Announcement of IDA Assists Irrigation Project in India on December 11 , 1980

. ' FOR . IMMEDIATE R~LEASE . _ World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/23 December 11 , 1980 IDA ASSISTS IRRIGATION PROJECT IN INOIA The International Development Association (IDA), an affiliate " of the World Bank, today announced the approval of a credit of SDR 63.3 mill ion ($83 million) to help finance an irrigation project in India's Orissa State. The $110.3 million project will help ensure continued availa- bility of irrigation water in a 167,000 hectare command area now served by two weirs which are 110 years old and need to be replaced. The project will safeguard farm income and employment. The project includes the development of a drainage masterplan for the entire Mahanadi Delta and a program of water management. • The IDA credit to India is for 50 years, including iO years of grace. It is interest free, except for a service charge of 3/4 of 1% to meet IDA 1 s administrative costs. • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit re- flects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T ECHNI CAL D A T A PROJECT: COUNTRY: TOTAL COST: Mahanadi Barrages India $110.3 mill ion • IDA FINANCING: SOR 63.3 mill ion ($83 mill ion), standard IDA terms OTHER FINANCING: Government of Orissa IMPLEMENTING ORGANIZATION: Irrigation and Power Department, Government of Orissa, Bhubaneshwa r, 0 r i ssa, India PROJECT DESCRIPTION: The project comprises: the construction of two barrages across the Mahanadi and Birupa rivers; the replacement of head regulators for the three irrigation canals taking off from the barrages; the development of a drainage Master Plan for the entire Mahanadi delta; and a program • of ~ater management pilot operations. PROCUREMENT: Contracts for civil and mechanical engineering works amounting to $58 million will be awarded on the basis of of International Competitive Bidding (ICB). Local contractors participating in the bidding for civil works will be entitled, for bid evaluation, to a 7.5% pre- ference. For gate manufacture and erection, a preference limited to 15% or the prevailing customs duty if lower wil 1 be given to local manufacturers. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 21% 1987 - 0 - •