures taken to mitigate any and all adverse impacts of the project on PAFs property and/or livelihoods, including compensation, relocation (where relevant), and rehabilitation. (i) Relocation means the physical relocation of PAFs from their pre-project place of residence. 2 of 10 U) Rehabilitation means the compensatory measures provided under the plan other than payment of the replacement value of acquired property. (k) SPAF means a PAF whose house is totally or partially acquired under eminent domain, rendering it not habitable; or from whom acquisition of agricultural land exceeds 25% of the PAF's total landholding, provided that for farmers holding less than 0.5 ha, the • limit of land acquisition shall be 10% beyond which they shall be considered SPAFs. For determining the number of SPAFs, acquisition of houses and acquisition of agricultural land shall be treated severally, each house acquired being considered equivalent to one SPAF. C. LAND ACQUISITION PLAN 6. Irrigation rehabilitation measures to be undertaken under the project have been designed to improve the existing irrigation/drainage network. Land acquisition will be involved for the construction of canals and drains. No relocation of settlement is envisaged. Every effort will be made to improve the distribution systems and drainage channels by utilizing the land already available with the project. For rehabilitation of existing secondary canals, no land acquisition will be required, but for the proposed new sub-secondary, tertiary and water course canal systems and tertiary drains, strips of land along which the canals and drains are to be constructed will have to be acquired. The Irrigation Policy, 1992 (revised in 1997) requires that the beneficiary farmers will have to voluntarily contribute the land required for the construction of canal and drainage network required to irrigate an area up to 30 ha. Hence, acquisition of land for the construction of water courses and collector drains will not be required Nevertheless, the construction of sub- secondary and tertiary will involve small scale land acquisition. This plan provides the basis to adequately address economic rehabilitation of PAFs for such cases. 7. •The underlying principle of the plan is to ensure that all PAFs share in project benefits, and are compensated and rehabilitated to assist them to improve, or at least maintain, their living conditions and income earning capacity at pre-project levels. In addition to direct compensation for loss of property and livelihoods, special measures shall be undertaken to rehabilitate SPAFs and ensure that their living standards are improved or at least maintained at the pre-project levels. 8. The .plan lays down the principles and objectives, legal and institutional framework, eligibility criteria, entitlements and grievance procedures that will guide the rehabilitation of the PAPs. Since works for the project will be spread over several years, land acquisition and economic rehabilitation activities necessitated by each year's work will be completed by the project prior to the start of work. D. EXTENT AND SCOPE OF LAND ACQUISITION WITHIN THE PROJECT 9. The civil works under the project are planned to be completed in four years. Following a program approach, detailed design and drawings of the works to be implemented during the following year will be prepared and submitted by the project for Bank approval. The detailed design of the 1,350 ha of pilot area to be implemented during the first year of the project has been completed. The data from the pilot area have been provided to assess the extent of land acquisition. 10. On the whole, the extent of land acquisition is small, and its adverse impact is outweighed by the benefits accruing to the PAPs as a result of the project. Based on the data from the 1,350 ha pilot area, the number of SPAF in the project is not more than 45. The impact of land acquisition is expected to be distributed widely across the command area reducing the adverse effect on individual farmers. All the PAFs stand to benefit significantly from improvements in the irrigation system. No relocation is envisaged. In exceptional cases, if a house is found along the alignment of the canal, such alignment will be changed in consultation with the WUAs. Monitoring of land 3 of 10 acquisition and economic rehabilitation activities will include establishment of a socio-economic baseline survey and periodic monitoring of economic indicators to ensure that loss of land in the project is offset by post-project income gains through increased productivity. 11. The impact of the project is likely to vary by size of landholding. Most of the farmers are small land holders, average farm size being 1.08 ha. The tenurial status of farmers is complex. Data available from the pilot area list 64 percent of area being cultivated by landowners whereas about 36 percent of the total area is cultivated by tenant farmers. To ensure that the poorest are compensated adequately, the plan has a lower threshold for inclusion among SPAFs for those holding less than 0.5 ha of land. • 12. Participation and institutionalized consultation are positive rehabilitation measures included in the project. The Irrigation Policy categorizes the project as a joint management scheme. Water Users Associations (WUAs) are actively participating in the implementation of the project. All the farmers within the command area are members of WUAs. After implementation of the improvement program, the water courses, tertiaries, and sub-secondaries will be turned over to the WUAs under a Memorandum of Agreement The WUA is a useful vehicle for consultation with PAPs and local participation in project design, implementation and O&M. Involvement of the WUAs increases project,ownership by PAPs and helps mitigate adverse impact E. LAND ACQUISITION AND ECONOMIC REHABILITATION- PRINCIPLES AND OBJECTIVES (a) Land acquisition will be minimized as much as possible. Where land acquisition is unavoidable, the •project will be designed to minimize adverse impact on the poorest (those holding less than 0.5 ha of land) and will be planned and implemented in such a way as to cause the least possible amount of social, cultural and economic disruption. (b) PAFs will be compensated, relocated and rehabilitated, if required, so as to improve their standard of living, income earning capacity and production capacity, or at least to restore them to pre-project levels. (c) Special measures will be taken to protect socially and economically vulnerable groups such as female-headed families, children and aged people without support structures, ethnically or tribally disadvantaged social groups, and people living in extreme poverty. (d) All PAFs residing in, or cultivating land, or having rights over resources within the project area as of the date of the census survey are entitled to compensation for their losses and/or income rehabilitation. Lack of legal rights or title to the asset(s) taken for the project will not bar PAFs from receiving compensation, rehabilitation and relocation measures to achieve the objectives set forth under para (b) of this Section. (e) The means of rehabilitation are: cash compensation at full replacement value for houses and other structures; agricultural land of equal productive capacity; replacement of residential land at least of equal size, dislocation allowance and transition subsidies; full compensation from crops, trees and other similar agricultural products at market value, and other assets; and appropriate rehabilitation measures to compensate for loss of livelihood. (f) PAFs forced to relocate due to their house being acquired will be provided full assistance for transportation and re-establishment of their homes and will be provided a Dislocation allowance, in addition to provision of residential land and the replacement cost of their home. 4 of 10 (g) Replacement residential and agricultural land will be as close as possible to the land that was lost and acceptable to the PAF. (b) Where the PAF prefers to receive compensation in cash, or where replacement land is not available, cash compensation may be paid in lieu of land-for -land compensation, provided that: (i) U) (k) (I) (m) (n) (o) (p)_ the PAF receives full replacement value for the land and all assets on it, without any deduction for depreciation; prior agreement has been reached on acquisition of land at a rate determined by the Compensation, Fixation and Rehabilitation Management (CFRM) Committee with full consultation with the PAF or his/her representative; the PAF stands to benefit directly from the subproject through an increase of production, project-sponsored employment, or other source of income arranged by the subproject; and each compensation is accompanied by appropriate rehabilitation measures which together with subproject benefits result in restoration of PAF incomes to at least pre-project levels. PAFs will not be dispossessed of their property nor displaced from their place of residence or employment without payment of full compensation and/or without making arrangements for relocation (where applicable) and economic rehabilitation. The .';r:, .construction schedules at any given site will be synchronized with the land acquisition and t'.: economic rehabilitation schedules to ensure that all land acquisition and economic rehabilitation activities are completed prior to the commencement of construction at that site. The previous level of community services and access to resources will be maintained or improved after land acquisition. Economic rehabilitation and other social development plans will be implemented following consultations with the PAFs, and will have the endorsement of the PAFs. Any acquisition of, or restriction on, access to resources owned or managed by PAFs as common property will be mitigated by arrangements ensuring access of those PAFs to equivalent resources on a continuing basis. The entire cost of land acquisition, economic rehabilitation, and other social development programs will be considered an integral part of the project cost and accordingly will be budgeted in annual and overall implementation plans of the project. Adequate institutional arrangements will be made to ensure effective and timely design, planning and implementation of the land acquisition plan, including economic rehabilitation and social development programs. Adequate arrangements will be made for effective and timely internal and external monitoring of the land acquisition plan, including economic rehabilitation and social development programs. The subproject will establish effective mechanisms for hearing and resolving grievances during the land acquisition plan and the economic and social development programs. 5 of 10 SECTION 2- INSTITUTIONAL AND LEGAL FRAMEWORK · A. INSTITUTIONAL FRAMEWORK 13. The responsibility for implementing the principles and objectives of the plan are as follows: (a) The Project Manager, SMIP, has overall responsibility for planning and implementing all activities under the plan. The Project Manager will guide, supervise and report on progress in the project and will handle land acquisition and economic rehabilitation issues requiring actions and coordination at the central government level. The Project Manager has overall control and management of the project's land acquisition and economic rehabilitation budget. (b) Funds for the land acquisition and economic rehabilitation and social development programs will be provided from budget allocations for the project. The Water Management Division of the project will do the planning, coordination of field implementation, information exchange, internal inspection, and day-to-day monitoring. (c) The Water Management Division, with the assistance of the WUAs, will carry out economic rehabilitation and social development activities within the Project, under the supervision of the Project Manager. The Division will be in charge of organizing the various tasks laid out in the plan, including PAP identification, census and socio-economic ·surveys, dissemination of project information to PAPs, establishment of transparent mechanism of grievance redress, and administration of all matters related to compensation, economic rehabilitation and social development. B. LEGAL FRAMEWORK 14. The primary legal instrument for land acquisition is the Land Acquisition Act (LAA) 2034 (1977). The Act provides for procurement and compensation of land and other property falling under eminent domain whenever required for a public purpose. 15. The basic objectives of LAA 2034 (1977) is generally consistent with World Bank requirements. There are a few gaps in the LAA, but the Land Acquisition Plan includes necessary measures to cover these gaps. The additional measures included in this Land Acquisition Plan ensures that it is fully compatible with World Bank requirements. • 6 of 10 SECTION 3 - ENTITLEMENT POLICY A. ELIGIBILITY CRITERIA 16. Affected persons will be entitled to compensation based on the status of their occupation of the affected areas. Entitlement categories within the project affected areas include absentee landowners, owner-operators, lessees, tenants, or seasonal workers in the agricultural sector. In addition, they might include squatters, non-agricultural workers and those running private commercial establishments. Owners or occupants of any houses -falling within the area to be acquired will be considered SPAFs eligible for resettlement. Major children, over 18 years of age, residing with their parents and whose assets are still part of a joint economic holding shall be eligible for separate rehabilitation benefits but not for compensation. Should any of the resources being adversely affected be owned or managed as common property, all those with an interest in those resources will be entitled to compensation and rehabilitation benefits. B. ECONOMIC REHABILITATION ENTITLEMENTS 16. 17. The entitlement policy is designed to enable PAFs to replace the assets they have lost on account of the project to recover and to improve upon their pre-project living standards within the shortest possible time. In general, the economic rehabilitation package would consist of: (a) provision for replacement assets or its cash equivalent, where replacement is not feasible; (b) rehabilitation grants to compensate for temporary disruption in life and economic activities; (c) either employment or training, capital and enterprise support for income restoration in case of loss of livelihoods; and (d) provision for replacement of community facilities and services for affected communities. • The unit of entitlements for compensation of assets acquired shall be the project affected family· (PAF), consisting of the owner/occupier of the· property being affected and his/her immediate family (spouse, minor children and aged dependents without independent means of livelihood). Adult children shall not be paid separate compensation for joint property holdings if the property has not been transferred to the children. 18. The entitlements are laid out in the Entitlement Matrix (Annex 1) which reflects existing laws and practices within Nepal while adhering to the Bank's resettlement principles and objectives. As per Nepali law, HMGN will establish a CFRM Committee for the project with the participation of the PAFs. The CFRM Committee will determine replacement value for the property ar:id assets to be acquired. 19. As a general rule, PAFs losing agricultural land will be compensated through "land for land" arrangements of equal productive capacity, satisfactory to them. If such land is not available in the vicinity or if the land available is unacceptabl~ to PAFs, compensation in cash, at full replacement value, will be provided to farmers. In addition, PAFs who lose agricultural land will be compensated for the loss of standing crops, fruit trees or other trees at full market value, as provided in the Entitlement Matrix. 20. Rehabilitation measures for SPAFs losing agricultural land will, at a minimum, consist of preferential employment on construction work in the subproject, provision of agricultural inputs and/or livestock to help restore production levels, and additional measures as may be appropriate depending on the severity of adverse impact on the SPAFs. 21. PAFs whose houses are affected by the project will be provided with (a) replacement of residential land of equivalent size (minimum 200 sq. m. in rural areas) as close to the original location as possible, (b) cash compensation reflecting the full replacement value of the structure without 7 of 10 depreciation, and (c) Dislocation Allowance equivalent to two months average agricultural income in the subproject area. If the residential land and/or structure is only partially affected by he project, the project may, if it is acceptable to the PAF, acquire the entire structure with full compensation, as stated above, or provide cash compensation for the portion affected as mutually agreed between the PAF and the project. 22. Lessees/tenants and squatters who have built their own house but do not own the residential land will be assisted in finding an alternate living site, compensated in full for their house structure, provide assistance to rebuild their home, and paid the Dislocation Allowance. Those who do not own the residential premises will be provided with cash compensation at the replacement value for any structure they have created and a cash grant of six months' rental fee and will be assisted in finding alternative accommodations. PAFs will also be provided compensation at full replacement costs, without any depreciation, for and other fixed assets affected in part or in full by the project. 23. In accordance with current practice in Nepal, tenants and lessees will be paid 50 percent of the land compensation as their share for the loss of livelihood due to land acquisition. • 24. In cases where community infrastructure such as schools, factories, water sources, roads, sewage systems, electrical supply, or other community resources such as a woodlot, or pasture is lost, their replacement will be at no cost to the community. C. PEOPLE'S PARTICIPATION 25. The PAFs will participate throughout the various stages of the land acquisition process and economic rehabilitation activities. They will be consulted by the competent authorities and will be invited to participate in public meetings held by the project or by the WUAs. These meetings will be an occasion to discuss project impacts and development needs and potentials and will provide a forum for the PAFs to express opinion and offer their suggestions. 26. The PAFs will be publicly informed by the project of the details of the land acquisition and economic rehabilitation activities. The information made public and provided to each household will include cut-off dates, entitlements, eligibility criterion, modes of compensation, and complaints and grievance redress procedures. D. BASELINE INFORMATION 27. The total command area of SMIP Ill is 15,100 ha, but the final designs of only 1,350 ha pilot area has been completed. In the absence of detailed designs, the details of land acquisition of only the pilot area is available. During the first year of the project, only the land acquisition activities related to the pilot area will be carried out. 28. The project has carried out a Social Assessment of the Stage 111 pilot area covering 1,350 ha. The Social Assessment study consisted of the following components: (a) socio-economic survey; (b) social and stakeholder analysis; and (c) institutional analysis. Similarly the project has also prepared an inventory of land and other assets being acquired under eminent domain. 29. The inventory of land and other assets being acquired by the project in the pilot area shows that the extent of land acquisition in the pilot area is 28.2 ha, which is less than 2.1 percent of the irrigated area. The number of PAFs affected is assessed to be 178, while the number of SPAFs is 4. 8of 10 SECTION 4-IMPLEMENTATION ARRANGEMENT A. SCHEDULE 30. The land acquisition and economic rehabilitation activities will be coordinated with construction schedules. All land acquisition and economic rehabilitation activities arising out of the works to be implemented in a given year will be completed within that year. B. COMPLAINTS AND GRIEVANCES 31. The Department of Irrigation (DOI) will create a Grievance Redress Committee at the systems level to address complaints and grievances pertaining to land acquisition and economic rehabilitation and to preempt all disagreements being referred to the courts. The committee will involve project officers and representatives of the local community affected by the project. Grievances related to any aspect of the project will be handled through negotiations aimed at achieving consensus. 32. Amicable settlement between the PAP and the DOI will be first attempted at the project level. If this first conciliatory attempts fail; the case may be brought by either party to the DOI Central . Office. If no resolution is arrived at, the PAPs or DOI may involve elected representatives at the local and/or national level to attempt conciliation. 33. If the case is not resolved at this level, the case may be submitted by either party to the competent court. C. SUPERVISION AND MONITORING 34. Land acquisition and economic rehabilitation activities in the project will be regularly supervised and monitored by the Project Manager. Internal monitoring will be carried out quarterly. An agency will periodically carry out external monitoring and evaluation of land acquisition and economic rehabilitation. External monitoring will be done by an organization such as an academic, or research institution, an NGO, or an independent consulting firm. 35. Internal monitoring and supervision will: (a) verify that there are no outstanding or unresolved land acquisition issues within the project, and that property valuation and economic rehabilitation has been carried out in accordance with the provisions of the plan. (b) Oversee that all economic rehabilitation measures are implemented, as approved; and (c) Verify that funds for implementing land acquisition and economic rehabilitation activities are provided in a timely manner, are sufficient for the purposes, and are spent in accordance with the provisions of the plan. 36. In addition to verifying the reports generated by internal monitoring, the external monitoring agency will carry out the following tasks: (a) Evaluate the social and economic impact of land acquisition and economic rehabiHtation on the PAFs; (b) 8Verify if the objective of enhancement or, at least restoration of income levels and standards of living of the PAFs has been met; and 9 of 10 (c) Suggest modifications to the land acquisition and economic rehabilitation implem~ntation, where necessary, to achieve the principles and objectives set forth in Section 1-E of the plan. SECTION 5 - COSTS AND BUDGET 37. The final designs for only 1,350 ha of pilot area of the project has been completed till now. It is planned that during the first year of the project, only the land acquisition activities related to the pilot area will be carried out. The land compensation distribution plan for the project is given in Annex 4. 10 of 10 Type of loss/ Impacts Definition of entitlement 1. Agricultural Land 1.1 Land-for-land or replacemnet 1. Landowner . value in cash if land is not available; in all cases of land for land compensation, replacement land will be of equal or greater.productivity than the land acquired. 1.2 Provision of agricultural inputs and/or livestock to all SPAFs; additional measures will depend on severity of impact. 2. Agricultural 2. Fifty percent of the cash Lessee/Tenant compensation for the area acquired which is farmed by the lessee/tenant. II. Permanent improvemnet Cash compensation at on agriculturarl land negotiated market price. Ill. Residential land 1.1 Replacement land of equivalent 1. Owned size, not less than 200 sq m. when entire premise is acquired. ENTITLEMENT MATRIX Definition of entitled Person/unit 1. Landowner: a person with an original Certificate of Title, or a Transfer Certificate of Title in case of registered land, or other evidence of ownership. 2. Agricultural Lessee/Tenant : A person who cultivates land under a lease or share-cropping arrangement. Owner or tenanUlessee who made the investment for the land improvement or structural installation. 1. Owner : a person with a Certificate of Title or proof of owership for the residential land 1 of 3 Application guidelines 1.1 Owners may be compensated in cash if land is not available or acceptable to PAFs, and if rate has been agreed between CFRM Committee and PAFs. PAFs to be exempt from capital gains tax against this payment. All fees and property transfer costs to be paid by promoter. 1.2 Owners losing more than 75%of their land, or whose farm is reduced to an unviable size as a result of acquisition, may ask for the entire land / farm to be acquired in return for replacement land. 2. Value of compensation due to tenant is derived from the full repalcement cost of the land in his possession on the cutoff date. Compensation will be for all assets and structures listed in the census inventory and will be assessed at replacement value without depreciation. 1.1 For isolated cases, land will be provided within the same command. ATTACHMENT 12 Annex-1 Organizations(s) responsible SMIP SMIP SMIP SMIP Type of loss/ Impacts Definition of _ Definition of Application guidelines Organizations(s) entitlement entitled responsible Person/unit 1.2 Proportionate cash 1.2 If 10 or more SPAF houses are to be SMIP compensation when only relocated away form own land, a partial acquisition is necessary resettlement site will be developed and and PAF is not displaced provided with basic infrastructure and services better or equivalent of original premise. 2. Rented 2. Compensation for six months rent. 2. Renting Occupant : a person or 2. The renting occupant will be assisted in SMIP family paying rent for a residental . finding suitable residence. premise IV. Residential Structure Full replacement cost for Owners of the structure, Transportation of all materials which can SMIP residential structure, without whether landowners or tenants be salvaged from previous residence to l depreciation. new location, and Dislocation Allownace equivalent to two months average income. V. Loss of Livelihoods: 1. Alternative location in vicinity with 1. Project Affected Person 1. Permises to be provided to re-establish SMIP equivalent land area to re-establish running a business establishment business. Replacement value for structure 1. Small business business; compensation for loss of on property to be acquired and transportation costs as for other SPAFs. establishment income during transition period, but Compensation for lost income during not less than two months income. transition period, the minimum payable being two moths income. 2. Training, income restoration grant, and 2. Farmer or other worker 2. Rehabilitation and support 2. All affected persons, including job placement or institutional support for SMIP to ensure restoration of income adult children over 18 yrs, losing self employment and micro enterprise his/her previous occupation. establishment. VI. Standing crop Full market value for the crop PAF actually farming the land Project will compensate PAF for the full SMIP whether owner clutivator, value of the crop already planted on the lessee or tenant land being acquired. Type of loss/ Impacts Definition of Definition of Application guidelines Organizations(s) entitlement entitled responsible Person/unit VII. Trees (Perennials) Full market value for timber/ fuelwood PAF owning the fruit, fodder In addition to market value of timber and SMIP and five year's production of fruit and or timber/fuelwood trees fuelwood, for fruit/fodder trees, PAFs will be fodder trees paid market value of five yer's production VIII. Squatters/ Right to habitation Illegal squatters who are Squatters and other occupnats to be SMIP unauthorized users occupying the premises without provided with alternative premise to re- erect legal authority form the owner (s). their homes, and entitled to compensation for structures, transportation and dislocation allowance IX. Common property Continued access to resources All owners/users of common The project will ensure that land SMIP resources owned or managed as property resources acquisition does not adversely affect common property common property. If adversely affected, alternative arrangements will be made to ensure that benefits from common property are subsitituted adequately. 3 of 3 Annex 1 LIST OF THE LAND OWNER UNDER THE SMIP Stage III Phase 1 Pilot Area (Area in Bigha-Katha-Dhur) s. Name of Plot Owner No. 1. Abin Adhikari 2. Ahamari Devi Tharuni 3. Ahiliya Devi Bhagat 4. Alkahani Tharuni 5. Ambika Devi Poudel 6. Ambika Devi Nepal 7 . Anup Sardar 8. Babu Ram Majhi 9. Bachhu Lal Chaudhari 10. Badri Nath Chaudhary 11. Badri Narayan Tharu 12. Badri Nath, Kedar Nath 13. Bahuri Miya 14. Bal Ram Halwai 15. Bechu Biswas 16. Bed Narayan Majhi Tharu 17. Bhabi Lal Gachhedar 18. Bhabni Tharuni 19. Bhagwan Lal Rauniyar VDC */ Hm Hm Hm Hm Hm Hm Hm Hm Hm SB SB Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm SB Dg Dg Hm Hm Plot Total Land No in Pilot Area
NA
NA
Land to Acquire Area Left in Local Local Unit (Percent) 2-19-.7 (93. 2%) 1-5-1 (96. 9%) 1-3-1 (97. 3%)
(0%) 0-9-6 (72. 9%) 0-16-15 (81. 7%) 1-13-13 (98 .2%) 0-7-8 (86. 5%) 3-7-17 (96.9%) 1-16-0 (90. 0%) 1-4-12 (82. 8%) 0-7-10 (92.0%) 2-1-2 (85. 8%) 0-7-19 (79. 9%) 2-7-6 (80. 3%) 1-10-13 (96 .1%) 1-15-0 (76.1%) 0-18-7 (80. 3%) 1-11-18 (98 .5%) 20. Bhagwati Kumari Tharu (38. 3%) 21. Bhagwati Tharuni 22. Bhavani Devi Tharu S. Name of Plot Owner No. 23. Bhola Khadway 24. Bihari Sardar 25. Bijuwa Sardar Batar 26. Bishnu Pd. Niraula 27. Bodh Narayan Rauniyar (96 .2%) 28. Brambha Lal Chaudhary 29. Briju Biswas 30. Budhani Tharuni (83. 0%) 31. Chaiti Tharuni 32. Champawati Tharu (79.9%) 33. Chandra Bdr. Karki 34. Chandra Bihari Karna 35. Chandra Kumar Sardar 36. Chandra Pd. Niraula 37. Charan Sutihar 38. Cheet Narayan Biswas Hm Dg VDC */ Dg Hm Hm Hm Hm Hm Hm SB Hm Hm Hm SB Hm Hm Hm Hm Hm Hm Dg Dg Dg Hm Dg
(84. 2%) 0-4-13 (77. 5%) Continued (Area in Bigha-Katha-Dhur) Plot Total Land Land to Acquire Area Left in Local Local Unit (Percent) No in Pilot Area NA
Hm (79. 2%) 0-8-7 (80. 3%) 0-1-18 (82. 6%) 1-0-0 (91. 5%) 0-0-17 1-1-9 Hm
63 0-14-10 0-0-7 2-7-4 NA Hm
SB
1-13-8 0-0-7 (98. 5%) (76.6%) 0-0-17 0-4-3 2-10-5 (91.0%) 1-15-6 0-3-19 0-17-0 (93. 9%) 0-17-13 (92. 9%) 1-15-7 (91. 6%) 1-19-5 (96.1%) 2-11-3 (81. 5%) 0-3-6 (42.6%) 39. Chhatu Khan Tharu 40. Dahagi Devi Tharuni 41. Dalu Ram Sutihar 42. Darju Biswas 43. Debi Raman Niraula 44. Dhakan Das Bantar 45. Dhangres Tharu S. Name of Plot Owner No. 46. Dhan Kumari Khatiwada (94. 0%) 47. Dhan Raj Rai 48. Digamber Rijal 49. Dilip Kumar Rauniyar 50. Dina Nath Rauniyar 51. Dil Teria Tharuni 52. Dip Narayan Majhi 53. Durga Bahadur Adhikari 54. Fulwati Tharuni
55. Ganga Devi Rijal 56. Ganga Pd Rauniyar 57. Gobind Bdr. Chhetri 58. Gopi Nath Upreti (85. 8%) 59. Gulab Chandra Rauniyar SB Hm Dg Dg Hm Hm Hm SB VDC *I SB Hm Hm Hm Dg Dg SB Hm Dg Hm Dg Dg Dg Hm SB Hm Hm
(41. 2%) 0-2-11 (76.1%) 1-8-12 (95.2%) 0-10-10 (89.7%) 0-14-15 (96 .1%) 0-7-19 (64. 9%) 0-4-8 (55.0%) Continued (Area in Bigha-Katha-Dhur) Plot Total Land Land to Acquire Area Left in Local Local Unit (Percent) No in Pilot Area Hm
NA
Dg
SB
(65. 2%) 0-1-10 (45. 5%) 0-14-10 (99. 0%) 0-10-18 (87. 2%) 0-18-6 (85. 9%) 1-4-0 (96. 0%) 1-8-19 (91.2%) 0-0-17· 0-18- (95. 6%) 0-9-18 (91. 2%) 1-9-7 (74 .4%). 2-11-5 0-3-11 2-7-14 (93.1%) (59. 8%) 60. Hari Chandra Chaudhary 61. Haris Charan Sharma 62. Harka Maya Gurung (81. 3%) 63. Harur Bahadur 64. Hasta Bdr Karki
(75 .4%) 65. Hem Kumari Khatri 66. Hem Narayan Chaudhari 67. Hiranya Kumari Basynet S. Name of Plot Owner No. 68. Hiranya Kumar Poudel 69. Hiranya K. Poudel 70. Hira Prasad Khatiwada
(76. 0%) 71. Hiru Lal Chhaudhary 72. Ibrahim Miya 73. Inerlal Satuihar 74. Ishwarwati Majhi 75. Jagat N. Chhaudhary 76. Jatahi Sardar 77. Jhagaru Majhi Hm SB SB SB Hm Hm Hm Hm SB Hm VDC *I Hm Hm SB Hm Dg Dg Dg SB Hm Hm Hm Hm
SB SB
Dg
SB
0-6-10 0-18-7 0-0-6 0-5-5
(74.6%) 0-17-15 (96.7%) 1-14-3 0-4-9 0-1-2 0-7-10 0-4-7 0-3-3 (42. 0%) (89. 8%) 62 0-2-10 n-2-9 0-1-1 0-2-18 0-1-18 (19.4%) 0-8-0 0-0-4 0-7-16 (97.5%) Continued (Area in Bigha-Katha-Dhur) Plot Total Land Land to Acquire Area Left in Local Local Unit (Percent) No in Pilot Area
Hm NA
NA
(51. 4%) 0-16-10 (86 .4%) (76.2%) 0-5-17 (83. 6%) 1-14-4 (88. 3%) 0-1-16 (48. 0%) 3-0-8 (75.5%) 0-6-11 (97.0%) 3-3-14 (93.8%) 78.·Kadam Lal Sutiyar 79. Kajami Tharuni 80. Kaladhari Tharuni 81. Kalgari Biswas 82. Kali Devi 83. Kali Ram Sardar
84. Kalmati Devi Tharuni 85. Karki Tharuni 86. Karu Majhi Tharu (96.2%) 87. Kedar Nath Upadhyaya 88. Keshav Gelal 89. Khoror Motiyan Tharuni (81. 8%) S. Name of Plot Owner No. 90. Krishna Bdr. Karki 91. Krishna Bdr. Poudel 92. Krishna Kumar Majhi 93. Lal Bir Sardar 94. Laxmi Narayan Tharu 95. Laxmi Prasad Rijal 96. Lekh Kumari Upreti Dg Hm SB Hm Hm Hm Hm Hm Hm SB SB SB Hm SB Hm Hm Hm Hm SB VDC *I Hm Hm Hm Dg Hm Dg Hm SB
Hm
SB
NA
(96 .3%) 0-0-10 (43. 5%) 0-1-0 (87. 0%} 0-17-13 (86. 5%) 0-2-8 (46 .2%) 0-0-14 2-18- (94.9%) 0-12-14 (81. 7%} 0-7-16 (82 .5%) (95. 9%) 0-14-14 2-5-6 (75.5%) 0-11-4 0-0-5 0-2-5 Continued (Area in Bigha-Katha-Dhur) Plot Total Land No in Pilot Area
NA
NA
Land to· Acquire Area Left in Local Local Unit (Percent) 1-19-17 (96.1%) 1-15-13 . (98.8%) 1-15-3 (76.0%) 0-0-4 (57 .1%) 0-7-7 (94.8%} 3-16-0 (76. 0%) 0-15-16 97. Lila Tharuni 98. Om Prasad Neupane 99. Madhav Pd. Upadhyaya 100. Madhukar Sharma 101. Magaru Majhi 102. Maha Prasad Rijal 103. Mahesh Prasad Rijal .......... - ... ·.· ... 104. Makbul Miya 105. Malati Devi Khadka 106. Mangala Devi Rauniyar 107. Man Hari Baral
108. Manju Devi Sapkota 109. Manu Lal Majhi (89 .4%) 110. Manwati Tharuni 111. Mayabati·Devi S. Name of Plot Owner No. 112. Meena Sharma 113. Mina Sharma 114. Min Kumari Khadka SB SB Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm VDC *I Hm Hm Hm
NA
Hm
Hm
i-14-5 (48.1%-) 1-0-8 (88.7%) 1-2-4 (92.5%) 3-5-4 (92.4%) 0-19-16 (79. 2%) 1-18-15 (97.1%-) 0-2-13 (88. 3%) 1-12-14 (82.6%) 0-16-14 (83. 5%) 2-4-9 (98.8%) 0-14-7 (90.5%) 0-0-15 0-10- 0-1-14 0-2-8 (69. 0%) (98 .6%) 0-0-11 0-4-13 1-13-13 (98 .2%) 7-11-19 -(93 .2%) Continued (Area in Bigha-Katha-Dhur) Plot Total Land No in Pilot Area
0-16-5 1-12-5 2-15-5 Land to Acquire 0-0-14 0-0-9 0-2-8 Area Left in Local Local Unit (Percent) 0-15-11 (95. 7%) 1-11-16 (98 .6%) 2-12-17 (95.7%) 115. Mira Kumari Karki Hm 197 1-0-9 0-1-9 0-19-0 (92.9%) 116. Mithila Bhandari Hm 221 1-2-10 0-0-9 1-2-1 (98.0%) 117. Mohammad Suvan SB NA 5-10-0 0-14-0 4-16-0 (87 .3%) 118. Narayan Pd Khatiwada Hm 97 0-10-0 0-0-15 0-9-5 (92.5%) 119. Narendra K. Sardar Hm 12 1-6-18 0-1-5 1-5-13 (95 .4%) 120. Oli Ram Chaudhary Hm 91 0-13-15 0-0-10 0-13-5 (96 .4%) 121. Pabitra Devi Upadhyay Hm 21 0-4-10 0-0-13 0-3-17 (85. 6%) 122. Padam B. Khadka Hm 96 0-18-5 0-10-5 0-14-6 .............. Hm 109 0-9-0 0-2-14 (78. 4%) 123. Padam K. Upadhyaya Hm 97 0-18-5 0-1-2 0-17-3 (94.0%) 124. Palti Tharuni SB 184 0-16-0 0-4-3 0-11-17 (74 .1%) 125. Parma Lal Chaudhary SB NA 2-10-0 0-11-2 1-18-18 (77.8%) 126. Parma Lal Tharu Hm 145 0-14-18 0-0-11 0-14-7 (96. 3%) 127. Phatari Tharuni Hm 132 0-3-11 0-0-16 0-9-14 .............. Hm 104 0-7-0 0-0-1 (91. 9%) 128. Prabhakar Shrestha Hm 1 0-8-5 0-0-17 0-7-8 (89. 7%) 129. Prabhu N. Chaudhary Hm 23 0-1-10 0-1-5 0-0-5 (20.0%) 130. Pradip K. Rauniyar Hm 81 0-0-10 0-0-10 1-5-2 ................ Hm 242 1-6-0 0-0-18 (92. 5%) .... - - - .......... Hm 243 0-0-13 0-0-13 131. Pramod Raj Upadhyaya Hm 87 1-16-17 0-3-1 3-18-2 .................. Hm 88 2-8-0 0-3-14 (92. 0%) 132. Pran Nath Joshi Dg 86 1-19-5 0-2-4 2-15-17 ............. Dg 90 1-4-5 0-5-9 (88. 0%) 133. Puplal Manjhi Dg 387 0-0-19 0-0-19 0-4-5 ........... Dg 461 0-6-0 0-1-15 (61. 2%) 134. Purek Khan Tharu SB 143 1-15-0 0-12-1 1-2-19 (65. 6%) 135. Putan Lal Majhi Dg 226 0-6-0 0-0-19 0-5-1 (84. 2%) 136. Radha Devi Lamichhane Hm 109 1-7-7 0-0-14 1-6-13 - ................... Hm 114 0-4-9 0-4-9 (83. 8%) Continued
·S. Name of Plot Owner No. 137. Rabiya Devi, Dana Lal 138. Rajendra Kumar Batar
(89. 0%) 139. Rajendra Pd Rijal 140. Rajendra Pd Sardar 141. R_ani Kumar Rai 142. Ram Nath Rauniyar 143. Rudra Bahadur Thapa 144. Saligram Gurung 145. Sakuntala Timilsina 146. Sakur Lal Majhi 147. Satan Sardar· 148. Sano Devi Tharuni 149. Saran Kumar Gurung 150. Sarju Sardar Bantar 151. Sarthi Tharuni (95. 0%) 152. Sateswari Tharuni 153. Savitri Devi Sapkota (96. 0%) 154. Shibji Thapa VDC *I SB SB SB SB Dg Hm Hm Hm Hm Hm SB SB Hm Hm Dg Hm SB Hm Hm SB SB Hm Hm (Area in Bigha-Katha-Dhur) Plot Total Land No in Pilot Area
Hm
NA
SB
Hm
0-11-18'
0-5-8 0-1-18
0-3-0 0-19-17 19-16-10 0-5-10 Land to Acquire 0-0-11 0-0-19 0-0-18 0-0-1 Area Left in Local Local Unit (Percent) 4-9-15 (97 .2%) (61. 9%) 0-7-3 (84.1%) 1-8-11 (60 .3%) 0-12-14 (77.7%) 0-2-5 (45. 5%) 2-19-17 (90.2%) 0-4-19 (69. 7%) 0-3-8 (68.0%) 2-12-16 (75. 4%) 1-1-10 (96.0%)- 0-11-12 (92. 8%) 0-18-12 (78 .2%) (41. 7%) 0-0-16 '0-19-1 20-7-18 (99.1%) 155. Shiv Charan Tabdar 156. Shiv Narayan Chaudhary (Area in Bigha-Katha-Dhur) s. Name of Plot Owner No. 157. Shiv N. Gachhedar 158. Shyam Hari Bdr. Poudel 159. Shukdev Sardar 160. Siddhi Lal Joshi 161. Sita Ram Niraula 162. Sitiya Tharuni
163. Soman Tharuni 164. Som Bahadur Magar (75. 5%) 165. Som Prasad Upadhyaya 166. Sunari Devi Chaudhari 167. Sushila Kumari Tharu
(93. 8%) 168. Sushila Tahruni 169. Tanak Das Batar Hm Hm Hm SB SB SB VDC */ SB Hm Hm Hm Hm Hm Hm Hm Hm Hm Hm SB SB SB Hm Dg Hm SB Hm Hm
Plot Total Land No in Pilot Area NA
Hm
SB
NA Hm
Hm
(94.1%-) 1-8-4 (97.2%) Continued Land to Acquire 1-9-0 0-3-0 0-5-9 Area Left in Local Local Unit (Percent) 4-11-0 (75. 8%) 2-2-1 (93.3%) 0-0-3 0-12-9 0-0-19 (88.6%) (91. 8%) 0-2-2 (84. 0%) 0-1-4 0-17- (86 .8%) 0-12-15 (89. 5%) 1-10-4 0-0-14 1-10-6 0-0-11 (96.0%) 0-1-1 0-0-7 0-4-16 0-18-19 (94.8%) 0-1-1 0-15- 0-6-13 (95.0%) 2-4-4 (90 .2%) 170. Tara Bahadur Gurung SB 41 0-4-3 0-0-6 0-6-4 .................. SB 42 0-2-10 0-0-3 171. Thanku Sutiyar SB 132 2-17-0 0-1-16 3-12-7 (95 .2%) ............ SB 151 0-6-15 0-0-15 ............ SB 161 0-12-5 0-1-2 172. Thakan Das Sardar Hm NA 10-0-0 2-3-4 173. Thegendra Pd. Acharya Hm 76 0-6-10 0-2-17 ........... - ....... Hm 93 0-2-16 0-2-11 174. Tilak Ram Gachhedar SB NA 2-10-0 0-11-16 175. Tika Pd Koirala Hm 11 1-9-15 0-0-14 176. Uma Lal Chaudhari SB 36 0-11-10 0-2-1 ................ SB 65 1-8-0 0-2-1 ................. SB 66 0-0-16 0-0-9 177. Umesh Prasad Rijal Hm 59 1-18-8 0-1-2 178. Upendra Rijal Hm 100 0-0-16 0-0-6 179. Urmila Devi Hm 85 0-8-5 0-0-17 180. Uttam Kumar Poudel Hm 97 0-1-14 0-1-3 ................. Hm 108 0-2-12 0-1-2 ................. Hm 216 0-5-0 0-1-8 .............. -.. Hm 10 0-10-18 0-0-18 181. Wakram Majhi Hm 129 0-2-7 0-2-7 182. Yado Devi Chaudhari SB 136 0-10-0 0-1-1 --------- Total area in acquisition: 38-13-12 Note: Under VDC: Hm Dg SB Hattimudha VDC Dangraha VDC Siswani Badhhara VDC Unit: 1.0 Bigha = 20.0 Katha= 20.0 Dhur
i.e. 28.2 ha. (93. 2%) 7-16-16 (78.4%) 0-3-18 (41. 9%) 1-18-4 (76 .4%) 1-9-1 (97 .6%) 1-15-15 (88. 7%) 1-17-6 (97 .1%) 0-0-10 (62. 5%) 0-7-8 (89. 7%) 0-15-13 (77. 5%)
(0%) 0-8-19 (89 .5%) Annex 2 LIST OF THE SERIOUSLY PROJECT AFFECTED FAMILY in SMIP Stage III Phase 1 Pilot Area (Less than 5.0 Katha of land left or 25 percent or more of land in acquisition) (Land Area in Bigha-Katha-Dhur) S. Name of Plot Owner No. Area 1. Bhagwati Kumari Tharu 2. Bhavani Devi Tharu 3. Bijuwa Sardar Batar 4. Budhani Tharuni 5. Cheet Narayan Biswas 6. Chhatu Khan Tharu 7. Dahagi Devi Tharuni 8. Dhangres Tharu 9. Digamber Rijal 10. Gulab Chandra Rauniyar 11. Hari Chandra Chaudhary 12. Harur Bahadur 13. Hem Narayan Chaudhari 14. Hiranya Kumar Poudel 15. Ishwarwati Majhi 16. Kajami Tharuni 17. Kaladhari Tharuni 18. Kali Devi 19. Lal Bir Sardar 20. Maha Prasad Rijal 21. Manu Lal Majhi 22. Pabitra Devi Upadhyay 23. Prabhu N. Chaudhary 24. Puplal Manjhi 25. Rudra Bahadur Thapa 26. Sakuntala Timilsina 27. Sakur Lal Majhi 28. Sarthi Tharuni 29. Sateswari Tharuni 30. Sita Ram Niraula 31. Thegendra Pd. Acharya 32. Upendra Rijal 33. Wakram Majhi Total Land Area of Land in PilotLeft Due toof Land Acquisition Acquired 0-3-0 0-6-0 0-2-6 0-5-0 ·0-7-15
(61. 7%) (22.5%) (17.4%) (17.0%) (57.4%) (58.8%) (23. 9%) (45.0%) (54.5%) (40.2%) (25 .4%) (58.0%) (80. 6%) (48.6%) (52.0%) (56. 5%) (13.0%) (53.8%) (42.9%) (11.7%) (10.6%) (14.4%) (80.0%) (38. 8%) (54.5%) (30 .3%) (32.0%) (5.0%) (58. 3%) (16.0%) (58.1%) (37.5%) (100.0%) Percent No.
SMIP-111 ATTACHMENT 12 Annex-3 RESETTLEMENT IMPACT ON PILOT AREA ( 1350 HA ) Village Development Committee Extent of Land • NO. of PAF No. of Average acquisiti01 Acquisiton SPAF per PAF (ha) Hattimudha voe 13.60 ha 103 2 • 0.132 Siswani Badhara voe 12.24 ha 49 2 0.249 Dangraha voe 3.37 ha 26 0.129 Total 28.21 178 4 S.No.
ANNEX-4 SMIP - Ill PROJECT ESTIMATED COST FOR ATTACHMENT 12 Annex-.4 LAND COMPENSATION AND ECONOMIC REHABILITATION NRs. '000 Description Total Land Acquisition Total Estimated No of. Estimated Command Area ha Replacement Value SPAF Rehabilitation cost NRs NRs Pilot Area 1350 ha 28.2 ha 4000 4 100 Remaining 13750 ha 361.8 ha· 39850 41 1,025 Stage Ill Total 15100.0 ha 390 ha. 43,850 45 1,125 Page I RESETTLEMENT ACTION PLAN AND FRAMEWORK FOR SUNSARI MORANG IRRIGATION PROJECT:· Stage Ill Phase I Executive Summary 1. INTRODUCTION 1.1 Brief Description of the Project 1.2 Definition of PAFs and SPAFs 1.3 Review of Existing Policy 2. BASELINE INFORMATION 2. 1 Project Site 2.2 Social Profile 2.3 Demographic Profile 2.4 Economic Aspects 2.5 Classification of land holding CONTENT 2.6 Information on Employment and Income 2.7 Willingness to Work in the Project 2.8 Interest in Training 3. TYPE OF LOSSES 3.1 Land 3.2 Building or Houses 3.3 Standing crops 3.4 Trees and other Assets 3.5 Loss of Farm Income 3.6 Other Losses 4.0 POLICY OF ENTITLEMENT 4.1 Compensation 4.1.1 Agricultural farm land 4.1.2 Buildings 4.1.3 Fruit, Timber and Bamboo Trees 4.1.4 Assets (Handpumps and Tubewells) 4.2 Rehabilitation Grants 4.3 Access to Employment and Training 5. IMPLEMENTATION PROCEDURES • 5.1 Land Acquisition Process 5.2 Payment of Compensation Amount and Rehabilitation Grants 5.2.1 Payment of Compensation Amount 5.3 Conditions of Eviction 5.4 Grievance Redressal Mechanism 5.5 Monitoring of Delivery and Rehabilitation 5.6 Institutional Set-up ATTACHMENT12 ANNEXC Page
5.7 Action Plan for Implementation 6. BUDGET ESTIMATE Annex 1 and 2. LIST OF TABLES Table No. 1 Age-wise Classification of the PAFs Table No. 2 Education-wise Classification of the PAFs Table No. 3 Occupational Pattern of the PAFs Table No. 4 Total Farm Land of the PAFs Table No. 5 Average Area of Land Acquisition Table No. 6 Entitlement Matrix
Page
EXECUTIVE SUMMARY ATTACHMENT12 ANNEXC 1. Sunsari Morang Irrigation Project (SMIP) in Stage Ill Phase I has envisaged to develop additional 15,100 ha. of command. This Project aims to improve existing drainage and irrigation network by improving a main canal, secondary canals, and constructing tertiary and water courses. • 2. The civil work under the Project are planned to be completed in five years. The detailed design of the 1,350 ha. of Pilot area to be implemented in the first year has been completed and it needs land acquisition of 28.2 hectare to start construction works. 3. The land in acquisition (28.2 hectare) belongs to a total of 182 farm families (out of which 55 are tenants). Hence, they are called the "Project Affected Families" (PAFs) whose acquisition of land and other assets will be duly compensated and assisted in restoring their livelihood to a similar or better standard of living to what they enjoyed prior to the Project. With this major objective and as per OD 4.30 of the World Bank, an attempt is made here to prepare a Resettlement Action Plan (RAP). For this, the SMIP Office conducted a baseline survey at three VDCs with a new set of questionnaire supplied by the Consultant. The RAP will be revised in due course of implementation of the SMIP Stage Ill. 4. The Project site is located in the Biratnagar Distributory Area. The land in acquisition is mostly farm land and there is no house or other construction involved or hand pumps or tube wells except trees. The survey indicates that there is no cases of land-to land replacement and all PAFs are ready to take monetary value for the lost land. 5. The total number of PAPs in the Pilot area are 1,516. The average size of the PAFs are 8.3 persons per household. Among them, 713 persons (above 5 years of age) are literate (with 29.7% females). • 6. The total farm land belonging to 182 PAFs scattered at different places are 297.14 hectare, so, the average farm size per PAF households is 1.63 hectare. The total number of PAFs households with less than 1.63 hectare of farm land are 109 which is 59.9 percent of the total PAFs. The average land in acquisition is 0.155 ha. per household. 7. The cropping intensity for the farm land is 1.78 and the farm income from crops like paddy, wheat, pulses, jute, and vegetable are estimated to be Rs. 92,326/- per hectare per annum. So, the income or loss of farm income from the land to be acquired per household per head is about (3s. 5/- per day. 8. In the Pilot area, there are some bamboo bushes, some trees of timber (sissau), mango and some other fruits. Their exact number and size of timber or stage of fruiting is not known. Therefore, the compensation Will have to be determined by actual verification of the tree age and size and stage of fruiting for fruit trees by a Technical Experts. 9. The baseline information shows that 17 members of the PAFs have some sort of service and 11 members ai-e looking after business. The PAFs are willing to take training, 34 members of the PAFs and SPAFs have shown interest in training like mechanical, carpentry, animal husbandry, modern • and vegetable farming, and irrigation management; and special training to women like knitting and weaving and other income generating activities. So, there will be training provisions as well as per diem during training period.
10. For the farm land acquired, the PAFs will be compensated at a rate fixed by the Compensation, Fixation and Rehabilitation Management Committee (CFRMC) of the. HMG and the compensation price will be fixed nearer to the market value of land and with formal agreement between the buyer and sellers only. 11. All tenants will receive 50 percent of the land compensation paid to the land owner following the rules of the Ministry of Land Administration. In addition, the tenant who loses more than 25 percent of tenancy land are entitled to get a rehabilitation grant equivalent to 50 percent of what they have received. • • 12. In order to replace the loss of farm land, if any PAFs and/or SPAFs purchase farm land in another place within 2 years from the date of receiving compensation, the land registration fees for equal area will be paid by the Project. 13. For actual land taking at least three months formal notice will be given to the PAFs to harvest the crops. Any particular type of crops taking more time e.g. 6 months or more and which need to be destroyed due to early start of the construction of the project, those crops will be compensated according to the prevailing market price to cover the incurred losses·. 14. Compensation for the loss of fruit, timber and bamboo will be provided to the land owners after verification and fixation of price based on the quality of trees as timber, fruiting or non-fruiting, etc. 15. In addition to the payment of compensation, rehabilitation grants will be provided to the affected families particularly to the SPAFs and PAFs for the hardship and losses they will incur. 16. It has been reported that about 80 percent of the SPAFs and PAFs are ready to work in the Project construction work, so, preference must be given to them. for work. 17. In the institutional set-up, a Project Information and Rehabilitation Centre (PIRC) will be formed under the SMIP before the land acquisition process starts. One full-time Resettlement and Rehabilitation Coordinator (RRC) will work as Secretary in the PIRC, who will look after any grievances of the SPAFs and PAFs. The PIRC will work closely with the Water Management and Monitoring and Evaluation Divisions of the SMIP in order to provide training to the PAFs and SPAFs and monitor the progress, seek the employment opportunities, water management, assess farm pmductivity, etc.
1. INTRODUCTION 1.1 Brief Description of the Project Sunsari Morang Irrigation Project (SMIP) is located in Sunsari and Morang districts of Kasi Zone in the Eastern region of Nepal. The Project has- diverted water from the country's biggest river - the Kasi and, originally, envisaged to irrigate 68,000 hectare of land. The IDAinvolvement in the Project· began in order to expand the irrigation facilities and it has been undertaken in stages
. Stage I Project work started in April 1978 and completed in June 1986 and it was worth US $ 30 million to rehabilitate existing works and carry out the Command Area Development (CAD) in an area of 9,750 hectare. Stage II Project was for equivalent to US$ 42.0 million for the rehabilitation and CAD of additional 16,700 ha. of land including construction of facilities to control the siltation problem. This Stage II start~d in November 1988 and completed in July 1994. A supplementary IDA credit equivalent to US$ 19 million was approved in February 1993 under Sunsari Morang Headworks Project in order to provide additional works for the new intake and adequate desilting facilities. At present, Stage Ill Phase I has been envisaged to develop additional 15,100 ha. of command. This Stage is known as Sunsari Morang Irrigation Project - Stage Ill Phase I (SMIP Ill) as a sub- component of Nepal Irrigation Sector Project (NISP). This Project aims to improve existing drainage and irrigation network by improving a main canal, secondary canals, and constructing tertiary and water courses. The Project will benefits directly to about 15,000 families spread in command area of 15,100 hectare of land. During the modernization work, there will be direct employment opportunities to the near-by farmers estimated at 1.7 million person days per annum
. With the irrigation water, the farm productivity will be increased. The construction ofcommand area development work needs to acquire a total of 390 ha. of farm land. The civil work u·nder the Project are planned to be completed in five years. The detailed design of the 1,350 ha. of Pilot area to be implemented in the first year has been completed, and for the following years the detail design will be prepared and submitted to the World Bank for approval. In the first stage work at the Pilot area, it needs land acquisition of 28.2 hectare to construct new sub-secondary, tertiary canal systems. The total land acquisition is 28.2 hectare which belongs to a total of 182 .farm families of the Biratnagar Distributory Area of three Village Development Committees (VDCs) named Dangraha, Hatimuda and Siswani Badahara of Morang District. Hence, they are called the "Project Affected Families" (PAFs) whose acquisition of land and other assets will be duly compensated and assisted in restoring their livelihood to a similar or better standard of living to what they enjoyed prior to the Project. With this major objective and as per OD 4.30 of the World Bank, an attempt is made here to prepare a Resettlement Action Plan (RAP) for the SMIP Ill Pilot Area consisting of Policy Framework and the Acquisition, Compensation and Rehabilitation Plan (ACRP). For this, the SMIP Project Office conducted a baseline survey at three VDCs mentioned above based on a new set of questionnaire
"Sunsari Morang Stage II Irrigation Project: Project Completion Report" Nippon Koei Co., Ltd. December 1994.
Department of Irrigation, "Land Acquisition Plan for SMIP- Ill Sub-Project: Nepal Irrigation Sector Project'' Sunsari Morang Irrigation Project, Ministry of Water Resources, July 3, 1997.
supplied by the Consultant. The RAP will be revised in due course of implementation of the SMIP stage Ill. According to the Land Acquisition Plan (LAP), the PAFs are well aware of the SMIP Project and they are willing to give land for the proposed expansion of the Project. As mentioned in the LAP, the Social Assessment Study
carried out by the Project Office has indicated that near about 80 percent of the farmers have shown a interest to participate and work as laborer during the construction period. On the design of water course tertiary alignment also, 48 Water Users' Group from among the PAFs and the Project officials have made formal agreements. Water Users Association (WUAs) are actively participating in the implementation of the Project. All the farmers within the command area are members of WUAs. After implementation of the improvement program, the water courses, tertiaries and sub-secondaries will be turned over to the WUAs under a Memorandum of Agreement. It- is also reported that after modernization and rehabilitation of irrigation system, about 83 percent of the farmers are found willing to pay water charges. 1.2 Definition .of PAFs and SPAFs i. "Project'' means the Sunsari Morang Irrigation Project Phase Ill (SMIP Ill) as a sub- component of Nepal lrrigation·Sector Project in the Biratnagar Distributory Area, Morang District. ii. "Project Affected Family" (PAF) means a family who losses livelihood or affected by the project due to acquisition of farm land and/or house and/or other immovable property/assets, which although not compulsorily acquired for the project, are nevertheless damaged by the construction activities. iii. "Seriously Project Affected Family" (SPAF) will be considered as those SPAFs who fall at least in one of the following categories: a. total farm land left with 5.0 Katha or less after acquisition; c. tenants who are left with less than 5.0 Katha of land as a result of land acquisition; and; d. PAFs who loose 25 percent or more of total land. iv. "Loss of livelihood" means those PAPs or SPAPs, who will have to change their occupation fully or partially due to acquisition of farm land by the Project. They will have certain resettlement and rahabilitational grants to maintain their loss of livelihood as detailed in the "Entitlment Matrix" especifically training in order to increase their job opportunities outside and inside the Project through the Project consultants and contractors. v. "Formal tenant'' is defined by HMG-law and the land owners are entitled to get only a fixed amount of main crops in a year. The formal tenant bears all cost of the crop inputs including water charges. vi. "Informal tenant" is decided by the land owner on the basis of mutual understanding between them and the crops are shared generally in equal ratio. 1.3 Review of Existing Policy To acquire land or property by the His Majesty's Government of Nepal (HMG/N) for the public works and : follows:
Ibid.
Section 13 of the Act provides regulations relating to the types of compensation to be paid in cash. For this purpose, a Compensation Fixation and Rehabilitation Management Committee (CFRMC) could be constituted. Section 14 of the Act relates to the provision of alternative land in lieu of land acquired as long as the land owner is willing to accept it. Section 27 of the Act allows the HMG/N to acquire land through "direct negotiations" with the owners. So, such land procurement may not need to follow the prescribed legal procedures like in Section 13 by forming CFRMC to fix compensation value. Section 16 of the Act provides regulation to be issued to guide the government agency in the compensation and rehabilitation of the PAFs, while Section 42 enforces the government to implement them. Provisions of relief in the Land Acquisition Act are meant to provide a minimum desirable relief .to the PAFs, these do not in any way prevent the project authorities from taking additional measures to better the livelihood of the PAFs as before. Therefore, the Act opens a provision for the establishment of a Committee for valuation or assessment and compensation called Compensation Fixation and Rehabilitation Management Committee (CFRMC) consisting of the following members: Chief District Officer - Chairman Chief Land Revenue Officer Member Chairman, District Development Committee - Member Senior Divisional Engineer (who will be looking after PAPs and SPAPs activities) - Member Secretary. However, this Act has several inadequacies. In most of cases it is not very specific in valuation and compensation process and. the PAFs are not properly compensated. This Act does not guarantee for the mandatory to compensate according to market price for land acquired for the HMG institutions/projects. It seems that the law is not appropriate enough to extend the social justice to the affected people, so, the PAFs feel like victimized. That is why, the existing Act fail to restore and maintain livelihood of PAFs to similar or better standard to what they enjoyed prior to the project. Therefore, various projects have formulated different policies and rehabilitation measures. In Nepal, those projects are: , a) Marsyangdi Hydro-electric Project; b) Rara National Park started in 1978; c). Kulekhani Hydro-electric Project; d) Kaligandaki Hydro-electric Project; and e) Nepal Multimodal Transit and Trade Facilitation Project. 2. BASELINE INFORMATION 2.1 Project Site The Project site is located in the Biratnagar Distributory Area in the Eastern Nepal. The Pilot area is specifically located at three Village Development Committees (VDCs) named Dangraha, Hatimuda and Siswani Badahara of Morang District. The command area development works require a total of 390 ha. of farm land, out of which 28.2 ha. is in the Pilot area. The land acquisition of 28.2 ha.in the first stage belongs to 182 farm families (for detail see Annex 1), out of which 55 are tenants. The land in acquisition is mostly farm land and there is no house or other construction involve~ or hand
pumps or tube wells except trees. The LAP also states that if a house is found along the alignment of the canal, such alignment will be changed in consultation with the Water Users Association (WUAs). The survey indicates that there is no cases of land-to-land replacement and all PAFs are ready to take monetary value for the lost land. However, if any PAFs want to replace land-to-land, such cases will be dealt by the Project Office and/or through some third agency like real estate agency or NGOs. Besides this, the Pilot project site does not have any infra-structure facilities viz. roads, drains, source of water, etc. or historical or cultural monuments or temples. With the implementation of the Project, there will be no direct environmental impact. However, if there will be any tree cutting, emphasis should be given for replantation of trees in the near-by places as far as possible. .2 Social Profile An analysis of the new baseline data supplied by the Sunsari Morang Irritation Project and the Social Assessment Study revealed that the average age of the land owners are 45.2 years old. By cast structure, there are 'Tharus' - who are local inhabitants, Yadavs, Chaudhary, Musar, Jhagan, Brahmin, Chhetri, etc. According to the Social Assessment Study, about 80 percent are Tharu family followed by 10 percent of Yadav/Mandal; 5 percent of Rai, Limbu, Tamang and Magar; 2.5 percent of Jhagan; 2 percent each of Brahmin/Chhetri and Dhimal; 1.5 percent each of Musar and Satar; and so on. About 10 percent of the total caste group are migrated from hills and from other Terai district. In the Pilot area, there is one registered "Tharu Kalyan Karini Shava" of Tharu's organization to create awareness among their community and abolish conservative thinking so that they could have social development. 2.3 Demographic Profile The total number of PAPs in the Pilot area are 1,516. The average size of the PAFs are 8.3 persons per household, which is slightly higher than the national average of 6.3. In the type of family, about 60.7 percent of the PAFs have joint family system and the rest have own family. Among the PAPs, 1,516 i.e. 48.6 percent are male and the rest are female. In the age-group of 15 to 60 in particular, the ratio of female is more due to male members gone out for job. However, the proportion of children in the age-group of 0-14 is 36.7 percent only which is les~ than the national average of about41 percent as shown by Table No. 1. In the literacy rate at the pilot area, the baseline survey conducted by the Project office shows that 713 persons (above 5 years of age) are literate (i.e. up to Class 2 level formal or informal education) as presented in Table No. 2. Among them, the ratio of literate males are 64.3 percent while the females are 29.7 percent. The education-wise.classification of the PAFs show that 3 males have at least Graduate level of degree while 6 have Intermediate level education followed by 23 with S.L.C. level education and so on. Among the female members, 2 have Intermediate level of education followed by 14 with S.L.C. and so on. On the contrary, 255 males and !;>48 females are illiterate.
Age Grp Male 0-5 123· 6-14 165 15-29 198 30-45 149 46-60 79 Over60 22 Total 736 Percent (48.6) Education Level Literate (Up to Class 2) Class 3-6 Class 7-10 S.L.C. Intermediate Graduate and Above Total 2.4 Economic Aspects Table No.1 Age-wise Classification of the PAPs Percent Female Percent (51.4) Table No. 2 Education;.wise Classification of the PAPs (Above 5 years of age) Male % Female % 260 54.1 117 50.4 108 22.5 57 24.6 81 16.8 • 42 18.1 23 4.8 14 6.0 6 1.3 2 0.9 3 0.6 - - 481 100.0 232 100.0 Total Percent (100.0) Total % The occupational pattern of the PAFs show that 461 males and 442 females are economically active. Among them 393 males and 428 females are engaged in the agricultural sector, so, a total of 821 persons are engaged in this sector i.e. 54.2 percent of the total PAFs and 90.9 percent of the economically active population. It also shows that an average of 1.8 persons from each PAFs family
.,. are working in this sector. The second important sector for employment is as farm laborer or as daily wage earners both for the male and female followed by service and trade as presented in Table No. 3. Sector Table No: 3 Occupational Pattern of the PAPs Male % Female % Total % Agriculture 393 85.3 428 96.8 821 90.8 Service 17 3.7 - - 17 1.9 Business 8 1.7 3 0.7 11 1.2 Farm/Wage Earner 43 9.3 11 2.5 55 6.1 Sub-total 461 100% 442 100% 904 100% House-wife - 82 82 Student 152 137 289 Children (Below 5 years of 123 118 241 age) TOTAL 736 780 1,516 The table also shows that the number of house-wife or as domestic workers are 82 female members, however, in practice they also work in the farm as part-time or seasonal workers. The total number of students are 289, out of which 47.4 percent are girls. The total number of children below the age-group of 5 years are 241, among them boys are 123. • 2.5 Classification of land holding The total farm land belonging to 182 PAFs scattered at different places are 297.14 hectare. Therefore, the average farm size of the PAF households comes out to be 1.63 hectare. The total number of PAFs households with less than 1.63 hectare of farm land are 109 which is 59.9 percent of the total PAFs. On the other hand, 73 PAFs have more than 1.63 hectare of farm land. Among them, the total number of PAFs with 1.631 to 3.0 hectare of farm land are 39 while 13 PAFs have 3.01 to 5.0 hectare of farm land and 11 PAFs have more than 5.01 hectare of farm land as presented in Table No. 4. Thus, the majority of the PAFs are small-sized farmers. The household with more than 25 percent of farm land in acquisition are 23. Among them, 6 households have land size from 0.01 to 0.5 hectare while 16 household have 0.51 to 1.15 hectare and 1 household has 1.16 to 3.0 hectare as presented in the Table below:
Table No. 4 Total Farm Land of the PAFs (Including Ian~ outside the Project area) Land size of the PAFs Number of Household with more than Households Percent 25% of Farm Land Loss due to acquisition ---------- 0.01 - 0.5 Ha. 11 6.0 6 (26.1%) 16 (69.6%) 1 ( 4.3%) 0.51 -1.15 Ha. 79 43.4 1.16 - 3.0 Ha. 68 37.4 3.01 - 5.0 Ha 13 7.1 5.01 - 7.0 Ha. 8 4.4 Above7.0 Ha. =3___ 1~.7~-- Total 182 100.0 23 (100.0%) According to the LAP, the farm land for acquisition is 28.2 hectare belonging to 182 PAF households, among them 55 are tenants. The average land in acquisition by VDCs indicates that Siswani Badhara VDC will have • 0.24 hectare per family while Hattimudha and Dangraha VDCs will have 0.216 and 0.116 hectares respectively (For detail see Table No. 5 and Annex 2 for the list of SPAFs). No. VDCs 1. Hattimudha 2. Siswani Badhara 3. Dangraha Total Table No. 5 Average Area of Land Acquisition (In hectare) Extent of No. of Landin • PAFs Acquisition 14.08 98 9.59 34 4.54 17 28.21 149 No. of Average SPAFs Acquisition per PAF 23 0.116 6 0.240 0.216
33 0.155 Source: LAP and new data collect1on for SMIP Stage Ill Phase 1 Pilot area, 81ratnagar (for detail see Annex 2). For the farm land acquired, the PAFs will be compensated at a rate fixed by the Compensation Fixation and Rehabilitation Management Committee (CFRMC) of the HMG in which the Chairman is the Chief District Officer and members are Chief of Land Revenue Office; Chairman of the District Development Committee; Representatives from District Survey Office, SMIP and the PAFs. However,. the compensation price is fixed nearer to the market value of land and with formal agreement between the buyer and sellers only. The price will be revised at the time of other land acquisition. As mentioned earlier, many of the PAFs are small-sized farmers and the average total farm size is 1.63 hectare, out of which the average land in acquisition is 0.155 only, which is less than 10 percent of the total land. Therefore, more than half of the PAFs will still have enough land to maintain their family with intensive type of farming. For others, there will be certain hardship grants and training opportinities to increase their job opportunities and work at the Project through consultants and contractors.
The ·impact of land acquisition is expected to be distributed widely across the command area reducing the adverse effect on individual farmers. All the PAFs will get benefits due to supply of irrigation water as well as technical advise and training from the SMIP just as currently doing, which ultimately helps to increase farm productivity. About irrigation facilities at present, almost 45 percent of the farm are getting irrigation water, however, it is not distributed evenly. The rest of farm land is depending on rain water for irrigation. According to the baseline information, the major crops grown by the PAFs are paddy, wheat, pulses, jute, and vegetables. In the crops, paddy is cultivated in a total area of 270.39 hectare i.e. 91 percent of the total farm land while wheat is cultivated in 159.86 hectare i.e 53.8 percent, pulses in 36.25 hectare i.e 12.2 percent, jute in 31.20 hectare i.e 10.5 percent and vegetables in 30.31 hectare i.e 10.2 percent. Thus, the cropping intensity for their farm land comes out to be 1.78. In the form of cultivation, the field verification indicates that about 36 percent of farm land is cultivated by tenant farmers whereas 64 percent area is cultivated by landowners. In the Pilot area, there are some bamboo bushes, some trees of timber (sissau), mango and some other fruits. Their exact number and size of timber or stage of fruiting is not known. Therefore, the compensation will have to be determined by actual verification of the tree age and size and stage of fruiting for fruit trees by a Technical Experts from the Department of Forest and Horticulture so that proper valuation could be done. 2.6 Information on Employment and Income As reported by the new baseline information collected, 17 members of the PAFs have some sort of service and 11 members are looking after business. In a query about the skill among the PAF members, one is Teacher, Typist, Carpenter, Textile weaver, trained in Animal husbandry, and Vegetable farmer. In another query about the household income and sufficiency to feed their family for the whole year, 143 families (i.e 78.6 percent) have enough income while 39 families (21.4 percent) have enough for 7 month in an average. For the shortage months, those PAFs are feeding their family by working as laborer or farm laborer or part-time factory/household helpers or working on contract basis on others' farm. 2.7 Willingness to Work in the Project In another query about willingness to work in the Project and/or during the construction work, the new information collected also revealed that 84 percent of the PAFs and SPAFs are willing to work. However, their absolute total number could not be obtained. So, just before the construction activities start, the Project Office will have to inform the PAFs and SPAFs household for the type of available jobs including laborer. The Project Office, accordingly, will have to give priority to the SPAFs and PAFs members for work as per their urgency, skill and capability. 2.8 Interest in Training After the Project land acquisition too, most of the PAFs need not to change their profession as the.size.at land acquisition per PAFs is nominal. However, in a query about willingness to take training, 34 members of the PAFs and SPAFs have shown interest in training like mechanical, carpentry, animal husbandry, modern and vegetable farming,·and irrigation management; and special training
to women like knitting and weaving and other income generating activities. Therefore, the training should be organized by the Project Office with the help and involvement of NGOs. The training programs should be organized as per the 'interest, particularly of SPAFs, and as per the expected market demand for certain skills and services. 3. TYPE OF LOSSES In Stage Ill Phase I and for the Pilot area, 28.2 hectare of farm land is needed to be acquired located at three VDCs named Dangraha, Hatimuda and Siswani Badahara of Morang District. The land belongs to 182 families, out of which 55 are tenants. The average land in acquisition is 0.155 hectare per household. The loss of income and other benefits due to farm land acquisition are as follows: 3.1 Land - The Compensation Fixation and Rehabilitation Management Committee (CFRMC) of the SMIP had acquired land before as per the Land Acquisition Act of 1977. The compensation price paid for farm land in 1993 was a minimum of Rs. 115,500/- per hectare. At present also, the CFRMC fixes a compensation price with full inquiry at the near-by place and by agreement with the PAFs only. The value of land differs according to location like nearness to road, market, inside land, quality of land and their fertility. 3.2 Building or Houses - The information indicated that there are no buildings or houses in the Pilot area Project site and there is no cases of land-for-land replacement. Likewise, there is no tube well or hand pumps installed. If there is any such structures involved, they will be compensated at the market value. 3.3 Standing crops - All PAFs will be informed prior to the construction phase of the project. At least three months formal notice will be given to them to harvest the crops. Any particular type of crops taking more time e.g. 6 months or more than that which need to be destroyed due to the early start of the construction of the project, will be compensated according to the prevailing market price to cover the incurred losses. 3.4 Trees and other Assets - According to the Baseline Survey information, there are some trees like bamboo bushes, timber (sissau), mango and some other fruits. They will have to be compensated by actual verification of their number, age, size, stage of fruiting, etc. and per market price. 3.5 Loss of Farm Income - The cropping intensity at the Project site found out to be 1.78. Therefore, the farm income from crops like paddy, wheat, pulses, jute, and vegetable are estimated to be Rs. 92,326/- per hectare/per annum. Since the average farm size in acquisition is 0.155 hectare, the income or loss of farm income per household averages at Rs. 14,310/-. The loss of income per head due to land acquisition, thus, comes out to be Rs. 4/72 per day i.e. about Rs. 5/- per day. 3.6 Other Losses - Any other losses not covered above will be duly compensated at the market price.. Besides this, rehabilitation grants will be provided to PAFs and SPAFs in accordance with the Entitlement Matrix as presented in Table No. 6. If they will have to fulfill various legal formalities for the valuation of their property, so they will be provided monetary assistance to meet their cost on the due process.
4.0 POLICY OF ENTITLEMENT 4.1 Compensation 4.1.1 Agricultural farm land Most difficult aspect of the whole land acquisition process is the fixing of equitable and just compensation for assets (land and/or buildings) lost. The amounts should be sufficient to enable the PAFs to replace with assets of equivalent market value for the assets acquired. In order to provide the equitable and just compensation, the Department of lrrigation/HMG under the Land Acquisition Act of 1977 should form a Compensation Fixation and Rehabilitation Management Committee (CFRMC) under the Chairmanship of the Chief District Officer with members comprising of Chief of District Land Revenue Office, Chairman of the District Development Committee, Representatives of District Survey Office, SMIP, PAFs, etc. If any PAF asks for land-for-land replacement instead of cash compensation, land may be provided as per availability in near-by areas. In case of any plot of land acquired for SMIP III Phase I and found unused for the particular purpose, such plots will be returned to the original land owners. The estimated compensation value, at present (1997), may averages at Rs. 200,000/- per hectare, which may be up- dated annually. All tenants will receive 50 percent of the land compensation paid to the land owner following the rules of the Ministry of Land Administration. In addition, the tenant who loses more than 25 percent of tenancy land are entitled to get a rehabilitation grant equivalent to 50 percent of what they have received, so, the total compensation comes out to be 75 percent of the total compensation amount. On the contrary, the land owners get 50 percent of the total compensation amount only. In order to replace the loss of farm land, if any PAFs and/or SPAFs purchase farm land in another place within 2 years from the date of receiving compensation, the land registration fees for equal area will be paid by the Project. For actual land taking, all PAFs will be informed prior to the construction phase of the project. At least three months formal notice will be given to them to harvest the crops. Any particular type of crops taking more time e.g. 6 •months or more than that which need to be destroyed due to early start of the construction of the project, those crops will be compensated according to the prevailing market price to cover the incurred losses. 4.1.2 Buildings In the Pilot area at the SMIP III, there is no building or any other structure, however, if there is any they will be compensated at full replacement cost. Besides this, replacement land of equivalent size, not less than 200 sq. mt. in rural areas as close to the original location as possible will be made available. During the construction period, dislocation allowance equivalent to 3 months rent wlll be paid by the Project.
Table 6: Entitlement Matrix Type of Loss/ Impacts Definition of Entitlement Definition of Entitled Person/Unit Agricultural Land: Category A (Land owner cultivator): i. Compensation for land at a rate fixed by CFRMC by agreement with the PAFs and will be paid prior to legal transfer. ii. Land-for-land will be replaced as per availability, if any PAFs ask for it instead of cash compensation. iii. Other Entitlements: a. Payment for standing crops will be done at estimated value of crops, for the crops already planted at the time of 3 months notice. b. Land registration fees for equal area will be paid, if any PAF or SPAF will purchase replacement land within 2 years from the date of receiving the compensation. Category B (Absentee Landowner): Landowner cultivator Organizations Responsible CFRMC and SMIP. i. Compensation for land @ 50% of the land value fixed by the CFRMC or as per law (rule). Absentee As above. ii. Rehabilitation grants as in above of Category A (iii) a and b. Landowner
Type of Loss/ Impacts Definition of Entitlement Category C (Tenant/Lessee): i. Compensation for land @ 50 % of the land value fixed by the CFRMC. ii. Rehabilitation grants as in above of Category A (iii) a and b plus c An additional amount equivalent to 50 % of the compensation amount received by the tenant, if they lose 25 % or more land. Definition of Entitled Person/Unit Tenant Category D (Training to SPAPs and PAPs): i. Rehabilitation grant for training and alternative livelihood: a. Training opportunity in accordance with education, skill potential, interest and market demand. b. Monetary grant @ Rs.100/day during SPAPs and SMIP PAPs the training period of maximum 6 months. Fruit Trees Compensation for fruit production at the market value of annual fruit production multiplied by the number remaining productive years plus the market value of timber from the trees. Other Trees Owner of SMIP and Trees Technical Committee Organizations Responsible As above. i. Compensation for the loss of timber and bamboo based on the actual verification. Owner of SMIP and a ii. Rehabilitation grant for re-plantation of trees e.g. purchase of seedlings, fertilizers, etc. Trees Technical Committee.
Type of Loss/ Impacts Buildings/Huts Definition of Entitlement Definition of· Entitled Person/Unit i. If there is any, cash compensation at full replacement value will be done. House owner ii. Replacement of residential land of equivalent size (minimum 200 sq.mt. in rural areas} at near-by location. iii. Dislocation allowance equivalent to to 3 months rent to compensate during the construction period. Hardship Grant While taking possession of the land for SPAPs construction activities, all SPAP families will receive a hardship grant for 2 months @ Rs.50/day/working adult. 4.1.3 Fruit, Timber and Bamboo Trees Organizations Responsible SMIP and a Technical Committee. SMIP Compensation for the loss of fruit, timber and bamboo which are existing within the acquired land will be provided to the land owners. However, fixation of compensation will be done by an expert team with physical verification and be based on the following criteria: a. For the fruit trees, the valuation will be based on the categorization of trees as seedlings, non-fruiting (i.e. young trees) or fruiting, and the volume (girth) of the trees. For the fruiting trees, the compensation will be made at the market value of annual fruit production multiplied by the number of remaining productive years plus the market value of timber from such tree. b. For timber trees, the valuation will be based on the quality of wood, volume of timber or the age (girth) of the trees and according to norms published by the District Forest Office; and c. For the bamboo, the valuation will be based on the local market value and usefulness of the bamboo.
4.1.4 Assets (Handpumps and Tubewells) The baseline survey has indicated that there is no hand pumps or tube wells in the Pilot area, however, if there is any they will be provided compensation for the replacement and re-installation of the handpumps at the new site. Proper assessment of the cost will be done by a Technical Committee of the Ministry of Works and Transport and/or Ministry of Housing and Physical Planning as early as possible and compensation will be done accordingly. 4.2 Rehabilitation Grants In addition to the payment of compensation, rehabilitation grants shall be provided to all the affected families for the hardship and losses they will incur because of land and/or house acquisition. These grants will comprise the following items: • i. Compensation for the farm land acquired should be paid prior to legal transfer of land. Delay in payment due to dispute or an absentee landlord, the payment should be placed at a commercial bank earning the applicable savings rate of 8.0 percent per annum for the dalayed period. ii. If any PAFs or SPAFs purchase replacement land within 24 months from the date of receiving the compensation, the land registration fee will be provided as grant for equal area of acquisition in order to replace the loss of farm land. iii. Tenant, who loose more than 25 percent of tenanted land will be entitled to receive an additional amount of 50 percent of the amount received by them. So, the total amount to be received by such tenant is equal to 75 percent of the total compensation amount. iv. For the affected family losing its residence, house rent based on the size of the lost house for three months will be provided as a grant. v. Despite compensation paid to the PAFs for any tree cutting, if any of them wants to re-plant trees in another place, they will be provided expenses for seedlings, fertilizers, etc. vi. While taking possession of the land for construction work, all SPAFs will receive a hardship grant for 2 months at the rate of Rs. 50/ per day per working adult male and female members. vii. Provision of training opportunities especially to the SPAF followed by PAF members and monetary grant at Rs.100/- per day during the training period for a maximum of 6 months. 4.3 Access to Employment and Training According to the baseline information, no SPAFs or PAFs will lose their means of livelihood as a result of land acquisition by the Project. Since many of them have smaller sizes of landholding, they are substituting their household income by working somewhere as semi-skilled workers or laborers. For the . present, far:n, workers may have limited options for alternative means of livelihood other than working as laborers in construction activities of the Project. The LAP also reported that about 80 percent of the SPAFs and PAFs are ready to work in the Project construction work. On the contrary, ;the female members have limited education and skills, and due to social and cultural barriers, they are less prone to go out in the job market. For the benefit of the male and female members of SPAFs and PAFs, appropriate training should organized to make them competent in the job market and create self-employment opportunities. As per the interest shown by the SPAFs and PAFs, they are ready to take training in mechanical works, carpentry, animal husbandry, modern and vegetable farming, irrigation management; and special
5. learning and training program to women like adult literacy, knitting and weaving, and other income generating activities. Therefore, those special learning and training, with preference to members from SPAFs followed by PAFs, activities will be provided. In fact, the Monitoring and Evaluation Division (MED) in SMIP was created in January 1993 and this Division is helping to form Water Users Groups (WUGs) and providing training to its members on 4 : - rotation water supply system; - periodic training of JT/JTAs; - modern farming techniques; and - arrangement of study tours in Nepal by Chairpersons of WUGs. Besides this, the MED is providing coordination and cooperation in order to establish a close link between the farmers and other agriculture related agencies such as District Agriculture Development Office, Agricultural Inputs Corporation and Agriculture Development Bank of Nepal. Therefore, the MED/SMIP is working for the betterment of the farmers and such cooperation should be continued to the SPAFs and PAFs of the SMIP Stage 111 Phase I also. While appointing new manpower for the Project works also, priority should be given to at least one family member in the post suitable to his/her qualification. Top most priority should be given to the SPAFs followed by the PAFs. The present baseline survey also found that there are some skilled members of PAFs like teacher, typist, carpenter, textile weaver, animal husbandry, and vegetable farming. Among them, 17 people have some sort ofjob or service. IMPLEMENTATION PROCEDURES A Project Information and Rehabilitation Centre (PIRC) will be formed (as referred in Section 5.6) before the land acquisition process starts. Implementation procedures regarding the land acquisition and payment of compensation are as follows: 5.1 Land Acquisition Process
The PAFs will be notified regarding the proposed project and their land to be acquired by the Project through Chief District Office (COO) and Village Development Committee (VDC) Office. Since the amount of compensation is not fixed, HMG will form a CFRMC with representatives from the PAFs for an acceptable compensation value. Thirty-five days notice will be given to the landowners to present relevant documents such as: land-ownership certificate, land tax receipt, tenants certificate, citizenship certificate, etc. The legal details about the plot number, land sizes and ownership certificate should be verified the record available in the District Land Revenue Office. If there is any discrepancies, the concerned PAFs will have to register an application to the COO, District Land Revenue Office, Land Administration Office and Survey Office for necessary correction. The compensation payment will be made prior to the legal transfer of the land at District Land Revenue Office. The preparation of legal transfer documents should be done by the SMIP Office with certain help from the private law firms, the VDC members and the active members among the PAFs in order to maintain transparency. The Government registration fee needed for the legal transfer should be borne by this office. • Op.Cit. Project Completion Report.
5.2 Payment of Compensation Amount and Rehabilitation Grants 5.2.1 Payment of Compensation Amount period. Before the actual transfer of land deeds, the compensation amount will be paid through cheque only in presence of local community members so that transparency could be maintained, The cheque will be given only to the concerned land holder. With the valid reason if the land owner is unable to come to collect such cheque himself or herself in person, the bank cheque may be given to the duly authorized appointee by the land holder in the presence of concerned Village Development Committee Chairman or member or District Development Committee member. In the event that compensation amount could not be paid due to any of the· following reasons, land will be acquired by depositing the compensation amount in a suspense account in a commercial bank earning the applicable savings rate of 8 percent per annum for the delayed period:. a. dispute on the ownership of the land, b. dispute between the tenants and the land holder in the matter of tenancy rights, and. c. absence of land holder or his/her duly appointed representative within the prescribed time The amount deposited in the suspense account will be surrendered to the actual land owner, if he/she comes in person after the final decision have been made and the ownership finally established. 5.3 Conditions of Eviction After the legal transaction of land transfer have been completed, the land owners will be given three months notice so that the standing crops in land to be acquired could be harvested. In case the standing crops take longer time to harvest, then the proper compensation for the crops will be provided as indicated earlier. So far as the eviction from land is concerned, after harvesting or after paying ·compensation to the standing crops, the acquired land will be kept without any cultivation till the actual construction starts. • 5.4 Grievance Redressal Mechanism In any PAFs or SPAFs have any grievances regarding: ownership, compensation for land or other property, rehabilitation grants, employment or training inquiry, advise, etc. it will be dealt by one full- time Resettlement and Rehabilitation Coordinator (RRC) in the PIRC. If RRC cannot find a satisfactory solution, the complaint will be referred to a Committee chaired by the COO, National Project Coordinator, the SMIP Project Manager, at least two other concerned members of the PAPs and active members among the PAPs. The Committee will review the appeal norr;nally within 21 days of their receipt. If this Committee fails to resolve the problem, the case will be referred to the Ministry of Water Resources. 5.5 Monitoring of Delivery and Rehabilitation The PIRC will keep all the record of the PAFs and SPAFs like name list, land records, copy of certificates, etc. The PIRC provides all relevant information related to the execution of acquisition, compensation and rehabilitation plan to them. The PIRC will also monitor payments such as compensation, payment of rehabilitation grants to the actual SPAFs and PAFs, supervise
replantation of trees, training activities and employment prospects particularly to the SPAF members, and ensure the participation of the local people in the above mentioned activities. The PIRC will work closely with the Water Management and Monitoring and Evaluation Divisions of the SMIP in order to provide training to the PAFs and SPAFs and monitor the progress, seek the employment opportunities, water management, assess farm productivity, etc. The PIRC will also look after the problem faced by the PAFs and SPAFs and extend necessary help and counselling for new enterprises, market opportunities, credit arrangements, etc. The PIRC will also ensure that any hardship or inconvenience caused to the PAFs and SPAFs are promptly attended, redressed or at least mitigated. The monitoring of the Resettlement Action Plan (RAP) will be done by an independent consultant and the report will be submitted to SMIP and the World Bank annually. For this, clear benchmark and indicators will be developed for monitoring and supervision. 5.6 Institutional Set-up The main institution responsible for executing the Project works is the Sunsari Morang Irrigation Project of the Ministry of Water Resources. The RRC working as Secretary of the PIRC will carry out day-to-day activities related to land acquisition, compensation and rehabilitation works. The RRC will also provide information and counselling to PAFs and SPAFs. The PIRC will be headed by the Project Manager of the SMIP. The PIRC will work closely with the MED and WMD and will be supported by technical experts and trained field workers, if necessary. The PIRC/SMIP will work in· close coordination with various district administrative units such as COO, district offices like Land Revenue, Land Administration, Survey, Forestry, Agriculture, Housing, DOC, VDC and so on. For example, the PIRC may need to work closely with the Distr.ict Forest Office to access the valuation of the trees and re-plantation activities. Likewise, the PIRC and the MED may need to work with the District Agriculture Development Office in order to provide technical know-how in vegetable farming and other ways of intensive cultivation. A diagrammatic. picture of the PIRC and its linkages is presented in Diagram 1.
Diagram 1. INSTITUTIONAL SET UP Ministry of Land Administration District Land Revenue Office, District District Land Administration· Offic· Ministry of Forest & Soil Conservation Ministry of SPAFs Water presentative Ministry of Housing and Physical Planning District Housing Office Project Information and Rehabilitation Centre (PIRC) under SMIP istrict PAFs & District Agriculture Development Office Non-Governmental Organization
5.7 Action Plan for Implementation The action plan for implementation ofthe SMIP Stage III Phase I Pilot area has different activities starting from notification for land acquisition process to distribution ofthe compensation and rehabilitation grant to the PAFs and SPAFs at Biratnagar. However, they are given in detail below: S.No. Activities Duration in weeks I 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I. Notify the PAFs to come with legal documents to start X X X X X land acquisition processes 2 Verification of legal documents, execution of legal X X X X transaction at the District Land Revenue Office & distribution ofcompensation money 3 Distribution ofgrants to Tenants X 4 Waiting time for any legal complication in land X X X X X acquired 5 Issue of 3 months notice for eviction from the farm and X X X X X X X X X X X X X harvesting ofthe standing crops 6 Distribution offood/hardship allowance X 7 Physical verification and valuation of the trees, fruit X X trees, bamboo, and standing crops 8 Distribution of compensation for the trees and standing crops -
X 6. BUDGET ESTIMATE The budget estimate for the compensation and rehabilitation of the PAFs and SPAFs, which will be borne by the HMG/Nepal, are as follows: (Rs. on '000) Fiscal Year 1998/99 99/2000 2001/2 A. Land Compensation Cost: 5,740.0 a. Agricultural land 1/ 5,640.0 b. Standing crops 2/ 100.0 8~ Service Charge: 971.6 99.8 99.8 a. Legal transaction cost 3/ 182.0 b. Registration fees 4/ 789.6 c. Land registration fees 5/ 99.8 99.8 C. Rehabilitation Grant: 1,632.5 950.0 950.0 a. Building/structures 6/ 300.0 b. Trees (Estimated) 7/ 300.0 c. Grant to Tenants 8/ 387.5 d. House rent allowances 9/ • 50.0 e. Replanting cost of trees 10/ 100.0 f. Hardship grant 11/ 495.0 g. SPAFs/PAFs' training 12/ 500.0 500.0 h. Monetary grant 13/ 450.0 450.0 Total 8,344.1 1,049.8 1-,049.8
Notes: 1. Compensation to be paid for 28.2 hectare of land at estimate rate of Rs. 200,000/- per hectare.
2. Lump-sum amount is allocated since actual position is not known. 3. At the rate of about Rs. 1,000/- for one transaction paper. 4. At the rate of 14% of total transaction amount (being marginal area of land is located at VDCs). 5. Assuming about 25% of PAFs and SPAFs purchase replacement land within 2 years time i.e. 0.155 ha. x about 46 families x Rs. 28,000/- registration fee per hectare divided for 2 years. 6. Lump-sum provision for building or structures, if there is any. 7. Lump-sum amount is allocated since actual compensation amount will be known only after actual valuation done by a Technical Committee: 8. Grants to about 50 Tenants (who loose more than 25 percent of tenanted land) @ 50% of what they received i.e. 25% of Rs. 200,000/- per hectare x average land acquired (0.155 ha). 9. Lump-sum dislocation amount is allocated since actual position is not known. 10. Assumed lump-sum replantation cost. 11. Hardship grants to 33 SPAFs @ Rs. 50/- per day x about 5 working adults in a family for 60 days. 12. Allocation of lump-sum amount for training for 2nd & 3rd years. 13. Assuming a total of 100 persons will take training @ Rs. 100/- per day for an average of 3 months training during 2nd and 3rd years.
l INTRODUCTION SOCIAL ASSESSMENT OF STAGE- Ill AREA SUNSARI MORANG IRRIGATION PROJECT ATTACHMENT 12 Annex-2 The participation of the beneficiary farmers is the basic need for a successful irrigation project. To assess the existing social organizations and their relationship with the irrigation department, as well as response towards the existing irrigation management a survey has been carried out in Stage Ill area. The Survey has been concentrated in pilot area (1,350 ha) in the Biratnagar Distributary area. The hydrological boundaries of this area has been connected with three VDCs, i.e., Dangraha, Hatimuda, Siswani badahara of Morang Districts. The survey has been focused on the following aspects: (1) Socio-economic survey of land holding/tenure and access to irrigation; (2) Social and stakeholder analysis; and (3) Village institutional analysis. 1. SOCIO-ECONOMIC SURVEY 1.1 Land Tenure Arrangements (landlords, absentee landlords, tenants, range of landholdings) a) Land Holding Distribution by Land Type The average land holding size could be classified mainly into four category i.e. Marginal, Small, Medium and Large farms. Form the Land Registration records of Stage Ill area the average land holding per household is assessed at about 1.08 ha. The average land-holding size varied from 0.36 ha for marginal farmer to 9.6 ha for large farmers. The operated land holding is estimated at 1.74 ha. Marginal farmers who own less than 1.02 ha covers 24% of total cultivated land. In contrary, large farmers who account for 3% hold 30% of total land.
Table 1 Holding and Operation S. No. Farmer Land holding Household Total Average Land holding Classification (Based on NPC) % Area % Own Land Operated Land 1. Marginal Below 1.02 73 24 0.36 0.71 2. Small 1.02 to under 2.38 17 25 1.56 2.30 3. Medium 2.38 to under 5.1 0 7 21 8.47 8.54 4. Large 5.10 and above 3 30 9.59 8.12 Total 100 100 1.08 1.74 So.urce: Feasibility Study Stage-Ill SMIP, Annex-C 1 of 6 ( b) Tenureal Arrangement
Table 2 Tenureal Arrangement S. No. Farmer Land holding •Classification Range (ha) 1. Marginal Below 1.02 2. Small 1.02 to under 2.38 3. Medium. 2.38 to under 5.10 4. Large 5.10 and above Total Household %
Total Average Area % Area rent out
Source: Feasibility Study Stage-Ill SMIP, Annex-C There are three types of Tenureal arrangements are found in the Stage Ill area. The field verification indicates that about 36% of total area is cultivated by tenant farmers whereas 64% area is cultivated by Land Owner. The tenants category and tenancy is based on the following conditions: (a) Formal Tenants: They are defined by the law of the Government. In this case the land owners are entitled to get only a fixed·amount of main crops/year. The Land revenue is paid by the owner, while water charge is the responsibility of the tenant. According to the recent law, tenant has 50% right on the land. The total cost of cultivation is the responsibility of the tenant. (b) Informal Tenant: Such tenants are decided by the land owner on the basis of mutual understanding between them. The tenure is always open at the discredited of the owner. In this case, land revenue and water charge are the responsibility of the owner. Such a tenancy is generally based on the following conditions: (1) Sharing of all crops at 50.50. In this case of 50.50 the product of all crops are shared by the land owner and tenant in a proportion. The cost of seed and fertilizer are borne by the land owner, while other cost are the responsibility of the tenants. In case the tenants spend on seed and fertilizer, he deducts 11% of the total product from the share of the land owner, whose makes a sharing of 39.50. Such tenants are assessed at about 70% of the total tenancy. (2) Land owner to receive a fixed quantity of main crop per hectare per year. In this case, all the costs of cultivation are borne by the tenant. Such tenants range to about 26%. (3) Land owners charge a fixed amount of cash per hectare per year. In this case, all the costs of cultivation are borne by the tenants. 1.2 Access to and Control over Irrigation by Tenure Arrangement In the Stage Ill area, available water is not evenly distributed due_ to damages to canals from place to place and lack of command area development. 15% farmers with the land near the CMG have better access to irrigation facility than those of middle and tail portion of secondary canal. About 30% farmers receive water on the basis of crop situation or on need basis, without fixing any rules or head or tail first. Contrary to this, about 8% of the farmers are found to either provide water 2 of6 continuously or to the farmers of the tail first. 25% of the farmers receive irrigation water based on their land size. About one fourth the farmers feel that water distribution is the responsibility of government personnel, while 13% think it the job of individual farmers themselves. Those 13% are in the opinion of that the beneficiary farmers should jointly discuss, plan and implement the program to bring irrigation water and share the benefit among them. 43% of large farmers in favor of handling of water distribution from the project side. About 10% farmers with more of medium and small are of the opinion that water distribution responsibility should be WUGs, otherwise there is no meaning of farming it. 1.3 Farmers without Irrigation, non farming Occupations and Services The total population is estimated at around 407,100 in the Stage Ill area. The economically active population (EAP) accounted for 35% of the total population and near about 85% of this EAP is involved in Agricultural Sector. Presently, only 40-45% of the farmers in this area receiving irrigation water to irrigate their field and rest 55-66% are suffer from without irrigation. The EAP of this area has been also follow the non-farming occupations and services, where 10% are engaged in factory as of workers. 4.5% are in business (shops. Mill etc.) and only 0.5% are enjoying government services. 2. SOCIAL AND STAKEHOLDER ANALYSIS 2.1 Caste Structure with mapping of all Castes in Village The "Tharus" are the major caste group in the Stage Ill area, near about 80% farmers are belongs to Tharu family. The other caste as of minority groups constitutes Jhagan (2.5%). Musar (1.5%), Satar (1.5%) , Dhimal (2%), Yadav/Mandal (10%), Brahmin/Chettri (2%), Rai, Limbu, Tamang, Magar (5%) and others (0.5%). The proportion of the area covered by different caste group can be divided into three parts i.e., Head. Middle and Tail end area of the canal. The Tharus covers head-reach area of the canal. Similarly. Dhimal and Yadav/Mandal covers middle and tail end area of the canal respectively. However, the other castes group exists in scattered way in all the parts of the area. About 10% of the total castes group are migrated from hills and from other terai districts. 2.2 Relationship between caste/class and Land Tenure access to Irrigation As per concerned the relationship between caste/class and land tenure access to irrigation has not showing any definite character in this area. However, they have informal relationship to share the limited available water for irrigation area on the basis of land size. There has been very nominal caste/class influences found in this area. 2.3 Control Over Irrigation by Individual Farmers, Caste Group or other Power Structure. There are two types of irrigation system found in Stage Ill area. i.e., SMIP's Irrigation System and Farmers traditional irrigation system "Kula" which draws its water from the local "Khola" Gates on the head-regulator of CMC and Secondary Canals is being controlled by the Project and down stream to the Secondary Canals in this area is being controlled by individual farmers'. Nearly 95% of the individual farmers control over irrigation on their need basis. It caused maximum illegal activities of water stealing, canal cutting and fixing of un-authorized outlets. However, in traditional irrigation system, farmers' who may belongs to different caste or power structure have to wait until to come their tum for irrigation. They used to share the available water 3 of 6 according to their land holding size. This type of organization has a formal leadership with having all caste farmers, within that command area. As for example, the farmers of sample area (1350 ha) of Stage Ill have irrigation 433 ha (32%) of their land from such "Kulo" influencing through group decision. So far the concerned over irrigation control by particular caste group or other power structure are less participating (1.2%) to influence the irrigation system. However, the individual farmers are found more responsible to control over irrigation. 2.4 Conflicts over Access to Irrigation between Individual Farmers, Caste Groups or other Stockholders. The occurrence of dispute over access to irrigation found more between individual farmers (95%) rather than caste group or other stockholders. The proportion of the conflicts depends on the adequate water availability in the canal. There is least water related dispute occurred between the farmers of head reach ofthe canal to irrigate their land. The proportion of the disputes in found gradually increasing among the individual farmers of middle and tail portion of the canal. The major causes of conflicts occurrences in the field for irrigation between individual farmers have been found due to lack of co-operation (50%). Lack of understanding (45%}, feeling of Cast/class differences (0.4%) and influence of Political or big landlords. (0.8%}, and lack of education (2%). 3. INSTITUTIONAL ANALYSIS 3.1 Existence, functioning and performance of groups or Leadership responsible for irrigation management The irrigation canal system in the Stage Ill area is in the same conditions as the system was handed over to the Govt. of Nepal in 1975 by the Govt. of India. There were long canals constructed to irrigated the land and Farmers have to constructed field channel for proper water distribution in the field. But due to the lack of farmers participation in irrigation management they are un-able to constructed field channel for effective water distribution. As a result primitive field to field irrigation is prevailing in this area and system benefits only to the limited farmers who are at the head reach and near the outlet. Other farmers of middle and tail end area are always suffer with no less water. In keeping of view to provide proper water distribution to the farmers of irrigated area through their participation, SMIP has organized 251 water users' group (WUGs) in village c~annel level, 13 Water Users' Committee in sub-secondary level and 7 water users' co-ordination committee in secondary level in 1994 on ad hoc basis. However, there is also traditional water users' group exist in the non-irrigated areas. Though the area comes under the command of the canal systems. These groups are utilizing water from "Kula" which draws its water from the local sources ·Khela". •After the establishment of ad hoc groups uptil now no further follow-up have been made by the project. The participation of these groups in irrigation activities is found quite low and are also un- able to act on their duty and responsibility. According to the respondent farmers, near about 90% general farmers are un-aware about the existence of such group in their respective area. However, they are quite familiar with the traditional farmers' managed irrigation system (FMIS} and their involvement in irrigation activities. Similarly, respondent farmers of sample area also reported that there are two types of leadership found in irrigation management. The leadership of traditional irrigation system is more responsible than SMIP's WUGs leadership. More than 80% farmers of this area expressed a willingness to re- organized such groups to actively participate during the period of new construction of the irrigation system. 4 of6 3.2 Recent initiatives (e.g. investments, maintenance works, etc. taken by the village group/leaders) The ad hoc chairperson from the seven distributaries of Stage Ill area is being participated in the monthly meeting of WUCCC in the project. All of them are found quite enthusiastic to participate in irrigation management directly. But presently, due to the damages of canal system and un-even water distribution system they could not participate actively in the field to show their performance among the general farmers. All of them are expressed their readiness to contribute in the rehabilitation of irrigation system in their respective areas. In keeping of view non-activeness of existing group, 50 WUGs have been organized in sample area (1.350 ha) during the feasibility study period of Stage Ill. Watercourse alignment through "walk through" method by chairperson of each WUGs and project officials have been achieved. Near about 80% of the farmers have shown a interest to participate and contribute labor in the construction of watercourses (e.g. box cutting and field channel construction). Formal agreements between the 48 WUGs and project officials were reached on the design of watercourse tertiary alignments. About 83% of their farmers are found willing to pay water charges after the modernization and rehabilitation of irrigation system is completed. 3.3 Caste Based Organizations - formal or informal · Caste is one of the main basis of Rural Social Structure and it is determined by the birth of individual. In rural society of Nepal, most of the castes have their own caste based organizations to control the behavior of their members. They have established their own rules and regulation to manage their society. • As we mentioned above, SMIP Ill area constitutes different caste groups e.g. Tharu, Dhimal, Brahmin, Chettri, Rai, Limbu, Magar, Tamang, Sardar (Satar}, Jhagan, Manda! Yadav etc. Among them predominately the Tahru, Sardar (Satar), Jhagan, Yadav and Rai Limbu have their own caste based organizations. However, only "Tharu Kalyan Karini Shava" of Tharus' organization has so far been registered as a formal organization; others' exist informally. It is found that the main purpose of formal or informal organizations is to create awareness among the respective members for their ethnic development by gradually abolishing conservative thinking which cause hindrance to the social development. 3.4 Relationship/Contacts between Village Level Groups/Leadership and Local Government/or irrigation Department .. Presently, there are 251 WUGs exists in Stage Ill area and are organized in ad hoc basis by SMIP. Some traditional water users' group also found in the village level. The relationship/contacts between the WUGs and the irrigation project has found quite informal and negligible. However, the ad hoc chairperson of different distributaries of this area is being participated monthly meeting of WUCCC at project office. But is found that, after attaining the meeting, non of them are called the meeting of WUC/WUG, in their respective area to communicate the message of discussions. This tends to communication gap between the WUGs and project. 3.5 Leadership Structure and other Village level organizations (formal or informal youth, woman or other such groups) The existence of other formal organization under the leadership of youth also found in this area. There are three youth clubs exists in the sample area of Stage Ill i.e. Jan Jagriti Yuba Club, Samaj Sewa Yuba Club and Ram Janki Mandir Yuba Club. These clubs are been provided the opportunities of sports to the youth of village, library facilities to the villagers and are also 5 of6 organized different cultural a_nd speech programme etc. Such types of social organization under the leadership of youth also found in other area of Stage Ill. However, non of the organization under the leadership of woman found in this area. 3.6 Potential for involving existing Community based (irrigation or other) groups institutions and leadership in building WUAs as per project Strategy and objectives. There are different types of community based groups/institution/leadership exist in the Stage Ill area e.g, water users group, caste group, youth clubs, agricultural co-operatives and VDCs. There is a big potential to involve such groups/institutions/leadership in building WUAs as per project strategy and objectives. As for example, the existing leadership of youth and water users could be developed in the WUGs leadership by involving them in WUA as well as they can be hired in training programmes as a trainer to motivate farmers in irrigation management. However, all the groups, institutions, leaderships has established their own rules, norms, values and regulations for their operation. These groups could be tie up in building WUAs, on the basis of their needs. While involving these groups or leadership in building WUAs, their existing norms and values should be honored and groups should be organized in democratic way. 3.7 Existing Professional NGOs in the project area and their capacity to become involved in carrying, social assessments and WUA capacity building as part of regular project implementation. There are four NGOs existing in the project area. These NGOs directly concerned with public health, education and economic development. All NGOs have their own specified groups in specific area for programme implementation. UNICEF has been launching the programme of drinking water (Tubewell) and Sanitation (toilet) to he villagers since the mid 1980s. Japanese NGO launching the programme of family planning since 1994. FORWARD started to provide adult education to the women since 1995. Tribal society development Forum (Aadibasi Utthan Manch) encouraged the triple groups ( Tharu, bater, Jhagan) for animal husbandry "Bangur Palan" since 1995. The NGOs of this area are capable to assess the village society only in the aspect of their target area. Presently, all these NGOs are working independently and have no interline and co- ordination found among them. Though, the respective VDCs i:ire keeping all information of such activities executed in the village level. The WUAs will be established according to the hydrological boundaries of the system and it will covers big areas. The existing NGOs in the project area could be tie-up their programmes with the WUAs and the farmers organization may develop themselves into multipurpose organizations. 6 of6 ANNEX A ANNEXB ATTACHMENT 13 PROCUREMENT ACTION PLAN FOR SMIP-111 AND FOR DHM INSTITUTIONAL STRENGTHENING SMIP-111 PROJECT DHM Project Elements / Activities 1. CIVILWORKS A. Irrigation & Drainage Development Nl::PAL IRRIGAilON S~CiOR i5ROJECT SUNSARI MORANG IRRIGATION Ill PROJECT PROCUREMENT ACTION PLAN Amount 1997-98 1998-99 1999-2000 2000-01 2001-02 NRs' 000 J-s o-d j-m a-j J-s o-d j-m a-j J-s o-d j-m a-j J-s o-d j-m a-j J-s o-d j-m a-j 1,219,965 1. Prequalification of Contractors • , ~+---+--t--1--t-- - --l--+-+---+--l---t---ll--+-___.-+--+-+-~ 2;.:...~ln:..:.te:..:.r;:..na:..:.f~ro_na~I_T~e_nd_e_r_B~id~d_in-'C,g_~---1----ll-""l••"""'-+---1--•i- ___________ --•--1--1---1--..--t----+--+--< • ~3_.T=e_n_d~er_E~v~a_lu_a_tio_n_a_n_d_A~p~pr_o_va_l___I____1___a 1___1---+-+---+--•--1--i--+---1--+---+--+--•--1--1----1-1 4. Construction 8. Watercourse/Collector Drains 387839 1. Prequalificalion of C~o-nt~ra-c~to_r_s----,-----,- ---1-.-+--t·-+--+--i---- •--- -----· •·-- -·-·■---+-+--+--■--t---+--t----■ 2. National Tender Bidding ---it--+--~.-,- 3. Tender Evaluation and.=A:..-p-p_ro_v~a1~·-··- ---· ·--■--t--+-=+ 111-•- 4:-Consfi'ucfio-n-_-_- _____________ ~--~--------- -_··:·-_- .. ==■-------~-_,~!!!b!!!!l!!••••!!!!l!!!!l~-;;;;;;;~_-;~.;•;;.-;;;;;!!!!1·!!!!1-•-!!!!l!!!!l-lf;;~!!!!l-!!!!!l!~-1 5000 C. Buildings Tendering and c-on-s~tr-u~ct~io_n_____- ___ ·-_·_-··_··-_- - ___- __ ~-----_---~-■-,_-:_-=_J;;;;;-.;•-•••1-+~-_j__J._ _j___j__ D. On farm Watermanagement -··---·· 21740 2. VEHICLE AND SPAR~S ----··----· - - - --- ---- - -- ------ --· ■ --+----1--,-- --- - - - - - I - - - -·-·· • ----- --■--+-t--+-__, A. Vehicles and Motorcycles 5600 1. Tendering and Pr_o_c_u-re_m_e~nt • ·-- -- •11760 8. Spare Parts/Tools 1. Tendering and Procurement C. Bicycles - - - • - ---- ---- - - - - · - - - ---+--1--t--+--- ------ --··-··-· - - -·- - 1.Direct Procurement · - - - - . --------- ----,--i----1--..- - _,.... -.--.,.- ..._•--_-+-j_-_;-_-_r_-_r_~--+--+--•-- -- - -- 3. TECHNICAL ASSISTANCE A. Engineering Services/Consultants___ __,__ 1_62_0_0_01 _ _,_--+-+---■-- ,_---1_ _,__,__ 1. Short Listing • ... ___ ____ . _ ■ • _....... ____ ···- ___ .... __ ~ :· ~:: ~::=~-= -·-- ·_··-_--_1 -- __ ----1--•-+---+--1--• _2. Invitation of Proposal __ _ ______._ .... ---■--+--•-·-·· ... _________ -····· ··-···· _3. Evaluation and Contract Agreement __________ ■- __, ·-··-·· -·-■-+--+--+---11---,f----+---+--■--·- __________ B. PBME Survey _____________________ 4_5 __ 00_1 _--1__.,,.-_, 1_ --·!--+----ff----■-·- - - - --- - ---- - --■--+-·!-- . --------· - · - - · · 4. TRAINING lnstitunronalDevl_Water Managem~~t______ .. 12170 5. .GENERAL ADMINISTRATION 24100 - - - - - - - - - - - - - - - - - - - - - - --- . - Sheet 1of 2 TABLE 1 Remarks 6. A.[~A~N□ -A-CQ~U~1-s1-r,-o·N~- .... ·-----··-···--· ·····- _.'.!:43~8~50~-"""-t·-~""""""t"""~~""""""l""""""'l"""'"""l"'~""""""~~"""'t~""""""t"""~~lllllllllllll""""""'l"""'~"""'-1 B. ECONOMIC_R_E_H_A_BILITATION FOR PAF _..:.·__:1_::12::.:5'._f-.....--■1--■--t---■1--■-111111■-■1--■----■--t----■----+--------I-------I 1 of 2 1. ' ' NEPAL IRRIGATION SECTOR PROJECT SMIP-111 PROJECT PROCUREMENT MODE Project Elements Procurement Method ICB NCB Others NA Civil Works A IRD Development 1,219,965 - - - B. Water course/collector drains - 299,088 - 88,751 . C. Buildings - 5,000 - - D. On Farm-water Management 21,740 - - - Sub-Total 1,241,705 304,088 88,751 Vehicles and spares A Vehicles and Motorcycles 5,600 - - - B. By-cycles - - 300 - C: Spares 11,760 - - - Sub-Total 17,360 300 Technical Assistance A Engineering Services/ Consultant 162,000 - - - B. PBME survey - 4,500 - - Sub-Total 162,000 4,500 Training Institutional Dev/water Management - - 12,170 - General Administration - - 24,100 - A. Land Acquisition - - 43,850 - B. Economic Rehabilitation - - 1,125 - TOTAL 1,421,065' 308,588 81,545 88,751 ATTACHMENT 13 Annex A NRs. '000 Total Cost
Sheet 2 of 2 TABLE 2 Remarks S.N. NEPAL IRRIGATION SECTOR PROJECT Hydrological Studies Including Basin Planning Procurement Action Plan for ICB for · Hydrological and Meteorological Equipments (Package 1) Activities Dec Jan Feb Mar 1997 1998 1998 1998 1 Short list preparation 1,~~1!\ ~"!1t;_~:\.¾t1¥if':};:i,::~ 2 Approval of short list by HMG/N f:y:•;;:$j! 3 Concurrence by IDA l~sZl 4 Preparation of invitation document and eval_uation criteria ,. ,,,,,, ,,,,. \S,:. ::: ·•:-::1 5 Invitation of technical and financial proposal . ,,,.,,,.,,..,., 'ft:,?h\;;;L.;,J:;,!<Ti~I 6 Evaluation of proposal 7 Approval of proposal by HMG/N 8 Concurrence by IDA 9 Contract award 10 Delivery of the equipment Apr May Jun 1998 1998 1998 ~ ~ ::f:.:.ililll i:.3.2c.,.,,,..,J ·,> ATTACHMENT 13 Annex- B HYDROLOGICAL STUDIES AND BASIN PLANNING PROCUREMENT PACKAGE AND PLAN Packages 1 to 3 are planned for procuring the equipment and vehicles, the fourth package is for executing the civil works and the fifth is for Consultancy services. PACKAGE NO 1 Description American Current Meter. l Quanti j Unit i ty i Total Amount - Price Type 5 I sets j 1,000,000 j ··~~~~~rn:y~=el ·······································································i············2·6··! ::!:i······:(i56·:555··i Automatic Water Le.vel Recorder 1 101 sets [ 2,500,000 1 ................................................................ u ...........••••••••••••••••••••••••••••••••••••••••••••••••+•••••••••••••••••••+••••••••••••••••••••••••••••••••••..••••--••••••I Recording Raingauges i 30 i sets i 3,000,000 i Sediment Sampler. • • - Depth Integrating (Wading Type) 10 sets 400,000 - Depth Integrating (Hand Line Type) 5 sets 250,000 - Depth Integrating (Cable Suspended) 10 sets 1,000,000 - Bed Load Sampler (Wading Type) 10 sets 350,000 - Bed Load Sampler (Hand Line type) 10 sets 400,000 - Bed Load Sampler (Cable.suspended) 10 . sets , 1,000,000 j Sediment Lab. equipment: i i ; i - Electronic Balance I 4 I sets l 1,400,000 l - Electronic Oven I 4 ! sets ! 400,000 ! - Laboratory apparatus I LS. l L.S. I 200,000 I Equipment for Agro-meteorological stations T 6 T sets [ 6,000,000 \ ..!~.~~!....................................................___ T T 121,aoo,000 I Spare parts and accessories ---············l...············L.··4,616,000_j Total for Package 1 i i 26,416,000 ; PACKAGE NO2 Description Quantity Unit Total Amount Indian Current Meter. - Price Type 35 sets 1,225,000 - Pygmy Type 20 sets 500,000 - Spare parts and accessories LS. ___ 345,000 OrdinaryRaingauges i 160. sets i 1,280,000 i .. ........................--····················•+·············· --~---------- --~----·-······ .• Sub Total 3,350,000 - Motor bikes 6 sets 450,000 - Bicycles 20 70,000 Sub Total 520,000 Surveying equipment and Computers - Computers, Printers and accessories 4 sets 1,200,000 - Surveying equipment -Total Station (EDM+ Theodolite) 1 sets 800,000 - Levelling Instrument 2 sets 400,000 Spare parts and accessories 20% . 480,000 I .......................................................................................................................................................~ ..................................... Sub Total 2,880,000 i Procurement Plan ICB/LIB Procurement Plan Total for Package 2 6,750,000 National Shaping 1 of 3 PACKAGE NO 3 Description Quantity Unit Total Amount Procurement Plan Vehicles with spare parts: 4 sets 5,000,000 NCB - 4WD Field Pickups Total for Package 3 5,000,000 Civil Works PACKAGE NO4 Description i Quantity i Unit : Total : Procurement i i i Amount i Plan •••••••••••••••••••••••••••••••••••••••..•--•••••••••••••••••••••••••••••n•••H••n••••••••••••••••••••••••••••••~••••noooooooo••••••••••: ••••••••••••••..••••••••+••••••••••••••••••••••••••••••• ■i•••••••••••••••••••••..••••••••••••• Establishment and Rehabilitation of i Hydro/Met Stations: I Site selection for Stream Gauging Stations 54 \ Rehabilitation of Stream Gauging Stations 38 ' Establishment of Stream Gauging Stations 54 Establishment of Ordinary Rain Gauges 160 Establishment of Recording Rain Gauges 30 Rehabilitation of Meteorological Stations 6 Establishment of Crest Stage Gauges 92 Establishment of Staff Gauges in FMIS 200 Total for Package 4 Cunsultancy Services PACKAGE NO 5 Nos Nos Nos Nos Nos Nos Nos Nos Description ! Quantity I Unit ! Total i Procurement l I I Amount l Plan Cunsultancy Services: • f Flow measurement • 1 Job I Slope Area measurement 1 Job i Establishment of database, specific data 1 Job I analysis, processing and interpretation I Primary data· processing 1 Job I Basinwise assessment of water availability 1 Job l Total for Package 5 133,830,500 ICB 2 of3 S.No Description 1 Civil Works NEPAL IRRIGATION SECTOR PROJECT INSTITUTIONAL STRENGTHENING (DHM) PROCUREMENT ARRANGEMENT (Nrs. '000) ICB LCB Others 78240 2 Equipment, vehicles and materials 38096 70 3 Consultancy Services 133830.5 4 Training 8160 5 Salaries 9586.8 6 0 & M works 6782 Total • 3 of3 N.A Total PROCUREMENT ACTION PLAN - CONSULTANCY SERVICES CONSULTANCY SERVICES TO DOI CONSULTANCY SERVICES TO SMIP-111 PROJECT CONSULTANCY SERVICES TO DHM S.No. 1. 2. 3. '4. Procurement Time Bound Action Plan For TA Consulting Services to DOI for NISP Implementation Activities Jul Aug Sept Oct Nov Dec Short List Preparation Approval of Short List by HMG/N and Concurrence by IDA Preparation of Invitation Document and Evaluation Criteria Invitation of Proposal Evaluation of Technical Proposal Approval of HMG/N • Concurrence by IDA Negotiation on Financial Proposal - Contract Award Consultant Mobilize Note: Consultant Mobilization from 15th January 1998 Jan Feb Mar S.No. Activities 1. Short List Preparation NEPAL IRRIGATION SECTOR PROJECT SMIP-111 Procurement Time Bound Action Plan For TA Consulting Services to SMIP - Ill Project Jul Aug Sept Oct Nov 2. Approval of Short List by Board (SMIPB) 3. Concurrence by IDA . 4. Preparation of Invitation Document and Evaluation Criteria 5. Invitation of Proposal 6. Evaluation of Technical Proposal 7. Approval of HMO/N 8. Concurrence by IDA 9. Negotiation on Financial proposal 10. Contract Award 11. Consultant Mobilize Note: Consultant Mobilization from 1st January 1998 ATTACHMENT 14 (B) Dec Jan Feb Mar NEPAL IRRIGATION SECTOR PROJECT Hydrological Studies Including Basin Planning Procurement Action Plan for ICB TA Consulting Services to OHM S.N. Activities Dec Jan Feb Mar Apr 1997 1998 1998 1998 1998 1 Short list preparation 2 Approval of short list by HMG/N ~ 3 Concurrence by IDA ~ 4 Preparation of invitation document and evaluation criteria :"Ah-f,i'•" ,--,,- ,,,.,_ 5 Invitation of proposal i::iu-:,:;:' ;,-0-:,,;-:,-,c-G:1 6 Evaluation of technical proposal ~ 7 Approval of technical proposal by HMG/N 8 Concurrence by IDA 9 Negotiation ori finical proposal 10 Contract award ATTACHMENT 14 Annex-C May Jun 1998 1998 ~ l'Y::c,,,-,,c ~ ,, ~ 1.1 Objectives of the Project 1 1.2 Project Components and Sub-components 1.3 Implementing Agencies including the Relationship between the Main Agency & Participating Agencies 1.4 Sources of Project Financing 1.5 Fund Flow Path Ill. THE FINANCIAL MANAGEMENT PLAN 2.1 Financial Management Plan under the Project 2.2 Role of Project Coordination Office 2.3 Requirement of Accounting Staff 2.4 TOR for the Accounting Staff of PCO/PCU 2.5 TOR for Accounts Officer of RID/RAD 2.6 Functions of the Accounts Unit of PCO/PCU 2.7 Training for Accounting Staff • 2.8 Provision of Computer 2.9 PCO's Coordination with Other Line Agencies and Cost Centers 2.9.1 Coordination with other Line Agencies 2.9.2 Coordination with _Cost Centers and RID/RAD 2.10 Supervision and Monitoring Role of PCO/PCU 2.11 Number of Signatories to Withdraw Funds from the Credit Account . 2.12 Operation of the Special Account 2.13 Format of Project Account 2.14 Coordination Mechanism with the FCGO and AGO ATTACHMENT 15 Page No.
19 •
ATTACHMENT 15 FINANCIAL MANAGEMENT PLAN I. OVERVIEW OF THE PROJECT 1.1 Objectives of the Project: The overall objectives of Nepal Irrigation Sector Project (NISP) are to improve the productivity- and sustainability of Nepal's water resource development and to increase the agriculture production and income of the farming community. The development objectives of NISP are: i. To assist the Government of Nepal in developing a comprehensive Water Resources Strategy, ii. To improve and expand viable private and public irrigation schemes on about 59,600 ha. of·land, iii. To strengthen the capacity of public and private sector institutions in planning and implementing the sustainable use of water resources. 1.2 Project Components and Sub-components: The components, sub-components of the Project including the agencies responsible for executing/implementing as well as expenditure categories involved in each case are as follows: ' Component/ Sub-component i. Formulation of Water Resources Strategy and Development of Consolidated Policy ii. Institutional Support to NWPU B. IRRIGATION SECTOR IMPROVEMENT & DEVELOPMENT i. Rehabilitation, Improvement and Development of Small and Medium Scale Farmer- Owned and Managed Irrigation Schemes (FMIS) ii. System Improvement and Turnover to Farmers of Public Responsible Executing / Implementing Agency MINISTRY OF WATER RESOURCES (MOWR) National Water Planning Unit (NWPU) NWPU DEPARTMENT OF IRRIGATION (DOI) Project Coordinator Office (PCO), DOI, Regional Irrigation Directorates (RIDs), District Irrigation Offices (DIOs) and Groundwater Field Office (GWFO) 1 of20 Expenditure Categories Consultants, Training & Studies - Goods - Incremental Operating Cost - Goods Incremental Operating Cost - Civil Works - Consultants, Training & Studies - Goods - Incremental Operating Cost Irrigation System (a) Improvement, Rehabilitation SMIP Ill Board, - Civil Works and Turnover of Sunsari Project Office - Consultants, Training Morang Irrigation Project & Studies Phase Ill (SMIP Ill) - Goods - Incremental Operating Cost (b) Full or Partial Turnover of RIDs, DIOs & Groundwater - Civil Works Small and Medium Public Field Office (GWFOs) - Consultants, Training Irrigation systems & Studies - Goods - Incremental Operating Cost iii. Infrastructure Support SMIP Ill Board, RIDs, DIOs - Goods - Development for FMIS and - Incremental TO Schemes & Groundwater Field Office Operating Cost (GWFOs) C. INSTITUTIONAL STRENGTHENING i. Strengthening of the Department of Irrigation - Consultants, Training Department of Irrigation & Studies (DOI) - Goods ii. Strengthening of the - Consultants, Training Department of Agriculture Department of Agriculture & Studies (DOA) - Goods iii. Stren·gthening of the - Consultants, Training Department of Hydrology Department of Hydrology & & Studies and Meteorology (OHM) Meteorology (OHM) - Goods iv. Strengthening of the - Consultants, Training Private Sector Organizations Department of Irrigation & Studies (DOI) - Goods 1.3 Implementing Agencies including the Relationship between the Main Agency & Participating Agencies: The DOI, DOA, OHM and MOWR are the principal agencies to implement NISP. The DIOs and Ground Water Field Offices under DOI, District Agriculture Development Offices under DOA and Basin Offices under OHM located within the project areas are the units responsible for the implementation of the project activities. As a Co-Project, SMIP Ill is responsible for the execution of this separate component of the Project. A separate Special Account will be opened for this Co-Project. It will make its own withdrawal claims with the World Bank. 2 of20 The remaining components/sub-components of the NISP will share a single Special Accounts operated by the Project Co-ordinating Office (PCO) established under the DOI. The agencies representing these agencies will submit relevant statements and supporting documentation to enable the PCO to withdraw funds from the Special Account and make application to the World Bank for reimbursement of the funds spent or replenishment of the Special Account. The Department of Irrigation is the main agency to execute the project. The MOA, DOA, MST, DH & Mare participating agencies. Other agencies involved in the Project is MOWR. Project Central Coordination Committee (PCCC): A PCCC would be set-up under the chairmanship of the Secretary of the Ministry of MOWR with representatives from NPC, MOA, MOF, MOPE, MST, FCGO, DGs of DOI, OHM, DOA The DG/DO1 will be the member secretary of the committee. This committee will act as a liaise~ between the project executing agencies and relevant government agencies to ensure smooth execution of the project activities. It will also coordinate inter-ministerial and inter-departmental project activities relating to policy, budget and major procurement issues. Agriculture and Irrigation Co-ordination Committee (AICC): In order to provide impetus to NISP, an AICC composed of Director General (DG) of DOI and DOA as members has been set up. The committee would be chaired by the two DGs in their respective offices alternatively. The AICC would serve as a common platform to interact, draw conclusions, solve problems and accordingly guide their own organizations to co-operate in this joint undertaking. Project Implementation Committee (PIC): For implementing the project components, a PIC would be set up under the chairmanship of DG of DOI with members consisting of the DDGs of the concerned divisions of the implementing departments along with representatives from Agriculture Development Bank (ADBN) and Agriculture Input Corporation (AIC). The Project Coordinator (PC) of NISP·will also function as the secretary of this committee. The committee will be responsible for assuring inter-departmental regional offices coordination on matters • related to budget preparation, disbursement, compilation, progress reporting and other project management related matters. . Project Co-ordination Office (PCO): To assist the PIC, the DOI would establish a Project Co-ordination Office (PCO) at the center. This office will be headed by a Project Coordinator (PC). Similarly· PCUs headed by a Project Coordinating Officer would also be established in other departments (OHM & DOA). The PC will be responsible for compiling all the accounts of expenditures, withdrawals, progress report, audit-reports of all the components implemented by DOI. The SMIP-111 as Co-Project will maintain its accounts separately and will be responsible for timely progress reports, audit reports, withdrawals, etc. on its own. The Project Manager of SMIP will function as PCO of this Co-Project. • Similarly, PCUs of OHM and DOA would maintain accounts of disbursements of their respective components and compile timely progress reports. Project Implementation Unit (PIU): A PIU would be established in each of the three Western regions under the coordinationship of the Regional Irrigation Director (RID) who is designated as Project. Manager of NISP for the region. The other members of this unit will include Regional Agriculture Director (RAD), the Director of NPC (Regional Office), the Regional Controller of ADBN and representative of OHM in the region. The PIU will also function as Regional Appraisal and Approval Committee (RAAC). The RAAC will be· responsible for the appraisal of Sub-.Projects that have been forwarded by the DIOs/GWFOs and scrutinized by the Mobile Irrigation Team. 3 of20 1.4 Sources of Project Financing: Various financing sources involved in the Project and the summary of the respective share of each source in the Project cost will be in accordance to the PAD and DCA. 1.5 Fund Flow Path: HMG/N, through District Treasury Office (DTCO), releases funds to meet its own share as well as IDA's share of cost in the sub-projects/cost centers. The process of withdrawing IDA's share of cost funded initially from HMG/N's source starts with the spending of money by project units in carrying out project activities. In order to reimburse the expenditures incurred by project units, the PCO/PCU collects statement of expenditure from cost centers through RID/RADs. On the basis of requests made by different PCO/PCU, the PCO transfers IDA's share of eligible expenditure to HMG/N's treasury from the Special Account. In cas~ the Special Account balance is not sufficient for the purpose, a request for transfer to HMG/N's treasury will be made by the PCO directly to the World Bank. However, such an application can be forwarded to the Bank only if the size of the application is up to the limit of threshold prescribed by the Bank. In the case of payment to be made to the suppliers, consultants or contractors, direct payment procedure is applied. Under this procedure, payment is either made from the Special Account or a request is made to · the World Bank if the balance in the Special Account is not adequate for the purpose. For amounts utilized from the Special Account either for reimbursement or direct payment, the PCO makes a request to the World Bank for the replenishment of the fund so utilized. The funds flow path is depicted in the following Exhibit-1. 4 of20 Exhibit-1 SOURCE OF FINANCING & FUND FLOW PATHS IN NISP Initial Deposit/Replenishment Special Account /. Request for···... •••.._Fund Transfe!-/ NISP-PCO (PC) World Bank Reimbursement _./WIA for Replenishment, Direct\ ••..._Payments & Reimbursements ./ _.·····Disbursement···•... •.. Voucher _: Expenditure Statements PCU DOA,DHM,SMIP III -<·Expenditure Statement~---,_: •.. ..-· (·Expenditure Statement~·-••, ·.. ' .-· Beneficiary Farmers __ ...- Cost Center Contribution in Cash/Labor 5 of20 Fund Released HMG/N Central Treasury DTCO II. THE FINANCIAL MANAGEMENT PLAN 2.1 Financial Management Plan under the Project: Organizational Set-up: From the viewpoint of organizational hierarchies involved, there are three levels actively involved in the financial management system of NISP. The authority of project execution flows directly from the department to the PCO, regional directorates and cost centers (district offices). In the matter of coordination of project activities especially with respect to the Project's relation with the IDA, the PCO, DOI and SMIP Ill will be the focal point. The RIDs and RADs have the role of a cost center in the execution of budget allotted to them for the implementation of different project activities. They also have a role in the monitoring and supervision and initial compilation of regular and special reports of cost centers under them. As a Co-Project, the SMIP Ill will act both as a cost center and a Project Coordination Unit. Under the NISP, one Special Account and two separate special sub-account will be established. The first of these account will be in the name and use of SMIP Ill. The second Special Account will be opened in the name of PCO, DOI and jointly shared by agencies representing the remaining components/sub-components of the Project. For the purpose of administration of the joint Special Account and to maintain the overall loan account, the PCO under the DOI will act as the Project Coordinating Office headed by a PC. Components of Financial Management System: Under the Project, the financial management system can be observed in terms of a cycle starting with preparation of budget and ending with the completion of auditing and submission of the Project Account to IDA. The following activities comprise components of th.e overall financial management system of the Project: A. Budgeting: i. The PC and PCUs of the respective departments compile the annual budget for the sub-projects and cost centers under it. The Project Central Co-ordination Committee reviews the· budget so prepared and submitted by different PCO/PCUs. ii. Once the annual budget is approved, the respective departments send authorization and budget allocation statements to different cost centers/project units under it. iii. Based on the annual work plan and authorization, the concerned DTCO releases fund to the cost centers/project units. 8. Accounting: i. At the beginning of the project execution, two separate Special Accounts will be opened in the name of the PCO of DOI and SMIP Ill. This Account facilitates in the quick reimbursement of IDA's share of project cost to HMG/N's central treasury. ii. The IDA makes initial deposit of the Special Account fund. This fund is utilized for reimbursing or making direct payment of eligible IDA's share of cost in the project expenditure. iii. The cost centers including the RIDs and RADs and the PCO/PCUs spend money in the implementation of project activities within the limit of annual work plan and budget authorization. iv. These cost centers maintain books of accounts in respect of funds spent by them in project activities. 6 of20 v. The respective PCO/PCUs also maintain the accounts in respect of the funds utilized by them from the Special Account. C. Reporting: i. The cost centers (district offices) will prepare regular and special expenditure reports and other related documents for submission to the concerned PCO/PCU through their regional offices, if any. ii. The RIDs and RADs will make an initial compilation of the special expenditure reports of cost centers and the one relating to its own expenditure and forward the same to the concerned PCO/PCU. iii. The PCO/PCU compiles special expenditure reports forwarded by RID/RADs and prepare application for withdrawal for submission to the World Bank. iv. Based on the expenditure reports submitted by the cost centers through regional offices, the PCO/PCUs compile financial statements of cost centers under it and make a consolidated annual financial statement. v. The consolidated annual financial statement is submitted to Auditor General's Office to facilitate carrying out of the statutory audit. vi. The PCO/PCU prepa"res un-audited and audited Project Accounts and submit it to the World Bank within the time stipulated in the Development Credit Agreement. Expenditure Reports: Depending upon the end use of reports, expenditure reports are categorized as regular and special. • The regular expenditure reports are those which subordinate office is required -to submit to the supervising office, department or the ministry under the provision of existing financial regulations of HMG/N. The special expenditure reports are prepared and submitted by cost centers to facilitate the PCO/PCU to prepare withdrawal application/s and other reporting to be done to IDA. This plan does not propose any change in the preparation and submission of regular expenditure reports. The dates prescribed in the existing financial regulations should be observed in their preparation· and submission. • In order to ensure optimum utilization of the Special Account and periodical submission of withdrawal and replenishment claims with the IDA on a regular basis, the following schedule of submission, compilation, etc. of special expenditure reports shall be strictly observed and adhered to by different units of NISP: a. Submission of Statement of Expenditure to the concerned RID/RAD by Cost Centers (district offices): Expenditure Period July 16 - October 15 October 16 - January 15 January 16 -April 15 April 16 - July 15 Submission Date October 31 January 31 April 30 July 31 7 of20 b. Compilation and submission of Consolidated Statement of Expenditure relating to all cost centers and its own expenditure to the respective PCO/PCU by the concerned RID/RADs: Expenditure Period July 16 - October 15 October 16 - January 15 January 16 - April 15 April 16 - July 15 Submission Date November 15 February 15 May 15 August 15 c. Collection and Compilation of Statement of Expenditure by the PCO/PCU: Expenditure Period July 16 - October 15 October 16 - January 15 January 16 - April 15 April 16 - July 15 Submission Date November 30 February 28 May 31 August 31 d. Transfer from the Special Account to HMG/N's central Treasury to be made by the PCO: Expenditure Period July 16 - October 15 October 16 - January 15 January 16 -April 15 April 16 - July 15 Submission Date December 15 March 15 June 15 September 15 e. Submission of Withdrawal Application for Replenishment to the Special Account by the PCO: Expenditure Period July 16 - October 15 October 16 - January 15 January 16 - April 15 April 16 - July 15 Submission Date December 31 March 31 June 30 September 31 The past expenditure trend in development project suggests that expenditure are heavily concentrated in the second half of a fiscal year. However, regularity in the submission of periodical withdrawal claims is more important in order to foster a sense of discipline in the PCO/PCU and subordinate units. The timing of withdrawal has been designed giving more emphasis to this factor. The Flow Chart of Fund Flow mechanism in NISP is presented in the following Exhibit-2. 8 of20 Exhibit-2 FLOW CHART OF FUND FLOW MECHANISM HMG Source .... Fund Release :__ through DTCO / NISP Units (Cost Centre) Expenditure )--+' Annual Budget HMG/IDA Source IDA Source Direct Payment / Reimbursable HMG Reimbursable HMG/N's Central Treasury 9 of20 •••..~eimbursemen~ ....·: Special Account Direct Payment -:.·: W/A Submis. _·_·: World Bank 2.2 Role of Project Co-ordination Office: Under the Project, the role of PCO/PCU ·in the field of financial management is vital. This unit is responsible for the compilation of all the accounts, preparation of withdrawal applications and progress reporting of the components implemented under respective departments. Specifically, the PCO/PCU is responsible for the following role: i. Issuing Instructions to the cost centers and regional offices in regard to the spending procedures, ii.. Designing appropriate formats for the accounting and financial reporting by cost centers and regional offices under it, iii. Monitoring and supervision of the cost centers and regional offices to ensure proper maintenance of books of accounts and timely submission of financial reports by them, iv.. Compilation of expenditure statements of cost centers and regional offices, v: Preparation of withdrawal applications for submission to the World Bank, vi. Preparation of periodical financial status and progress reports, vii. Preparation of the consolidated financial statements of all project units under it, viii. Preparation and submission of un-audited and audited Project Accounts to the World Bank within the stipulated time, ix. Maintenance of loan related ledgers in respect of the fund utilized by the PCO and cost centers including regional offices under it. In addition, the PCO will also be responsible for the operation of Special Account on behalf of all the PCUs. It will also coordinate with other PCUs with respect to the maintenance of overall loan account, reconciliation of Special Account and preparation of the Project Account. 2.3 Requirement of Accounting Staff: Considering the nature and volume of work to be performed in different PCUs under NISP, requirement of the accounting manpower positions including the number is estimated as follows: A. PCO under the DOI: i. Chief Accounts Officer - 1 no. ii. Accounts Officers - 2 nos. iii. Accountants - 2 nos. iv. Sub-accountant - 1 no. B. PCU under SMIP Ill: i. Chief Accounts Officer - 1 no. ii. Accounts Officer - 2 nos: iii. Accountants - 3 nos. iv. Sub-accountant - 2 nos. 10 of 20 C. PCUs under other Implementing Agencies (OHM & DOA): i. Accounts Officer - 1 no. ii. Accountant - 1.no. D. RID/RADs: i. Accounts Officer - 1 no, ii. Accountant - 1 no. The PCO mainly serves as a coordinating agency; it has limited role as a cost center. The SMIP Ill primarily functions as a cost center. Sufficient number of accounting manpower is therefore required by this unit considering the amount of funds to be utilized in carrying out project activities. 2.4 TOR for the Accounting Staff of PCO/PCU: Accounts Officer: The accounts officer of the PCO/PCU will be responsible to carry out following duties and responsibilities: i. To assist the planning unit in the preparation of annual budget to ensure consistency of the proposed budget with the finance related provisions of the Development Credit Agreement (DCA), ii. To assist the Project C.oordinator in the preparation of budget authorization letters and source-wise budget allocation statements for the issue of the same by the.respective departments to different cost centers and regional offices, iii. To get the installments of annual budget in respect of PCO/PCU budget released from the DTCO, iv. To operate the bank account of the PCO/PCU and get the accounts maintained under the existing l'..f. HMG/N's accounting system, v. To maintain loan related records and ledgers in respect of funds claimed and withdrawn in different categories under the credit by the PCU, vi. To regularly collect and compile the expenditure statements from cost centers and regional offices, vii. To prepare application for withdrawal in order to claim reimbursement and replenishmen_t to the Special Account along with other supporting documentation for submission to the World Bank, viii. To prepare withdrawal application along with expenditure evidences and other supporting documentation for direct payment for submission to the World Bank, ix. To prepare Project Account and submit it to the World Bank within the stipulated time, x. To get the PCO/PCU accounts audited and coordinate the auditing work of cost centers and . regional offices under it, xi. To assist the World Bank team in the carrying out of SOE verification of the PCO/PCU and subordinate cost centers, xii. To design financial reporting formats in order to collect financial information for the preparation of withdrawals, consolidated financial statements and other financial reports, 11 of 20 xiii. To issue the formats so designed to the cost centers with specific instructions for completing each one of the formats, xiv. To act as a catalyst to subordinate cost centers including the regional offices in financial matters relating to the Development Credit Agreement, xv. To constantly monitor and supervise the accounts maintained by the cost centers including regional offices under the PCO/PCU, xvi. To get expenditure records of cost centers prepared by funding sources, xvii. To monitor withdrawal position of cost centers in terms of amount spent by each at a point of time, xviii. To periodically prepare statement of outstanding reimbursement under the FCGO format and reconcile the statement with the record of that office, In addition to the above, the Accounts Officer of PCO shall also be responsible for: a. Operation of the Special Account jointly with Chief Project Coordinating Officer, . b. Maintaining of the accounts related to the Special Account reflecting the fund utilization status of each individual PCUs, c. Maintaining of the aggregate loan records in respect of disbursement of funds made to all the PCUs as well as of its own, d. Providing necessary relevant information to different PCUs at the time of preparation of the Project Account. Accountants: The accountants of the Accounts Unit will be responsible for the discharge of following duties: i. Prepare basic accounting documents and records, ii. Prepare regular and special financial reports, iii. Assist the accounts officer in the compilation of accounts, preparation of withdrawal application and necessary supporting documentation, iv. Prepare annual financial statement, v. Maintain expenditl!re records of cost centers under the PCO/PCU by funding sources, vi. Get the PCO/PCU accounts audited. 2.5 TOR for Accounts Officer of RID/RAD: i. To assist in the preparation of annual budget of regional office and compilation of annual budget of subordinate cost centers, ii. To get periodic budget releases, operate bank accounts and get accounts maintained of the regional office, iii. To regularly collect and check the expenditure statement of cost centers under the regional office, 12 of 20 iv. To compile the expenditure statements of subordinate cost centers and submit the same along with the statement relating to the expenditure of regional office to the concerned PCO/PCU within the stipulated time, v. To get the accounts of the office audited and coordinate the auditing work in respect of cost centers under the regional office, vi. To constantly monitor and supervise the accounts and submission of expenditure statement by cost centers under the regional office, vii. To prepare a record showing the expenditure made, withdrawal claims submitted and disbursement made by the World Bank in respect of individual cost centers under the regional office, viii. To assist the PCO/PCU in the preparation of annual Project Account by supplying the consolidated financial statement of all cost centers under the regional office and any other information required for the purpose, ix. To assist the World Bank team to conduct SOE verification of the regional office and subordinate cost centers, and • x. To assist the PCO/PCU to conduct periodic training to the district and regional level accountants. 2.6 Functions of the Accounts Unit of PCO/PCU: The overall responsibilities of the Accounts Unit is to ensure that an efficient and effective system of accounting and financial reporting is in place in the Project. · The Accounts Unit of the PCO/PCU will act both as a cost center and a supervising unit. In respect of expenditure incurred by the Project at the central level, the unit will serve as any other cost center. As a cost center, the unit will: prepare basic accounting documents for recording financial transactions and maintaining proper books of accounts and ledgers prepare periodical expenditure statements both regular as well as special, viz..for the purpose of claiming withdrawal from loan acco1,1nts As a supervising unit, the functions of the Accounts Unit will include: Issuing instructions to cost centers and regional offices on the timing of submission of regular or special expenditure reports including the methods of completing each one of these reports, Compilation of accounts of cost centers and regional offices under it, Regular follow-up and monitoring with the cost centers and regional offices for expenditure statements Preparing an Accounting Guidelines for use by the cost centers and regional offices Organizing periodic training at districts and regional level for accountants 13 of 20 I. Issuing Instructions to cost centers, etc.: Past experiences show that the PCO/PCU is not able to prepare and submit withdrawal claims to the donor agency at regular intervals. As a result, there always remained a substantial backlog in the submission of claims at most of the points of time. Therefore, .it is imperative that the PCO/PCU should decide in advance the timing and frequency of submission of withdrawal application to the World Bank. They should, accordingly, demand expenditure statements from the cost centers and regional offices for this purpose. (Appropriate recommendation with respect to this has been made under point 2.1.) II. Regular follow up and monitoring with cost center for expenditure statements: This function helps to ensure that there is regular flow of regular and special. expenditure statements from cost centers. For the purpose, the PCO/PCU may establish a mechanism to identify the cost centers which have defaulted in the submission of such statements. Ill. Compilation of Accounts: Once the expenditure statements begins to flow from cost centers, the next step is the compilation of accounts. The initial compilation of expenditure statements of cost centers under a RID/RAD is done by the respective regionai directorate. The compilation of accounts helps the PCO/PCU to ascertain the position of different cost centers within a region in individual capacity and as a group. It is on this basis that withdrawal applications are prepared and submitted to the World Bank. The financial information generated from the accounts compiled may also be used to take timely planning and budgeting decisions. The expenditure reports compiled at the end of fiscal year serves as asource for the preparation of Project Account and other reporting statements for submission to the World Bank. IV. Preparing Accounting Guidelines: In different donor financed projects, the accounting staff at the field level lack general know how about the donor financial procedures. They are found not to have adequate knowledge of the basic financial provision of Development Credit Agreement such as percentage of financing, categories of expenditure, amount allotted in each category, project description, etc. These are vital information which every accountant must know before making an expenditure in a project activity. Similarly. the donor categories and HMG/N's expenditure codes do not match. As a result, the interrelationship between them is not clear to niost accountants. This acts as a constraint in the timely preparation and compilation of accounts. The accounting guidelines prepared should help the accounting staff to understand the donor financial procedures and its interrelationship and linkage with the HMG accounting system. It is, therefore, recommended that the accounting guidelines to be prepared should address the following areas: a. Major financial provisions of Development Credit Agreement b. Interrelationship of HMG budget code and expenditure categories c. Additional records/ledgers to be maintained at field level to identify expenditure incurred on various donor categories for reporting to PCO/PCU d. Format of Special Expenditure Reports in order to prepare accounts and reports for submission to the World Bank e. Method of preparation of special expenditure reports with practical cases 14 of20 f. Use and Importance of Special Expenditure Reports in the preparation of financial reports to be submitted for donor agency V. Organizing Periodic Training at Districts and for the Accountants of Cost Centers: Once the accounting guidelines is prepared, it is essential to disseminate its contents among the field accounting staff so that they perform their jobs as contemplated in the guidelines designed. The training imparted to the accountants should be project specific. The training provided currently to the accountants is not project specific·; rather it is a general in nature and is not specifically structured to meet the needs of a particular project. Therefore, it is suggested that the training to the accounting staff should be organized by the PCO/PCU in cooperation with the local training firms. The training should focus on the areas included in the Accounting Guidelines. In view of the present trend of turnover of accountants from one office to another, at any point of time, there would be a sufficient number of accountants who have not received project specific accounting training. It is also better to give an annual refresher to accountants who were trained previously. Therefore, such a training should be made an annual feature participated by all the accountants of cost centers, regional offices and the PCO/PCU. The subject matter of such a training program could be covered in 6 day's time. 2.7 Training for Accounting Staff: The field level accounting staff serving at district level should be given project specific training on accounts-keeping. As suggested under point 2.6 above, such a training should be organized periodicaUy, preferably on an annual basis. Besides, the field and central level accounting staff of the Project should also be provided with foreign and domestic training on project financial management and accounting. Considering the important role which the officer level accounting manpower are to play in the overall financial management of NISP, they will be given preference to receive such training from foreign countries and institutions. It is also necessary that the officer level accounting staff of NISP should be well conversant with IDA financial system and procedures. In order to enable them to update and upgrade their knowledge of the this field, they will be nominated to attend seminars and workshqps organized by the World Bank in the related subject from time to time. 2.8 Provision of Computer: The use of personal computers in the· processing of financial data would be of much help in the compilation of accounts, preparation of reporting formats and accounts for submission to the World Bank. It is specially so in view of the greater number of cost centers involved in NISP. .Some of the regional directorates also possess the facility of personal computers. They should also be encouraged to use these computers in the processing of financial data and reports to ensure uninterrupted and timely flow of reports relating to their own expenditure as Well as the cost centers under them. For better and effective reporting, timely maintenance and reporting _of accounts is essential. Therefore, suitable accounting programs should be installed at every PCU & PCO. In view of the fact that the accounts officer of the PCU & PCO could be instrumental in the design and establishment of simple programs in his own office and also at the regional level, he should be trained in the basic computer applications as well as computer programming. 15 of 20 The role of accounts officer of the regional directorates is also vital in so far as the supervision and . monitoring of cost centers as well as flow of information to the PCO/PCU is concerned. Therefore, .the accounts officer of the regional office should also be provided with similar computer training. The accountants of all the PCU/PCOs and RIDs/RADs should also be imparted training in the basic computer course. 2.9 PCO's Co-ordination with Other Line Agencies and Cost Centers: A proper mechanism of coordination between the PCO and concerned line agencies on the one hand and between the PCO and the cost centers including RIDs/RADs on the other is essential to ensure smooth functioning of the financial management system envisaged for NISP. 2.9.1 Coordination with other Line Agencies: This coordination with other line agencies is especially desirable in the following areas: Preparation of Annual Budget Operation of Special Account Submission of Withdrawal Application Preparation of Project Account The coordination by the PCO in each of the above areas will be effected in the following manner: ii. iii. Preparation of Annual Budget: The PCO should intimate the respective line agencies about the fund allotment balance in different categories which they may utilize in the preparation of budget. Operation of the Special Account: One Special Accounts and two Sub-Accounts, one for SMIP Ill and the other for the remaining components/sub-components of the project will be established under NISP. In the case of Special Account to be shared jointly, the PCO at DOI, in consultation with other PCUs, will determine the ceiling of Special Account total funds which may be withdrawn by each PCU. This ceiling may be fixed based on the proportion of allotment of funds to individual agencies on the total credit amount. The PCO, DOI will be the only authorized signatory to operate the Special Account on behalf of all the participating agencies. However the processing of withdrawals from this accour:it, will be done only through PCO, DOI. The participating agencies which jointly share the Special Account funds should provide a statement of expenditure for utilizing the funds of the account. Whenever any replenishment to the Special Account is to be claimed "by the PCO, DOI on behalf of other agencies, it should prepare a reconciliation statement of such account showing the respective amount utilized by each agency. It should also get certified copies of the statement of expenditures from the concerned agency. The PCO also maintains a control account to monitor the withdrawal made by different PCUs from the Special Account. This facilitates proper coordination between the line agencies and PCO. At periodic intervals, the PCO should monitor the utilization of special account by different PCUs and intimate the individual PCUs as regards their eligibility for withdrawals on the remaining balance of the Special Account. iii. Submission of Withdrawal Application: SMIP Ill will prepare its own withdrawal application for submission to the World Bank to claim disbursement of the Bank's share of expenditure. The agencies other than SMIP Ill will prepare relevant statements and submit supporting documentation to PCO, DOI to enable it to claim withdrawal of funds from the World Bank on their behalf. 16 of 20 The PCO, DOI is the only signatory to make application to the World Bank in respect of its own expenditures and on behalf of other agencies (other than SMIP Ill) for the withdrawal of funds utilized by each one of them on project activities. Each time a withdrawal application is to be made, the PCO should be supplied with certified copies of supporting statements and documentation by the concerned agencies. The PCO will also maintain a loan ledger of the credit account based on such applications made and disbursement vouchers received from the World Bank. The PCO will also develop a mechanism to identify the withdrawal application number of individual agencies using a prefix appropriate for each individual PCUs. This will help to ascertain the withdrawal made by a particular PCU and enable maintenance of a proper loan accounts. •iv. Preparation of Project Account: Based on the loan ledger maintained, the PCO, DOI will ascertain the amount of credit utilized by and outstanding balances of respective PCUs n various categories. To enable the preparation of Project Account by the respective individual PCUs, the PCO should also furnish statement of funds utilized from the Special Account, replenishment made to such account and outstanding_replenishment/s applicable to each one of the agencies. 2.9.2 Coordination with Cost Centers and RID/RAD: The objective of establishing a coordination mechanism between the PCU and cost centers is to ensure that financial management system under the Project operates smoothly and timely corrective actions are taken whenever deviations and problems are observed from the prescribed standard practices. The coordination will help the Project in the following ways: it will secure a regular and uninterrupted flow of financial information from the cost centers and regional offices to the PCO it will aid in the prompt compilation of accounts it will ensure timely withdrawal of funds spent in the project from the Special Account or from the World Bank • The PCU and PCO is especially required to coordinate with the RID/RAD and cost centers with respect to the following matters: preparation of budget as per the provision of Development Credit Agreement preparation of special expenditure reports anp the related methods making the project units aware of the financial procedures of the World Bank reporting of the project status to the World Bank assist the World Bank's mission in the carrying oLit of supervision and monitoring. 2.10 Supervision and Monitoring Role of PCO/PCU: There should be a continuous mechanism of supervision and monitoring by the PCO/PCU of the accounting records maintained at different cost centers. The PCO/PCU and RID/RAD accounts officer should also pay field visits of the problematic cost centers and give necessary instructions and feedback to them in the matter of proper maintenance of the accounting records and financial reporting. The regular submission of accounting reports by cost centers and the quality of the report submitted may be taken as a guide for the selection of cost centers to be visited_ for the purpose. 17 of20. "'"I ·.. , The supervision by way of field visits should be utilized to see that adequate supplementary records and ledgers as prescribed are properly maintained by the cost centers and regional offices. This role of PCO and PCU assumes added significance in the context of the present practice of the World Bank to carry out verification of SOEs at the field level offices. Such a verification would be handicapped if cost centers and regional offices are not able to ascertain the amount of money spent in different project categories. 2.11 N~mber of Signatories to Withdraw Funds from the Credit Account: The Project Manager and Chief Accounts Officer of SMIP Ill will be designated as authorized signatories for the withdrawal of funds from the credit account in respect of monies spent by this Co-Project. Besides, arrangements will also be made for the withdrawal of funds utilized by all other agencies of NISP under the joint signatures of the Chief Accounts Officer and Projec::t Coordinator of the PCO, DOI. The other agencies will be required to submit certified copies of expenditure statements and related documents to PCO, DOI to enable it to submit with.drawal application to the World Bank on their behalf. 2.12 Operation of the Special Account: There are five different agencies responsible to carry out project activities under NISP. These are: Sunsari Morang Irrigation Project-Ill Department of Irrigation Department of Hyr.Jrology and Meteorology Department of Agriculture MOWR Under NISP, one Special Accounts and two Sub-Accounts, one for SMIP Ill and the other for the remaining components/sub-components will be opened. The operation of the Special Sub-Accounts established for SMIP Ill will be managed und.er the joint signatures of the Project Manager and Chief Accounts Officer of this Co-Project. The PCO, DOI will be entrusted with the responsibility of operation of the joint Special Account to be shared by the. remaining components/sub-components of NISP. The Project Coordinator and Chief Accounts Officer of will operate this account under their joint signatures. Modality for the Use of Special Account Fund Balance: The share of individual PCUs on the total fund of the Special Account should be fixed as a percentage of the allocation of each PCU in the total credit. A PCU should not be allowed to withdraw funds from the Special Account in excess of the limit so pre- determined. The respective share of each PCU in the total· Special Account balance should be communicated by the PCO. The purpose behind this arrangement is to ensure initiation of prompt action by the PCUs in demanding replenishment of the fund utilized from the Special Account so that their limit of withdrawal is maintained at the original level. It also seeks to ensure that the initial fund made available by HMG/N to meet the share of IDA cost in the project is reimbursed at the earliest possible time. 18 of 20 2.13 Format of Project Account: The format of the Project Account which is currently in use for IDA funded project can also be used for NISP. The FCGO and AGO are certifying the Project Account in the present format. Although the FCGO and AGO do not approve the format of the Project Account beforehand, it is desirable that the Project Account format for NISP be developed and finalized before project effectiveness in consultation with the World Bank Resident Mission as well as the FCGO and AGO. . • The Project Account format so finalized should provide for stating the credit amount in terms of SOE's reimbursement and fund utilized from the Special Account in NRs as well as in USD and SOR so that reconciliation with IDA is facilitated. 2.14 Coordination Mechanism with the FCGO and AGO: Coordination with the FCGO: The FCGO is responsible for the supply of accounting manpower to cost centers, RID/RAD and-PCUs and PCOs. The transfer and replacement of accounting manpower from time to time is also a function of the FCGO. The Project units require quality accounting manpower to facilitate smooth operation of the financial management system of the Project. In the past, ILC and other irrigation projects experienced difficulties especially in relation to the financial reporting to the donor agencies due to lack of competent manpower. The Project, therefore, expects the following as the bottom line from the FCGO: Persons with proper qualification and experience in the foreign funded projects should only be fielded in the project units, They should be retained in the project units for a sufficient length of time period so that benefit of the experienced manpower is available to the Project units, The FCGO should agree to a system of replacement of accounting staff of a project unit with the competent one in case any unit faces problem due to the inadequate quality of the manpower provided. This should be done on the recommendation of the concerned de-partment. DOI is required to submit unaudited Project Account to IDA within six (6) months after the end of each fiscal year duly certified by the FCGO. Before presenting the Project Account for certification to the FCGO, the PCU/PCO should coordinate with FCGO to reconcile and verify following figures included in the Project Account with the records of the FCGO: Amounts included in the consolidated annual financial statement including the figures of budget release of various cost centers and regional offices, Figures of reimbursement made and outstanding reimbursement to HMG/N's Central Treasury under different project categories, Figures of loan disbursed under different project categories. Coordination with AGO: The Project is required to submit audited Project Accounts and financial statements for each fiscal year audited by the AGO within nine (9) months after the end of each fiscal year. The AGO's opinion on the Project Account and financial statement is based upon the result of audit of accounts of NISP units. In order to meet the deadline with respect to the submission of Project Accounts and financial statements to the World Bank, the Project expects a priority dealing from the AGO in the matter of conduction of audit of the accounts of the project units. The purpose of audit by the AGO is to express opinion as to whether: 19 of 20 the financial statement presents fairly cash received and cash disbursed under the Project for the audit period, the disbursements made on the basis of statements of expenditure were for goods and services received and incurred for the purpose and scope of the Project, and the special account statement give a true and fair view of the beginning and ending balances and whether the receipts are properly accounted for and withdrawals were made for the purpose of the project in accordance with the credit agreement (DCA). The SMIP Ill and PCO, DOI should prepare and submit unaudited Project Account before the AGO within three (3) months from the close of fiscal year before the AGO commences the audit of accounts of project units. The Account should be duly signed by the concerned Project Coordinator, Secretary of the concerned Ministry and FCGO. The PCU/PCO should get the accounts including transactions made through the Special Account and amounts disbursed under SOE procedures audited. It should then apply for the certification of audited Project Account by the AGO. 20 of 20 ATTACHMENT 16 INDICATORS FOR M & E ATTACHMENT 16 INDICATORS FOR M&E Summary Key Perf6nnance Inputs Monitoring Output Monitoring M&EMethod/ Indicators Responsibilities Project Development Objectives Outcome/Imp!!Ct Indicators I. Raise Agri. Production rural fann I.I Increase ofcropping intensity I.I Improved & eff. Periodical assessment Baseline, completion & periodical income and alleviate poverty 1.2 Increase ofH/H income irrig. system ofAgri production and HIS surveys established net H/H income 1.2 Timely inputs provided 1.3 Timely proper O&M system established 2. Improve integrated water resource 2.1 National WRDC activated HMG commitment and planning and environmental 2.2 National WPU established fonnulation management 2.3 National water strategy & policy fonned 2.4 Sub-Sectoral water policies refonned. 3. Strengthen public & private sector 3.1 Sense ofownership developed . Training program Assessment of M&Esurveys capacity 3.2 Sustainable O&M by WUAs in - No ofturned over indicators " taken over systems systems Periodically or 3.3 On farm resource management - Increase in annually " improved irrigability & WUAs trading activities " 3.4 Reliable hydrological database - Analysis ofdata " established resource books & activities ofbasin " managers offices. Water Resour!;es & Irrigation Infrastructure Development I. Beneficiaries participation in - No of WUAs registered and Assistance, training and " RAD/RID M&E Reports Project investment and O&M of irrigation participated in improvement of motivation extended Nos Annual Reports DOI's MIS facilities and related activities their existing systems for each type. database reporting. 1 of 2 Summary Key Perfonnance Inputs Monitoring Output Monitoring M&EMethod/ Indicators Responsibilities - No ofWUAs for TO schemes fanned - No ofWUAs for Joint Management(PJM)schemes fanned 2. Beneficiaries contributed to capital - No. ofFMISs agreed to deposit Dissemination of ,, RID & DIO/GWFO reporting costs right from feasibility studies 0.5%, upfront & (5-20%) ofcost infonnation & motivation till development is completed at different stages ofproject on criteria and principles development of subproject. 3. FMISs and WS/Micro hydropower Nos ofFMISs/ or AMISs ofthis type Fanners willing to Nos actually taken up schemes rehabilitated & constructed undertaken annually or by the end of contribute, and carry on and completed the project O&M such facilities 4. Completed AMIS actually turnover Nos ofTO schemes completed (TO)to WUAs 5. Compieted AMIS actually brought Nos ofPJM schemes fostered (ha) under PJM (ha) 6. WUAs and NGO/CBO training on Nos of WUAs trained strengthening and improve O&M Nos ofNGO/CBOs trained 2 of2 NEPAL IRRIGATION SECTOR PROJECT IMPLEMENTATION VOLUME PART 2-ECONOMIC ANALYSIS DATA Part Il - Economic Analysis Section (Index) 1. Cropping patterns and yields of sub-project models in WOP and WP - Tables 1-10. 2. The average 1996 financial frum gate prices prevailing in the project areas - Table 11-12 3. Per ha financial crop budgets - Tables 13-33 4. Investment costs including taxes and duties and physical contingencies- Tables36-46 5. Financial and Economic cost and benefit streams ofsub-projects - Tables47-58 and Tables61-72 6. ERRs for the FMIS component and for the whole project and Tables73-74 Including sunk costs ofSMHP, ERR ofthe whole project Table 75 Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGATION SECTOR PROJECT Cropped Area, Yields and Production-Terai Major Rehab Scheme (1460 ha) Present/Without Project With Project Area (ha) Yield (I/ha) Total Area (ha) Yield (t/ha) Total production Production (tons) (tons) 204 a.so 102 175 1.20 210 135% 197%
Table 1 Paddy-HYV Paddy-local Paddy- spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGATION SECTOR PROJECT Cropped Area, Yields and Production-Teral Minor Rehab Scheme—882 ha) Present/Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) Total production Production (tons) (tons) 688 3.00 2064 706 3.50 2471 185 1.80 333 176 2.50 440 0 0 0 88 3.00 264 4 ,.so 6 0 0.00 0 169% 200%
Table 2 Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGATION SECTOR PROJECT Cropped Area, Yields and Production-Hill Major Rehab Scheme. (105 ha) Present/Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) . Total production Production (tons) (tons) 160% 200%
Table 3 Paddy-HYV Paddy-local Paddy- spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGATION SECTOR PROJECT Cropped Area, Yields and Production-Hill Minor Rehab Scheme (135 ha) Present/Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) Total production Production (tons) (tons) 13 1;50 20 0 0.00 0 407 974 234 292 135 135 173% 216%
Table 4 Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total • Total Cropped Area Net Cultivable Area Cropping Intensity (%) .. NEPAL IRRIGATION SECTOR PROJE.CT Cropped Area, Yields and Production-DTW (36 ha) Present/Without Project Area (ha) Yield (I/ha) Total Area (ha) production (tons)
58 76 36 36 160% 212%
Table 5 With Project Yield (I/ha) Total Production (tons)
Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGAllON SECTOR PROJE<::T Cropped Area, Yields and Production-STW (10 ha) Present/Without Project Area (ha) Yield (t/ha) Total Area (ha) production (tons).
16 21 10 10 160% 205%
Table 6 With Project Yield (I/ha) Total Production (tons)
Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Ar!!a Net Cultivable Area Cropping Intensity (%) NEPAL IRRIGATION SECTOR PROJECT Cropped Area, Yields and Production-Terai 'rum Over scheme (surface) (450 ha) Present/Without Project With Project Area (ha) Yield (I/ha) Total Area (ha) Yield (I/ha) Total production Production (tons) (tons) 177% 197%
Table 7 Paddy-HYV Paddy-local Paddy-spring Maize Wheat Oilseeds Pulses Potato Vegetable Finger Millet Total Total Cropped Area Net Cultivable Area Cropping Intensity (%) NEPAL Table 8 IRRIGATION SECTOR PROJECT . Cropped Area, Yields and Production-Hill Tum Over scheme (surface) (180 ha) • Present/Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) Total production Production (tons) (tons) 5 10.00 50 16 12.00 •192 177% 200% NEPAL Table 9 IAAIGATION SECTOR. PROJECT Cropped Area, Yields and Production-PJM (750 ha) Present/Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) Total production Production (tons) (tons) Kharif Irrigated paddy- HYV 113 3.00 338 450 4.10 1845 Irrigated paddy-local 135 2.4 324 188 2.8 0 rainfed paddy 375 1.8 675 o 0 jute-rrigated 23 0.80 18 38 1.20 45 jute-rainfed 98 0.60 59 o 0.00 0 Pulses o 0.00 0 0 0.00 0 oilseeds 0 0.00 0 15 1.50 23 vegetables 0 0.00 0 0 0 0 subtotal 742.5 1413 690 1912.5 Rabi wheat 225 1.50 338 375 3.00 1125 oilseeds 45 0.6 27 98 1.2 117 pulses 75 0.5 38 113 1.2 135 potato-irrigated 8 8 60 38 15 563 potato-rainfed 23 5 113 0 0 0 vegetable 0 0 0 15 15 225 sugarcane 8 35 263 23 50 1125 subtotal 382.5 837 660 3289.5 hot season jute-irrigated 0 0 37.5 1.2 45 paddy 0 0 75 4 300 pulses o o o 0 0 oilseeds 0 0 15 1.5 22.5 vegetables 0 o 7.5 15 112.5 subtotal o 0 135 480 Total Cropped Area 1125 2250 1485 5682 Net Cultivable Area 750 750 Cropping Intensity (%) 150% 198% NEPAL Tabl• IRRIGATION SECTOR PROJECT Cropped Area, Yields.and Production-SMIP Ill P,hase I (15,100 ha) Present Without Project With Project Area (ha) Yield (t/ha) Total Area (ha) Yield (t/ha) Total Area (ha) Yield—I/ha) To1al production production Production (Ions) (Ions) (Ions) Kharif Irrigated paddy- HYV 2265 3.00 6795 2B70 3.30 9471 90B0 4.20 3B052 Irrigated paddy-local 271B 2.4 6523 120B 2.4 2B99 3775 3 11325 rainled paddy 7550 1.B 13590 7550 1.B 13590 0 0 0 jute-irrigated 453 0.80 362 755 0.80 B04 755 1.30 982 jute-rainled 1963 0.60 1178 1661 0.60 997 0 0.00 0 Pulses 0 0.00 0 0 0.00 0 0 0.00 0 oilseeds 0 0,00 0 0 0.00 0 302 1.50 453 vegetables 0 0.00 0 0 0.00 0 0 0 0 subtotal 14949 28448 14044 27561 13892 50B12 Rabi wheal 4530 1.50 6795 52B5 1.80 9513 7550 3.00 22650 oilseeds 906 0.6 544 1510 0.6 90B 1963 1.5 2945 pulses 1510 0.5 755 2265 0.5 1133 2265 1.3 2945 potato-irrigated 151 B 1208 151 B 1208 755 15 11325 potato-rainled 453 5 2265 755 5 3775 • 0 0 0 vegetable 0 0 0 0 0 0 302 15 4530 sugarcane 151 35 5285 151 40 6040 453 . 50 22650 subtotal 7701 16B52 10117 22575 13288 67044 hot season Jute-irrigated 0 0 0 0 755 1.3 981.5 paddy 0 0 0 0 1510 4 6040 pulses 0 0 0 0 0 0 0 oilseeds 0 0 0 0 302 1.5 453 vegetables 0 0 0 0 151 15 2265 subtotal 0 0 0 0 2718 9740 Total Cropped Area· 22650 45300 24161 50135 29B98 127595 Net Cultivable Area 15100 15100 15100 Cropping Intensity (%) 150% 160% 198% JRs/kg "addy t1aize \/heat ~ustard ulses otato egetable tUte ugarcane y-products: ,addy •lheat 'ilseeds [(Jlses ~rtilizers: I ··r....>'.,, l!"ea OP •<\P anure irm Labour (NRs/md) ·aft Power (NRs/day) NEPAL National Irrigation Sector Project Summary of Financial ard Economic Prices of Outputs and Inputs (Terao Financial . Economic 1/2/ Outputs Seeds Outputs Seeds Inputs Inputs Non-traded outputs, inputs, labour and draft power were adjusted by SCF of 0.90.
Table 11 For traded commodities, the economic prices were based on the financial price ratio between grains and seeds. NRs/kg Paddy Maize Wheat Oilseeds Pulses Finger Millets Potato Vegetable By-products: Paddy Wheat Oilseeds Pulses Fertilizers: - Urea MOP DAP Manure Farm Labour (NRs/md) Draft Power (NRs/day) NEPAL National Irrigation Sector Project Summary of Financial ard Economic Prices of Outputs and Inputs (Hill} Financial _Economic 1/2/ Outputs Seeds Inputs 8.40 10.20 18.40 0.20
Outputs Seeds Inputs 12.71 11.56 15.32 0.18
1/ Non-traded outputs, inputs, labour and draft power were adjusted by SCF of 0.90.
Table 1· , 2/ For traded commodities, the economic prices were based on the financial price ratio between grains and seeds. ... ·······-··· .... - --- ---- NEP/IL Table 13 lffilGATION SECTCJ, PAG..ECT Per Ha Financial Crop Budge· PresentJWOP-Tera! Major Rehab Scheme Paddy Paddy Maize Wheat Oilseeds Pulses Potato Vege1ablefingermillet OUtput: HYV Lcx:al Main Prod.Jee: Yield(t/ha) 2.4 1.8 1.4 1.5 0.6 0.5 5 0 0 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 a Value 16800 12600 9380 10500 11400 7500 22500 0 a By-Procilcl5: Yield(t/ha) 2.6 2.7 0 0.9 0.45 0.07 a 0 0 Price/! 660 660 0 300 5130 6000 0 0 0 Value 1716 1782 0 270 2308.5 420 ·o 0 0. Total Gross Value 18516 14382 9380 10770 13709 7920 22500 0 0 lnpul5: SeedsQ<g/ha) 60 60 30 100 15 45 1000 0 a Priceft<g 8 8 10 11.0 22 18 10 500 0 Value 480 480 3.00 1100 330 810 10000 0 0 UreaQ<glha) 45 0 0 60 30 0 a 0 a Priceft<g 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 338 0 0. 450 225 0 0 0 0 MOPQ<g/ha) 0 0 0 0 a 0 0 0 0 Priceft<g 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 0 0 0 0 0 0 0 0 0 DAPQ<g/ha) 0 0 0 60 30 0 a 0 a Priceft<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 0 0 0 1020 510 0 0 0 0 Mamre(Vha) 0 0 1.5 0 0 0 0 0 0 Price/! 200 200 200 200 200 200 200 200 0 Value 0 a 300 0 0 0 0 0 0 Qiemicais: Value 0 0 .0 0 0 0 0 a .0 Total Labour(md/ha) 125 120 90 75 40 30 110 0 a Hired Labour 37.5 36.0 27.0 225 12.0 9.0 33.0 0.0 0.0 Price/md 50 so so 50 so so so so so f.iired Labour Costs 1875 1800 1350 1125 600 450 1650 0 0 Total Animal Days(ad) 30 30 25 28 20 20 30 0 0 HiredArlimal 6 6 5 5.6 4 4 6 0 0 Price/ad 100 100 100 100 100 100 100 100 100 Hired Animal Costs 600 600 500 560 400 400 600 0 0 To1al Costs 3293 2880 2450 4255 2065 1660 12250 0 0 Net Production Value 15224 11502 6930 6515 11644 6260 10250 0 0 : -~..: ····-·----·- ·------- ...: --~-- _.__ .. . . NEP.AL IPRIGATION SECTCl'l PAo..ECT PEI" Ha Financial 0-op Budge- Witt"! Project-Terai Majer Rehab Scheme Paddy Paddy Maize Wheat Oilseeds· Pulses Potato Vege1able Paddy Output: HYV Local Spring Main Proc1Jce: Yield(t/ha) 3.5 2.5 2.5 3 1 1.2 12 15 3 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 7000 Value 24500 17500 16750 21000 19000 18000 54000 67500 21000 By-ProciJC'ls: 3.85 Yield(t/ha) . 3.75 0 1.8 0.75 0.18 0 0 3.3 Price/t 660 660 0 300 5130 6000 0 0 660 Value 2541 2475 0 540 3847.5 1080 0 0 2178' Total Gross value 27041 19975 16750 21540 22848 19080 54000 67500 23178 lnpu1S: Seeds(kglha) 50 50 30 120 10 40 1500 0.5 50 PriceA<g 8 8 10 11.0 22 18 10 500 8 Value 400 400 300 1320 220 720 15000 250 400 L.rea(kglha) 120 100 100 140 60 45 120 165 120 PriceA<g 7.5 7.5' 7.5 7.5 7.5 7.5. 7.5 7.5 7.5 Value 900 750 750 1050 450 338 900 1238 900 MOP(kg/ha) 30 0 0 30 0 0 60 60 30 PriceA<g 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 270 0 0 270 0 0 540 540 270 DAP(.kg/ha) 80 60 60 90 60 30 120 120 80 PriceA<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1360 1020 1020 1530 1020 510 2040 2040 1360 Manure(Vha) 0 0 2 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 200 Value 0 0 400 0 0 0 0 0 0 O,emicals: Value 300 200 300 100 200 100 400 400 300 Total LaboLT(md/ha) 145 140 100 100 60 50 180 200 145 Hired Labar 43.5 • 42.0 30.0 30.0 18.0 15.0 54.0 60.0 43.5 Price/md 50 50 50 50 50 50 50 50 50 C.abour eos-..s 2175 2100 1500 1500 900 • 750 2700 3000 2175 Total Animal Days(ad) 40 35 35 35 25 25 40 40 40 Hired Animal 8 7 7 7 5 5 8 8 8 Price/ad 100 100 100 100 100 100 100 100 100 Animal Cos1S 800 700 700 700 500 500 800 800 800 Total ccists 6205 5170 4970 6470 3290 2918 22360 8268 6205 Net Production Value 20836 14805 11780 15070 19558 16163 3164' 59233 16973 .. .. . :'::~::·:_·~~::~;~_::::, :_:--:i· • .. . •! .. ··-·-·- ._.: ______ NEP.,6L Table15 IRRIGATION SECTa=I ffiG.Ecr Per Ha Financial 0-op Budget PresentJWOP-Teral Mna- Rehab Scheme Padd/ Paddy 11/iaize Wheat • Oilseeds Pulses Potato Vegetable Fingermillet Output: HYV Local Main Proci.Jce: Yield(t/ha) 3 • 1.8 1.6 2 0.6 0.7 6.5 8 0 Price/t 7000 • 7000 6700 7000 19000 15000 4500 4500 0 Value 21000 12600 10720 14000 11400 10500 29250 36000 0 By-Prod.lct5: Yield—t/ha) 3.3 27 0 1.2 0.45 0.1 0 0 0 Price/t 660 660 0 300 5130 6000 0 0 Q. •. Value 2178 1782 0 360 2308.5 600 0 0 0 Total Gross Value 23178 14382 10720 14360 13709 11100 29250 36000 0 Inputs: SeedsQ<glha) 55 55 30 118 15 45 1080 0.5 0 Price.tl<g 8 8 10 11.0 22 18 10 500 0 Value 440 440 300 1298 3~0 810 10800 250 0 UreaQ<glha) 60 0 0 60 30 0 30 60 0 Price.tl<g 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 450 0 0 450 225 0 225 450 0 MOPQ<g/ha) 15 0 0 15 0 0 15 30 0 Price.tl<g 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 135 0 0 135 0 0 135 270 0 . DAPQ<g/r.a) 75 0 0 60 30 0 60 90 0 Price.tl<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1275 0 0 1020 510 0 1020 0 0 Mam.re(tlha) 0 0 2 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 400 0 0 0 0 0 0 01emicals: Value 0 0 0 0 0 0 0 0 0 Total Lal:x:n.r—md/ha) 130 120 90 80 40 30 115 130 0 Hiredlabetr 39 36 27 24 12 9 34.5 39 0 Flrice/md so 50 50 50 so so 50 50 50 Hired Labar Costs 1950 1800 1350 1200 600 450 1725 1950 0 Total Animal Days_(ao) 30 30 25 28 20 20 30 30 0 Hired.Allimal 6 6 5 5.6 4 4 6 6 0 Price/ad 100 100 100 100 100 100 100 100 100, Hired .Allimal Costs 600 600 500 560 400 400 600 600 0 Ta1al Costs 4850 2840 2550 4663 2065 1660 14505 3520 0 Net Productia, Value 18328 11542 8170 9697 11644 9440 14745 32400 0 --:-·.:J.. . ·--·---······ • -------.. - NEPAL lffilGATION SECTa=l PRG...ECT Per Ha Financial 0-op Budget With Project-Tera! Minor Rehab Scheme Paddy Paddy Maize Wheat Oilseeds Pulses Potato Vege1able Paddy Output HYV Local Spring Main Produce: Yield(t/ha) 3.5 25 0 3 1 1.2 12 15 3 Price/t 7000· 7000 6700 7000 19000 15000 4500 4500 7000 Value 24500 17500 a . 21000 19000 18000 54000 67500 21000 By-Produe1S: Yield(t/ha) • 3.85 3.75 a 1.8 0.75 0.18 0 0 3.3 Price/t 660 660 a 300 5130 6000 0 0 660 Value 2541 2475 a 540 3847.5 1080 0 0 2178 Total Gross Value 27041 19975 a 21540 22848 19080 54000 67500 • 23178 Inputs: Seeds(kglha) 50 50 a 120 10 40 1500 0.5 50 Price/kg 8 8 JO 11.0 22 18 10 500 8 Value 400 400 0 1320 220 720 15000 250 400 Urea(kglha) 120 100 0 140 60 45 120 165 120 Price/kg 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 900 750 0 1050 450 338 900 1238 900 MOP(kg/ha) 30 0 a 30 0 0 60 60 30 Price/kg 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 270 0 0 270 0 0 540 540 270 OAP(kg/ha) 80 60 a 90 60 30 120 120 80 Price,4<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1360 1020 0 1530 1020 510 2040 2040 1360 Mamre(tlha) 0 0 0 0 0 a 0 a 0 Price/t 200 200 200 200 200 200 200 200 200 Value 0 0 0 0 0 0 0 a 0 Chemicals: Value 300 200 0 100 200 100 400 400 300 Total Labotr(md/ha) 145 140 a 100 60 50 180 • 200 145 Hired Labo.r (md) 43.5 420 0.0 30.0 18.0 15.0 54.0 60.0 43.5 l?rice/md 50 50 50 50 50 50 50 50 50 Labou- Costs 2175 2100 0 1500 900 750 2700. 3000 2175 Total Animal Cays(ad) 40 35 0 35 25 25 40 40 40 Hired animal (ad)· 8 7 0 7 5 5 8 8 8 Price/ad 100 100 100 100 100 100 100 100 100 Animal CoslS 800 700 0 700 500 500 800 800 800 Tolal Costs 6205 5170 0 6470 3290 2918 22380 8268 6205 Net Producti01 Value 20836 14805 0 15070 19558 16163 31620 59233 16973 ' .-~ . • •. '.~-: ·:... .. ·-- .. -··-··· ... --·· --~·-· --- --··· --- ----------·-·· -- .. NEPAi... Table 17 IPfHGAllON SECTO, FAO-ECT Per Ha Financial 0-cp Budget Present/WOP-HU Major Rehab Scheme Paddy Paddy' l\laize Wheat Oilseeds Pulses Potato VegelableFingermillet Output: HYV Local Main Proci.Jce: Yield—t/ha) 2.4 1.6 1.5 1.3 0.6 0.7 0 0 1.3 Price/! 8250 8250 . 8000 8200 19000 15000 4500 4500 7000 Value 19800 13200 12000 106€0. . 11400 10500 0 0 9100 By-Proci.Jcts: Yield—t/ha) 2.6 2.4 0 0.78 0.45 0.1 0 0 1 Price/! 900 900 0 410 4860 6000 0 0 700 Value 2340 2160 0 320 2187 600 0 0 700 Total Gross Value 22140 15360 12000 10980 13587 11100 0 O· 9800 Inputs: Seeds(kg/tla) 60 60 30 100 15 45 0 0 20 Priceikg 9.5 9.5 • _10 12.0 22 18 10 600 8.5 Value 570 570 300 1200 330 810. 0 0 170 Urea(kg/tla) 45 0 0 45 0 0 0 0 0 Priceikg 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 Value 378 0 0 378 0 0 0 0 0 MOP(kg/ha) 0 0 0 0 0 0 0 0 0 Priceikg 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 0 0 0 0 0 0 0 0 0 DAP(kg/ha) 0 0 0 45 0 0 0 0 0 Priceikg 18.4 18.4 18.4 1a4 18.4 18.4 18.4 18.4 18.4 Value 0 0 0 828 0 0 0 0 0 Mamre(t,'ha) 0 0 2 0 0 0 0 0 0 Price/! 200 200 200 200 200 200 200 200 0 Value 0 0 400 0 0 0 0 0 0 Olemicals: Value 0 0 0 0 0 0 0 0 0 Total Lal:xJu-(md/ra) 125 120 90 75 40 35 0 0 100 Price/md 40 40 40 40 40 40 40 40 40 Hired Labar Costs 0 0 0 0 0 0 0 0 0 Total Animal Days(ad) 30 30 25 28 20 20 0 0 25 Price/ad 80 80 80 80 80 80 80 80 80 Animal Costs 0 0 0 0 0 0 0 0 0 Total Cos-,s 948 570 700 2406 330 810 0 0 170 Net ProdJctia, Value 21192 14700 11300 8574 13257 10200 0 0 9630 .. •-;-· ...-, ... ~ ~ .. . . •.• .. ----·····- ... -·----- ··--·------·-· NEPAL IRRIGATION SECTa=I PAD...ECT Per Ha Financial 0-cp Budget With Project-Hill Maja- Rehab Scheme Padc:Jof Padc:Jof Maize Wheat Oilseeds Pulses Potato Vege1able Paddy Output: HYV Local spring Main Prod.Jee: Yield—t/ta) 3.5 25 3 3 1 1.2 12 15 3 Price/t 8250 8250 8000 8200 19000 15000 4500 • 4500 8250 Value 28875 20625 24000 24600 19000 18000 54000 67500 24750 By-Prcd.JC1S: Yield—t/ta) • 3.85 3.75 0 1.8 0.75 0.18 0 0 3 Price/.t- 900 900 0 410 4860 6000 0 0 907.5. Value 3465 3375 0 738 3645 1080 0 0 2723 Total G-oss Value 32340 24000 24000 25338 22645 19080 54000 67500 , 27473 Inputs: Seeds(.kglha) 50 50 30 120 10 40 1500 0.5 50 Price,kg 9.5 9.5 JO 120 22 18 10 600 9.5 Value 475 475 300 1440 220 720 15000 300 475 Urea(.kg/ha) 120 100 120 140 60 45 120 165 120 Price/kg 8.4 8.4 8.4 a4 8.4 8.4 8.4 8.4 8.4 Value 1008 840 1008 1176 504 378 1008 1386 1008 MOP(k91ra) 30 0 0 30 0 0 60 60 0 Price,kg 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 306 0 0 306 0 o 612 612 0 DAP(.kg/ha) 80 60 80 90 60 30 120 120 80 Price/kg 18.4 18.4 18.4 1a4 18.4 18.4 18.4 18.4 18.4 Value 1472 1104 1472 1656 1104 552 2208 0 0 Mamre(Vha) 1 0 2 2 0 0 0 2 1 Price/t 200 · 200 200 200 200 200 200 200 200 Value 200 0 400 400 0 0 0 400 200 0,emic:als: Value 300 200 300 100 200 100 400 400 300 Total Lal:x:lu-{md/ha) 145 140 110 100 60 50 180 200 145 Hired Labar (md} 14.5 14.0 11.0 10.0 6.0 5.0 18.0 20.0 14.5 l?rice/md 40 40 40 40 40 40 40 40 40 Hired Labar Costs 580 560 440 400 240 200 720 800 580 Total Animal Days(ad} 40 35 35 35 25 25 40 40 40 Hired Animal (adJ 4 3.5 3.5 a5 25 25 4 4 4 Price/ad 80 80 80 80 80 80 80 80 80 AnimalCosiS 320 280 280 280 200 • 200 320 320 320 Tolai Ccsts 4661 3459 4200 5758 2468 2150 20268 4218 2883 Net PradJction Value 27679 20541 19800 19~ 20177 16930 33732 63282 24590 .~-~·.~: -: .~ -:...,· -:··:~ •• '··--·· ---·------·- NEPAL Table 19 lffilGATION SECTOR PRo..ECT Per Ha Financial 0-op Budget Present/WOP-Hill Minor Rehab Scheme Padc:Jlj Padc:Jlj Maize Wheat Oilseeds Pulses Potato Vegetable Fingermillet Output: HYV Local Main Proci.Jce: Yield(t.lra) 3 1.8 1.6 2 0.6 0.7 6.5 8 1.5 Price/! 8250· 8250 8000 8200 19000 15000 4500 4500 7000 Value 24750 14850 12800 16400 11400 10500 29250 36000 10500 By-Proci.Jc1s: Yield—t/ta) • 3.3 27 0 1.2 0.45 0.1 0 0 1 Price/! 900 900 0 410 4860 6000 0 0 700. Value 2970 2430 0 492 2187 600 0 0 700 Total G-css Value 277'i!!J 17280 12800 16892 13587 11100 29250 36000 - 11200 Inputs: Seeds—kglha) 55 55 30 118 15 45 1080 0.5 20 PriceA<g 9.5 9.5 JO 120 22 18 10 600 8.5 Value 523 5225 300 1416 330 810 10800 300 170 Urea—kglha) 60 0 0 45 0 0 60 60 0 PriceA<g 8.4 8.4 8.4 a4 8.4 8.4 8.4 8.4 8.4 Value 504 0 0 378 0 0 504 504 0 MOP—kg/ha) 0 0 0 0 0 0 30 30 0 Price,kg 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 0 0 0 0 0 0 306 306 0 DAP(!<g/ha) 60 0 0 45 0 0 60 90 0 PriceA<g 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 Value 1104 0 0 828 • 0 0 1104 0 0 Mamre(tlha) 1 0 2 2 0 0 3 3 0 Price/t 200 200 200 200 200 200 200 200 0 Value 200 0 400 400 0 0 600 600 0 Chemicals: Value 0 0 0 0 0 0 0 0 0 Tctal Latx::Lr(md/ha) 130 120 90 80 40 35 115 130 100 Hired Labar 0 0 0 0 0 0 0 0 0 l?rice/md 40 40 40 40 40 40 40 40 40 Hired Labo.r Costs 0 0 0 0 0 0 0. 0 0 Total Animal Oays(ad) 30 30 25 28 20 20 30 30 25 Hired Animal 0 0 0 0 0 0 0 0 0 Price/ad 80 80 80 80 80 80 80 80 80 Animal Casis 0 0 0 0 0 0 0 0 0 To1ai C~sts 2331 523 700 3022 330 810 13314 1710 170 Net Proci.Jctia, Value 25390 16758 12100 13870 13257 10290 15936 34290 11030 -------------- - . NEPAL 1 IRRIGATION SECTOR PROJECT Per Ha Financial Crop Budget With Project-Hill Minor Rehab cheme Paddy Paddy Maize Wheat Oilseeds Pulses Potato Vegetable Paddy Output HYV Local spring Main Produce: Yield(t/ha) 3.5 2.5 3 3 1 1.2 12 15 3 Price/t 8250 8250 8000 8200 19000 15000 4500 4500 8250 Value 28875 20625 24000 24600 19000 18000 54000 67500 24750 By-Products: Yield(t/ha) • 3.85 3.75 0 1.8 0.75 0.18 0 0 3 Price/t 900 900 0 410 4860 6000 0 0 907.5 Value 3465 3375 0 738 3645 1080 0 0 2723 Total Gross Value 32340 24000 24000 25338 22645 19080 54000 67500 27473 Inputs: Seeds(kg/ha) 50 50 30 120 10 40 1500 0.5 50 Price/kg 9.5 9.5 .10 12.0 22 18 10 600 9.5 Value 475 475 300 1440 220 720 15000 300 475 Urea(kg/ha) 120 100 120 140 60 45 120 165 120 Price/kg 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 Value 1008 840 1008 1176 504 378 1008 1386 1008 MOP(kg/ha) 30 0 0 30 0 0 60 60 0 Price/kg 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 306 0 0 306 0 0 612 612 0 DAP(kg/ha) 80 60 80 90 60 30 120 120 80 Price/kg 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 18.4 Value 1472 1104 1472 1656 1104 552 2208 0 0 Manure(t/ha) 1 0 2 2 0 0 0 2 1 Price/t 200 200 200 200 200 200 200 200 200 Value 200 0 400 400 0 0 0 400" 200 Chemicals: Value 300 200 300 100 200 100 400 400 300 Total Labour(md/ha) 145 140 110 100 60 50 180 200 145 Hired Labour 14.5 14 11 10 6 5 18 20 14.5 Price/md 40 40 40 40 40 40 40 40 40 Hired Labour Costs 580 560 440 400 240 200. 720 800 580 Total Animal Days(ad) 40 35 35 35 25 25 40 40 40 Hired Animal (ad) 4 3.5 3.5 3.5 2.5 2.5 4 4 4 Price/ad 80 80 80 80 80 80 80 80 80 Animal Costs 320 280 280 280 200 200 320 320 320 Total Costs 4661 3459 4200 5758 2468 2150 20268 4218 2883 Net Production Value 27679 20541 19800 19580 20177 16930 33732 63282 24590 -~·:-:::;._.· . -- ....... ...•. ----·-------- NEP.AI.... Table 21 IRRIGATION SE:CTO'I PAD..ECT Per Ha Financial Oop Budget Present/WOP-OlW Paddy Paddy Maize Wheat Oilseeds Pulses Potato Vegetable Finga-millet Output: HYV Local Main Prod.Jee: Yield(t/ha) 2.4 1.8 1.5 1.5 0.6 0.5 6.5 0 0 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 0 Value 16800 12600 10050 10500 11400 7500 29250 0 0. By-Proci.Jc1S: Yield(t/ha) 26 2.7 0 0.9 0.45 0.07 0 0 0 Price/t 660 660 0 300 5130 6000 0 0 0 Value 1716 1782 0 270 2308.5 420 0 0 o· Total Guss Value 18516 14382 10050 10770 13709 7920 29250 0 0 lnpu1S: Seeds(kg/ha) 60 60 30 100 15 45 1080 0 0 Price,kg 8 8 10 11.0 22 18 10 . 500 0 Value 480 480 300 1100 330 810 10800 0 0 Urea—kg/ha) 45 0 o· 60 30 0 60 0 0 Price,kg 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 338 0 0 450 225 0 450 0 0 MOP(kg/ha) 0 0 0 0 0 0 30 o. 0 Price,kg 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 0 0 0 0 0 0 270 0 0 DAP(kg/ha) 0 0 0 60 30 0 60 0 0 Price,kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 0 0 0 1020 510 0 1020 0 0 Manure(Vha) 0 0 1.5 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 300 0 0 0 0 0 0 aiemicais: Value 0 0 0 0 0 0 0 0 0 Total Latour—md/ha) 125 120 90 75 40 30 115 0 0 Hired Labar 38 36 27 23 12 9 35 0 0 J;>rice/m·d 50 50 50 50 50 50 50 50 50. Hired Labar Costs 1875 1800 1350 1125 600 450 1725 0 0 Total Animal Days(ad) 30 30 25 28 20 20 30 0 0 Hired Animal 6 6 5 5.6 4 4 6 0 0 Price/ad 100 100 100 100 100 100 100 100 100 Hired Animal Costs 600 600 500 560 400 400 600 0 0 Tola! Cos-.s 3293 2880 2450 4255 2065 1660 14865 0 0 Net PrcdJctia, Value 15224 11502 7600 6515 11644 6260 14385 0 0 ::-·: .. . •· ·--- -----~ ------ NEPAL T IRRIGATION SECTOR PROJECT Per Ha Rnancial Crop Budget With Project-DlW Paddy Paddy Maize Wheat Oilseeds Pulses Potato Vegetable Paddy Output HYV Local spring Main Produce: Yield(t/ha) 3.5 2.5 3 3 1 1.2 12 15 3 Price/t 7000- 7000 6700 7000 19000 15000 4500 4500 7000 Value 24500 17500 20100 21000 19000 18000 54000 67500 21000 By-Products: Yield(t/ha) 3.85 3.75 0 1.8 0.75 0.18 0 0 3.75 Price/t 660 660 0 300 5130 6000 0 0 660 Value 2541 2475 0 540 3847.5 1080 0 0 2475 Total Gross Value 27041 19975 20100 21540 22848 19080 54000 67500 , 23475 Inputs: Seeds(kg/ha) 50 50 30 120 10 40 1500 0.5 50 Price/kg 8 8 10 11.0 22 18 10 500 10 Value 400 400 300 1320 220 720 15000 250 500 Urea(kghla) 120 100 100 140 60 45 120· 165 120 Price/kg 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value _900 750 750 1050 450 338 900 1238 900 MOP(kg/ha) 30 0 0 30 0 0 60 60 30 Price/kg 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 270 0 0 270 0 0 540 540 270 DAP(kg/ha) 80 60 60 90 60 30 120 120 80 Price/kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1360 1020 1020 1530 1020 510 2040 2040 1360 Manure(t/ha) 0 0 2 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 400 0 0 0 0 0 0 Chemicals: Value 300 200 300 100 200 100 400 400 300 Total Labour(md/ha) 145 140 100 100 60 50 180 200 145 Hired labour 43.5 42.0 30.0 30.0 18.0 15.0 54.0 60.0 43.5, l?rice/md 50 50 50 50 50 50 50 50 50 Hired Labour Costs 2175 2100 1500 1500 900 750 2700. 3000 2175 Total Animal Days(ad) 40 35 35 35 25 25 40 40 40 Hired Animal 8 7 7 7 5 5 8 8 8 Price/ad 100 100 100 100 100 100 100 100 100 Hired Animal Costs 800 700 700 700 500 500 800 800 800 Total Costs 6205 5170 4970 6470 3290 2918 22380 8268 6305 Net Production Value 20836 14805 15130 15070 19558 16163 31620 59233 17170 _ ..._:.__ :: . ..-..... . -· ..-.. -.~- .:_-.-~•!::~-..:-:_:::-: "._.... ....·.-_ ·:·' ._.--; __ -. •.• -·:·.·.. _ .. ··.-. .... ----------~ NEPAL Table23 IFfllGATlON SECTa=! PRQECT Per Ha Financial 0-Cp Budget Present/WOP-SlW Padd'j Pad6/ 11/aize Wheat OIiseeds Pulses Potato Vegetable Fingermillet OJtput: HYV La:al Main ProciJce: Yield(t/ha) 2.4 1.8 1.5 1.5 0.6 0.5 6.5 0 0 Price/t 7000· 7000 6700 7000 19000 15000 4500 4500 0 Value 16800 12600 10050 10500 11400 7500 29250 0 0 By-ProciJclS: Yield(t/ha) 2.6 27 0 0.9 0.45 0.07 0 O· 0 Price/t 660 660 0 300 5130 6000 0 0 0 Value 1716 1782 0 270 2308.5 420 0 0 0 T01al Gross Value 18516 14382 10050 1ono 13709 7920 29250 0 0 lnpulS: Seeds—kglha) 60 60 30 100 15 45 1080 0 0 Priceft<g 8 8 10 11.0 22 18 10 500 0 Value 480 480 300 1100 330 810 10800 0 0 U-ea(kg,'ha) 45 0 0 60 30 0 60 0 0 Priceft<g 7.5 7.5 . 7.5 7.5 7.5 7.5. 7.5 7.5 7.5 Value 338 0 0 450 225 0 450 0 0 MOP:J—g/ha) 0 0 0 0 0 0 30 0 0 Priceft<g 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 0 0 0 0 0 0 270 0 0 DAP(kg/ha) 0 0 0 60 30 0 60 0 0 Priceft<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 0 0 0 1020 510 0 1020 0 0 ·Manure(tlha) 0 0 1.5 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 300 0 0 0 0 0 0 Olemicals: Va!ue 0 0 0 0 0 0 0 0 0 T01al Labour(md/ha) 125 120 90 75 40 30 115 0 0 Hired Labar 37.5 36 27 22.5 12 9 34.5 0 0 P.rice/md 50 50 50 50 50 50 50 50 50 Labour Costs 1875 1800 1350 1125 600 450 1725. 0 0 Tora! Animal Days(ad) 30 30 25 28 20 20 30 0 0 Hired Animal 6 6 5 5.6 4 4 6 0 0 Price/ad 100 100 100 100 100 100 100 100 100 Animal CoslS 600 600 500 560 400 400 600 0 0 To1al Costs 3293 2880 2450 4255 2065 1660 14865 0 0 Net ProciJctia, Value 15224 11502 7600 6515 11644 6260 14385 0 0 •• :?•-.··.·;::.:·:r-: : ..-.:~-.--:'. - ·--·-·----------·· NEPPL T lffilGATlON SECTO, F'Ao.ECT Per Ha Financial O'Op Budget With Project-STW •Paddt Padc:r; 1\/iaize Wheat Oilseeds Pulses Potato Vege1able Paddy OUtput: HYV Local · spring Main Prod.Jee: Yield(t/ha) 3.5 25 3 3 1 1.2 12 15 0 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 7000 Value 24500 17500 20100 21000 19000 18000 54000 67500 0 8y-ProciJc1S: Yield(tlra) 3.85 3.75 0 1.8 0.75 0.18 0 0 0 Price/t 660 660 0 300 5130 6000 0 0 660 Value 2541 2475 0 540 3847.5 1080 0 0 0- Total Gross Value 27041 19975 20100 21540 22848 19080 54000 67500 0 lnpU1S: Seeds—kg/ha) 50 50 30 120 10 40 1500 0.5 0 Price/kg 8 8 10 11.0 22 18 10 500 8 Value 400 400 300 1320 220 720 15000 250 0 Urea—kg/ha) 120 100 100 140 60 45 120- 165 0 Price,1<g 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 900 750 750 1050 450 338 900 1238 0 MOP—kg/ha) 30 0 0 30 0 0 60 60 0 Price,1<g 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 270 0 0 ZlO 0 0 540 540 0 •DAP—kg/ha) 80 60 60 90 60 30 120 120 0 Price,1<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1360 1020 1020 1530 1020 510 2040 2040 0 Manure(t/ha) 0 0 2 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 400 0 0 0 0 0 0 Dlemicals: Value 300 200 300 100 200 100 400 400 0 Total Labou-(md/ha.) 145 140 100 100 60 50 180 200 0 Hired Labar 43.5 42 30 30 18 15 54 60 0 P.rice/md 50 50 50 50 50 50 50 50 50 Labou- Ccsts 2175 2100 1500 • 1500 900 750 2700 3000 0 Total Animal Days(ad) 40 35 35 35 25 25 40 40 0 Hired Animal 8 7 7 7 5 5 8 8 0 Price/ad 100 100 100 100 100 100 100 100 100 AnimalCcS15 800 700 700 700 500 500 800 800 0 Tolal Casts 6205 5170 4970 6470 3290 2918 22380 8268 0 Net Prod.Jctia, Value 20836 14805 15130 15070 19558 16163 31620 59233 0 -... - :•,. . • ... •.·· ... ..··. :~:~-:,:~ .•. ..~---J~.:):~.- •• • - ·- - ... ----~· •.... . . -. - - . • .:· ...•·....:·--,::.. •:·..··• ··.. -~··i:/r:).; ·_=···· NEPAL Table 25 IPfllGAilON SECTa=l PAQ.ECT Per Ha Financial Oop Budget PresentJWOP-Terai TLnl Over Scheme Paddy Padcy lv'iaize Wheat Oilseeds Pulses Potato Vegetable Maize OUtput: HYV· Local summer si:ring Main Prod.Jee: Yield(.l/ha) 26. 1.8 2 1.8 0.6 0.6 9.5 9.5 2 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 6700 Value 18200 12600 13400 12600 11400 9000 42750 42750 13400 By-Prod.Jets: Yield(t/ha) 2.86 2. 7 0 1.08 0.45 0.09 0 0 0 Price/t 660 660 0 300 5130 6000 0 0 0 Value 1887.6 1782 0 324 2308.5 540 0 0 0. Total 0"css Value 20088 14382 13400 12924 13709 9540 42750 42750 13400 lnpu1S: Seeds(!<glha) 55 55 30 100 15 40 1080 0.8 30 PriceA<g 8 8 10 11.0 22 18 10 500 10 Value 440 440 300 1100 330 720 10800 400 300 Urea.(!<glha) 45 0 30 45 30 0 90. 90 30 PriceA<g 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 Value 338 0 225 338 225 0 675 675 225 MOP(!<g/ha) 0 0 0 0 0 0 30 30 0 PriceA<g 9.0 9.0 9.0 9.0 9.0 · 9.0 9.0 9.0 9.0 Value 0 0 0 0 0 0 270 270 0 DAP(!<g/ha) 45 0 30 45 30 0 90 90 30 PrieeA<g 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 765 0 510 765 510 0 1530 1530 510 Mamre(Vha) 0 0 2 0 0 0 0 0 2 Price/t 200 2po ,200 200 200 200 200 200 200 Value 0 0 400 0 0 0 0 0 400 aiemicals: Value· 0 O· 0 0 0 0 0 0 0 Total Laootr(md/ha) 125 120 90 80 40 30 130 150 90 Hi"edl.abar 37.5 36 27 24 12 9 39 45 27 f'rice/md 50 50 50 50 50 50 50 50 50 Labotr Costs 1875 1800 1350 1200 600 450 1950 2250 1350 Total Animal Days(ad} 30 30 25 28 20 20 30 30 25 HiredMimal 6 6 5 5.6 4 4 6 6 5 Price/ad 100 100 100 100 100 100 100 100 100 Animal Costs 600 600 500 560 400 400 600 600 500 Total Costs 4018 2840 3285 3963 2065 1570 15825 5725 3285 Net Proci.Jetia, Value 16070 11542 10115 8962 11644 7970 26925 37025 10115 .. -·· -·--·---. ·-- -- -··•·---- NEF'I\L T IRAIGATlON SECTa=t PAo..ECf Per Ha Financial Ollp Budget With Project-Ts:al Tum Over Scheme Paddy Paddy MaiZe Wheat Oilseeds Pulses Potato Vege1able Paddy Output: HYV Local summer spring Main Prod.Jee: Yield—t/ha) 3.5 25 3 3 1 1.2 12 15 3 Price/t 7000 7000 6700 7000 19000 15000 4500 4500 7000 Value 24500. 17500 20100. 21000 19000 18000 54000 67500 21000 8y-Prod.Jc1S: Yield(tft"a) 3.85 3.75 0 1.8 0.75 0.18 0 0 3.3 Price/t 660 660 0 300 5130 6000 0 0 660 Value • 2541 2475 0 540 3847.5 1080 0 0 2178 Total G-oss value 27041 . 19975 20100 21540 22848 19080 54000 67500 23178 Inputs: Seeds()<gtha) 50 50 30 120 10 40 1500 0.5 50 Price/kg 8 8 10 11.0 22 18 10 500 8 Value 400 400 300 1320 220 720 15000 250 400 Urea()<gtha) 120 100 100 140 60 45 120 165 120 Price/kg 7.5 7.5 7.5 7.5 7.5 7.5 7.5· 7.5 7.5 Value 900 750 750 1050 450 338 • 900 1238 900 MOPQ<:g/ha) 30 0 0 30 0 0 60 60 30 Price/kg 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 Value 270 0 0 270 0 0 540 540 270 DAPQ<:g/ra) 80 60 60 90 60 30 120 120 80 Price/kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 1360 1020 1020 1530 1020 510 2040 2040 1360 Manure(t,'ha) 0 0 2 0 0 0 0 0 0 Price/t 200 200 200 200 200 200 200 200 0 Value 0 0 400 0 0 0 0 0 0 Olemicals: Value 300 200 300 100 200 100 400 400 300 Total Labour(md/ha.) 145 140 100 100 60 50 180 200 145 Hired Labar 43.5 42 30 30 18 15 54 60 43.5 Price/md 50 50 50 50 50 50 50 50 50, t.abour Costs 2175 2100 1500 1500 900 750 2700 3000 2175 Total Animal Days(ad) 40 35 35 35 25 25 40 40 40 Hired .Animal 8 7 7 7 5 5 8 8 8 Price/ad 100 100 100 100 100 100 100 100 100 .Animal CoS1S 800 700 700 700 500 500 800 800 800 Tclal Costs 6205 5170 4970 6470 3290 2918 22380 8268 6205 Net Prod.Jcticn Value 20836 14805 15130 15070 19558 16163 31620 59233 16973 ~ ·-·· . -·'· , ..-:_~: -··.•• > • - - • . - • • • • - - • M • - -• ...-------- ---------- NEPM.. Table'Z! IP.AIGATION SECTO, f'Ao.ECT Per Ha Financial 0-Cp Budget PresentJWOP-HII Ta.nt Over S~me Paddy Paddy MaiZe Wheat Oilseeds Pulses Potato Vege1able Maize Output: HYV Local summer . spring Main Prod.Jee: Yield(tJha) 25 2 2 2 0.6 0.7 10 0 2 Price/t 8250 8250 8000 8200 19000 15000 4500 4500 8000 Value 20625 • 1650) 16000 16400. 11400 10500 45000 0 16000 By-Prod.Jets: Yield(t/ha) 275 3 0 1.2 0.45 0.1 0 ·o 0 Price/t 900 900 0 410 4860 6000 0 0 0 Value 2475 2700 0 492 2187 600 0 0 0 Tata.I Gress Value 23100 19200 16000 16892 13587 11100 45000 0 16000 Inputs: Seeds—k~a) 60 60 30 100 15 45 1080 0 30 Price/kg 9.5 9.5 10 120 22 18 10 600 10 Value 570 570 300 1200 330 810 10800 0 300 Urea—k~a) 30 20 20 45 0 0 45 0 20 Price/kg 8.4 8.4 8.4 a4 8.4 8.4 8.4 8.4 8.4 Value 252 168 168 378 0 0 378 0 168 MOP—kg/ta) 0 0 0 0 0 0 30 0 0 Price/kg 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 0 0 0 0 0 0 306 0 0 DAP—kg,ira) 30 20 20. 60 0 0 45 0 20 Price/kg 18.4 18.4 18.4 1a4 18.4 18.4 18.4 18.4 18.4 Value 552 368 368 1104 0 0 828 0 368 Mam.re(tlha) 2 2. 2 2 0 0 4 0 2 Price/t 200 200 200 200 200 200 200 200 200 Value 400 .400 400 400 0 0 800 0 400 Oiemicals: Value 0 0 0 0 0 0 0 0 0 Tata.I Lal:x:tr—md/ha) 125 120 90 75 40 35 150 0 90 Hired Labar 0 0 0 0 0 0 0 0 0 Price/md 40 40 40 40 40 40 40 40 40 Hired Labar Costs 0 0 0 0 0 0 0 0 0 Total Animal Days(ad) 30 30 25 28 20 20 40 0 25 Hired Animal 0 0 0 0 0 0 0 0 0 Price/ad 80 80 80 80 80 80 80 80 80 Animal Costs 0 0 0 0 0 0 0 0 0 To1al Cos-.s 1774 1506 1236 3082 330 810 13112 0 1236 Net Prod.Jctia, Value 21326 17694 14764 • 13810 13257 10290 31888 0 14764 :. ·.•:~:\-:· ·:.::.: <:··:•?- .... ·-·--- --··. ···-·-·-----·· - NEPM.. 1 IPRIGATION S=CTCA PAo.ECT Per Ha Financial O'op Budget With Project-HIii Tum Over Sctrne Padc:Jlj Padc:Jlj 11/aize Wheat Oilseeds Pulses Potato Vegelable Paddy Output:. HYV Local sr::ring Main ProciJce: Yield(t/ha) 3.5 25 3 3 1 1.2 12 15 0 Price/t 8250 8250 8000 8200 19000 15000 4500 4500 8250 Value 28875 20625 24000 24600 19000 18000 54000 67500 0 By-Prcc:iJC1S: Yield(t/ha) 3.85 3.75 0 1.8 0.75 0.18 0 0 0 Price/t 900 900 0 410 4860 6000 0 .o 907.5 Value 3465 3375 0 738 3645 1080 0 0 o. Total Gross Value 32340 24000 24000 25338 22645 19080 54000 67500 0 Inputs: Seeds—kglha) 50 50 30 120 10 40 1500 0.5 0 PriceA<g 9.5 9.5 10 120 22 18 10 600 9.5 value 475 475 300 1440 220 720 15000 300 0 U-ea—kglha) 120 100 120 140 60 45 120. 165 0 PriceA<g 8.4 8.4 8.4 8.4 8.4 8.4 8.4 8.4 a4 Value 1008 840 1008 1176 504 378 1008 1386 0 MOP—kg/ha) 30 0 0 30 0 0 60 60 0 PriceA<g 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 10.2 Value 306 0 0 306 0 0 612 612 0 DAP—kg/ra) 80 60 80 90 60 30 120 120 0 PriceA<g 18.4 18.4 18.4- 18.4 18.4 18.4 18.4 18.4 18.4 Value 1472 1104 1472 1656 1104 552 2208 0 0 Mamre(~ha) 1 0 2 2 0 0 0 2 0 Price/t 200 200 200 200 200 200 200 200 200 Value 200 0 400 400 o 0 0 400 0 Olemica!s: Value 300 200 300 100 200 100 400 400 0 Total Latx::u-(md/ha) 145 140 110 100 60 50 180 200 0 Hi"edlabar 14.5 14 11 10 6 5 18 20 0 Price/md 40 40 40. 40 40 40 40 40 40. Hired Labar Costs 580 560 440 400 240 200 720 800 0 Total Animal Days(ad) 40 35 35 35 25 25 40. 40 0 Hi"edAnimal 4 3.5 3.5 3.5 25 25 4 4 0 Price/ad 80 80 80 80 80 80 80 80 80 Animal Costs 320 280 280 280 200 200 320 320 0 Total Costs 4661 3459 4200 5758 2468 2150 20268 4218 0 Net Prcc:iJctia, Value 27679 20541 19800 19580 20177 16930 33732 63282 0 ··--· ----- NEPAL IRRIGATION SECTOR PROJECT Table 29 Per ha ffnanclal Crcp Budget-J;JM Presant/NOP Kharif Rabi hot s•a•on Paddy Paddy Paddy Jute Jute oiJuedl Wheat Oilseeds Pulses Potato Potato Sugarc:an• vegeiablea Jut• Ou1put: lrrig•ted Irrigated rainted i'rigated ralnted n'ig■ ted rainfed lrrigatlld HYV local Main Produce: Ylold(l/ho) 3 2A 1.8 0.8 0.8 0 15 a.a 05 8 35 0 0 Pric•/l 7000 7000 7000 13600 1"500 7000 19000 15000 •soo •500 1000 t:l500 Value 21000 16800 12800 10800 B100 0 10500 11400 7500 36000 22500 35000 0 0 By-Products: Ylold(l/ho) 32 3 2.7 09 0.45 0.07 0 0 0 Price/t 060 860 060 300 5130 0000 0 0 0 Value 2112 1980 1782 0 0 0 270 2309 •20 0 0 0 0 0 Total Gross Yak.I• 23112 18780 14.182 10800 8100 0 10770 13709 7920 36000 22500 35000 0 0 Inputs: Suds(kg,lio) so 00 60 10 10 100 15 •s 1120 1000 0000 0 Price/kg 8 8 8 45 ,s 11 22 18 10 10 45 Value •oo 480 '80 ,so ,so 0 1100 330 810 11200 10000 0000 0 0 u,..(kg/ho) ,s 45 00 00 30 0 40 0 00 0 Prico/kg 75 75 75 75 75 75 75 75 75 75 75 75 75 75 Value 337.5 337.5 0 450 0 0 ,so 225 0 300 0 ,so 0 0 DAP(kg/ha) 0 0 00 so 30 0 so 0 00 0 Price/kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 0 0 0 1020 0 0 1020 510 0 850 0 1020 0 0 MOP(kg/ho) 0 0 0 0 0 0 0 30 0 Pric•/kg 9 9 9 9 9 9 • 9 9 • 9 9 9 9 Value. 0 0 0 0 0 0 0 0 0 0 0 270 0 0 Manu-•(tha) 0.0 0.0 0.0 0.0 0.0 0.0 0 0 Prlce/t 200 200 200 200 200 200 200 200 200 200 200 200 200 200 Valu• 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Chemicals: Value 0 0 0 0 0 300 0 Total Labou-(md/ha) 130 125 120 90 75 75 40 30 120 110 200 0 Hired Labo11 (md) 39.0 37.5 38.0 27.0 22.5 0.0 22.5 12.0 9.0 38,0 33.0 ea.a 0.0 0.0 Pric•hnd so 50 50 50 50 50 50 50 50 50 so 50 Labow Costs 1960 1875 1800 1350 1125 0 1125 000 ,so 1800 1050 3000 0 0 Tomi Animal Oays(ad) JO 30 30 37 37 28 20 20 30 JO ,o 0 hWed Animal (ad) 0.0 0.0 0.0 7A ,.. 0.0 5.8 ,.o ,.o 0.0 0.0 8.0 0.0 0.0 Prico/ad 100 100 100 100 100 100 100 100 100 100 100 100 Animal Costs 500 000 600 740 740 , 560 400 ,oo 000 600 BOO 0 0 Total Costs 3288 3293 2880 4010 2315 0 •255 2065 1600 14750 12250 11840 0 0 Not Production Val1.,• 19825 15488 11502 5790 5785 0 8515 11844 5280 21250 10250 23160 0 0 .. c ,;• .. •·· ·•· ·-· •...~: : ••• \.:~;~)~/.;:{ -·-··. __•_____ • -- ·--· ·-·-·-·· -·-···· N;l'A. l'R<IATIONS:CTCAPRO.E<:T Tobi P• ...Fnnaol Cop Bulgot-fUA - Projoct Hal- l<lwf Aaoi - --.i.. .i.. c,;boodo - t -· No. - p- -----.i.. ... Aldcly iu- c,; o..c,,..i: ·rig- -rig- tair'lfld irrigllad ·- irrig...s - nlgalod - H'M local ~Produce: '1old(tlho) 0.1 ... 1.2 1.S 1.2 1.2 15 • .. .. 1.2 0 Priooll 7000 7000 7- 13100 ..... 10000 ,_ 19000 1.- ,.... .... 1000 .... ..... 1.... 7- 0 -- 20700 1MOO 0 ..... 0 20SOO 21000 ..... 10000 07500 • ..... .,... 10200 0 ..... 0 B,-f'roducts: '1old(l/l'a) ... ... 0 1.12 1.1 o.• 0.17 0 0 0 •.2 Primlt ooo HO HO 5UO ... 1120 .... 0 0 0 000 -- .... 2772 0 0 17'1 540 4017 1020 • 0 0 0 0 2772 ·o Total O,on ......_ ..... 22372 • 10200 0 342CI ..... 27417 1110:ZO 07500 10000 .,... 10200 0 >0772 0 r,p,b: -~, .. •o 0 10 0 .. 120 10 .. 1100 0 .0200 2 10 0 .. Pri09,tcg • • 06 •• 22 11 22 18 10 10 I ..... •6 .. -- 000 ••o 0 ... 0 ... 1320 230 110 16000 0 .... .... ... 0 400 0 U,ao(kg.t\•) 120 46 .. .. 140 so .. 120 • 120 ISO 10 0 120 Pri09Al:g 7.S 7.6 7.6 7.S 7.5 7.6 7.5 7.5 7.S 7.5 7.6 7.S 7.6 7.6 7.5 - ... U7.5 0 ... 176 1050 ... ~7.& ... 0 ... ·1125 ... 0 ... 0 OAl'(kejla) .. 20 .. .. .. .. ... .. 120 120 .. 0 .. Pri09,1cg J7.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 t7.0 17.0 - 1530 510 1020 0 1020 1120 1020 510 1020 0 .... .... 1020 0 1530 0 MCP(lcgih9) 30 0 ... 0 0 120 0 20 .. 0 Prim,1,cg • • • , , • • • • • -- 270 0 0 0 0 0 270 0 0 10,0 • 270 ... 0 0 0 _,.._, 0,0 0.0 o.o 0.0 0 0.0 Pricoll 200 200 200 200 ... 200 200 200 200 :zoo 200 200 200 200 200 200 200 - 0 0 • 0 0 0 0 0 0 • 0 0 0 et.cnicel.:s: - 200 ... 100 200 100 - 1000 400 0 200 T- ~mdha) U6 140 100 0 100 100 .. 50 100 0 200 200 100· 0 I .. lirodL.,.,..(md) ...6 "2.0 0.0 30.0 0.0 20.0 20,0 11.0 H.O M.0 0.0 10.0 IO.0 30.0 o.o .... 0,0 Prim,nd .. 60 60 .. .. .. .. .. 50 .. .. .. .. .. .. .. .. L,._.Co.ts 2178 2100 1100 0 1600 1500 - 750 2700 .... 2000 .1800 0 2178 0 T- An- Oo'P(ad) .. 3& .. 20 20 26 .. .. 0 .. .. 20 0 .. ...... _,od) 0,0 7,0 0,0 1,0 0,0 •.o o.o 6.0 ... 1.0 •-• 0.0 0,0 1.0 o.o 1,0 0.0 Prim/ad 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 AnimelCcnl• 000 700 0 500 0 ... ... 100 ... 000 0 ... ... 100 0 100 Tot.1Co311:.s 5378 4,:ZD 4020 0 4525 1370 .... .... 21000 14210 -11~ .... 0 1105 0 N«Prodl.Jeb'IV-.. 251D 15246 121aa 0 20521 15170 24017 1C012, ...... 3&790 ..... 12150 0 24857 0 . .~·..:: .-·:-: ~ ~ · · · 4 . • •,:<:.~·,::·:;_'_:·· • .• -• ----- - --- NEPAL IRRIGATION SECTOR PROJECT Table 31 Por Ha Financial crop Budgot - SMIP Ill Ph■ H I Present Kharif Rabi hot •••on Paddy Paddy Paddy Jute Juto oilaHds Wheat Oi:M•d:s Pulses Potato Potato Sugarcane vegetables Jute Output: Irrigated Irrigated rainf•d i'rlgated rainfad irrigated minfed lrrigalld HYV local Main Produce: Ylold(l/ha) 3 2.4 1.8 0.8 0.ll 0 1.S O.ll o.s 5 35 0 0 Prlc•lt 7000 7000 7000 13500 13500 7000 19000 15000 4500 4500 1000 13500 Value 21000 usa00 12800 1ce00 1100 0 10500 11400 7500 38000 22500 35000 0 0 By-ProduCU: Ylold(l/ha) 32 3 2.7 0.9 0.45 0.07 0 0 0 Price/l 160 160 160 300 5130 0000 0 0 0 Value 2112 1980 1782 0 0 270 2309 420 0 0 0 0 0 Total Gross Value 23112 18780 14382 10800 8100 0 10770 13709 7920 36000 22500 35000 0 0 Inputs: Soods(kg,1111) so 60 60 10 10 100 15 45 1120 1000 1000 0 Price/kg 9 8 45 45 11 22 18 10 10 1 45 Valuo 400 480 480 450 450 0 1100 330 010 11200 10000 0000 o· 0 UrM(kg/ha) 45 45 80 10 30 0 40 0 10 0 Pric•Jkg 7.S 7.S 7.S 7..S 7.S 7.S 7.S 7.S 7.S 7.S 7.S 7.S 7.S 7.S Value 337.S 337.S 0 450 0 0 450 225 0 300 0 ,so 0 0 OAP(kg/ha) 0 0 10 60 30 0 50 0 00 0 Price/kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 • 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Value 0 0 0 1020 0 0 1020 510 0 850 0 1020 0 0 MOP(kg/ha) 0 0 0 0 0 0 0 30 0 Price/kg 9 9 9 9 9 ~ 9 9 9 9 9 9 g 9 Value 0 0 0 0 0 0 0 0 0 0 0 270 0 0 .Manu-o(U,.) 0.0 0.0 0.0 0.0 0.0 0.0 0 0 Price/I 200 200 200 200 200 200 200 200 200 200 200 200 200 200 Value 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Chemica11: Value 0 0 0 0 0 300 0 Tota.I Labou-(md/ha) 130 125 120 90 75 75 40 30 120 110 200 0 Hired Labou- ~d) 39.0 37.5 38.0 27.0 22.S 0.0 22.5 12.0 9.0 36.0 ~3.0 10.0 0.0 0.0 Pric•hnd 50 50 so 50 so 50 50 so 50 50 50 50 Labout Costs 1950 1875 1800 1350 1125 0 1125 100 450 1800 1050 3000 0 0 Tola.I Animal Oays(ad) 30 30 30 37 37 28 20 20 30 30 40 0 hind Animal ~d) 0.0 0.0 0.0 7,4 7.4 0.0 5.ll 4.0 4.0 1.0 0.0 8.0 0.0 0.0 Price/ad 100 100 100 10(! 100 100 100 100 100 100 100 100 Animal Costs 600 600 100 740 740 0 560 400 •oo 800 600 800 0 0 Total Costs 3288 3293 2880 4010 2:,15 0 4255 2005 IMO 14750 12250 11840 0 0 N«tt Production Value 19825 15488 11502 6790 5785 0 5515 11644 . 0280 21250 10250 23110 0 0 .--..,. ..-'· - ····---··--------- --·- ······-- ~ NEPAL IRRIGATION SECTOR PROJECT Teble: Per H ■ Financial Crop Budget - SMIP III Phase I Without Piojlct Khar~ Rabi hot steson Paddy Paddy Paddy Jute JUie oilsHds Wheat Oilseeds Pulses Potato Potato Sugarcane vegetabfH Jut• Output: Irrigated Irrigated rainf■d irrig■t•d rainf■ d Irrigated rainfed lrrigaled HYV local Main Produc■: Yield(l/ha) 3.3 2., 1.8 a.a a.a 0 1.S a.a 0.5 5 ,a 0 0 Pric■1' 7000 7000 7000 13500 13500 7000 19000 15000 4500 4500 1000 13500 Valu■ 23100 15800 12'100 10800 8100 0 12'100 11400 7500 36000 22500 40000 0 0 By-Products: Yleld(I/IUI) 3.5 3 2:J" 1.1 0.4S OD7 0 0 0 Pric ■/1 850 850 850 300 5130 8000 0 0 0 Valu■ 2310 1980 1782 0 0 0 330 2309 420 0 0 0 0 0 Total Gross Value 25'10 18780 14382 10800 8100 0 12930 13709 7920 36000 22500 40000 0 0 Inputs: Suds(kg,ha) 50 80 50 10 10 100 15 45 1i20 1000 8000 0 Price/kg 8 8 ,s ,s 11 22 18 10 10 ,s Vafu• ,00 ,ea 480 450 450 0 1100 330 810 11200 10000 8000 0 0 Urea(kg/ha) 100 45 50 100 30 0 40 0 100 0 Price/kg 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 75 7.5 7.5 7.5 V•lu■ 750 337.5 0 450 0 0 750 225 0 300 0 750 0 0 OAP(kg/ha) 75 0 so 75 30 0 50 0 100 0 Pric■/kg 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 17.0 Valu• 1275 0 0 1020 0 0 1275 510 0 850 0 1700 0 0 MOP(kg/ha) 25 0 25 0 0 0 0 30 0 Pric■/kg 9 9 9 9 9 '9 9 9 9 9 9 9 9 9 V,alu• 225 0 0 0 0 0 225 0 0 0 0 270 O· 0 M■ nu-■ (t.-N) a.a OD 0.0 0.0 OD 0.0 0 0 Pric■/1 200 200 200 200 200 200 200 200 200 200 200 200 200 200 Valu• 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Chemicals: Valu• 0 0 0 0 0 300 0 Total Labow(md/ha) 140 125 120 90 75 100 •o 30 120 110 200 0 Hi'•d Labow (md) 42.0 37.5 36.0 27.0 22.5 0.0 30.0 12.0 9.0 38.0 33.0 80.0 OD OD Price,ffld 50 50 50 50 50 so so 50 so 50 so so Labow Costs 2100 1875 1800 1350 1125 0 1500 500 450 1800 1050 3000 0 Total Animal Oays(ad) 30 30 30 37 37 28 20 20 30 30 40 0 hi' ■ d Animal (ad) 8.0 SD 8.0 7.4 7.4 0.0 5.8 4.0 4.0 8.0 8.0 B.O 0.0 0.0 Pric ■/ad 100 100 100 100 100 100 100 100 100 100 100 100 Animal Costs 800 800 500 740 740 0 550 400 ,oo 600 800 BOO 0 0 Total Costs 5350 3293 2880 4010 2315 0 5410 2065 1880 14750 12250 12820 0 0 Net Production Value 20060 1S&88 11502 8790 5785 0 7520 11s,, 8260 21250 10250 27180 0 0 .. ----- --·----·-·· .·-· ····--- ·-------- l'EPA. fRW.TlON 9:CT~ PRO.ECT T-33 '1f' H•Firwlcal C,q, 8Jdget - SMPIIIA-a. I ...,.t,Projoct Hol- Kiwi - --~ ..i.to ..i.to ..-- I - ""'- - -~---- ..i.to .AM f'llddy su- ..- Oo..tpu: .•rio- •rio- - ffigallld ...,lod krignd - ftigallld - H\'V - -~ 'rllld(llho) ... • 0 1.3 0 l.t • I.S 1.• ,. 0 so ,. I.> 0 • 1.S Prim/! 7000 7000 7000 13t00 1>500 10000 7000 1.- 15000 4IOO .... 1000 ...,. 1>500 1>500 7000 0 1.- _,. - 21000 t711SO - 21000 2atoo I - naoo 0 - 07too 17550 0 2tooO 0 28too By--Products: 'rllld(IJl-e) ... ... 1.12 1.• 0.1 0.17 • • ... 1.12 Prim/! ••o ••• ... .,.. ... 11130 0000 • uo 11>0 - 2131 2772 0 • .,.. ... 4•17 1020 0 • 0 0 0 0 2772 0 .... TctalCltON.....,_ ...,. 22772 17580 ..... .,... ::13117 20520 naoo 0 •oooo "7too 171550 0 >0772 0 ..... lnp<.a: Seod4(1<gt,a) so .. 0 10 10 120 ,. ca 1500 0 &200 2 10 .. ,. PrlcaJtg .. .. 22 ,, 22 1• 10 10 2000 .. •• • 22 _,. - 480 ... ... 1>20 »o 010 15000 0 C200 4000 ... 0 - 0 ... Ur-;.t,.) 120 .. .. .. 140 so " 120 0 120 150 .. 0 120 .. Prim.l<Q 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.S 7.5 7.5 7.G 7.S 7.5 _,. ... 3.37.15 450 0 175 1050 ••o =.7.15 - - 11211 ... 0 ... 0 075 D-""li<lJN) .. .. .. .. .. .. •o .. 0 120 120 .. .. .. Prioalkg 17.0 17.0 17,0 17.0. 17.0 17.0 17.0 17.0 17.0 17.0 17,0 17.0 17.0 17.0 17.0 17,0 17.0 17.0 - 1530 510 1020 0 1020 11530 1020 510 1020 0 2040 .... 1020 0 15>0 0 1020 M<P(lc~) •o 0 . 30 0 120 .. .. 0 Prtmt<g I I I • .• • • • • • • • • • - 270 0 0 0 0 270 0 • IOIO 0 270 ... 0 0 0 0 .......o\111"8, o.o 0.0 o.o o.o 0 o.o Prioe,1 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 _,. 0 0 0 0 0 0 0 0 0 • 0 0 0 0 0 0 0-.mic..::: _,. 300 ... 100 200 100 - • 1000 - 0 ... ... T - ~ m - ) 1.. 140 0 100 100 100 ao .. 150 0 200 200 100· 0 1.. 100 liredLobour (mdl 43.5 42.0 0.0 .... o.o >O.O >0.0 11.0 111.0 54.0 o.o 00.0 oo.o .... o.o 43.5 o.o >O.o Prioe.l'nd .. .. ao .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. LecuCosb 2175 2100 1500 0 1500 1000 - 750 2700 0 .... .... 1500 0 2175 0 1500 T-Mimolc:.-,o(ed) .. •• .. 0 .. .. 2• 25 .. .. .. .. 0 •o .. ...ed ....... (od) a.o 7.0 o.o 0.0 o.o o.o 1.0 •.o 0.0 c.o o.o a.o a.o o.o 0.0 •.o o.o o.o Prtoe1ad 100 100 100 100 100 100 100 100 100 100 100 100 too 100 100 100 100 100 .Anirn.rCo•• ... 700 000 0 ... ... ... 500 ... 0 ... ... ... 0 ... 0 100 T-Cob 4375 412& 4020 .... 1370 ••oo .... 21- 0 14210 11IOS 4020 11015 4425 Netp;oduolionv.lue .ZIHUl3 1.... 131530 2N21 11170 29717 171113 - 0 ..,... """" 135>0 24H7 294121 _.· .·.: ~'. ··-· -·- --· -------·· -·------- NEPAL Irrigation Sector R-oject Farm Budgets and Cost Recovery (N Rs) MJRT MIRT DTW STW TOT I WOP WP WOP WP WOP WP WOP WP WOP WP WOP Farm Size (ha) 1.3 1.3 1.3 1.3 1.3 Gross Value of Output 24280 65000 40100 65000 28500 72075 28510 68670 37815 65140 18790 Cash Input Costs 5130 15700 6710 16280 6540 17970 6410 16930 8260 16180 4820 Net Value of output 19150 49300 33390 48720 21960 54105 22100 51740 29555 48960 13970 Water Charges 1/ 0 0 0 0 0 0 0 0 0 0 260 O&M Costs2/ 0 780 0 780 0 3540 0 4200 0 780 0 Loan Servicing 3/ 1875 712 1178 3462 228 Total Fixed Costs 0 2655 0 1492 0 4718 0 7662 0 1008 260 Farm Income 19150 46645 33390 47228 21960 49387 22100 44078 29555 47952 13710 Incremental (NRs) 27495 13838 27427 21978 18397 Incremental (%) 144% 41% 125% 99% 62% Per Capita Income 4/ 7055 NRs 2736 6664 4nO 6747 3137 3157 6297 4222 6850 1959 USS 48 117 84 118 • 55 124 55 110 74 120 34 , / Water charges at NRs 200/ha/year in WOP and NRs 400/ha/year in WP for Joint management public surface i'rigation systems. 21 O&M costs ror rarmer-owned and managed irrigation systems ( NRs 600/ha/year rcr surface irrigation In teral, NRs 2,720/ha/year ror DTW and NRs.3,23o/ha, for STW). 3/ Loan servicing estimated rrom 1997 Irrigation Policy ror rarmers contributions at interest rate er 15% per year over 7 years. 4/ Family size of 7 perscns in terai and 6 persons in h~ls. Farm Size—ha) Gross Value of Ou1put Cash Input Costs 'let Value of output ,,\late- Charges J&M Cos1S .oan Se-vicing ·atal Fixed Co51S .arm Income 1cremental (NRs) •icremental {%) .er Capita lncome 4/ As ~
24235 3462
4375 4935 57415 33,180 137% 9569
WOP 14170
13370
13370 2228
NEPAL lnigation Secta" Project Farm Budgets and Cost Recovery (NAs)
2064 2694 30606 17236 129% 5101
WOP 19755 1545 18210
18210 3035
1510 2140 34460 16250 89% 5743
WOP 22960 2360 20600
20600 3433
32731 12131 59% 5455 96 • Table35 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Rajkulo Major Rehab-Surface Scheme-Terai (1460 ha) Irrigation Civil Works: Intake structure Conduit RCC Barrel Setling Basin Drop structure Bridges Cross drainage str. Escape str. Outlets RR Masonary lining Ch Canal network Subtotal Hydrology study Vehicle Equipment wuo Private sector/NGO strenghtening Agric extension Training Consultant services M&E Recurrent Costs Physical contingencies1 / Total 1/ Physical contingencies for civil works. Unit no no no no no no no no Is ha Quantity
1460 Unit Price Total (NRs) (NRs'OOO)
2467 6000 1035
3560 6140 '5370
4500 6139 87604
Table 36 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Siyari Minor Rehab Surface Scheme-Terai (882 ha) Irrigation Civil Works: Intake structure River training Divide structure Proportional divider Bridges Canal Network reshaping Subtotal Hydrology study Vehicle Equipment wuo Private sector/NGO strenghtening Agric extension Training& Study tour Consultant services M&E Recurrent Costs Physical contingencies 1/ Total 1/Physical contingencies for civil works. Unit no no no no no Is Quantity
Unit Price Total (NRs) (NRs'OOO)
1497 3642
2150 3710 3245
2730 1399.5 31081.4
Table 37 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Kalika Tar Major Rehab Surface Scheme-Hill (105 ha) - Irrigation Civil Works: Intake structure Main canal Super passages Bridges Outlets RR Masonary lining Ch Canal network Subtotal Hydrology study Vehicle Equipment wuo Private sector/NGO strenghtening Agric extension Training Consultant services M&E Recurrent Costs Physical contingencies 1/ Total 1/ Physical contingencies for civil works. Unit no no no no no Is ha Quantity
Unit Price (NRs'OOO) 1~18 3964 1886
Total (NRs'OOO) 1318 • 3964 1886
2023 9337
1120 12214
Table 38 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Chinchhu Minor Rehab Surface Scheme-Hill (135 ha} Irrigation Civil Works: Intake structure Conduit Setling basin Retaining wall cross drainage Str. Pipe installation Outlet Madanchaur RR masonary lining Canal network reshaping Subtotal Hydrology study Vehicle Equipment wuo Private sector/NGO strenghtening Agric extension Training Consultant services M&E Recurrent Costs Physical contingencies1 / Total 1/ Physical contingencies for civil works. Unit no no no no no m no m ha Quantity
Unit Price Total (NRs} (NRs'OOO}
1053.6 12593.8
Table 39 Capital Costs: Well construction Well Drilling: Mobilization & Site Supervision Drilling of 250 m dia pilot hole Eletric Logging Reaming Hole-375 mm dia reaming Hole-450 mm dia Reconditioning & Pipe Lowering Gravel Packing Brick Work by Rig Machine Cementation Chemical treatment Well Development Pump Tests Pipe & Materials Miscelleneous Subtotal Pump & accessories: VT pump-25hp diesel engine Tools & spareparts plus a set of battery Subtotal Civil Works: Pump house Baffle tank Subtotal-brick lined Ch Physical contingencies 1/ Total-open lined Ch. Buried pipe Physical contingencies 1/ Total-buried piped Ch. 1/ Physical contingencies for civil works. NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-DTW (1OOm Depth) VT Pump with 25 Hp diesel Engine Unit Is m Is m m m m hr m kg hr set Quantity Unit Price (NRs) Total (NRs)
Table 40 Capital Costs: Well construction Well Drilling: Mobilization & Site Supervision Drilling of 250 m dia pilot hole Eletric Logging Reaming Hole-375 mm dia reaming Hole-450 mm dia Reconditioning & Pipe Lowering Gravel Packing Brick Work by Rig Machine Cementation Chemical treatment Well Development Pump Tests Pipe & Materials Miscelleneous Subtotal Pump & accessories: Centrifugal pump-5 hp diesel engine Tools & spareparts plus a set of battery Subtotal Civil Works: Pump house Baffle tank Structures Subtotal Physical contingen'cies 1/ Total 1/ Physical contingencies for civil work rks. NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-STW (35 m Depth) VT Pump with 25 Hp diesel Engine Unit Is m Is m m m m hr m kg hr hr m set Quantity Unit Price (NRs) Total (NRs) 7000 21420 2000 9975
8575
3320
Table 41 Hydrology study Water user organization private sector/NGO strengthening Agric. extension Training and study tour technical assistance ME/MIS Recurrent cost Total Grand Total NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Support Services (NRs '000) Unit DTW opened ch. buried pipe (36 ha) (45ha)
1591
2838 STW (10ha)
Table 42 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Gwarkhola Tunover-Terai (450 ha) Irrigation Civil Works: Aqueduct Retaining wall Drain crossing Escape spill way Repair works Subtotal Hydrology study Vehicle Equipment wuo Private sector/NGO strenghtening Agric extension Training Consultant services M&E Recurrent Costs • Physical contingencies1 / Total 1/ Physical contingencies for civil works. Unit no m no no Is Quantity
I Unit Price (NRs)
Table 43 Total (NRs'OOO)
1873
1100 1890 1655
1401 859.2 15763.1 Irrigation Civil Works: Intake structure Pipe work Bridges Super passes Escape structure Canal lining Subtotal Hydrology study Vehicle Equipment wuo Private sect.or/NGO strenghtening Agric extension Training Consultant services M&E Recurrent Costs Physical contingencies1/ Total NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Tunover-Hill (180 ha) Unit no job no no no m3 Quantity
2368 1/ Physical contingencies tor civil works.
Table 44 Unit Price Total (NRs) (NRs'OOO)
613.1 8377.1 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-Participatory Joint Management-Surface Scheme (750 ha) Irrigation Civil Works Hydrology study Vehicle & Equipment wuo Private sector/NGO strenghtening Agric extension Training Consultant Services M&E Recurrent Costs Physical contingencies1 / Total 1/ Physical contingencies for civil works. Total (NRs'OOO) 19250
1830 3155 2760
1200 2888 32858
Table 45
Table 46 NEPAL IRRIGATION SECTOR PROJECT Cost Estimates-SMIP Ill Stage I (NRs Million) FY98 FY99 FY00 FY01 FY02 Total Land Acquisition 3.95 10.52 16.23 13.16 0.00 43.86 Civil Works: 0.00 Preparatory works 29.29 9.96 9.96 9.37 0.00 58.58 Restoration of CMC 0.00 30.87 61.74 61.74 0.00 154.35 Secondary canal 16.00 42.50 71.48 56.03 7.73 193.74 Subsecondary canal 12.76 35.09 59.02 46.26 6.38 159.51 Tertiary canal 29.90 107.60 159.20 133.60 0.00 430.30 Public watercourse 21.30 58.58 98.51 49.70 34.61 262.70 Farmers watercourse 7.10 19.53 32.84 17.75 11.54 88.76 secondary drain 5.70 15.20 23.40 19.00 0.00 63.30 subsecondary drains 2.70 7.30 11.30 9.10 0.00 30.40 tertiary drains 4.40 12.00 18.40 15.00 0.00 49.80 Collection drains 2.91 8.00 13.47 7.28 4.73 36.39 Buildings 1.45 2.10 1.45 0.00 0.00 5.00 On-farm water mgt 0.00 5.44 5.44 5.44 5.44 21.76 Kosi Flood embankment 8.00 24.00 24.00 24.00 0.00 80.00 Subtotal 141.51 378.17 590.21 454.27 70.43 1634.59 Econ Rehab for PAFs 2.30 6.92 9.23 7.50 0.00 25.95 Vehicles & motorcycles 0.00 1.68 2.80 1.12 0.00 5.60 Bicycles 0.30 0.00 0.00 0.00 0.00 0.30 Spares 0.00 0.00 1.68 5.04 5.04 11.76 Subtotal 2.60 8.60 13.71 13.66 5.04 43.61 Technical Assistance: Eng. & Institution 32.40 32.40 61.56 32.40 3.24 162.00 PBME survey 2.25 0.00 1.13 0.00 1.13 4.51 Subtotal 34.65 32.40 62.69 32.40 4.37 166.51 Admin. & training: General admin 5.00 4.55 4.55 6.00 4.00 24.10 Institution &water mgt Training 2.31 2.31 2.31 2.92 2.31 12.16 Subtotal 7.31 6.86 6.86 8.92 6.31 36.26 Physical contingencies 1/ 8.49 22.69 35.41 27.26 4.23 98.08 Total 198.51 459.24 725.11 549.67 90.38 2022.91 1/ Physical contingencies for civil works. NEPA Table 47 IRRIGATION SECTOR PROJECT Financial Analysis- (Raskulo) Terai Major Rehab Scheme (1460 ha) (NRs Million) Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 35.0 0.0 0 35.0 0.0 0.0 0.0 -35.0 Year2 52.6 0.0 0 52.6 0.0 0.0 0.0 -52.6 Year3 0.90 1.80 2.7 10.9 10.9 0.0 -2.7 Year4 0.90 1.80 2.7 16.3 20.5 4.2 1.5 Year5 0.90 1.80 2.7 21.7 32.2 10.5 7.8 Year6 0.90 1.80 2.7 21.7 40.7 19.0 16.3 Year7 · 0.90 1.80 2.7 21.7 49.1 27.4 24.7 YearB 0.90 1.80 2.7 21.7 53.3 31.6 28.9 Year9 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year10 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year11 5.1 0.90 1.80 7.8 21.7 55.4 33.7 25.9 Year12 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year13 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year14 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year15 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year16 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year17 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year18 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year19 0.90 1.80 2.7 21.7 55.4 33.7 31.0 Year20 0.90 1.80 2.7 21.7 55.4 33.7 31.0 NPV=NRs 37.5 million FRR 17.1% Including physical contingencies. Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Investment Costs 1/ Year1 12.4 Year2 18.7 Year3 Year4 Year5 Year6 Year7 Years Year9 Year10 Year11 5.1 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 1/ Including physical cont_ingencies. NEPA IRRIGATION SECTOR PROJECT Financial Analysis- (Siyari) Terai Minor Rehab Scheme (882 ha) (NRs Million) O&M.Costs Agric. Total Costs WOP-Net Extension Prod. Value 0_.5 1.1 1.6 20.9 0.5 1.1 1.6 20.9 0.5 1.1 1.6 20.9 0.5 1.1 1.6 20.9 0.5 i .1 1.6 20.9 0.5 1.1 1.6 20.9 NPV=NRs 9.5 million WP-Net Prod. Value 2/ 2/ Incremental benefits in WP have been assumed to be ·achieved over 5 years and irrigated area over 3 years.
Table 48 Inc. Inc. Net Net Prod. Benefits Benefits FRR 15.6% NEPAL Table 49 IRRIGATION SECTOR PROJECT Financial Analysis- (Kalika Tar) Hill Major Rehab Scheme (105 ha) (NRs Million) Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 5.0 0.0 0 5.0 0.0 0.0 0.0 -5.0 Year2 7.2 0.0 0 7.2 0.0 0.0 0.0 -7.2 Year3 0.09 0.10 0.2 1.0 1.0 0.0 -0.2 Year4 0.09 0.10 0.2 1.5 1.9 0.4 0.2 Year5 0.09 0.10 0.2 2.0 2.9 0.9 0.7 Year6 0.09 0.10 0.2 2.0 3.7 1.7 1.5 Year7 0.09 0.10 0.2 2.0 4.4 2.4 2.2 Year8 0.09 0.10 0.2 2.0 4.8 2.8 2.6 Years 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year10 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year11 0.4 0.09 0.10 0.6 2.0 5.0 3.0 2.4 Year12 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year13 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year14 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year15 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year16 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year17 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year18 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year19 0.09 0.10 0.2 2.0 5.0 3.0 2.8 Year20 0.09 0.10 0.2 2.0 5.0 3.0 2.8 NPV,=NRs -0.1 million FRR = 11.9% Including physical contingencies. Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table 50 IRRIGATION SECTOR PROJECT Financial Analysis- (Chinchhu) Hill Minor Rehab Scheme (135 ha) (NRs Million) Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 5.0 0.0 0 5.0 0.0 0.0 0.0 -5.0 Year2 7.6 0.0 0 7.6 0.0 0.0 0.0 -7.6 Year3 0.1 0.2 0.3 1.8 1.8 0.0 -0.3 Year4 0.1 0.2 0.3 2.6 3.1 0.5 0.2 Year5 0.1 0.2 0.3 3.5 4.6 1.1 0.8 Year6 0.1 0.2 0.3 3.5 5.5 2.0 1.7 Year7 0.1 0.2 0.3 3.5 6.4 2.9 2.6 Years 0.1 0.2 0.3 3.5 6.8 3.3 3.0 Year9 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year10 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year11 0.8 0.1 0.2 1.1 3.5 7.1 3.6 2.5 Year12 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year13 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year14 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year15 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year16 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year17 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Yearl 8 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Yearl 9 0.1 0.2 0.3 3.5 7.1 3.6 3.3 Year20 0.1 0.2 0.3 3.5 7.1 3.6 3.3 NPV=NRs 1.1 million FRR 13.2% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. \ Investment O&.M Costs Costs 1/ Year1 0.6 0.0 Year2 1.0 0.0 Year3 0.10 Year4 0.10 Year5 0.10 Year6 0.10 Year7 0.10 Years 0. 10 Year9 0.10 Year10 0.10 Year11 0.4 0.10 Year12 0.10 Year13 0.10 Year14 0.10 Year15 0.10 Year16 0.10 Year17 0.10 Year18 0.10 Year19 0.10 Year20 0.10 ' Including physical contingencies. NEPAL IRRIGATION SECTOR PROJECT Financial Analysis- DTW (36 ha) (NRs Million) Agric. Total Costs WOP-Net Extension Prod. Value NPV=NRs 1.1 million WP-Net Prod. Value 2/ 1 Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years.
Table 51 Inc. Inc. Netl Net Prod. Net Benefits Benefits FRR 18.9% NEPAL Table 52 IRRIGATION SECTOR PROJECT Financial Analysis- DTW (45 ha) (NRs Million) Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 1.1 0.0 0 1.1 0.0 0.0 0.0 ·1 .1 Year2 1.7 0.0 0 1.7 0.0 0.0 0.0 ·1 .7 Year3 0.11 0.06 0.2 0.4 0.4 0.0 ·0.2 Year4 0.11 0.06 0.2 0.6 0.8 0.2 0.0 Year5 0.11 0.06 0.2 0.8 1.1 0.3 0.1 Year6 0.11 0.06 0.2 0.8 1.4 0.6 0.4 Year7 0.11 0.06 0.2 0.8 1.6 0.8 0.6 Year8 0.11 0.06 0.2 0.8 1.8 1.0 0.8 Year9 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year10 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year11 0.4 0.11 0.06 0.6 0.8 1.9 1.1 0.5 Year12 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year13 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year14 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year15 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year16 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year17 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year18 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year19 0.11 0.06 0.2 0.8 1.9 1.1 0.9 Year20 0.11 0.06 0.2 0.8 1.9 1.1 0.9 NPV=NRs 0.7 million FRR 14.8% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table 53 IRRIGATION SECTOR PROJECT Financial Analysis- STW (10 ha) (NRs Million) Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 0.45 0.0 0 0.5 0.00 0.00 0.0 -0.5 Year2 0.03 0.01 0.0 0.09 0.09 0.0 0.0 Year3 0.03 0.01 0.0 0.13 0.16 0.0 0.0 Year4 0.03 0.01 0.0 0.17 0.24 0.1 0.0 Years 0.03 0.01 0.0 0.17 0.30 0.1 0.1 Year6 0.03 0.01 0.0 0.17 0.36 0.2 0.2 Year7 0.03 0.01 0.0 0.17 0.38 0.2 0.2 Years 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year9 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year10 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year11 0.04 0.03 0.01 0.1 0.17 0.40 0.2 0.2 Year12 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year13 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year14 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year15 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year16 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year17 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year18 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year19 0.03 0.01 0.0 0.17 0.40 0.2 0.2 Year20 0.03 0.01 0.0 0.17 0.40 0.2 0.2 NPV=NRs 0.32 million FRR 19.1% / Including physical contingencies. ,/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Investment Costs 1/ Year1 6.3 Year2 9.5 Year3 Year4 Year5 Year6 Year7 Years Year9 Year10 Year11 2.6 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 1/ Including physical contingencies. NEPAL IRRIGATION SECTOR PROJECT Financial Analysis- Terai Turn Over Scheme (450 ha) (NRs Million) O&M Costs Agric. Total Costs WOP-Net Extension Prod. Value NPV=NRs 6.3 million WP-Net Prod. Value 2/ ·16.9 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years.
Table 54 Inc. Inc. Net Net Prod. Benefits Benefits FRR 16.6% NEPAL Table 55 IRRIGATION SECTOR PROJECT Financial Analysis- Hill Turn Over Scheme (180 ha) (NRs Million) Inc. Inc. Net 0 Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Co!;_tS 1/ Extension Prod. Value Prod. Value Benefits 2/ Year1 3.4 0.0 0 3.4 0.0 0.0 0.0 -3.4 Year2 5.0 0.0 0 5.0 0.0 0.0 0.0 -5.0 Year3 0.16 0.22 0.4 2.6 2.6 0.0 -0.4 Year4 0.16 0.22 0.4 4.0 4.4 0.4 0.0 Year5 0.16 0.22 0.4 5.3 6.3 1.0 0.6 Year6 0.16 0.22 0.4 5.3 7.2 1.9 1.5 Year7 0.16 0.22 0.4 5.3 8.0 2.7 2.3 Year8 0.16 0.22 0.4 5.3 8.4 3.1 2.7 Year9 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year10 0.16 0.22 0.4 5.3 8.6 3.3. 2.9 Year11 1.1 0.16 0.22 1.5 5.3 8.6 3.3 1.8 Year12 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year13 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year14 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year15 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year16 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year17 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year18 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year19 0.16 0.22 0.4 5.3 8.6 3.3 2.9 Year20 0.16 0.22 0.4 5.3 8.6 3.3 2.9 NPV=NRs 3.0 million FRR 16.2% / Including physical contingencies. / Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table 56 IRRIGATION SECTOR PROJECT Financial Analysis- Participatory Joint Management (750 ha) NRs Million Inc. Inc. Net Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/3/ Extension Prod. Value Prod. Value Benefits 2/ Year1 13.2 0.0 0.0 13.2 0.0 0.0 0.0 -13.2 Year2 19.7 0.0 0.0 19.7 0.0 0.0 0.0 -19.7 Year3 0.0 0,2 0.9 1.1 4.1 4.1 0.0 -1.1 Year4 0.0 0.3 0.9 1.2 6.0 8.6 2.6 1.3 Year5 0.0 0.5 0.9 1.4 7.9 11.3 3.4 2.0 Year6 0.0 0.5 0.9 1.4 7.9 14.6 6.8 5.4 Year7 0.0 0.5 0.9 1.4 7.9 18.0 10.1 8.8 Year8 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year9 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year10 1.0 0.5 0.9 2.4 7.9 19.1 11.3 8.9 Year11 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year12 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year13 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year14 0.0 ·o.s 0.9 1.4 7.9 19.1 11.3 9.9 Year15 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year16 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year17 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year18 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year19 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 Year20 0.0 0.5 0.9 1.4 7.9 19.1 11.3 9.9 NPV=NRs 8.8 FRR 15.4% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been _assumed to be achieved over 5.years and irrigated area over 3 years. NEPAi Table 57 IRRIGATION SECTOR PROJECT Financial Analysis- Sunsari Morang Ill-Phase I (15100 ha) (NR Million) Inc. Inc. Net Investment O&M Cost Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Extensio Prod. Valu Prod. Valu Benefits Irrigation 2/ Year1 198.5 0.0 0.0 198.5 0.0 0.0 0.0 -198.5 Year2 459.2 0.2 0.0 459.4 12.5 12.5 0.0 -459.4 Year3 725.1 0.5 0.0 725.6 37.6 42.7 5.1 -720.5 Year4 549.7 1.1 0.0 550.8 75.5 95.9 20.4 -530.4 Years 90.4 1.8 0.0 92.2 126.5 177.5 51.0 -41.2 Year6 0.0 2.5 2.3 4.8 178.2 280.2 102.0 97.2 Year? 0.0 3.1 2.3 5.4 218.1 386.4 168.3 162.9 Years 0.0 3.6 2.3 5.9 258.1 497.8 239.7 233.8 Year9 0.0 3.6 2.3 5.9 260.8 571.9 311.1 305.2 Year10 0.0 3.6 2.3 5.9 262.7 624.8 362.1 356.2 Year11 0.3 3.6 2.3 6.2 263.8 656.5 392.7 386.5 Year12 1.7 3.6 2.3 7.6 264.4 672.4 408.0 400.4 Year13 4.6 3.6 2.3 10.5 264.4 672.4 408.0 397.5 Year14 6.4 3.6 2.3 12.3 264.4 672.4 -408.0 395.7 Year15 5.3 3.6 2.3 11.2 264.4 672.4 408.0 396.8 Year16 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year17 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year18 0.0 3.6 2.3 5.9. 264.4 672.4 408.0 402.1 Year19 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year20 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year21 0.3 3.6 2.3 6.2 264.4 672.4 408.0 401.8 Year22 1.7 3.6 2.3 7.6 264.4 672.4 408.0 400.4 Year23 4.6 3.6 2.3 10.5 264.4 672.4 408.0 397.5 Year24 6.4 3.6 2.3 12.3 264.4 · 672.4 408.0 395.7 Year25 5.3 3.6 2.3 11.2 264.4 672.4 408.0 396.8 Year26 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year27 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year28 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year29 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 Year30 0.0 3.6 2.3 5.9 264.4 672.4 408.0 402.1 NPV=NR -17.10 million FRR 11.88% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAi Table 58 IRRIGATION SECTOR PROJECT Financial Analysis- Sum:ari Morang Ill-Phase I (15100 ha) (NRs Milla Investment Replaceme t O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Power Benefits Costs 1/3/ Headwork Irrigation Headwork Extensio Prod. Valu Prod. Valu Benefits Benefits 4/ 2/ Year1 486.9 0.0 0.0 -3.8 0.0 483.1 0.0 0.0 0.0 6.4 -476.7 Year2 459.2 0.0 0.2 -3.8 0.0 455.6 12.5 12.5 0.0 6.4 -449.2 Year3 725.1 0.0 0.5 -3.8 0.0 721.8 37.6 42.7 5.1 6.4 -710.3 Year4 549.7 0.0 1.1 -3.8 0.0 547.0 75.5 95.9 20.4 6.4 -520.2 Year5 90.4 0.0 1.8 -3.8 0.0 88.4 126.5 177.5 51.0 6.4 -31.0 Year6 0.0 0.0 2.5 -3.8 2.3 1.0 178.2 280.2 102.0 6.4 107.4 Year? 0.0 0.0 3.1 -3.8 2.3 1.6 218.1 386.4 168.3 6.4 173.1 Year8 0.0 0.0 3.6 -3.8 2.3 2.1 258.1 497.8 239.7 6.4 244.0 Year9 0.0 73.8 3.6 -3.8 2.3 75.9 260.8 571.9 311.1 6.4 241.6 Year10 0.0 0.0 3.6 -3.8 2.3 2.1 262.7 624.8 362.1 6.4 366.4 Year11 0.3 0.0 3.6 -3.8 2.3 2.4 263.8 656.5 392.7 6.4 396.7 Year12 1.7 0.0 3.6 -3.8 2.3 3.8 264.4 672.4 408.0 6.4 410.6 Year13 4.6 0.0 3.6 -3.8 2.3 6.7 264.4 672.4 408.0 6.4 407.7 Year14 • 6.4 0.0 3.6 -3.8 2.3 8.5 264.4 672.4 408.0 6.4 405.9 Year15 5.3 0.0 3.6 -3.8 2.3 7.4 264.4 672.4 408.0 6.4 407.0 Year16 0.0 73.8 3.6 -3.8 2.3 75.9 264.4 672.4 408.0 6.4 338.5 Year17 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year18 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year19 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year20 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year21 0.3 0.0 3.6 -3.8 2.3 2.4 264.4 672.4 408.0 6.4 412.0 Year22 1.7 0.0 3.6 -3.8 2.3 3.8 264.4 672.4 408.0 6.4 410.6 Year23 4.6 73.8 3.6 -3.8 2.3 80.5 264.4 672.4 408.0 6.4 333.9 Year24 6.4 0.0 3.6 -3.8 2.3 8.5 264.4 672.4 408.0 6.4 405.9 Year25 5.3 0.0 3.6 -3.8 2.3 7.4 264.4 672.4 408.0 6.4 407.0 Year26 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year27 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year28 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year29 0.0 0.0 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 Year30 0.0 0.0, 3.6 -3.8 2.3 2.1 264.4 672.4 408.0 6.4 412.3 NPV:::NR -236.5 million FRR::: 10.6% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. 3/ Including about 21 % of the costs of new headworks. 4/ Including about 21 % of the power benefits (21 % of 10.3 million kwh @ NRs 3/kwh). NEPAL IRRIGATION SECTOR PROJECT Economic Price Derivation-Terai Jute Paddy Maize age 2000-2005 World Price(US$/ton)1/ 329 304 111 lity Adjustment(%) 90 85 80 sted Commodity Price (US$/1Dn) 2/ 296 258 89 national shipping costs •,...,_. • 0 0 0 sport COSlS 1D Nepal Border 27 27 27 ,epal border (US$/ton) 3/ 323 285 116 'epal border (NRs/ton) 4/ 17771 15697 6369 sport & handling 1D project area 5/ 374 374 374 ,esale prices at project area 18145 16071 6743 ·eting/AIC admin cost 1814 1607 674 exmill/depot 19959 17678 7417 3Ssing ratio 90 63 100 of Commodity 17963 11049 7417 3Ssing cost 5/6/ 45 -45 at mill gate 17918 11094 7417 ,ating/AIC admin costs 1796 1105 742 portto/from farm 5/ 72 72 72 ,omic Farmgate price(Rs/1Dn) 16~ 9917 6604 cial Farm -gate Price (Rs/1Dn) 13500 7000 6700 0 Commodity Price Forecats, February 1997, adjusted to 1996 constant value. white D. FOB Chittagong/Chalna. Thai, milled 5% broken, FOB Bangkok. : US, No. 2 Yellow, FOB Gulf Ports. : (Canadian) no. 1, Western Red Spring (CWRS), 1n store, St. Lawrence, export price Wheat Sugar
l.i"ea
10010
10384
10903
10903 10903
11520 7500 :EU .iegotiated import price for raw unpackaged sugar from africa, caribbean and pacific coumries, c:f european ports. bagged, FOB Europe. =as us Gulf. um Chloride (Mu-iate of Potash): FOB Vancouver. -<1modity price equivaler.t in !ndia—UP, Har-yana, MP and Pur.jab) -itnagar for Eastern ,egior., and Nepalganj for western regions. ; 1.0=NRs. 55 JSted by SCF of 0.9G. of by-r:;roGucts val..1es, and adjusted by SCF of 0.90 Table59 NEPJ>.L. :RRIGATION SECTOR PRO.ECT Economic Price Oerivation-Hi'il Paddy 1\/Jaize Average 2000-2005 Wcrld Price(US$/ton)1/ 304 111 Quality Adjustment(%) 85 80 Adjusted Commodity Price (US$/JQp) 2/ 258 89 International shipping costs 0 0 Transport COS1S to Nepal Bader 27 27 Cif Nepal bcrder (US$/ton) 3/ 285 116 Cif Nepal border (NRs/ton) 4/ 15697 6369 Transport & handling to project area 5/ 1454 1454 Wholesale prices at project area 17151 7823 Marketing/AIC admin cost 1715 782 Price exmill/depot 18866 8605 Processing ratio 63 100 Price of Commodity 11791 8605 Processing cost 5/6/ -45 Price at mill gate 11836 8605 Marketing/AIC admin costs 1179 861 Transport to/from farm 5/ 72 72 Economic Farmgate price(Rs/tDn) 10585 7673 Financial Farm-gate Price (Rs/tDn) 8250 8000 1/ IBPD Commodity Price Forecats, February 1997, adjusted to 1996 constamvalue. Rice: Thai, milled 5% b'"oken, FOB Bangkok. Marze: US, No. 2 Yellow, FOB Gulf Perts. wheat: (Canadian) no. 1, Western Red Spring (C'NRS), in store, St. La'M"ence, eicport price Urea: bagged, FOB Europe. OAP: FOB LB Gulf. P:J.asium C!"rlorrde (Mu-iate of Potash): FOB Var.c::iuver. 2/ Commodity price equivalent in India (UP, Haryana, MP and Punjab) 3/ Biratnagar for Eastern regio;i, and Nepalganj fa- western regions. 4/ LiS$ 1.0=NRs. 55 5/ Adjusted by SCF of 0.90. 6/ Net of by-products values, and adjusted by sa= cf 0.90 Wheat MCP 7865 "J3965 Tab U-ea OAP NEPAL Table61 IRRIGATION SECTOR PROJECT Economic Analysis- (Raskulo) Terai Major Rehab Scheme (1460 ha) (NRsMillion) Incremental Inc. Net Investment O&M Cos1s Agric. TotaICos1s WOP-Net WP-Net Net Prod. Benefits Cos1s 1/ Extension Prod. Value Prod. Value Benefits
Year1 30.0 0.0 0 30.0 0.0 0.0 0.0 -30.0 Year2 452 0.0 0 45.2 0.0 0.0 0.0 -45.2 Year3 0.80 1.49 2.3 9.3 9.3 0.0 -2.3 Year4 0.80 1.49 2.3 13.9 18.0 4.1 1.8 YearS 0.80 1.49 2.3 18.5 28.9 10.4 8.1 Year6 0.80 1.49 2.3 18.5 37.1 18.6 16.3 Year7 0.80 1.49 2.3 18.5 45.4 26.9 24.6 Year8 0.80 1.49 2.3 18.5 49.5 31.0 28.7 Year9 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year10 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year11 4.0 0.80 1.49 6.3 18.5 51.6 33.1 26.8 Year12 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year13 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year14 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year15 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year16 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year17 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year18 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year19 0.80 1.49 2.3 18.5 51.6 33.1 30.8 Year20 0.80 1.49 2.3 18.5 51.6 33.1 30.8. NPV=NRs 482 million ERR= 19.2% ..,eluding physical contingencies. ..,cremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL IRRIGATION SECTOR PROJECT Economic Analysis- (Siyan) Terai Minor Rehab Scheme (882 ha) (NRsMilfion) Investment O&M Cos1s Agric. Total Costs WOP-Net WP-Net Costs 1/ Extension Prod. Value Prod. Value 2/ 2/ Year1 10.7 0.0 0 10.7 0.0 0.0 Year2 16.1 0.0 0 16.1 0.0 0.0 Year3 0.5 0.9 1.4 10.3 10.3 Year4 0.5 0.9 1.4 15.4 16.8 Years 0.5 0.9 1.4 20.6 23.9 Year6 0.5 0.9 1.4 20.6 26.6 Year7 0.5 0.9 1.4 20.6 29.3 Year8 0.5 0.9 1.4 20.6 30.7 Year9 0.5 0.9 1.4 20.6 31.4 Year10 0.5 0.9 1.4 20.6 31.4 Year11 4.0 0.5 0.9 5.4 20.6 31.4 Year12 0.5 0.9 1.4 20.6 31.4 Year13 0.5 0.9 1.4 20.6 31.4 Year14 0.5 0.9 1.4 20.6 31.4 Year15 0.5 0.9 1.4 20.6 31.4 Year16 0.5 0.9 1.4 20.6 31.4 Year17 0.5 0.9 1.4 20.6 31.4 Year18 0.5 0.9 1.4 20.6 31.4 Year19 0.5 0.9 1.4 20.6 31.4 Year20 0.5 0.9 1.4 20.6 31.4 NPV=NRs 9.2million 1/ Including physical contingencies. IncrementalIncremental Net Prod. Net Benefits Benefits ERR= 16.00/4 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Table62 NEPAL Table63 IRRIGATION SECTOR PROJECT Economic Analysis- (Kalika Tar) Hill Major Rehab Scheme (1 05 ha) (NRs Million) IncrementalIncremental Investment O&M Cos1s Agric. Total Costs WOP-Net WP-Net Net Prod. Net Costs 1/ Extension Prod. Value Prod. Value Benefits Benefits 2/ Year1 4.3 0.0 0 4.3 0.0 0.0 0.0 -4.3 Year2 6.2 0.0 0 6.2 0.0 0.0 0.0 -6.2 Year3 0.08 0.08 0.2 0.6 0.6 0.0 -0.2 Year4 0.08 0.08 0.2 0.9 1.3 0.4 0.2 Year5 0.08 0.08 0.2 1.2 2.2 1.0 0.8 Year6 0.08 0.08 0.2 1.2 3.0 1.8 1.6 Year7 0.08 0.08 0.2 1.2 3.7 2.5 2.3 YearS 0.08 0.08 0.2 1.2 4.1 2.9 2.7 Year9 0.08. 0.08 0.2 1.2 4.3 3.1 2.9 Year10 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year11 0.3 0.08 0.08 0.5 1.2 4.3 3.1 2.6 Year12 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year13 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year14 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year15 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year16 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year17 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year18 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year19 0.08 0.08 0.2 1.2 4.3 3.1 2.9 Year20 0.08 0.08 0.2 1.2 4.3 3.1 2.9 NPV=NRs 2.0 million EAR= 14.5<'/o 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table64 IRRIGATION SECTOR PROJECT Economic Analysis- (Chinchhu) Hill Minor Rehab Scheme (135 ha) (NRsMilfion) IncrementalIncremental Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Net Costs 1/ Extension Prod. Value Prod. Value Benefits Benefits 2/ 2/ Yean 4.3 0.0 0 4.3 0.0 0.0 o.o -4.3 Year2 6.5 0.0 0 6.5 0.0 0.0 0.0 -6.5 Year3 0.1 0.2 0.3 1.3 1.3 0.0 -0.3· Year4 0.1 0.2 0.3 1.9 2.5 0.6 0.3 Year5 0.1 0.2 0.3 2.6 3.8 1.2 0.9 Year6 0.1 0.2 0.3 2.6 4.7 • 2.1 1.8 Year7 0.1 0.2 0.3 2.6 5.6 3.0 2.7 Year8 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year9 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year10 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year11 0.6 0.1 0.2 0.9 2.6 6.0 3.4 2.5 Year12 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year13 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year14 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year15 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year16 0.1 0.2 0.3 2.6 6.0 • 3.4 3.1 Year17 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year18 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Year19 0.1 0.2 0.3 2.6 6.0 3.4 3.1 Yeai20 0.1 0.2 0.3 2.6 6.0 3.4 3.1 NPV=NRs 2.4million ERR= 14.9% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Year1 Year2 Year3 Year4 . Years Year6 Year7 Year8 Year9 Year10 • Year11 Year12 Year13 Year14 Year15 Year16 Year17 Yearta Year19 Year20 Investment O&M Costs Costs 1/ 1/ Including physical contingencies. NEPAL IRRIGATION SECTOR PROJECT Economic Analysis- DlW (36 ha) (NAsMilfion) Agric. Total Costs Extension 0.04 0.1 • NPV=NAs WOP-Net WP-Net Prod. Value Prod. Value 2/ 1.1 mRlion Incremental Incremental Net Prod. Net Benefits Benefits ERA= 20.3% 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Table65 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10 Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 Investment O&M Costs Costs 1/ • 1.0 0.0 1/ Including physical contingencies. NEPAL IRRIGATION SECTOR PROJECT Economic Analysis- D1W (45 ha) (NRsMillion) Agric. Total Costs Extension NPV=NRs WOP-Net WP-Net Prod. Value Prod. Value 2/ 1.5 million IncrementalIncremental Net Prod. Net Benefits Benefits ERR= 18.6% 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Table66 Investment O&M Costs Costs 1/ Yean 0.4 0.0 Year2 0.03 Year3 0.03 Year4 0.03 Years 0.03 Year6 0.03 Year7 0.03 YearS 0.03 Yem9 0.03 Year10 0.03 ·vear11 0.03 0.03 Year12 0.03 Yean3 0.03 Year14 0.03 Year15 0.03 Year16 0.03 Year17 0.03 Year18 0.03 Year19 0.03 Year20 0.03 1/ Including physical contingencies. NEPAL IRRIGATION SECTOR PROJECT Economic Analysis-:- SlW (10 ha) (NRs Million) Agric. Total Costs WOP-Net WP-Net Extension Prod. Value Prod. Value 2/ 0 0.40 0.00 0.00 0.01 0.04 0.07 0.07 0.01 0.04 0.11 · 0.13 0.01 • 0.04 0.14 0.35 NPV=NRs 0.3million IncrementalIncremental Net Prod. Net Benefits Benefits ERR= 19.2"/4 2/ lncrl!mental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. Table67 NEPAL IRRIGATION SECTOR PROJECT Economic Analysis- Terai Tum Over Scheme (450 ha) (NRsMillion) Investment O&M Cos1s Agric. Total Costs WOP-Net WP-Net Costs 1/ Extension Prod. Value Prod. Value 2/ Year1 5.4 0.0 0 5.4 0.0 0.0 Year2 8.2 0.0 0 8.2 0.0 0.0 Year3 0.20 0.50 0.7 4.6 4.6 Year4 0.20 0.50 0.7 6.8 7.6 Years 0.20 0.50 0.7 9.1 11.2 Year6 0.20 0.50 0.7 9.1 12.8 Year7 0.20 0.50 0.7 9.1 14.4 Year8 0.20 0.50 0.7 9.1 15.2 Year9 0.20 0.50 0.7 9.1 15.6 Year10 0.20 0.50 0.7 9.1 15.6 Year11 2.1 0.20 0.50 2.8 9.1 15.6 Year12 0.20 0.50 0.7 9.1 15.6 Year13 0.20 0.50 0.7 9.1 15.6 Year14 0.20 0.50 0.7 9.1 15.6 Year15 0.20 0.50 0.7 9.1 15.6 Year16 0.20 0.50 0.7 9.1 15.6 Year17 0.20 0.50 0.7 9.1 15.6 Year18 0.20 0.50 0.7 9.1 15.6 Year19 0.20 0.50 0.7 9.1 15.6 Year20 0.20 0.50 0.7 9.1 15.6 NPV=NRs 8.7 million 1/ Including physical contingencies. IncrementalIncremental Net Prod. Net Benefits Benefits ERR= 19.0% 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigaled area over 3 years. Table68 NEPAL Table69 IRRIGATION SECTOR PROJECT Economic Analysis- Hill Tum Over Scheme (180 ha) (NRsMillion) IncrementalIncremental Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Net Costs 1/ Extension Prod. Value Prod. Value Benefits Benefits 2/ Year! 2.9 0.0 0 2.9 0.0 0.0 0.0 -2.9 Year2 4.3 0.0 0 4.3 0.0 0.0 0.0 -4.3 Year3 0.14 0.18 0.3 2.2 2.2 0.0 -0.3 Year4 0.14 0.18 0.3 3.3 3.7 0.4 0.1 Year5 0.14 0.18 0.3 4.3 5.3 1.0 0.7 veare 0.14 0.18 0.3 4.3 6.1 1.8 1.5 Year7 0.14 0.18 0.3 4.3 6.9 2.6 2.3 Year8 0.14 0.18 0.3 4.3 7°.3 3.0 2.7 Year9 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year10 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year11 0.9 0.14 0.18 1.2 4.3 7.5 3.2 2.0 Year12 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year13 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year14 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year15 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year16 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year17 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year18 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year19 0.14 0.18 0.3 4.3 7.5 3.2 2.9 Year20 0.14 0.18 0.3 4.3 7.5 3.2 2.9 NPV=NRs 4.0 mHlion ERR= 18.2"/4 1/ Including physical contingencies.· 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table70 IRRIGATION SECTOR PROJECT Economic Analysis- Participatory Joint Management (750 ha) NRs Million Incremental Incremental Investment O&M Costs Agric. Total Costs WOP-Net WP-Net Net Prod. Net Costs 1/3/ Extension Prod. Value Prod. Value Benefits Benefits 2/ Year1 11.4 0.00 0.00 11.40 0.00 0.00 0.00 -11.40 Year2 16.9 0.00 0.00 16.90 0.00 0.00 0.00 -16.90 Year3 0.0 0.20 0.75 0.95 3.38 3.38 0.00 -0.95 Year4 0.0 0.30 0.75 1.05 4.88 7.13 2.25 1.20 Year5 0.0 0.40 0.75 1.15 6.75 10.50 3.75 2.60 Year6 0.0 0.40 0.75 1.15 6.75 13.88 7.13 5.98 Year7 0.0 0.40 0.75 1.15 6.75 1725 10.50 9.35 YearB 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year9 0.0 0.40 0.75 1.15 6.75 18.00 11.25 10.10 Year10 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year11 0.8 0.40 0.75 1.95 6.75 18.00 1125 9.30 Year12 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year13 0.0 0.40 0.75 1.15 6.75 18.00 11.25 10.10 Year14 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year15 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year16 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year17 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Yeana 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 Year19 0.0 0.40 0.75 1.15 6.75 18.00 11.25 10.10 Year20 0.0 0.40 0.75 1.15 6.75 18.00 1125 10.10 NPV=NRs 14.3 million ERR= 18.0% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table 71 IRRIGATION SECTOR PROJECT Economic Analysis- Sunsari Morang Ill-Phase I (15100 ha) (NRs Milla Inc. Inc. Net Investment O&M Costs Foregon Agric. Total Costs WOP-Net WP-Net Net Prod. Benefits Costs 1/ Benefits Extensio Prod: Valu Prod. Valu Benefits Land Acq. 2/ Year1 154.0 0.0 0.0 0.0 154.0 0.0 0.0 0.0 -154.0 Year2 355.3 0.2 0.5 0.0 356.0 10.8 10.8 0.0 -356.0 Year3 560.5 0.5 1.8 0.0 562.8 32.5 37.9 5.4 -557.4 Year4 424.3 1.0 3.9 0.0 429.2 65.2 86.7 21.5 -407.7 Years 71.4 1.6 5.6 0.0 78.6 108.9 162.8 53.9 -24.7 Year6 0.0 2.3 5.6 0.0 7.9 153.0 260.9 107.9 100.0 Year7 0.0 2.8 5.6 0.0 8.4 186.5 364.5 178.0 169.6 Year8 0.0 3.2 5.6 2.0 10.8 220.2 473.8 253.6 242.8 Year9 0.0 3.2 5.6 2.0 10.8 221.4 550.4 329.0 318.2 Year10 0.0 3.2 5.6 2.0 10.8 222.3 605.2 382.9 372.1 Year11 0.3 3.2 5.6 2.0 11.1 222.9 638.1 415.2 404.1 Year12 1.7 3.2 5.6 2.0 12.5 223.1 654.6 431.5 419.0 Year13 4.4 3.2 5.6 2.0 15.2 223.1 654.6 431.5 416.3 Year14 6.1 3.2 5.6 2.0 16.9 223.1 654.6 431.5 414.6 Year15 4.9 3.2 5.6 2.0 15.7 223.1 654.6 431.5 415.8 Year16 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year17 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year18 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year19 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year20 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year21 0.3 3.2 5.6 2.0 11.1 223.1 654.6 431.5 420.4 Year22 1.7 3.2 5.6 2.0 12.5 223.1 654.6 431.5 419.0 Year23 4.4 3.2 5.6 2.0 15.2 223.1 654.6 431.5 416.3 Year24 6.1 3.2 5.6 2.0 16.9 223.1 654.6 431.5 414.6 Year25 4.9 3.2 5.6 2.0 15.7 223.1 654.6 431.5 415.8 Year26 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year27 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year28 a.a 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year29 a.a 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 Year30 0.0 3.2 5.6 2.0 10.8 223.1 654.6 431.5 420.7 NPV=NRs 371.1 million ERR 15.0% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. NEPAL Table 72 IRRIGATION SECTOR PROJECT Economic Analysis- Sunsari Morang Ill-Phase I (15100 ha) (NRs Millon lncrementa Power Inc. Net Investment Replaceme t O&M Costs Foregon Agric. Total Costs WOP-Net WP-Net Net Prod. Benefit 4/ Benefits Costs 1/3/ Headwork Irrigation Headwork Benefits Extensio Prod. Valu Prod. Valu Benefits Land Acq. 2/ Year1 403.0 0.0 0.0 -3.2 0.0 0.0 399.8 0.0 0.0 0.0 6.4 -393.4 Year2 355.3 0.0 0.2 -3.2 0.5 0.0 352.8 10.8 10.8 0.0 6.4 -346.4 Year3 560.5 0.0 0.5 -3.2 1.8 0.0 559.6 32.5 37.9 5.4 6.4 -547.8 Year4 424.3 0.0 1.0 -3.2 3.9 0.0 426.0 65.2 86.7 21.5 6.4 -398.1 Years 71.4 0.0 1.6 -3.2 5.6 0.0 75.4 108.9 162.8 53.9 6.4 -15.1 Year6 0.0 0.0 2.3 -3.2 5.6 0.0 4.7 153.0 260.9 107.9 6.4 109.6 Year? 0.0 0.0 2.8 -3.2 5.6 0.0 5.2 186.5 364.5 178.0 6.4 179.2 Year8 0.0 59.0 3.2 -3.2 5.6 2.0 66.6 220.2 473.8 253.6 6.4 193.4 Year9 0.0 0.0 3.2 -3.2 5.6 • 2.0 7.6 221.4 550.4 329.0 6.4 327.8 Year10 00 0.0 3.2 -3.2 5.6 2.0 7.6 222.3 605.2 382.9 6.4 381.7 Year11 0.3 0.0 3.2 -3.2 5.6 2.0 7.9 222.9 638.1 415.2 6.4 413.7 Year12 1.7 0.0 3.2 -3.2 5.6 2.0 9.3 223.1 654.6 431.5 6.4 428.6 Year13 4.4 0.0 3.2 -3.2 5.6 2.0 12.0 223.1 654.6 431.5 6.4 425.9 Year14 6.1 0.0 3.2 -3.2 5.6 2.0 13.7 223.1 654.6 431.5 6.4 424.2 Year15 4.9 59.0 3.2 -3.2 5.6 2.0 71.5 223.1 654.6 431.5 6.4 366.4 Year16 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year17 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year18 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year19 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year20 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year21 0.3 0.0 3.2 -3.2 5.6 2.0 7.9 223.1 654.6 431.5 6.4 430.0 Year22 1.7 59.0 3.2 -3.2 5.6 2.0 68.3 223.1 654.6 431.5 6.4 369.6 Year23 4.4 0.0 3.2 -3.2 5.6 2.0 12.0 223.1 654.6 431.5 6.4 425.9 Year24 6.1 0.0 3.2 -3.2 5.6 2.0 13.7 223.1 654.6 431.5 6.4 424.2 Year25 4.9 0.0 3.2 -3.2 5.6 2.0 12.5 223.1 654.6 431.5 6.4 425.4 Year26 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year27 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year28 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year29 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 Year30 0.0 0.0 3.2 -3.2 5.6 2.0 7.6 223.1 654.6 431.5 6.4 430.3 NPV=NR 186.6 million ERR 13.3% 1/ Including physical contingencies. 2/ Incremental benefits in WP have been assumed to be achieved over 5 years and irrigated area over 3 years. 3/ Including about 21 % of the costs of new headworks. 4/ Including about 21% of the power benefits. Year
5·
NPV= 805.1 .J NEPAL Irrigation Sector P reject Economic Analysis-FMIS Component NRs Million Investment O&M and Costs Operating Costs million
Table 73 Inc. Benefits Balance ERR 17.1 % Year
23.
NEPAL Irrigation Sector Project Economic Analysis-Whole Project NRs Million Investment O&M and Costs Operating Costs NPV=NRs 1176.2 million
Table 74 Inc. Benefits Balance 431.5 420.7 ; 431.5 420.7 '-i.- 431.5 420.7 431.5 420.7 ERR 16.2% Year Investment Costs NPV=NRs NEPAL Irrigation Sector Project Economic Analysis-Whole Project NRs Million O&M and Operating Costs 991.7 million
Table 75 Inc. Benefits Balance ERR 15.3%