Announcement of IDA Provides Eighty-Five Million Dollars for an Irrigation Project in India on May 25, 1978

FOR IMMEDIATE RELEASE·. . ' ' .World Bank ·1s18 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/74 MAY 25, 1978 IDA PROVIDES $85 MILLION FOR AN IRRIGATION PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, is extending a credit of $85 million for an irrigation project in India's Gujarat state. The purpose of the $170.5 mill ion project is to use for irriga- tion the numerous small rivers throughout the state where major irrigation projects or groundwater development are not feasible. At fu11 development, the project is expected to help increase annual production of foodgrains by 113,000 tons; oilseeds by 25,000 tons; and cotton by 27,000 tons. The increased production wi11 help India save about $52 million in foreign • exchange each year. The project wi11 also substantially increase net farm incomes and generate employment opportunities. The IDA credit to India is for 50 years, including 10 years of grace. It wi 11 be interest free, but carry a service charge of 3/4 of 1% per annum to cover IDA's administrative costs. - 0 - NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E CHN I CA L D A T A • PROJECT: Gujarat Irrigation COUNTRY: India TOTAL COST: $170.5 million IDA FINANCING: $85 million credit on standard IDA terms OTHER FINANCING: Government of Gujarat IMPLEMENTING ORGANIZATION: Irrigation Projects Branch Secretary Public Works Department Government of Gujarat Sachivalaya Gandhinagar Gujarat 382010 India. Cable: WORKSEC Gandhinagar PROJECT DESCRIPTION: The project includes (a) construction, over a five-year period, of medium irrigation projects, covering about 63,000 ha. in Gujarat; (b) modernization of existin~ medium irriqation projects covering about 55,000 ha; (c) establishment of a network of automatic discharge measuring stations; and (d) monitoring and evaluation studies. • PROCUREMENT: Civil works will be labor-intensive, relatively small and scattered throughout the state, and restricted to seasonal construction. It is not feasible to combine these into contracts large enough to attract international contractors. Civil works will be carried out by local contractors or, in certain circumstances, by force account. Equipment and vehicles, valued at a total of $292,000, will be procured through normal procure- ment procedures of the Government of Gujarat. • ECONOMIC RATE OF RETURN: 20% ESTIMATED COMPLETION DATE: 1984. - 0 -