Announcement of Nepal Receives Thirty Million Dollars for an Irrigation Project on May 26, 1978

FOR IMMEDIATE RELEASE •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/78 MAY 26, 1978 ·NE-PAL R-EC E-1 V-ES $JO -H+LLI-ON -F-OR AN lRR I GAT I ON PROJECT The International Development Association (IDA), an aff i 1iate of the World Bank, has approved a credit of $30 million to help rehabilitate the Chatra Main Canal, Nepal's largest existing irrigation system. The restoration and improvement of the canal will nearly double the net irrigated area from 35,000 to 66,000 hectares, improve the reliability of water deliveries, and enable 35,000 farm households to increase crop yields • significantly. The project provides for control works on the Kosi River to stabilize its approach to the canal. It also includes provision for sediment control, flood protection, and ~estoration of secondary and tertiary canals. The $37.5 million project supports the Government's objective of increasing agricultural production. At full development, foodgrain produc- tion wi 11 increase by 35,600 tons a year. In addition, 10,000 farm jobs will be created as well as 5,000 - 7,000 non-farm jobs. Per capita income in the project area is expected to rise substantially from $60 to $110, or close to the national average. The $30 million IDA credit to Nepal is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs . • NOTE: Money figures are expressed in U.S. dollar equivalents FORM NO. 1121 (5-76) T E CHN I CAL D A T A PROJECT: Sunsari-Morang Irrigation and Drainage Development Stqge l • COUNTRY: Nepal TOTAL COST: $3 7. 5 mi 11 ion IDA FINANCING: $30 mill ion credit, standard IDA terms OTHER FINANCING: Government of Nepal, $7.2 million; farmer contributions, $0.3 million. IMPLEMENii.NG ORGANIZATION: The Sunsari-Morang Irrigation and Drainage Development Board c/o Secretary to His Majesty's Government Ministry of Finance Kathmandu, Nepal CABLE: ARTHA, Kathmandu PROJECT DESCRIPTION: The project includes river control and flood protection works in the Kosi River in the vicinity of the Chatra Main Canal (CMC) intake; sediment control arrangements at the CMC intake and along the CMC; restoration and improvement of the canal system and provision of about 180 new structures through 66,000 h--- planning and design of complete minor distribution canals and drains extending to outlets serving 10 ha groups of farms throughout an area of about 18,000 ha and, within this area,con- struction of works serving 6,400 ha; drainage improvements covering 12,000-15,000 ha; pilot schemes for groundwater exploitation, improved irrigation management and micro-hydroelectric plants; strengthening agricultural extension, research and training activities throughout the Sunsari and Morang districts; equipment, vehicles and buildings for project operation; technical assistance and feasibility studies. PROCUREMENT: Procurement of equipment, vehicles and spare parts will be by international competitive bidding (ICB) following IDA guidelines, except for items costing less than $50,000 which will be procured according to government procurement procedures that are satis- factory,up to $500~000 in the aggregate. Civil works for river control works will require special expertise and resources and will be procured through ICB. A 7-1/2% margin of preference wi 11 be given to eligible local civil works contractors. Restoration of canal structures and some drainage improvements will be scattered in relatively small works which will be carried out by force account (60%), up to a maximum cost of $5 mill ion, and the balance (40%) ~hrough local contractors following competitive bidding. Sediment control work~ in the CMC and new canal structures, most drainage improvements and field canals will be suitable for local competitive bidding. A 15% preference or the applicable duty, whichever is less, will be granted to local manufacturers. CONSULTANTS: One hundred thirty man-months of consulting services will provide: inservice training, advice and guidance to project staff in project planning, preparation of bidding documents and bid evaluation, modern construction techniques, construction quality, progress, and cost control. These consultants will also advise government staff during the preparation of feasibility studies for further development of the project area. • ECONOMIC RATE OF RETURN: 17% ESTIMATED COMPLETION DATE: 1983 - 0 -