Announcement of World Bank Approves Thirty Million Dollars for Watershed Development Project in India on July 24, 1980

. . · FOR ' IMMEDIATE . RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/10 July 24, 1980 WORLD BANK APPROVES $30 MILLION FOR WATERSHED DEVELOPMENT PROJECT IN INDIA The World Bank has approved a loan of $30 mill ion for a watershed development project in India. It will be the country's first integrated attempt to tackle the problem of soil erosion as well as economic development in the Himalayan sub-mountainous zone in the State of Punjab. The $60.8 mill ion Kandi Watershed and Area Development Project will be implemented in five watersheds in the State of Punjab, the largest of which is Dholbaha. Rehdbilitation work will be carried out in the upper catchments to control runoff and erosion from the hills. At the same time, flood control and irrigation works wi 11 be done in the lower catchments of Dholbaha and four other watersheds . • Provisions have also been made to protect farm lands from floods thrGugh levelling and gully reclamation. Some of the existing wasteland will be reclaimed and horticulture, livestock, poultry, and fisheries development will be introduced to the areas. In order to build up the technical expertise required for develop- ment of watersheds, internationally recruited consultants will train the staff of the Punjab Directorate of Water Resources, and conduct research and studies. The consultants are a1so expected to help prepare additional watershed schemes for implementation by Punjab. The World Bank loan is for 20 years, including 5 years of grace,with 8.25% interest per annum. The Government of India and the Government of Punjab will contribute $30.8 million of the total cost cf the project. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Kandi Watershed and Area Development India $60.8 mi 11 ion • BANK F INANC I NG : $30 mi 11 ion for 20 years, including 5 years of grace, with interest rate at 8.25% per annum OTHER FINANCING: The Government of India and the Government of Punjab will contribute $30.8 million IMPLEMENTING ORGANIZATION: Secretary of Agriculture and Forests Government of Punjab Chandigarh Punjab, India PROJECT DESCRIPTION It includes: (a) rehabilitation of the upper catchments to control runoff and erosion from the hills. This wi11 entail revegetation or planting of trees and grass on about 24,000 hectares in the five watersheds; (b) flood control and irrigation works; (c) development of farmland to pro- tect them from floods through land levelling and gully reclamation, irrigation, horti- culture, livestock, poultry, and fisheries development; and (d) technical assistance • to strengthen the capacity of the Directorate of Water Resources to plan and implement similar watershed development schemes. PROCUREMENT: Civil works for the Dholbaha dam, flood protection, and irrigation works, will be let on the basis of local competitive bidding. CONSULTANTS: Consultant services totaling about 79 man-months have been obtained by the Government of Punjab. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 16% 1985 - 0 - •