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World Bank Document DIcument of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 4615-BD Public Disclosure Authorized STAFF APPRAISAL REPORT BANGLADE SH BWDB SMALL SCHEMES PROJECT Public Disclosure Authorized April 10, 1984 South Asia Projects Department Public Disclosure Authorized Irrigation I Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS US$ 1 Taka 25.0 Taka 1= US$ 0.04 WEICHTS AND MEASURES English/US Units Metric lJnits 1 foot (ft) = 30.5 centimeters (cm) 1 yard (yd) = 0,915 meters (m) 1 mile (mi) = 1.609 k-ilometers (km) 1 acre (ac) = 0.405 hectare (ha) 1 square mile (sq mi) 259 hectares (ha) 1 pound 0.454 kilograms (kg) 1 long ton (ig ton) = 1,016 kilograms (1.016 tons) ABBREVIATIONS AND ACRONYMS USED BADC - Bangladesh Agricultural Development Corporation BRDB - Bangladesh Rural Development Board BWDB - Bangladesh Water Development Board CE - Chief Engineer DAE - Directorate of Agriculture Extension DEM - Directorate of Extension and Management DOF - Department of Fisheries EE - Executive Engineer FFW - Food for Work Program GDP - Gross Domestic Product GNP - Gross National Product COB - Government of Bangladesh PYV - High Yielding Variety ICB - International Competitive Bidding MTh - Irrigation Management Program IRR - Internal Rate of Return IWDFC - Irrigation, Water Development and Flood Control Division of Ministry of Agriculture KSS - Krishi Samabaya Samiti (Village Agricultural Society) LCB - Local Competitive Bidding MOA - Ministry of Agriculture O and M - Operation and Maintenance PSA - Project Special Account PPS III - Project Planning Schemes III Directorate SDR - Special Drawing Right SE - Superinterding Engineer TCCA - Thana Central Cooperative Association -i- FOR OFFICIAL USE ONLY GLOSSARY Aman - Rice planted before or during the monsoon and harvested ix:November - December Aus - Rice planted during February or March and harvested during June or July B. - When preceding a crop means broadcast Beel - Saucer-shaped area subject to flooding by rain or river water Boro - Rice transplantedin December to January and harvested in April to May District - Administrativeunit in the charge of a Deputy Commissioner comprising a number of subdivisions Khal - Natural channel 'harif - Summer season (May through October) Monsoon - Period of rains starting in June and ending in October Paddy - Unhusked rice Parishad - Board constituted for specific assignmente comprising elected and Goverinment nominated members Rabi - Winter season (October through May) Subdivision - Administrativeunit comprising several thanas T. - When preceding a crop means transplanted Thana - Smallest administrativeunit, formerly called a Police Station Upazila - Upgraded thana as defined by Local Government (Thana Parishad and Thana Administration)Ordinance 1982 Union - Unit of self-governmentat village level; there are about ten unions in a thana FISCAL YEAR (FY) July 1 - June 30 This documenthas a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. -ii- BANGLADESH BWDB SMALL SCHEMES PROJECT Table of Contents Page No. I. SECTORIAL BACKGROUND *..... *... P 99949 ...................4 1 Agricultural Performance and Policies ...................... 1 Agricultural Sector Programs 6nd Institutior,al Arrangements . 3 Physical Features ...... .*.* .*.**. ...e.**. *. **. 3 Water Subsector Development 44.......................... Prc&rams to Strengthen t'le Bangladesh Water DeveJopeint Board. 6 Operation and Maintenance of BWDB Schemes 7 Cost Recovery 8. II. TOE cROJECT............... ........... *.. * **94, 8 Location ......................... 8 biect Ives .....§8 Project Description .............. - -..... *. *. ..... 9 Criteria for Selection of Subprojects ....................... 10 Project Components 11 Subproject Civil Works .* * .. 9 . 16 III. PROJECT IMPLEMENTATION AND OPERATION AND MAINTENANCE 17 Institutional Arrangements 0 17 Coordination at the National Level ........ 18 Coordination at the Field Level 18 Procedures for Subproject Implementation 19 Operation and Maintenance of Subprojects 20 Implementation Schedule **.. ... * *** **** 9 99* 21 Monitoringand Evaluation 9*99 *9* 99999.9,.9999994.994.......999 21 IV. PROJECT COSTS, FINANCING, AND DISBURSEMENT *o*eee............ 22 Project Costs *. 9 .999949999999949-9 * 22 Financing .... *........ * ..... 999999499994.*9 94994 *.*** 23 Procurement *94*9499 .* . 24 Disbursement 26 Project Special Account 27 Accounts and Audit .... ........... 28 -liii- Page No. V. PRODUCTION, MARKETING AND PRICES, FARM INCOME, COST RECOVERY. 29 Production ......... 29 Marketing and Prices ................ ... *.. 30 VI. BENEFITS AND JUSTIFICATION . .. ...... .................... 33 Production and Employment ... *. 33 Economic Analysis ................. * 34 Sensitivityand Risks ......................-.... .. *...t 35 VII. AGREEMENTS REACHED AND RECOMMENDATION ....................... 36 List of Annexes 2.1 Climatic Elements Table 1 - Mymensingh Table 2 - Khulna Table 3 - Barisal Table 4 - Jessore 2.2 Guidelines for Selection of Subprojects 2.3 Scope of Consultancy Services for Subprojects 4.1 Detailed Cost Tables Table 1 - Kangsha River Flood Control and Drainage Improvement Table 2 - Kalaroa Drainage Table 3 - Bighai River Flood Control Table 4 - Chenchuri Irrig,ation Table 5 Strengthening BWDB Table 5a - Strengthening BWDB - Pilot 0 and M Program Table 6 - Unappraised Flood Control and Drainage Subprojects Table 7 - Unappraised Drainage Subprojects Table 8 - Unappraised Flood Control Subprojects Table 9 - Unappraised Irrigation Subprojects Table 10 - Summary Account by Project Component 4.2 Procurement Schedules Tabl.e 1 - Civil Works Table 2 - Equipment -iv- 4.3 Table 1 - Summary Account by Time Table 2 - Proposed Credit Allocation Table 3 - Estimated Schedule of Disbursements 5.1 Cropping Patterns of Appraised Subprojects 5.2 Farm Budgets Table 1 - Flood Control and Drainage Subprojects, Present and Future With Project Table 2 - Flood Control and Drainage Subprojects, Present and Future Without Project Table 3 - Irrigation Subprojects, Present and Future With Project Table 4 - Irrigation Subprojects, Present and Future Without Project 6.1 Economic Prices Table 1 - Paddy Table 2 - Wheat Table 3 - Jute Table 4 - Oilseeds Table 5 - Fertilizers 6.2 Economic Benefits and Costs CfARTS 25485 - Bighai. Area Elevation curve as compared to Stages of the Bishkali River at Bamna Station 25486 - Kalaroa. Area Elevation Distribution as compared to stages of the Betna River at Kalaroa Station 25487 - Kangsha. Area Elevation Distribution as compared to River Kangsha stages 25489 - BWDB Organization Chart 25490 - BWDB Organization Chart for Planning and Implementation of SubprGJects 25828 - Organization - Pilot Decentralized 0 and M Program 25587 - Implementation Schedule MaPs 17471 - Kangsha River Flood Control and Drainage Project - Layout of Works 17472 - Kalaroa Drainage Project - Layout of Works 17473 - Bighai Flood Control Project - Layout of Works 17474 - Chenchuri Beel Irrigation Project - Layout of Works 17477 - Location Map of Subprojects BANGLADESH BWDB SMALL SCHEMES PROJECT STAFF APPRAISAL REPORT I. SECTORIAL BACKGROUND Background 1.01 The Government of Bangladesh (GOB) in its Second Five-Year Plan (FY81-85) gives highest priority to the objective of achieving foodgrain self-sufficiency. In the water subsector, the strategy for assisting GOB in reaching this objective is to emphasize short gestating, low capital cost per acre, high rate of return projects. This strategy was earlier identified in the Bank report: The Land and Water Sector Study - Bangladesh (Report No. PS- 13, December 1, 1972) and reconfirmeed in the Joint Document of GOB and the World Bank - Review of the Bangladesh Water Development Board (Report No. 2327-BD, April 2, 1979). Minor irrigation schemes in areas of little or no flooding and drainage and flood control schemes in areas of moderate flooding were to be emphasized. 1.02 In October 1982, GOB signed a contract with PRC Engineering Consultants International to prepare feasibility reports on selected sub- projects reflecting the above strategy. Funding was provided under the Fourth Technical Assistance Project (Cr. 1124-BD). GOB invited IDA to appraise a project based on four complered subproject feasibility reports (i.e., Kangsha River Flood Control and Drainage, Kalaroa Drainage; Bighai River Flood Control, and North Chenchuri Beel Irrigation, April 1983). This report is based upon the findings of an IDA appraisal mission, comprising Messrs. W. Fairchild, C.P. Cheng, P. Streng and J. Srivastava, that visited Bangladesh in June 1983. This project is accorded higb priority in GOB's Annual Development Program (ADP). Agricaltural Performance and Policies 1.03 Agriculture dominates Bangladesh's economy, providing about 57% of GDP, 75% of employment and more than 80% of exports. Out of a total land area of 35 M ac, about 22.5 M ac are under cultivation at an average cropping intensity of'140%. Rice is the leading crop with about 80% of cropped area; Jute and wheat account for about 5% each, and the balance is made up of a variety of other crops, such as pulses, oilseeds, tobacco, fruits, vegetables, and sugarcane. -2- 1.04 Foodgrain production,mainly rice ard wheat, increased during
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