Announcement of Twenty Three Million Dollars for an Irrigation Project in India on June 6, 1977

•World Bank 18l8 H Street; N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE N0:77/65 JIJNE 6, 1q77 $23 MILLION FOR AN lRRl~ATION PROJECT IN INnlA ------------- --------------------------------- The International Devel~pment Association (IDA}, an affiliate of the World Bank, is extending a credit of $23 million to help finance re- habilitation, modernization and extension of an irrigation system In India's Tamil Nadu State. The $46 million project is designed to minimize water losses in • conveyance and operation of the Periyar Vaigai Irrigation System in Tamil Nadu. Water savings will be used to introduce double irrigation and to bring new areas, presently rainfed, under irrigation for the first time. At full development, the project is expected to increase annual rice production by about 60,000 tons resulting in $13 million in value added to the local economy and in net foreign exchange savings of $9.6 million a year. The project wil 1 also generate about 20,000 man-years of agricultural employment. The Food and Agriculture Organization of the United Nations (FAO) joined the Government of Tamil Nadu in preparing the project under the World Bank/FAO Cooperative Program. The IDA credit to India is for a term of 50 years, including l0 years of grace. It is interest free, except for a service charge of 3/4 • of 1% to meet IDA's administrative costs. The proceeds of the credit wi 11 be channeled to the Government of Tamil Nadu in accordance with the Government of India's standard terms for the financing of State development projects. -0- FORM NO. 1121 (5-76) · T EC HN I CA L DAT~ PROJECT: COUNTRY: TOTAL COST: Periyar Valgai India $45. 6 mi 11T on I rrlgation • IDA FINANCING: $23 mi 11 Jon. Standard I DA terms OTHER FINANCING: Government of Tami 1 Nadu IMPLEMENT,NG ORGANIZATION: Public Works Department Government of Tami 1 Nadu Fort St. George Madras--600009 India PROJECT DESCRIPTION: The project consists of 1 ining of al 1 J rdgation canals down to the 10 hectare outlets and construcHon of a 32 kilometer "link" canal to convey the river waters from a new dJvers·fon weir just do,m stream of the Vaiqai Dam to the Peranai regulator. The project is designed to minimize water losses in con- • veyance and operation by rehab i 1 i tat I on and modern i zat Jon of the ex Jsting Peri ya r Va i qa i Irrigation system. PROCU.REMENT: Civil works on the link canal ($4.8 million hase cost) will be procured through international Competitive bidding (ICB). The remaining civil works wi 11 be contracted locally. t\bout $2~0,000 worth of vehicles and equipment wil 1 also be subject to ICB. CONSULTANTS: 4 man-months of consultancy services (hydrology) will be utilized ECO'NOMIC RATE OF RE-TURN: 17 to 23% . EST I MATED COMP LET I ON DATE: 1983 depending on the use of water saved • •• - 0 -