Announcement of Forty Million US Dollars Loan to Iraq for Irrigation on January 8, 1973

() , INTERNATIONAL BANK 'FOR • RECONSTRUCTION AN.D DEVELOPMENT 18,~8 :$1 STR.EET, N.W., WASHINGTON 0. C. 20433 TEL,.EPHON~,; EXECUTIVE 3-6360 Bank Press Release No. 73/2 Subject: $ho.o million loan to Iraq January 8~ 197 3 ·for irrigation ~ l• The World Bank will assist Iraq's land re,clama tion and agrieul tura.l ,,development program with a $40.0~million loan ror an .irrigation project in the Lower,Khalis region between the Diyala and Tigris rivers. · ·· The $78 millipJ'l proje~t is part of the GovernJDent•s long-tennplailned development 1 or 865,000 acres in the Diyala basin and will replace haphazard arid. inaqequa te ir,rlga- tion in about 140,000 acres in the L<?Wer Khal;s ai'ea, northe~st of Baghdad. / . . The project consists of the const~ction ..or a new.irrigation distribution system, incl~ding a JO-ml.le extension of the Khalis main canal bringing the waters- or river Diyala: through th!3 UPP9r Kbalis region ·to the project area, and construction of an extensive land drainage system. It w111· also include the construction of reeder roads, offices and starr housing, provision of maintenance equ:1.pnent, vehicles and spare parts; and technical assistance for certain essential studies and the\lr imple1",eritation, and , • initial ,operation or the project. Agriculture accounts for one-fifth or Iraq's gross domestic product and employs 'about half of the labor force. However, the productivity of the sector is low and increasing only slowly. The major constraints include the reliance or agriculture on the vagaries or rainfall, shortage of irrigation water and insuffieient water distribu- tion and control facilities, besides excessive salinity and poor drainage. The Iraqi Government is aware of these problems and has accorded high priority ror the improve- ment of the agricultural sector in the current National.Development Plan (1970-74). ) The project is expected to bring about systematic and intensive agriculture in an area, with some 70,000 "inhabitants, where cropping intensity and yields are low and there is little prospect for improv~nt without the project. n.ise farmers' incomes, double At full developnent, the proj_ect will substaniia.117 employment in the area to some,17 1 000 man-years,·and increase the annual gross value or prod".!ction to about •30 million, or nearl1' ''six times the output llbich would be likely' without the project. It is also expected. to stimulate activity in food processing, ··:·· marketingcand supporting industries in the region. The Fo&i and lgr:Lculture Organization/World Bank Cooperative Program. assisted in the preparation or the feasibilit7 for the project.. . , The· Bank loan is for 25· ;rears, including ~. seven-year grace period, with interest at ~ per annum. ) . • - 0 - q • (! ',I January 8, 1973 (I TECIINICAL MTA PROJEcr: Irrigation COUNTRY : Iraq BANK FINANCING: $40. 0 million loan, 25 years, 7 y.~ars of grace, 71,.% interest per annum. ,,. OTHER FINANCING: Government of Iraq IMPLEMENTING ORGANIZATI<!1: Khalis Agricultural.Administ~at1o~, ~c/~ ,The Pi~ing Ministry, Baghdad, Iraq~ " PROJEcr IESCRIPTIC6: Provision of an efficient irrigation system covering 140,000 acrf!s in the Diyala basin. EQUIPMENT AND SERVICES: Construction of irrigation system including a 30-mile extension of. main Khalis supply canal, 2 p11Dp ~tatioll$, 335 miles of water courses; lai1d drainage system including a p11Dp station, river outfalls, 955 miles of out£ all and collector drains; on-farm development works covering an area of abcfut 140,000 acres; construction of 110 miles of fe,der roads, offices and staff housing; provision of maintenance eq}•ipment, vehicles, spare parts , technical assistance. PROCUBEMENT: Contracts for civil works, supply of equipment to be awarded on the basis of international competitive bidding. It is anticipated there will be four large civil works contracts for three development areas within the project are~, and the administration buildings and facilities • <X>NSULTANTS: Proposals now being evaluated. ESTIMATED OOMPLETl<lt DATE: 1978. - 0 - 0 •