Announcement of India Receives One Hundred Twenty-Six Million Dollars for an Irrigation Project on April 6, 1978

FOR EDIATE RELEASE •world Bank ·t8'18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Te!2r:,hone: (202) 393-6360 IDA NEWS RELEASE NO. 78/56 April 6, 1978 INDIA RECE1VES $126 MILLION FOR AN IRRIGATION PROJECT The International Develqpment Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $126 mill ion to help finance construction of irrigation works and command area development in India's Karnataka State. The objective of the $284.4 mill ion project is to increase agricultural production, improve farm incomes, and to provide employment for small farmers and landless laborers, within the three major irrigation schemes -- the Upper Krishna, the Malaprabha and the Ghataprabha -- present- ly under construction in northeastern Karnataka .. The project includes the completion of construction of two dams and associated canals, land develop- • ment, village roads and the provision of agricultural suppcrting services . At full development in 2000, the project will help to 'increase. food production by 765,000 tons and other crops by 230,000 tons per year. The value of the increased production will be $211 mill ion a year. About 83,000 new full-time jobs for on-farm work would be created. In addition, about 60,000 non-farm employment opportunities would be generated. Net farm incomes on the average are expected to triple and reach an estimated $2,013 per year for the median four hectare farm. The IDA credit to India 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 C HN I CAL • D A T A PROJECT: Karnataka Irrigation COUNTRY: India TOTAL COST: $284.4 mill ion IDA FINANCING: $126 mi·l 1 ion credit, standard IDA terms OTHER FINANCING: The Government of Karnataka, the Agricultural Refinance and Development Corporation and participating banKs. IMPLEMENTING ORGANIZATION: Irrigation Department Government of Karnataka Bangalore, India PROJECT DESCRIPTION: The project includes the completion of construction of two darns (Almatti and Narayanpur) and 118 kilometers of canals; provision of irri- gation distribution and drainage system for 105,000 hectares and of field irriga- tion and drainage channels for about 136,000 hectares; rehabilitation and upgrading~ of 600 kilometers of village and link roads; on-farm works; agricultural support- ing services; and vehicles and equipment. PROCUREMENT: $63.8 mill ion worth of civil works will be procured under international competitive bidding (ICB). Local contractors would be entitled to a 7 1/2% preferer.ce, about $600,000 worth of vehicles would be procured through ICB. A preference 1 imited to 15% of the c. i .f. price of imported goods, or the prevailing customs duty if lower, would be extended to local manufacturers. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 16% 1983 • - 0 -