Announcement of Forty-Five Million Dollars for an Irrigation Project in India on February 13, 1975

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET.NW. WASH I NG TON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA News Release No. 75/3 February 13, 1975 $45 MILLION FOR AN IRRIGATION PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, has approved a credit of $45 million to help complete the construction of a bar~age across the Godavari River in Andhra Pradesh, India. The purpose of the project is to ensure continued availability of perennial irrigation water in the 400,000 hectare connnand area of a 120 year old weir, which is in danger of collapsing. l?ai.lure of the old weir would have a severe impact on the economy of the area--the net value • of crop production would be reduced from the current $112.5 milHon a year to about $12.5 million a year, the average annual farm income in the area would decline from $940 to about $250, and the annual rice production would go down from the present 1.4 million tons to about 100,000 tons. The project being assisted by the IDA credit will avert the danger and safeguard agricultural production, incomes for the 160,000 farmers in the area and employment for the area's agricultural labor force. The project is scheduled for completion in 1979 at a total estimated cost of $70 million, including the foreign exchange cost of $:.o million. The IDA credit will meet about 64% of the cost of the project. The Public Works Department of the Government of Andhra Pradesh will be responsible for the execution of the project. The IDA credit to the Government of Ind;i.a is for a term of 50 years, including a 10-year grace period. It is interest free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. 1 • The Food a.nd Agriculture Organization of the United Nations (FAO) joined IDA in identifying and preparing the project under the Bank/FAO Cooperative Program. Note: Money figures are expressed in US dollar equivalents ..  T E CHNI CAL DAT A PROJECT: COUNTRY: Godavari Barrage Project India • TOTAL COST: $69. 9 million IDA FINANCING: $45 million for 50 years including a 10-year grace period. Interest free except for a service charge 0£ 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: Government of Andhra Pradesh IMPLEMENTING ORGANIZATION: Public Works Department,_Government of Andhra Pradesh, Hyderabad, INDIA. PROJECT DESCRIPTION: The project consists of the completion of a new barrage, which will replace the old weir at Dowlaishwaram. The barrage has four sections, totalling 3600 m.in length, across the four branches of the river. It is divided into 175 bays, each equipped with a spillway gate, and will raise the pond level to 13. 6,~ m. The project • includes preparatory studies for a second phase project, which will concentrate - on command area development, and technical assistance. PROCUREMENT: Contracts for civil works (about US$24 million) and· for gate manufacture and installation (US$12 million) will be let on the basis of international competitive bidding. Local contractors, bidding for civil works, will be entitled to a preference of 7.5%. For the manufacture and erection of the gates, the usual preference of 15% or the prevailing customs duty, if lower, will be applied to bid evaluation. All preferences will be explained in the tender documents. PWD will procure locally small numbers of vehicles and equipment for project preparation and implementation (totalling up to about US $0.6 million), unsuited for international tendering. Building materials for civil works (cement, steel, shee.tpiling) will be procured by PWD and made available to contractors at fixed prices. ESTIMATED COMPLETION DATE: June 1979 •