Announcement of Five Million Dollars Credit for Irrigation in Afghanistan on May 27, 1971

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N,W., V'.'A:3H:i-lGION D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 71/22 Subject: $5.0 million credit for May 27, 1971 irrigation in Afghanistan The existing irrigation system in the Khanab& · valley in northeasteni Afghanistan will be modernized with the help of a credit of $5.0 million from the International Development Association (IDA), an affiliate of the World Bank. The Khanabad valley of the Kunduz province is one of the more fertile areas in Afghanistan. The present irrigation system consists of loose stone structures to divert water from the river into irrigated canals with brush- • wood drops and checks controlling the flow through the canals to farm turn- outs o These frequently wash away during floods and do not allow controlled application of water and efficient use of new varieties of seeds and fertilizer. The IDA credit will help to finance the construction of permanent structures including a diversion weir on the Khanabad riverr, a main canal and link canals with water control structures, cross drainage, bridges and culverts. It will also include provision of consultants' services for design and supervision of civil works, agricultural extension and the pre- paration of studies to be used as a basis for subsequent development. The project will provide improved water control, prevent flooding the valley during peak flow seasons and relieve water shortages during the dry seasons. The project was prepared with the assistance of the Food and Agriculture • Organization of the United Nations, the United Nations Development Progrannne and the World Banke /more  IDA P.R. No. 71/22 - Afghanistan - irrigation - 2 - The major benefits of this project, expected to be completed in about • 3-1/2 years, will be a substantial increase in crop production in the valley through both increased yields, and a significant increase in the area double- cropped~ The incomes of about 42,000 inhabitants representing about 6,000 families will be directly increased. At full development the direct annual benefit to the economy is estimated at about $1.. 7 million; about 80% of the benefits will be realized within five years of completion of construction. The total cost of the project is estimated at $6.0 million; the IDA credit will finance the entire foreign exchange costs and part of the local currency expenditures. The project will be implemented by the Ministry of Agriculture and Irrigation (Kabul, Afghanistan). The IDA credit to the Kingdom of Afghanistan will be for a term of 50 years, including a 10-year period of grace; it will be interest free. A service charge of 3/4 of 1% will be made to cover IDA's adminis~rative • costs. Today's credit brings the total of IDA assistance to Afghanistan's agricultural development to $10.0 million. The previous credi:t of $5.0 mil- lion made in June 1970, is financing a three-year lending program of the Agricultural Development Bank of Afghanistan, the main institutional source of agricultural credit in the country. - 0 - •