Announcement of Sri Lanka to Receive IDA Credit for Rehabilitation of Village Irrigation on June 18, 1981

. . FOR.IMMEDIATE RELEASE · eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA PRESS RELEASE NO. 81/100 June 18, 1981 SR! LANKA TO RECE!VE !DA CRED!T FQR REHA8!L!TAT!ON OF VILLAGE IRRIGATION The International Development Association (IDA) has approved a credit of SDR 24.5 million ($30 million) to Sri Lanka for a project to rehabilitate village irrigation systems in fourteen districts of the country. IDA is the World Bank's affiliate for concessionary lending. The $43.6 mill ion project is designed to improve existing, but under-utilized village irrigation schemes, strengthen the government institutions involved in village irriga- tion, and initiate a comprehensive water management program. Most existing minor irriga- tion schemes in Sri Lanka are based on storage tanks designed to supplement monsoon rains, and many have deteriorated through lack of maintenance and repair. The IDA credit will help finance the rehabilitation of sane 1,200 village irrigation schemes by the Department of Irrigation, including repairs to and remodelling of tank bunds, an i cu ts (diversion schemes), s 1u ices, sp i 11 ways, water conveyance and d i s t r i bu t i on systems , and the p r ov i s i on of a ppr op r i ate f i e 1d st r uct u res • Labor - i ntens i ve • methods and farm labor will be used wherever possible. The project also includes the modernization of about 500 working irrigation schemes near rehabilitated tanks. This modernization will facilitate the introduction of water management programs and include minor repairs to headworks, provision of sluices, main supply channels, secondary delivery channels, and structures. The Department of Agrarian Services will be strengthened in the operation and maintenance of minor irrigation schemes, and in the initiation of water management programs. Additional st2ff, office space, survey and construction equipment, and trans- port vehicles will be provided. The department's existing training programs in basic technical skills at the University of Moratuwa and the Hardy Institute in Prnparai, will be supported, as wi 11 new water management training programs to be provided by the Department of Agriculture at the Maha llluppallama Research Institute. Studies on hydrology, soils, land use, and the socio-econanic impact of the project wil 1 also be carried out. The incomes of some 25,000 farm f am i 1 i es wi 11 increase by 30-45% ·as a resu 1t of the rehab i 1 i tat ion works and water management programs, and farmers wi 11 have greater protection fran the risks of bad weather. The IDA credit is for 50 years, including 10 years of grace, and is interest- free , except for a s er v i c e ch a r ge of 3/ 4 of 1% per annum to cover I DA I s a dm i n i st r a t i ve .costs. The credit will be committed when funds are available. NOTE: IDA credits are denaninated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The t:~:-. dollar equivalent of the SDR amount of the IDA credit reflects the exchang~ rate existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T ECHNI CAL DAT A PROJECT: COUNTRY: TOTAL COST: Village Irrigation Rehabilitation Sri Lanka $43.6 million • I DA FINANCING: SDR 24.5 mil 1 ion ($30 mil 1 ion) standard IDA terms OTHER FINANCING: Government of Sri Lanka, $13.6 mil 1 ion IMPLEMENTING ORGANIZATION: Project Steering Committee Ministry of Lands and Land Development 500 T.B. Jayah Mawatah, P.O. Box 512 Colombo 10, Sri Lanka PROJECT DESCRIPTION: The project wil 1 increase agricultural production and farmer incanes in existing, underutilized irrigation schemes through: ( i) rehabi1 itation of about 1,200 village tanks and anicuts (diversion schemes); ( i i) modernization of about 500 such schemes; ( i i i) strengthening of major government institutions involved in village irrigation; (iv) initiating a systematic water manage. program; and (v) estab1 ishing evaluation programs designed to assist project implementa and preparation of further vi11age irrigation schemes. PROCUREMENT: Equipment and vehicles with an estimated cost of $2.5 mill ion will be procured through international competitive bidding in accordance with World Bank/I DA guidelines. A preference margin of 15% of the c. i.f. price of imported goods will be extended to local manufacturers in the evaluation of bids. Items costing less than $20,000 wil 1 be procured through prudent shopping after price quotations fran at least three suppliers. C1vi 1 works wi 11 be Jocal ly contracted. CONSULTANTS: A total of 36 man-months of consultant services wi l 1 be required in the field of water management. ECONOMIC RATE OF RETURN: EST I MATED COMP LET'.-,~ DATE: 20% 1986 - 0 - •