Announcement of IDA Assists an Irrigation Project in India on April 2, 1979

"FOR IMMEDIATE RELEASE eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 79/54 APRiL 2, 1979 IDA ASSISTS AN IRRIGATION PROJECT IN INDIA The International Development Association (IDA), an affiliate of the World Bank, today announced the approval of a credit of $129 million for a project to modernize che irrigation system in India's Punjab State. The project wi 11 help to increase food production and farm incomes . . The $258 million project will help Punjab implement a five-year program of irrigation development. It will help increase the quantity, reliability and equitable distribution of irrigation water and provides for • studies and pilot demonstration schemes for on-farm works. Part of the IDA credit will be utilized by India for the preparation of irrigation projects throughout the country. At full development, the project is expected to increase annual production of foodgrain by 489,000 tons, of cotton by 83,000 tons, and of sugar by 55,000 tons resulting in net foreign exchange savings of about $160 mi 11 ion a year. The project \\OU.1 d generate fa rm emp 1oyment for about 40:,000 people and non-farm employment for some additional 30,000 workers. Net farm income of 340,000 participating families is expected to increase by more than 25%. The IDA credit to India is for 50 years, including 10 years of grace. It is interest free, except for a service charge of 3/4 of 1% per annum to meet IDA's administrative costs. The Food and Agriculture Organiza- tion of the United Nations joined IDA and the Governmernt of India in preparing the project under the Bank/FAQ Cooperative Program . • NOTE: Money figures ~re expressed in U.S. dollar equivalents. FORM N0.1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Punjab Irrigation India $257.5 million • IDA FINANCING: $129 million credit, standard IDA terms OTHER FINANCING: Government of India, Government of Punjab; Agricultural Refinance and Development Corporation and participating banks. IMPLEMENTING ORGANIZATION: Financial Commissioner and Secretary for Irrigation and Power Government of Punjab Chandigarh Punjab, India PROJECT DESCRIPTION: The project was formulated with the following objectives: (a) to reduce seepage losses, improve operations and sim- plify maintenance in the existing irrigation systems; (b) to improve water deliveries to farms and minimize inequities in the distribution of water to farmers within the command of the watercourses; (c) to introduce advanced irrigation technologies on a pilot basis. to enable future developments on a project scale; and (d) to increase local capabilitie in planning, implementing, monitoring and evaluation. PROCUREMENT: Civil works valued at $3 million will be procured through international competitive bidding (ICB) according to Bank guidelines. For bid evaluation, a preference of 7.5% will be given to Indian contractors. About $1 .2.mill ion worth of vehicles and equipment will be procured through ICB. A preference limited to 15% of the c. i.f. price, or the prevailing customs duty if lower, will be given to local manufacturers in the evaluation of bid~. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 36% . 1985 - 0 - •